Federal Reserve Deflation and the Greater Depression
Why knowing about Federal Reserve Deflation is important to your and the world's survival in the GREATER DEPRESSION?
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Federal Reserve Deflation in Your Greater Depression
By Delwyn Lounsbury - THE DEFLATION GURU
100 years of messing around with the economy by the Federal Reserve Bank will make YOUR deflation and Greater Depression much worse. The FED is a monopoly and a cartel that is destroying American freedom, liberty and its constitution. The dollar of 1913 when the FED was created is now only worth 3 cents. Inflated counterfeit fraudulent fiat money caused by years on money printing and fractional reserve banking has been its legacy. Fiat money is money with no backing, by the way. Fiat money schemes always eventually inflate too much and then crash.
The Fed is actuall a private central bank monoply cartel cooked up by financial power elite banking families (I call them BANKSTERS) to weaken the financially strong America into a weaker new world order. Their nefarious plan is to slowly bring about a one world government that they alone control. It is a directed history plot toward global governance in which you the people are their pawns and serfs.
In 1913 the Federal Reserve Act was railroaded through a Congressional Conference Committee by the Democrats in a 1:30 am to 4:30 am meeting with not a single Republican present and then passed and signed by Woodrow Wilson on December 23 when most members of government were leaving on Christmas vacation.
Since then, both the Republicans and the Democrats have been in bed with the Federal Reserve, the IMF, the World Bank, the World Trade Organization and the mega rich banking families - the Anglo financial power elite - to ruin the once strong America. Inflation through fiat money fraud, wars, waste, climate change, foreign aid, brutal taxation, creeping socialism, growth in the size and scope of government, bank and corporate bailouts and now a world depression have all been planned long ago to make us all serfs - marionettes - pawns in a one-world-government and new-world-order scheme of deceit and control. Smokescreens for taking your liberty all. On your watch! See video below!
Like in Rome, the population gets bread (41 million now on food stamps) and circuses (TV, professional sports and the internet) as entertainment. The rich get richer. President Obama’s fascist, communist, Marxist, socialist and now Nazi policies will only make deflation and the Greater Depression worse. He is for sure in cahoots with the global governance bunch. Tax the rich class warfare is right out of the communist manifesto.
The whole world is experiencing the ending of an eighty year business cycle (see article on Kondratiev wave theory) that went way overboard due to wholesale fiat money creation. It morphed into an electronic money credit creation climax binge bank bailout. This insanity of creating money with just a computer entry along with the federal government policy of letting banks have first minimal reserves and then since late 1990's no reserves at all (fractional reserve banking) led to the largest credit inflation blow off of all times. It's all now coming unwound. The next 5 years will not be pretty! Credit inflation always ends with a credit deflation crash - every time. Austrian economics says so. Again, see article.
I uniquely guarantee to help you prepare to survive the coming deflation crisis. We will let you know about ways to survive and even grow rich from a depression. Please continue to read the other article pages and reports we will be posting on this important web site. For the Federal Reserve deflation may prove its undoing or people will just give in to the globalists. It's actually up to you. Do you want lose what is left of your freedom and to be controlled cradle to grave? I don't. That is why I started this website.
Will we have more inflation or deflation? I am here to say we have had our runaway inflation. As a real estate agent in California since 1968, I have seen it first hand. Next is deflation in the Greater Depression that started in year 2000 with the dot com stock climax. The world will experience the pain of the cure. Real estate and most other asset prices will drop for years more as deflation corrects all the inflation the 100 or so elite controlled central banks of the world engineered.
The deflation economics cycle started with the 2000 dot com stock mania bubble climax peak may not end until 2016 to 2018. At that time most of your assets may have lost 90% in price and unemployment could be over 30%. Even the price of gold may drop in half. CASH IS KING in deflation. Japan has seen deflation for 20 years and now the rest of the world is catching the epidemic. You cannot stop the pendulum from swinging. Deflation economics will continue until the inflation is wrung out of the system in this Greater Depression.
For 100 years the Federal Reserve central bank monopoly and cartel has systematically looted America. It has turned America into a nation of debt serfs, devalued and then destroyed our currency, stole the people’s gold, facilitated both the welfare and warfare states, manipulated the market with credit bubbles and most importantly created the fiat financial means for the growth of a monstrous Federal Government.
Most of our mations economic problems can be blamed on central banks including the decline in people's morals worldwide, by the way. The only answer is to repeal the Federal Reserve Charter along with the Legal Tender Laws and thus create a true free market for money. Hopefully backed by gold and overseen by private enterprise. This, along with cutting government spending, taxes and regulations would set the stage for economic recovery of America and the whole world.
