Insanity or Ingenious?

By Greg Hunter’s USAWatchdog.com

What is happening in the economy is signaling enormous changes for the U.S. and the world.  The scale of what the Federal Reserve is doing is unparalleled in human history.  No country has ever produced so much money and so much debt in such a short amount of time.   The Fed has embarked on another round of money printing (Quantitative Easing or QE2).  It has been reported that it will buy $600 billion in Treasuries and another nearly $300 billion in mortgage-backed securities.  In a statement nearly two weeks ago, The Fed left its plan of money printing open-ended.  It said it would, “regularly review the pace of its securities purchases and the overall size of the asset-purchase program in the light of incoming information and will adjust the program as needed.”

All the fancy financial terminology and complicated skullduggery can be boiled down to a simple phrase or two.  The dollar is being debauched at the hands of the Fed, and the massive debt and future commitments we owe will never be paid off in “real” money.   Boston University Economist Laurence Kotlikoff says the real amount America is on the hook for is $202 trillion. For perspective, just one trillion dollars is a stack of $1,000 bills nearly 65 miles high!

The Fed is trying another round of QE, even though the first installment of $1.7 trillion did not work to actually repair the economy.  We spent another $2 trillion in TARP and other stimulus that was, also, supposed to fix the economy.  It’s a grand total of $3.7 trillion just in the last two years.  (Some say it’s more than $12 trillion spent or committed.)  All this money printing did inflate stock prices.  It also helped out the big banks.  It worked so well they are paying a record $144 billion in bonuses this year.  What did the man on the street get?–foreclosure fraud and higher unemployment (22.5% according to Shadowstamts.co).   Now, the money is running out, and the Fed is back to printing to keep the economy from falling off a cliff–again.  Nothing has been fixed; the day of reckoning has just been postponed, but this cannot go on forever.  At some point, the U.S. dollar will take a severe plunge, and inflation will hit America with a vengeance.

For the life of me, I cannot understand why anyone would believe the Fed on any issue or prediction.  These are the same people that fueled the internet and housing bubble and told us the sub-prime real estate crisis would be “contained.” You see how that worked out.  In some markets, housing is down 50% since the peak.  Foreclosures are hitting record highs, and this is all going on as interest rates are at record lows.  The Fed’s actions are temporarily holding mortgage interest rates down.  Meanwhile, the government is supplying 95% of the mortgages.  What is going to happen when the government stops doing this and mortgage rates go up to just 7% or 8%?  Are we going to see another crash in home prices?  How can we not?

The commercial real estate market is in the same dire straits as residential.  It needs tens of billions of dollars each and every year to refinance debt on buildings that have fallen dramatically in value.  Nearly every state in the union is having budget shortfalls that total $200 billion, according to banking analysis Meredith Whitney.  The states need massive bailouts and budget cuts.  And to top it off, we are fighting two very expensive wars with no end in sight.  All of this is an enormous drag on the economy.

Because of the mainstream media’s poor coverage of the economy, most people have no idea how bad things really are.  They are being told constantly that we are in a “recovery.” There is no “recovery” because nothing has been permanently fixed.  Banks are allowed to price toxic assets and devalued real estate at peak prices.  The government sanctions what amounts to be accounting fraud to help the banks look solvent when, in fact, they are in deep financial trouble.  (In April of 2009, FASB changed accounting rules to allow banks to hold real estate and mortgage bonds at whatever value they want, even though some are only worth a fraction of their original value.) It’s like someone in Kansas that only sees flat ground for as far as the eye can see and think’s the world is flat.  If you only see bogus accounting, you would think the banks are a picture of health when just the opposite is true.  Mainstream media does not even cover the nearly 150 small and regional banks that have gone under this year alone.  It is the most bank failures since the savings and loan crisis in the early 1990’s.  You do not hear the mainstream press make even a peep about this sea of red ink at the FDIC.

I am told constantly by my readers that most in the U.S. do not understand what is going on.  What is coming is a much lower standard of living for most Americans because of inflation. The reason is the Fed may not be able to stop printing money.  Sound crazy?   Jim Rickards, an expert in investment banking and risk management, says the Fed has no way to stop the runaway money train.  In a recent article he did for King World News, Rickards said, So, here’s the bottom line on money printing, or QE if you prefer.  If nothing happens, the whole thing was a waste of time.  If inflation takes off, the Fed will have to choose between holding bonds and letting inflation get worse or selling bonds and going bankrupt in the process.  Since no entity goes down without a fight, the Fed will naturally hold the bonds and let inflation take off.  Do not ask about the exit strategy from QE; there is no exit.” (Click here for the complete KWN article.)

Albert Einstein’s definition of insanity is “doing the same thing over and over again and expecting different results.” I don’t think Ben Bernanke and the rest of the Fed think they will get a different result with this fresh batch of money printing.  It will get what it got the last time.  It will kick the can down the road and help the big banks look solvent and help the stock market.  By the way, according to Zerohedge.com, “. . . last week’s insider selling of all stocks (not just S&P) hit an all time record of $4.5 billion.” (Click here for the complete post from Zerohedge.com) When the phony money runs out, QE2 will end in failure for the overall economy, and the man on the street will still be left out in the cold winds of inflation.  So what the Fed is doing is not insanity or ingenious.  Money printing is simply all it has left in its bag of tricks.  I think it wants to print all it can to save its buddies before the currency evaporates in a hyperinflationary depression.

