Friday, October 22, 2010

There Is No Denial: The Dollar Is Doomed

Unfortunately, the Federal Reserve and its allies have not finished inflating and over the following years, they will create even more confetti money. Under this scenario, cash will continue to lose purchasing power and the asset poor middle-class will get even more impoverished. If our assessment is correct, cash will prove to be a disastrous 'asset' over the next decade and once the Federal Reserve's manipulation ends, fixed income securities will also depreciate in value.
The truth is that the US is insolvent and its policymakers will stop at nothing in order to avoid sovereign default. So, it should come as no surprise that at its latest meeting, the Federal Reserve downplayed the risk of inflation, thereby setting the stage for another round of money creation.
Make no mistake; Mr. Bernanke has already created copious amounts of money. Granted, the Federal Reserve's previous monetisation was highly secretive, but you can be sure that it did occur. Allow us to explain:
You will recall that during the depths of the financial crisis, the Federal Reserve expanded its own balance-sheet and bought all sorts of toxic assets from the financial institutions. By doing so, Mr. Bernanke created money out of thin air and bailed out the major banks.
Thus, the banks were able to dump their garbage assets on to the Federal Reserve and once they received the newly created cash in exchange for these securities, they loaned this money to the US government by purchasing US Treasuries. In summary, in the previous round of quantitative easing, the Federal Reserve created new money and instead of lending it directly to the US government, it used the banking cartel as its conduit. Back then, not only did the Federal Reserve create more than a trillion dollars, it also dropped its discount rate to almost zero; thereby allowing banks to borrow money cheaply! It should be noted that since the banks were able to obtain such inexpensive funding from the Federal Reserve, they had absolutely no qualms about re-investing this capital in US Treasuries.


  1. Good article cause the dollar is doomed. I've been telling everyone to buy as much canned food as possible before inflation sets in.

    Also, there's a new book surfacing that's a great read for what may be coming soon. Even TIME magazine had an article this week on possible civil war (probably after the dollar folds). I recommend it, cause it's about each of us.

  2. 11:07 follow this blog I only put the most important articles on here. I wade through hundreds a day. The Time magazine article has been put on here already:

  3. Is it time to cash out my 401K? I've been holding out for so long but now I'm getting really concerned? I'm a mom with 2 young kiddos and my husband has been unemployed for almost 2 years. I'm just wondering if I should try to ride this thing out or get out now. Try prepare the best I know how, for the future?! When do you think the dollar will crash- how much time do we have?

  4. 11:20 there is noting to ride out. That's like saying I'll ride out the 100 foot tsunami coming at me. The warnings that have been put here over the years are for your own good. Since we have been programmed by the government and media to 'believe" things will get better, many will lose everything over the coming years. Cash your 401k and get SILVER and GOLD immediately! China, India, Brazil as well as many countries have cashed in their worthless fiat money, why wouldn't you?

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  6. Thanks for the advice about the 401K. I really appreciate it. I'm going to get the paperwork going this weekend, they don't make it easy. BTW that Jew comment is just horrible! How is that even true or helpful?

  7. Being pulled soooo many ways...Canned food good yet they found chemicals in them that are of course slow acting poison...Best thing would be to can my own food since there be no artificial preservatives...That or rice and beans/lentils here we come...Get some sort of bike and motorcycle/scooter...I figure sooner or later gas will hit $7+ and all bets are off...Can u imagine the panic by those unprepared masses?

    Fuel is our lifeline...High fuel means food goes through the roof...You didn't think they were growing bananas, coffee, sugar, most fruits and veggies in your state did ya?

    When utilities, transportation and FOOD eats up your paycheck we all become squatters.

    At least 2 HUNDRED MILLION Americans with no viable skills, no resources, no preperation stocks beyond a week, too young, too old, too dumb...My God we'll see some madness that hasn't been seen in the US since the Civil War...Feds vs. State...County vs. county over water rights...Black vs. Hispanic vs. Asians vs. White neighborhoods...Ha sounds so crazy but a fall of currency will do that to the average American who usually is unprepared.

    The Tin Foil Crew will get their Illuminati dream...The Aryans will get their Race War...The Blacks will get their White Conspiracy...The religious will get Revelations...The Preppers their Survivalist Wetdream.

    As for me? Going to enjoy my Oreo cookies and coffee thank you very much and prepping myself for incredible, magnificant, evil, bad things that come our way in my lifetime...Who would have thunk it say 10 years ago we be on the brink of so many world wide collapses?

    Oh yeah that KGB Proffessor, Max Keiser, Ron Paul, Peter Schiff, Clemente and even kooky Alex Jones...Where's my Tin Foil Hat?

