Hyper-inflation

[sprinter]

http://theeconomiccollapseblog.com/archives/unelected-unaccountable-unrepentant-the-federal-reserve-is-using-your-money-to-bail-out-european-commercial-banks-once-again

 

Unelected, Unaccountable, Unrepentant: The Federal Reserve Is Using Your Money To Bail Out European Commercial Banks Once Again

 

 

 

For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to. Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress. Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit. Does that sound preposterous? Well, such an organization actually exists. It is called the Federal Reserve, and today we found out that once again the Fed is going to be taking huge piles of your money and loaning it to commercial banks in Europe. The Congress cannot overrule this decision. Neither can Barack Obama. Because it has so much power, many refer to the Federal Reserve as "the fourth branch of government", but unlike the other three branches of government, there are basically no significant "checks and balances" on the Federal Reserve. If you don't like the fact that the Federal Reserve is racing in to help big foreign banks survive the European debt crisis that is just too bad. The Federal Reserve pretty much gets to do whatever it wants to do, and the folks over at the Fed simply do not care whether you like that or not.

 

So what in the world just happened today? The following is how an article on CNBC explained it....

 

Just ahead of the Wall Street open Thursday, the European Central Bank, along with the U.S. Federal Reserve, Bank of England, Bank of Japan and Swiss National Bank announced they would offer three-month dollar loans to Europe's commercial banks, easing dollar funding constraints.

It must be nice to do whatever you want without having to get the approval of anyone else.

 

What do you think Barack Obama would give for such power right about now?

 

The Federal Reserve and other major central banks around the world decided that lending big European banks gigantic piles of dollars would be a good idea, so they are just doing it.

 

No debate, no votes and no democracy - they just tell us how things are going to be and that is that.

 

It is a bit ironic that all of this happened on the third anniversary of the collapse of Lehman Brothers. It is almost as if the central bankers of the world are trying to send some sort of a message.

 

So how much money is going to be loaned out?

 

Well, according to an article in The Daily Mail, big European banks are going to be able to borrow an "unlimited" amount of money....

 

The deal announced yesterday means banks will be able to borrow ‘any amount’ of money in three separate auctions in October, November and December. Banks will have to put up collateral, or security, to tap the emergency funds.

Wow - I wish someone would offer to lend me an "unlimited" amount of money.

 

But of course this really is not going to solve anything in the long run. You can't solve a raging debt problem with more debt.

 

Yes, it will help the big European banks with their short-term liquidity problems, but it will do nothing to fix the long-term structural problems that are tearing Europe to pieces.

 

Win Thin, a senior currency strategist at Brown Brothers Harriman, said essentially the same thing to CNBC today....

 

"They're taking care of the symptoms, but the underlying illness is still out there. On the margin, it's positive. Until Greece defaults and we clear this whole thing up, they're still treading water"

So, no, the financial problems of Europe have not been solved.

 

Just think of this latest move as a temporary band-aid.

 

So why get upset about it?

 

Well, what all of this shows is just how arrogant the Federal Reserve is.

 

The Federal Reserve gets to throw around trillions of dollars without any accountability to the American people.

 

As I have written about previously, the Federal Reserve made $16.1 trillion in secret loans to their friends during the last financial crisis.

 

This was revealed in a GAO report, and members of Congress such as Ron Paul and Bernie Sanders tried to get people to pay attention to this. The following is a statement about this report that was taken from the official website of Senator Sanders....

 

"As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world"

So how much of that money went overseas? Well, it turns out that approximately $3.08 trillion of that money was loaned to big banks and major financial institutions in Europe and Asia.

 

Barack Obama can't lend trillions of dollars to foreign banks.

 

So why does the Federal Reserve get to do it?

 

Sadly, most Americans know very little about the Federal Reserve. In the United States today, most Americans graduate from high school without ever learning much of anything about the Fed.

 

But if you really want to understand what is going on with our economy, it is absolutely critical that you understand the Federal Reserve.

