ben bernanke

The End of the U.S. Dollar

The End of the U.S. Dollar

Much of my investing decisions over the past ten years have been guided by watching the U.S. governments abuse the dollar into its current near-worthless state. This has brought me to one basic conclusion… Politicians, on both sides of the aisle, are not trustworthy or credible individuals. They are power seekers, liars, hoodwinkers, and bamboozlers. They’ll do and say anything to get you to hand your power over to them— i.e. vote them into office. And until a majority of Americans come to this understanding, nothing can fundamentally change within the country. Unfortunately, it may be too late to save the U.S. dollar. The truth is the unsustainable economic course that has been pursued (and continues to be pursued) by the politicos in the United States may have financially doomed the country. The two-party system of republican and democratic criminals that has been put in charge of running the U.S. the past 40 years has failed you. Whether they did it on purpose or not, the system is dying on the vine. The problems that stem from four decades of out-of-control spending on the part of the Congress are cleverly being covered up. Their methods for keeping the public in the dark while promising unsuspecting voters lavish gifts from the public treasury are three-fold: Increasing deficits. Increasing monetary expansion of the fiat currency. Lying about and falsifying the real economic numbers. Because the voters don’t keep the politicians accountable, a false sense of prosperity reigns over the country as this fiat money pulses through the economy. Meanwhile, government officials are given accolades instead of being punished for their transgression. Hell, they gave Obama the Nobel Peace Prize! The problem, in a nutshell, was outlined with surprising clarity a few weeks ago by none other than Fed bankster Ben Bernanke himself as he addressed Congress… He spoke on the looming fiscal crisis of the Federal government; basically, there will be no easy way to avoid it. Congress has to decide what spending to cut. This means Congress must decide which special interest groups to alienate. Then they must decide which taxes to raise. Economic reality is standing on our doorstep Congress has been deferring this two-part decision ever since the Johnson Administration. One republican and democratic administration after another have played kick the can, opting in every case to push the problem into the future for others to deal with by simply creating more money out of thin air and pumping it into the system. Unfortunately, the time has come for the United States to pay for the consequences of this abuse. The national debt in the U.S. is now approaching $14 trillion— if you believe in trusting the government’s numbers. The unfunded debts of the U.S. are over $50 trillion. In reality, both of these numbers are grossly understated through government shenanigans, but you get the point. There’s no way either of these debts will ever be paid off. They’ll have to be…

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Freeport (NYSE:FCX), BHP (NYSE:BHP), Teck (NYSE:TCK), Southern Copper(NYSE:SCCO) Plunge on Falling Copper Prices

Copper prices have plummeted today, dragging down heavily-exposed copper companies like Freeport-McMoran (NYSE:FCX), BHP Billiton (NYSE:BHP), Teck Resources (NYSE:TCK) and Southern Copper(NYSE:SCCO). Much of this was precipitated by the weakening euro versus the U.S. dollar, as the dollar index rose early in the trading session. There is also the continuing uncertainty as to the demand which

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Warren Buffett: Thanks for Saving My Money

Filed in ben bernanke, BP, GOld juniors, lead, o by on November 17, 2010 0 Comments

