"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Wednesday, August 17, 2011

CHINA WARNING: "U.S. to print more money"

Talk about phony Monopoly printing press money and the coming inflation is
even common among bartenders.

Bartender Logic . . . We are Doomed

Political and economic commentator Christopher Greene had something of a shock.

He was out to lunch with his Dad and the lady bartender was talking with them about the collapse of the American dollar and wondered what our new currency might look like?

When the averger working Joe and Jane know something is wrong you know we are in trouble.  Somehow this news has reached deep down into American society while the Beltway Ruling Elites still live in their fantasy world of endless free printing press money.

"That is why I want to beat into your head that in my humble, personal opinion I do not see the U.S. dollar as the ‘world reserve currency’ in the next few years. It depends on how long they can prop the markets up. I would say 0-2 years worst case and 5-years at best," says Christopher Greene.

"Even bartenders can see that the U.S. dollar is being intentionally destroyed by the Federal Reserve (Bernanke & Co.) to specifically inflate our currency so they can cheapen and more easily service U.S. interest payments. This is at the direct expense of the American people!"

So the direction we are headed is one of self-destruction, a self-masochism if you will that will directly correlate in a lower standard of living for the American people. Recently, Sam Zell (the famous real estate tycoon) said he thinks this could be as much as 25%.    (Greenewave)

China expects the Federal Reserve to keep printing money.

Full power to the printing press

Chinese policymakers should be on guard against a possible third round of quantitative easing in the United States, a prominent Chinese economist said.

Lu Zhengwei, the chief economist of financial markets at the China Industrial Bank in a article published in the China Securities Journal said, "The United States is very likely to launch another round of quantitative easing to boost its sluggish economy. The U.S. Federal Reserve may simply be waiting for the proper time to announce it," the official Xinhua news agency reported Saturday.

The second round of quantitative easing, which ended in June, was a six-month, $600 billion program that was unpopular overseas, as the strategy, also known as printing money, dilutes the value of the dollar which makes U.S. goods more affordable abroad and foreign goods more expensive in the United States.

Lu said in response, China should continue to tighten monetary policy, as step also prompted by July's inflation rate for China, which reached a 37-month high at 6.5 percent.

Chinese buy 90.9 tons of Gold

“The Chinese will buy more and more gold just as every other civilization has in inflationary times and with their high savings rates, they have the money to do it.”  - - -   Cary Pinkowski, chief executive officer of Astur Gold

In the first quarter of 2011, Chinese consumers purchased 90.9 metric tons in gold bars and coins, valued at $4.1 billion.

That's more than double the amount Chinese consumers were buying year ago. It's also more than the 85.9 metric tonnes bought by Indian consumers during the first three months of the year.

"Persistent high inflation levels in [both countries] continued to motivate investment in gold," the organization's analysts wrote in a research report.

India still dominates the gold jewelry market, buying 206.2 metric tons in the first quarter, compared with China's 142.9 metric tons.

China and India account for nearly half of all gold products sold during the first quarter, said the World Gold Council.

Since 2005, the January through March period has seen China’s private household gold demand average a rise of 22% from the previous nine months, according to a BullionVault analysis, based on GFMS data courtesy of the World Gold Council.

“Long term, that’s meant Chinese households have put an ever-greater proportion of their fast-growing annual savings into gold,” said Ash, with that portion growing from 0.8% of retained income in 2001 to a forecast of more than 1.7% in 2010.    - - - CNN

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