Interesting Inside Information On Dollar Devaluation

This is very interesting.

Of course, it is all unsourced so take it worth a grain of salt, but I wouldn’t doubt this scenario to be true.

George lays out a scenario for the Fed rigging the markets in order to swap US dollar holdings for foreign currency, then letting the dollar implode.

Report on the status of inflation and the economy:

www.abovetopsecret.com...

I posted here about how "amazed" everyone in the stock broker game is about how wonderful the banks 'numbers' are lately.

Who could we expect to come out on top of this?

reply to post by sbctinfantry


US government employees and US banks.

That's about it.

videos like this are pretty pointless, it's obvious the dollar is set to implode. READ ron paul, or murray rothbard, they'll give you the facts straight and simple.
they have to play political games too though, ron paul doesn't play very many but he can't be completely honest and still hold the position he does. he talks about how the fed eats away at our rights but I think he holds his tongue a bit and doesn't express how bad this really is.

This concept doesn't make any sense.

Let's say they wanted to do this, I have no idea why, but let's just play dumb and pretend.

How would it be possible to unload and flood the market with dollars successfully while maintaining enough liquidity in all other crosses to simultaneously purchase all others? There is such thing as equilibrium in markets.

But let's just say it is possible (even though it is impossible). All other currency would have large spreads and no trading going on. Basically there is no more movement in the market, everything becomes static, which means everything is worthless.

So why would they want to do this anyway?

Before it’s all said and done, the dollar will hit fresh all-time lows. However, right now, it’s getting a bear-market bounce.
The past two years have been shaky times. Government involvement has been huge. Our government hasn’t been this involved in trying to prop up our economy since the Great Depression.
I think the government loves times like these because they give it a great excuse to take positions in companies and even take over entire companies. Then the government says that “a profit was returned to taxpayers.” Really? Did you get a check in the mail? I know I didn’t!
So the government gets to take tax dollars from you and me and take positions in companies and profit from them. It’s a great gig from them.
Imagine if I got “free money” to invest in companies which allowed me to take sizable positions in companies. Then when the companies recover, I get to make a ton of profits with money that wasn’t mine to begin with. It was a free loan. Not a bad deal at all for Uncle Sam.
Therefore, it is my opinion that the government salivates in “bad times” because it is able to use it as a time to profit.
I see a major dollar downside correction during the 2nd half of the year

Then the government says that “a profit was returned to taxpayers.” Really? Did you get a check in the mail? I know I didn’t!

No we didn't get any of the profit.
But we also didn't pay the bill either. Most everyone's taxes went down.

Originally posted by Dance4Life
This concept doesn't make any sense.

Let's say they wanted to do this, I have no idea why, but let's just play dumb and pretend.

How would it be possible to unload and flood the market with dollars successfully while maintaining enough liquidity in all other crosses to simultaneously purchase all others? There is such thing as equilibrium in markets.

No one is purchasing dollars. The flood is coming from China and other large holders. The goal is to buy up everything at pennies on the dollar.

But let's just say it is possible (even though it is impossible). All other currency would have large spreads and no trading going on. Basically there is no more movement in the market, everything becomes static, which means everything is worthless.

So why would they want to do this anyway?

If you want to buy up a country, for next to nothing, you destroy the currency. As the inflation rises, you buy everything publicly traded for pennies on the dollar with a new partially gold-backed SDR (Special Drawing Right) most likely called the Bancor ( www.imf.org... ), and you now own the entire industry and financial sector of a country.

Think it can't be done? It has been done.

That is just part of the problem, sadly.

The other part of the problem also comes from the IMF. It is the "bail out" loans with inflation that will prevent them from ever being paid off. If you need examples of this, look at Haiti, or any country that has recieved one of these loans.

Even worse is that each loan comes with social adjustment clauses. Read this as austerity:

Austerity is a term from economics that describes a policy where nations reduce living standards, curtail development projects, and generally shift the revenue stream out of the physical economy, in order to satisfy the demands of creditors. Typically, private banks, or institutions like the International Monetary Fund (I.M.F.), will demand an "austerity policy" from a national government, as a condition for re-financing loans that are coming due. This might involve cutting food or fuel subsidies, underfunding public infrastructure (transport, education, health care, water and power management), or rationing. When these demands are made by the I.M.F., they are known as I.M.F. conditionalities.

www.wordiq.com...

Ironically, I searched "austerity" and this is the second definition that comes up. I am still laughing.

Did anyone upload the first vid? It's been removed.

The video has been removed and would have been interesting to see. Judging from the current state of play in the economy and unresolved issues, I would not put it past the few that are more concerned with their interests than their responsibilities. It does provide some good advice for anyone to move their wealth out of USD into another currency to help avoid the losses that will be incurred from increasing inflation. I am yet to see any signs that inflation will be settling down any time soon as more and more money enters the market.

reply to post by sbctinfantry


I'm sorry. You nor the author of this OP or video understand what liquidity really means in the marketplace.

None of this is possible, unfortunately.

the only Dollar Devaluation processes i see going on is the QE2 (quantative easing #2)
which is operating for the buying of a minimum of $600 billion of USTreasuries by the
Federal-reserve over the next 6-8 months of 2011.

a QE3 is most likely to follow the QE2+ that had to be expanded, because others are not
buying US debt paper (bonds or treasuries)
be aware that there is over $30 billion monthly being redeemed from mutual funds &/or
401k that hold US debt paper...and those funds are going into commodities instead.


as far as inflation.... while the money is being vacuumed from US debt paper/bonds...
the 18 insolvent/ overextended in derivatives 'primary dealer' banks that are in cahoots
with the likes of Paulson and Bernanke of the FED... are once again, all 3 million of
the elitists in these financial manipulator cartel of banks are amassing huge bonuses
again this year...

i guess the idea is that the elites in banking & the FED will have enough cash to ride
out the increasing inflation that will put many commoners in their personal gulags...
before going to the grave.

I watched the video last night just before turning out the lights. The currency swaps referred to by the narrator are off-market transactions conducted directly between the NY Fed and foreign central banks, similar to the unprecedented swap lines established by Bernanke back in 07/08....

and the currency swaps that are currently ongoing....

Fed Extends Swap Lines With ECB, Other Central Banks

Dec. 21 (Bloomberg) -- The Federal Reserve authorized the extension through Aug. 1 of its temporary dollar liquidity swap arrangements with the European Central Bank and the central banks of Japan, Canada, Switzerland and the United Kingdom.

The arrangements had been authorized through January, the Fed said today in a statement. Fed officials voted in May to restart the emergency currency-swap tool to keep Europe’s sovereign-debt crisis from spreading to U.S. markets. -
Continues

When dollar demand is high, and credit markets are tightening, the cost of money goes up as reflected in a rising Libor. Under these conditions, currency swaps provide emergency $USD "printing press" liquidity to foreign entities, enabling them to cover short term dollar denominated liabilities....

....without influencing USD exchange rates.

I enjoy a good conspiracy theory as much as the next guy, but as I remember it, the scenario presented in the video was not only nonsensical...but impossible.

Maybe that's why the user removed it.

i]reply to post by OBE1

You don't think the Federal Reserve is doing any thing corrupt with their actions do you? I wonder where Bernanke and his cronies are getting their bonus money from?
Sorry not getting embed to work..argghhh.

www.youtube.com...

www.youtube.com...

This is a better video.

Hey mtnshredder & Smell The Roses, here's a similar apocalyptic video, newer I think. This one is uses fear tactics to promote book sales, while those glossy inflation.us videos ultimately try to herd dollars into the National Inflation Association' "hot" stock pics