It’s the Dollar, Stupid

Kurt Nimmo
Infowars.com
September 27, 2010

For the sixth day in a row, the price of gold has skyrocketed. On Monday, the precious metal climbed to a 30-year high as fiat paper money values tumbled. Gold for immediate delivery rose as much as 0.3 percent to an all-time high $1,300.15 an ounce.

Instead of rushing into government created paper assets, investors are buying gold and silver.

Instead of rushing into government created paper assets, investors are buying gold and silver.

“There is a net devaluing of currencies,” James Moore, an analyst at TheBullionDesk.com in London. told Bloomberg this morning. Gold gained as Ireland prepares to bail out Anglo Irish Bank Corp. and speculation over European banks lacking adequate capital.

The dollar fell after Ben Bernanke announced the Federal Reserve is prepared to launch a new round of quantitative easing by buying millions of dollars of bonds.

The Federal Open Market Committee’s September 21 statement said it “will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery.” Quantitative easing is a term used when the Fed increases the size of the money supply and floods financial institutions with capital in order to promote increased lending and liquidity.

It should be noted that the Fed used quantitative easing during the first Great Depression. The Fed began to purchase securities in the open market in April of 1933 and eventually shifted to the Treasury and the White House through gold purchases. On August 28, 1933, Roosevelt moved to confiscate all gold held by citizens.

JPMorgan Chase & Co. said there is a 75 percent chance that the Fed will start another round of “asset purchases” before the end of this year to boost the economy, supporting Treasury bond prices, according to Bloomberg.

However, as Bob Chapman of the International Forecaster noted earlier this month, the Fed effort is doomed to fail in a spectacular way. “What the Fed has been approaching since June is a ‘liquidity trap.’ That is when loans are offered to business and they refuse to borrow. They stop using credit because they question the future of the economy, their government and the specter of new taxes in the future. Money and credit is available, but few want to assume the risks to borrow,” writes Chapman.

Instead of rushing into government created paper assets, investors are buying gold and silver. “This market is the exact opposite of the gold and silver markets, which are in an 11-year bull market. The metals separated from the dollar 15 months ago and they have already won the battle of the world’s only real currency. Gold has gained 15% a year for those last 7 years. This is a secular bull market and cannot be denied. Further, gold has appreciated annually against every currency,” writes Chapman.

Central banks around the world have moved into gold, a trend that began in the 1980s. India, China, Russia, and other nations have increased their gold reserves as fiat currencies hit the skids and the Greatest Depression picks up steam.

The continued gold rush and the remarkable rise in prices of both gold and silver represent a bellwether for the demise of the dollar. The decline of the dollar means millions of Americans will suffer a huge loss of purchasing power and a sharp decline in living standards. In fact, this process is now already well underway as unemployment rises and the middle class shrinks in size.

It is not the vagaries of the stock market or inept government economic policy that has ushered in the Greatest Depression.

The Federal Reserve is not run by clueless government bureaucrats. It is a subsidiary of the bankster cartel and federal only in name.

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The Greatest Depression now underway is an engineered event. The destruction of the dollar, the increase in the fiat money supply that will create merciless inflation, and the slow withering away of the middle class — all of this is part of the plan to remake the world as the globalists see it.

If the Greatest Depression is allowed to continue unabated — and it looks like it will — billions of people will be reduced to serfdom under a global government scheme cooked up by the elite.

–

Kurt Nimmo edits Infowars.com. He is the author of Another Day in the Empire: Life In Neoconservative America.

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Orwellian DoubleThink: Collapse is Recovery

Orwellian DoubleThink Series, part 5

Activist Post

When the National Bureau of Economic Research  announced, after much deliberation apparently, that the economic recession ended in June, 2009, it was as if the news were broadcast from some other planet.  It is Orwellian DoubleThink at its finest, where a compartmentalized think-tank uses some off-world calculus to come up with a conclusion that flies right in the face of observable reality and real-world experience here on Earth.

Here are just a few of the key stories of the week for those who prefer real analysis to pure propaganda:

• Foreclosures Rise, Repossessions Set Record -- Rick Sharga, Vice President of RealtyTrac talks about a "managed slowdown" by banks, where "underlying conditions haven't improved."  High unemployment and falling home prices do not mean a recovery is underway.
• Home Prices Drop in 36 States . . . Prices to Stagnate for a Decade -- Among other sources, CoreLogic methodology, which incorporates more than 30 years of transactions, representing 55 million observations from property information databases does not conclude that the outlook is anywhere close to recovery.

