by Bob Chapman
With Ben Bernanke as our Shepard how can we go wrong? He tells us quantitative easing is not inflationary. He says that with assurance because he knows all the CPI statistics are as realistic as a Madoff Ponzi scheme. He also tells us he doesn’t create money out of thin air. He fails to mention that he does so digitally. His job is to further enrich the elitists who own the Fed and want to create a new world order. Prices are up 6-3/4% across the board as official inflation has only risen 1.2%.
Unfortunately, the public does not understand, but they will in time, because a great awakening is taking place. We have made more people understand what is going on in just the past five years, than we did in the previous 50 years. People know something is terribly wrong and their minds are open to the truth. That is something the elitists and their media do not understand.
Yes, there is gullibility among the public as to how finance and economics and monetary policy works, and there should be. Most university graduates don’t know how they work either, nor do they really know what psychological warfare and propaganda are all about. The average American doesn’t know what QE2 is nor have they heard of it. If they had they probably could not connect the Fed’s QE2 with the higher inflation they are currently experiencing. That is not their job that is my job and others like me. Even that in fact tends to be confusing because few analysts and economists agree on anything. Needless to say, much of what is happening is going to be devastating in time. Part of the problem is ignorance and part is denial. People do not want to admit they have been deceived, especially by the leadership of their own country. It is akin to lies and deception by a member of your own family or a long-time friend. Today the world changes very rapidly and so do people and governments. Most people do not or have ever studied history much less economic and monetary history. As you can see there is a major dilemma and there are no quick solutions in the discovery process. That is why education via talk radio and the Internet is a slow process.
Over the past six months MZM money supply has zoomed, up some $475 billion. That, of course, has been accompanied by QE2. Conservatively these two are a one-two money bomb that will explode within the US economy. Yes, it will lift the boats, but the inflationary fallout will be painful in lost purchasing power. It will tend to force up interest rates, an area that is difficult for the Fed to control. During this process the US government has to have major funding, as does European countries, especially in the first quarter. Interest rates will rise and corporate borrowing will be crowded out. That also means European buying of US bonds will slow to a trickle and the ECB, European governments and the Fed will be large buyers of multi-government bond. That means major monetization to go along with increasing MZM. Anyone who cannot envision double-digit inflation is missing the boat. Do governments really think that they can get away with their outrageous lies regarding real inflation? We don’t think so. It is and has been so transparently blatant that even Wall Street in part is questioning official CPI, PPI and employment numbers. What is also very discomforting is that employment will only improve marginally, because of the QE and stimulus 2/3’s os aimed at the financial sector. We hear Wall Street and banking tell us over and over again, give us what we want and need or we will take the financial system down. Well, we have news for them. Go right ahead and do that, because they and we know it’s coming down anyway sooner or later. If they do that deliberately it will be very obvious to all and they will pay a horrible permanent price. Hank Paulson may have gotten away with it once, but it won’t happen again. We know how these people think because we have spent more than 50 years among them. All they care about is money, power and world government. If you can understand that they are just common criminals then you know how to deal with them. Just look at the ongoing scandals one after another aided and abetted by the SEC and CFTC and the legions of lawsuits and fines that do not stop their criminal activities. They can neither admit nor deny, they pay a fine and the next day go out and do it again. Very few ever go to jail. Their biggest sin is getting caught in their criminal endeavors.
Most professionals do not understand what is underway and where this is all headed. They only see a positive affect on the stock market. They do not understand that this avalanche of liquidity will also give us 14% inflation this year, damage the dollar and strengthen gold as the only real money. The Fed has abandoned its legal responsibilities to maintain strong employment and to fight inflation. The Fed is in a panic mode struggling to save the financial sector, which is not what its main mission is. It is not supposed to be bailing out the players who caused the problems. They should not be rewarding the malefactors, some of whom own the Fed. This is nothing less than financial incest. Any tightening of monetary policy or strongly higher interest rates could bring the whole creaking edifice crashing down. That leaves the Fed only one course and they have taken that course already, create money and credit until they cannot anymore. This is where this is all headed.
Read more:
http://www.globalresearch.ca/index.php?context=va&aid=22642
No comments:
Post a Comment