"The Fed has stepped in and is overtly buying government debt. When the Fed directly buys government debt, and then uses that debt to create more money, it is immediately inflationary. No trickle down here. It is nothing less than hyperinflationary. But the banksters are terrified of deflation. It would crash the banks if their assets (collateral) lost any value. Obviously, if the sheeple ever began to realize that, through this hyperinflationary action, they were getting royally screwed, they might just lynch these bozos and restore some sanity to government. Hyperinflation will make Government bonds far less attractive. Remember, the bond market is the cash cow that the central bankers depend on to continue to milk the economy. Therefore, the Fed will do everything in its power to insure that the bond market will be the last to deflate. Bernanke is not the sharpest tool in the shed. He bases his convictions of the tenets of a faux science, namely, Keynesian Economics. The only real way to keep the bond market inflated is to substantially raise rates. He will not do this, however, because he knows that, through his past actions, and those of his predecessor, Allan Greenspan, that the whole situation is screwed up so bad, rising rates will cause the economy to implode. We have been waiting for the people finally wake up and start to make some noise. Consequently, the sheeple are not known for public outcries, so the throes of hyperinflation will already be choking the economy long before the Fed makes any meaningful interest rate increase, (read in: double digits). We really need to abolish the FED. The dollar is, temporarily, being bolstered by the more rapid decent of the Euro, the Pound and the Yen. It is all fiat and it is all doomed. When the dollar breaks below the USDX .78 there is nothing in the world that can stop it from entering free-fall." Johnny Silverbear
Posted on: Sat, 01 Jun 2013 19:26:10 +0000
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