As Ben Bernanke Deliberately Collapses

the American Dollar, George Soros Chortles

For lack of a better name, call it the OJCP, "Obama Jobs Creation^^ Program": your money is deliberately being made worth less or worthless to spur jobs creation. The plan is that foreigners will want to get rid of dollars and buy American goods, thus creating jobs. Foreign goods will become too expensive for Americans who will decide to buy American goods instead, presto, again more jobs created here. Doesn't that sound wonderful? The chief architect of all this with Mr. Obama is Fed Chairman Ben Bernanke who is also initiating something called "quantitative easing."

The reserve currency of the entire world for lo’ these many years has been the American dollar. Within the last couple years George “The Puppet Master” Soros (the world’s 35th richest man and its single greatest megalomaniacal communist who already has thrice profited fantastically by bringing about the collapse of some nation’s currency) told the world press that a controlled devaluation of the American dollar was necessary for the good of the world community. The interview was not widely covered in this country, but his comment sent ripples throughout the world especially among those foreign governments who hold U.S. dollars. The legendary Mr. Soros who bankrolls a good ten non-profit groups involved in getting the United States into the shark-filled Cap and Trade waters, by the way, is advocating Cap and Trade** legislation as a way out of our present crisis.

Within the last 18 months, both Treasury Secretary Timothy Geithner and Federal Reserve Bank Chief Ben Bernanke swore that America would never devaluate the dollar, would never resort to inflation as a way to deal with our incredible debt, would never sabotage the American people and those who hold debt instruments from the American treasury . . . . Yep, they lied. The terms “Q1” and “Q2” are now becoming familiar to Americans who do other things than watch sitcoms and “reality” shows on TV. “Quantitative easing” has taken place in both of the last two fiscal quarters.

The Quantitative Easing which Mr. Bernanke is taking us through is a polite way to say that the government is deliberately making toilet paper of your savings, pension funds, etc. That’s what the government is doing. Rajjpuut first mentioned the German Weimar Republic back in a blog in early 2004. The astute Mr. Glen Beck of the Fox News cable network has this very month said that America is now heading for a “Weimar Moment.” The Weimar Republic was the government forced upon Germany when they lost World War I. The infamous Treaty of Versailles also forced upon Germany an impossible set of reparations payments. In order to deal with the demands from the victorious French, the Germans had to inflate their currency. The Deutsch Mark which was worth 25 cents (four DM to the dollar) in 1917 deteriorated so rapidly that in November, 1923; it took 26 Billion Deutsch Marks to equal a dollar. You may also remember November, 1923, as the time when Adolf Hitler led a group of dissatisfied individuals in the so-called Beer Hall Putsch (coup d’état) trying to usurp the government of Bavaria. The resulting trial for treason made Hitler a household name across Germany. Such are the benefits of state-sponsored inflation . . . .

In October of 2008 at the height of the financial crisis, Mr. Bernanke took it upon himself (there are virtually no limits to the power of a Federal Reserve chief’s to inflict intended or unintended pain) to begin printing up money. When he was done he’d printed up 14 times as many new bills as there were dollars previously in circulation so in total: 15 times as much money was circulating as before. In effect, the potential effect on the dollar was that the 20o9 dollar was worth 6.7 cents worth of 2008 money . . . NICE!

In the summer of 2010 when it became difficult to sell American debt instruments because foreign governments were reluctant to risk buying up dollar instruments without a much higher interest rate, the federal government in the form of Mr. Bernanke’s Federal Reserve Bank began printing again and bought up some of the Treasury instruments that were on sale, about one-third of them. This is called “monetizing debt” something you’ll recall from the top of this blog that Timothy Geithner and Ben Bernanke promised would never happen. That didn’t seem to have cured the problems so now Ben’s busy again with the printing presses and monetizing more debt a.k.a. quantitative easing . . . Q1 earlier; Q2 now. Back when Q1 was going on you might recall, Rajjpuut telling Americans to buy gold or silver because paper dollars were becoming worth less and eventually might prove worthless. Now Rajjpuut says that Americans should buy things of value like gold or silver, etc. because “worthless” is the watchword for the dollar. Of course, in ignorance the stock market investors believe Q2 is a good idea and the stock market is shooting up . . . dance while you can, boys, the bill’s coming due. Aren’t you glad “they” are looking out for us in Washington?