 

The following are some more reasons why you should be upset about what the Federal Reserve has been doing....

 

*The Federal Reserve is a perpetual debt machine. Today, the U.S. national debt is 4700 times larger than it was when the Federal Reserve was created back in 1913.

 

*The Federal Reserve has recently been actually paying banks not to make loans. Right now banks can park money at the Federal Reserve and make risk-free income without having to make loans to the American people.

 

*Current Federal Reserve Chairman Ben Bernanke has a track record of failure that is legendary, and yet George W. Bush and Barack Obama both backed him 100%.

 

*The Federal Reserve system is designed to create inflation. The truth is that the United States has only had a persistent, ongoing problem with inflation since the Federal Reserve was created back in 1913.

 

*Since 2008, what the Federal Reserve has been doing to our money supply has been absolutely insane. Eventually this is going to have very serious consequences for us.

 

[suv_guy_19]

Well what do you want them to do, let the world go straight to hell?

[fmccap]

It's sort of long but has many valid points and I thought very well worth a read.

 

Hyperinflation Nonsense in Multiple Places

[Aces]

It's sort of long but has many valid points and I thought very well worth a read.

 

Hyperinflation Nonsense in Multiple Places

 

 

People that believe this nonsense and other crap from the far right will not be persuaded to listen to the truth by facts.

 

They are cult members.

 

And ,apparently they have difficulty reading or understanding what they read.

Edited September 17, 2011 by Aces

[FiredMotorCompany]

People that believe this nonsense and other crap from the far right will not be persuaded to listen to the truth by facts.

 

They are cult members.

 

That's the pot calling the kettle black!!!!!

 

 

From your own cited author...

Quote:

---

Just because someone writes a paper does not make it credible.

---

Edited September 17, 2011 by FiredMotorCompany

[Aces]

That's the pot calling the kettle black!!!!!

 

 

From your own cited author...

Quote:

---

Just because someone writes a paper does not make it credible.

---

 

 

I did not cite anyone.

 

Are you confused?

 

Perhaps you mean the author someone else cited?

[Edstock]

Hyperinflation? I don't think so. This is hyperinflation: Germany, 1923. Today, check out Zimbabwe, formerly prosperous Rhodesia, that has been run into the ground by Robert Mugabe. A roll of toilet paper is dwarfed by the pile of money necessary to buy it. THAT's hyper-inflation.

 

 

 

 

[FiredMotorCompany]

I did not cite anyone.

 

Are you confused?

 

Perhaps you mean the author someone else cited?

 

I stand corrected. I intended to make note that your comment was in response to another's citation. But, were you not in support of the poster AND the author? If so, my comment stands.

[Bored of Pisteon]

I hope every one of you has a copy of this book:

 

 

This book has gone into it's 30th printing as of April and now in it's 5th editon. Updated for the events that happened up thru last year.

[FiredMotorCompany]

I hope every one of you has a copy of this book:

 

 

This book has gone into it's 30th printing as of April and now in it's 5th editon. Updated for the events that happened up thru last year.

 

HERETIC!!!!!!!

You know this will lead to you being attacked by the majority of lemmings, don't you.

[FiredMotorCompany]

No it will only convince the rest of us that he's just a cult follower and his own breed of Lemming

 

Especially when you try to convince me i should read something because it has had 30 printings. Should i read something because everyone else reads it? That would be a definition of Lemming to me.

 

But hey its been a while since we got the Libertarian Talking Points. Thanks for playing.

 

I smell a lemming.

[jpd80]

Hyperinflation is when the official interest rate exceeds 100%, that isn't happening, Inflation over 10% isn't happening.

Some here need to take a cold shower and stop screaming like chicken little.

 

I'd say that the biggest mistake by the uninformed is counting out US economy because politicians don't seem to be at a point

of completely address the US government debt with a long term strategy. Immediate control measures are in place and further

decisions and votes will be taken in the next six to twelve months as the US slowly stops the bleeding and stabilizes budgets.