Comments
  1. Phil Cooper

    The time has come to seize the assets of the Federal Reserve and finally put it out of business. It is an illegitimate organization, a private banking cartel that used deception and lies to have its operating rules grafted onto the U.S. code of laws in 1913 and thereby expropriate the American people.

    • Greg

      Phil,
      Thank you for your comment.
      Greg

  2. Robert

    So the stage is being set. But is it early 1930s Germany or 1930s Italy, or somewhere in between?

    Is history repeating itself? What are the next events we should anticipate?

    Who or which groups will be scapegoated when that time comes?

    • Greg

      Yes Robert the stage is set and it will be one ugly play. I have no idea what this will look like because a financial mess of this gigantic size has never happened before in human history. The only sure thing is the American people will be crucified on a cross of inflation. Thank you for your questions.
      Greg

  3. Stephen Clifton

    If inflation is inevitable could you actually profit from this by buying gold and silver? Can they suppress these commodities into perpetuity?

    Stephen

    • Greg

      Stephen,
      Gold and silver coins (bullion) are an insurance policy that never expires. You do this to protect your wealth. No commodities cannot be suppressed into perpetuity. Thank you for your comment and question.

    • Paul R.

      If gold and silver simply track inflation, then no, you cannot profit, because gains in asset prices due to inflation are treated as real gains by the tax codes. Ex. you buy something at $1000 and 100% inflation drives its price to $2000. You need it to remain at $2000 to break even. But, the $1000 gain is taxable. Let’s say it’s taxed at 30%. The tax man takes $300, and you have $1700. You have not kept up with inflation; you are falling behind. But, you are doing one heck of a lot better than if you just held on to your original $1000 in cash. More about this here: http://www.financialsensearchive.com/fsu/editorials/amerman/2010/0611.html

      There are two obvious ways to get around the problem just described, if you take possession of physical gold and silver. That is to barter it for what you need. However, very little barter occurs today, so barter is not a practical solution for most people. The other is to sell it in an undocumented cash transaction, however, I cannot advise you not to report “income”. That is up to you.

      On the other hand, if allegations of gold/silver price suppression schemes are true, then suppose these schemes fail at a time when gold/silver are grossly undervalued. It is possible that the prices would shoot up much faster than inflation. Then, it would be possible to make real profits, even after taxes.

      • Greg

        Thank you Paul R.
        Greg

  4. Hognutz

    Greg,(OT) heard ya on Coast to Coast AM, this morning enjoyed it immensely!

    • Greg

      Thank you Hog!
      Greg

  5. Brian

    Greg, Kinda off topic (if that is possible) I was listening to your Coast to Coast discussion off and on (As I’m at work now). Are you going to be able to post the complete interview? It is something that alot of people need to hear. I only caught about 45min of it and I’m really wanting to hear ALL of it now but can’t. Thanks! Brian

    • Greg

      Brian,
      I think you have to go on C to C and pay a small fee to get access to the archived radio programs. Thank you for the comment and support.
      Greg

      • Diane Carol Mark

        Hi Brian and Greg,
        Yes, Greg’s interview displays in the Listen section on the Coast-to-Coast iPhone app as Sunday, Nov. 14th, 2010 Hour 2, Hour 3 and Hour 4.

        :) Diane

        • Greg

          Diane,
          Thank you for checking on that for our readers.
          Greg

  6. Jeff B

    Greg:

    Great post! I am very concerned about where to go with investments now. I was lucky enough to cash out at the peak and just been sitting on it now. I have not ventured into gold as I feel it may bubble also. I paid off all my debt and just not sure which way to go.

    I agree with you, we are in for a turbulent ride sometime in the not far distant future.Never in the known history has a country mismanaged the economy as this one has.

    am not sure if the recent election was as big of success as it should have been. We needed to get all of them out not just the small percentage that was replaced. Will the new faces be able to guide us in a sane direction? How can you gamble on that?

    • Greg

      Jeff,
      You simply must have some exposure to silver and gold coins. You are holding cash while the Fed is printing it and handing it out to there buddies. Think: “What is money?” Coins are an insurance policy for financial calamity and also MONEY.

  7. bob

    If anyone is intersted in how the Federal Reserve got started, you should read the book called “The Creation of Jeckle Island.” You can find in on Amazon. It will not only make you mad,you will want to fire all those who created the fed reserve, and those who have continued with the fraud and are still running this country and putting us into the mess we are now in, starting with the present top.

    • Greg

      Thank you Bob.
      Greg

  8. Art Barnes

    Best article you have written to date. Spread the word, stop the insanity, stop the printing. Buy, sale, trade, and do your economics locally, with americans or countries who are actually are friends, for example Canada. India, China, Mexico, etc. are not on our side and don’t deserve to be supported by our dollars. Simply refuse to buy them, look somewhere else and pay 10 percent more to keep an american job. Because american business is based upon percentages it won’t take long before “they” get it and put more american stuff on their counters. Only about 10 to 20 percent of the people need make the change and the counter space will start filling up with american goods instead of from some forein power which would like to see us fail. Wake up american, besides the two wars we are fighting in the middle east, we are in an global economic war, unfortually for us, we are fighting on twp fronts, the forein one and the one at home (our own govenment). This thing does not have to crash and burn. Once the demand starts being heard for american made goods the factories will hire, both large and small, and we can get growth again. But as we grow we must demand a fundamental change in the way we govern, tax, and spend. We must learn from the past and choose not to repeat it. America first, foremost, and always.

