Thats who we were.
We were thought of as "fringe," a bunch of "fanatics," and repeatedly admonished to join the main stream.
We declared, "Nay, we shall not, for we shall represent the truth and what is right." And you debated us, and declared us delusional.
Ladies and Gentleman,
When I declared months ago that the economy will tank, and the destruction of our currency was to catch up to us, and that our problems today were the result of a fallacious federal reserve system - I was greeted with mockery and ridicule.
Fast forward to today, we now have one of the most well known investment banks in the world completely evaporate within a 24-hr time period. Why? The Federal Reserve System. Easy Money. "Here, go lend out as much as you can." So the Federal Reserve has every interest to see that this institution stays afloat, its deeply entrenched in the system that simply wont last. So when these institutions lend out to the wazoo - and leverage themselves so highly that when those who took out loans begin to default in large numbers - their cash position evaporates overnight - their assets become of unknown value - their whole business is in chaos. This, my friends, is the bubble bursting loud and clear. And their not alone.
In the next few weeks, the Federal Reserve will attempt to inject Billions of dollars to keep these institutions afloat - providing them with the necessary cash to keep them in operation - to prolong the problem and thus cause a bigger problem I declared earlier, that we need a recession and that the market needs to correct. When the Federal Reserve facilitates extravagance, they need to reap what the sow.
Friends - the Federal Reserve in the next few weeks will make a series of disastrous decisions. If you think things are bad, "you ain't seen nothing yet." Similar to a gambler who bets more and more money in order to recover losses that have already occurred, the Federal Reserve will continue to inject more and more money in an attempt to restore the economy and "get the ball rolling." Unfortunately, this will not work. Our dollar will continue to lose value and the result will be hyperinflation. YES - We will see gas prices of $6 on the current path. The cost of basic goods will sky rocket - we won't be able to import anything from overseas and the entire world economy will come to an absolute standstill.
The only way to restore order in this chaos is to reform the federal reserve. Honestly, the cannot be allowed to continue monetary injections in the economy. As they do this, our dollars are worth progressively less and the world loses confidence in our currency. When the dollar is worth nothing, our country will undoubtedly collapse.
We cannot bail out the interests of a few at the expense of the rest. The Federal Reserve is trying to step in where it can do very little - it wasn't supposed to control the levers of the market to begin with. It is not smarter than the market forces. It can not keep up with today's dynamically changing environment.
So you saw Bear Stearns today seemingly get sold for a song - a measily $2 per share when it was previously worth over $130 many months ago. This fall from grace is not going to be unique - in the next few weeks we will see Lehman Brothers, Merrill Lynch and Goldman Sachs all fall in some way or another. When a CEO declares just days before the collapse that there's "No Liquidity crisis" and 48-hours later there is - you don't know who you can believe.
Ladies and Gentlemen,
I have professed my profound belief that we need to return to the Free Markets and remove unnecessary governmental control and intervention in the capital markets. That we need a sound and secure monetary system that preserves the wealth of the masses and ensures its fair distribution. That labor ought to be rewarded and not taxed. And I told you all who to support and for those very reasons. Irregardless, the only way to resurrect ourselves is to move our country towards these ideals. I urge you to join our cause.
2 comments:
The dollar is tanking because foreign holders of our currency is finally understanding that because our dollar is accepted as legal tender in most countries in this earth of ours we can palm off our excess dollars onto their monetary system. Our dollar is becoming like a hot potato, they will accept it but they don’t want to use it for their commercial transactions.
Right now foreign holders of the dollars are trying to figure out how to unload their horde with out taking a blood bath. Bear Stearns stock is an example of how fast loses can occur. We are entering interesting times.
Certainly. The problem is, no one wants to see our currency go any further down and no one wants to hold it either. The catch-22 as you indicated is that if they start to unload part their holdings, it will result in a continued downward spiral that may very well devalue the rest of their holdings (the Chinese find themselves in this predicament). So it's in no ones interest to have a weak dollar. OPEC has debated the effect of pricing Oil in a currency other than that of the US. They know that doing so would cause such harm to the economy that it would result in a significant drop in demand.
The only way to really stop this madness is to somehow get control of the Fed. They have to stop lowering the interest rate and injecting more dollars. Leave it to the free market - if a Bank is experiencing trouble someone can buy them - this mops up loose dollars and increases its overall value.
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