 

This all takes time and those wanting instant gratification are going to be very disappointed because it takes time to stop going

in the wrong direction before you switch to the right one. I recall similar comments about Ford and its massive debt in 2006..

 

Give the US time, I think that level of debt is preferable to a massive down the plug hole depression,

so many do not comprehend what was so narrowly avoided.................

Edited September 18, 2011 by jpd80

[sprinter]

Hyperinflation is when the official interest rate exceeds 100%, that isn't happening, Inflation over 10% isn't happening.

Some here need to take a cold shower and stop screaming like chicken little.

 

 

Interest rates have nothing to do with inflation. Inflation is caused by increasing the money supply. Where do you think the government has been getting their money from since China is not buying our debt anymore?

 

Hyperinflations are caused by extremely rapid growth in the supply of “paper” money. They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for a large stream of government expenditures. In effect, inflation is a form of taxation in which the government gains at the expense of those who hold money while its value is declining. Hyperinflations are very large taxation schemes.

http://www.econlib.org/library/Enc/Hyperinflation.html

 

Commodity prices took a huge jump last last year but according to the government we have little inflation? Geez, wonder who is lying? As long as you don't eat or need any type of energy, that might be somewhat true. But try eating or driving your new TV to work.

http://www.indexmundi.com/commodities/

 

And to answer my 'buddy' up north, we are already headed that direction (hell). If the Bric nations can manipulate the worlds reserve currency to a basket of currencys, and eliminate to dominate 'dollar' we will then arrived.

[sprinter]

I bet your wife does all the shopping. Your charts appear to be based upon the government cpi index which leaves out food and energy in their calculation. The government lies to suit their own needs. Low inflation rate mean no cost of living increases for social security.

 

All you have to do is look at the debt this country owes and how fast it is increasing. Do you realize where this 'money from nothing' is coming from and the future consequences of over spending?

[jpd80]

I bet your wife does all the shopping. Your charts appear to be based upon the government cpi index which leaves out food and energy in their calculation. The government lies to suit their own needs. Low inflation rate mean no cost of living increases for social security.

 

All you have to do is look at the debt this country owes and how fast it is increasing. Do you realize where this 'money from nothing' is coming from and the future consequences of over spending?

Do you realize that a great part in the rise of debt as a percentage of GDP comes from the slow down in the economy,

as recovery takes gold and GDP recovers, the percentage will fall back below 80% and give the government breathing space.

 

True, changes have to be made in spending levels but with underlying inflation, that $14 trillion debt will become the equivalent

of much less in ten years time. So if the government first stabilizes budget spending and then sets a course to steadily pay down

the debt, then all is well.

 

Doing the chicken little thin and implying the US is on the verge of collapse does your cause no good at all,

changes are being mde but the effects will take a good 12-18 months to roll through but you cna be assured

that the next government will get all the credit...

[jpd80]

LOL. he's read about it in one of the Glenn Beck emails or something and he knows it all now.

Glen Beck pushes a personal agenda and sets the whole argument up around convincing the viewers

that his POV is the only correct one. start with a preconceived notion and then layering facts around

those assumptions, all thse terrible things will happen iof you don't listen to me.

 

And none of this has anything to do with his boss, Rupert murdoch being the Arc-htypical political meddler / king maker?

Murdoch was responsible for changes in opinion that changed elections in Australia in the 1970s and 1980s.

His form and the depths his sycophant minions will go to are well known to us in Australia...

Edited September 20, 2011 by jpd80

[sprinter]

You’re welcome Jack. Some more advice, you are wasting your money on a college degree, you will never get anywhere with it. All you ever need to remember is "Welcome to Walmart"

 

Supermarket shoppers are getting less for their money as big brands reduce the size of their products, consumer watchdogs warn.