    • Greg

      Art,
      Amen to that Bro!
      Greg

  9. Tom

    When the financial crisis really hits like I believe it will there will most likely be civil unrest. What kind of country can we expect to live in when we hit bottom? Who will really own us?

    • Greg

      Tom,
      Your questions and thoughts are on target.
      Greg

  10. Jeff

    Greg,

    I caught you on the last hour of Coast to Coast and was very impressed with you economic insights. I am close to retirement with no pension except for an IRA & Social Security.

    -Does buying a retirement home in Florida make sense now with real estate looking like another correction in the next two years? ( Would a buying strategy be to buy at 2001 values?)

    -IRA funds should be a mix of cash & equity(including metals)….say 50%/ 50%?

    Hope to hear more from you!

    • Greg

      Jeff,
      Don’t buy now. When you do, you must only buy from someone who can prove they own the property. Rent for a few years until we get a better focus on the mess the banksters have created in the real estate market.
      Greg

  11. Red

    RE: “I am told constantly by my readers that most in the U.S. do not understand what is going on.”

    that is ABSOLUTELY true. my CPA, RE agent, etc…i’ve sent them website after website to read, with articles, links, etc…and they BOTH could care less…

    Please advise everyone to go see the movie Inside Job. It’s nothing new for us, but MAY finally open someone’s eyes…

    Keep up the good work.

  12. Red

    RE: “For the life of me, I cannot understand why anyone would believe the Fed on any issue or prediction.”

    we are CONDITIONED to believe those in power. Even I, now the most paranoid, unbelieving (not in a religious way), and cynical person regarding banksters and politicians have to fight EVERY SINGLE SECOND to doubt everything that I hear. I sometimes just find myself listening, and then say, hey, wait a second, that’s what they just said…but it takes constant vigilance. Not easy, especially for sheeple, and for sheeple struggling to survive every day, even harder.

    PS Strange my Mac computer doesn’t understand the word “Bankster” also, it keeps trying to spell correct it ;)

    • Greg

      Red,
      Thank you for all of your comments, and thank you for making them here!
      Greg

  13. Red

    Suggest sending this link:

    http://fofoa.blogspot.com/2010/11/open-forum.html

    also to all your friends. The first video there tells it all, and maybe others can understand that version of QE

  14. Dr. Neal Joel Houston

    Greg, Yet another great article…and the cartoon..too funny
    Keep the articles going..

    • Greg

      Thank you Dr. Houston for your kind words and comment.
      Greg

  15. slingshot

    How bad is it going to be? That’s the $64,000 question or is it Two Trillion. One of the problems is that most people have never been in a position where things go or can go very bad in a hurry. Examples are having smoke in the cabin of an airliner at 30,000 feet or fire at sea in the middle of the ocean. Which would you choose? In each case it will be a life changing event. That is where we are now. Waiting for the event to change our lives. Most would not have noticed if not lightly mentioned on the news. Most do not even care as this slow moving train wreck comes into our lives. Some are already there living on the streets. Imagine no more welfare,unemployment,social security, medicare, pensions or other payments.
    What am “I” going to do now? Notice I said, “I” not “WE”.

    • Greg

      Slingshot,
      Right on man!
      Greg

  16. Red

    test, all my prior comments simply “disappeared” poof?

  17. Red

    ah, weird (very weird). they now show up again…WOW. even browser forced refresh didn’t make them appear, until I posted the test comment again. Ah, I get it. you can only see YOUR moderated comments, until they are “moderated”, based on a cookie on your computer until the moderator approves them. Ok… Do I get brownie points for figuring out how the site works? ;) Sorry for the extra noise, just trying to help.

  18. nm

    Robert:

    Zerohedge had a post where he said that America is in a 1930’s like depression, but the only reason it doesn’t look as bad as the 1930’s is because instead of food lines, people have electronic food stamp cards and electronically deposited unemployment checks(they were no credit cards in 1930)

    See post below:
    http://www.zerohedge.com/article/guest-post-idepression-20

    Are most Americans getting what’s coming yet? I don’t think so, but they will soon. Already, I have a couple of friends who’ve been laid off (as in, told on Monday that it was their last day & they had to leave. Only 2 weeks of severance given). Another round of layoff’s is coming, I think. Companies don’t have the revenues to support high salaries and high health care benefits.

    This will kill Obama’s chances at re-election.

    • Greg

      nm,
      I think you are correct.
      Greg

  19. MarkM

    Hey Greg,

    This is the money quote from your article:

    “What did the man on the street get?–foreclosure fraud and higher unemployment (22.5% according to Shadowstamts.co). Now, the money is running out, and the Fed is back to printing to keep the economy from falling off a cliff–again. Nothing has been fixed; the day of reckoning has just been postponed, but this cannot go on forever. At some point, the U.S. dollar will take a severe plunge, and inflation will hit America with a vengeance.”

    Nuff said.

    markm

    • Greg

      Thank you MarkM!
      Greg

  20. M SMITH

    Greg I found info that has meaning to all of us. We are in for more Big Brother, as this article speaks for its self. http://www.goldseek.com,11/14/2010, “Facecrime”, by Doug Hornig. Only one reporter was present, no MSM?. It’s a eye opener & warning to all that may protest the gov actions. If I read what this computer program was made for, to target TERROR THREATS, but how it will be deployed looks to be very different! I hope you folks will read.

