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The NEXT Reserve Currency

International Commentary

The U.S. dollar is dying an ugly death. The U.S. government knows it, and the bankers who run the U.S. government are certainly aware of it – since they are the ones who have (already) undermined its value to worthlessness.

Naturally, the dollar’s ugly death is never mentioned in the Corporate media. Even with the manipulation choke-hold which this banking cabal has over our so-called “markets”; it would be extremely difficult to pump-up the value of the dollar to its present, absurdly fraudulent level if everyone knew that this was a dying currency – which will be obsolete (and thus officially worthless) in a few year’s time.

All this is carved in stone. What has (previously) been the subject of considerable debate and speculation is what currency will replace the U.S. dollar as the world’s “reserve currency”. The crooked bankers and corrupt governments of the Western bloc have already floated several trial-balloons, in their efforts to attempt to maintain control over the global economy by being in complete control of the principal money supply for the global economy.

Give me control of a nation’s money and I care not who makes the laws.”

-          Mayer Amschel Rothschild (1744 – 1812)

This mantra of financial criminals (in general), and crooked big-banks (in particular) is based on the simplest of premises. If one controls the printing press of a nation (or, in this case, the global economy); that criminal can print-and-steal as much currency as he/she desires – and then use all that dirty money to buy-off politicians, regulators, and entire governments.

Buying politicians is “good business” (assuming that one has no scruples) because these stooges-for-hire are notoriously cheap. Spend $100’s of thousands (or perhaps a few $millions) buying-off politicians, and it can yield countless $billions in (generally illegal) profits. Put another way; “investing” in governments (i.e. buying them off) pays much better than investing in markets.

The result of this obsession of the Old World Order with attempting to maintain control of the printing press for the global economy has been several pathetic attempts to cobble together some (corrupt) replacement paper for the USD. First we had “the Amero”.

The “Amero” (as the name implies) was to be launched in North America as the official currency for that (new) bloc, and (if the banksters had succeeded in their conspiring) would have coincided with the launch of a “North American Union”. However, despite having complete control over the Corporate media (and thus all mainstream “news”); the banking cabal’s puppet politicians couldn’t sell either the Amero or a North American Union.

The next attempted replacement for the USD was even more pathetic. The bankers and their Western governments attempted to take an ordinary credit instrument (the “special drawing rights” by which the International Monetary Fund extends credit), and convert that (somehow) into a currency.

This would have entirely eliminated the distinction between “money” and “debt”. But it was such outrageous monetary voodoo that even the One Bank’s puppet governments wouldn’t embrace the scheme. In part; this was due to the simple fact that there would have been no way to portray this instrument of financial fraud (and infinite debt) as “money” to the masses of Sheep in our societies.

Lesser, and even sillier schemes have been put forth by the bankers and their minions, but none of them ever achieved enough significance to merit mention. Meanwhile in the Rest of the World (i.e. its less-corrupt regimes) there has been a steady, inexorable move toward at least a quasi-legitimate replacement for the USD: China’s renminbi.

 

Paul Volcker: Ultimate Villain

US Commentary

Few historical figures of our recent era have been (falsely) lionized in a more egregious manner than the infamous Paul Volcker. According to the economic mythology written by our Revisionists (i.e. our “history”); Volcker almost single-handedly “rescued” the U.S. economy – and thus the entire Western bloc – with the ultra-extreme monetary policies for which he is credited as the architect at the end of the 1970’s.

During 1979 and 1980 the FOMC [Federal Open Market Committee], under Volcker’s leadership, sought to reign in [sic] double-digit inflation by setting strict money supply growth targets…The result of the switch in policy was a substantial rise in interest rates, with the prime rate peaking at 21.5 percent in December 1980.

The reality was that Paul Volcker was a monetary berserker. The task assigned to him by his Masters (the Old World Order) was not to “save” our economies – but to destroy them. In a recent commentary; Darryl Schoon identifies what Paul Volcker really represented:

In August 1971, at the urging of Paul Volcker, then Under-Secretary of the Treasury, President Nixon ended the convertibility of the dollar to gold; and for the first time in history gold was no longer money...

