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 –

IMF Now Ready To Slam The Door On The U.S. And The Dollar

As I write this, the news is saturated with stories of a hostage situation possibly involving Islamic militants in Sydney, Australia. Like many, I am concerned about the shockwave such an event will create through our sociopolitical structures. However, while most of the world will be distracted by the outcome of this crisis (for good or bad) for at least the week, I find I must concern myself with a far more important and dangerous situation.

Up to 40 people may be held by a supposed extremist in Sydney, but the entire world is currently being held hostage economically by international banks. This is the crisis no one in the mainstream is talking about, so alternative analysts must.

As I predicted last month in “We Have Just Witnessed The Last Gasp Of The Global Economy,” severe volatility is now returning to global markets after the pre-game 10 percent drop in equities in October hinted at what was to come.

We expected such destabilization after the wrap-up of the Fed taper, and the markets have not disappointed so far. My position has always been that the taper of QE3 made very little sense in terms of maintaining the manipulated illusion of economic health — unless, of course, the Federal Reserve was implementing the taper in preparation for a renewed financial catastrophe. That is to say, the central bankers have established the lie of American fiscal recovery and then separated themselves from blame for the implosion they KNOW is coming. If the markets were to collapse while stimulus is officially active, the tragedy would be forever a millstone on the necks of the banksters. And we can’t have that now, can we?

This is not to say that individual central banks and even currencies are not expendable in the grand scheme of things. In fact, the long-term goal of globalists has been to consolidate all currency systems and central banks under the outward control of the International Monetary Fund and the Bank Of International Settlements, as I outlined in “The Economic Endgame Explained.”

That particular article was only a summary of a dangerous trend I have been concerned about for years; namely the strategy by international financiers to create a dollar-collapse scenario that will be blamed on prepositioned scapegoats. I have no idea what form these scapegoats will take – there are simply too many possible triggers for fiscal calamity. What I do know, though, is the goal of the endgame: to remove the dollar’s world reserve status and to pressure the American people into conforming or even begging for centralized administration of our economy by the IMF.

The delusion perpetuated in the mainstream is that the IMF is a U.S.-dominated institution. I have outlined on many occasions why this is false. The IMF like all central banks is dominated by the international corporate banking cartel. Central banks are merely front organizations for globalists, and I am often reminded of the following quote from elitist insider Carroll Quigley when I hear people suggest that central banks are somehow independent from one another or that the Federal Reserve is itself the singular “source” of the world’s economic ills:

It must not be felt that these heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down.

The substantive financial powers of the world were in the hands of these investment bankers (also called “international” or “merchant” bankers) who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful and more secret than that of their agents in the central banks.

No one can now argue against this reality after we have witnessed hard evidence of Goldman Sachs dictating Federal Reserve policy, as outlined here.

And, most recently, we now know that international bankers control political legislation as well, as Congress passed with little resistance a bill that negates the Frank-Dodd restrictions on derivatives and places the U.S. taxpayers and account holders on the hook for more than $303 trillion in toxic debt instruments. The bill is, for all intents and purposes, a “bail-in” measure in disguise. And it was pushed through with the direct influence of JPMorgan Chase CEO Jamie Dimon….

By Brandon Smith – Alt-Market.com –