    The Fed will blame congress & states for the Banking mortgage fraud, that’s no surprise, but the OTC DERIVATIVE CREDIT DEFAULT SWAPS WILL COST TAX PAYERS MORE PAIN! Wall Street not only produced sub prime mortgage in the trillions, OTC DERIVATIVES credit default swaps that non profits, U.S. states & cities dove into by the smooth talking Wall street hacks to save them money to build schools, bridges,waste water plants & to maintain many other projects. Aug,2010, N.C. paid $58.9 million to New York based Morgan Stanley, this money could of paid to employ 1,400 state workers! That is only one of the hundreds of such payments made by cities & states to the New York based bankers who took advantage of folks whom over saw these monies!

    Americans should decide if they would support the Gutting/Cutting or Ending of all of Congresses/State Reps & City elected officials, huge for life retirement benefits,top of the line Free Medical & all the other perks they get or gut social security. How many in congress are Million/billionaires? Many that got it off the backs off tax payers & from bribes from big corporations to get laws passed in their favor.

    Next, a must read from, http://www.bullionbullscanada.com 11/15/2010 by Jeff Nielson: Foreclosure-Fraud Fight: Fed vs States. One republican, Spencer Bachus is the media darling to head the Chairman of the FHSC, HE is a friend to the TBTF BANKSTERS & has no place to represent the public, Greg he no different than Frank & Dodd, he must be outed by all means possible or the fed & banks will continue to trump property rights on all Americans. The rate of new news & dirty tricks are coming a the speed of sound. Silver/gold are still cheap, get it while you can! Thanks Greg, stay strong against the the people trying to shut down the net.

    • Greg

      M Smith,
      Thank you for the comment and the links.
      Greg

  21. Bob

    The unemployment insurance is coming up for funding, are not. It’s not that much money but it’s the message of the trouble were in. The people take that money an try to make one more house payment. Another warning sign people should of seen is how people were living from pay check to pay check for many years. Just like stores with on time deliver,one hole in the road and the whole system gets jam up. We are just living in a lawless land were anything can happen and nobody wealth is safe. Buy a little farm and hope for the best, before your money is worthless,everyone got to eat. PEACE

  22. Nini

    Dear Greg,

    I heard you on Coast to Coast last night and I was very impressed with your information. I grew up in the third world were the value of money or lack of it was very visible. I agree with you they are crushing the dollar and there by in-slaving millions. I am real afraid that American will not fight back because they have never lived in a world were the government tell you how much money you allowed to take out of your bank and were prices rise daily…I am wondering how we can get out of this situation and how to inform people…Please give me your thoughts….Also if my mortgage company cannot produce my bank note, which should I do (ie carry on paying them?? or how do I protect myself.
    Thank for your great work..

    • Greg

      Nini,
      I don’t know how we are going to get out of this but I am warning people to take cover and protect their assets. First find out if they can produce the Promissory Note. That is proof they actually own your mortgage. Do not do anything unless you get counsel from a qualified real estate attorney. Another way people should protect their wealth is to buy some gold and silver coins. You will have to decide how much protection you need and can afford.

  23. lostinmissouri

    “just one trillion dollars is a stack of $100 bills nearly 68 miles high!” Kotlikoff says we are on the hook for $202 trillion?

    That is more than twice as high as Mt. Everest.

    I guess that kind of gives you a target, for where gold/silver may be heading…….moon shot! Buckle up.

    • Greg

      lostinmissouri,
      I like your math skills.
      Greg

      • Zannon

        No offense Greg, but I hope your predictions are better than lostinmissouri’s and your own math skills.

        Mount Everest is 5.5 miles high. 68 miles high would be 12 times Mt. Everest’s height.

        • Greg

          Zannon,
          Nobody is perfect. Thank you for the correction.
          Greg

  24. Jordan Schulze

    I am constantly finding it harder and harder to find work as a graphic designer and internet marketing guru. Are their any industries or jobs that I should be looking into switching to?

    • Greg

      Jordan,
      I simply do not know, but I will say you should find out what you love and try to do that for a job.
      Greg

    • Diane Carol Mark

      Jordan,
      Maybe enhance with a technical skillset for phone apps, api’s and code basics. I’m sure that great design for phone apps, websites, etc., will remain valuable and those jobs are inside the U.S. But, having a technical edge will help.

      :) Diane

  25. Patrick

    All fiat currency returns to its original intrinsic value of zero- Voltiare. Since the Us dollar is the worlds reserve currency imagine it soon being not worth less but worthless as was the case in Zimbabwe. When the world goes to dump the dollar because of the continued debasement it could pale in comparisson to the Weimar and Zimbabwe scenarios.

    • Greg

      Patrick,
      You are correct sir!
      Greg

  26. Mitch Bupp

    Greg, This is pure insanity. I have to ask if this is being done in concert with the big banks who are buying up precious metals and in paticular JP Morgan to drive up the price of silver or gold? I Is this the next bubble creation to fleece us? JP is so overloaded with silver futures that it could sell short before a call on those futures bankrupts them. This might be one of a variety of strageties that monster-mega banksters are now using to screw us. And they wonder why people think there is a conspiracy to defraud here ……..