From our newly minted Wealth Wire: Wow… just wow. First, this billionaire defends rating agencies . And now he’s thanking the government for taking your money. I can’t recall the last time some one made me feel this sick. Buffett has only proven that he can’t be trusted… shouldn’t be followed… and shouldn’t be listened to. The Buffett letter proves he cares nothing for the little man, and only cares about praising a government that takes from the poorer taxpayers and gives money to the rich bankers and hogs like Buffett. He can thank Uncle Sam all he wants… but he should be thanking you and me because Uncle Sam gave him our money. With all due respect to America, Mr. Buffett, bite me. Here’s more from Zero Hedge: “Nothing quite like the billionaire whose entire fortune is invested in the successful perpetuation of the ponzi, thanking the administration for taking trillions of dollars out of the taxpayers’ pocket and preserving the broken system for a few more years, just so said billionaire can wax holier than thou on the pages of the administration’s newspaper and thank the administration for allowing him to swim in his nickel pool through expiration. If one tries hard enough, one can almost spot a ridiculously hypocritical vicious loop in there somewhere… Below, Warren Buffett thanks YOU for saving his money, via the NYT. DEAR Uncle Sam, My mother told me to send thank-you notes promptly. I’ve been remiss. Let me remind you why I’m writing. Just over two years ago, in September 2008, our country faced an economic meltdown. Fannie Mae and Freddie Mac, the pillars that supported our mortgage system, had been forced into conservatorship. Several of our largest commercial banks were teetering. One of Wall Street’s giant investment banks had gone bankrupt, and the remaining three were poised to follow. A.I.G., the world’s most famous insurer, was at death’s door. Many of our largest industrial companies, dependent on commercial paper financing that had disappeared, were weeks away from exhausting their cash resources. Indeed, all of corporate America’s dominoes were lined up, ready to topple at lightning speed. My own company, Berkshire Hathaway, might have been the last to fall, but that distinction provided little solace. Nor was …

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Return to Jekyll Island

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. In the end, the crooks always return to the scene of the crime. Just days after announcing a $600 billion money drop , the members of the Federal Reserve retreated to the place where it all began: Jekyll Island, Georgia. Only this go-round was nothing like the covert operation that took place 100 years ago… This time it was just a bunch of backslapping as Bernanke and Co. spent the weekend hidden in plain sight, celebrating themselves as the smartest guys in the room. Advertisement Breaking: Fed’s Dirty Little Secret Could Make You Rich Economists agree… The Fed’s out-of-control printing press guarantees the dollar will soon crash. But while most investors panic, thousands already started taking advantage of one, very unique investment. It not only protects their portfolios, but it also makes them filthy rich in the process! Click here for your exclusive, inside peek. Back to where it all started For this, we have the most expensive hunting trip in history to thank. You see, while you didn’t learn this in school, the Federal Reserve Bank actually began in a New Jersey train station on a November night shrouded in secrecy. Leaving from the Hoboken Railway station in 1910 were a group of the nation’s leading financiers, along with a handful of powerful Washington insiders and their staff members. And while a few reporters suspiciously witnessed the gathering of these big wigs, none of them bothered to report on it. These men, they were told, were simply going “duck hunting.” But ducks had nothing to do with it… Leading the secret trip to Georgia was Senator Nelson Aldrich, head of the National Monetary Commission. Joining him were A. Piatt Andrew, Assistant Secretary of the Treasury; Frank Vanderlip, President of National City Bank of New York; Henry P. Davison, senior partner of J.P. Morgan Company (generally regarded as Morgan’s personal emissary); Charles D. Norton, President of the First National Bank of New York; Benjamin Strong, a known Lieutenant of J.P. Morgan; and Paul Warburg, a recent immigrant from Germany who had joined the banking house of Kuhn, Loeb and Company of New York as a partner. And while you may not recognize any of these names, they were among the most powerful and well-known men of their day. Together they represented approximately a quarter of all the world’s wealth. On an island off the coast of Georgia, the nation’s banking system changed forever… Once ensconced in their private and discreet playground, the rich and the powerful went to work creating the plan that would eventually become the Federal Reserve Bank. So it was out of these secret meetings that the control of the nation’s money supply was handed over to the very bankers and private corporations that earlier generations of Americans— including Thomas Jefferson and Andrew Jackson — found to be so onerous. Some three years after that now famous “hunting trip,” the plan conceived on Jekyll Island became law. On December 22, 1913, while many members of Congress were celebrating Christmas at home, the Federal Reserve Act was rammed through Congress, and later signed into law by President Wilson. Ideas have consequences We have been at the mercy of their printing presses ever since… Which is why …

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German Finance Minister: Federal Reserve Losing Credibility

