The Federal Reserve Is Destroying America
Lee Rogers
Funny Money Report
March 18, 2008
It is incredible to see the rampant devaluation of the U.S. Dollar. The Federal Reserve just hours ago made a rare cut of 25 basis points during the weekend which will cause even more inflation. Gold immediately moved up $20 an ounce and the U.S. Dollar Index plunged under 71 in international trading. If this type of market activity continues the U.S. Dollar will have no value in a few months. While it is probably unlikely that we will see a hyper-inflationary collapse of the U.S. Dollar within the next few months, these policies are entirely unsustainable. If the Federal Reserve does not move to defend the value of the U.S. Dollar we will eventually see a hyper-inflationary collapse and worldwide financial turmoil. This view is also shared by other well respected financial analysts. Peter Schiff recently raised concerns about a hyper-inflationary collapse of the U.S. Dollar, Robert Reich a former Clinton cabinet member believes we are facing a depression and Alan Greenspan the man who caused this whole mess wrote in the Financial Times stating that we are facing the worst financial crisis since World War II. What’s amazing is that the Federal Reserve isn’t even trying to protect the U.S. Dollar because all they care about is saving the power of their private banking cartel. They don’t care about the U.S. Dollar nor do they care about the country itself. They are destroying this country through their actions and there needs to be an investigation into the controllers of this bank.
Alan Greenspan saying that we are facing the worst financial crisis since World War II is like a killer returning to the scene of their crime and explaining the results of their crime. Greenspan recently told nations in the Gulf to drop their currency pegs to the U.S. Dollar which encouraged a further drop in the U.S. Dollar. Greenspan’s Financial Times article will cause an even greater acceleration in the collapse of the currency. As the former head of the Federal Reserve, his comments still hold a great deal of importance with people around the world. This means that his comments can literally move the value of the U.S. Dollar one way or another. It is incredibly sick how Greenspan can get away with creating the current crisis we face with his low interest rate policies earlier this decade and analyze the problems that are occurring today that were a result of his own policies with no criticism from the corporate controlled media.
JP Morgan announced that it is completing its buyout of Bear Stearns marking further consolidation in the financial industry. Last Friday, the Federal Reserve with JP Morgan stepped in and bailed them out from going out of business. This was an unprecedented move by the Federal Reserve stepping in and bailing out a failed financial institution.
JP Morgan will buy Bear Stearns for $2 a share which is amazing considering that this stock was trading for around $50 a share just weeks ago. There’s also talk that Lehman Brothers and other large financial institutions might be facing a similar fate.
The U.S. Mint announced that it wants to start melting pennies using steel. According to the U.S. Mint it is now costing them 2 cents to produce every penny and 10 cents to produce every dime. Instead of targeting the real problem which is the Federal Reserve, they’ve decided they want to change the melt content of the coins which completely ignores what’s really happening. The U.S. Mint should be questioning the irrational policies of the Federal Reserve which has caused inflation to run out of control. It’s the Federal Reserve that is causing the metal prices to cost more which is resulting in the production cost of the coins to skyrocket. This is not very difficult to figure out.
There’s no question that inflation is out of control in this country considering that gold, silver, oil and food prices are skyrocketing. In order to provide even more liquidity for the banks, the Federal Reserve made a rare 25 basis point rate cut over the weekend and are poised to potentially cut rates again this week even as early as tomorrow. This is going to be catastrophic for the U.S. Dollar.
With all this going on it is amazing to see characters like George W. Bush and Henry Paulson state that the economy is doing just fine and not to worry about what’s happening. White House Press Secretary Dana Perino also stated at a recent press conference that she is not allowed to talk about the value of the U.S. Dollar and that all questions pertaining to the U.S. Dollar needs to be directed towards the U.S. Treasury. Of course Paulson the U.S. Treasury Secretary has absolutely no control over the value of the U.S. Dollar because that responsibility lies with the Federal Reserve since they set interest rates and fix the value of the currency. Amazingly when Ben Bernanke the head of the Federal Reserve testified in front of Congress, he directed any questions about the value of the U.S. Dollar to the U.S. Treasury despite the fact that he controls the value of money through their policies. This is absurd. They treat us like we are a bunch of idiots, and this is an obvious attempt by the establishment not to talk about the collapsing currency which is one of the biggest issues of the day right now.
There are even tent cities popping up in California. Of course the Federal Reserve can spend billions to bailout banks, but they won’t help the average middle class homeowner that might be thrown out into the streets as a result of what they did through their policies. When will people understand that the Federal Reserve is a private central bank that is merely looking to preserve the interests of the banking cartel?
Bush has confirmed that he will be meeting with the President’s Working Group on Financial Markets otherwise known as the Plunge Protection Team this week. There’s no doubt that this will be an important meeting considering the recent events in the financial markets. It is clear that this group stepped in today to suppress the gold price. After a $20 spike during international trading, gold has lost all of its gains and the U.S. Dollar has seen an amazing recovery. This is totally ridiculous considering the combination of the Bear Stearns news, Greenspan’s outlook in the Financial Times and the rate cut. These people generally step in to move the price of gold down on days when you would normally expect it to move higher in price and today was no exception. Even the most novice of investors can understand that this type of activity makes absolutely no sense without market manipulation.
At this point it seems pretty certain that we are facing an inflationary depression. What’s awful is that much of this is being done by design. The Federal Reserve would prefer to save the banking cartel instead of doing what’s best for the American people. A stable U.S. Dollar would be what’s best for the American people but of course they aren’t moving in that direction. It is likely that we are seeing the start of a domino collapse in the U.S. financial system and it’s going to get ugly. If you haven’t bought gold or silver already you are completely insane. In the next few years we may very well see a point in time where you can buy an ounce of gold for the same value as the Dow Jones Industrial Average. Only when we reach close to those levels will we know that we might be near a top in the gold price and even that is being conservative considering what’s happening.