    • Greg

      Mitch Bupp,
      Good question and I have to tell you we are in uncharted waters so who knows how this will turn out. Thank you for weighing in here.
      Greg

  27. Charlie

    Call me a conspiracy nut but I’m of the opinion this is all being done on purpose to crash the world economy and implement a world bank with world govt. Bernanke is doing this on purpose. I just wonder if they’ll actually get to QE3 or QE4 before this thing blows… Help Crash JP Morgan, Buy Silver!!

    • Greg

      Charlie,
      Whether nit is on purpose or not the outcome will be the same. I fear we are heading for an economic collapse. I hope will all my heart I am Dead Wrong!
      Greg

  28. BenFlorida

    Greg, your final two sentences summarizes the current environment. The power players are being made whole to replace the losses they already have but have not realized. The anger we see towards America is a recognition of the impending theft by the US via inflatation. I think the Fed knows exactly what they are doing and are doing so at the direction of those very power players. They justify this strategy by stating that there are no other options that offer a softer or less hard landing. Civil unrest is nearly a certainty. States, clearly will be unable to deliver services at these levels. The citizenry will only need a flashpoint and I do not think that will be too difficult to find.

    • Greg

      Thank you Ben for your analysis–it is concise but spot on!
      Greg

  29. David Conrad

    Sadly my friend, you are spot on.

    • Greg

      David,
      Thank you my good friend!
      Greg

  30. Jan

    Everyone needs to own some silver & gold insurance. I have a Russian friend I should have listened to two or three years ago. I came late but am adding a little each month.

    My friend survived the fall of the USSR. I pepper him with questions all the time. Last week, I asked him what happened to people’s money, their savings accounts in the bank. The answer “the government took it all.” He told me they were watching the news one evening when it was annouced the ruble was dead and there was a new currancy. People could exchange a limited amount of their old currency for the new currency. If they had ten thousand dollars, they got one thousand dollars. The stores were emptied out in no time. When the stores were re-stocked they stood in line for hours hoping it wasn’t all gone before they got in the door.

    My friend sees what is happening here, everything he escaped from there. He is well stock up, lives on a small farm and has lots of silver.

    It is very hard to imagine the US dollar being totally worthless or the government taking our savings, but my friend assures me that is where we are headed. Silver and gold are insurance against this scenario.

    • Greg

      Jan,
      Thank you for this comment, this is good and worth reading.
      Greg

  31. June

    Greg

    Thank you for this great article….we, with yours eyes open, need to keep plugging. Have a blessed day…everyone.

    • Greg

      Thank you June for the comment and kind words.
      Greg

  32. Eddie Beer

    Nice article, thanks. I have a question and a comment. The question:
    Why can’t the fed just manipulate the dollar to any value they want? After all they are just electronic bits essentially, and as long as people need them to purchase goods, they, or we are all hooked.

    My comment is this: I believe the people of the world will get beaten down so hard by the powers pulling the levers, that in the end we will beg them to take complete control, so they can ‘fix’ things and make them better. All in our best interest, of course.

    • Greg

      Eddie,
      Isn’t that what they have been doing? It is just getting less effective. We are having trouble now in getting the rest of the world to still believe the dollar money. Good comment but I pray you are wrong.
      Greg

  33. edward

    Every correction in the metals market is an opportunity to back up the truck. I’ve been picking up kilo bars of silver every chance I get. My family is not going down without a fight.

    • Greg

      Edward,
      Amen to that!
      Greg

  34. Brian

    Hello Greg,

    Excellent article as are your other writings.

    The $100 dollar bill example is actually 10 times more extreme, 678.661 miles high for 1 trillion in $100 dollar bills.

    The nearly 68 miles high is when $1,000 dollar bills are used, 67.866 miles high for 1 trillion in $1,000 dollar bills.

    Assuming a bill is 0.0043 inches thick.

    Take care,
    Brian

    • Greg

      Brian,
      You are correct. I should have said $1,000 bills. Anyway you cut it it is a lot of money. Thank you!
      Greg

  35. Sean S

    Excellent summary of the situation Greg – as is always the case with your material.

    I can only hope you have a very, very large audience out there that is taking all this in and comprehending the ramifications.

    The unfortunate reality is that neither the banking industry nor the Government seem to care “two hoots” about serious levels of inflation they are creating and it’s severe negative impact in years ahead. That’s because it’s negative effect on them in practice is usually minimal.

    President “we can” Obama is no doubt relying upon less than impartial economic advice from his team of less than impartial economic advisers. If he had just half a clue, which he doesn’t, I doubt we would necessarily be seeing such outright destructive measures pursued.

    One wonders how the broader community would react if they had some economic measures explained to them in terms they really understood instead of the spin and jargon which is used by the Government and the Fed. I think it might go something like this:

    “Unfortunately the US Government is bust

    • Greg

      Sean S,
      Very good analysis, thank you.
      Greg

  36. Sam

    Uh, I know I’m being redundant here, but isn’t it ILLEGAL to print paper money? That in our Constitution, only gold and silver coins (along with copper pennies and nickel five cent pieces), manufactured by the Mint, were supposed to be the ONLY legal tender? And that Lincoln acted unConstitutionally by issuing “greenbacks?”

