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MONEY SUPPLY AND INFLATION SURGE AS DOLLAR CRUMBLES / DEPRESSION AHEAD
Farm Security Administration: Destitute pea pickers in California. Mother of seven children. (Circa February 1936)
Macroeconomists including Ben Bernanke, the current chairman of the U.S. Federal Reserve Bank, have agreed that cheap and easy credit in the 1920s was one of the root causes of the Great Depression ~ and cheap and easy credit has once again led to runaway inflation, a crumbling dollar and the likelihood of a major depression in 2009: Allen L Roland
The Great Depression took place from 1930 to 1939. During this time the prices of stock fell 40%. 9,000 banks went out of business and 9 million savings accounts were wiped out. 86,00 businesses failed, and wages were decreased by an average of 60%. The unemployment rate went from 9% all the way to 25%, about 15 million jobless people.
Ben Bernanke, current head of the Federal Reserve, said this in November, 2002 ~ "The U.S. government has a technology, called a printing press ~ or today, its electronic equivalent ~ that allows it to produce as many U.S. dollars as it wishes at essentially no cost .. Under a paper-money system, a determined government can always generate higher spending and hence positive inflation."
As Larry Edelson explains in Money and Markets ~ the fed has fully opened the inflationary money faucet to which I add ~ inorder to maintain an election year semblance of a moderate economic slowdown before the full extent of a likely depression is announced on January 20, 2009, the day Bush leaves office.
That way, George W Bush, in his ongoing efforts to avoid failure, can leave office and blame the spineless Democrats for an obviously failed Iraq as well as a increasingly obvious failed economy.
Edelson spells out the gory details ~
http://www.moneyandmarkets.com/issues.aspx?Fuse-Lit-Check-Your-Gold-Holdings-1928
" The supply of money in the U.S. is suddenly surging at an annualized growth rate of more than 16%. By some estimates, that's the highest rate of growth in the money supply since 1971!
The scary part — things will only get worse ...
- There is no way the U.S. dollar can hold its current value when fiat money is being created with abandon out of thin air.
- There is no way the U.S. dollar can hold its current value when the Fed refuses to raise interest rates ... while other countries around the world are actively raising rates to bolster their currencies and put a damper on inflation.
- There is no way that the U.S. dollar can hold its current value when foreign economies are outgrowing the U.S. economy by miles.
- And there is absolutely no way that the U.S. dollar can hold its current value when so many overseas investors ~ who have lent Washington hundreds of billions of dollars to prop up the economy ~ are now waking up to the fact that holding dollar-denominated assets is a losing proposition.
Foreign investors are losing loads of money on their investments in U.S. Treasury bonds. They're even further in the red on mortgage bonds, real estate and stocks. "
If you havn't downsized yet ~ it's almost too late !
Allen L Roland http://blogs.salon.com/0002255/2008/07/05.html
Freelance Alternative Press Online columnist and psychotherapist Allen L Roland is available for comments, interviews, speaking engagements and private consultations ( allen@allenroland.com )
Allen L Roland is a practicing psychotherapist, author and lecturer who also shares a daily political and social commentary on his weblog and website allenroland.com He also guest hosts a monthly national radio show TRUTHTALK on www.conscioustalk.net
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