Home > Uncategorized > Devaluation.. steadily for 100 years!

Devaluation.. steadily for 100 years!

The Fed is nothing but a scheme that was always designed to be a huge blood-sucking vampire..
This so-called “independent” entity is supposed to “keep our currency stable,” along with our banking system and the rest of economy.
Yet, since the Federal Reserve’s founding in 1913, (passed by traitorous members of the Congress of the United States in secret, literally in the dark of night), this team of foreign based bankers has repeatedly overstepped their bounds.
In doing so, they have continually sacrificed your currency, your US dollars’ value.
Whatever item that cost $1 in 1913 – when the Fed was “created” (given the control of the United States currency) – now costs over $20.    –   That is a 95% devaluation of YOUR money.
And it’s only going to get worse.
Over the years, the Fed’s well-meaning actions have led to a series of quiet “currency shocks” that have rippled through our economy, starting all the way back in the 1920s. And the worst is coming this year (more on that in a moment).
First let’s take a quick look at the Fed’s impressively bad track record of “keeping our currency stable” over the last century.
Currency Shock #1:
The Fed’s Stunt Back in the 1920’s
Back in the 1920’s, the British pound was king.
The pound was the world’s reserve currency similar to how the dollar is today, only you could redeem pounds for gold.

That’s why French authorities were making trouble for the Brits back in the 20s. At the time, the French threatened to redeem their “credits” (a.k.a. pounds) with the Bank of England and so seriously deplete England’s gold stock.

Of course, this was giving the British pound fits and forcing it to fall.
Again, this was all happening on the other side of the world. But the Fed still managed to get involved.
So, what did the Fed do? They sacrificed our dollar, the almighty US dollar,  to prop up the pound.
The Fed quickly slashed our interest rates and agreed to make U.S. gold available to the French.
Well, you can imagine how the dollar tanked as the Fed cut rates and literally gave away our gold reserves at the same time.
(Keep in mind, back then our money was actually backed by gold.)
That’s just one example of how our Fed loves to sink the US dollar to support European currencies. But these days they sacrifice the US dollar’s value for the stock market.
Let’s fast forward about 60 years…
Currency Shock #2:
Sinking Dollar Causes Market Crash
The “crashing US dollar” is what ultimately caused the 1987 market crash, thanks to the Fed.
At the time, the dollar had been falling since March of 1985. Our currency had been stuck in a steep decline for two years straight. Traders were losing faith in the dollar and many investors were starting to reassess risks.
By the time the crashing dollar started affecting stocks, a new way of trading had just become popular on Wall Street. It was called “computerized trading.” This meant computers monitored stocks, while setting and adjusting stop-loss levels.
The computers triggered the first line of stops, and then automatically it just kept going. It was a vicious cycle. Stop-loss after stop-loss hit.
Suddenly you had a panic on your hands.
When all was said and done, stocks had fallen over 500 points (or just over 22%) on that one day alone! It became known as the “biggest one-day drop in history.”
At the time, everyone naturally blamed this new computerized form of trading. Indeed, the computers played their part. But for the 60 years prior, the Fed had also been undermining our dollar.
The sinking currency cut the legs out from under our stocks. The computers took over from there. It was ugly!
Thanks once again, Federal Reserve!
Currency Shock #3:
The Federal Reserve Bank Becomes the “Lender of Last Resort”
Back on September 23, 1998 the Fed engineered its first bailout based on “systematic risk.” Before that time, no one thought of the Fed as “The lender of last resort”.
I’m sure you know this story. The now infamous $4 billion hedge fund Long Term Capital Management (LTCM) caused the market panic.
This fund was so OVER-leveraged, that they actually controlled over $100 billion through swaps, emerging markets and mortgage-backed securities (MBS).
As fast as the Long Term Capital’s bets went wrong, their assets also shrank from $4 billion to under $500 million in a very short time. In other words they ended up being worth exactly 12 1/2% of what they started out being worth. This was enough to shake up every single asset that LTCM invested in.
So what happened?     –   The Federal Reserve Board orchestrated a massive bailout. Even though it was funded by other banks, bailing out this “too big to fail” hedge fund still caused the dollar to fall like a rock for several months straight.
The Fed’s position as the “lender of last resort” has just grown immensely in the past three years.
From 2007, to present, the Fed has cut interest rates to practically 0% and has poured billions of dollars into the market to buy up toxic (worthless) so-called “assets” all over the place. They’re now even buying up the  treasury bills of the United States. (Which are also “toxic assets”.)
That has already caused its own serious jolts to the buck once again. However, the next shock will be the one that truly unravels the dollar…
The Next Currency Shock IS coming in 2011
Today we live in a day of “currency wars.”
So, what does that exactly mean?
It means that many countries around the world are struggling to get by and recover. So leaders around the world are trying anything and everything that will give them an added advantage over the other countries. The easiest way to do that is to devalue/cheapen the people’s currency.
This makes your exports look less expensive than your competitor’s exports. So more foreign nations buy up your apparently “cheaper goods”, and more money flows into your country.
The government of the United States doesn’t want to be left out, so they can do one of two things to make us look competitive.
They can either devalue or currency or cut wages.
Which one of those do you think the elected officials of our country will impose? If your paycheck starts shrinking, Americans will not only complain – we all will finally revolt.
But very few Americans understand purchasing power. Most people don’t realize that every time the dollar falls 50%, your real cost of living goes up AT LEAST 100%!!!
When the purchasing power of the dollar falls 75%, your cost of living goes up 300%.
So politicians (the so-called “independent” Fed included in that label “politicians”) will capitalize on this massive ignorance, and they WILL choose their option to devalue your dollars.
Now here’s the problem.
In order to remain competitive with the rest of the world, it’s estimated the dollar will have to fall ANOTHER 50% for us to remain competitive with the rest of the world.
So by now I guess you’ve guessed what’s coming next is going to be one of the biggest devaluations of our currency that we’ve ever seen! It will be called “Hyperinflation”.
The Fed has already ensured our disastrous currency will continue to fall. As victims of any disaster, you need to plan to your escape route now before its too late.

 

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