The Demise of the Dollar

Ben Bernanke 150x150 The Demise of the Dollar Back Obama TTO 003398 130x150 The Demise of the Dollar Timothy Geithner 150x150 The Demise of the Dollar

Make no mistake about it, the faces you see above will be known to future generations as the men who brought the dollar to it’s knees and the United States of America with it.

Let me be very clear, the demise of the dollar didn’t start when President Obama took office nor did it start with the financial collapse of 2008, the demise of the dollar began in 1913 with the enactment of the Federal Reserve Act and the inception of a central bank. The Federal Reserve Act was enacted in response to several financial panics in the stock market the worst of which happened in 1907.

The group of private bankers pushing the federal reserve and a central banking system stated that with the money under the control of a central banking system there would be no further panics in the financial system. Of course we all know that was a lie as there have been 19 major recessions or depressions since the Federal Reserve Act was enacted, recessions and depressions the Fed promised would never happen again. As a matter of fact the Fed itself created most of these recessions and depressions.

Curiouser still is how the Federal Reserve Act was enacted. Private bankers had been pushing a central banking system since the inception of the United States of America. Along the way some acts were instituted only to later be rescinded as many smart men such as Thomas Jefferson saw through the disguise of the central banking system.

I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs. — Thomas Jefferson, U.S. President.

Eventually powerful bankers figured out how they could get a central bank by law, all they had to do was buy themselves a President and they did just That. It can be argued that Woodrow Wilson was not bought and paid for but the evidence refutes those arguments just in the fact of the money given to Wilson by these private bankers throughout his presidential campaign and well after.

Woodrow Wilson made sure the Federal Reserve Act was brought forward and in the middle of a cold winter night in Washington D.C. when Congress was on holiday break a handful of Senators made an emergency vote on the legislation which would later be signed into law by Woodrow Wilson.

You might think President Woodrow Wilson was a supporter of the Federal Reserve Act, and you would be wrong. Here is what he had to say after leaving office:

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.- Woodrow Wilson, U.S. President

The Federal Reserve is a private bank pretending to be a government institution although many Americans believe it is a government institution. The Federal Reserve operates outside the control of Congress and only reports to Congress on it’s own whim as they are not mandated to do so. The Federal Reserve, the central bank that controls the currency of the United States,  has never been audited nor will it ever be audited.

At one time the dollar was backed by actual commodities such as gold, silver and palladium. This system of banking is known as the Bretton-Woods system, which set the exchange value for all currencies in terms of gold. In the early 1970′s the price of gold was rising devaluing the dollar which led people to sell off their dollars for gold.

Wealth in the hands of the populace is not a good thing for the Federal Reserve so the U.S. decoupled the dollar from gold and moved to a  fractional banking system. The fractional banking system is a convoluted way of saying if a bank the Federal Reserve lends money to has 1 dollar in reserve they will lend them up to 100 times that amount as they perceive the risk ratio to be low. See a problem there? How about I let the Fed describe their own system.

When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money. — Putting it simply, Boston Federal Reserve Bank

Neither paper currency nor deposits have value as commodities, intrinsically, a ‘dollar’ bill is just a piece of paper. Deposits are merely book entries. — Modern Money Mechanics Workbook,Federal Reserve Bank of Chicago, 1975

The Federal Reserve system pays the U.S. Treasury 020.60 per thousand notes –a little over 2 cents each– without regard to the face value of the note. Federal Reserve Notes, incidentally, are the only type of currency now produced for circulation. They are printed exclusively by the Treasury’s Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau’s full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in 1945. —Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system

We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system…. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon. — Robert H. Hamphill, Atlanta Federal Reserve Bank

This ladies and gentleman is the brain trust in control of your money and your country.

Now, you may be asking what this has to do with President Obama, Timothy Geitner and Benjamin Bernake? While many ignorant men have helped to get us to this point we now stand at the brink and these men have decided to push us over the cliff.