Here is the straight skinny and Rajjpuut crosses his heart while typing this: The crisis in the world’s finances comes down to one thing and one thing only . . . a crisis in the American dollar. The U.S. National Debt is almost $14 TRillion. Unfunded liabilities (owed by the country to the citizens) amounts to roughly $110 TRillion. We are by far the greatest debtor nation the world has ever known. While scarfing down junk food and watching American Idol a few other simple facts have escaped the good citizens . . . .

ITEM: Americans are not aware that the U.S. (private controlled central bank) Federal Reserve Bank, creates money out of thin air, is the primary cause of inflation in America, abets the politicians in their horrendous spending, and abets the creation of financial bubbles in the stock market and real estate.

ITEM: The American mainstream media (MSM) are largely “controlled” by their allegiance to the progressive elements in the Democratic and Republican parties. The MSM which did not report on Climategate when it happened one year ago, has also kept the American people ignorant of the coming crisis. Call it “mind control,” if you choose. Just five or six major corporations run the largest of the media outlets. When it comes to the broadcast media: Disney owns ABC, CBS is owned by Viacom, GE owns NBC all of whom are in bed with the progressive agenda in Washington and have a vested interest in keeping Americans entertained, dumb and happy rather than informed about the truth behind Cap and Trade and the value of their dollars.

ITEM: Not only have ultra-progressive George Soros’ words and activities gone unreported, but the IMF (International Monetary Fund) and World Bank, both have already said the dollar will be devalued. However, this has never been reported in the US media.

ITEM: President Clinton’s former economic adviser Robert Reich recently told Canadians that the U.S. dollar will collapse. Again, NOT reported.

ITEM: Collapse or “devaluation” of the dollar means a decline in the dollar’s purchasing power and a huge decline in Americans’ living standard. No one wants to hold a currency declining in value so they must demand higher prices for their goods and services and can use the dollars they receive to bid up the cost of whatever they buy from America in order to get rid of the dollars they hold as quickly as p0ssible.

Item: Today, Barack Obama made several monetary deals with India. Overtly we were told it was “a natural union between the world’s two most populous democracies.” In reality, Obama seeing that China is becoming reluctant to buy dollars was looking for a trade-partner who would be more or less forced by the agreement to keep the dollar respectfully in its hallowed place as a “reserve currency” . . . thus he hopes easing some of the pain the decline will bring to Americans by sharing that turmoil with India.

Item: The world will flee to gold, silver and other precious metals; to the Swiss Franc; and even to the recently despised Euro. Commodities of all kinds can be expected to rise in price FAST.

Ultimately what can we expect? For one thing the rest of the world understands our own crisis far more than our own leaders have informed us about it. So . . . expect a run to get out of the dollar . . . call it “hot potato economics.” People are going to be eager to discard the almighty buck and to buy whatever they can with it, rather than being the last one holding it. Of course that will happen among highly aware foreigners like the Chinese government, or the governments of Russsia, Brazil, Japan and India(?) long before the man in the street in America figures it all out. So expect a brief boom in America. And expect prices of our American products especially foodstuffs to go through the roof . . . so besides gold or silver, it might be nice to have a supply of canned and packaged and non-perishable food on hand while prices are comparatively cheap . . . as a result of these sad truths, expect huge amounts of unrest in the inner cities; expect huge amounts of problems for senior citizens and others living on fixed incomes. Expect George Soros to chortle all the way to the bank . . . .

Ya’all live long, strong and ornery,

Rajjpuut
^^Barack’s OJCP based upon devaluing the dollar is an immensely poor idea for three reasons:

#1 Inflation is tricky and can become devastating runaway inflation and even hyper-inflation destroying a civilization.

