The Federal Reserve Note that represents the United States’ paper currency is collapsing. It is ironic that the Federal Reserve, a private banking corporation, should control the treasury of the United States but most people think that the Fed is a department of the United States government. The greatest theft in history is being perpetuated on the people as they transfer our wealth through redistribution and to banking interests at the expense of our lifes’ savings.
Once Bretton Woods III concluded its conference in April 2011, the plan to convert the world to a “basket” of world currencies was set into motion. Since this conference concluded, the dollar’s rate of collapse started to spiral downward to historical lows while gold and silver have become the salvation for protecting your assets instead of the dollar. Gold is currently at another record of $1509.00 $1512.50 $1514.00 $1527.30/oz and silver is selling for $47.79/oz.
The chart to the left is the US Dollar Index (DXY:IND) for the past year showing a 16% drop in the value of the dollar since June 2010.
The American people are sitting back and watching what Glenn Beck has described as the greatest theft in history. Who is responsible for this transfer of wealth from the United States?
IMF calls for dollar alternative
The push to replace the U.S. dollar as the world’s reserve currency has been
gaining steam, with one expert arguing that America “must give up on the
dollar.”
In a Financial Timesop-ed, Michael Pettis, a finance professor at
Peking University, said U.S. policymakers should lead the charge to create a
more diverse reserve system, “in which the dollar is simply first among equals.”
The dollar has been the dominant reserve currency for decades, with central banks and other institutions around the world amassing vast reserves.
Pettis argues that this has resulted in dangerous trade imbalances that threaten to destabilize the global economy. He contends that countries such as China have been able to “game the system” by stockpiling dollars, which has allowed them to grab a larger share of global demand for goods and services.
At the same time, the U.S. economy has suffered as money rushes out of the country and into red-hot emerging markets. Pettis said this leaves the United States with a stark choice between further pain in the job market, as demand continues to shift overseas, or adding to already massive deficits to finance domestic growth.
“Americans, in other words, must choose between higher unemployment and higher debt,” Pettis wrote.
A surprising statement from Mr. Pettis who is teaching at Peking University. The Chinese government has consistently undervalued their currency in order take over world market share. The Federal Reserve’s quantitative easing policy has been the main accelerant for the fire sale of the dollar:
Critics Say Fed Policies Devalue the U.S. Dollar
“One of the fundamental problems with the U.S. economy right now is the Federal Reserve thinks the answer to all our economic problems is printing money,” says Stephen Moore, a senior economics writer and editorial board member at the Wall Street Journal. “We haven’t created new jobs from all of this printing of money, but what we have produced is inflation in prices.”
Printing money, or “quantitative easing” as Federal Reserve Chairman Ben Bernanke has termed it, increases the supply of money but critics say it can potentially lower the value of almost anything that can be purchased.
I do know one thing for a fact: the people in power across the world are buying gold. The increase in the price of gold is due more to demand than the devaluation of the dollar. For those conspiracy minded individuals, here is some food for thought:
httpv://www.youtube.com/watch?v=S6vwh5uTclY
I have faith in the American people that we have learned our lesson from the first confiscation of gold by the government. But then again we thought voting Republican in 2010 would have an impact on the country.
David DeGerolamo
