The Federal Reserve Will End in Bank Failure
Lee Rogers
The general market has been slammed this past week and with it so have gold and silver. The plunge protection team did everything they could this past week to push the gold and silver prices down but again they are fighting a losing battle. I am not the least bit concerned about this recent down turn. I honestly didn’t think we would get another buying opportunity for gold and silver at these levels, but here we are again. The manipulation in the gold and silver markets has become a complete joke. It has become obvious to almost everyone who follows precious metals as to what is going on. The Federal Reserve sees gold and silver as a threat to their defaulted paper promises and use whatever means necessary to ensure gold and silver don’t rise in price. It is really that simple. The plunge protection team has a number of tools at their disposal to keep the gold and silver prices in check but they won’t be able to do it forever. There are too many things going against them. As a result, the Federal Reserve will eventually end up becoming the biggest bank failure in the history of the world.
I first want to take a look at what the Federal Reserve is saying about the current situation. Here is an excerpt from a Bloomberg article where Ben S. Bernanke the Federal Reserve Chairman tries to explain why there has been inflation.
Federal Reserve Chairman Ben S. Bernanke said increased global links between economies may have helped spur U.S. inflation.
Booming demand for energy and commodities by China and other countries has contributed to the surge in their prices in recent years, Bernanke said in a speech at the Stanford Institute for Economic Policy Research in Stanford, California, late yesterday. This dynamic may offset the effect of trade in slowing price increases on manufactured goods, he said.
``When the offsetting effects of globalization on the prices of manufactured imports and on energy and commodity prices are considered together, there seems to be little basis for concluding that globalization overall has significantly reduced inflation,'' said Bernanke. ``Indeed, the opposite may be true.''
What a bunch of mumbo jumbo from Bernanke. The real cause of inflation is because the Federal Reserve has gone into default and printed too much money. How much simpler does it get? Of course, the Federal Reserve Chairman’s job is to try to act as smart as possible and confuse everyone as to what the real cause of inflation is. It doesn’t matter if the answer doesn’t make any sense, its more important that it sounds as if it does in order to give the idiocracy crowd confidence that they have the situation under control. Can you imagine what would happen if Bernanke was actually honest? The whole fraud would be exposed and we’d have a global financial meltdown. It is really quite amusing that this is the way it is. Honestly though, should we have any sort of confidence in an organization that sends billions of Federal Reserve Notes into Iraq right in the middle of a war zone?
What’s crazy, is that despite what the Federal Reserve has done to inflate the currency to prop up the stock market, it has been an utter failure. The Dow Jones Industrial Average should be half its value if it wasn’t for the Fed’s injection of liquidity over the past six years. It is laughable that the mainstream financial media has sold this myth that the general market was in bull mode for the past few years. The general market has done nothing since the turn of the century. Moving from 10,000 to 12,000 with the amount of liquidity that has been pumped into the system isn’t even treading water.
One sign of coming trouble is the fact that we are starting to see some problems in the banking sector. It looks as if all of those easy home loans are finally starting to hurt the banks. Check out this news from the London Times.
Problems at HSBC
EUROPE’s biggest bank, HSBC, is to write off $11 billion to cover mounting losses in its troubled American offshoot, HSBC Finance Corporation.
Stephen Green and Mike Geoghegan, the bank’s chairman and chief executive, are making the huge provisions — which will be announced alongside tomorrow’s full-year results — in an attempt to draw a line under the bank’s miserable experience since buying the business, then known as Household, for $14 billion (£7.2 billion) four years ago. The duo are under unprecedented pressure from shareholders over ballooning bad debts at its US mortgage business.
There was also a bank failure in Pittsburgh.as reported by the Herald Tribune
Bank Failure in Pittsburgh
The streak is over.
After nearly 2 1/2 years without a bank failure, a small Pennsylvania bank collapsed this month.
Metropolitan Savings Bank of Pittsburgh was closed by its state banking department. About $12 million in deposits were assumed by Allegheny Valley Bank of Pittsburgh.
The Federal Deposit Insurance Corp. said Metropolitan had about $1.2 million in deposits in 70 accounts that could exceed the federal insurance limit.
We’ve also had trillions wiped out in the stock market as a result of the global stock market correction last week and this is just the start of more problems. Below are some of the headlines we’ve been seeing.
Japan Stocks In Biggest Dive in 9 Months
Russian Stock Market Plunges 4.9%
Euro Stocks Extend Global Slump - $2.3 Trillion Wiped Out
What we are dealing with here are some severe worldwide financial problems. It is my opinion that the Federal Reserve is going to end up in bank failure and Ben S. Bernanke will be the fall guy for the bank failure. In order to keep the pyramid scheme going, they’ve been forced to increase the money supply exponentially but this has resulted in out of control inflation. They simply cannot continue to do this as more and more countries diversify their holdings out of the USD. The only reason so many countries were in the USD to begin with was because it was backed by gold as a result of the post World War II Bretton Woods agreement. Since that point in time the Federal Reserve printed more Federal Reserve Notes than could be exchanged for gold and they’ve been in default since 1971 when they stopped gold redemption. The USD is now primarily backed through the force of the U.S. military to ensure USD for oil transactions and that’s one of the main reasons why there is so much war mongering going on with Iran. They’ve already setup an oil bourse to trade oil in Euros and rumor has it that Iran is going to make the use of Federal Reserve Notes illegal in their country by March 21st 2007. If this turns out to be true we may see war with Iran sooner than later. If this story turns out to be true, I can’t blame the Iranians for doing it. The United States has been wrongly interfering in the internal affairs of their government since the 1950’s.
The U.S. military cannot invade every country in the world and make them accept Federal Reserve Notes. It isn’t going to work that way and that’s why the Federal Reserve will end up as a failed bank. The U.S. is being setup by the banking cartel just like the Nazis were in World War II. They are playing the U.S. off against the rest of the world. Why do you think Rupert Murdoch spreads pro U.S. & pro Iraq war propaganda on Fox News but in other countries his news agencies spread anti-U.S. news? These people need chaos in order to consolidate wealth after they have created the crisis. Needless to say they have created enough chaos with the war in Iraq and Afghanistan as well as implementing open border policy with every 1st world industrialized nation. All of this is being done by design and none of it is good for any one of us.
So what’s the end game? One thing is for sure, paper assets are a tremendous risk considering what is happening in almost every aspect of the world economy. The most secure investment is physical gold and silver bullion. Gold and silver mining stocks will provide leverage to the price of gold and silver but they have built in risk. Stocks unlike gold and silver can go to zero. Either way, both options are superior in comparison to investments in most general market stocks. This recent drop down to $640 in the gold price is flat out another buying opportunity.
7 March 2007
Lee Rogers
Funny Money Report
www.funnymoneyreport.com
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