 

The smaller groceries still cost the same at the checkout – a tactic that has reached epidemic proportions.

 

Which? has identified a raft of everyday products subjected to the ‘grocery shrink-ray’ which sees shoppers paying the same amount for an item, yet receiving less. Manufacturers say they are simply responding to increases in energy, transport and ingredients costs.

 

But the practice, effectively a price rise by stealth and first highlighted by the Mail in 2001, will not go down well with householders, whose cost of living continues to soar while their disposable income fails to keep up.

 

Read more: http://www.dailymail.co.uk/news/article-2039052/Big-brands-cut-size-products--price-remains-same.html#ixzz1YSJnVgCF

 

But let me try and explain to you on a simpler level since you are a 'college boy'. I never said we are in a period of hyperinflation at this present time. But with this country borrowing and spending practice is paving the road to that destination. Printing money causes inflation. Our government is trying to hide the fact by not reporting the M3 supply since 2006. The cause of hyperinflation is excessive printing of money, period. Where do you think the "money" came from for QE1 and QE2, plus soon to be released before the election QE3? Germany and lately Zimbabwe, experienced a starting point in time where their hyperinflation took over. And if you would have taken more notes in history you would have remembered the cause.

 

And good luck with your degree.

 

 

It was a bit of a shock, losing all expectations. For years—all my life, really—parents, teachers, and guidance counselors had told me that if I went to a good college and did well, I would be able to find a job after graduation that would, with a little ladder-climbing, keep me comfortable and financially secure. After I graduated in May 2009, in political science, I moved back home to St. Louis to start my career, but there simply were no jobs to be found.

 

Over several months, I sent out more than 500 résumés for all sorts of jobs all over the country, but I got only two interviews and no offers.

 

I couldn't find a job, but neither could anyone I knew. Now, more than a year after graduation, most of my college friends still live at home, and many of those who have moved out are borrowing money from their parents to eat and pay rent. A few have internships, but most of those are unpaid, and few are likely to lead to jobs. Two friends who studied psychology for four years now work off the books at a sandwich shop. Another, who got her master's in development studies from Cambridge, became a barista at Starbucks.

 

Some are applying to grad school just to have something to do, but the prospect of racking up thousands more dollars in student debt is crushing. The rest are still looking, sending out résumés, going to career fairs, volunteering for experience, and networking. Some have given up. We are a whole generation graduating into a job market that has no room for us.

 

So I moved to India.

http://chronicle.com/article/What-I-Did-When-I-Couldnt/66281/

 

Or if you were a woman:

http://redtape.msnbc.msn.com/_news/2011/09/13/7730301-lawyer-turns-topless-dancer-to-pay-the-bills

[Trimdingman]

Do you realize that a great part in the rise of debt as a percentage of GDP comes from the slow down in the economy,

as recovery takes gold and GDP recovers, the percentage will fall back below 80% and give the government breathing space.

 

True, changes have to be made in spending levels but with underlying inflation, that $14 trillion debt will become the equivalent

of much less in ten years time. So if the government first stabilizes budget spending and then sets a course to steadily pay down

the debt, then all is well.

 

Doing the chicken little thin and implying the US is on the verge of collapse does your cause no good at all,

changes are being mde but the effects will take a good 12-18 months to roll through but you cna be assured

that the next government will get all the credit...

 

 

The government is borrowing 40 cents of every dollar it spends. The government's austerity plan over 10 years is equal to one year's budget deficit. If successful, the debt will only increase by 15 trillion, or more than double what it is now. I did not factor in any compounding or the chance that the government will underestimate it's spending, which it has not failed to do so far. On top of that, you have the retiring baby boomers, who will go from big tax-payers to big pension collectors, and big free health care users. No problem. We will tax the rich. I can see them packing now, and shutting down their operations. Less revenue, and more to pay out. Blame it on the corporations. Government doesn't care if you starve as long as they don't get the blame. Don't kid yourself. They are to blame.

