The Fed is Now 100% Committed to the Destruction of the US Dollar


By HousingBoom   Follow   Sun, 23 Dec 2012, 8:41pm   2,560 views   32 comments
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http://www.munknee.com/2012/12/peter-schiff-the-federal-reserve-is-now-100-committed-to-the-destruction-of-the-dollar/

Federal Reserve is 100% committed to the destruction of the dollar. Anyone with wealth in the U.S. dollar should be concerned that economic leadership is firmly in the hands of irresponsible bureaucrats who are committed to an ivory tower version of reality that bears no resemblance to the world as it really is. By upping the ante once again in its gamble to revive the lethargic economy through monetary action, the Federal Reserve’s Open Market Committee is now compelling the rest of us to buy into a game that we may not be able to afford.

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  1. Bubbabear


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    1   9:02pm Sun 23 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    In November 1923, during Weimar Germany's hyperinflation, a loaf of bread cost 3,000,000,000 (3 billion) marks, however the German treasury printed 1,000,000,000 (1 billion) mark notes, so you would only(!) need 3 notes to pay for a loaf. If you had to pay with lower denomination, older notes you can imagine that, even with 1,000 mark notes, it would take more than a wheelbarrow to transport 3 million of them

    http://theeconomiccollapseblog.com/archives/quantitative-easing-did-not-work-for-the-weimar-republic-either

    Does anyone notice how much more expediently the express line at the grocery store ,devours a $100.00 bill more and more each day in a progressively short period of time ?

  2. The Professor


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    2   4:12pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   Protected  

    Keynes said:
    "By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some …. Those to whom the system brings windfalls …. become “profiteers” who are the object of the hatred …"

    Sorry Roberto, Iwog, and your ilk. You are being set up as the fall guys, the ones to blame when the house of cards come falling down. As rents go up and wages stagnate or fall the masses get out the pitchforks and look for someone to blame. The landlord is the obvious target.

    I kinda like you guys. I see you as honest people that are able to game the system by the rules. The losers don't have enough sense to hate the game. They will hate the player.

  3. bmwman91


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    3   4:21pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    The Professor says

    The losers don't have enough sense to hate the game. They will hate the player.

    IF it ever comes to that, you are correct. The masses will murder landlords and bank tellers, not the psychopathic miscreants that are truly responsible for all of the misery. It's a big IF that things will get to that point though. It does look like we are headed in that direction, but we don't seem to be going very fast and it is only on the horizon. Hopefully we don't get there, or somehow hit a situation where people turn their ire on those actually responsible for this mess and use the ballot box to do something about it. Hey, we can dream, right?

  4. The Professor


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    4   5:19pm Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    bmwman91 says

    Hopefully we don't get there, or somehow hit a situation where people turn their ire on those actually responsible for this mess and use the ballot box to do something about it. Hey, we can dream, right?

    Agreed!

  5. Kevin


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    5   6:11pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike  

    Hey guys, peter Schiff is predicting imminent hyperinflation again. I'm sure this time he will be right. Tenth times the charm, after all!

    Anytime someone compares the us yo Weimar Germany I laugh a little. Its like people only read half of their history books.

  6. Bubbabear


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    6   6:56pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Kevin says

    Anytime someone compares the us yo Weimar Germany I laugh a little. Its like people only read half of their history books.

    We're seeing prices rise substantially at the grocery stores.

    The government is wasting literally trillions trying to raise housing prices. We know with all this money creation it has to go somewhere and it is going into the price of food.

    I expect all this government effort to lift the housing market will come under some major scrutiny once grocery prices really get heated.

  7. Bubbabear


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    7   7:02pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    The Professor says

    people that are able to game the system

    Call it what it really is !!!

    "DEMONIZE the system "

  8. The Professor


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    8   8:07pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   Protected  

    Kevin says

    Hey guys, peter Schiff is predicting imminent hyperinflation again. I'm sure this time he will be right. Tenth times the charm, after all!

    I know, how can Schiff keep underestimating the evilness of the overlords?

  9. The Professor


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    9   8:08pm Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)   Protected  

    Billybigrig says

    The Professor says



    people that are able to game the system


    Call it what it really is !!!


