The U.S. government in conjunction with the Federal Reserve has been printing all of this money, but how has this been to the benefit to the people of this nation. People can't get loans/capital. If people can't get capital, then they can't start businesses or buy a house or borrow money for any long term investment. These types of capital are necessary for the middle class. These types of necessary debts allow people to progress and build personal equity. This is what our nation was built upon.
The money that has been printed has been being used as liquidity (water) for the banks (The Federal Reserve) to quail economic panics (fires), but what these "Geniuses" can't seem to grasp is that with a diverse world with disparate political systems and diverse cultural identities where they exert so much energy putting out one fire another is sure to spring up. It is like a game of "Whack A Mole."
The debt ceiling was raised and immediately the Economic Gurus of the U.S. and World sprang to action. Is the money being used to invest in infrastructure and retool American industry? No, it is being used by the President's Working Group on Financial Markets to continue to play "Whack A Mole." But the jig is up, because they have so let this system spin out of control that these artificial financial control mechanisms are beginning to have little long term effect on the real economy and all these bogus investments to try and control the marketplace are only bringing more inflation into the real (hard) asset markets.
Look at this morning. One can see where the Plunge Protection Team came into the Stock Market in New York and attempted to put a stop to the chaos that started out this morning. As soon as they did this, Gold spiked. Over the last several months you have seen silver fall back from its nearly $50 an ounce high to where it almost touched $30 an ounce. Now you see where it has climbed back to nearly $41 an ounce. I still contend that what I wrote about in the article The Impending Collapse of JP Morgan is correct. I still believe that JP Morgan is heavily shorted in the Silver market and everything in the world is being done to protect JP Morgan-Chase to buy time to try and figure a way out from this exposure.
The whole problem with this Ponzi Financial system that has been set up is that it has all been built on paper. Our currency is paper. The Precious Metals markets are built on paper. The Agricultural commodities markets are built on paper. The problems underlying these paper assets relate to the fact that there are too much of these paper assets to cover the physical demands of the market place. When these paper investors have to make good on the delivery of the product to someone who has a physical demand, then we see these investors, most of which are the Banking Interests from Wall Street, taking these freshly printed dollars into the market place and bidding up the price of the real physical commodities. That is what is creating the inflation we see.
The only way to fix this problem is to get these paper investments under control. You should not be able to short a commodity that you do not have control of. We have seen this with so many of these derivative investments. Bank Of America is in trouble in relation to Mortgage Backed Securities and a problems related to fraud within this system and their attempts to Foreclose on properties that they do not hold clear title to. I discussed that in a series of articles from last year related to fraudclosure.
Fraudclosure 201 - the Horse Race vs Governance, Fraudclosure 102: Multi-tiered Bank Fraud Exposed!, Fraudclosure 101: Bursting the PiƱata, A letter to the NC Attorney General involving Fraudclosure, You can help people save their homes!, Real Terrorism: Financial Terrorism - Time to break the Banksters, 2nd wave of the Banking Meltdown is here, How can the United States avoid Bankruptcy?, The Plunge Protection Team and the Ponzi Economy
All of this is leading to a full blown collapse. What the Elite don't seem to understand is that this isn't Economic Theory from an Ivy League University. These decisions, conflicts of interest, and fraud have real outcomes and these outcomes are going to reek havoc upon all of our lives. The "Geniuses" seem to think they have all of the answers, but the American People aren't even considered as part of the equation. Look at the trends. Commodities skyrocketing. The stock market staggering and being eaten alive by inflation. I'm not going to give anyone investment advice. I am just here to provide information.
Max Keiser : America is being sold everyday for a fee
Max Keiser : today the french banks are collapsing and particularly Society Generale , Hugo Chavez ordered the transfer of Venezuela 's Gold which is held in London's Vaults back to Caracas that's a 211 tonnes of Gold this would represent one of the largest moves of physical gold in decades , Hugo Chavez also ordered the nationalization of Venezuela's gold mines , he certainly realized that the era of paper money is finished ....before the NWO we will have a European World Order run from Berlin , Germany is using the financial crisis to conquer Europe and create the 4th Reich ...the Swiss franc is running crazy on the upside and it is hurting the Swiss economy ...the global GDP of the whole world is about 50 trillion and the global derivative market is about 600 trillions so that's your ratio right there ....
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