German Finance Minister Wolfgang Schäuble said in an interview with Spiegel Online that Ben Bernanke and the Federal Reserve are losing credibility in relationship to fiscal policy. Schäuble also significantly pointed out something most media don’t understand or report on, and that is the Federal Reserve is manipulating their currency as much as China allegedly is when it debases the U.S. dollar

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Bernanke Has Lost All Credibility

Bernanke Has Lost All Credibility

On June 3, 2009, Fed Chairman Ben Bernanke made a simple statement before Congress, under oath: “The Federal Reserve will not monetize the debt.” Oops. If any doubt remained that the Fed will do just that, Dallas Fed President Richard Fisher squelched it last Friday when he bluntly stated in a speech , “For the next eight months, the nation’s central bank will be monetizing the federal debt.” Zing. As I see it, there are two possible explanations for Mr. Bernanke’s mis-statement : He lied. He’s a vacuous bank-puppet with absolutely no business running a donut shop, let alone the Federal Reserve. I can’t decide which is worse… Either way, a good old fashioned impeaching is definitely in order. It won’t happen, of course. But a man can dream, can’t he? The good news is that Bernanke’s credibility is stretched razor-thin at this point. If you aren’t convinced yet, watch this video on YouTube. Eventually, the banksters will be exposed and restrained. Hopefully that happens sooner rather than later. Unfortunately, we’ll need a big catalyst to spur real change; that catalyst will probably not be something pleasant. At least we won’t have to suffer through more ridiculous editorials about Fed “exit strategies.” There is no exit strategy— only a desperate fight to prop up TBTF banks at all costs. Extend and pretend, the bonuses must flow. Wall Street firms will pay out a record $144 billion of them this year, by the way. Savers and retirees will continue to bear the brunt of this greed and recklessness, another point Mr. Fisher slammed home in his speech: But I take no comfort, and see considerable risk, in conducting monetary policy that has the consequence of transferring income from the poor and the worker and the saver to the rich. Senior citizens and others who saved and played by the rules are earning nothing on their savings, while big debtors and too-big-to-fail oligopoly banks benefit from their subsidy. It is refreshing to see such blunt criticism coming from a sitting Fed President, but Mr. Fisher and his hawkish allies are hopelessly outnumbered by doves at the Fed. Bernanke and William Dudley (NY Fed Pres, Goldman alum) run the show for now. As long as they do, the beatings printing will continue. When inflation rears its ugly head, they’ll sheepishly defend their actions as “necessary to prevent yet another Great Depression”; that they “couldn’t have seen it coming,” and things would have been unfathomably worse, had they not acted. It’s a easy argument for them to make, as it is impossible to disprove. The precious metals owner’s conundrum As much as I despise the…

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Silver Wheaton (NYSE:SLW): How High Can it Go?

Every time you hear about investing in silver and Silver Wheaton (NYSE:SLW), you get the usual concerns on how high and quickly the share price of the silver royalty company have risen. While there’s no doubt those who invested a year ago and longer are making a killing which current investors won’t make, there seems to be a lot of upward movement left in silver, and Silver Wheaton will ride

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Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM) Push Up As Gold Breaks $1,400

Major gold miners Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM) are all pushing up today, led by Barrick, which soared over 3 percent as gold prices soared past $1,400 an ounce.The gold news going forward will largely be the effects of quantitative easing on the price of gold, as well as the U.S. dollar, which usually move inversely to one another.Ben Bernanke

