Comments on: The Federal Reserve and U.S. Treasury Determined to Sink the U.S. Dollar in 2009. Why Gold and U.S. Dollar went up in 2008. http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/ Investing ideas for preserving wealth in a fluctuating market. Tue, 16 Mar 2010 08:10:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ron Everson http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/comment-page-1/#comment-8202 Ron Everson Sat, 23 May 2009 21:45:33 +0000 http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/#comment-8202 In 1913 when the Fed Act was was put in place of the current system, the Constitution Article 1 section 9 stated that only Congress can coin money and regulate the value there of! With the Fed handiling the currency, first they have to back their currency with something, the Fed does not! THe fed pays the US treasury between $19.00 to $21.00 per sheet of 32 bills, denomination a non factor in the price! The Fed then bonds this cash with the US Treasury at face value, plus interest! Now the Fed makes anywhere from $11.00 to $3,179.00 plus interest! The Fed also brought their enforcement group the IRS and this is why they can charge a interest because they use our taxes to back the debt! This is the simplest of explantions! The Fed is a private company that has been issuing credit to the US as money when real money is the Gold deposits at Fort Knox! A Fedreal Reserve Note is an instrument of debt! In 1913 when the Fed Act was was put in place of the current system, the Constitution Article 1 section 9 stated that only Congress can coin money and regulate the value there of! With the Fed handiling the currency, first they have to back their currency with something, the Fed does not! THe fed pays the US treasury between $19.00 to $21.00 per sheet of 32 bills, denomination a non factor in the price! The Fed then bonds this cash with the US Treasury at face value, plus interest! Now the Fed makes anywhere from $11.00 to $3,179.00 plus interest! The Fed also brought their enforcement group the IRS and this is why they can charge a interest because they use our taxes to back the debt! This is the simplest of explantions!

The Fed is a private company that has been issuing credit to the US as money when real money is the Gold deposits at Fort Knox! A Fedreal Reserve Note is an instrument of debt!

]]> By: Hugh McKenna http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/comment-page-1/#comment-4361 Hugh McKenna Sun, 08 Mar 2009 18:29:40 +0000 http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/#comment-4361 I have been trying to research with specificity and key words in google what the value of the dollar is. Can someone please tell me what the dollar is actually worth today; or tell me where to go to get the figure myself. I would deeply appreciate it. Realistically, I think it's about a nickel if you don't believe what the FED says. You can write me at my e-mail written1hm@gmail.com. Thanks Hugh I have been trying to research with specificity and key words in google what the value of the dollar is. Can someone please tell me what the dollar is actually worth today; or tell me where to go to get the figure myself. I would deeply appreciate it. Realistically, I think it’s about a nickel if you don’t believe what the FED says. You can write me at my e-mail written1hm@gmail.com. Thanks Hugh

]]> By: Steve C http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/comment-page-1/#comment-4193 Steve C Tue, 03 Mar 2009 01:22:48 +0000 http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/#comment-4193 The money supply isn't expanding, it's collapsing. Few will agree with that, because M0, M1, M2 are all moving upwards. But none of these include newer debt instruments. Debt is traded and transferred like other forms of money. Over 60 TRILLION dollars of credit default swaps (CDS) alone existed at their peak. The value of this form of money is plummetting, and this represents a rapid collapse of the effective money supply that is an order of magnitude greater in the downward direction than the upwards movement of M2 and other measures. The Federal Reserve is expanding the more traditional measures of money supply to compensate for the collapse of the total real money supply. The seemingly-reckless expansion of M2 is a result of attempting to compensate for the far-larger collapse of the real money supply. Thus, the "asset deflation" is really no different from price deflation and reflects the contraction of the money supply. Welcome to 1929, relived. What the Federal Reserve is doing (quantitative easing) is absolutely correct, but probably still too small to achieve the needed effect. The fiscal stimulus of big federal budget deficits is also perfectly appropriate, but probably too small to achieve the needed effect. Steve The money supply isn’t expanding, it’s collapsing.

Few will agree with that, because M0, M1, M2 are all moving upwards. But none of these include newer debt instruments.

Debt is traded and transferred like other forms of money. Over 60 TRILLION dollars of credit default swaps (CDS) alone existed at their peak. The value of this form of money is plummetting, and this represents a rapid collapse of the effective money supply that is an order of magnitude greater in the downward direction than the upwards movement of M2 and other measures.

The Federal Reserve is expanding the more traditional measures of money supply to compensate for the collapse of the total real money supply. The seemingly-reckless expansion of M2 is a result of attempting to compensate for the far-larger collapse of the real money supply.

Thus, the “asset deflation” is really no different from price deflation and reflects the contraction of the money supply. Welcome to 1929, relived.

What the Federal Reserve is doing (quantitative easing) is absolutely correct, but probably still too small to achieve the needed effect.

The fiscal stimulus of big federal budget deficits is also perfectly appropriate, but probably too small to achieve the needed effect.

