How many times have we heard over the last year from the mainstream media that the federal reserve was going to "pump liquidity" or "INJECT" money into the financial system? What does that translate to? Is there some bank account out there with countless trillions of dollars waiting for withdrawal? The answer is yes.
This phantom bank account is administered by the "federal reserve bank" and they control the money supply of the U.S and ultimately the world. They have the power to print and electronically create US Dollars and as much as they want.
So, after this week's failure of Lehman Brothers and the buyout of Merrill Lynch along with the bailout of AIG, we hear again of this "injecting" $247 billion of liquidity into the markets to keep banks afloat.
The "injection" of money into the financial system only further dilutes the money supply, thus reducing the value of the US Dollar.
Why is it that the American public is completely CLUELESS on this point?
How long do you think this can go on before a global economic collapse occurs?
How long do you think this can go on before a global economic collapse occurs?
2 comments:
Greenspan grew up in the depression era. Bernake grew up in the credit era. The prior made proactive decisions when times were tough in order to prevent another depression. The latter is making reactive decisions in tough times by providing more credit because that's all he knows.
If the latter knew what the prior knew, then he would have created an RTC months ago to absorb these bad debts now and make money on them as the housing market turned. He would have also lowered interest rates the last time they met. Remember the bad times after 9/11? Greenspan lowered the rate to 1%. We're still at 2% and we're in much worse shape.
Instead, panic. The gov't buys mortgage firms, insurance firms and the auto makers are holding out their hands. The gov't stops short selling on the stock market, so it won't go down, giving the illusion of recovery. So, the gov't is now in charge of our homes, our insurance, our stock market and soon our transportation.
I think the public knows what's going on, or they wouldn't be visiting their banks and brokerages. The sad thing is that they're putting faith in the gov't. Of which, they don't have enough money in the FDIC to cover 1/3 of Washington Mutual's deposits, alone. May as well buy some gold while it's low. Unless the gov't bans that, too.
Well Bob it's amazing isn't it. People are that "CLUELESS". It's pretty scary when you think about it. I've been following Robert and Rich Dad since 2000, learning and sharing with people as best I can.
I turn on the television and Susie Orman's on Oprha shoving her industrial aged advice down the throat of the audience as if she never told people to save money and invest in 401ks. What a joke... I was ready to throw up!
"Savers" really are losers. I guess we should look on the bright side of things, "we know how to take advantage of the game that's being played."
I've been running a Cashflow Club, it hasn't been easy but it's one of the best things I ever did. I appreciate everything you all are doing.
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