    • Greg

      Sam,
      The creation of the Fed in 1913 was a game changer for the country. I hope we can change it back! Thank you for your comment.
      Greg

    • M SMITH

      Sam, you will find this link very interesting, I did! We have been asking ourselves about the unconstitutionality of many subjects & this is right up there on the list, I hope it gives you food for thought. “The 16th Amendment was never ratified! The Income Tax is Therefore illegal.” http://www.apfn.net/Doc-100_bankruptcy20.htm.

      Sam, I hope you read the whole legal article, it will make you think & think you will. I have been reading & studying this work for over 3 yrs now & find something new each time, aside from tasking your mind to seek out the truth & also being a place where cases have been proved by the courts in favor for the people over IRS claims on not only taxes,but a whole list of items that you may be interested in learning more about the fed & the people it really serves! Good Luck.

  37. Robert

    Off topic, Greg, et al,

    Since this blog talks alot about gold and silver, do any of you think there’s any gold left in Fort Knox or did it disappear years ago and its all just an illusion of wealth and power?

    With the way our country is being pilfered, why would the big guys that can do anything and get away with it, not see that as a treasure to be absconded with? If it were still there, you’d think that somebody(s) on Wall St would find a way to securitize it,put it up for sale and profit from it.

    • Greg

      Thank you Robert,
      Greg

  38. cowboy

    Greg,
    Thank you for getting the truth out. As you and many others including myself know, their is no way out of this debt crisis. The damage was done over the last 10 plus years. It is now time to prepare for what is ahead. How and when our currency crashes is just a matter of time.
    Most people who know this is a strong possibility don’t think about how bad it will be just to be able to survive. Reading the actual journals (not books written about them) of the pioneers of American history as they moved across the wildernesses will give you a perfect example of what we will have to transverse in order to get to our new beginning. The journals of Lewis and Clark are perfect examples. Almost everyday begins with what they killed for food. Meat or protein was most important. To read what happens to those they witnessed that went long periods without protein is frightening. I have been a rancher for over 40 years and produce enough beef for my family and about 6,000 others. There are many difficulties in production of beef (deaths, droughts, etc). Take away transportation, fertilizers, weather reports (to name just a few) and I will be fortunate to raise enough for my family. I have been accumulating gold and silver for over 8 years but to anyone who takes the time to read this post, the point I am trying to get across is food will be the most important necessity you will need. Read the journals and you will realize that gold or silver my not be able to buy you food when you need it the most to continue living.

    • Greg

      Thank you Cowboy. I am happy you have AU and AG!
      Greg

  39. KAREEM SALESSI

    Thank you Greg Hunter for your last night’s appearance on Coast-2-Coast. Please see follow my website to my blog at http://www.KareemSalessi.wordpress.com to see my documentation that today’s foreclosure crimes were engineered in the 1980’s and I documented this with much accuracy in my 2004 lawsuit # 04CC11080 in Orange County Ca. Also, please see that the Fed. has no assets, it is only a computer, so is the U.S. Treasury. They are all minus hundreds of Trillions. Senator Dodd on 7/15/10 confessed to the counterfeit of over $600 trillions. (in reality it is over double that). Unfortunately, for Americans, I think it is too late to wake up. 11/15/10. These links from my blog show you how easily the gangsters laundered half a trillion dollars of drug money without a whisper:
    http://kareemsalessi.wordpress.com/litigation-discovery-documents/
    10/12/10 DOCS. FILED IN FEDERAL COURT:
    SALESSI-8-09-cv-01257-DOC Document 21-RJN1-
    SALESSI-8-09-cv-01257-DOC Document 22-MOTION-
    SALESSI-8-09-cv-01257-DOC Document 22-1-MOTION-

    • Greg

      Kareem,
      I hope otheres follow and learn too! Thank you for sharing.
      Greg

  40. iknowbetter

    Thanks to Jim Sinclair, I saw all this coming ten years ago and started accumulating gold coins. Although this topic is kinda “old hat” to me, I remain interested and involved.

    Greg, your articles often mention “printing money” but I believe it’s all happening electronically. The Fed and financial houses just push data bits around. Kinda like the stock traders just have their programmed trading bots trade with other trading bots.

    There once was a market with humans involved.

    imo, one reason the economy is in dire straits is because the markets are artificial, the Fed and politicians are in the market makers pockets, the rule of property and law are both being tanked by foreclosure fraud, and nobody is leading a way out of any of these messes.

    Another pull on the economy is that people like me (Boomers) will retire soon. We want back what we paid in, at a minimum. That fact alone throws a wrench into every negotiation and calculation.

    QE ad infinitum does nothing to address these issues. It is pollution under the guise of a solution and leading to dollar dilution.

    • Greg

      iknowbetter,
      I am also a big fan of Mr. Sinclair. I would never bet against him.
      Greg

      • iknowbetter

        I know you are busy, and maybe I brought up too many points.

        The biggest point is that money is mostly electronic bits and bytes. The Fed creates money electronically, the Banks receive it electronically, and the Banks turn right around and buy Treasurys electronically. Isn’t this somewhat incestuous? And doesn’t this scenario mean that ‘money creation’ never reaches Main Street? It certainly means ‘money printing’ is a misnomer. And it questions hyperinflation scenarios.

        I believe this incestuous Fed/Bank/Treasurys realtionship is why inflation hasn’t blown sky high. The banksters are – pardon the following – masturbating. This circle-jerk won’t help our econmy no matter how long they push this string.