[sprinter]

More money going down the rabbit hole

 

http://www.cnbc.com/id/44556652

Market expectations are high that the Fed will announce a new program — dubbed "operation twist" — at the end of its two-day meeting Wednesday.

 

 

"Twist" is different than the much larger scale "QE2" quantitative easing program which involved the purchase of $600 billion in Treasury securities. Fed watchers expect this program to raise the duration of the securities the Fed holds, not the amount. The program, in theory, could reduce long-term interest rates as the Fed buys more securities in the middle and longer end of the yield curve.

 

"It's not their job to bail out the whole world, but next week there's high expectations for the Fed," said Nomura Americas Treasury strategist George Goncalves. The Fed this past week joined with the European Central Bank and others to provide more dollar liquidity for euro zone financial institutions.

 

 

Fed Twists Again

 

But the Fed remains a top focus for markets. Pimco's Tony Crescenzi said the wobbling economy is a factor that will help push the Fed into "operation twist," named for a Fed program from the early 1960s.

 

"The Fed will likely attempt to spur another leap of faith, pushing investors to move out the risk spectrum and away form riskless assets, and deposits, to support asset prices, boost wealth and aid the deleveraging process," said Crescenzi, senior strategist at Pimco.

 

Crescenzi said the Fed could direct its current Treasury purchases toward the long end of the curve. It currently invests roughly $20 billion per month in Treasurys, using the runoff from its mortgage portfolio. Or, it could decide to sell some of its shorter duration holdings and repurchase longer duration securities.

 

"Bernanke has done nothing to dissuade markets of the notion that there will be some form of 'operation twist.' He had opportunities. Therefore, the market believes there will be a form of 'operation twist' next week," said Crescenzi.

 

 

Helicopter Ben will strike (out) again

[jpd80]

The government is borrowing 40 cents of every dollar it spends. The government's austerity plan over 10 years is equal to one year's budget deficit. If successful, the debt will only increase by 15 trillion, or more than double what it is now. I did not factor in any compounding or the chance that the government will underestimate it's spending, which it has not failed to do so far. On top of that, you have the retiring baby boomers, who will go from big tax-payers to big pension collectors, and big free health care users. No problem. We will tax the rich. I can see them packing now, and shutting down their operations. Less revenue, and more to pay out. Blame it on the corporations. Government doesn't care if you starve as long as they don't get the blame. Don't kid yourself. They are to blame.

You're trying to extrapolate the exceptional borrowings that have occurred during the financial crisis

into the norm we can expect over the next ten years, that is not going to happen for two reasons:

 

1) The amount of borrowings needed is going to sharply decrease as the government is forced to balance budgets

2) the amount of borrowings has reached 90% of GDP, further borrowings wil spike a drop in credit rating and increases in interest.

 

The IMF has privately warned US treasury to get its house in order and must move back from the edge before they stage a back door intervention.

[Bored of Pisteon]

I told you Bored was...

Oh, yeah... I remember you from that area of the web-site... I suggest you drink your kool-aid and go back to play with the kids over there. :koolaid: :koolaid: :koolaid: :koolaid: :koolaid: :koolaid: :koolaid: :koolaid:

[Bored of Pisteon]

You’re welcome Jack. Some more advice, you are wasting your money on a college degree, you will never get anywhere with it. All you ever need to remember is "Welcome to Walmart"

 

 

 

But let me try and explain to you on a simpler level since you are a 'college boy'. I never said we are in a period of hyperinflation at this present time. But with this country borrowing and spending practice is paving the road to that destination. Printing money causes inflation. Our government is trying to hide the fact by not reporting the M3 supply since 2006. The cause of hyperinflation is excessive printing of money, period. Where do you think the "money" came from for QE1 and QE2, plus soon to be released before the election QE3? Germany and lately Zimbabwe, experienced a starting point in time where their hyperinflation took over. And if you would have taken more notes in history you would have remembered the cause.

