QEII and the permanent crisis
Federal Reserve Bank Chairman Bernanke’s quantitative easing (purchase of Treasury bonds) inflates money supply, threatens devaluation of dollar, supports Democrats’ overspending, skews normal distribution of interest rates. Future Fed Treasury purchases threaten to plunge the world into permanent currency war. The permanent crisis props up corrupt socialist governments in Europe and the United States, giving the controllers more time to patch together their totalitarian world order plan while condemning the victims of socialism to permanent debt peonage under the regime of central banker debt obligations and socialist welfare programs.
Notice that the entire crisis has been characterized by monetary management rather than by fixing the underlying economic dislocations caused by the worldwide free trade regime. And, none of the bankster criminals has been charged with a crime or prosecuted. Central bank monetary policy is a kind of veil thrown over the real economy. It prevents economic restructuring that is normal to recessions and misallocates capital to support corrupt socialism.
The new mini-era that we are in with QEII and the Republican electoral victories puts the Federal Reserve in the spotlight and will lead to a Republican confrontation with the Fed, led by Ron Paul’s House banking subcommittee. It will take many months, but shining a spotlight on Fed actions and policies holds out the hope that the Fed’s power to control fiscal policy for the benefit of the large banks can be curtailed.
The American public is about to get an education on why central banks are evil. One irony of this focus may be that low-level socialists who are too dumb to understand that Communism thrives from central bank policies will cooperate with the Right to focus on the corruption of the big banks and the central bankers. Actually the Left has a pretty good analysis of banker corruption, they just suffer from worldview bias by leaving out any criticism of the unsustainability of socialism and the role of unions in blocking budget reforms.
One theme of news reporting going forward will be the lies of Ben Bernanke and Treasury Secretary Timothy Geithner. We wish there was a single website devoted to tracking their lies, but we haven’t found one yet.
As pressure mounts on Bernanke, the globalist media will face the problem of how to report the story. We expect them to continue to marginalize the tea party Right calling for sunshine and reform of the Fed.
Obama will become more irrelevant in this mini-era. He will continue to try to ameliorate the economic dislocations of free trade by promoting more free trade. His motive will be to actually create jobs, but these will be corporate jobs. He will reinforce the New World Order dislocations by trying to make minor adjustments. As he adjusts to austerity policies from the Right, the real economy may aid his reelection by slowly recovering. Obama is inexperienced and stupid, but he may benefit from policies now forced upon him.
Obama’s visit to the G20 meeting in Korea ended with complete world rejection of Obama’s policies.Obama couldn’t get a free trade agreement with Korea, and Hu stiffed Obama on the yuan. No matter how nicely they portray him on Marxist TV, Obama remains isolated and irrelevant. The G20 is going to require higher bank capital reserves (Basel III) to try to prevent future bank bankruptcies and set targets for currency valuations. The EU is going to have to raise capital for Irish banks. The IMF is going to target hedge fund trading. We believe the global financial regulators are going to succeed in weaving together policies and institutions to address the problems created by big U.S. bank failures and predatory investment policies. Notice that Obama isn’t really part of this emerging global concensus.
Obama is going to reneg on promises to withdraw from Iraq and Afghanistan. This will erode his base on the Left. The Left will respond to austerity policies, banker corruption stories, and Obama’s war policies by putting bodies in the streets.
How Bernanke’s gamble to inflate prices reverses cause and effect, saves the rich and punishes the poor.
Bernanke has many critics. Britain, Germany, China, EU criticize QEII. More criticism. Lula figures out that countries aiming to export to each other won’t work. We explained long ago that free trade is the problem as it causes countries to restructure their economies for trade advantages. Add high socialist overspending running up huge debt and you have the recipe for worldwide bankruptcy. Now even the socialists and Communists are squealing. This anti-U.S. coalition will increasingly cooperate with each other to diminish U.S. global leadership. It will manifest as a shift to more cooperation with China and Iran.
Exchange rates, trade imbalances may derail New World Order cooperation. The Fed has violated international currency agreements by devaluing the dollar. The backlash from the rest of the world will crystallize as ferocious anti-U.S. sentiment on the street.
Conventional criticism of QEII at the Telegraph.
QEII may lead to a “nonlinear world” of irrational investing. That’s because two forces, fear of European debt defaults and the Fed’s easy money leading to higher commodity prices, will rule the markets and lead to volatility. It’s a race between sovereign debt defaults and high inflation in the markets, with continued currency devaluation wars. George Soros wants a gradual decline in the dollar, so that’s where we will end up.
China suggests G20 should monitor Fed. The victimized nations will try to put together more globalist institutions to control Bernanke. This will mark the high point of the Fed’s power to control central banks around the world. Bernanke won’t be able to suffer the continual beating he is going to get.