    "DEMONIZE the system "

    They are playing by the rules. The evil comes from the higher ups who are making the rules.

  10. taxee


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    10   8:18pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike  

    As long as they keep up the supply of food, entertainment and carbon they get to have hookers and blow.

  11. futuresmc


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    11   8:28pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    bmwman91 says

    IF it ever comes to that, you are correct. The masses will murder landlords and bank tellers, not the psychopathic miscreants that are truly responsible for all of the misery. It's a big IF that things will get to that point though. It does look like we are headed in that direction, but we don't seem to be going very fast and it is only on the horizon. Hopefully we don't get there, or somehow hit a situation where people turn their ire on those actually responsible for this mess and use the ballot box to do something about it. Hey, we can dream, right?

    Agreed. However, there is a new flaw in the system that has never been there before, namely that so much of our economy is digital. While this may appear to benefit the parasites that control the game, all you need is a handful of skilled anarchists or patriots and the losses to the elites loose their ability to be calculated. The bank tellers and landlords will be the ones the media will try to pin it all on though.

  12. marco


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    12   4:03am Wed 26 Dec 2012   Share   Quote   Permalink   Like (5)   Dislike  

    Well ... several days ago I got 2 notices in the mail. (Which would you believe?)

    1. Notice from the Federal Gov. that social security will increase 1.7% (inflation adj.)

    2. Notice from local electric utility that rates will increase 14%.

    Would you believe the Ministry Of Truth and Central Planning (1.7%) ?

    Or the check you now write every 30 days (14%) ?

  13. uomo_senza_nome


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    13   6:07am Wed 26 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    Think of what is Peter Schiff trying to sell. He's got most of his assets in gold, silver and mining stocks. Mining Stocks - have you been looking at how they've been doing lately? Of course he has got to pump it up and he's doing the best he can.

    While I agree that the Fed is playing a high risk game, I do think they're not foolish to totally wreck the ship. The banking system depends on the dollar and why would the Fed destroy itself in the process?

  14. mmmarvel


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    14   7:14am Wed 26 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    bmwman91 says

    The masses will murder landlords and bank tellers, not the psychopathic miscreants that are truly responsible for all of the misery. It's a big IF that things will get to that point though. It does look like we are headed in that direction, but we don't seem to be going very fast and it is only on the horizon.

    I know I'll get hated for this but ... saw the movie Dark Knight Rises over the holiday. Couldn't help but feel like I was watching a exagerated version of what I'm seeing in my country. In the movie, the rich were scorned and punished, criminals were set loose, lies were told that the public ate up, just to get the public behind them - wow, did I ever see similarities.

  15. The Professor


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    15   7:18am Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected  

    uomo_senza_nome says

    The banking system depends on the dollar and why would the Fed destroy itself in the process?

    That is the 14 trillion dollar question.

  16. woppa


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    16   8:12am Wed 26 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    bmwman91 says

    The Professor says

    The losers don't have enough sense to hate the game. They will hate the player.

    IF it ever comes to that, you are correct. The masses will murder landlords and bank tellers, not the psychopathic miscreants that are truly responsible for all of the misery. It's a big IF that things will get to that point though. It does look like we are headed in that direction, but we don't seem to be going very fast and it is only on the horizon. Hopefully we don't get there, or somehow hit a situation where people turn their ire on those actually responsible for this mess and use the ballot box to do something about it. Hey, we can dream, right?

    The only means of voting we truly have is to vote with our wallets. Ballots are useless when you have a choice between a douche and a turd. The corporations who control every choice you make from the food you eat to the fossil fueled cars you drive to the mind numbing sports we watch on TV. Vote with your wallet is the only hope for change and I am afraid the masses are entirely too content with their pathetic little lives. Planets being used as a dumpster so corporations can pillage the average joe? I don't care, I have my Monday night football and my gas guzzling SUV, all my little tech gadgets that are made obsolete faster than I'm able to get any use out of them.

