The Great Depression, Part Deux

I've been trading stocks and options most of my adult life. I stopped two years ago and parked all of my money in treasuries. In 2008, I looked like a rock star. This year, not so much.

You ever heard that saying, "the stock market predicts economic activity, six months in advance?" The stock market began this big recovery in March. That was seven months ago. Ok, so where is this big recovery? And how come I ain't feeling it?

Gosh, with overnight lending rates at zero, you'd think business would be expanding at unprecedented levels. Taking out cheap loans. And how come gold is setting all time highs, trading at 1040?

Welcome to the Great Depression, Part Deux. It was 80 years in the making. So what I am going to try to accomplish here is to give you a complete and truthful condensed version of what has happened thus far.

The most glaring difference between 1929 and 2008 is the willingness of government to absolutely lie to you. To soothe you and reassure you, patting you on the back with one hand and removing your wallet with the other hand. The other glaring difference is the Federal Reserve bank's willingness to steal from you as well. Giving away taxpayer money with one hand, and diluting the value of your fiat currency by flooding the marketplace with worthless and non existent currency with the other.

Gold is setting all time highs. You are witnessing the death of the dollar as the world's currency of reserve and investment of last resort. It is fini, les feat compleat. Somewhere in the distance, I hear the fat lady singing.

The best (with some exception for editorial spin) and technically accurate and condensed version of the events leading up to this calculated heist are summed up in an online article by the Canadian Free Press, "Behind the Wizard's Curtain."

http://www.canadafreepress.com/index.php/article/9454

In order to understand what has happened, you really have to school yourself first.

Having done that, you must understand that the Federal Reserve Bank of The United States is your greatest enemy. They are private, they operate above the law, and they are unaudited. You must also understand that the First Great Depression was prolonged because of the gold standard. We simply could not print money that was not backed by gold in 1929. This constraint led to deflation from 1929-1933.

Deflation was the real enemy of bankers and debt holders. Too few dollars chasing enormous levels of debt. Prices for everything, from food to land, had to decrease dramatically to levels where demand and real dollar supply could meet.

Your current Fed Chair, Ben Bernanke, knows this. He said so in a speech in 2002.

The Federal Reserve Board eagle logo links to home page
Remarks by Governor Ben S. Bernanke
Before the National Economists Club, Washington, D.C.
November 21, 2002
Deflation: Making Sure It Doesn't happen Here

So in order to manipulate their exterior world into something more palatable and politically expedient, the bankers and the politicians, got off the gold standard in 1933 and used printing presses to print a bunch of worthless currency and get us out of that depression.

They are trying the same tactic in 2009. So why won't it work?

Because the dollar has already been devalued and rendered valueless. In 1933, a dollar was still fairly valued at 95 cents or so. By 2008, a dollar was worth about 4 cents. The effects of 75 years worth of manipulation by the Federal Reserve's fractional banking system, dilution of the money supply by adding mountains of unbacked fiat currency and debt, has rendered the U.S. dollar worthless already. Printing more of them will only add to it's steepening and hasty decline and eventual death.

Picture a beautiful new born baby in 1933. Picture that same human being 76 years later. His name is dollar. His lifespan is about over.

That is why the gold bugs are stilling buying gold. It's why China has been buying gold. It is why the Federal Reserve has been secretly trying to manipulate and suppress the value of gold through swaps. Remember, the Fed is unaudited. Gold has value. It is the Federal Reserve's enemy.

businesswire

Federal Reserve Admits Hiding Gold Swap Arrangements, GATA Says


  • Press Release
  • Source: Gold Anti-Trust Action Committee Inc.
  • On 9:30 am EDT, Wednesday September 23, 2009

MANCHESTER, Conn.--(BUSINESS WIRE)--The Federal Reserve System has disclosed to the Gold Anti-Trust Action Committee Inc. that it has gold swap arrangements with foreign banks that it does not want the public to know about.

The disclosure, GATA says, contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally.

So if you've managed to get this far, read the links, and are wondering just WTF is next, I've got good news. Grab a cup of coffee, or a beer, or a valium, and we'll wrap this whole thing up in The Great Depression, Part Deux Deux.

Comments

Popular posts from this blog

The "Keeping Time" Has Arrived- The Sunday Collage

The Killing of Craig Robertson- The Sunday Collage

The United States- The World's Biggest Banana Republic