Steve

]]> By: Lobsang Tengyie http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/comment-page-1/#comment-2804 Lobsang Tengyie Tue, 06 Jan 2009 20:10:43 +0000 http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/#comment-2804 The Fed & Treasury are going to shot-term bury the value of the dollar. There is no doubt of that. Why? Because the US is faced with it's worst economic crisis since the great depression and rather than face soup lines and mass unemployment, the Obama Administration will choose to print money and TEMPORARILY kill the value of the dollar at the cost of double-digit inflation down the road in the not-so-distant future. The cost may be the toppling of the dollar as the world's reserve currency. The EU would love the Euro to ascend to that throne. As that prospect becomes more likely in 2009 one of the final props will be kicked out in the valuing of the dollar. Freefall is the certain result with the dollar devaluating 30-40% within 24-36 months. If the US Dollar manages to hang on as the majority (more than any other) reserve currency, with the 2 trillion dollar increase in the US money supply, the value of the dollar may ONLY devalue 20-30%, in the SHORT TERM. In the long term, the US economy will recover as it learns to compete with the rest of the world on a more level playing field. The Fed & Treasury are going to shot-term bury the value of the dollar. There is no doubt of that. Why? Because the US is faced with it’s worst economic crisis since the great depression and rather than face soup lines and mass unemployment, the Obama Administration will choose to print money and TEMPORARILY kill the value of the dollar at the cost of double-digit inflation down the road in the not-so-distant future. The cost may be the toppling of the dollar as the world’s reserve currency. The EU would love the Euro to ascend to that throne. As that prospect becomes more likely in 2009 one of the final props will be kicked out in the valuing of the dollar. Freefall is the certain result with the dollar devaluating 30-40% within 24-36 months. If the US Dollar manages to hang on as the majority (more than any other) reserve currency, with the 2 trillion dollar increase in the US money supply, the value of the dollar may ONLY devalue 20-30%, in the SHORT TERM. In the long term, the US economy will recover as it learns to compete with the rest of the world on a more level playing field.

]]> By: Justin http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/comment-page-1/#comment-2778 Justin Sat, 03 Jan 2009 14:55:50 +0000 http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/#comment-2778 We are not seeing "true" deflation. We are seeing asset deflation (imaginary paper values diminish) along with a vast increase in the money supply (the bailouts are causing the printing press bearings to smoke). The value of stocks and houses on paper is imaginary. There values can not be truly realized until those assets are sold. Look at the imaginary paper value of all the stocks in a market. Their current priced value can not be realized because in order to redeem that value they must be sold. As stocks are sold, their values drop. Think about it. With asset deflation consumers feel poor and are weary of purchasing wants. This does not help, and can lead to, a recession. Fearing hard times, consumer's begin saving their cash, demand and prices drop. Again, this does not a recession. The slowing of the velocity of money appears to be deflation but it is not... the money supply is not shrinking, however cashflow is slowing... it has similar effects. In order to combat and discourage the holding of U.S. dollars Helicopter Ben is running the presses into the ground. Printing money increases the supply of money (the definition of inflation). As soon as enough people realize what's happening (their cash is becoming worth less [worthless]), they will start spending it as fast as they can. This could very well be the beginning of the end of the U.S. dollar as we enter hyper inflation. Inflation IS NOT the increase in prices of goods and services and deflation IS NOT the decrease in prices of goods and services! The CHANGES IN PRICES ARE SYMPTOMS OF EITHER CONDITION BUT NOT THE CONDITION ITSELF! Inflation is an increase in the money supply (inflating money supply, NOT inflating prices) and deflation is a decrease in the money supply (deflating money supply, NOT deflating prices)... A headache is not an illness, it is a symptom of an illness or malady. Additional investigation is required to determine the cause of a headache. AS much as I hate taxes, I think the only way that the Government will be able to kill off hyper inflation, should it set in, is to tax the extra money out of existence. The government will need to destroy money collected through extremely high taxes by paying off debts and the FED. Unfortunately, once money is in the hands of politicians they like to spend it instead. We are not seeing “true” deflation. We are seeing asset deflation (imaginary paper values diminish) along with a vast increase in the money supply (the bailouts are causing the printing press bearings to smoke). The value of stocks and houses on paper is imaginary. There values can not be truly realized until those assets are sold. Look at the imaginary paper value of all the stocks in a market. Their current priced value can not be realized because in order to redeem that value they must be sold. As stocks are sold, their values drop. Think about it. With asset deflation consumers feel poor and are weary of purchasing wants. This does not help, and can lead to, a recession. Fearing hard times, consumer’s begin saving their cash, demand and prices drop. Again, this does not a recession. The slowing of the velocity of money appears to be deflation but it is not… the money supply is not shrinking, however cashflow is slowing… it has similar effects. In order to combat and discourage the holding of U.S. dollars Helicopter Ben is running the presses into the ground. Printing money increases the supply of money (the definition of inflation). As soon as enough people realize what’s happening (their cash is becoming worth less [worthless]), they will start spending it as fast as they can. This could very well be the beginning of the end of the U.S. dollar as we enter hyper inflation.