Paul Volcker took full responsibility for triggering capitalism’s end game. In a 2013 interview, Volcker explained his role in that consequential act with more than a modicum of pride: “I certainly was a major proponent of suspending gold convertibility, in fact the principal planner.” [emphasis mine]

As all sophisticated readers understand; it was the assassination of the gold standard (by Nixon/Volcker) which instigated the runaway inflation of the 1970’s – as all of our currencies were no longer “backed” (i.e. anchored) by any hard asset. Thus even if one actually believed the mythological account of Volcker’s exploits as written by the Revisionists; the best that could be said of this bankers’ stooge was that he was trying to fix a problem which he created.

Of course (as previously noted) “fixing” anything was absolutely the last thing on the mind of Volcker (and his Masters). They were purely obsessed with destroying. Proof of this requires nothing more than the ability to operate a calculator. What was the consequence of the draconian “21.5% interest rate” which Volcker inflicted upon the West – and the entire global economy?

What is the principal consequence of any/every increase in any interest rate? Higher interest payments. Specifically; the sadistic interest rates inflicted upon us by Volcker (and his Masters) roughly quadrupled the interest payments for everyone/everything, and with respect to all debts. Who are the obvious (and only) beneficiaries when interest payments on all debts are quadrupled? The bankers: Volcker’s Masters.

The mythology of the Revisionists that Volcker’s scripted sadism somehow “helped” our economies (and thus indirectly helped all of us) isn’t simply absurd, it’s mathematically/economically impossible. Again, proof requires nothing more than the capacity to operate a calculator (and some minimal familiarity with the economic context of those years).

At the time of Volcker’s savage attack on our economies; our governments had already descended into the era of permanent deficits. Thus, obviously, every penny by which interest payments were increased was directly and permanently added to our national debts. With many citizens already struggling to “make ends meet” (because of Volcker’s inflation) even before Volcker’s monetary attack; for many of them these higher interest payments also buried them in debt.

Simply, Paul Volcker is the Father of Debt Slavery. He (more than any other single individual alive today) is personally responsible for enslaving our governments (and our populations) in debt – and thus enslaving them to the holders of (the vast majority of) those debts: the bankers, more specifically, the One Bank.

 

Ukraine Declares War on Russia

International Commentary

The (Western) march towards World War III continues. The series of events is crystal-clear to any who have viewed them with an untainted mind.

First the corrupt Western bloc – and principally the United States -- engineered a (bloody) coup to overthrow the former, pro-Russia government in Ukraine. It was an unnecessary coup, from the standpoint of the Ukrainian people, as free elections had already been scheduled within the following year. However it was a necessary coup from the standpoint of the fascist West, as the brutal Thugs they installed on the throne of Ukraine could never have mustered enough popular support to win a free election.

From the moment this pro-West Thug government (illegally) seized power, its mandate (dictated by its Western ‘sponsors’) has been simple: crush all dissent. Despite having seized power themselves at the end of a gun barrel; the very first decree made by the Thug government was that everyone who did not support this illegal government had to immediately surrender all weapons (“do as I say, not as I do”).

Naturally, the last thing which those opposed to an illegal government which had seized power in a bloody coup would do is to disarm themselves. One does not surrender their weapons to their political opponents – when those opponents already have a track-record of killing anyone who opposes them. Thus, there can be no doubt as to who created the civil war which now rages inside Ukraine: the (illegal) pro-West government in Kiev.

Sadly, not one word of these events has ever filtered through the propaganda echo-chamber which Western governments call a “free press”. The tiny handful of multi-national corporations who control all of our media have been given their own orders: simply “blame Russia” for everything.