#2 When a currency as important as the dollar starts to devalue, no other country wants to import our joblessness, so you can expect demoralizing “currency wars” where dozens of nations seek to devalue their currencies and save jobs. Japan and China have received much criticism for devaluing their currencies but their money is NOT the world’s reserve currency . . . . world chaos would ensue if serious dollar deflation was allowed.

#3 Success at devaluation is close akin to success at swallowing thumb tacks and sure to “get you in the end.” Money is a storehouse of value (some call it “frozen work”) so why not attack your brand new car with a sledgehammer? The effect is the same . . . taking something of value and making it worth less or even worthless. Even if the only effect was upon imports and exports, that would be a tragic result. 19% of the U.S. economy is tied up with imports, drop the value of the dollar and 19% of what we buy becomes much more expensive.

In effect, the OJCP Obama Jobs Creation Program is just making us all much poorer. It’s not exactly sawing a lady in half to create jobs by making the country poorer . . . the magic comes from creating jobs by making us all wealthier like Donald Trump and Bill Gates do . . . not only making themselves richer; but making their stockholders richer; and their workers richer; and providing deep value to their customers. That’s the magic of capitalism which Barack so hates. Remove the minimum wage; remove health care and all benefits; make everyone on unemployment work for $5 daily and you’d have full employment in a month . . . and a much poorer nation as well for at least the three years it would take for a booming capitalism to regenerate our prosperity.

Everyone knows the following discussion is the truth . . . think of it as you ponder what you’ve learned already about the evils of devaluing the dollar:

Many have had to settle for lower wages to keep their jobs.

Many have had to settle for lower hours to keep their jobs.

Many have had to settle for part-time work to keep their jobs.

Many on part-time schedules have found themselves ineligible for the benefits they’ve formerly received.

Many have lost their jobs.

Many have lost higher paying jobs and now work elsewhere for less.

Or they've lost higher paying jobs and can only find work that pays less for mandatory unpaid overtime.

Many have had to take two or three jobs to survive working up to 90-100 hours weekly.

Many lost co-pays, deductibles, or seen eligibility times soar on their health insurance.

Many find that employers can longer match their401(k) contributions.

Many older workers have found themselves dispensible.

Many have lost their pensions.

Some workplaces where experienced older workers are valued have instituted two-tier wage systems. New hires get far lower wages and far less benefits.

Wage-freezes attack many workers in the long run as inflation eats into their present constant wage.

What does this mean? It means that anyone can create jobs by making everyone poorer, no struggle at all. The magic comes from capitalism creating not only more jobs, but better and more valuable jobs. The goal isn't just more jobs, Mr. Obama. It's about creating more jobs that pay enough to improve our living standards. Using a dramatically weakened dollar to create more jobs doesn't really help us.

** if we had Cap and Trade laws in effect right now, the immediate effect would be 67% inflation on average and inflation on food, electricity and gasoline and other necessities closer to 100%. Where does that 67% inflation figure come from? Founder and President of the Chicago Climate Exchange Richard Sandor (other influentials involved include Obama, Franklin Raines, Joel Rogers, John Ayers, Valerie Jarret, etc. and the Chicago ShoreBank supported by Hillary and Bill Clinton as well as ten or more progressive foundations financed by George Soros) put the value of Cap and Trade as an industry at $10 TRillion. In good times the real U.S. economy amounts to $15 TRillion. On paper, that means that selling blue-sky nothingness (that’s what Cap and Trade basically does) is “worth” 67% of the real U.S. economy. So in a $25 TRillion economy including Cap and Trade . . . 40% of the economy is literally “nothing” and that 40% is being stolen from the real economy by the crooks running the CCX. Note: Obama said directly in an interview with the San Francisco Chronicle that his energy plan would “bankrupt the coal industry” and “necessarily make electricity prices skyrocket.” So it’s actually far more likely in reality that the whole U.S. economy would amount to $20 TRillion and half of that economy would be Cap and Trade not only running prices up 100% but reducing the standard of living by 33% at least.

E-mail me when people leave their comments –

You need to be a member of Command Center to add comments!

Join Command Center