August 22, 2010
Infowars.com readers believe the monetary policies of the Federal Reserve will push the country into another depression.
The Federal Reserve has announced it will begin buying government debt. “The move is designed to drive interest rates on mortgages and corporate borrowing at least a little lower and help the economy grow faster,” the Associated Press reported on August 11. “The decision to buy government debt, using proceeds from Fed investments in mortgage bonds, was a shift from earlier this year, when the Fed was laying out plans to roll back some of the measures it took during the financial crisis.”
Monetization of the debt will result in the failure of Treasury auctions, thus encouraging the Fed to print even more fiat dollars. “This will unquestionable inject liquidity into the U.S. economy. But this Federal Reserve monetary injection will be as beneficial as money printing was in Weimar Germany in the early1920s, or Zimbabwe more recently,” notes the Global Economic Crisis website.
In addition, the Fed’s monetizing of debt will result in a devaluation of the dollar. “This is very nearly the same path that Zimbabwe took, resulting in the complete abandonment of the Zimbabwe dollar as a unit of currency. The difference is in the complexity of the game being played, not the substance of the actions themselves,” notes Chris Martenson. “When the full scope of this program is more widely recognized, ever more pressure will fall upon the dollar, as more and more private investors shun the dollar and all dollar-denominated instruments as stores of value and wealth.”
- A d v e r t i s e m e n t
“Dollar devaluation is directly related to the size of the national debt,” we noted last month. “Currency loses it value when government is unable to pay off its debt. The amount of debt owed by the U.S. government to the banksters is unpayable. If all money owned by all American banks, businesses and individuals was rounded up and sent to the government, there would not be enough to pay off the national debt. It is mathematically impossible to pay it off.”
“In deciding on a process that will lead to an ever-growing proportion of the U.S. national debt and yearly budget deficits being monetized by its printing press, the Federal Reserve, under the leadership of its chairman, Ben Bernanke, has taken a fateful step towards irredeemable economic and financial ruin, ultimately convulsing America with a savage, hyperinflationary depression,” Global Economic Crisis concludes. “And, as history teaches us, severe economic depressions bring along other unanticipated consequences, often leading to political and social turmoil and even global war.”
An astounding 78% of respondents to the Infowars.com poll believe the Federal Reserve will swerve the U.S. economy into another economic depression. A significantly smaller number of respondents believe Federal Reserve monetary policy will make things worse, but will not destroy the economy. 2% believe the United States is currently weathering a recession, not a depression, while 5% responded that the economy is actually on the mend.
Kurt Nimmo edits Infowars.com. He is the author of Another Day in the Empire: Life In Neoconservative America.