The most despicable “false-flag” operation carried out by the Thug government of Kiev (and its Western backers) to endeavour to demonize Russia was the widely-reported (and sensationalized) downing of Malaysian flight MH17. The Malaysian media (tightly controlled by the Malaysian government), and specifically the New Strait Times has bluntly accused the pro-West Ukraine government of shooting down its airliner – and ensuring that every passenger on board was murdered:

Intelligence analysts in the United States had already concluded that Malaysia flight MH17 was shot down by an air-to-air missile, and that the Ukrainian government had something to do with it.

This corroborates an emerging theory postulated by local investigators that the Boeing 777-200 was crippled by an air-to-air missile and finished off with cannon fire from a fighter that had been shadowing it as it plummeted to Earth. [emphasis mine]

Again, not one word of the truth of this vicious false-flag operation has ever filtered through the (Western) Corporate media. Now the Ukraine government has escalated the armed conflict it created still further: formally declaring war on Russia, as reported both outside and inside the West.

As far back as two months ago; we have this headline out of the (obviously biased) Voice of Russia:

Kiev Declares War On Russia?

Far more damning, however, is what is being asserted today in Western media. As reported by the Associated Press, and parroted word-for-word in thousands of Western media tentacles; the pro-West government in Kiev has now formally declared war on Russia:

   

Comex Gold Warehouses Filling Up…With Paper

Gold Commentary

Willing or unwilling; we all now dwell in the fantasy-realm previously dubbed “the Wonderland Matrix”. For the small minority who still retain mental awareness; this all-encompassing illusion of propaganda is like a thick fog which blankets reality. However, for the legions of brainwashed drones in our societies, the Wonderland Matrix is reality.

Nowhere is this blanket of fog thicker than in the precious metals sector. Here perversity is a way of life, as the genesis of the Wonderland Matrix began with the fantasy-world constructed here by the propaganda of the Corporate media.

As must inevitably occur with such serial perversion (i.e. consistently reporting the precise opposite of reality), these perverse lies soon begin to contradict each other. We see a glaring example of this by simply viewing the Corporate media’s “perversion (2014 version)” versus its “perversion (2013 version)”.

The insanity of last year began shortly after the Cyprus Steal, when a corrupt Western government rubber-stamped the first “bail in”. This, in turn, opened the floodgates to the unlimited confiscation (i.e. theft) of paper assets by our corrupt governments, as these puppet-leaders mumbled in unison about how this (act of theft) was now a “precedent”.

With this lawless seizure of peoples’ bank accounts being characterized (by puppet-politician and media drone alike) as a “precedent” rather than a crime; this sparked a stampede of panic out of one of the most-fraudulent forms of paper assets: the banksters’ paper-called-gold “funds”.

As every knowledgeable investor in this sector knows; the entire “gold market” itself (i.e. the paper-fraud market operated by the One Bank) is 99% paper and 1% gold. This was blurted out in open testimony to the CFTC by former Goldman Sachs banker, Jeffrey Christian. The exception to this are the bullion banks’ paper-called-gold “funds” which are simply 100% paper.

Thus when vast quantities of this paper was liquidated in the Stampede of ’13, it dragged down the official “gold price” with it. This caused demand for physical bullion (real gold) to spike to historically unprecedented levels. Yet the propagandists of the corporate media characterized this spike in demand to all-time record levels as a “12% drop in demand”.

Why? Because these serial liars totally ignored what was happening in the real gold market, and only reported on the bankers’ paper-called-gold – the 99% fraud which the bankers call “the gold market”. Now flash ahead to 2014.

With demand for (real) gold last year in the (real) world having hit an all-time record, but with the price remaining essentially flat this year, physical demand has cooled in 2014 from those torrid levels – in part due to the artificial suppression of gold demand in India. Meanwhile, holdings in the bankers’ paper-called-gold have recovered somewhat from last year’s unprecedented collapse, primarily due to the bankers being forced to soak-up countless millions of units of these paper-frauds themselves.

