Fresh Assault On The US Dollar

Reading between the lines, I'd venture to say the economy is a lot worse than anyone is willing to admit. Even Burnanke seems to be using every turn of phrase possible to minimize the impact of his words, going so far as to claim that another rate cut will "support growth and...provide adequate insurance against downside risks." Excuse me? The last time I checked (today), the dollar was at historic lows against the Euro AP Article Here.

This isn't rocket science. More money in (digital) circulation makes the value of the dollar go down. Is this prudent? As I pointed out in the article below, the banks can't pay their bills. Birnanke is feeding the destruction of the American financial system and covering it up with sobering sound bites.

Citing "less favorable" economic forecasts, The Fed chief "suggest(ed) sluggish economic activity in the near term," required a further rate cut. What about inflation? Bernanke assures us that he realizes "the Fed must keep a close eye on inflation." Is he serious? To suggest that a rate cut has even a slight chance of non-inflationary results is preposterous. The prices for the most important commodities are all up. Grain (food), and power (driving, electricity) are up already. These are the basic meccesities of the average American. The dollar is at an historic low. These two factors represent a huge burden on the average American.

Add to that the comments by Greenspan to "de-peg" the dollar from the price of oil http://www.infowars.com/?p=464 , and it becomes clear, the Elite are ruining the dollar on purpose.

Bank Closings/Mergers/Bailouts - Signals of Doom?

While the press talks about "streamlining" the banking industry, and CEO's worry about "relationship management," the global financial markets are being further consolidated into the hands of The Elite. Within the last few weeks alone, an unprecidented number of banks are merging, others are closing outright, and bailouts and talks of bailouts are front page news.

Even Bank of America, the largest bank in the United States, quietly asked the Federal Government to protect the $700 billion plus mortgages that are at “moderate to high risk” of default within five years See Article Here. The fallout of the US sub-prime debacle is forcing banks to make tough decisions, and the results of any decision are bound to have serious implications for the economy. But what really stands out is the Ponzi nature of this situation.

Lets look at the banking industry. A bank, as a member of the Federal Reserve, place deposits with the Fed (our money) and the fed lends the bank an amount of money equal to ten times the deposits. Then the bank lends that money at a higher rate to its customers. Fractional banking ensures that member banks are obligated to go through the Federal Reserve in order to stay in business. The Fed can increase and decrease the money supply and the value of money.

The sub-prime mortgages issued by the member banks and their affiliates are merely loans the bank took from the Fed, so the Fed not only knows, but is fueling the ability of member banks to make bad loans. The Fed had to know the loans would go south because of the lack of any meaningful underwriting attached to them.

Why would the Federal Reserve violate its mandate to protect the solvency of the US money supply? The answer lies in the rash of mergers witnessed worldwide. Banks are becoming centralized. Even prior to the current mortgage situation, US bank mergers were underway. Now with the created emergency of the sub-prime mortgage issue, the Federal Reserve, and central banks worldwide, are in aposition to gobble up assets and control at fire sale prices.

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http://www.forbes.com/fdc/welcome_mjx.shtml
http://http//www.theglobeandmail.com/servlet/story/LAC.20080221.RWAUGH21/TPStory/Business
http://www.infowars.com/articles/economy/are_banks_in_trouble.htm