"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

Friday, December 14, 2012

The Fed to print one Trillion in phony paper money

Fed to flood the nation with one trillion new dollars.
“Paper money eventually returns to its intrinsic value ---- zero.”

Daniel Webster 
“We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.”

George Bernard Shaw
“You have to choose [as a voter] between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.”


The Federal Reserve on Wednesday announced a new easing program to boost the U.S. economy and said for the first time that it will keep interest rates near zero until unemployment falls below a newly established threshold of 6.5 percent.

Under the new program approved Wednesday, the Fed said it will print money to purchase $45 billion a month of long-term Treasury securities in the open market — reviving a highly controversial technique for propping up the economy.

The Treasury purchases will be in addition to the $40 billion each month to cover Fannie Mae and Freddie Mac mortgage bond purchases the Fed is making reports The Washington Times.

The combined money printing floods nearly one trillion new paper dollars into the economy. That means inflation.

The U.S. central bank had never before set a formal target for the level of unemployment or inflation, but did so Wednesday with a near-unanimous vote of its rate-setting panel, the Federal Open Market Committee.

Other global central banks typically have a formal inflation target, but few have also established such a goal for jobs.

Fed Chairman Ben S. Bernanke said in a news conference that the 6.5 percent jobless rate is actually a threshold at which the Fed will consider raising interest rates, and is not the central bank’s formal “target” for reducing unemployment.

He said the Fed’s real target — the so-called “full employment” rate where joblessness lands in a fully recovered economy — is actually between 5.2 percent and 6 percent, but the Fed wants to stop easing before that level is achieved so as not to risk an uptick in inflation.

Judge Napolitano
Federal Reserve Money-Printing: "I Believe It Is Theft, Pure and simple."

Every year paper money buys fewer and fewer goods.

In 1944 a silver dime would buy you one gallon of gasoline.
The price of gasoline has NOT INCREASED. The silver metal in that 1944 dime will still buy you that one gallon of gasoline. What has changed is there is no longer silver in dimes. Add in the endless printing of phony government Monopoly paper money to pay for all the "free" shit that voters demand and the politicians provide to buy those votes.  The result - inflation.

The Olden Days When Gold and Silver was Money.
When gold and silver was money somehow the sun came up every day, children played, businesses did business, people went to work and lived their lives. But our ever so smart economists from the very best schools (who think loaning money to Greece is a good idea) tell us we are the "crazy" ones for wanting a stable gold backed currency and balanced budgets.

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