We Have Been Warned!

Bernanke gave his “helicopter” speech in which he made reference to a “helicopter drop of money.” But the critical point in his speech was:

    “U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in term of goods and services, which is equivalent to raising the prices in dollars of those goods and services.”

Currently the “helicopter drops” are primarily fed into the reserves of the banks and to cover the increasing deficits between government expenses and revenues. There is no end to how many dollars the Federal Reserve can create. At the time of Bernanke’s speech, an ounce of gold was worth approximately $320. As of September 2012, that same ounce of gold is worth over $1,700. The gold has not changed, but the value of the dollar has declined. As more dollars are created or “dropped from helicopters,” all existing dollars become less valuable. We have been warned.

September 11, 2001: The official story is that two jets crashed into two World Trade Center buildings and caused three buildings to collapse. The violence and destruction were blamed on Al Qaeda and provided the impetus for “The Patriot Act” and two massively expensive wars in Iraq and Afghanistan. For 6,000 years the Middle East has been filled with anger, hatred, and war between the people and countries of the Middle East and toward outsiders such as England and the United States. The 911 attack was one of many in an ongoing series of Middle East related violent attacks that seem destined to continue. Read more....