  17. Meccos


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    17   8:19am Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    Keynes said:

    "By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some …. Those to whom the system brings windfalls …. become “profiteers” who are the object of the hatred …"

    Sorry Roberto, Iwog, and your ilk. You are being set up as the fall guys, the ones to blame when the house of cards come falling down. As rents go up and wages stagnate or fall the masses get out the pitchforks and look for someone to blame. The landlord is the obvious target.

    I kinda like you guys. I see you as honest people that are able to game the system by the rules. The losers don't have enough sense to hate the game. They will hate the player.

    Finally making some sense. However you do realize your comment here directly contradicts what you have been saying before about blaming and accusing "the rich" as exploiters.

  18. The Professor


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    18   8:23am Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected  

    Meccos says

    Finally making some sense. However you do realize your comment here directly contradicts what you have been saying before about blaming and accusing "the rich" as exploiters.

    Uber-rich

  19. The Professor


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    19   8:25am Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected  

    The oligarchy allow some to rise to richness. They make the rules so confusing that everyone breaks them sometimes. They then have convenient scapegoats on tap for when they need someone to blame.

  20. Call it Crazy


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    20   8:38am Wed 26 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    mmmarvel says

    Couldn't help but feel like I was watching a exagerated version of what I'm seeing in my country. In the movie, the rich were scorned and punished, criminals were set loose, lies were told that the public ate up, just to get the public behind them - wow, did I ever see similarities.

    In the past, Hollywood had to really work to come up with a good story line..... now they just have to walk down the street to get a story line...

  21. Call it Crazy


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    21   8:39am Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    That is the 14 trillion dollar question.

    I thought it was up to the 16 trillion dollar question?

  22. taxee


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    22   8:52am Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Call it Crazy says

    In the past, Hollywood had to really work to come up with a good story line..... now they just have to walk down the street to get a story line...

  23. Kevin


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    23   4:07pm Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    mmmarvel says

    bmwman91 says

    The masses will murder landlords and bank tellers, not the psychopathic miscreants that are truly responsible for all of the misery. It's a big IF that things will get to that point though. It does look like we are headed in that direction, but we don't seem to be going very fast and it is only on the horizon.

    I know I'll get hated for this but ... saw the movie Dark Knight Rises over the holiday. Couldn't help but feel like I was watching a exagerated version of what I'm seeing in my country. In the movie, the rich were scorned and punished, criminals were set loose, lies were told that the public ate up, just to get the public behind them - wow, did I ever see similarities.

    Did you see a completely different movie?

    The public was definitely NOT supportive of the bad guy. The rich weren't being scorned, they were just being used to cause chaos

    Im sure you could make any movie seem to fit your bizarro worldview though.

  24. lostand confused


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    24   6:22pm Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Well, the debt ceiling will be reached on Dec 31st. Timmy boy says that he can string us along for two more months without raising the ceiling.

    You think our elected critters will take us past those two months??

  25. Kevin


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    25   6:31pm Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    They'll take us to the last possible second.

    Remember, the debt ceiling is about politics, not finances. It's a device that exists solely so that conservatives can pretend to be limiting the size of government.

  26. iwog


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    26   10:39pm Wed 26 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected  

    mmmarvel says

    I know I'll get hated for this but ... saw the movie Dark Knight Rises over the holiday. Couldn't help but feel like I was watching a exagerated version of what I'm seeing in my country. In the movie, the rich were scorned and punished, criminals were set loose, lies were told that the public ate up, just to get the public behind them - wow, did I ever see similarities.

    Like this country eh? You think the rich are punished with people like Romney paying a lower tax rate than my secretary?

    Speaking of lies the public eats up, explain exactly how YOU think the rich are being punished? How are they scorned? The only criminals I see let loose are millionaires on Wall Street and corporate raiders serving on corporate boards.

    Here's what I think. Fox has created a fiction, you bought it, and now you view everything through bullshit glasses.

    Gotta love a person who claims parallels without listing any parallels. Life in the alternate universe continues.

  27. Jeremy McMillan


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    27   8:15am Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    uomo_senza_nome says

    Think of what is Peter Schiff trying to sell. He's got most of his assets in gold, silver and mining stocks. Mining Stocks - have you been looking at how they've been doing lately? Of course he has got to pump it up and he's doing the best he can.