In the past 50 years America has been in serious debt and that debt has skyrocketed in the last 2 decades. Do you know how deep in debt America is? Why don’t I just show you…

Government Debt: 13, 692,469,212.89 ( As of 1:29am EST  11/07/2010 )

Total U.S. Debt: 54,702,547,837.00 ( As of 1:32am EST 11/07/2010 )

Take a look at the National Debt Clock yourself and see how much it has grown since this post was published and for more information please read the National Debt clock FAQ.

Yes ladies and gentleman that is trillions and we don’t have the money to repay it,  and never will. And this is the problem. The men I featured at the beginning of this post are now going to kill the dollar. Mark my words,  the death of the dollar happened this week when the Federal Reserve decided it was going to buy U.S. Treasury bonds to the tune of $665 billion dollars worth. Do you remember what the fed said about it’s own money?

When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money. — Putting it simply, Boston Federal Reserve Bank

The Federal Reserve is printing money to buy financial instruments( Treasury Bonds ) that are used to keep the United States afloat financially. While I am not a financial genius it doesn’t take one to figure out this is nothing more than a thinly veiled Ponzi Scheme being perpetrated on the American people and any country who holds major chunks of Treasury Bonds.

A Treasury Bond is a marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest payments semi-annually.

As I said before we as a country, The United States, are broke…there is no money so the government has to sell treasury bonds to other countries to get the money needed to keep our country going. These Treasury bonds are bought with the expectation that when they mature in 10 years that the holder will receive their money back as well as the interest over the term of the bond.

So, what happens if a large investor such as the Federal Reserve buys a large chunk of Treasury Bonds with what basically amounts to an IOU? Remember, they are printing money out of thin air to buy these bonds. I could tell you what happens but all you have to do is watch or read the news. Confidence in the market as well as the United States starts eroding and the major holders of bonds start asking questions.

China said Friday that the Federal Reserve needs to explain this week’s decision to purchase bonds to pump money into the world’s biggest economy or risk undermining the global recovery.

Many countries are worried about the impact of the policy on their economies. “It would be appropriate for someone to step forward and give us an explanation. Otherwise, international confidence in the recovery and growth of the global economy might be hurt.

I remember that the finance minister of an advanced economy said that if you print too much money, that is an indirect manipulation of the exchange rate.

The Fed owes us some explanation about their recent decision on monetary policy. We hope that as the main reserve currency-issuing country, that country will adopt a responsible position on this matter.-Vice Foreign Minister Cui, China

German Finance Minister Wolfgang Schaeuble said Thursday that the United States was creating problems for the world and the subject would be raised during next week’s Group of 20 leaders summit in Seoul.

Hours after the decision to buy over 600 billion dollars worth of treasury bonds the Federal Reserve Chairman, Benjamin Bernanke had this to say.

This approach eased financial conditions in the past, and so far, looks to be effective again. Easier financial conditions will promote economic growth.

This isn’t the voice of a seasoned financial analyst making an educated decision, this is the voice of an imbecile guessing your future away. This decision not only effects America but every country in the world and the after effects of this decision will be with us for decades if not longer.

It has long been rumored that the Chinese and Japanese were looking to divest themselves of American Treasury bonds and China at the very least has been contemplating a change in the basket currencies they use. Since the beginning of the global economy there have been certain currencies such as the U.S. dollar and the British Pound that all other currencies are pegged against, this decision by the Federal Reserve will most assuredly see the dollar being dropped as a basket currency by many countries over time with the Euro most probably taking it’s place…although the Euro is just  the same dog with different fleas.

The idiocy of the Federal Reserve is only compounded by the likes of President Obama and Secretary of the Treasury, Timothy Geithner. Neither knows as much as Bernanke and he is at best leading us down the road to destruction with his guessing games. The inaction of the President and his puppy Geithner to step in and say” wait a minute lets try and figure this out without taking drastic confidence losing measures” is even more worrying than The Federal Reserves decision to buy Treasury Bonds. The president and his Secretary of the Treasury generally see this as a good move.

The stock market soared on the news that the Fed would buy Treasury Bonds and Bernanke and others see this as a motivator to build jobs and reduce interest rates even further.

