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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (22361)	8/26/2009 6:41:47 PM
From: ayn rand	3 Recommendations Respond to of 71442

History Will See Bernanke As Worst Fed Chairman President Obama reappointed Ben Bernanke as Federal Reserve Chairman on Tuesday and it is unbelievable how everybody in Washington and the mainstream media is praising Bernanke for helping prevent the next Great Depression, as if the economic crisis is already over. It's unfortunate how forgetful Washington is and how the media fails to talk about how Bernanke has simply taken Alan Greenspan's mistakes and made them bigger. Nobody has the foresight to see the disaster that lies ahead because of Bernanke. Facing a recession in 2001, Greenspan lowered interest rates down to 1% and created the Real Estate bubble, which led to the economic crisis we have today. Bernanke, by lowering interest rates down to 0% and taking worthless mortgage-backed securities, auto loans and student loans onto the Federal Reserve's balance sheet, has temporarily given our economy a short-term artificial high that will soon wear off and cause our financial markets to crash again even harder. While Greenspan's destructive actions gave our economy a high that lasted for a good five years, today there are no more asset bubbles in the U.S. left to inflate. All of the inflation being created will soon drive up the prices of gold, silver, agriculture, oil, and other commodities. Unfortunately, our country does not produce enough of these commodities to benefit from the upcoming boom. Most of our wealth will be transferred abroad and the only people in America who will benefit are those with the cash to purchase these commodities and the stocks of the companies that produce them. It's interesting how on the same day that Obama announced Bernanke's reappointment, the White House Office of Management and Budget announced that they are raising the projected federal budget deficit over the next 10 years from $7 trillion to $9 trillion. This out-of-control deficit spending will only be possible if Bernanke monetizes it and creates massive inflation, and it's obvious to us that he is committed to doing so. Nobody in Washington understands that as the Federal Reserve starts printing this $9 trillion, the U.S. dollar will rapidly lose its purchasing power and if the government doesn't dramatically reduce its size, the real deficit over the next 10 years will likely be $20 trillion or more. In that case, we will most certainly have hyperinflation. In order to prevent hyperinflation, we need a Federal Reserve Chairman who has the courage to raise interest rates and force our country to endure a steep recession, rather than pushing our problems down the road and making them bigger. We will never again have a prosperous economy until we have a severe recession and rebuild a sound viable economy from the ground-floor. It is better to have our much needed recession now, than a Great Depression coupled with hyperinflation a few years down the road. Our fiat currency is very fragile and every action taken by our Federal Reserve Chairman should be for the purpose of preserving the purchasing power of the dollar. Although Bernanke talks about having a strong dollar policy, every single action he has taken has been destroying the dollar underneath the surface. While Bernanke is being hailed as someone who is smart enough to mop up the excess liquidity before we see a rampant increase in consumer prices, we know this is an impossible scenario and the world will eventually look at Bernanke as being the worst Federal Reserve Chairman of all time. Today, the corporate-controlled mainstream media is working with our elected officials and the Federal Reserve to set the American people up as sheep to be slaughtered. They are encouraging Americans to go out and spend on things they don't need, when what little savings they have left will soon be worthless. Americans need to be encouraged to buy gold and silver with their savings and prepare for the real economic crisis that is ahead. Our movie being released on Friday, Debt Slave, will be a wake up call for our country. It is important for you to spread the word this weekend about Debt Slave to everybody you know, to help prevent your friends and family from being slaughtered by Bernanke. -National Inflation Association - aug 26, 2009