Tuesday, July 15, 2014

Bernake's Federal Reserve Destruction of the Dollar: Part of a Conspiracy to Destroy the Economy? Creative Destruction....

Bernake's Federal Reserve Destruction of the Dollar: Part of a Conspiracy to Destroy the Economy? Is it a Coincidence or What? Lex Loeb Contributor Network . The Japanese experience of lowering interest rates to zero at their national bank level to save insolvent interconnected companies - when the Japanese financial super bubble burst - has had mixed results. Now it seems to be imitated by Bernake of our own Federal Reserve. Supposedly this Fed Chief is doing everything possible to prevent a complete financial melt down that could lead to the next great depression and yet the record so far for 2007-2008 is just the opposite of what is being advertised. Bernanke was right there saving some insolvent firms and letting other major firms go bankrupt. If the goal was to prevent inter-connected banks from failing then why didn't Bernake work to save Lehman like he did Bear? Why were runs on insured banks like Washington Mutual and Indy Mac tolerated with no public reassurances from anyone in Washington DC? The US government waits to guarantee fund after the collapses occur and not before. The already bankrupt auto companies get protection from declaring actual bankruptcy with federal money just going to ruin as the firms need far more money than they are getting which means the official bankruptcy is just delayed by 3 to 6 months. The bubble that caused the mess is blamed on too much debt and the government's response is to create as much new debt as possible declaring it an emergency. Looking at the pre bubble burst period the government was already in full Keynesian operation running a multi front war on credit and building up unplayable ponzi scheme like obligations like our unfunded funded social security system. The sudden arrival of all the Neo- Keynesian's economists as talking heads on television and Nobel prize winners in economics is another amazing coincidence. So far there is little to prove them right about anything because the liaise bubble that burst was financed the same way they say we need to finance our recovery. It is fair to ask is if this is a conspiracy to destroy the American Economic system or just to redistribute the assets of the US and much of the world to new owners? The spread between the public mortgage rates and the interest rates that banks can borrow from the fed are the highest ever now that the fed rate is approaching zero. If the average mortgage rates is still more than 5% it is impossible to understand how Bernake is giving any relief to anyone in the real in debt economy. The horror is that Bernanke is tempting foreign treasury bond holders to cash out thinking that a collapse in the dollar may be worth risking to prevent some other cause and effects elsewhere in the economy. There is no precedence for this where a world currency is being debased on a whole world basis this way. The Yen never had the status as the primary key currency and it still does not have that status and is unlikely to assume that status because the Japanese are busy matching the federal reserves rate cuts as a knee jerk reaction. This means the same thing for Europe and Emerging markets too in short order most likely. This Bernake could prove to be the most dangerous idiot ever to have a lot of academic degrees in a high government official position of all time. The last time something like this happened was not in the great depression. You have to go all the way back to Roman times when Julius Caesar's successor Octavian Augustus turned his legions against the old patrician families of Rome to confiscate their assets to make good on promises to pay Julius Caesar's Promised inheritance to the rest of the roman population. That is exactly what is really happening in the markets with Paulson and Bernake and Bush making a case to bail out home owners who should never have had access to borrowed money to buy any house at any rate to begin with. The dollar as we know is nearly dead. It is hard to predict exactly what it will be replaced with. At some point foreigners are going to wonder why they saved their US dollar trade credits and they will ask for something else in exchange for any goods or services traded. This is a very destructive move on the part of Bernake. Come the installation of the new president who is talking about an anti carbon economy by mandated and the undermining of free trade agreements like NAFTA, it looks like Bernake and friends are really conspiring to give us all a real live depression. The US government acting like it wants foreigners to write off their trade credits as unplayable and non interest bearing. This is a potential disaster. There is plenty of room for optimism because the evidence of deflation is not uniform in the economy. The decline of commodity prices appears to be way over done. Wages in the US are still paying out and quite high. The unemployment level is lower than ten percent. Why is Bernake experimenting with all sorts of crazy theoretical ideas on how to fix a problem that does not really seem to exist until he gets involved trying to prevent it? One word: Conspiracy. Is this a conspiracy theory? Yes and NO. The only thing that makes sense to explain what Bernake and friends are really trying to do is a major redistribution of wealth in the world. It is actually quite brilliant if the design was to bring down Putin, Hugo Chavez, Iran and to screw up the OPEC cartel. There the plan is working brilliantly but if it brings the US economy down with our enemies it is utterly stupid. It is no longer possible to put the Bush Administration beyond classification as stupid. What people are not looking at is what really is happening below the popular headline surface of the stormy waters. The major banks are being quickly consolidated into less than ten major banks. By the consolidation is over there could be a total of three international banks , worldwide with governments as a major shareholder. There is no precedence for that since Emperor Augustus. These banks already can determine which in overly debt companies that need refinancing live or die. A wave of industrial consolidations will start soon next year. It will be very