In conjunction with the Treasury Department now limiting the amount of bonds issued, the buying of these bonds by the the Fed now reduces the yield of interest of all treasury bonds which isn’t a good thing at all. Investors such as China and Japan, who are losing faith in American treasury bonds, will now look to other countries securities to invest in. That will leave who to buy our debt? You guessed it, The Fed will buy our debt with money they will print which will incur even more debt.

Where does that leave the U.S.? Well, Bernanke would say that leaves us motivated but I’ll tell you that it leaves us broke and falsely supporting  a bad economy with worthless money and even more worthless financial plans. The next time you are short on money to pay for your mortgage just print some more and see where that gets you. It’s exactly where Bernanke, Obama and Geithner are taking the United States of America.

The dollar was dropping slowly before, and though it may take a while, The Federal Reserves decision to print money to buy debt on this scale has put the dollar on the road to oblivion. The dollar is dead and the United states of America is soon to follow unless serious action is taken against the United States Government and the Federal Reserve.

As far as I am concerned the above men, and many more, have committed treason against the United States of America with their actions and inaction’s and should have the full penalty of treason applied against them.

I’ll leave you with the wise words of a few very smart men…

It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.— Henry Ford

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.” — Sir Josia Stamp, (President of the Bank of England in the 1920′s, the second richest man in Britain at the time)

People who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about interest …But here is the point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way.  It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People. If the currency issued by the People were no good, then the bonds would be no good, either. It is a terrible situation when the Government, to insure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value of gold. Interest is the invention of Satan.” — Thomas A. Edison

We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it. — Congressman Louis T. McFadden in 1932

If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be used by…[the government] and not to be delegated to individuals or corporations — President Andrew Jackson, Vetoed Bank Bill of 1836

Every Congressman, every Senator knows precisely what causes inflation…but can’t, [won't] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job. — Robert A. Heinlein, Expanded Universe

Without the confidence factor, many believe a paper money system is liable to collapse eventually-Federal Reserve Bank of Philadelphia, Gold, p. 10

As long as we issue fiat currency, I see no alternative to a legal tender law.-Alan Greenspan, Chairman of the Federal Reserve Board of Governors, 11/20/2003

“The few who understand the system, will either be so interested from it’s profits or so dependent on it’s favors, that there will be no opposition from that class.” — Rothschild Brothers of London, 1863

“Give me control of a nation’s money and I care not who makes it’s laws” — Mayer Amschel Bauer Rothschild

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28 Responses to The Demise of the Dollar
  1. Mike
    November 7, 2010 | 5:19 pm

    Talen, sadly I don’t know the first thing about the US economy other than what happens over there usually makes us Brits catch a cold.

    Not that I blame the USA for the current state of play. Successive British governments are just as guilty.

    My major concern(probably yours too) is the overseas value of our respective currencies. In short how many Baht it will buy.

    Although I am not yet ready to jump ship(or off a high building) there will come a point where I can’t actually afford to live here.

    If GBP hits 35-38 I reckon me and a few others people who live on pensions might head home to Blighty-get free everything and just holiday here.

    I wait with bated breath to see what Lloyd has to say on this one ;-)
    Mike´s last blog ..Nang Nak Thai Ghost StoryMy ComLuv Profile

    • Talen
      November 7, 2010 | 6:10 pm

      Mike, the exchange rates definitely played a part in todays post. What really pisses me off to no end is the fact that the common folk such as us have no choice but to live within our means and we can’t just magically print what we need.

      The governments don’t understand that when they do these idiotic things we suffer and those in power get richer.

      • Lloyd
        November 8, 2010 | 10:54 am

        Its because most “common folk” in the USA have never lived within their means that the USA is in such a mess, thats the true problem with the American banking system not the Federal Reserve Bank.

        • Talen
          November 8, 2010 | 11:29 am

          Lloyd, absolutely wrong. The common people took their cues from the government that told them to buy buy buy. But the common people in no way shape or form messed up America or caused the massive debt…that was the government.

          The government for the last 50 years has spent money it didn’t have and even stole money from social programs such as social security knowing they would never pay it back.

          The American citizen has gotten into serious debt with credit that the banks gave them too easily but they can not do what the government has…print money to pay off debt.

