The Fed is Deliberately Destroying the Value of the Dollar
Posted: December 5th, 2008 | Author: admin | Filed under: Uncategorized | 9 Comments »Ben Bernanke has deflated the value of the United States dollar since he took over as the Chair of the Federal Reserve Bank. Any time a major United States financial company gets in trouble, the Federal Reserve mulls over a decision to bail them out. Bailing them out means printing more money which, in time, will deflate the value of our currency. The law of supply and demand states that the more you have of an item, the less it is going to be worth. If Bernanke continues to print BILLIONS of dollars, do you think it will increase in value?
A great point that Ron Paul makes is that when oil is compared to gold, it is not nearly as volatile. Actually, it is almost a straight, stable line. It is highly unlikely we will ever go back to the gold standard, but why can’t America print money with true gold backing? We would print much less as we can’t just create gold as we can paper money. It would force the Federal Reserve to chose wisely which, if any, companies should be bailed out.
Is there any way that we can change this as Americans? Can we find a way to stop the Fed from printing money whenever they please?
any we find a way to stop the Fed from printing money whenever they please?
The short answer: no.
Just as refresher, the point of raising and lowering interest rates is to control the money supply available to consumers and one option to do this is to print more money. If done responsibly it can be effective.
I am in agreement regarding the the gold standard, it would be be nice if had every US dollar backed up by a dollar in gold. I believe that Ron Paul made the point that the fair value of oil would be more likely around 3.00 a barrel if this were the case.
I’d like to see someone else jump in with some comments.
Julian
lord acton was right when he said power corrupts absolutely. with that understood, then you realize that there is no way that the federal reserve could possibly “be effective.”
Printing more money is decreasing the value of a dollar. Bernanke is an idiot and should be removed from office. Real time wages are down, inflation is up thus americans have less buying power. Corporate greed has taken over and continues to take away from employees so executives become rich. The creation of “profit sharing” is the culprit! Most employees are excluded from profit sharing or the trickle down is measly. The financial institutions have issued millions of bad loans to people who did not qualify. Why did the financial institutions issue these bad loans? Simple, it was the only market left, (people that qualified have what they need) and to maximize profits, “profit sharing”. Now Bernanke the idiot has the illusion that by giving tax payer money to these institutions that people who qualify are out there wanting loans. WRONG, all there is for a market is more people that don’t qualify. Credit card debt is next to fail. The financial institutions and realtors raked in billions/trillions. Where is the Billions/Trillions in profits that the financial institutions made during this mess? In the hands of executives and management! Remove Bernanke now before he makes this mess worse. Let the executives use thier money to bail themselves out.
The price of gold, measured in dollars, has gone down from a six month high of $977 in mid July to around $750 this week. The dollar has gained against the Euro, the British Pound and almost every other existing currency. The price of oil closed at around $40 after being over $140 in July. So if the dollar today buys more gold, oil and other currencies than it did six month ago, what leads you to think that our currency is being deliberately devalued by the Board of the Federal Reserve (bear in mind that Benanke can’t do it all by himself).
The fact that every thing is deflating, including Gold is the prove of pending disaster. They are doing this on purpose, all part of the plan. We can only hope that Mr. Obama is not going to play along.
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Everyone is talking about Fed preinting more and more money. Can someone tell me where is this information available.
Also, Doesn’t Fed have to report how much they have or are printing?
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Send all the wall street jokers to replace the illegal alien workers that are here and let them find out what it is to earn a dollar the hard way!