Monday, February 4, 2013

The Ultimate Failure Of Ponzi Economics


There will be no mention of "failure" or "Ponzi" by the ever blathering "we're in a recovery" mainstream financial news media.  When the "big money" sees the economy for what it is, why won't anybody listen to them?  Here's your chance!

Listen to what the five men below have to say about "our economy".  I think you'll agree, IT'S A LIE!  The CON-fidence men that manipulate our economy 24/7 at the Fed, the Treasury, JP Morgan, Goldman Sachs, et al, will be exposed as traitors...all in good time.

Is it just a coincidence that this week begins with "new" news of "economic trouble in Europe" just as the US Dollar teeters on support going back to the last round of "bad news" out of Europe in February 2012?  I think not.  If the Dollar tips over here, the Greatest Ponzi of all time could well go "POOF!", and the prices paid for Precious Metals, Energy, and Food will skyrocket.










Money for Nothin’ 
Writing Checks for Free
 


It was Milton Friedman, not Ben Bernanke, who first made reference to dropping money from helicopters in order to prevent deflation. Bernanke’s now famous “helicopter speech” in 2002, however, was no less enthusiastically supportive of the concept. In it, he boldly previewed the almost unimaginable policy solutions that would follow the black swan financial meltdown in 2008: policy rates at zero for an extended period of time; expanding the menu of assets that the Fed buys beyond Treasuries; and of course quantitative easing purchases of an almost unlimited amount should they be needed. These weren’t Bernanke innovations – nor was the term QE. Many of them had been applied by policy authorities in the late 1930s and ‘40s as well as Japan in recent years. Yet the then Fed Governor’s rather blatant support of monetary policy to come should have been a signal to investors that he would be willing to pilot a helicopter should the takeoff be necessary. “Like gold,” he said, “U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.
Mr. Bernanke never provided additional clarity as to what he meant by “no cost.” Perhaps he was referring to zero-bound interest rates, although at the time in 2002, 10-year Treasuries were at 4%. Or perhaps he knew something that American citizens, their political representatives, and almost all investors still don’t know: that quantitative easing – the purchase of Treasury and Agency mortgage obligations from the private sector – IS essentially costless in a number of ways. That might strike almost all of us as rather incredible – writing checks for free – but that in effect is what a central bank does. Yet if ordinary citizens and corporations can’t overdraft their accounts without criminal liability, how can the Fed or the European Central Bank or any central bank get away with printing “electronic money” and distributing it via helicopter flyovers in the trillions and trillions of dollars?
Well, the answer is sort of complicated but then it’s sort of simple: They just make it up. When the Fed now writes $85 billion of checks to buy Treasuries and mortgages every month, they really have nothing in the “bank” to back them. Supposedly they own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust. When a primary dealer such as J.P. Morgan or Bank of America sells its Treasuries to the Fed, it gets a “credit” in its account with the Fed, known as “reserves.” It can spend those reserves for something else, but then another bank gets a credit for its reserves and so on and so on. The Fed has told its member banks “Trust me, we will always honor your reserves,” and so the banks do, and corporations and ordinary citizens trust the banks, and “the beat goes on,” as Sonny and Cher sang. $54 trillion of credit in the U.S. financial system based upon trusting a central bank with nothing in the vault to back it up. Amazing!

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Eric Sprott - We Are In The Biggest Ponzi Scheme Of All-Time
"...with some simple analysis of where we are, I mean we are in the biggest Ponzi scheme of all-time.  We are just printing money and people have to realize it’s not a winning proposition.

We have been doing this since 2008.  We get program after program.  We’ve been doing it since 2000 in Japan.  All to no effect.  All we end up with is a stretched out balance sheet.  Sooner or later we are going to pay the piper for it, and when we pay the piper, you better be in gold and silver, other precious metals and real things.”

Eric King:  “You said we are in the biggest Ponzi scheme of all-time, is 2013 the year that starts to unwind?”

Sprott:  “Well, that really is the $64 million question isn’t it?  We have to be getting close.  Look at the degree of printing now.  We’re up by a substantive amount whether it’s the Japanese, or every month we seem to have a new program with the doubling of the purchases by the Fed that start this month, or Mr. Monti, ‘We’re going to do everything we have to do.’  

It’s totally ridiculous.  If people want to try to fade the Fed and play the game, you can do that.  I can guarantee you in the long-run it will all fail.  Think about what’s going on in Europe today.  They are back in recession.  We have all of these programs and we’re back in a deep recession.

So these policies don’t work.  They never were going to work.  Everyone wants to believe in them, but they are not going to work.  The only thing that’s going to work in the long-run is that real assets will outperform paper assets.”

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In the following three videos the Ponzi that we call our economy is exposed along with those that have built it in an attempt to steal the wealth of America:


"The Federal Reserve Is a Cartel" - G. Edward Griffin

G. Edward Griffin discusses the trajectory of the US dollar and the country's political direction with Casey Research Chief Metals & Mining Strategist Louis James.






The Treasury and the Fed are Robbing Savers - James Rickards

Casey Research's Chief Technology Investment Strategist, Alex Daley sits down with James Rickards, Senior Managing Director at Tangent Capital Partners and author of "Currency Wars", at the latest Casey Research Conference.






David Stockman - Conversations with Casey

Casey Research's Chief Technology Investment Strategist Alex Daley sits down with David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan.


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