Infinite quantitative easing (QE3) now initiated; the final chapter of America's financial blowout has begun

Sunday, September 16, 2012 by Mike Adams, the Health Ranger Editor of NaturalNews.com (See all articles...) Tags: quantitative easing, Federal Reserve, money creation

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(NaturalNews) This is it, folks: the final chapter of America's great financial blowout has begun. The Federal Reserve's decision to announce "infinite" quantitative easing has now put us all on the path of infinite money creation. With up to $85 billion in monthly money creation -- including $40 billion a month in purchases of mortgage-backed securities -- the Fed is now wholly committed to the creation of new fake money to cover old fake debts. Mathematically, this financial death spiral can only end in sheer catastrophe.

This massive money creation tactic is the Fed's last-ditch plan to desperately try to save the economy. "I think the country should have panicked over what the Fed is saying that we have lost control," said Ron Paul, "and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time."

Peter Schiff added, "This is a disastrous monetary policy; it's kamikaze monetary policy." (End Of the American Dream)

And he's right. It's suicide. It's also highly offensive to anyone who can actually do math... which, sadly, isn't that many people these days.

Steal from the poor to give to the rich

Quantitative easing, you see, is essentially the Federal Reserve creating money and then handing it to the richest banks. Meanwhile, all that new money floating around erodes the value of the dollars in the hands of the working taxpayers. So their grocery bills go up. Their fuel costs go up. Their daycare costs increase and their utility bills creep ever skyward.

But the rich banksters are simultaneously rolling in FREE Fed cash, and instead of actually lending this money out and doing something useful with it, they crank up their own executive bonuses to make sure they get paid while the rest of the economy crumbles. And why? It's simple: Because people are crooks, and if they get handed $40 billion a month in free money, they're just going to grin and say, "How can we get MORE?"

That's the credo of the banks: MORE!

When you're out of a job and looking for honest work just to put a roof over your head, the bank is repossessing your house and screaming "MORE!"

When you can't make that car payment and you have to start riding the bus with the minimum wage masses, the banks scream "MORE!"

When you're trying to put healthy food on the table for your own family, and you see food prices ratcheting higher and higher as the value of your hard-earned dollar erodes, the banks scream "MORE!"

This mantra is all they know. The top global banks do not operate on compassion, benefit to society, fairness or even anything resembling lawful activity. They simply hornswaggle their way into the receiving end of ALL the money: Mortgage money, bailout money, government money and of course Fed money. That's the game, you see: Screw the whole world and everybody in it. There's MORE to be had!

Fed pumping is essentially a Ponzi scheme

How long will this go on? Until the whole system suddenly collapses due to its own corruption and greed. All such systems eventually collapse, of course. The Federal Reserve is essentially pushing a global Ponzi scheme where new money is created in order to keep old money from being lost.

The problem with all Ponzi schemes is that their very survival depends on continually expanding the money base upon which they operate. And since mathematics tells us that no currency system can be expanded to infinity, every such Ponzi-like system must, by definition, come crashing down.

We've seen it time and time again, of course. Zimbabwe cranked its currency into hyperinflation and then collapsed. So did Argentina. Chile. Peru. Weimar Germany, too:

In 1922, the largest denomination of the Papiermark was 50,000. A year later it was 100 Trillion. This means that by December 1923, the exchange rate with the US Dollar was 4.2 Trillion to 1. It is estimated that by November 1923, the yearly inflation rate was considered 325,000,000%. (http://www.mint.com/blog/trends/hyperinflati...)

Yugoslavia: "...during the height of hyperinflation (December 1994), inflation was increasing by a rate of 100% per day."

Peru: "Peruvian government decided again to replace the currency, this time with the Neuvo Sol, at a rate of 1,000,000,000 to 1."

Zimbabwe: "In August 2008, the government removed ten zeros from the currency, and 10 Billion ZWD became equal to 1 New ZWD, with an estimated annual inflation rate of about 500 quintillion (18 zeros) percent, with a monthly rate of 13 billion percent."