But what do we see in the reporting from the Corporate media this year? We see the propagandists ignoring (rising) “demand” in the paper-called-gold market (the 99%), and focusing their reporting exclusively on the (falling) sales in the physical gold market (the 1%).

 

The Old World Order

International Commentary

Regular readers are used to seeing various myths of propaganda debunked within these commentaries. However (until now) one of the most-insidious – and thus most-important – constructs of propaganda has not been addressed: the supposed “New World Order”.

The immediate and obvious point to make here is that readers should/must immediately become deeply suspicious any time we are bombarded with a label which contains the word “new”. Implicit in every such label (by definition) is the concept that “this time it’s different”, because if it wasn’t different it wouldn’t be “new”.

This time it’s different” is a cliché in Western societies. But it’s not revered as an aphorism of wisdom. Rather, it is scorned as the mantra of idiots. This same point was made in a previous commentary which debunked and rejected the ludicrous propaganda euphemism: “The New Normal”. The same analysis applies to both propaganda lies.

Why is the concept that “this time it’s different” (or this time it’s new) universally scorned by the more-intelligent members of our societies? Because such individuals subscribe to older, tried-and-true expressions of human thought:

The more things change, the more they remain the same.

Or, simply:

There is nothing new under the Sun.

Context changes. Principles are immutable. Those who refer to paradigms as being “new” or “different” (in categorical fashion) simply lack the capacity to perceive all the similarities to the previous paradigm(s). There is no “New Normal” in our societies, but we can also reject this particular lie by simply looking at the details of this (false) paradigm, itself.

This time it’s (supposedly) “normal” that unemployment (for the masses) is worse than at any other time in our history. Wages (in real dollars) are now as low as they have ever been in any time in our history. Meanwhile, the debts (among the masses) have never been higher. Poverty has never been as severe or as endemic. We never before had a class of people we now know as “the Working Poor”.

In short, for the vast majority of our citizens (the Little People) life has never been worse. But instead of our (corrupt) governments telling us how they plan on fixing all of these problems – which they created – they pat us on the heads and tell us (via the Corporate media) that now all this is “normal” (i.e. things will now always be like this).

Meanwhile, for the small minority at the very top; we see the precise, mirror opposite. Their incomes have never soared higher at such a dizzying rate. The hoards of wealth which they have amassed are orders of magnitude larger than anything ever before seen in our societies. They control (through their massive stock holdings) a much larger percentage of our Corporations than at any time in history. But the taxes they pay have never been lower.

In short, for the tiny minority at the top we see the opposite extreme: life has never been better. But instead of our (corrupt) governments telling us how they plan on re-balancing the worst wealth-inequality in the history of our societies – which they created – they pat us on the heads and tell us that now this too is “normal” (i.e. things will now always be like this).

As a matter of the most elementary logic; extremes can never be “normal”. As a function of both the laws of mathematics and the dynamics of human behavior; extremes always correct – back towards some more rational equilibrium which can be described as “normal”. The New Normal is not only a complete lie, it is a very silly/obvious lie.

   

How India Evaded The One Bank’s Gold-Embargo

Gold Commentary

By now; regular readers are familiar with another one of the One Bank’s “Wile E. Coyote” operations in the gold market: it’s brute-force ‘attack’ on the gold market of India – the world’s largest (real) gold market. This attack was necessitated when yet another one of the One Bank’s mega-crimes (its first “bail-in”) produced a series of unexpected consequences, for which the banksters were clearly not prepared.

With the Cyprus “bail-in” advertising the fact that (corrupt) Western governments were now prepared to simply confiscate any paper assets (and hand those assets to the criminal Big Banks of the West); this caused a massive stampede out of one of the most-fraudulent forms of paper assets: the One Bank’s own, paper-called-gold “products”.

We know that this exodus out of the Big Bank’s paper-frauds in the gold market was an unintended consequence, as reports of the beginning of this stampede were quickly accompanied by other reports that these tentacles of the One Bank were frantically soaking-up billions of dollars of units in their own, fraudulent, paper-called-gold “bullion-ETF’s”. Rule #1 of any self-respecting Con Artist is that one never “invests” in their own scams. You can’t cheat others when most of the money in the “con” is your own.

