FED: U.S. Dollar COLLAPSE!!

What we need is a barter based resource economy. That and a lot of friends who have an apatite for peace and love cause me so horny!

reply to post by skyshow


Actually it's not merely the use of fiat currency by itself that's the problem...But when coupled with a private banking institution being given the power to manipulate interest rates (ie: usury) is when it gets bad. For fiat money to work at all (without the inherent problems we see today), the currency must be tied with some tangible asset that never changes in perceived value. In short, no usury & a stable asset must be combined for a "money" system to work.

Also, another problem is that the Fed Res has a complete monopoly on the currency in circulation. It's the only "legal tender" allowed, so that makes it very easy to manipulate. Re-introducing "barter" back into the system will kill that monopoly.

reply to post by mybigunit


i read a book written in 1958. the man had a vision of the future of the usa. he said he's not a prophet, but stlil had this vision. go figure. anyway, he said that he saw everythign lose its value except real estate. that real estate would be the only thing that maintained its value because its real. i dunno what that means, but just thought i'd tell you what he said. he also said this devaluing of money and gold/silver, would be a precursor to the usa becoming a third world nation.

[edit on 26-10-2008 by undo]

Originally posted by ignorant_ape
reply to post by Mdv2

 

typical gold trader scare mongering - what makes me chuckle is the adds at the bottom - all prices in USD , right - if gold is so good and dallars so " bad " why are gold traders so earger to convert thier gold into your dollars

think about that

Yeah, and if the dollar is in such bad shape why are the Pirates in Somalias waters always demanding their ransoms in Dollars? Why is Al Qaeda known to use dollars to finance their operations? Do they know what is happening?

In a recent thread some guy on YouTube along with Ron Paul insisted that gold was the way to go and gold has fallen nearly $200 an ounce since then. As it is Gold is at $733/ounce and it seems that the only reason its that high is because of the sell-off in stocks from late last week. What happens when investors return to equity in the coming days and weeks and gold slips below $700 or below $600?

Why are many investors in the world selling their own currencies to buy dollars? Why has the dollar strengthened against most currencies, except Yen, over the last few months? Why was it written in a Chinese newspaper that the US is using the dollar to "plunder" the wealth of the world?

Something fishy is going on out there. Why are all the players in the world thinking and doing the opposite of what your charts and graphs are saying they should be doing?

reply to post by Hot_Wings

anyone read naomi kleins "shock doctrine"? sounds strangely similiar.

Originally posted by mybigunit

It does make me sick. What scares me even more is if I go and buy all sorts of silver and gold which I am strongly considering and then the governments flood the market with it to get money killing the price of gold and silver. Im at a standstill Im not sure where the hell to put my money.

Right now we're between a rock and a hard place. Several gold vendors now have extended waiting periods. Some measured in months. I've got a little money locked up in one of these gold queues. If the economy get's hosed before they release the gold, I'm pretty sure I'll be royally screwed.

If you decide to buy gold, make sure you have a committed delivery date in writing from a known good dealer.









[edit on 10/26/2008 by anonymousATS]

What devalues a currency is the import of any goods. Lot's of import mean's your money isn't value-based and those gambling money.

Only Value-based economist were very able to predict the collapse in detail. Mean's "every" other economist living in and thinking a dreamland.

The problem is that our ...

currencies of the world were converted to gambling chips in the greatest gambling casino.

SIR JOSIAH STAMP, (President of the Bank of England in the 1920's, the second richest man in Britain)
"Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits."

When..

President Richard Nixon decoupled the U.S. dollar from gold in 1971 and made it a free floating currency

..the power was given to bankers again.

What we need is a market based on fixed exchange rates, a "new Bretton Woods". National production is what makes a country working. Good loans, happy people = freedom.

In year 2008:
Brown calls for new "Bretton Woods" meeting
European leaders call for ‘a new Bretton Woods'

In the year 1999:
New Bretton Woods

On the one side, you have the forces of national economy: These are entrepreneurs, the people who actually produce; these are workmen; these are normal people; these are professionals, the people whose interest is in scientific and technological progress for the betterment of life and for national security. These are the people who rally to save the nation and to build it. That's their interest: They want to make things better; they want to increase productivity, to address problems. We call these the social forces of national economy.
If we had to deal only with the social forces of national economy, we would never have a business cycle. The business cycle arises very simply, because we have a parasite on our backs.
The parasite is the financier oligarchy, which exists today as a clone of ancient Venice, which sits on top, which controls our central banking systems, controls our private financial institutions, and exerts great and corrupting power, which it then uses to extract usury from the real economy. And, as these people become richer, during a period of prosperity, the rate at which they suck blood from the economy increases. At a certain point, the amount of rent, and interest, and other charges, financial charges on the economy, becomes very large. And therefore, the flow of wealth from production does not flow back into society or into production, but instead flows into the assets of these financier oligarchy interests, who are much too wealthy for their own mental and moral health, who can be seen, with their degenerate practices, and so forth, displaying them in public. They try to act like Hollywood actors and actresses, or something, or some similar kind of degenerate. And therefore, we have a crisis.

