Why the End of America is Closer than You Think

31/03/2009 § Leave a comment

 

The America as we know it, at least. This repeated creation of trillions of dollars in new money by the Federal Reserve is the last great looting of the U.S. economy by the wealthy elite. The Titanic is sinking, and high officials have monopolized the life rafts, leaving everyone else to drown with the ship. And while they’re rowing away from the doomed vessel that’s taking on water, they shout back to the low-income workers clinging to the rails, "Don’t worry! The ship isn’t really sinking. It’s just ‘correcting!

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Why the End of America is Closer than You Think by Mike Adams the Health Ranger

Fed Planning 15-Fold Increase In US Monetary Base

31/03/2009 § Leave a comment

The fed is planning moves that would more than double its balance-sheet assets by September to $4.5 trillion from $1.9 trillion. Whether expressing approval or concern over the fed’s intentions, most commentators fail to understand the real magnitude of the projected expansion of the US monetary base because they don’t take into account the amount of dollars circulating abroad.

At least 70 percent of all US currency is held outside the country, and this means the US monetary base is considerably smaller than the fed’s overall balance sheet. Take, for example, the true US domestic money supply at the beginning of September 2008, before the fed started its quantitative easing. From the Federal Reserve’s website, we know that currency in circulation was 833 Billion. This translates as 583 Billion dollars circulating abroad (70 percent), and 250 Billion dollars circulating domestically (30 percent). Since the bank reserve balances held with Federal Reserve Banks were 12 billion, that gives us a 262 Billion domestic monetary base as of September 2008. Now compare that to the projected US domestic monetary base for September 2009 which is 3,818 billion (4,500 billion – 583 billion (dollars circulating abroad) – 99 billion (other fed liabilities not part of the money supply)). The fed’s planned balance sheet expansion results in a 15-fold increase in the base money supply.

262 Billion = US monetary base as of September 2008 (minus dollars held abroad)
3,818 Billion = projected US monetary base in September 2009 (minus dollars held abroad)

3,818 Billion / 262 Billion = 15-Fold Increase in US monetary base

This is a staggering devaluation of the US currency! It means that for every dollar in America in September 2008, the fed is going to create fourteen more of them!

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*****Fed Planning 15-Fold Increase In US Monetary Base***** | Market Skeptics

Has the greenback become a toxic liability?

27/03/2009 § Leave a comment

 

A currency collapse normally comes after a failure of the financial system. At this point, all the big US banks are in trouble, with a growing risk of widespread insolvency. They are being put on a life support system by the Federal Reserve Board. Most of the big names will be wiped out. The Fed is also going to print massive sums of money, to the tune of more than $1.2 trillion ,to prevent a collapse in the payment system.

Geithner’s plan may buy out toxic assets from the banks and keep them afloat for a while, but the fundamental question is how big the losses of the financial system are – losses from the off balance sheets that have yet to be quantified.

Insofar as this big black hole has not been addressed or dealt with decisively, there is no way that the US financial system can be fixed. If the fixing of the US financial system is delayed further, coupled with the continuing severe recession, the dollar will soon face a full-blown crisis. By that time, it will be too late. And it might already have been too late anyway.

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Has the greenback become a toxic liability? – Nationmultimedia.com

The Big Takeover

24/03/2009 § Leave a comment

The mistake most people make in looking at the financial crisis is thinking of it in terms of money, a habit that might lead you to look at the unfolding mess as a huge bonus-killing downer for the Wall Street class. But if you look at it in purely Machiavellian terms, what you see is a colossal power grab that threatens to turn the federal government into a kind of giant Enron — a huge, impenetrable black box filled with self-dealing insiders whose scheme is the securing of individual profits at the expense of an ocean of unwitting involuntary shareholders, previously known as taxpayers.

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The Big Takeover | Rolling Stone

US Economic Collapse Facing Its Weimar Moment

23/03/2009 § Leave a comment

 

Resentment and obstruction are all the right wing in America have to peddle. Their policies are utterly discredited. Their ideology – even by its own standards – is a sham. They are so bereft of leaders, their de facto leader is a former drug addicted, thrice-divorced radio talk show host. That is literally the best they can muster. But they have built a national franchise inciting the downwardly mobile to blame the government, not the right, for their problems, exactly as Hitler did in the 1920s.

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United States Economic Collapse Facing Its Weimar Moment :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

IMF poised to print billions of dollars in ‘global quantitative easing’

20/03/2009 § Leave a comment

 

Alistair Darling and senior figures in the US Treasury have been encouraging the Fund to issue hundreds of billions of dollars worth of so-called Special Drawing Rights in the coming months as part of its campaign to prevent the recession from turning into a global depression.

IMF poised to print billions of dollars in ‘global quantitative easing’ – Telegraph

What the Pros Say: US Is Now ‘Bankrupt’

20/03/2009 § Leave a comment

 

Technically, the U.S. is already "bankrupt" because it has a debt that is almost four times the size of its economy, says Puru Saxena, CEO of Puru Saxena Wealth Management. He tells CNBC that the U.S. is at risk of hyperinflation.

If the planet’s biggest corporate cheerleader is reporting this it is obvious that its allot worse than even Roubini, Schiff and Rogers have been telling us.

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What the Pros Say: US Is Now ‘Bankrupt’ – General * Europe * News * Story – CNBC.com

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