Yet, at least at one point, the banksters had soaked-up so much of this fraudulent paper-called-gold, that their holdings exceeded (by dollar value) their own gigantic, illegal, short positions. This prompted the serial-liars of the Corporate media to proclaim that the banksters were now “net long” in the gold market, an absurdity which (sadly) was widely parroted throughout the gold sector, even though the banksters had been buying almost nothing but paper.

Even with the massive (and frantic) buying by the Big Banks of their own, fraudulent “bullion-ETF’s”; total holdings in the largest of those fraud-funds (GLD) fell by more than 40%. If not for the desperation-buying by these tentacles; those gigantic frauds would have completely collapsed. But that was only one of the unintended consequences of the Cyprus Steal.

As knowledgeable readers know (thanks to Jeffrey Christian); the fraudulent “gold market” operated by these Big Banks is only 1% “gold” and 99% paper-called-gold (i.e. paper). Thus the stampede out of that fraudulent paper caused roughly a 30% drop in the already-depressed price of gold. This was nothing less than a “dinner chime” for Pavlov’s Dogs.

Global gold demand exploded to a never-before-seen level, led by imports from the world’s two largest populations: China and India. At one point, those two nations alone were importing gold at an annual rate of approximately 4,000 tonnes per year. This is roughly double the total annual supply from global gold mining (once China’s own domestic production is subtracted).

We know that this was also an unintended/unexpected consequence of the Cyprus Steal, because the One Bank was immediately forced into a desperate, heavy-handed attack on global gold demand. With China being largely immune from the attacks of the banksters (because of its massive war-chest of U.S. dollar holdings), they focused their malice on India.

These serial currency-manipulators immediately launched a savage attack on India’s currency, the rupee – expecting that the subsequent rise in the price of gold (expressed in depreciating rupees) would curb Indian gold-demand on its own. When that attack actually caused India’s gold imports to rise further (as frightened Indians rid themselves of their plunging, paper rupees); the One Bank was forced into even more absurd/draconian measures.

 

‘Silver Fix’ Is Irrelevant To Silver Manipulation

Silver Commentary

Much ado about nothing.” While that cliché wasn’t coined expressly to refer to the abolition of the (so-called) “silver fix”, it very well could have been. What we have here is yet another non-event; more of the banksters’ comedy-theater.

What is the basis of this scorn? Simple. The London Silver Fix is nothing more than what this evil-sounding exercise implies: a “fix” of the price of silver at one point in time. Does this in any way solve our problem with silver manipulation? Of course not.

Our “problem”, as previous commentaries stress again and again is Hostage Markets: a 24/7 invisible ceiling over the silver market (and the gold market), which has been permanently preventing precious metals prices from ever beginning to reflect reality (i.e. market fundamentals). The London Silver Fix accounts for one minute of the day, but has only a minimal, manipulative impact on the other 23:59 of our daily clock.

Hostage Markets are the product of a much more comprehensive system of manipulation, centering on a Master Trading Algorithm for manipulating all of the world’s markets. This was not only explained in detail in a recent commentary, but evidence from a new, class-action law suit was provided which (if verified) proves the existence – and near-omnipotence -- of this computer program for manipulating markets (and specifically, precious metals markets).

It is only through the permanent price-suppression of these two barometers of inflation that the One Bank is able to preserve the value of its fraudulent, hyperinflated Western currencies. Otherwise, the exponentially increasing (and obviously hyperinflationary) money-printing of recent years would have already taken this fraudulent paper to zero.

But even the banksters themselves can see that their precious metals manipulation is becoming more and more obvious, and that clumsy whitewash-jobs, like the CFTC’s so-called “investigation” into silver manipulation would/could only fool the Sheep for so long. So it is staging this theatrical “purging” of its market fraud, through ‘confessing’ one tiny (and now irrelevant/obsolete) aspect of this systemic silver-manipulation.