          • Lloyd
            November 8, 2010 | 1:25 pm

            Thats funny, you can actually believe that unemployed or “common” people took out home loans and bought new cars, tv’s and the like that they could never afford because the government told them too? Just too funny!


          • Talen
            November 8, 2010 | 2:21 pm

            Lloyd, if you actually believe the American people brought down the economy you are sadly deluded. Yes, many Americans have spent above their means and just look at the programs you site. Home Loans and Cars…two areas where the government and the banks lied to the American people and pushed saying it will all be fine.

            Yes, many stupid American bought into it and tried to keep up with the neighbors but they didn’t bring down the economy.

            If you actually think the Federal Reserve is not the problem then how exactly do you see the buying of over 600 billion in treasury bonds by the Fed…that is buying bad debt with false money which will mean more debt? I guess the Chinese and other countries who have bought American debt on a large scale are wrong for being highly upset at this move.

  2. Basilseven
    November 7, 2010 | 7:20 pm

    Talen: Very well written article. It opens my eyes and scare the hell out of me. I’m retired and live on my retirement, social security and my investment savings which keep losing its value. It’s a shame to have to live your retirement life in fear. Nobody in the US know how to fix the economy. Only a few in the investment banking bussiness are happy and laugh all the way to their banks. At least I’m not young anymore and hopefully I won’t outlast my money.


    • Talen
      November 7, 2010 | 7:26 pm

      Basilseven, Thanks, unfortunately the government has always hedged it’s bets that the retiree’s of America would die before the could possibly get much out of social security. Since we are now living longer social security is going bankrupt and that’s why they raised the age again. Most Americans only have social security to depend on because anymore pensions are a thing of the past and who can save money these days.

  3. Steve
    November 7, 2010 | 9:28 pm

    Very well research and to be honest depressing post Talen. Can’t say I haven’t seen it coming though and as Golf and I make our plans for the move to the LOS I have been working with the idea that the exchange rate could be 25 baht/$1. While I was hoping I was wrong about that it seems that our government keeps doing everything in its power to further weaken the U.S. dollar.

    The thing is, they keep doing this in the name of boosting the economy and job creation, but the economy is moving upward, just without the job creation. Why? Because our corporations have learned that they can push those already working to do more and more…yes we are becoming a nation of slaves. Why hire when they can dole the increased profits out as bonuses to the top tier and have the common man work longer hours or “more productively”.

    I can only hope that I was pessimistic enough with my 25/1 exchange rate scenario.
    Steve´s last blog ..What Do Other People Think of Our Intercultural RelationshipsMy ComLuv Profile

    • Talen
      November 7, 2010 | 9:40 pm

      Steve, Thailand is the only Aisan nation standing behind the Fed move to buy Treasury bonds and Thailand has said they want to stop the rise of the baht against the dollar so your estimate might be safe.

      The economy is moving in America but look where it’s coming from…the stock market…they are again betting on and against America unchecked.

      I couldn’t agree more about the slave state America has become work wise. People working harder and longer hours for less money and benefits. When employers do hire they know they have prospective job seekers by the balls and offer them less money.

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  5. Steve
    November 7, 2010 | 9:52 pm

    When you consider the closed currency exchange that Thailand uses you might think they have some chance at weakening the baht against the dollar, but even with their large dollar reserves they have no chance if the U.S. continues with its destructive monetary policy.

    Inflation has begun to rear its head and my guess is next year sometime interest rates will begin to rise in the U.S. and that’s when the dollar will finally begin to strengthen (if it isn’t too little too late). My guess is the baht will be in the range of 25-26 at this point. I hope I am right because I can’t afford it to go much lower :>)

    Makes sense from a political standpoint as well…best time to show improvement in the economy for Obama will be from November 2011 forward…people have short memories ya know?
    Steve´s last blog ..What Do Other People Think of Our Intercultural RelationshipsMy ComLuv Profile

    • Talen
      November 8, 2010 | 11:09 am

      Steve, I have no doubt Thailand will keep the baht from rising too far against the dollar…especially after they sided with the Fed move that outraged every other Asian nation.