        Like you, I am expecting hyperinflation, but not until the excess money is finally unleashed on the citizens. Inevitable.

        • Greg

          Iknowbetter,
          I think you have a good grasp of what is going on. I have been saying for months, the one thing you can count on is big inflation at the very least. Economist John Williams rates the chances for hyperinflation very, very high. So, you are in very good company. Thank you for the comment.
          Greg

  41. Phillip McKreviss

    Greg, great thorough article once again ! The Fed’s obvious (unspoken) plan is to take a huge ole guthrie on the dollar (and then wipe their maloney with the U.S. taxpayer) , thereby allowing our country’s monstrous deficit to be inflated away ….this will end badly i’m afraid. Keep up the good work Greg !

    • Greg

      Thank you Phillip. I hope you are wrong but I fear you are right on target with you prediction.

      Greg

  42. John K.

    >Phil Cooper says:
    >November 15, 2010 at 2:32 am

    >The time has come to seize the assets of the >Federal Reserve and finally put it out of >business. It is an illegitimate organization, a >private banking cartel that used deception and >lies to have its operating rules grafted onto the >U.S. code of laws in 1913 and thereby expropriate >the American people.

    No. The time has come to abolish the federal reserve and allow it to collapse into bankruptcy, as the private bank that it is. We do not want all of the worthless paper that they have bought to try to save the economy, oops I meant their Bankster owners!

    The Fed must be allowed to fail, totally and completely!

    Only then can we re-start our economy so that the Phoenix may once again rise from the ashes.

  43. Lew

    In consideration of any government provided numbers, my rule of thumb has always been + or – 1/3 just to get a realistic starting point to determine the “actual” number being discussed (GDP, unemployment, inflation, etc), this has worked well in my experience.

    It is my opinion that “adjusted” numbers from the government are nothing more then lies at worst, deception at best. The idea that we are in any type of recovery is ludicrous. The stock market is no longer the economic reference to determine what is going on (was it really ever?) in the US economy. Today’s market moves are from the fund managers trading back and forth to inflate their portfolios, there is no real money movement in the market.

    I believe that the past few years (at least) have created a Constitutional criss that the American people will need to face and resolve, if they are still able. I personally have my doubts, the Rugged Individualist is painted as an outcast, a loner, someone to mistrust. People have gladly handed over freedom for “security”, this is the largest indicator to me as the end of American society.

    I really enjoy your articles Greg, I believe that most people are too scared to believe or listen to anything aside from what the government or networks are telling them.

    Something to consider, it is physically impossible to build anything 68 miles in height, it is unsupportable. This is only about 2% of the government commitments.

    • Greg

      Lew,
      You sir are a real patriot. Thank you for the comment.
      Greg

  44. Josh

    I figured this was worthy of sharing on here.

    http://www.youtube.com/watch?v=PTUY16CkS-k&feature=player_embedded

    • Greg

      Thank you Josh for the link. I saw it and it’s funny and true.
      Greg

  45. David

    Hello Greg, thank you for responding to so many comments! I heard you on C to C also. I was walking around listening to the radio and you said something that caught my attention, I just didn’t catch it all and was wondering if you could clear it up for me. I believe you said you heard a man speak that is or was in a high banking or political position. I thought you said you heard this person say something like “..we are headed for a catastrophe…” Do you remember this? I was wanting to know his name. I feel like these people are throwing hay on a fire to temporarily snuff the bigger flames out, only to have a bigger fire later …economic nuclear fusion!

    • Greg

      David,
      I do not remember saying that but things are not getting better. Thank you for the comment.
      Greg

  46. Ken

    Why is gold and silver dropping like a rock now?
    I feel like a puppet with strings being pulled every which way and tied up in knots.

    • Greg

      Ken,
      Gold is $1,337 per ounce volatile price movements are part of investing. Besides, gold is still way up for the year. I hope you are not investing in gold on margin. Don’t wory the Fed id printing (at least) $75 billion a month for the next 8 months. When this round of QE is finished the Fed will have nearly tripled the money supply.
      Greg

  47. MikeHgl

    Greg, I heard you on Coast to Coast a few nights ago and just knew I had to go visit your website. Quite possibly the most interesting and engaging Coast to Coast show I have ever listened to. Thanks.
    I think the worst part of this whole scenario is the helplessness that we all feel. We’re just passengers along for the ride. And the car is heading for the proverbial cliff. I have bought precious metals and hold them in my own personal safe but, realistically, if the whole ball of yarn unravels, is that enough? I seriously doubt it!
    For some more “contrarian” or “out of the mainstream” thinking I suggest this website: http://www.marketoracle.co.uk/

    • Greg

      Mike,
      Good sharp comment. Just like I like them. Thank you for the kind words.
      Greg

  48. kc ramone

    On a very practical level, stock up on non-perishables; bottled water, juices, canned goods, toiletries, toilet power and paper towels, flour, sugar, oil. Prices are already rising on food. Get a freezer for meat and fish. By spring, all these things will have risen considerably. There are wholesale places to buy in bulk. If nothing happens, you’re just well supplied; there’s nothing lose. Best wishes, Greg. I take control of my metals tomorrow. Thank you for all your info.
    kc

    • Greg

      Thank you KC Ramone. Good advise.
      Greg

  49. Al Martinez

    But all Bernanke wanted to really do is make the market rally so everyone feels rich, that’s what he said (in so many words).
    Seriously, I thought market rigging was illegal? I expect nothing less from this MAFIA Fascist government. All of these issues have the same problem, no accountability. No one goes to jail. They lie, they cheat, they steal and no one is held accountable for their actions.
    The poor guy stealing a candy bar at the local food-mart goes to jail, but the dunderhead in a three piece suit who steals billions gets a pat in the back and a bonus.
    Bring back accountability and all these problems will go away. JAIL EVERY ONE OF THEM! INSIST ON ACCOUNTABILITY FROM THE LOCAL LEVEL ON UP!