  8. Sometimes I can't believe these are the times we are living in...Please pass me my hot pink tin foil hat! :)
    I did buy a pressure canner and it's awesome! you can even can your own meat and it's so much cheaper/healthier than buying it from a store. I was also thinking that I need a skill, I know how to sew but need to dust off and send my sewing machine in for a tune-up. I know there is so much to think about and to contemplate. You could almost drive yourself bonkers at night with all of this racing through your mind. I do have a new sense of URGENCY. I don't know? I just feel something bad coming down the trail, I remember this line from Lord of the Rings "War is in the Air", you know you can just "feel it?". (now I'm talking crazy, lol) The fuel issue does concern me. I was thinking of purchasing a kerosene heater just in case for winter?
    But most importantly, how much time do you think we have? Do you believe we have a year, 6 months or could be next month?

  9. From Steve Quayle's web site:


    The Day The Earth Stands Still: In speaking to my Asian source last night it became clear that the FED is buying time for the Day of The event--"you are hearing a pre-amble of panic attacks (again) to securitize one's investment. The FED is vetting out all possible scenarios. They will stupidly print out more money against their debt and that is just to keep the lights on around the world. A Weimar replay". He went on to say that even the Billionaire Clients of his are preparing for the inevitable Shutdown and Meltdown of the Worlds Financial System by Thanksgiving at the latest. Nothing like this has ever happened before in History. All day trading will stop--all ability to take Delivery of anything through the mail will end. Day trading and the Stock Market will not be able to function as the Net goes down by DESIGN! There is a Reason why all the Articles in the "Lame stream Media" are writing about the Military being involved so heavily in preparing for the KNOWN CYBER ATTACK that is planned! MARTIAL LAW, the Military control over of the Country will be implemented as Law and order breaks down and all services from power, water, sewer and STORES CLOSE--ALL TRANSPORTATION (PUBLICS ABILITY TO TRAVEL) is controlled or forbidden and the EARTHS FINANCIAL SYSTEMS COME UNHINGED! THIS IS MAY BE THE THE LAST TIME I HAVE TO WARN YOU ABOUT THE PRECIOUS METALS--In speaking with one of The Largest wholesalers of Gold and Silver yesterday, that I have been doing business with for over 28 Years ,I was informed that Silver Rounds and silver bars are 4-8 weeks out, meaning the Primary Market Sources that Precious Metals Dealers buy from for resale to the public are running on out of stock--SILVER EAGLES ARE STILL SOMEWHAT AVAILABLE AT INCREASING PREMIUMS.

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  11. yessir you are correct...applauding!!!!!!

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  13. EA - Please immediately REMOVE all anti-semitic comments! Also, please block them from posting again!

  14. "From Steve Quayle's web site:


    I wasn't familiar with this web site. Went there and started reading some of the articles. There's some damned scary stuff going on in this world right now!

  15. 3:33: Good find. I just checked out the site. This was it says about silver:

    "In speaking with one of the largest wholesalers of Gold and Silver yesterday, that I have been doing business with for over 28 years, I was informed that silver rounds and silver bars are 4-8 weeks out, meaning the Primary Market Sources that Precious Metals Dealers buy from for resale to the public are running on out of stock--SILVER EAGLES ARE STILL SOMEWHAT AVAILABLE AT INCREASING PREMIUMS--Gold is still available but silver is problematic."

  16. Along with many others, we have no gold or silver stashed away but what we do have I consider invaluable: non-powered basic hand and gardening tools, an assortment of fasteners, and basic repair items, small table top grills that could be used with charcoal or small broken up branches, heavy pans that could stand up to direct fire cooking, a good asortment of sewing, knitting and crochet patterns and supplies; books or printed articles from internet...will we have power? Will we be able to afford power? Suggest Amish or Minnonite cookbooks/recipes, excellent home-style cooking information. Don't dispose of any clothing until you remove buttons, zippers, good parts of fabric for patches. What about hygene and paper products? Years ago people didn't go and buy these every week! Babies/toddlers...try to find or make (flannel would do in a pinch) diapers and feminine napkins. Yes, you actually wash, dry and re-use these! Are "rubber pants" still made for over cloth diapers? Baby-saftey pins. THINK OUTSIDE THE BOX!! Even if things are still available, can you afford them or get to a store? If you could not, what would you need to have? What could you use in place of the item? Break out of the brain washed stupor we've been living in!! Hope this helped a little.

  17. Definitely 5:37.

    Whatever skills you have will be value to the community you'll be with.

    Muscles? In shape? Labor use.
    Cook? Gardener? Food.
    Brainy? Intelligent? Managing and Organizing.
    Good with kids? Babysitter.
    Craftsman? Mechanic? Technician?

    If you guys are really focused on gold you are really focused on working against everyone else. You can't beat the world. Besides, who is going to judge the value of this gold? If you're getting gold/silver that's fine, but it will probably avail to nothing.

    You really want to tell people you have gold anyways? There won't be any riot squads to break up 100 people killing each other over a dead person's gold. The community is the wealth once it all goes done.