      Inflation should have started over a year ago but the fed has been keeping it at bay with ridiculous moves such as the treasury bond buy…what they don’t realize is that every time they do this when inflation does come at us it is going to be very high and very fast.

      Alan Greenspan said it perfectly a few years ago when he explained how the fed deals with inflation. The fed basically pegs inflation against commodities and consumer goods and they manipulate the cpi by switching out standards.

      If they are pegging the CPI against steak and all of a sudden people are in a bad economy and aren’t buying much stake the CPI looks horrible so when that happens they will switch out steak for hamburger and magically the CPI is great again and inflation is kept in check…it’s all a shell game. I wonder when they will switch out the CPI from hamburger to dog food.

      Unfortunately you are right about short memories in America but I have a feeling Obama won’t be around for a second term…

  6. Kevin
    November 8, 2010 | 4:03 am

    Very good article Talen. You are doing your readers a great service by posting information like this for your readers financial awareness. This stuff is very important for people to know and learn about the BIG PICTURE of finance and how fraudulent the whole system really is (IE Ponzi scheme/fractional reserve banking, etc..).

    The US Federal Reserve is a private corporation (Despite its name, it is NOT Federal and has NO RESERVES!!). It is owned by 12 banking families (mostly European banks except for Chase Manhatten, JP Morgan and some other big American institution). (read “Creature from jekyll island by E Edward Griffin). Watch Aaron Russos “Freedom to fascism” or “The money masters” online (youtube) for a quick review of the Federal Reserve system (created in 1913) and IRS (created in 1914 as the bankers tax collector).

    When you hear the term “Quantitive Easing” it is just a tricky bankster term for saying OVERPRINTING the MONEY SUPPLY. They reason that since the American debt (that you listed above (National debt and total debt)) is impossible to pay back then they will simply devalue their own US Dollar so making that debt cheaper to pay back. The previous Fed Chairman Alan Greenspan did the same by creating bubbles in all asset classes and people thought he was a genius since he kept things afloat but really did more damage and passed on this mess to the stooge known as “Helicopter” Ben Bernanke but Greenspan was just as bad. The last 20 years has been a time of “easy credit” as they give mortgages/credit cards/loans to anyone with a heart beat (subprime mortgages, liar loans, mortage backed securities, etc..) which is still in the process of imploding. Inflating the US money supply is the last trick left available to the inept US Federal Reserve at this time.

    There are no more currencies on the planet that are backed by gold or anything of “real value” anymore. The swiss franc was the last currency that was backed by gold but that got abandoned too. We live in a fiat currency system that we have been hypnotized into believing is real money through society and generations but it is all an illusion of mere paper or electronic digits in our accounts created by the international bankers. Just look what happened in the Weimar republic of Germany in 1923, Argentina in 2002 and Zimbabwe as of late. Soon to come to the good ole USA and other countries as well.

    I am a Canadian and I always convert my savings into gold/silver for the past 6 years as a hedge against inflation. Just pull up a 10 year chart on gold and silver and you will see the long term direction it is going to go in (The world market is telling you that the US dollar is going down since all commodities are going up and are denominated in US dollars). The gold bull run is now entering the parabolic phase like the 1970′s where gold went from $35oz to $850oz in 8 years (2400% return) but the fundamentals are much worse now than they were back then. I hope you all have physical gold and silver to protect any wealth you have.

    You and your readers might be interested in reading about Bob Chapman, Gerald Celente, economist John Williams, and Pastor Lindsey Williams for good information and accurate forecasts (IE Good track records for being right). Out of all the people I have followed for financial information over the past decade theirs is by far the most accurate for predicting the financial crisis ahead. Wakey wakey folks, it ain’t gonna improve no matter how much wishful thinking we do or what the mainstream media tells us (IE “the recession is over” BS!). It is all by design.