    • Greg

      You go Al!!!
      Greg

  50. Ralph

    Greg, I am relatively new reader and wanted to thank you for the valuable and insightful information you provide. I have you bookmarked and make it a point to read your columns.

    Thanks again,

    Ralph

    • Greg

      Ralph,
      I am honored and grateful. Thank you.
      Greg

  51. PaulE

    Greg,

    I listened to Edward Griffin last night in regards to his book ‘The Creature from Jekyll Island’. I thought it may be a good listen for some of your followers out there.

    He explains in very simple terms all you need to know about the criminalities of the Federal Reserve System from its inception all the way through.

    The scary thing that struck me is it is not only the US that has this system in place but is furthered worldwide through the Bank of International Settlements (BIS). The whole worldly system is as corrupt as they come driven by a criminal banking cartel of whose sole purpose is Power.

    The money siphoned out of this system through usury and inflation is absolutely mind boggling. Furthermore, where this money is spent is even more alarming.

    IMO, the breaking of this criminal system is where our fight begins. All else is of little importance until this is done.

    http://video.google.com/videoplay?docid=638447372044116845#docid=-8484911570371055528

    Thanks for your great work Greg.

    • Greg

      PaulE,
      Thank you for the content.
      Greg

  52. Losing Sleep in N.California

    Greg.
    1)Re: eventual crash of the dollar & hyperinflation: Please give 5 top pieces of your advice for 10 yr. economic survival to elderly person who must rely on social security of $1,770./mon.(won’t buy much when super-inflation hits,)$50,000., in savings, Gold coins currently worth $30,000,(won’t all this turn into a pittance?)& paid off home,zero debts.
    2)Are there books that give this advice in detail? I haven’t found any.
    3)Is it a good time to start a garden?
    4)Why does Bob Brinker say we won’t have excessive inflation?

    I just discovered you. Thank you for your efforts and interest in your fans.

    • Greg

      Losing Sleep,
      First of all, congrats having a house that is paid off. That is a very important asset to own. Your gold will only go up (long term) in value it will be Federal Reserve Notes that will fall and cause even more inflation than we have today. I would take the recent pull back in gold and silver to buy some more coins and that way vent off some of those dollars. I would also make sure my home and vehicle are in top working order. If something needs to be fixed or you are eclose to needing new tires then get them now because they will never be cheaper. I don’t know Bob Brinker, but I do know the Fed is and will continue to print billions of new dollars to pay bills every month. There is no way inflation does not heat up even more. If you have room on your property you should grow a garden because it will be a cheap way to get food and you might just have some fun growing a garden. I am not a financial planner, these are just a few thoughts based on what you wrote. Thank you for reading and supporting USAWatchdog.com!
      Greg

  53. Losing Sleep in N.California

    Dear Greg,
    Thank you for your prompt reply advice.
    1)It would cost me at least $2,000. to install a garden which would be in 3 ft. high raised beds because of my back. Is it cost effective?
    2)Bob Brinker is 3 hrs. weekly on radio (Sundays 1-4 P.M. Calif. time) for past 25 years giving financial advice. Many claim Brinker’s advice made them rich. Try finding him on radio, if you have time. Your evaluation of him currently would be very helpful especially on his claim of manageable degree of anticipated inflation.
    3)I don’t see that you have commented on the easily seen 120 page research report proof (published June, 2009), done by Kevin R. Freeman commissioned by the Pentagon, that the Sept. 2008 Economic Crash was caused actually by the 3 phase deliberate Economic Terrorism of Russia and China which included 2 unidentifiable secret mystery investors who were no.1 traders in all financial companies that collapsed or are now supported by the U.S. government. Henry Paulson pointed out in his book that Russia deliberately crashed Freddie Mac and Fannie Mae.
    4)Don’t you think this economic terrorism deserves more public outrage than even the Vietnam war and the Tea party cry for reducing the budget & debt — combined — have gotten? Isn’t killing our country economically worse than 9-11? — not to mention the killing of bodies and souls of men, women and children — effect of unemployment & collapse of businesses — is also worse than 9-11.
    5)Please write an article about your advice re: addressing of this economic terrorism while it is in the beginning cusp of phase 3 of destroying the dollar. Brains are needed on this one. Who’s providing the needed brains on this crucial maximus challenge of winning against the economic terrorism so far successfully accomplished against the U.S.A. and beyond? I don’t see the media covering this elephant in the room. Give us your take.

  54. Sezgi

    Good day, fellow, fantastic comments was informed about a website that a friend told me that Boosts peoples IMDB Ranking by the name of http://www.imdbstarmeter.com gotta Check it out

  55. niewaznejak

    Thank you, I waited this long!

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