The FED is a tool, not an organization worried about its own best interests.
By Daniel at 23 April, 2009, 10:06 pm
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The people who control the global banking system have no loyalty to any party, nation or currency. They will sacrifice any nation, currency or political party if it furthers their goal of a global financial system they can control.
The FED has said it will create inflation no matter what it takes to try and increase the prices of the assets the banks hold. Whether it makes good sense or not, isn’t the issue. It is what they are doing and how it will impact you, the citizen and investor that is the issue.
Bernanke says he will raise interest rates only when the inflation becomes a problem and that is usually many months too late to stop the inflation from causing a high CPI that steals the buying power from every citizens paycheck or investment return.
If the FED wasn’t a “tool,” then maybe what you say would be true. However, remember that they, knowing what they will do, are also able to protect against what they will do such as by having the FED banks short, go long, and liquidate while others are buying or buy when others are panicked into selling.
The people behind the FED are who drive the decisions the FED makes and thus, they can make money even when the institution itself seems to be losing money when it is actually often the taxpayer who is really losing.
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But recent unrestrained spending, lending and bailing by the US federal government brought questions about the future of the dollar reserve currency franchise to the fore at the recent G20 meeting.
As might be expected, the news released for public consumption played down this issue, while talks behind the scenes went unreported. Whatever immediate action is taken is likely to be restrained, disguised, and circuitous: the global elite rarely proceed toward their desired ends in a straightforward manner. The key point is that the end of the dollar hegemony is being discussed publicly in official circles. As Henry Kissinger (one of the elder statesmen of globalism) stated in a recent Bloomberg interview,
“I don’t know whether there is a consensus on A world reserve currency, but there is developing a consensus around the world that the United States, due to its policies largely, was a major factor in producing this [economic] crisis, so that for the US to have the reserve currency, that gives us an unprecedented unique position. It’s something that many other countries are trying to overcome or to alter.”
Such remarks may sound vague and inconclusive, but coming from Henry Kissinger, they signal that the global currency franchise is in play. As a first move, the G20 created $250 billion in Special Drawing Rights (SDRs), a sort of money of account invented by the IMF in 1969, sometimes referred to as “paper gold”.
http://www.financialsense.com/fsu/editorials/2009/0423.html
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You won’t see much of this in the mainstream media but it is very important. Around the world, more and more nations are moving away from the dollar in any way they can.
Gold doesn’t have to go up in price in other currencies (though it has been). It only requires a reduction in demand for the dollar for gold to rise in price, in dollars.
There are going to be other commodities, especially food, I believe, that will rise in price. U.S. demand for goods will not drive prices. The value of the dollar and the global economy in emerging markets will drive the prices we have to pay in the stores and gas stations.
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