Wednesday, March 28, 2012

The Next QE

Bernanke can decrease the value of the dollar by manipulating the "money" supply (I like to think he controls the "currency" supply, as fiat is not money).  The value of the dollar is figured by this equation:  mv=pq (the amount of money in circulation x the velocity of the money = the price level associated with transactions x an index of the real value of final expenditures).  This is simply explained as a way for Bernanke to raise or lower the value of the dollar.  Let's examine why he would do so.

The main reason to lower the value of the dollar is to increase exports.  When export prices are lowered it increases productivity.  If productivity is increased, then profitability is too.  I will point out that the chief export of the US is debt here, and also that NAFTA and GATA have done away with industry in America.  So Bernanke is exporting debt, and basically, debt alone.

If this sounds crazy, well, this is Keynesian economics.  You can read it in University textbooks written by Bernanke for upper-class economic undergraduates.  You can hear Bernanke discuss it in his speeches.  These are the facts.

America, and the world with it considering America has been the leading economy for decades and decades, is at a tipping point.  I won't list what is wrong economically here to save space, and I already think you know all the talking points (besides, I am sure I will touch on them later in this blog, if I haven't already), but there are many many topics to discuss.  Finance has gone berzerker, and raised the stock indices high.  Bonds remain high, yet the basket of currency that defines these prices has maintained some stability (compared to what the future holds), all while debt and more debt piles high on the backs of the Nation-States, and municipalities across the globe.  A major break in the economy is coming, this much is obvious.

When?  No one can guess.  Yet we can guess as to what solutions will be offered up to appease the Fiat Ponzi.  The question is not only when, but how?  Will the QE be sterilized or unsterilized?  Will Congress be involved?  How much currency will need to be printed by all Central Banks?

These have often been discussed, yet there is one solution that can be offered by Keynesianism that is not often discussed:  the value of fiat can literally be cut in half.  It has been done before, by FDR as his first Presidential mandate.  He did this by revaluing gold compared to the dollar.  It happened over the course of a week.  As history repeats, we can guess this will happen again.

And happen again it has, albeit slowly.  The question now is, will it ever be done suddenly?  It would be shocking at this point, as Obama and his minions have declared a recovery.  Would it be a False Flag?  A war?  The student debt bubble?  What could create such a policy move?  My guess is as good as yours, but it is a possibility, and day by day, it becomes a greater one.  So when will it happen?

One thing I try to make sure I understand is the modus operandi of the minions involved in the Global Cabal.  Bernanke gets a lot of just deserved heat from me, but he is just a minion in the large scheme of things.  In an interview last night, he said he may not continue as Chairman under a different POTUS.  If this is true, he may now kick the economic can until the election to see what happens.  If this is true, then he will only do what he needs to to prop up the system.  He will not want to use the bazooka that would be cutting the value of the dollar in half if it will be painted as poor policy.  So he may sterilize his policy for the rest of his tenure.

One last thought, what if he had a blood pact to cut the value of the dollar, and now he reneges?  Well, it may be off with his head.  Obama is in a similar predicament with his policy, thus why I think we are at a turning point.  This turning point though may not end with policy moves, but with people being moved from their posts.  Bernanke may retire sooner than expected if he does not follow orders from the oilgarchs, and the same is with all of the minions of the New World Order.

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