Abolishing” the London Silver Fix is the perfect ruse, in several ways. First of all, this (old) game which the Big Banks have been playing even sounds manipulative (and corrupt): literally “fixing” the price of silver (and gold). Secondly, the One Bank’s Master Algorithm has made the London Silver Fix (and “gold fix”) archaic and redundant. It loses nothing here.

This game is getting so old that it is discouraging that more, other commentators do not also see through it. We’ve seen the banksters use exactly the same strategy when their LIBOR-fraud had become exposed, when their gangster racketeering with metals warehouses had been exposed, and (similarly) each-and-every time one of the One Bank’s mega-crimes has been exposed, or is about to be exposed.

It is, in fact, nothing more than the made-for-business derivative of the “false-flag attack”, a game which the One Bank has played in the geopolitical arena for many, many decades. The unquestioned master of the (geopolitical) False-Flag Attack is the state of Israel, although the United States ranks a strong second.

   

Buffett Sits on $50 Billion Cash-Hoard, Waiting for Bubbles to Pop

US Commentary

Warren Buffett’s “game” is getting old, like Buffett himself. He panders shamelessly for the Big Banks of Wall Street, 24/7; and in return, these market-rigging criminals tell Buffett what to buy – and when to buy it. This allows Buffett to pretend to be a “market oracle”, a gig which has worked out very, very well for the multi-billionaire.

Buffett’s shtick is that he is “a long term investor”, which brings us to the crux of this piece. In order to be a “long term investor”, one must have nearly all of their money deployed, nearly all of the time. The entire concept of long-term investing is based upon the premise of having one’s capital “working for them”, as particular investment opportunities mature and ripen.

Obviously the $50+ billion which Buffett is currently hoarding on behalf of himself, Berkshire Hathaway, and its (wealthy) shareholders can’t “work for them” when it’s sitting on the sidelines. Thus the only exception to the standard practice of all long-term investors to be fully invested in the market (or nearly so) is when they are expecting a large and imminent “correction”.

When vampires like Buffett (knowing in advance what will happen) sit on an especially large pile of cash, it’s because they are expecting a particularly large correction (i.e. a crash). When such a Vampire is sitting on the largest mountain of un-deployed cash in the 40+ year history of Berkshire Hathaway, it can only be because he is expecting the Mother of All Crashes.

Here we come to the large, logical disconnect, which exposes Buffett as the pawn that he is. As noted in a recent commentary; officially the U.S. economy is now in a Never-Ending Recovery. Despite the fact that this supposed “recovery” is now already twice as long as any ordinary recovery; we’re told by the bankers, the U.S. government, and the Corporate media (i.e. all of Buffett’s friends) that this Recovery continues to “improve” (even after more than 5 years), and shows no sign of ever ending.

Why is this? Because the U.S. Recovery is a magical recovery. It can “grow” without jobs. It can “grow” without spending. It can even “grow” without using any energy. In fact, in the magical U.S. economy it’s gasoline-powered automobiles can now be operated without gasoline. Yet Buffett the Investor is currently waiting for the Mother of All Crashes, with the largest bet in the history of Berkshire Hathaway.

Understand that Buffett is not allowed to short U.S. markets with this massive hoard of capital, the logical way for a long-term investor to be “fully invested” when expecting a correction. That would be pushing against all of the equities-bubbles which his Masters have been pumping-up so diligently over the past 5+ years, and they are not yet ready to place their own “short” bets -- confident they can pump-up these bubbles still further before staging the next crash.

Their bets always come before those of Buffett and the Berkshire Hathaway club, and Buffett understands his place in the pecking order. However, for similar reasons it’s impossible for Buffett to simply wait until just before the preordained crash, and then pull all/much of his funds out of the market, all at once.