• Gerald Celente Says "U.S Economy = Depression" -- One of the world's leading trend forecasters goes beyond simple recession.  In a recent interview with Russia Today, he was asked to respond with one word that defines the U.S. Economy -- that word was notrecovery.
• 20 Signs That The Economic Collapse Has Already Begun For One Out of Every Seven Americans -- Even though "most Americans haven't felt it yet" there are some undeniable signs of economic collapse.  To believe otherwise, as the NBER suggests, is willful ignorance.
• Income Poverty: One in Three Americans Lacks the Income to "Make Ends Meet" -- This is the real-world measure that goes beyond all statistics.  This study suggests that "young adults are among the hardest hit."  In other words, the pillars for future success of the country are not finding that there are sufficient jobs, or that those jobs are paying wages that can support the basic cost of living.  There is an increasing number of working poor and the outright destitute -- not people jumping for joy over real signs of a recovery.

Perhaps one of the articles that best summarized the results from the NBER came from renown economist David Rosenberg:  "Here's Why The NBER's Declaration of a Recovery is a Joke" where he pointedly states, "So, the recession technically ended 15 months ago; tell that to the 15 million unemployed and the 42% share of these ranks that have been looking for a job fruitlessly for at least six months." 

SERIES LINKS:

Part 1: Welfare is Employment

Part 2: Rights are Privileges

Part 3: War is Peace

Part 4: Illness is Health

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20 Signs That The Economic Collapse Has Already Begun For One Out Of Every Seven Americans

The Economic Collapse
September 18, 2020

	Today the United States has approximately 4 million fewer wage earners than it did in 2007. Photo: Bernard Pollack.

For most Americans, the economic collapse is something that is happening to someone else.  Most of us have become so isolated from each other and so self-involved that unless something is directly affecting us or a close family member than we really don’t feel it.  But even though most of us enjoy a much closer relationship with our television sets than we do with our neighbors at this point, it is quickly becoming undeniable that a fundamental shift is taking place in society.  Perhaps you noticed it when two or three foreclosure signs went up on your street.  Or perhaps it got your attention when that nice fellow down the street lost his job, and he and his family seemingly just disappeared from the neighborhood one day.  The Census Bureau made front page headlines all over the nation this week when they announced that one out of every seven Americans was living in poverty in 2009.  Every single day more Americans are getting sucked out of the middle class and into soul-crushing poverty.

Unfortunately, most Americans don’t really care because it has not affected them yet.

But this year, millions more Americans will discover that the music has stopped playing and they are left without a seat at the table.

Meanwhile, neither political party has a workable solution.  They just like to point fingers and blame each other.

The Democrats blame Bush for all the poverty and advocate expanding programs for the poor.  Not that there is anything wrong with a safety net.  But the “safety net” was never meant to hold 50 million people on Medicaid and 40 million people on food stamps.  The number of Americans on food stamps has more than doubled since 2007.  So do we just double it again as things get even worse?

The truth is that welfare programs are only short-term solutions.  Unfortunately, the Democrats do not understand this.  What Americans really need are good jobs.

The Republicans are so boneheaded that they don’t even like to talk about poverty because they think it is a “liberal issue”.  Some conservative commentators have even been so brutally cold as to mock the “99ers” (those who have been unemployed so long that even their extended federal benefits have run out).

Instead of showing some compassion and being the party of the American worker (as they should be), the Republicans are often very uncompassionate and they allow the Democrats to be “the party of the poor” by default.

Both political parties need a big wakeup call.  There is a tsunami of poverty sweeping the United States, and somebody better wake up and do something about it.  More handouts will help people get by in the short-term, but there is no way that the federal government can financially support tens of millions more poor Americans.

How long is it going to be before the “safety net” simply collapses under the weight of all this poverty?

The path we are on is not sustainable.

The economy is falling apart, and somebody better wake up and do something before even more Americans find themselves drowning in poverty.

The following are 20 signs that the economic collapse has already begun for one out of every seven Americans…..

#1 The Census Bureau says that 43.6 million Americans are now living in poverty and according to them that is the highest number of poor Americans in 51 years of record-keeping.

#2 In the year 2000, 11.3 percent of Americans were living in poverty.  In 2008, 13.2 percent of Americans were living in poverty.  In 2009, 14.3 percent of Americans were living in poverty.  Needless to say the trend is moving in the wrong direction.

#3 In 2009 alone, approximately 4 million more Americans joined the ranks of the poor.

#4 According to the Associated Press, experts believe that 2009 saw the largest single year increase in the U.S. poverty rate since the U.S. government began calculating poverty figures back in 1959.

#5 The U.S. poverty rate is now the third worst among the developed nations tracked by the Organization for Economic Cooperation and Development.

#6 Today the United States has approximately 4 million fewer wage earners than it did in 2007.

