July 13, 2011
Bernanke also said that the Fed could act in other ways to stimulate the economy, such as cutting the interest rate that the Fed pays to banks on their $1.5 trillion in excess reserves that they currently keep parked at the Fed. NIA believes this $1.5 trillion alone would multiply into $15 trillion once it circulates through the U.S. economy and if Bernanke on top of that unleashes any additional quantitative easing, it will just about guarantee hyperinflation.
Bernanke has made it very clear that he is prepared to print money until the
U.S. dollar becomes worthless and the incomes and savings of all U.S.
citizens are destroyed.
Bernanke explained that central banks only hold gold as a "tradition". The truth is, gold has been accepted as money throughout all civilizations over periods of thousands of years.
Bernanke doesn't want U.S. citizens to wake up and realize that they can opt-out of the criminal Federal Reserve system if they get rid of their U.S. dollars and store all of their wealth in gold and silver.
U.S. dollar originally only had purchasing power because it was backed by
gold. Today, the U.S. dollar is a fiat currency that is backed by nothing.
Any remaining purchasing power the U.S. dollar still has is just an illusion
and will soon evaporate due to Bernanke's actions.
The item must also be a specific weight,
measure, or size, so that it is easy to count. It must be long lasting,
durable, and not perishable or subject to decay (which is why food items
can't be used as money).
Gold is valuable based on its weight and measure, and fits all of these other qualities and characteristics as well. Never do people explore shipwrecks hoping to discover U.S. dollars, because dollars that Bernanke can print at will even if they could survive the corrosion of the ocean, simply won't have any purchasing power left by the time explorers can locate them.
People explore shipwrecks for gold, because it will last
underwater for thousands of years and always retain its value.
Citizens of Zimbabwe
who were able to find 0.1 gram of gold after a long hard day's work of
shifting through thousands of buckets full of mud, were able to take that
0.1 gram of gold and exchange it for a loaf of bread. Those who were too old
or weak to pan for gold simply couldn't afford food and starved to death.
Bernanke has spent a total of $4.7 trillion since the financial crisis of late-2008, which has flooded the world with excess liquidity of U.S. dollars and led to massive inflation in the prices of food and energy, the two items that Americans need most to live and survive. The inflation problems in China are a direct result of their currency peg to the U.S. dollar and willingness to accept the dollars we print in return for the real goods they produce.
As soon as the Chinese central bank decides to end their
currency peg, China's currency will increase in purchasing power and all of
the monetary inflation the U.S. has exported to them will flow back to the
U.S. like a giant tsunami.
Although the U.S. government's Bureau of Labor Statistics (BLS) has reported only 2% annual price inflation over the past three years, when you account for how the U.S. government used to calculate price inflation before the implementation of hedonics and quantitative easing, annual price inflation has actually been closer to 9%.
Soon when price inflation begins spiraling out of control, Bernanke will be forced to raise the Fed Funds Rate north of 10%, which will cause our interest payments on the national debt to soar to over $1 trillion per year.
The U.S. government will then need to immediately end,
...and all other entitlement programs, to have
any chance of survival.