I understood the problematic back in the year 1998 or 1999 and I fixed my live to another 10 year before turning in to slave to a none-progress workman. I was 16 year's old back then being out and enjoying the nature with friends smoking weed and think about the world. I'm now 26 years old. This year I will finish as a trainee (second) as a salesman in a office. And all that is left is, i know the enjoyable life-cycle is over.

greets
aworkman

From the way I understand the fractional reserve system. The money supply depends on the circulation of currency. The faster the money circulates, the larger the money supply. Money circulates by banks loaning out money.

The story works like this. Someone deposits $10.00 into the bank. The bank must keep $1.00 in reserves, and then loans out $9.00. The person who borrowed the money spends it, and the store where the goods were purchased deposits the money in a bank. This next bank loans out 90% of the $9.00 deposit, $8.10, keeping $.90 in reserves, and the process repeats. Potentially, this enables this allows our money system to turn $10.00 into $99.00, depending on how fast the money supply circulates. Ussually, from what I understand, this means that the typical $10.00 deposit is turned into around $70.00 by the fractional reserve system on which our money supply is based.

The thing is, that in order for banks to loan money, the banks must have the 10% reserve funds in order to remain solvent. The real estate bubble has created a situation where the money loaned out isn't going to be paid back. People can't make their mortgage payments, home prices fall, that money is lost, it disappears, and takes a big chunk out of the banks reserves. Without reserves, the ability of banks to loan money is greatly decreased, thus the money supply begins to collapse, deflation, the biggest fear of the banks, fed reserve, and rich people in general. In short, people can't pay loans, banks can't loan money, money system collapses.

That chart that shows that Non borrowed RESERVES of depository institutions has dropped to around NEGATIVE $200B means that not only do these institutions have no money to loan out, they have no money to even give back 10% of the the deposits. Even if the Fed covers the deposits for the people with money in the bank, under max coverage amount, the banks will still be bankrupt, owing Billions. All those people who the banks owe billions to, will then be in the same problem.

The fed reserve can print vast amounts of money to try and fix the problem, or just allow the banks to change the numbers on their ledgers backed by the name of the fed reserve, but that will only lead to massive inflation. Unless wages keep up with inflation, everyone will still be broke. If the cost of goods increases 1000%, but wages and salaries do not, no one will be able to buy anything, the market system still will not work. Once again, the monetary system deflates.

Who loses when the monetary system collapses? The people with the most money. They don't want this to happen in the worse kind of way. This is why economies with large gaps between the rich and the poor do not work. In the areas of the world where only the elites have weapons, the elites remain in charge. In areas where the population is well armed, the people retain their independence.

Originally posted by bruxfain

Yeah, and if the dollar is in such bad shape why are the Pirates in Somalias waters always demanding their ransoms in Dollars? Why is Al Qaeda known to use dollars to finance their operations? Do they know what is happening?

They may have an easy way to dispose of (laundering) dollars. I would guess that many underground groups have close working ties to the financial system. Even so, I'd bet that the dollar is on the way out.

In a recent thread some guy on YouTube along with Ron Paul insisted that gold was the way to go and gold has fallen nearly $200 an ounce since then. As it is Gold is at $733/ounce and it seems that the only reason its that high is because of the sell-off in stocks from late last week. What happens when investors return to equity in the coming days and weeks and gold slips below $700 or below $600?

If I had 100K to spare right now, all of it would go into physical gold -- provided I could find a known seller with a firm delivery date. The US government is inflating the money supply by leaps and bounds. It's only a matter of time until inflation (most likely hyperflation) kicks in.

I've got the nagging feeling that our country is already destroyed, we just don't know it. I hope I'm wrong but I don't think so.

Why are many investors in the world selling their own currencies to buy dollars? Why has the dollar strengthened against most currencies, except Yen, over the last few months? Why was it written in a Chinese newspaper that the US is using the dollar to "plunder" the wealth of the world?

Something fishy is going on out there. Why are all the players in the world thinking and doing the opposite of what your charts and graphs are saying they should be doing?

I think investors are playing the normal financial game by running to dollars. They are just following "normal" indicators. Most investors don't yet understand that previous (normal) models will no longer yield predictive info because our system has bottomed out.

