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Thread: Former US Treasury Official - The Fed Is Facing Collapse

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    Former US Treasury Official - The Fed Is Facing Collapse

    Quote, "Former US Treasury Official - The Fed Is Facing Collapse

    July 12, 2013

    Today a former US Treasury Official told King World News that the U.S. Federal Reserve is facing collapse, and is completely trapped at this point. Dr. Paul Craig Roberts also warned that the Fed is continuing to interfere in the gold market as they desperately attempt to implement a new global plan scheme to protect the dollar. Below is what Dr. Roberts had to say in this powerful interview.

    “So they are committed to printing money. Now, what’s the long-term effect of endless printing of money? It’s a house of cards, and at some point it has to blow-up. Usually it (the blow-up) happens through the exchange rate.


    I’m beginning to think that the purpose of the Trans-Pacific (trade) Partnership and the Trans-Atlantic (trade) Partnership that Washington is currently negotiating, is to pull all of the European countries and all of the Asian countries, minus China, into structured trade relationships with the United States. It requires all of those countries to support the (U.S.) dollar. They would be dollar-based trade relationships.


    Dr. Roberts: “I think the decline in gold and silver prices is due to intentional shorting in order to protect the dollar. The Federal Reserve (is trapped), until it can get all of these other protective mechanisms in place, such as these trade agreements. If the dollar price of gold is rising rapidly, it raises questions about the dollar’s exchange rate to other currencies, and thereby threatens the quantitative easing.


    http://kingworldnews.com/kingworldne..._Collapse.html

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    Last edited by Grapeshot; 07-31-2013 at 07:02 AM.
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    Quote Originally Posted by katsung47 View Post
    Quote, "Former US Treasury Official - The Fed Is Facing Collapse

    July 12, 2013

    Today a former US Treasury Official told King World News that the U.S. Federal Reserve is facing collapse, and is completely trapped at this point. Dr. Paul Craig Roberts also warned that the Fed is continuing to interfere in the gold market as they desperately attempt to implement a new global plan scheme to protect the dollar. Below is what Dr. Roberts had to say in this powerful interview.

    “So they are committed to printing money. Now, what’s the long-term effect of endless printing of money? It’s a house of cards, and at some point it has to blow-up. Usually it (the blow-up) happens through the exchange rate.


    I’m beginning to think that the purpose of the Trans-Pacific (trade) Partnership and the Trans-Atlantic (trade) Partnership that Washington is currently negotiating, is to pull all of the European countries and all of the Asian countries, minus China, into structured trade relationships with the United States. It requires all of those countries to support the (U.S.) dollar. They would be dollar-based trade relationships.


    Dr. Roberts: “I think the decline in gold and silver prices is due to intentional shorting in order to protect the dollar. The Federal Reserve (is trapped), until it can get all of these other protective mechanisms in place, such as these trade agreements. If the dollar price of gold is rising rapidly, it raises questions about the dollar’s exchange rate to other currencies, and thereby threatens the quantitative easing.


    http://kingworldnews.com/kingworldne..._Collapse.html

    Fiddlesticks.

    Regarding the very last sentence of the OP, investment guru and liberty-minded fellow, Gary North, has shown that gold has become a commodity in its own right, and rises and falls not in connection with the value of the dollar. I've seen the graphs--they're probably still on his website. Just because gold is going up doesn't mean the dollar is going down, or vice-versa.

    The Federal Reserve is in trouble? Its always been in trouble.

    A hyper-quick tutorial:

    Fractional-reserve banking means banks have only a fraction of the money on hand that they owe to various creditors, say depositors and other banks.

    At one time, the early 1800's in this country for example, banks would print up paper notes and loan them out far in excess of the amount of gold deposited in their vaults by depositors. If there was a bank run by depositors all demanding their deposits at the same time, the bank goes quickly insolvent because the money isn't there.

    But, there was an even bigger problem. If Bank A is printing up way too much paper and loaning it out, and that paper ends up deposited in Bank B, when Bank A goes under, it takes Bank B with it because it cannot pay Bank B the money it owes it.