    While I agree that the Fed is playing a high risk game, I do think they're not foolish to totally wreck the ship. The banking system depends on the dollar and why would the Fed destroy itself in the process?

    I would go further and draw attention to the giant poker game. No matter what the Fed has done so far with QE, the inflationary effects have not dampened demand for US Treasuries. Today, you will find that even blue-chip stocks are trying to be like US Treasuries, courting investors with dividends to make them comparable to fixed income investments. Any other foreign/sovereign debt you can find today will make US Treasuries look great.

    On the economic fundamentals, be totally honest. Everyone is risk averse. This is an environment of DEFLATION (caused by the protracted collapse of the housing bubble). What's the opposite of deflation? Inflation! The Fed isn't as concerned about whether or how they create winners or losers. Despite the jabbering about the return to Keynesian economics, the Fed is very much about the Reaganomics game of creating wealth through private debt in which big borrowers and lenders have structural advantages. They want you and I to bet big! Every dollar sunk into US Treasuries is a dollar not risked in the marketplace.

    Long story short: Bernanke has a lot of wiggle room to sell inflation.

    mmmarvel says

    bmwman91 says

    The masses will murder landlords and bank tellers, not the psychopathic miscreants that are truly responsible for all of the misery. It's a big IF that things will get to that point though. It does look like we are headed in that direction, but we don't seem to be going very fast and it is only on the horizon.

    I know I'll get hated for this but ... saw the movie Dark Knight Rises over the holiday. Couldn't help but feel like I was watching a exagerated version of what I'm seeing in my country. In the movie, the rich were scorned and punished, criminals were set loose, lies were told that the public ate up, just to get the public behind them - wow, did I ever see similarities.

    Even the wealthy hate each other! If they did not, they would trust each other to manage each other's money and buy each other's common stock. That movie sounds like the rich eating the rich, and the knock on effects of letting them run the economy into the ground. I guess maybe you can see what you want to if you try hard enough...

  28. fedwatcher


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    28   9:34pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    There is nothing special about what the Fed is doing to the U.S. Dollar. All central banks are involved with "Currency Wars" and the U.S. Fed is loosing in that the dollar fails to fall fast enough for their efforts. Other currencies are falling faster, as their central banks are also "debasing".

    The recent rise of the Euro is technical due to a change in banking regulations requiring European banks to hold more Euros rather than other currencies.

  29. Kevin


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    29   10:36pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    fedwatcher says

    There is nothing special about what the Fed is doing to the U.S. Dollar. All central banks are involved with "Currency Wars" and the U.S. Fed is loosing in that the dollar fails to fall fast enough for their efforts. Other currencies are falling faster, as their central banks are also "debasing".

    The recent rise of the Euro is technical due to a change in banking regulations requiring European banks to hold more Euros rather than other currencies.

    It's absolutely possible for all of the world's fiat currencies to devalue simultaneously. The only advantage to having yours devalue faster than the next guy's is a trade balance advantage. For elimination of debt, it doesn't matter.

  30. ELC


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    30   3:41am Fri 28 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    The Professor says

    I kinda like you guys. I see you as honest people that are able to game the system by the rules. The losers don't have enough sense to hate the game. They will hate the player.

    IMO they deserve the pitchfork. Buying forclosures and short sales is dealing in tainted mechandise and being a part of the bank's army even if in reality you are just one of their fall guys. If you're a sensitive person just stand quietly in a vacant foreclosure. You can feel the hell the previous owner's family went through. It's like being in a haunted house or a house where there was a murder.

    You're not helping sellers. You're a vulture. You're a bottom feeder licking the sweat off the balls of America.

  31. Zakrajshek


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    31   12:36pm Fri 28 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    If a loaf of bread costs $4000, say a months income, no one will go to work. At $4000 per loaf, people would be better off just tending their own garden all day. But I don't think the masters will ever let this happen as they can only live off the real work being done. They must keep the workers working.

  32. Kevin


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    32   1:52pm Fri 28 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    Bread will never cost $4000 without massive wage inflation. There is zero risk of this happening in your lifetime.

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