In my view, the government is intentionally crashing our system.

reply to post by poet1b


i agree with you, poet...except on the point of the wealthy NOT wanting this. when a recession or depression occurs, the majority of the wealthy are ALREADY out of the market sitting on cash. when regular people start losing their jobs and their livelyhoods, they tend to sell the meager assets they have built up. this "selling" creates panic and drives down the value recieved from this "selling". the wealthy step in and now buy the hard assets at a steep discount. when indications conclude that the majority of people are "hanging by a fingernail", measures are installed to slowly un-freeze capital expenditures, thus, hiring begins, businesses expand from more money circulation, and the people are just grateful to have a job, even though they may have lost a considerable amount of hard assets due to their previous selloffs.
this benefits the wealthy 2 ways...they now have a scared, but compliant workforce...and they have been able to "buy" vast amounts of hard assets at rock bottom prices

reply to post by jimmyx


Look at the way things played out after the last great depression. There was a huge leveling of wealth distribution. The robber barrons of the twenties lost most of their power. The wealthy can't pull their money out of the system fast enough, because when they attempt to pull out their vast sums, it only increases the rate at which the system collapses. Most of these fortunes only exist in the markets, they can not be extracted from the markets. When the markets fall, they fall with them. Everything around them collapses. They all go down together.

Financial empires, like all empires, take huge amounts of currency/money to continue to operate. When that money dries up, those empires collapse. If you own large amounts of property, you have to pay tax on that property. Refuse to pay the taxes and you have to hire lawyers or mercenaries, to protect your property, and both are extremely expensive. Thus the property is auctioned off to those capable of working the property and creating some kind of revenue off of the property. If you can't afford to keep the squattors chased off of your land, then you can't control that land.

What is the running total of injections of liquidity and auctions the Fed quietly went on a spree with over the last year giving banks almost weekly to prop them up ? is it possible that since the Fed depleted its own budget, they attempted to pass on this power by proxy with the bailout and double down their monetary power by setting up Paulson to seize similiar power under a government agency?

Originally posted by mybigunit
reply to post by anachryon

 

It does make me sick. What scares me even more is if I go and buy all sorts of silver and gold which I am strongly considering and then the governments flood the market with it to get money killing the price of gold and silver. Im at a standstill Im not sure where the hell to put my money.

Gold and Silver you can't eat, but a piece of land with woods and water on it is always a smart choice.

Sooo...I guess now would probably be a good time to roll over any stocks anyone has into CD's?(cash deposits) So you don't loose anymore money?
I know that's probably what I would be doing right about now so you don't completely loose everything.

Originally posted by poet1b
reply to post by jimmyx

 

Look at the way things played out after the last great depression. There was a huge leveling of wealth distribution. The robber barrons of the twenties lost most of their power. The wealthy can't pull their money out of the system fast enough, because when they attempt to pull out their vast sums, it only increases the rate at which the system collapses. Most of these fortunes only exist in the markets, they can not be extracted from the markets. When the markets fall, they fall with them. Everything around them collapses. They all go down together.

Financial empires, like all empires, take huge amounts of currency/money to continue to operate. When that money dries up, those empires collapse. If you own large amounts of property, you have to pay tax on that property. Refuse to pay the taxes and you have to hire lawyers or mercenaries, to protect your property, and both are extremely expensive. Thus the property is auctioned off to those capable of working the property and creating some kind of revenue off of the property. If you can't afford to keep the squattors chased off of your land, then you can't control that land.

before the great depression, many of the wealthy got out...john pierpoint morgan comes to mind...but vanderbilts didn't get the message, so indeed they lost their fortune.this is a "gotcha" game played out on a much grander scale of the wealthy. do you think the rothchild clan is going bust? not a chance...they may lose a few billion, but i'm sure they have billions in assets tucked away.

As America goes under, scientists, engineers and the labor force will be cheaper to hire. Oh, yes. The Elites want this.

Sorry if it's been posted:

en.wikipedia.org...

Biflation is the state of an economy where the processes of inflation and deflation occur simultaneously. During this period there is a rise in the purchasing prices of commodity items and a fall in the purchasing prices of non-commodity items.

The purchasing price of an item is based on the demand for it and the amount of money in circulation to pay for it.

Biflation is preceded by an overabundance of money placed in circulation within the population by a central bank. Since commodities (such as food, energy,clothing) are essential and are in high demand, the purchase price for them rises due to the increased money available to buy them. This increasing purchase amount is Price Inflation.

One reason is liquidity flees to the safest and most liquid assets. This causes the money supply at upper levels of the pyramid to shrink while the money supply at lower levels of the pyramid expands. This causes deflation as the money supply evaporates away.

Likewise, Biflation is preceded by a decrease in employment within the population. Although there is an increase of money in circulation, fewer people have access to the money to make purchases. As a result, a greater percentage of individual wages is directed toward purchasing commodities and less is utilized for purchasing non-commodity items. Since debt-based assets (such as automobiles, televisions, stocks) are less essential and are in lower demand, the purchase price for them falls due to the decreased money available to buy them. This decreased purchase amount is Price Deflation.

reply to post by kosmicjack


Biflation sounds good then...

reply to post by MOFreemason


Sure if you want big screen T.V.'s - not if you want to feed and clothe your family.