    I have listened to alternative radio for 12 years and Pastor Lindsey Williams has come out periodically for the last 35 years when his “insiders” (IE Global Elite) leak information on the future prices of crude oil and other commodities which they know in advance and his accuracy and time schedule has been 100% accurate. In the early 1980s (1982/1983?) when OPEC drove the price of crude oil up to $30 a barrel, Lindsey’s insiders told him to tell everyone that the price of crude would be $10 a barrel within 6 months. People initially laughed at that prediction until it did exactly as he said in the exact time line (it hit $11 a barrel within that 6 months).

    He predicted in 2006 that oil would go from $60 to $150 a barrel which it did and then he predicted 2 weeks before crude oil reached its all time high in May 2008 at $147 a barrel that it would be under $50 a barrel within 6 months time (it went to $32 a barrel in November 2008) and then said for the next 2 years oil would fluctuate in the trading range of $60-80 a barrel (Nov 2008-Nov 2010) which it has. One of Lindseys insiders is an 87 year old oil executive named Ken Frum that is on his deathbed now (cancer) and has told Lindsey what Americans can expect for the next 2 years and this insider has now told him that starting now (Crude oil is presently trading at $86 a barrel) that crude oil WILL be at $150+ a barrel by July 2011 with the gradual devaluation of the US dollar over that time and will continue to lose value throughout 2011 and by 2012 the US Dollar would be officially dead as the world default currency. This guy is not a prophet by any means, but simply is an insider who is privy to all the meetings of the IMF and World bank etc… that are the global managers of the planet for a very long time and he just tells what they have in store for the coming years. This insider warned last year that when the US Federal Reserve begins monetizing the debt (which is happening now as you mentioned with printing money out of thin air to buy back their US T-bills and other bonds,etc.. that other countries will no longer buy now) that it would signal the beginning of the end for the US dollar as the world default currency and US economy. He said by the end of 2011 that most Americans would be so broke that they would be more concerned about putting food on the table for their families than protesting the goverments actions (more wars??). This Elite said a lot about what they have planned in 2012 but you can research this stuff yourself. To be forewarned is to be FOREARMED!!

    When you research this stuff deeper you will realize those 3 stooges you have posted are just mere puppets in the grand scheme of things.

    I am certainly not trying to scare anybody but I have been watching all this stuff unfold for the past 12 years and whether you believe in a global elite controlling the whole financial system or not, now is the time to do your research folks!

    Real knowledge can protect you and your assets in incredible ways! Don’t be like the sleeping masses who seem only interested in the bread, wine and circus of life.

    • Talen
      November 8, 2010 | 10:59 am

      Great reply Kevin, I know many people that do just as you do and exchange their paychecks for commodities such as gold and silver …I only wish I would have been that smart earlier…but knowing how the government in America works it is more than feasible they could outlaw the owning of gold and confiscate anyone’s holdings if they really wanted to in the name of national security.-It’s really scary how the puppet show of global terrorism has masked so many of the government frauds and in turn given the government more power to take over our lives…all in the name of freedom of course.

  7. Paul Garrigan
    November 8, 2010 | 6:07 am

    Hi Tim, like a lot of other people I depend on money from abroad – usually in dollars. It is a bit depressing to think what the future might bring. We are all far less secure than we might like to think. Some people like to blame the poor for getting into that situation, but they fail to realise how close they are to this themselves. Living with uncertainty is part of life but sometimes it is easier to fool ourselves – when you live abroad and depend on currencies that are dropping in value it highlights the thin ice we are all on.
    Paul Garrigan´s last blog ..Middle Aged Muay Thai Podcast Episode 5 Muay Thai Self Defense and ViolenceMy ComLuv Profile

    • Talen
      November 8, 2010 | 10:55 am

      Paul, I know quite a few ex-pats around the world that are very worried right now. I always find it funny when members of the U.S. government talk about citizens in debt and how they should budget and save money when the federal government hasn’t been able to do so for decades.

  8. Tony
    November 8, 2010 | 10:14 am

    Excellent post! It’s ironic that the day the Fed announced their 600 Billion dollar buy in both the DOW and the price of gold shot up. Looks like some people get it and some don’t.