Looming debt default in Ireland and the PIIGs could derail Bernanke’s strategy. Ireland bank rescue failing. More on Ireland’s need to cut socialist overspending. Ireland needs a tea party election to throw the socialists out. We are still holding out hope that debt problems in the PIIGS will split the European Union, lead to socialists’ defeat in elections. There is an organized New Right in Europe, but it doesn’t have a strong position on the right economic reforms.
A little note on the irresponsibility of the IMF.
Why U.S. economic data won’t matter anymore. The financial world is decoupled from the real economy as Bernanke’s easing mops up socialist debt.
J.R. Nyquist on socialism’s economic war on the United States. Kudos to Nyquist, one of the few commentators who brings in the correct analysis of the Left.
A look at trendlines for the major currencies.
Swedish bond market tanks as EU withdraws stimulus. We are ready for world bond markets to back-up. QEII will threaten the U.S. Treasury AAA bond rating.
California
“California, the U.S. state with the largest public-pension fund, faces liabilities that may exceed five times its annual tax revenue within two years unless lawmakers rein in benefits, according to a study. To keep their promises to retirees, the California Public Employees Retirement System, the biggest plan, the California State Teachers Retirement System, the second-largest, and the University of California Retirement System may have combined liabilities of more than 5.5 times the state’s annual tax revenue by fiscal 2012, according to the study released today by the Milken Institute. Levies are forecast to reach about $89 billion in the year that began July 1.” Source: International Forecaster
The key question going forward is whether the socialists will be able to come up with more phony “stimulus” packages to bail out failing states and support subversive Left-wing special interest groups. Can Bernanke muster up QEIII, QEIV, etc. to mop up their debt? This power cycle of socialist debt issuance and QE has to be broken. Unfortunately, California’s voters have elected more socialists to office, so they can continue to fiddle around the edges with phony austerity ideas while California plunges into acute crisis.
Who should we root for in this mess that socialism and global capitalism has knit together? Certainly not the Fed. It’s policies are mainly designed to support the biggest banks. The side-effects or unintended consequences of its policies are potentially very dangerous. Certainly not the Communist Chinese. Certainly not the corrupt European Union. Certainly not black Marxist Obama.
We can sympathize with the desire of the rest of the world to protect itself from U.S. economic imperialism, but the way the G20 wants to accomplish this involves tepid measures and half-steps and preserves the evil global free trade system. We won’t be happy until all of their global machinery has been demolished.
Europe is still in crisis over looming sovereign debt defaults. Pushing this problem over to the IMF is like handing the keys to the global prison camp over to Stalin. We’re rooting for the EU to split apart, and let the debtholders take the losses.
The single player on this stage that we can support is Ron Paul. Just one U.S. politician has a grasp of the evil exploitation of the Federal Reserve Bank. Not much to hang our hat on, but we are noticing that the rest of the world is uniting against the Fed thanks to Bernanke’s irresponsible policies. Bringing down Bernanke and shining the spotlight on the Fed is the most we can hope for in this present mess.
And, we are a little bit cheered by the fact that Obama is irrelevant on the world stage.
The foreclosure crisis
Not our main topic today, but housing prices have not stopped declining, the Freddie and Fannie debt crisis has not been addressed, and the foreclosure crisis contributes to economic instability. Notice that the controllers have not solved a single problem with their monetary and fiscal policies. Do your own research on this topic if it interests you, we have other fish to fry. Lots of ordinary reporting out there on the foreclosure crisis.
The foreclosure crisis: Capitalization of banks at risk.
Mish looks at housing inventory.
Dr. Housing Bubble predicts further decline of housing prices.
Of interest:
Greece appeals to EU to help stop immigration. About time.
Some recent economic statistics from Economic Collapse.
Unemployment rate higher in EU.
How to attack fractional reserve banking on an individual level.
In praise of the euro and its link to gold and oil.
WSJ: Governments need to borrow $10 trillion in 2011.
Why those green jobs are going to China.
France officially raises retirement age. All those Communist protests were for naught. Next up: strikes over pension reforms scheduled for November 23.
Why everyone should resist “building a smarter planet.”
How to Vanish. The title is misleading. The content is about how to protect your privacy. None of the economic trendlines is going to stop the police state from spying on you.
About The Author
He can require financial institutions worldwide doing business with the United States to freeze any North Korean assets. He can order the Navy to interdict all North Korean vessels in international waters, vigorously enforcing Security Council resolutions that authorize the North’s shipping to be searched for illicit weapons. He can step up support for North Korean defectors and activists working to put pressure on the regime. He can send stealth fighters to fly over Pyongyang — a reminder to Kim Jong-il, as John Noonan suggests in the Weekly Standard, “that we have the means to bypass his massive military infrastructure.”
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Your mind is wandering. No country is getting rid of its debt, and they still have the police state and media to control us.
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You’re in the science as progress trance. Science leads to the police state. Practice getting out of your corporate worldview by thinking about poor people and other victims of corporations.
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