#7 Nearly 10 million Americans now receive unemployment insurance, which is almost four times as many as were receiving it in 2007.

#8 U.S. banks repossessed 25 percent more homes in August 2010 than they did in August 2009.

#9 One out of every seven mortgages in the United States was either delinquent or in foreclosure during the first quarter of 2010.

#10 There are now 50.7 million Americans who do not have health insurance.  One trip to the emergency room would be all it would take to bankrupt a significant percentage of them.

#11 More than 50 million Americans are now on Medicaid, the U.S. government health care program designed principally to help the poor.

#12 There are now over 41 million Americans on food stamps.

#13 The number of Americans enrolled in the food stamp program increased a whopping 55 percent from December 2007 to June 2010.

#14 One out of every six Americans is now being served by at least one government anti-poverty program.

#15 California’s poverty rate soared to 15.3 percent in 2009, which was the highest in 11 years.

#16 According to an analysis by Isabel Sawhill and Emily Monea of the Brookings Institution, 10 million more Americans (including 6 million more children) will slip into poverty over the next decade.

#17 According to a recently released Federal Reserve report, Americans experienced a $1.5 trillion loss in combined household net worth in the second quarter of 2010.

#18 Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

#19 Median U.S. household income is down 5 percent from its peak of more than $52,000 in 1999.

#20 A study recently released by the Center for Retirement Research at Boston College University found that Americans are $6.6 trillion short of what they need for retirement.

How anyone can look at those numbers and think that things are about to “get better” absolutely boggles the mind.

It is time to wake up.

Things are not going to get better.

Things are only going to get worse.

The United States is rapidly becoming a nation where poverty is absolutely rampant.

As poverty continues to spread, crime will not be far behind.

Meanwhile, the international community wants to impose a global tax on us so that they can “redistribute” even more of our wealth around the world.

The following was just reported by CNSNews.com….

A group of 60 nations will meet next week at the United Nations to push for a tax on foreign currency transactions as a way to generate revenue to meet global poverty-reduction goals, including “climate change” mitigation.

Well isn’t that great?  As American descends into poverty, the rest of the world is pushing for a global tax that will drain us of wealth even more.

It is just a tax on foreign currency transactions, but history has taught us that once taxers get their foot in the door they always go for more eventually.

Sadly, it is not just the United Nations that is discussing a global tax.  In fact, the IMF and the World Health Organization have both been very open about the fact that they want to impose global taxes of their own.

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Not that we aren’t taxed enough already.  We already pay dozens of different kinds of taxes each year, and 2011 is already being dubbed as “the year of the tax increase“.

But most Americans don’t have any more to give.  Most Americans can barely make it from month to month.  More Americans than ever are slipping into poverty.

What a mess we have on our hands.

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Stimulus Inefficiency: Costs $1.4m per Green Job Created

Activist Post

Lithium Ion Car Battery

Surely everyone would love to see cleaner energy programs in the U.S., especially given the environmental catastrophe looming in the Gulf.  And certainly, the American economy desperately needs jobs.  But leave it to our broken government to spend the stimulus money as inefficiently as the TARP funds which did very little to create jobs.  In a recent Associate Press release the Obama administration defended criticism of the stimulus "economic recovery program" by touting the jobs created under the $2.4 billion "advanced battery" program:

Battery maker A123 Systems Inc. planned to open a new lithium ion battery plant Monday in Livonia, Mich. About 300 workers, many formerly laid-off auto workers, were to join Energy Secretary Steven Chu and Michigan lawmakers to promote their production of battery cells and components. The Watertown, Mass.-based company received $249 million under the stimulus program and plans to open a second facility next year in Romulus, Mich.

Automotive supplier Johnson Controls Inc. last week started shipping batteries that were made at a Holland, Mich., facility built with the help of $299 million in federal grants. The factory expects to employ 90 workers by late next year and could produce 75,000 to 150,000 batteries a year, depending on the mix of hybrid and electric vehicles it supplies.

So according to this release, only 390 jobs were created from the $548 million taxpayer investment, or about $1.4 million per job. At this rate, the full $2.4 billion allocated for the federal advanced battery program would create a whopping 1714 jobs. This is a far cry from the estimates sited in the article by Michigan Gov. Jennifer Granholm, D-Mich, who said "the federal battery program, along with state incentives, are projected to create 63,000 jobs in Michigan."

Of course any job creation is a good thing, but it is laughable for the administration to use this particular program to debunk criticism of the stimulus spending.  The $787B stimulus represents about $2625 for every man, women, and child in America, and about $7500 for every taxpayer.  It seems that the money would be better spent if returned directly to the citizens who can then go buy solar panels, or fuel efficient vehicles if they choose.

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