QE…D: Why Printing Money will end badly for the US

You may have heard the news, the European Central Bank has started up the printing press. They are soon to print upwards of €60 Billion a month. The crowds of economic pundits have collectively cheered. Ireland stands to enjoy significant near term benefits, but at what cost?

They speak of lower government borrowing costs for new debt, by lowering funding costs and thus the hurdle that projects must meet to become viable. They believe our exchange rate will fall and our goods will be come cheaper abroad. US products and services will be flying off the shelves, etc. Well, it is an absolute nonsense. Yes there will be short term benefits. Any time you give a liquidity jolt you temporarily relieve pressure. But the longer term risks are far, far greater, now that the act of QE has been taken. Essentially the technocrats have short circuited the capitalist system which continuously prices risk based on perceived repayment risks and cost of funds. This is a road to ruin as returns become obscured by official and politically motivated credit flows.

They will argue that deflation is a threat and must be tackled early before it takes hold. This is a smoke screen. The deflation we are experiencing is spotty and multi faceted and is primarily being driven by lower oil prices which are a global phenomena, not a purely European one. Secondly oil prices have already begun to stabilize and if anything are likely to drift higher from here. Don’t get me wrong deflation is a very dangerous condition and can lead to a vicious negative feedback vortex to a state of depression. But we are no where near that level of risk or type of deflation.

The thing is it is being sold as a low risk, one way bet. Worryingly, there has been no talk of the actual cost or the ramifications of this new measure.

So who pays? Someone has to, you can not just create money out of thin air. The answer is “we do, you and I”, in the form of a devalued: currency, diminished savings and devaluing pensions.

The ECB was always going to to launch Quantitative Easing whether it wanted to our not. Once the Fed, BOJ, BOE launched their programs in 2008 it was only a matter of time. We are in a era of global competitive currency devaluation were desperate governments must devalue currencies in order to spur domestic growth by improving the value of exports.

The problem with QE or money printing is it is a like a Pandora’s box. Once it is opened it can never be put away again. There will, now, always be an easy way out of every economic issue. All interested parties will now be able to eye this short term financing tool as away of solving short term issues. The Euro will likely morph into the Lira over time.

QE is not actually the creation of money, not in real terms. What it is is the reallocation of the monetary pool from those that have a share to those that do not. All they have done is to devalue the Euro’s held by duplicating and allocating the new Euros to central banks. The Central Banks will in turn buy junk assets off commercial banks and government bonds all in return for cash.

The hope is that the banks will lend the new cash to businesses who will employ people and in doing so add productivity and value to the economy, increasing bank earnings and taxes and wealth.

But the banks will not do that. They will hold the money….

In short what we are seeing is the wholesale capture of the monetary system by special interests and the mass confiscation of wealth from pensioners and savers to governments and government proxies. I fear that we have just passed a monetary Rubicon that may eventually undermine the very basic social contract of our capitalist system: work hard and you will prosper.

It will take time for the effects of this to be felt but the gates have been well and truly opened and from now on we are only as strong as our weakest political masters at their weakest moment. Those actors will surely plunder this monetary tool….

By Admin – GoldCore.com –

The New York Federal Reserve Has Signaled the End of the Dollar Is Near

Ultimately, this article is written for individuals who are naive enough to believe that 2015 will look and feel like 2014. The banksters have positioned world events, both militarily and economically, to make 2015 a pivotal year in world history.

Goldman Sachs Leads the Charge to Armageddon

Twenty one months ago, in response to the undeniable Goldman Sachs chicanery with regard to the manipulation of the gold market, I wrote the following:

“However, the best predictor of the coming crash will coincide with the globalists cornering the majority of the gold market on this planet. After the globalists gain control of the gold, then we will witness a countdown to economic Armageddon in which all currencies will hyper-inflate prior to collapsing. Then humanity will be at the mercy of people who have no sense of decency and respect for life“.

I maintain that the international banking cabal, as represented by the actions of Goldman Sachs and the New York Fed, have gained control of the lion’s share of gold supply, thus rendering their dependence on hard currency (i.e. the Petrodollar and the Euro) to be irrelevant. Meanwhile, the rest of the planet is dependent on highly volatile fiat paper currencies.

