The Fake Reserve Bank and its little sister, the US Treasury have issued, promised, loaned, guaranteed Trillions of dollars. The Fake is now openly "monetizing the debt" by buying Trillions of dollars of Treasury notes and bonds with money it creates out of thin air!
China recently, and before the latese monetization by the Fake said it was starting to worry about buying more Tresuries because the joint was being flooded with them. If China stops buying our debt or god forbid starts selling the more than $1 Trillion it already owns, the wheels will come off the US economy.
In fact, the only way China and anyone in fact that buys Treasuries can ever get paid is if new people buy More treasuries. Bernie Madoff should be released from prison immediately and made Chairman of the Fake Reserve Bank. At least then it would be obvious who we are dealing with!
Just as poor Bernie found out, a ponzi scheme is self limiting. At some point in time it is impossible to continue. At some point in time, it will be mathmatically impossible to find enough money in the world to continue the scheme.
I would like my friend Chris Martenson, a PhD who has done some remarkable research on the Fed and its control of our country, to explain why this is. Watch this video and then watch the other parts of this amazing free course. It will open your eyes and blow you away! http://tw2.us/GM
Please leave your comments, pro and con, I welcome them. I also ask you to follow me on Twitter as I delve deeper and deeper into the truth behind the European Banker cartel that actually owns and controls the USA and enslaves all of us!
http://BillYoungonTwitter.com Thank You!
Showing posts with label treasury. Show all posts
Showing posts with label treasury. Show all posts
Monday, March 23, 2009
Friday, December 5, 2008
Stag/Deflation?
This is a term coined by one my gurus, Dr Rubini, of NYU. What it describes is a nightmare scenario of a Stagnant economy caused by lack of demand. It is inherently different from its similar sounding cousin, StagFlation, which is a Stagnant economy caused by an intemperate increase in the money supply.
We are probably hip deep in StagDeflation right now. Unemployment is ballooning (533,000 lost jobs last month, November, 2008) because business is stagnant due to lack of demand. Imported cars are piling up on the docks because dealers will not accept them because no one is buying them.
High unemployment leads to less demand, which leads to more unemployment, which leads to less demand...You see the problem.
In deflation, the value of everything goes down due to lack of demand. Look at oil prices, which are poised to go below $40/barrel in the next few days. Look at gold and silver, down approx 30 and 40%, respectively in the last 6 months.
The value of the stock market has plummeted 40% this year as well.
Of course the banks and financial institutions are being battered by the drop in their capital due to the loss of value of their reserves, mainly their investments in real estate derivatives. This situation is forcing them to curtail lending which again hits demand, denying credit to businesses and individuals, depressing consumption further.
The only thing going up in this environment is the lowly dollar, since the supply i8s contracting, the very opposite of what happens in an inflation.
During this period of Stagflation and collapse of the banks and financial institutions, your best money strategy is to get out of your investments and into cash, since "things" are losing value and dollars are gaining value.
You will have a great opportunity to buy back your financial assets and real estate at the bottom of the StagDeflation cycle at pennies on the dollar!
However, with banks failing on a weekly basis and hundreds of them in danger of collapse, you want to keep your money in Treasury Only money market funds. FDIC insurance is for suckers! The fund does not begin to have anything approaching enough capital to guarantee anything like the amount of losses they are likely to face if even a fraction of the banks on the Bad list fail.
Treasury only money market funds can act as both business and personal checking accounts as well as money market funds. Your money cannot be safer. The government has Never defaulted on Treasuries, not in the Civil War, not in the First Depression, not in WW2.
Now, the answer to Deflation, is Inflation, printing money and pumping it into the economy, as the government is doing to recapitalize the banks as well as to jump start consumer spending. There is usually a lag of about a year between the growth of the money supply and the onset of inflationary prices.
As gold and silver prices will rocket upward as inflation sets in and their prices are depressed now, you will want to convert some of those Fat dollars to gold and silver now. You have about a year before their prices will start excellerating at which time the dollar will drop like a stone.
Recommendation: Sell deflating financial investments, real estate. Hoard cash, invest 20% in gold, silver: http://SilverSnowball.com/964
We are probably hip deep in StagDeflation right now. Unemployment is ballooning (533,000 lost jobs last month, November, 2008) because business is stagnant due to lack of demand. Imported cars are piling up on the docks because dealers will not accept them because no one is buying them.
High unemployment leads to less demand, which leads to more unemployment, which leads to less demand...You see the problem.
In deflation, the value of everything goes down due to lack of demand. Look at oil prices, which are poised to go below $40/barrel in the next few days. Look at gold and silver, down approx 30 and 40%, respectively in the last 6 months.
The value of the stock market has plummeted 40% this year as well.
Of course the banks and financial institutions are being battered by the drop in their capital due to the loss of value of their reserves, mainly their investments in real estate derivatives. This situation is forcing them to curtail lending which again hits demand, denying credit to businesses and individuals, depressing consumption further.
The only thing going up in this environment is the lowly dollar, since the supply i8s contracting, the very opposite of what happens in an inflation.
During this period of Stagflation and collapse of the banks and financial institutions, your best money strategy is to get out of your investments and into cash, since "things" are losing value and dollars are gaining value.
You will have a great opportunity to buy back your financial assets and real estate at the bottom of the StagDeflation cycle at pennies on the dollar!
However, with banks failing on a weekly basis and hundreds of them in danger of collapse, you want to keep your money in Treasury Only money market funds. FDIC insurance is for suckers! The fund does not begin to have anything approaching enough capital to guarantee anything like the amount of losses they are likely to face if even a fraction of the banks on the Bad list fail.
Treasury only money market funds can act as both business and personal checking accounts as well as money market funds. Your money cannot be safer. The government has Never defaulted on Treasuries, not in the Civil War, not in the First Depression, not in WW2.
Now, the answer to Deflation, is Inflation, printing money and pumping it into the economy, as the government is doing to recapitalize the banks as well as to jump start consumer spending. There is usually a lag of about a year between the growth of the money supply and the onset of inflationary prices.
As gold and silver prices will rocket upward as inflation sets in and their prices are depressed now, you will want to convert some of those Fat dollars to gold and silver now. You have about a year before their prices will start excellerating at which time the dollar will drop like a stone.
Recommendation: Sell deflating financial investments, real estate. Hoard cash, invest 20% in gold, silver: http://SilverSnowball.com/964
Subscribe to:
Posts (Atom)
Posts