Inflation IS NOT the increase in prices of goods and services and deflation IS NOT the decrease in prices of goods and services! The CHANGES IN PRICES ARE SYMPTOMS OF EITHER CONDITION BUT NOT THE CONDITION ITSELF! Inflation is an increase in the money supply (inflating money supply, NOT inflating prices) and deflation is a decrease in the money supply (deflating money supply, NOT deflating prices)… A headache is not an illness, it is a symptom of an illness or malady. Additional investigation is required to determine the cause of a headache.

AS much as I hate taxes, I think the only way that the Government will be able to kill off hyper inflation, should it set in, is to tax the extra money out of existence. The government will need to destroy money collected through extremely high taxes by paying off debts and the FED. Unfortunately, once money is in the hands of politicians they like to spend it instead.

]]> By: Mark Herpel http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/comment-page-1/#comment-2775 Mark Herpel Fri, 02 Jan 2009 23:08:03 +0000 http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/#comment-2775 It is sinking but could take years to bottom out, or it could be next year. Simply put the best way to protect your saving may be digital gold currency. This is allocated gold stored for you in secure bullion vaults. You own the actual gold not some paper promise and the account value moves daily with your holdings. Unlike gold coins kept in the home, digital gold can be bought or sold 24/7 it's always liquid. Mark It is sinking but could take years to bottom out, or it could be next year. Simply put the best way to protect your saving may be digital gold currency. This is allocated gold stored for you in secure bullion vaults. You own the actual gold not some paper promise and the account value moves daily with your holdings. Unlike gold coins kept in the home, digital gold can be bought or sold 24/7 it’s always liquid.
Mark

]]> By: Shalom Patrick Hamou http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/comment-page-1/#comment-2772 Shalom Patrick Hamou Fri, 02 Jan 2009 19:41:04 +0000 http://www.mybudget360.com/the-federal-reserve-and-us-treasury-determined-to-sink-the-us-dollar-in-2009-why-gold-and-us-dollar-went-up-in-2008/#comment-2772 <b>Quantitative Easing Won't Work</b> In a Liquidity Trap although Saving (S) is abnormally high investment (I) is next to 0. Hence, the Keynesian paradigm I = S is not verified. The purpose of Quantitative Easing being to lower the yield on long-term savings it doesn't create $1 of investment. It does diminish the yield on long-term US Treasury debt but lowers marginally, if at all, the asked yield on savings. This and other issues are explored in my tract: <b>A Specific Application of Employment, Interest and Money Plea for a New World Economic Order</b> Abstract: <i>This tract makes a critical analysis of credit based, free market economy, Capitalism, and proves that its dysfunctions are the result of the existence of credit. It shows that income / wealth disparity, cause and consequence of credit and of the level of long-term interest-rates, is the first order hidden variable, possibly the only one, of economic development. It solves most of the puzzles of macro economy: among which Business Cycles, Stagflation, Greenspan Conundrum, Deflation and Keynes' Liquidity Trap... It shows that no fiscal or monetary policy, including the barbaric Quantitative Easing will get us out of depression.</i> <b>A Credit Free, Free Market Economy will correct all of those dysfunctions.</b> The alternative would be, on the long run, to wait for the physical destruction (through war or rust) of most of our productive assets. It will be at a cost none of us can afford to pay. <b><a href="http://www.17-76.net/interest.html" rel="nofollow">A Specific Application of Employment, Interest and Money</a></b> http://www.17-76.net/interest.html Quantitative Easing Won’t Work

In a Liquidity Trap although Saving (S) is abnormally high investment (I) is next to 0.

Hence, the Keynesian paradigm I = S is not verified.

The purpose of Quantitative Easing being to lower the yield on long-term savings it doesn’t create $1 of investment.

It does diminish the yield on long-term US Treasury debt but lowers marginally, if at all, the asked yield on savings.

This and other issues are explored in my tract:

A Specific Application of Employment, Interest and Money
Plea for a New World Economic Order

Abstract:

This tract makes a critical analysis of credit based, free market economy, Capitalism, and proves that its dysfunctions are the result of the existence of credit.

It shows that income / wealth disparity, cause and consequence of credit and of the level of long-term interest-rates, is the first order hidden variable, possibly the only one, of economic development.

It solves most of the puzzles of macro economy: among which Business Cycles, Stagflation, Greenspan Conundrum, Deflation and Keynes’ Liquidity Trap…

It shows that no fiscal or monetary policy, including the barbaric Quantitative Easing will get us out of depression.

A Credit Free, Free Market Economy will correct all of those dysfunctions.

The alternative would be, on the long run, to wait for the physical destruction (through war or rust) of most of our productive assets. It will be at a cost none of us can afford to pay.

A Specific Application of Employment, Interest and Money
http://www.17-76.net/interest.html

]]>