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Old 24-10-08, 01:55 AM   #7
floydian slip
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Join Date: Jul 2001
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Yeah, Its hard to say what is what anymore .

Do we own the federal reserve now or do they own us since the failout law?

You are right though. The Federal Reserve System (before the bailout) not an actual government agency. Just like Federal Express is not a government agency.

Here is an interesting read about why the dollar is so strong now and gold silver and oil have all been crashing.

Quote:
Aside from the social engineering that is going on to destroy this Republic and distract people with a contrived soap-opera of an election (which may have a surprise ending), the markets are crashing and people are confused about what is really going on. Some people, and certainly those who are running the show, know fully well what to expect, but the average investor is kept confused by the pseudo-intellectuals and bought-and-paid for experts.

As the Treasury is being looted by a cadre that has taken over this government -- and totally debases the U.S. dollar by massively increasing the monetary base -- people sit back in utter amazement and confusion as they watch the U.S. dollar climb on foreign exchange markets. It doesn’t seem to make any sense, and people who are rationally trying to protect themselves against this debasement of the currency by buying tangible assets, are in a losing situation. But it does make sense. And to understand the mechanism (and timing) of the dollar’s climb is the only way to avoid harmful, premature investments.

It is well-known that enormous amounts of US bonds and other paper securities are held by foreign governments, including China, Japan, and other governments. Those governments know that the US currency is being irreparably debased, and they know of course also that everything denominated in US dollars, is simultaneously being debased. This includes those US bonds and other paper securities. They are no idiots, and want to sell the paper. If they dump it on the market, the price of that paper would go down because they simply have too much of it to move. So they try to sell it in smaller lots, and sell just enough onto the markets so as to not affect the price too adversely.

The key to understanding why the dollar is going up has to do with what in fact those countries get in return when they sell that paper. They are getting something, and that something is Dollars. The more bonds they sell, the more dollars they get in exchange for those bonds, and this causes a temporary shortage of dollars which temporarily increases the value of the dollar. The more bonds they sell, the greater the shortage of dollars to pay them, and the higher the dollar.

What we are witnessing with the current increasing value of the dollar is a temporary phenomenon, and the magnitude of that increase in the dollar correlates with the magnitude of just how much US paper foreign governments are trying to dump. The only thing that is keeping the bond markets from collapsing with this ongoing, massive selling of bonds by foreign countries, is the fact that, within the US, there is concern about the stock market and a misnomered flight-to-safety where people buy bonds instead of equities. Because there is no other vehicle large enough to accommodate the sheer amount of fiat currency in the US, corporations and others are literally forced to buy up bonds and Treasury securities, even though the debasement of the currency will make these dollar-denominated assets plummet as the effects of the debasement unfold.

The rise of the dollar is entirely temporary, and is mechanistic and time-limited in nature. When those foreign countries take possession of the dollars they are paid in exchange for the bonds and securities they are selling, they will then want to dump those depreciated dollars. So essentially, the value of the dollar will first spike, then hover in a seeming steady state of equilibrium, but then collapse. When the dollar then inexorably starts down, the game is over, and all the consequences that have rationally been predicted for social collapse and re-structuring of this Republic will quickly come to pass, as does day to night.

As the municipal, county, and state governments sequentially go bankrupt from their ownership of 70% of stocks in the stock market, and as they flee from the stock market to buy depreciating US bonds, everybody goes broke in a catch 22 situation. The key to the timing of these events is to watch the bonds and the inter-related, but temporary, mechanistic spike in the dollar, for when those foreign countries have received those depreciated dollars, they will, for their own survival, dump those also, and everything inevitably unwinds.

These things are known to those who are looting the treasury before the inevitable collapse. Bush himself has bought a 100,000 acres of land in Paraguay, and has his exit strategy planned out. Instead of declaring a force majuere, all-contracts-void in the mammoth derivatives scam, those people who are looting the treasury of this country plan on making vast fortunes on the collapse of the stock and other markets. Why, for example, will the stock market go down? The answer is “Because That’s Where the Money Is.”

The only real question is: Where is the Provost Marshall General and Where are the Naval Flag Officers who have the full legal authority to stop the expropriation of trillions of dollars by arresting corrupt government officials, and have the power to prevent the bankers and their cronies from destroying this Republic? Yes, where is the Provost Marshall General, and where are those duly appointed, patriotic Officers who still believe in defending this country against enemies foreign and domestic?
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