If you understand the events related to these statements, along with their consequences, then you have already divested yourself from nearly all paper currencies and the Ponzi scheme driven stock market. To the fully awake and aware person, a bank is merely a landmark that you pass on your way to your final destination. If the catastrophic significance of these statements is not readily apparent, then please read on, the meaning will become crystal clear.

The Measure of Wealth Is Relative.

Before one can grasp what is happening to their collective wealth in this country, one must come to understand that all wealth is relative to what others own and control. For example, if everyone in the United States owns a dollar, then nobody is rich and nobody is poor. However, if you own a dollar and you can cause the dollar of your fellow Americans to significantly decline in value while your dollar maintains it value, then you control the Presidency, the Congress and are also the new owners of the Federal Reserve and its subsidiary financial organizations such as Goldman Sachs. In other words, wealth is relative. Wealth is not only built by acquiring assets, but relative wealth is also established by driving down the value of wealth of one’s competitors. These two strategies are simultaneously being employed by the banksters….

When the controllers of all central banks, the Bank of International Settlements, introduced credit swap derivatives into the futures market, the central banksters gobbled up this Ponzi scheme like an addict on crack cocaine. However, as the derivatives scheme failed, the resulting debt ($1.5 quadrillion dollars) was greater than the sum value of the entire planet ($80 trillion dollars). The bankers successfully transferred the debt to national governments in which the debt would be paid down with national fiat currencies. Since the central banksters know the fate of these currencies they have escaped to gold and real estate, thus leaving you and me holding the bag with our soon-to-be worthless petrodollars.

Conclusion

Are the American people helpless spectators in their planned economic demise? For most Americans that is true. The FDIC only has about 1.5% of the cash needed to insure the entire nation’s banks. The banks, if we are lucky only have about 10% of the cash that they claim they have on deposit (i.e. fractional reserve banking). Therefore, Americans could theoretically only gain access to about 10% of their money in the bank. However, no American will be compensated for the loss of their bank accounts and retirement funds. Remember the G20 resolution which stated that derivatives debt is first in line to be paid down in the event of a banking collapse. This means that American citizens will get nothing.

To the few that will heed these warnings and are subsequently motivated to act to soften the crash, there are some things that can be done by a very limited number of people if they act very quickly. This will be the subject of tomorrow’s article. Have a safe New Year.

By Dave Hodges – The Common Sense Show –

Jesus and Power Politics

By Caleb Eaton – HigherLiberty.com –

This scene portraying Jesus like a drunken, hippie, wild man has been reinforced by popular media. But suppose that interpretation is as ridiculous and as unenlightened as most other things in the mainstream media. If mainstream media promotes this view of Jesus, isn’t that the first clue that something smells funny? But how would they know any better since the same picture is promoted in government-licensed churches?

There’s a way of looking at this passage that makes much more sense…and makes Jesus a much more impressive character…

…a picture of high-powered politics emerges. Jesus was the newly recognized king of Judea which was one of the world’s richest nations that included a major port city and was the pivot point of many trade routes. Just as a new US president fires the judges of the previous president, it was Jesus’ responsibility to replace government employees with those he trusted.

The new king was turning over the banking system (Federal Reserve) and “tax collection” duties to people he trusted. In fact, he was re-instituting a style of government based on freewill offerings as Abraham and Moses originally setup for Israel. But the pharisees had become rich off the FORCED contributions of the people (taxes), hence they conspired to kill the new king that was upsetting their cushy lifestyle.

Ask JFK if politics has changed much in 2000 years.

 
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Five Lessons Learned From The Scottish Referendum

By Ryan McMaken – A Nation Beguiled –

Government authorities in the UK have declared that the “Yes” campaign for secession has failed by a margin of approximately 55 percent to 45 percent. Yet, even without a majority vote for secession, the campaign for separation from the United Kingdom has already provided numerous insights into the future of secession movements and those who defend the status quo.

Lesson 1: Global Elites Greatly Fear Secession and Decentralization

Global elite institutions and individuals including Goldman Sachs, Alan Greenspan, David Cameron and several major banks pulled out all the stops to sow fear about independence as much as possible. Global bankers vowed to punish Scotland, declaring they would move out of Scotland if independence were declared.

According to one report:

A Deutsche Bank report compared it to the decision to return to the gold standard in the 1920s, and said it might spark a rerun of the Great Depression, at least north of the border.

 
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