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Profit from Currency Wars

Profit from Currency Wars

Right now, the world is going through a massive economic re-balancing. The old idea that China will sell us stuff— while lending us the money to buy it — is unwinding. In fact Ben Bernanke has declared a currency war on China’s undervalued RMB. Good ol’ Ben says we can make the dollar cheaper than the Chinese yuan, and he aims to prove it. The Fed recently proclaimed its desire to create and buy $600 billion in U.S. Bonds. “The FOMC intends to buy an additional $600 billion of longer-term Treasury securities by mid-2011 and will continue to reinvest repayments of principal on its holdings of securities, as it has been doing since August,” said Bernanke. Ben is taking this approach because it works right up until it doesn’t. It worked after the past five bubbles popped, and it looks to be working this time. When Ben floated the idea of a $600 billion cash infusion, stock prices rose and long-term interest rates fell in anticipation. I know some of you will point out that the RMB is pegged to the dollar, and therefore the dollar can’t fall… But it does cause an inflation problem in China, which is a de facto re-balance. According to Bloomberg , “Over the past five years the real-estate prices have tripled. And as property makes up a third of living costs on average, this alone means the real yuan value has doubled.” Chinese Commerce Minister Chen Deming said as much in an interview on October 26th: “Uncontrolled” issuance of dollars is “bringing China the shock of imported inflation.” Chinese poor There are some downsides to printing more dollars. For example, easy money just creates the next bubble, and currency destruction doesn’t create wealth. China has been holding down its currency for years. It now has the world’s second largest economy; but in terms of per capita income, it ranks at 102 — right behind Turkmenistan, Algeria, and El Salvador. Clearly, an artificially low currency isn’t a path to prosperity… But it does lead to a boom in all asset classes. There used to be an inverse ratio of commodities to equities. When one went up, the other went down. In the 1970s, when gold was flying, stocks were dead in the water. In the 1980s, the reverse occurred. In the mid-2000s, when Federal interest rates fell, stocks went up, gold went up, housing went up, oil, uranium, copper— everything went up… This was a direct result of easy money. Now, due to 0.25% Fed interest rates and $600 billion in QEII, almost every asset will continue to go up — with the exception of your salary and your returns on your bank account. And to top it off, the U.S. isn’t alone. The rest of the world from Europe to Brazil is increasing the global money supply. The question isn’t whether low quality growth can work, because it does. Easy money and debt have funded the past twenty-five years of U.S. growth. The question is, How do you keep up with it? The tunnel of doom When I was a kid riding in…

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Ben Plans, Commodities Soar

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. Don’t look now, but the Fed has just driven the magic bus right off of the cliff. Nowhere to run, nowhere to hide, it’s break on through to the other side. With nearly $1 trillion in new money now set to roll off the printing presses, the Fed has finalized its course. Inflation is the destination. It does so with a giant magical checkbook that creates money out of nothing. And as we know, since the 70s, it is one that is no longer tied to gold. It’s what the gold bugs mean when they denounce the dollar as being nothing more than “fiat money.” That is, it’s backed up only by the “full faith and credit of the U.S. Government.” That’s why commodity prices have been going nuts as of late, as investors place their bets against all of Big Ben’s phony new greenbacks. For instance, did you know that copper has surged 28% on stronger demand and a weaker U.S. dollar? Or that cotton and gold traded recently at all-time highs for the same reasons? They have— and along with everything else, including oil, commodities are likely headed much higher from here… In fact the dollar’s weakness, inflationary pressures, and stronger emerging-market demand, all mean that commodities are going to be very bullish over the next 12 to 18 months. Advertisement The Options Guide Your Broker Doesn’t Want You to See… Most people think profiting from options requires years of investment experience or a seasoned stock broker. That’s why people are losing thousands of dollars everyday. Our in-house options expert Ian…

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Gold Ready to Break $1,400 an Ounce

Gold continues to press toward the $1,400 an ounce mark as on Friday it traded as high as $1,398 before pulling back. While not unprecedented, especially over the last year, gold did remain strong in light of the fact the U.S. dollar also showed strength, which usually carry an inverse relationship to one another; gold goes up when the dollar goes down and the reverse as well. What determines

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All Eyes On the Fed: Awaiting Bernanke’s Decision

Filed in ben bernanke, economy, Gold, Gold Prices, silver by on October 30, 2010 0 Comments

The world waits… Stocks barely budged this week. Gold bobbed around like an anchorless sailboat, adrift in a vast ocean of guesses, speculation and rumor. All eyes, meanwhile, are on US Fed Chairman Ben Bernanke, who is widely expected to announce his next round of systematic dollar debasement a few days from now – a All Eyes On the Fed: Awaiting Bernanke’s Decision originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

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