profitable for the 1 or 2 remaining investment banks or banks with investment banking arms. The consolidation will produce a 5th estate of government if the government has major ownership. Was Obama's trip to Berlin to run for election a sign of a world empire being forged? It seems like citizenship was being extended at least in voting for the US president. Both McCain and Obama were able to take foreign contributions on allied INTERNET sites. Rich foreigners clearly have more access to lobby major figures in the US government than most ordinary Americans. When the market reversal occurs and major positions are built in American stocks as investors flee the us treasuries and the dollar, The consolidation will occur at a rapid pace with a lot of foreign interests buying in at pennies on the dollar. If they act fast enough because the realization dawns that non interest baring government notes are not worth holding especially as the US treasury is busy printing infinite numbers of dollars for the big Keynesian Bernake Keynesian bail out of the last two Keynesian bubbles. Oil maybe a better counter weight than gold but natural gas maybe the best financial alternative because of cash flow. If the Obama EPA bans carbon natural gas is still at risk and betting on platinum maybe silly with new ceramic catalytic converters coming out from Corning glass company. Forget investing Bernake is moving the US economy form a capitalist economy to one that runs on the currency of political influence. This is not talking about Chicago politics . It is talking about the politics of ancient Rome. To get ahead in ancient Rome you were best related to the current emperor able to pay him off appropriately. This is where all the Neo- Keynesian's are really coming from because they are all deliberately out to grab life long positions of political power. These are not the same sort of people as the free market proponents that back most republican candidates and many libertarian candidates too, This is a world wide phenomenon. Nothing new about a global economy. You are going to get your class designation under the Obama administration. Did you go to Harvard ? Then you have one point in your favor. Do you have property the government can take to pay for someone else's retirement expenses? That puts you in a special class. When all the talk about needing more government regulation of the private sector boils down to reality it is usually to some form of confiscation or cutting the government into the cash flow from the business with fees or direct participation. The Keynesian's are famous for their Mixed economy model where by government enters so called public private partnerships with private interests essentially using private industry to tax the public to provide public services you the public ends up having to pay for often by mandate. This is not the economic system you may be used to. Have you ever lived as a Russian serf? With Bernake's consistent desire to send the US economy into a depression so he can save us from a depression that till that time does not exist that may become your future. What happened to the idea that prices for homes that are over priced can fall to a level where someone can buy those homes as bargains? What is the problem with that? If people can't afford to own their homes why can't they become renters again? How can you fix an economy by keeping prices high by debasing the dollar currency? Looks like an imperialist conspiracy to transform the US economy from one that used to run on free exchange traded dollars to imperial influence markets. If we go that way we might not be able to tell President Obama from Stalin. The only way to survive will be to become a party member in good standing and live a completely transparent lifestyle. It will only take Bernake 2 years to transform the US into A Bigger Version of North Korea if those are his real plans. For the Obama believers that may be saving the environment too? Control freaks love the idea of an imperial empire so long as they have a nice cushy position running it. A power grab looks like a power grab. It is suspicious that solvent companies are allowed to fail and insolvent ones get saved. That is good reason to suspect conspiracy. If the Governor of Illinois is a good example of what we can expect from the coming Obama administration the horse trading will only get better in the near future. Democrats enjoyed running Fannie Mae and Freddie mac as public private companies and are looking foreword to turning Exxon and McDonald's and a lot more into special power broker offices for their best of friends, It looks like The Bush administrations big grab leaving office is designed to counteract the Obama power and land grabbing that is about to begin. They say the US is not a third world country? Is the economic crash an intentional means of grabbing power and influence? There is just about no incentives being built into any Washington Bail out policies that benefit everyone equally and that is the key to seeing something is badly wrong with Bernake. Special deals given to arbitrary special interests is apparently the name of his game. There has not been one universal incentive like a tax cut to benefit all Americans equally out of Washington since the so called bail out began. The government is protecting select debtors with the same sort of looting attitude of the Putin administration in Russia. Are we moving the US to a Imperial roman empire model? A future Bush Monarchy? An Obama Caliphate? The American People should be calling for Bernanke removal from office. If not now after the US devaluation causes the complete collapse of the dollar and the economy with it. Anyone else happen to notice that it was the federal reserve that put the interest rate squeeze on the financial system in the first place? Wait a year or two later and they will lower interest rates to spur growth again. Does not that seem to mean they effectively had control over the market blow up? Who froze credit and why? Why is it the organizations that decide we have inflation cannot determine that we do or don't really have inflation and not just market price appreciation? It may make sense if the financial shake out is seen as intentional. .

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