The education of the people by means of the internet reformation as to the threat and danger of this power financial elite owned central bank monster is right up there with the importance of the Gutenberg printing press first printing an inexpensive bible for the common man to read 500 years ago. Cash is King in a depression!
Copyright 2011 by Delwyn Lounsbury - THE DEFLATION GURU
Use of this article allowed with attribution back to:
http://www.deflationeconomy.com
What Most People Don't Realize About The Fed's Superpowers.
Bob Prechter's Conquer The Crash reveals whether the Fed really can rescue the US economy
January 27, 2011
By Elliott Wave International
Since its creation in 1913, the primary intended role of the U.S. Federal Reserve Bank has been that of protector. In theory, the central bank was bestowed with the power to shape monetary policy in a way that would keep both booms and busts in check. The two main tools at its disposal -- interest rates and money creation -- would provide a "ceiling of normalcy" above expansions AND a "net of safety" below contractions.
To this day, the financial mainstream holds great faith in the Fed's ability to fulfill its save-the-day duties -- as these recent news items make plain:
"Why Raising Fed Funds Rate Is Positive For Equities." (Seeking Alpha)
"Fed's Moves Lift All Asset Classes." (Associated Press)
"US Stocks Erasing Losses: The aggressive moves of the Fed have been an important driver for the stabilization of stock prices." (Bloomberg)
But of all the variables the Fed creators took into account, there's one glaring factor they neglected to consider: Namely, it cannot force consumers to spend, creditors to lend, or businesses to borrow. The events of 2007-2009 "credit crunch" and the subsequent "Great Recession" made that obvious. Remember how the government was upset at banks for sitting on the bailout funds instead of lending them out to consumers? And consumers weren't exactly lining up on the street to get a loan, either.
The Fed's inability to change social mood is the central theme in Chapter 13 of EWI President Bob Prechter's NY Times business bestseller book Conquer the Crash. There, Bob describes the Fed's strategy of lowering the federal funds rate to stimulate spending to be as effective as "pushing on a string." Writes Bob:
"The primary basis for today's belief in perpetual prosperity and inflation with an occasional recession is what I call the 'Potent Directors Fallacy.' It is nearly impossible to find a treatise on macroeconomics today that does not assert or assume that the Federal Reserve Board has learned to control both our money and our economy. Many believe that it also possesses the immense power to manipulate the stock market. The very idea that it can do these things is false."
And so begins one of the most groundbreaking studies into the very real INABILITY of the Fed to fell the great bears of economic declines, or to feed the great bulls of economic vigor.
The best part is, you can read Chapter 13 of Conquer the Crash in its entirety FREE via a Club EWI resource "You Can Survive And Prosper In A Deflationary Depression." The free report also includes SEVEN other chapters of Conquer the Crash that shed equal light on some of the most misleading notions of mainstream economic wisdom.
Don't stay in the dark. Read all 8 chapters today by joining the rapidly expanding free Club EWI community today. Here's what you'll learn:
Chapter 10: Money, Credit and the Federal Reserve Banking System
Chapter 13: Can the Fed Stop Deflation?
Chapter 23: What To Do With Your Pension Plan
Chapter 28: How to Identify a Safe Haven
Chapter 29: Calling in Loans and Paying off Debt
Chapter 30: What You Should Do If You Run a Business
Chapter 32: Should You Rely on Government to Protect You?
Chapter 33: A Short List of Imperative "Do's" and Crucial "Don'ts"
Keep reading this free report now -- all you need to do is create a free Club EWI profile.
This article was syndicated by Elliott Wave International and was originally published under the headline Basic Wave Patterns: How a Zigzag Differs from a Flat. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
FEDERAL RESERVE DEFLATION
The Federal Reserve Bank And Deflation by Robert Prechter
Robert Prechter Explains The Fed, Part I
The world's foremost Elliott wave expert goes "behind the scenes" on the Federal Reserve
November 19, 2010
By Elliott Wave International
The ongoing financial crisis has made the central bank's decisions -- interest rates, quantitative easing (QE2), monetary stimulus, etc. -- a permanent fixture on six-o'clock news.
Yet many of us don't truly understand the role of the Federal Reserve.
For answers, let's turn to someone who has spent a considerable amount of time studying the Fed and its functions: EWI president Robert Prechter. Today we begin a 3-part series that we believe will help you understand the Fed as well as he does. (Excerpted from Prechter's Conquer the Crash and the free Club EWI report, "Understanding the Federal Reserve System.") Here is Part I.