    So, the prime function of a central bank like the Federal Reserve (The Fed), is to ensure that all banks in the system create money out of thin air evenly, so that none gets ahead of the others too far or too fast and crash the whole system. The entire system is controlled ricketyness. History has proven over and over again that if fractional-reserve bankers are left to their own devices, they will bilk their depositors by over-printing and going under, leaving their depositors without their money. So, the central bank is established to help them bilk the entire economy without crashing themselves and other banks (instead they distort or wreck the entire economy.)

    Today, banks don't print their own paper currency out of thin air. Today, banks create money out of thin air electronically by, for example, making loans like mortgages and so forth.

    The Federal Reserve has two things it can do. It can create money out of thin air, and it can set interest rates.

    Setting the interest rates at next to nothing hasn't done much since the crash '08. So, its been creating money out of thin air. Quantitative Easing is just spin for creating money out of thin air. Currently, The Fed is creating about $85B--that's billion--a month!

    Now, the rest of the world sees that, and knows there are lots more dollars floating around than meaningful production of goods, so the value of the dollar declines. The criminals that run other countries, and other countries' central banks, are not stupid. They know what's going on. They're not going to continue exchanging their currency for dollars at the old rate and get left holding billions of dollars that aren't worth as much.

    So, The Fed is in trouble. Nothing new. Its always been in trouble--it sits atop an entire rickety system just waiting for the right nudge to start falling apart. Its in trouble even when it doesn't know it. For example, see the Spring of '08. Bernanke is on record as saying everything is fine, no problems. Six months later--crrrrraaaaaassh.

    So, where is the collapse referenced in the thread title? It might be just around the corner. But, what are the data that shows that? Don't get me wrong, something big and bad is coming sooner or later. But, the article doesn't say why its imminent and how that conclusion was arrived at. It might be totally true, but unless they supply the data and explain the conclusions, I have no way of knowing.



    I strongly urge all readers to learn about fractional-reserve banking. There are a number of good videos on YouTube. Some bad ones, too. So, you'll have to use your noggin to evaluate them for yourself.

    There is also a ton of good info in the minority report from Reagan's gold commission entitled The Case for Gold.

    And, for day-to-day developments, a couple good websites are Gary North's, and Economic Policy Journal.

    Shay's Rebellion (1785-ish) occurred because of financial shenanigans when speculators bought up large amounts of seriously depreciated paper currency at pennies on the dollar, and then convinced the Massachussetts government to redeem the notes at face value. The working class got stiffed once when the paper notes were issued and then depreciated to nothing. And, they saw they were gonna get stiffed again on the same paper when heavy tax increases were proposed to cover redeeming the notes at face value to the politically connected speculators. They rebelled--with guns.

    Today's fractional-reserve bankers have refined that game. They've got it nuanced. They've got it balanced. They've got it covered up in deceptive spin language. They sneak into your bank account and pocket every nite and steal a little of the value of your money by causing price inflation, or currency exchange rate problems making your imported-goods purchases more expensive. They distort the value of your home--if you're under water its because of fractional-reserve banking. If your home lost tens of thousands of dollars in value its because of fraction-reserve banking. They received "their" income from the machinations. You got stiffed.

    They're parasites. They're always distorting and bleeding the economy. They're worse than parasites--they're parasites that control the host economically (us). They cause the bubbles that burst and crash. Trust me for just a moment--you want to know about this. Who cares about having guns to shoot despotic politicians? That's minor stuff. You can set up any government you want, as tied down with constitutional restraints as you want. But, leave a few fractional-reserve bankers running loose, and you'll end up right back in economic chains. Thomas Jefferson understood this. That's why he was so opposed to the new fedgov chartering a controlling bank. Andrew Jackson understood this. That's why he fought tooth-and-nail to prevent the re-chartering of the controlling bank. The guys who control the creation of money can do far more damage than government.
    Last edited by Citizen; 07-31-2013 at 03:49 PM.
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