    The new currency will work like this:
    (Money is always survival)

    Community = People
    People = Survival
    Au/Ag = Contemplation
    Contemplation --> Paranoia

  18. yeah make a stove that burns twigs/sticks from steel cans, no fuel to buy, portable and lighterweight then backpacking stoves as no fuel canisters to carry, run out of. cigars...when a guys down a good cigar is a fine thing to have. Those dishwashing rubber gloves make good cold weather glove liners, helps keep the heat in. I laughed at the keep buttons comment, yeah I remember all those mason jars filled with buttons when I was a kid and had plenty of pants saved by a replacement button, yeah in the 70's oil embargo and stagflation we didn't used to run out and buy new pants because the button fell off..I dunno, how do they live in zimbawe or haiti and rural china, I see in Irag the kids repair shoes and sell them..poor but making do, and still manage a laugh. to what degree we decline I dunno, but lower standard of living here, while the poor of the world are raised up-some-is expected, nwo, level the playing field to appease the global masses.

  19. the gov. wouldnt let that happen to us...
    they wouldnt get any tax money

  20. 12:26 I have been wrong too many times to make a guess all I can say is I get a really bad "Spider Sense Tingling."

    My original guess was riots in the cities last summer and yet nothing happened...I have NO IDEA how we are floating when everyone KNOWS the dollar is worh NOTHING.

    About 3-4 months ago I believe the US Comptroller admitted we passed the amount we could possibly pay back if everything was incredibly great...So at this point if I lent the US money it be for collateral...Mineral rights/land/weapons etc.

    Argentina style collapse is what I see...Slow progressivily worse until we totally collapse...Time frame who knows?...As we speak we are in slow collapse.

    Soooooon...I see people on the edge already...You can actually feel the tension in the air among those that read, study history or deal with public...You feel that?

    Example: Kid in Roseville set part of a mall on fire as he tried to get himself killed after twice being rejected for trying to get himself locked up in a psych ward in the last 6 weeks...Reason? Loss of job and no access to psych meds AND NO MONEY IN THE BUDGET TO LOCK HIM UP BEING THEY"RE PACKED WITH TOO MANY CASES.

    Thousands of examples nationwide everyday...Suicides, domestic violence, child abuse, robberies, stealing from families, drug use, alcohol abuse as people try to hide from their problems.

    It's called a fear of things to come...All that it takes for there to be a collapse is loss of confidence in the system.

    The only difference between being unaware and in a full scared panic is the loss of income...Cuz as we all know the social services will collapse first...We all know it but we pretend we don't...It's the giant elephant in the room.

    I just saw a woman and her baby at Safeway as she used WIC checks to buy food and baby formula...What is she going to do when it stops?

    Well maybe she shouldn't have had the kid if she wasn't making enough to feed the child without aid...But kinda late in the game for that no?

    I read elsewhere that the thing people have to do first is just understand the situation and not panic as the rest will...So do whatever you need to mentally prepare.

    Turn to psychology, stocism, religion and just take things in stride...Prepping is always a good thing but so is mental fortitude.

    So in that spirit being nothing more can be done at this time...I'll be off for awhile...Going to have a great dinner Saturday...Drink among friends...Walk on the beach and enjoy because fearing life is what makes people shrivel and live life with a sad taste to it.

    Remember all you need to be happy sometimes is a good friend, a few good games of chess and a decent bottle of cabernet on a cold night.

    Of course a pretty woman of questionable morals and a good hotel don't hurt either but either one still makes me smile.

  21. In horror movie terms. We all have been bitten by a zombie. We know we will soon turn into a zombie but don't know exactly when . What we do know is that for all practical purposes, is that we are already the walking dead with no hope.

  22. Guys, buy a spare pair of shoes! They will be hard to get when they wear out.

  23. what's with the censorship. I want to read all comments. I dont care if they are about jews or eskimos are green lizard men from mars. stop pulling posts please.

  24. 5:00pm execellent example!

    I love horror movies so it makes sense and fits the situation...Still we as humans always want to know "WHEN?"

    So some say 5 years, some say 1 year, some say months...I think we're all kinda right.

    Technically we are bankrupt...Taking and borrowing more than we'll EVER be able to repay.

    Technically all cities, counties, states are bankrupt since the amounts promised to pensions will not be there when they need them.

    Technically we are in a GREATER DEPRESSION since the actual amount of real people working and paying taxes is something like 25 out of every 100 people...Seriously take away babies, single moms, drug addicted, young students, sick, disabled, handicapped, crazy, retired, jailed or in prison...Then take away those not working more than 25 hours a week...What's left?

    I believe the Chinese curse was "May you live in interesting times." The things we'll see in my life will be insane. City size buildings collapsing, cave dwellers beating back the most modern, well equiped military ever, propaganda on a Nazi level, civil wars, race wars, conflict for diamonds, oil, minerals and pipelines, poisoning of the gulf, fake wars on drugs, dictators, manchurian candidates, weird X-File UFO BS that is actually happening and the worst thing? My San Diego Chargers losing to the St. Louis Rams...Now I know there's a real conspiracy.



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