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American Federal Reserve Closes Its Eyes, and Pulls the Trigger March 20, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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US Dollar Under Assault

The American Federal Reserve Bank has, in a dramatic and radical move this week, put the spectre of inflation back on the table.

Printing over one trillion dollars in American greenbacks is the only approach left to the Fed, and it is taking a tremendous risk that the other major Reserve Banks of the world will follow suit in order to keep the “value” of the US dollar relative to all the others. Without this delicate equilibrium of all reserve banks acting together, the US dollar – the worlds reserve currency – will become diluted alone, causing a collapse against foreign currencies.

A falling USD has tremendous implications for a world pegged to it in every way, with uncontrolled inflation the main horror. While the USD has indeed succumbed to pressure already, billions and billions of dollars worth of wealth around the world is getting nervous, denominated as it is in shrinking American money. Already currencies of nations with strong natural wealth, “commodity currencies”,  are beginning to attract some of this money, which represents a loss of faith in the US economy and the Feds ability to contain the maelstrom. 



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1. REALLY Made IN Canada - March 20, 2009

It’s amazing how much the public seems to take without digging heels in and saying STOP. Part of the problem has to do with the sense of hopelessness the average person has about “changing the system” and the other part has to do with how little energy the average working person has to inform themselves and actually paticipate in “fixing problems”.

The average working person is more a spectator than a participant in the world which they finance.

To make matters worse, because most people are not accustomed to actually causing change, talk of “change” seems to be enough to put them back to sleep and assume that all is well again.

The economy around the world is a failed experiment, and those who led this disaster have the audacity to talk about the “financial crisis” as some sort of external agent (force of the money god), when in reality, and reference to “financial crisis” should be rewritten as the shameful failure of those we entrusted with managing these issues.

This is just the beginning. Eventually, when bread is too expensive to buy, and lineups start reminding us of old coldwar images from the USSR, it will be too late to “change” anything.

aetiusromulous - March 20, 2009

I think we are on the same page, eh?
Still cold and snow in my part of the frozen North…


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