Money, Credit and the Federal Reserve Banking System
Conquer the Crash, Chapter 10
By Robert Prechter
An argument for deflation is not to be offered lightly because, given the nature of today’s money, certain aspects of money and credit creation cannot be forecast, only surmised. Before we can discuss these issues, we have to understand how money and credit come into being. This is a difficult chapter, but if you can assimilate what it says, you will have knowledge of the banking system that not one person in 10,000 has.
The Origin of Intangible Money
Originally, money was a tangible good freely chosen by society. For millennia, gold or silver provided this function, although sometimes other tangible goods (such as copper, brass and seashells) did. Originally, credit was the right to access that tangible money, whether by an ownership certificate or by borrowing.
Today, almost all money is intangible. It is not, nor does it even represent, a physical good. How it got that way is a long, complicated, disturbing story, which would take a full book to relate properly. It began about 300 years ago, when an English financier conceived the idea of a national central bank. Governments have often outlawed free-market determinations of what constitutes money and imposed their own versions upon society by law, but earlier schemes usually involved coinage. Under central banking, a government forces its citizens to accept its debt as the only form of legal tender. The Federal Reserve System assumed this monopoly role in the United States in 1913.
What Is a Dollar?
Originally, a dollar was defined as a certain amount of gold. Dollar bills and notes were promises to pay lawful money, which was gold. Anyone could present dollars to a bank and receive gold in exchange, and banks could get gold from the U.S. Treasury for dollar bills.
In 1933, President Roosevelt and Congress outlawed U.S. gold ownership and nullified and prohibited all domestic contracts denoted in gold, making Federal Reserve notes the legal tender of the land. In 1971, President Nixon halted gold payments from the U.S. Treasury to foreigners in exchange for dollars. Today, the Treasury will not give anyone anything tangible in exchange for a dollar. Even though Federal Reserve notes are defined as “obligations of the United States,” they are not obligations to do anything. Although a dollar is labeled a “note,” which means a debt contract, it is not a note for anything.
Congress claims that the dollar is “legally” 1/42.22 of an ounce of gold. Can you buy gold for $42.22 an ounce? No. This definition is bogus, and everyone knows it. If you bring a dollar to the U.S. Treasury, you will not collect any tangible good, much less 1/42.22 of an ounce of gold. You will be sent home.
Some authorities were quietly amazed that when the government progressively removed the tangible backing for the dollar, the currency continued to function. If you bring a dollar to the marketplace, you can still buy goods with it because the government says (by “fiat”) that it is money and because its long history of use has lulled people into accepting it as such. The volume of goods you can buy with it fluctuates according to the total volume of dollars -- in both cash and credit -- and their holders’ level of confidence that those values will remain intact.
Exactly what a dollar is and what backs it are difficult questions to answer because no official entity will provide a satisfying answer. It has no simultaneous actuality and definition. It may be defined as 1/42.22 of an ounce of gold, but it is not actually that. Whatever it actually is (if anything) may not be definable. To the extent that its physical backing, if any, may be officially definable in actuality, no one is talking. ...
Do you want to really understand the Fed? Then keep reading this free eBook, "Understanding the Fed", as soon as you become a free member of Club EWI.
This article was syndicated by Elliott Wave International and was originally published under the headline Robert Prechter Explains The Fed, Part I. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
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The Democrats buy votes with bigger and bigger government (socialism) as evidenced by the 40% growth of the food stamp program, ObamaCare/euthasia and immigration amnesty. The latter to swell their number of voters.
The Republicans buy votes with bigger and bigger government (crony capitalism) of reduced taxes, pork projects and goosing the real estate and stock market manias.
The Libertarians can't afford to buy a vote.
The U.S. dollar has shriveled down to being worth some five cents under both main political parties and the willing help of the Federal Reserve Bank (a fraudulent immoral monopoly cartel). This is an Anglo financial power elite plot to ruin the once strong America and bring on a "Big Brother" one-world government/new-world-order. It's the biggest (bankster) conspiracy of all times. Our only hope is to go more Libertarian and stop funding big government. Hire it out to the lowest bidder. The deflation we are in will morph into the Greater Depression. That will de - fund big government. Maybe we will get our head out of the sand when most assets have dropped 90% and unemployment is 35% in the 2016 low of this Kondratiev long wave cycle.
Lobby and support a new private gold-backed money system or we will just repeat the hyperinflation. Do not let government or a central bank control the money ever again. See: http://www.deflationeconomy.com/kondratiev-wave.html
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