    Creating money, ponzi schemes, fractional finances, all are illegal for the citizens to do but perfectly legal for the Fed to do. It’s crazy when you think about it!
    Tony´s last blog ..Bangkok Suvarnabhumi Airport LinkMy ComLuv Profile

    • Talen
      November 8, 2010 | 10:52 am

      Tony, it really is crazy when you think about it and depressing too. All of America should be up in arms and yeat most Americans will think this is ok because that’s what they have been told.

      • Tony
        November 8, 2010 | 8:07 pm

        I also think most American have no clue as to what is really going on with their finances. As long as their TV still works that’s all the “education” they need and according to the propaganda, er commercials, everything is fine.

        • Talen
          November 8, 2010 | 8:34 pm

          Tony, unfortunately the average American is far more worried about who will win American Idol than their government screwing them over.

  9. ChuckWow
    November 8, 2010 | 12:58 pm

    When I first went to Thailand the exchange rate was 25:1. I was happy with that because things were pretty inexpensive.

    The shit hit the fan in 1997 and the exchange rate floated up to almost 60:1. After a few months things settled down and the exchange rate leveled off around 40:1. I was a king then. Thailand tried to hold the price of local goods and services at the pre-collapse prices so everything was CHEAP !!

    The prices only held for about a year and then things began to normalize at the 40:1 exchange rate but I was still happy.

    Early 2006 the exchange rate began to slide. With the new prices set to the 40:1 exchange rate the belt began to tighten in mid 2007 when the exchange rate approached 30:1.

    Things got a little easier in 2008 and 2009 but here we are again at the 30:1 (or below) exchange rate and feeling the pinch.

    Basically, I am just trying to say that over that past 20 or so years I have seen a bit of cyclic behavior in the exchange rate and hope that this latest slump is not an indicator of doom and gloom as Talen believes.

    Hell, if it weren’t for the increase in prices I would still be happy with a 29:1 exchange rate.

    • Talen
      November 8, 2010 | 2:24 pm

      Chuck, I think the dollar to baht exchange will probably stay where it is for a while then rise slightly…might even be 31-32 by the new year. Fortunately for us Thailand is backing the U.S. and doing what it can to keep the exchange rate reasonable. Unfortunately the dollar has been on the decline for some time and it’s never going to stop unless the dollar is once again pegged to gold.

  10. Tony
    November 8, 2010 | 8:10 pm

    Talen what do you see for the future of the US dollar and economy? Do you think the US will default or will Helicopter Ben just keep printing money and we’ll see run away inflation?

    A US default would be a pretty large shock to the world financial system but it might be just what the rest of the world needs to wake up and start decoupling themselves from the dollar.
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    • Talen
      November 8, 2010 | 8:33 pm

      Tony, I see runaway inflation starting next year and the FED will continue to feed the system with worthless money creating trillions in more debt. The U.S. economy is in shambles but the powers that be keep saying we are in a growth phase although more companies are laying people off. The job numbers just released are a farce as they neither count people who fell off the unemployment roles or the millions of people that have had to take part time jobs .

  11. Lloyd
    November 8, 2010 | 8:15 pm

    Talen I have never said that the governments of nearly every country involved in the current ‘recession’ are not at least partially responsible for the sovereign debts current and past Governments have accumulated with little or no regard to just how and when they will reduce sovereign debts. However they cannot be blamed for the trillions of ‘dollars’ of debt their citizens accumulated due to poor fiscal responsibility, it is this debt that is primarily effecting current global markets equally as much as government policy. Simply look at the forex markets and just just how little the ‘major’ currency pairs have actually moved following recent government or FRB decisions.

    It doesn’t take much research to see that the USD has been in a pretty steady decline against the Thai Baht for pretty much the last 10 years.

    Chukwow’s comment pretty much covers it, its not so much that the USD or GBP are weak but that the actual cost of living in Thailand has risen, just as it has in every developing country, and there is no longer a free ride for expats.

  12. SiamRick
    November 18, 2010 | 8:20 pm

    Whoa! Fantastic post, Talen. (Sorry, I’m so far behind but newly living in BKK has, uh, distracted me.)
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    • Talen
      November 18, 2010 | 8:45 pm

      Thanks Rick…and completely understandable …there is a lot to be distracted by :)

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