 

And good luck with your degree.

 

 

 

 

 

 

http://chronicle.com/article/What-I-Did-When-I-Couldnt/66281/

 

Or if you were a woman:

http://redtape.msnbc.msn.com/_news/2011/09/13/7730301-lawyer-turns-topless-dancer-to-pay-the-bills

 

I laugh at these people who think their $100,000 piece of paper mounted in a frame is valuable and will get them anywhere. Let's see... If I remember what I had in a signature quote of mine a long time ago: "EDUCATION IS A BIG WASTE OF MONEY AND YOU'RE IN DEBT TO YOUR EYEBALLS ANYWAY, SO WHAT GOOD IS IT?"

 

I rest my case. :beerchug:

 

Oh, by the way Sprinter. The information on how much money was printed since 2006 is out there. You have to dig deep and crunch all the numbers.

 

Example: Those new unreleased 2009 $100 bills that had the production problems with the paper; They're still printing them and no release date has been set but from what I added up just in face value on them alone is worth an estimated $140+ BILLION DOLLARS. THAT'S RIGHT $140 BILLION IN FACE VALUE SITTING IN VAULTS SOMEWHERE WAITING TO GET "MONETIZED"

Edited September 20, 2011 by Bored of Pisteon

[Bored of Pisteon]

No it will only convince the rest of us that he's just a cult follower and his own breed of Lemming

 

Especially when you try to convince me i should read something because it has had 30 printings. Should i read something because everyone else reads it? That would be a definition of Lemming to me.

 

But hey its been a while since we got the Libertarian Talking Points. Thanks for playing.

 

 

I also seem to forget that you get your :banmolest: "talking points" :banmolest: from your union. I also rest my case.

Edited September 20, 2011 by Bored of Pisteon

[Bored of Pisteon]

LOL. he's read about it in one of the Glenn Beck emails or something and he knows it all now.

 

That's too bad you said that. I knew about that book since the mid 1990's and have an older version of it, when the author was on a local talk show on radio here in the Metro Detroit area.

 

Guess your statement just got flung right back in your face! :fan: :fan: :fan: :fan: :fan: :fan: :fan: :fan:

[Trimdingman]

You're trying to extrapolate the exceptional borrowings that have occurred during the financial crisis

into the norm we can expect over the next ten years, that is not going to happen for two reasons:

 

1) The amount of borrowings needed is going to sharply decrease as the government is forced to balance budgets

2) the amount of borrowings has reached 90% of GDP, further borrowings wil spike a drop in credit rating and increases in interest.

 

The IMF has privately warned US treasury to get its house in order and must move back from the edge before they stage a back door intervention.

 

To balance the budget, the government would have to eliminate job-killing regulations and reduce entitlements. Fifty per cent of the people pay no taxes and therefore in one way or another recieve entitlements. It would be political suicide. The plan laid out is to tax the rich. Even if the rich went along with this, it would only make a small dent in the deficit. They will be moving their businesses out of the country at an even faster rate. There will be less revenue, and more entitlements to pay because of the employees that will be laid off. There is a huge bubble of baby boomers retiring that is just starting now. Baby boomers are the largest tax-payers and consumers. Now they will be recieving entitlements, and not paying taxes and not consuming those big ticket items. They will be downsizing; selling the 3000 square foot palace for the 1500 square foot townhouse. Interest rates have nowhere to go but up. When they do, the deficit will balloon. The financial crisis is on-going and getting worse. It is not something that just happened, like a tsunami. We are in the opening stages of a Great Depression; a lot worse than the last one. The government can't prevent it. All they can do is delay and mask it, but the inevitable will only be worse when it comes as a result. How it plays out is impossible to predict, but it will be nasty. It could be a breakdown of civilization, all-out war, with our side winning or losing, anarchy a-la-Road Warrior, concentration camps, dog-eat-dog famine; pick your poison.