Hungary: "In 1944, the Hungarian Pengo's highest denomination was the 1,000 note. A year later it was 10,000,000. And by mid-1946, it was 100,000,000,000,000,000,000."

Can this happen to the U.S. dollar?

The good news is that the U.S. dollar has a large circulation base. The U.S. dollar M2 money supply is roughly $10 trillion.

That sounds really large until you consider the U.S. national debt is, all by itself, $16 trillion. (www.USdebtClock.org) In just four more years, by 2016, that debt will almost certainly reach $22 trillion. (http://www.usdebtclock.org/cbo-omb-gop-budge...)

On top of all this, if the Fed is printing $85 billion a month, it adds another trillion dollars to the monetary base each year. Effectively, this means the Fed will be expanding the money supply by 10% annually, from day one. Except it doesn't end there, of course. In just a few months, the $85 billion a month will need to be increased to $200 billion a month. Then $500 billion a month. And before you know it, the Fed is creating one trillion dollars a month in a grand, final blowout of the U.S. dollar.

QE3 becomes the "infinite bailout" strategy of the Fed. But there's a problem in all this: Infinite money creation means infinite devaluation. As the money supply expands, the value of the dollars currently in circulation (physically or electronically) approaches ZERO. Such is the curse of mathematics and the laws of economics.

A global debt dump is inevitable

The final phase of all this will be radically accelerated, of course, by the dumping of U.S. government debt by other central banks in China, Japan and elsewhere. When they see the writing on the wall, they'll stage a selloff. The selloff will send shockwaves throughout the financial sector, causing investors to flee the dollar and ultimately resulting in the Fed creating even more fiat currency to buy back U.S. debt in a last-ditch effort to prevent a national bankruptcy.

This is the point where you get into Zimbabwe territory... where the government is forced to issue "new dollars" with a trade-in value of 1,000,000 to 1, and where the Fed becomes the last buyer of U.S. debt because nobody else will touch it. This is a lot like getting a cash advance on your credit card in order to make your minimum monthly payment. The debt accumulates as crushing compound interest, and there is no escape from the inevitable default.

This day is coming for America and the U.S. dollar.

Timing? Still unknown

The timing on all this is, of course, an unknown. Some of the more outspoken critics of Fed financial policy believe we're going to see a financial meltdown before the end of April 2013. Others think it may take several years longer. A few observers say we'll be lucky to make it to Christmas.

Personally, I'm always amazed at how long corrupt institutions can prop up their monetary scams, so I tend to think a full-blown meltdown might require years to take place. But the banking debt crisis is likely to happen much sooner, potentially even this year (after the election). That's not an official prediction, however; it's just a cautious warning to be safe rather than sorry. Historically, my own predictions tend to be 1-3 years too early. I began warning about the dot-com bubble in 1998, for example, and it didn't burst until 2001. I began warning about the housing bubble a year or two before it collapsed.

Either way, the U.S. dollar has become a game of musical chairs, and the loser is anyone holding dollars when the music stops. Don't have all your eggs in the dollar basket when that day comes, okay? Diversify into storable food, gold, farm land... anything that holds value through a currency collapse.

Because remember, the value of the currency you hold can be stolen from you even if the physical paper money is not. This swindle has been repeated countless times throughout human history, always by corrupt central bankers and government conspirators. Time after time, the People get scammed, and time after time, most of them can't even figure out who stole the money. That's the evil genius of the entire plan: Currency creation is invisible theft. With every new dollar they create, they effectively steal one dollar's worth of purchasing power from those who hold the currency.

In essence, then, the Federal Reserve has announce its plan to steal $85 billion a month from those who hold U.S. dollars... with no limit to the number of months this theft will continue.

We are staring into the eyes of the beast here, looking at the greatest financial swindle ever pulled off in the history of the world. This is the banker end game. When this chapter is complete, the people will be left with nothing while the banks own everything. It's all about MORE! ...remember?