That would clearly telegraph that the crash was coming, tipping off the Sheep, and allowing them to pull their own capital out of markets – before they had been thoroughly-and-painfully fleeced by the “shears” of the Wall Street banksters. That is most-definitely not allowed, thus Buffett must accumulate this mountain of capital slowly, but relentlessly.

 

The Never-Ending ‘Recovery’

US Commentary

Follow along, ladies and gentlemen, as the amazing tale of the U.S. “economic recovery” is presented to readers. This journey into the surreal begins with an obvious question: how was this Never-Ending Recovery created, which (supposedly) is already roughly twice as long as any ordinary recovery, and (according to the “experts”) shows no sign of ever ending?

Any/all close followers of the Never-Ending Recovery will have no problem answering this question. It was created through the stalwart “leadership” of the Federal Reserve, under the expert tutelage of B.S. Bernanke. He printed, and printed, and printed U.S. dollars at an exponentially increasing rate, never before seen with any paper currency – which did not immediately plunge into worthlessness via hyperinflation. And those are only the $trillions which Bernanke admits printing.

More-specifically; B.S. Bernanke created all of this funny-money via the utterly meaningless euphemism we now know as “quantitative easing”. What does “QE” really mean? It means simply conjuring paper currency (out of ‘thin air’) which is not directly or indirectly “backed” in any manner whatsoever, and so cannot possibly have any value.

This explains what was done by the Chairman of the Federal Reserve, prompting the next question: why did he do it? The explanation here is “simple”, indeed utterly simplistic. B.S. Bernanke printed these $trillions and $trillions of new USD’s (more than $10,000 for every man, woman, and child in the USA) to “pump-up asset prices” in U.S. markets – primarily U.S. stock markets.

He (artificially) pumped-up these asset prices in order to create what he called “a wealth effect”. This would then make Americans feel wealthier (through artificially inflating the value of their assets), and then they would (supposedly) go out and spend, spend, spend – resulting in “the U.S. economic recovery”. Unfortunately there are numerous problems (and questions) with this particular piece of Bernanke B.S.

The first (and most-obvious) question is: why did Bernanke go this circuitous route of pumping-up asset prices with newly-printed dollars in order to make Americans “feel wealthier”. Why didn’t he simply hand every man, woman and child $10,000+? Two reasons.

The elementary answer here is that one can’t “make people wealthier” by simply printing-up and spreading-around stacks and stacks of worthless, unbacked paper currency. If it was possible to do so, Bernanke (and all the other central bankers) would simply print and hand out a million dollars per person, or a billion dollars per person – and then (supposedly) we would all be tripping over all the “new jobs” and “economic growth”. It doesn’t take any brains to turn the switch on a printing press from “off” to “on”.

So, to begin with, it is simply and utterly impossible to create (real) “economic growth” (and real economic prosperity) through such money-printing hocus-pocus. But that’s not the really absurd part of Bernanke’s lie that he “created a U.S. economic recovery” with all of his QE money-printing. To understand this requires answering the second part of the previous question: why did Bernanke pump-up stock markets, rather than simply (directly) handing everyone their “$10,000”?

B.S. Bernanke did not want everyone to “feel wealthier”. He only wanted the top-10% of the U.S. population (who own almost all that U.S. stock) to feel and be wealthier. And thus the full absurdity of this imaginary “recovery” is revealed. Recall the storyline.

Bernanke is pumping-up assets to create a “wealth effect”. He’s creating a “wealth effect” to get Americans to spend, spend, spend (and thus create jobs and economic activity). The problem with this ridiculous fantasy? The top-10% upon whom all this new “wealth” was bestowed were already very, very wealthy. In fact they have never been wealthier in the 200+ year history of the U.S. republic.

Obviously making the very-wealthy wealthier is the worst, possible use of a “wealth effect”. If Bernanke’s money-printing hocus-pocus could ever work; the people who would need to “feel wealthier” are the bottom-90% -- whose standard of living has plummeted by more than 50%, and who (in relative terms) have never been poorer.

   

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