Courtesy of the United States Federal Reserve:
The dollar dropped the most against the currencies of six major U.S. trading partners since the Plaza Accord almost a quarter-century ago as the Federal Reserve’s plan to purchase Treasuries spurred speculation that it’s debasing the greenback.
“What it introduces is the problem of the currency to the extent that the Fed is buying what isn’t desired by foreign holders,” said Bill Gross, co-chief investment officer of Pacific Investment Management Co., in an interview on Bloomberg Television on March 19. “The Fed can keep interest rates where they want to keep them, at least for a 6- to 12- to 18-month period of time, but it will have consequences down the road.”
The U.S. currency weakened beyond $1.37 per euro this week for the first time since January as the central bank’s decision to increase its balance sheet by $1.15 trillion lowered yields, making American assets less attractive. The Norwegian krone and the New Zealand dollar rallied as the Fed’s move spurred advances in commodities.
The dollar depreciated 4.8 percent to $1.3582 per euro yesterday, from $1.2928 on March 13.
We can’t spend money we don’t have – all the Fed has done is go into our pockets and lift out some of our wealth and they’ll now use that money to buy up the toxic assets, which will then become property of we, the people of the United States of America…meanwhile, the corporate fat cats and corrupt politicians who brought this mess upon us will not only get off scot free, they’ll also be able to start ripping us of, again, with new scams now that their previous swindle has been passed on to the American taxpayer.
Enough is enough – time to start taking back our country; and one of the places we can start is by doing away with the Federal Reserve and returning our currency to the gold standard. Its not that gold is superior, but that gold can’t be easily manipulated like fiat currency can. Sure, Uncle Sam can still fire up the printing presses if we are based on gold, but that means the paper dollars will lose value, not the gold dollars; hold your money in gold, and you know its safe from government pick pockets.
How do we do it? Well, as it turns out, since the time the Federal Reserve was established, our currency has lost approximately 99% of its value. This means that a penny in 1909 is worth about a dollar in 2009. We re-mint and re-print our currency and turn in our current money for the new money at a 100-1 ratio. Have $100 fiat dollars, you’ll get $1 gold dollar. Get paid $20 per hour, you’ll get paid 20 cents per hour (which, for an 8 hour day, works out to $1.60 per day…were you working 12 hours a day, as they did 100 years ago, you’ll make $2.40 per day and that, dear friends, tells you how much working class income has really increased over the past 100 years…but where that $1 in 1909 wasn’t taxed directly at all, your $2.40 is still going to get hit with about 30 cents in direct taxes in 2009). A $400,000 house is now $4,000. And so on and on. The government would be required by law to keep at least $1 dollar in gold for each $10 in paper currency in circulation, so our dollars will be stable (though, of course, having greenbacks will still amount to a zero interest loan to the government).
Discuss.
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