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Page added on October 18, 2015
Federal Reserve Could Start A Currency War
There is a war, a currency war, and the war is, ultimately, on us.
In many respects, Americans have fallen far, and hard, from the liberty they once had.
Rather than living under a sound currency, modern Americans live under an economic despotism. There are monopoly men who tightly control the money, and are all the more insidious in their subtlety, and quietness in the shadows.
Today, things are so bad that they face economic enslavement and a rapid theft of their wealth through the debasement of the dollar’s value. Not only is the destruction of the dollar systematic and planned, but it is designed to leave Americans holding the bag. The money passes round and round, but it trickles down from the big banks, who are loaned the money free at zero percent interest by the Federal Reserve under its QE program, created to “fix” the 2008 economic crisis that nearly brought the world to its knees.
Now, literally any action at all – especially including no action – by the Federal Reserve has a direct impact on the value of the U.S. dollar, and greatly determines the course of world events, and especially whether or not average people can pay the bills.
According to The Street, it is an all out currency war that will have direct impact on budgets large and small:
The stock market stays high because the Fed is not going to raise short-term interest rates. The Fed is not going to raise short-term interest rates because the U.S. inflation rate remains low. The inflation rate remains low because the value of the U.S. dollar is high. The dollar is strong because world commodity prices have fallen and have “driven up the dollar and held down U.S. import prices.”
According to the Financial Times, the last three items mentioned are interrelated. Furthermore, it now seems as if momentum is picking up within the Federal Reserve to postpone any increases in it policy rate for an extended period of time. That inaction may not be the best decision in terms of the relative strength of currencies.
[…]
According to this argument, the stock market should begin to fall because the Fed is raising interest rates
The key connector here seems to be the relationship between the value of the U.S. dollar and any action that the Federal Reserve might take on raising short-term interest rates.
The Fed is the only thing propping the stock market up – when, or if, it moves, there will be a crash, that will call bad debtors and impoverish entire social security systems. But things aren’t much better if they stay still, either. According to The Street:
[I]f the Fed does not raise its target policy rate, other countries will have to take further action to ease up further on their economic policies. The European Central Bank will extend its quantitative easing. The Bank of England will not raise its policy rates.
The Peoples Bank of China will attempt to achieve further ease so that the renminbi will fall against the U.S. dollar.
In effect, this looks like a currency war, and the world cannot afford a currency war at this time.
The Federal Reserve needs to take these things into consideration in making their policy decisions. They are, after all, the global reserve currency and they cannot avoid the responsibilities that go along with this position.
[…]
If the Federal Reserve does not raise interest rates, the value of the US dollar will fall and this will have an impact on the commodity prices of emerging nations, causing import prices and U.S. inflation to rise.
How did the Federal Reserve get so much power over the American economy – and that of the world’s? There have been many stages of the theft which are too numerous to list, but which are generally well known to those familiar with its odious origins as a design by the banking cartel.
Started under conspiratorial circumstances back in 1913, the Federal Reserve has established itself as a private central bank for the country, though it is not part of the U.S. government. Since its inception, the Fed has driven the dollar down to just a fraction of its original value.
Since the U.S. went off the gold standard under the shadow presidency of Henry Kissinger in 1971, the dollar has plummeted in status to a worthless piece of paper. Meanwhile, however, the dollar was the world reserve currency, and was the currency that traded for oil during a time of supply crisis, it has retained an accepted – and therefore valued – status so long as America dominated foreign policy (in part by managing more and more wars) and maintained its status.
The banksters operated the monetary and financial system that led the world by trading in petrodollars, and in turn, forced oil rich nations like Saudi Arabia to invest on Wall Street, as well as reluctant powers like Japan, who were forced to open up their markets to foreign investment during the oil crisis.
But now world power is shifting. The dollar is dying, and the Federal Reserve has become a leviathon that is too big to die, and too bloated to be effective. In its enormous capacity, it is facilitating the theft of TRILLIONS and TRILLIONS of dollars from the American people:
Americans face a further decline in their standard of living in all cases, market-wide conditions that the Fed alone can determine. Their wealth is rapidly evaporating.
If the Fed raises rates, the market will crash. On the otherhand, if it doesn’t raise rates, and continues indefinitely on its course of quantative easing, investors, middle class and working families, businesses, as well as pensions, benefit programs and insurance policies will also die a slow painful economic death.
Already things are hovering dangerously on edge, and squeezing in tightly.
30 Comments on "Federal Reserve Could Start A Currency War"
onlooker on Sun, 18th Oct 2015 6:59 am
A pretty good summation of the predicament of the American Economy. The key sentence of course is “it is facilitating the theft of TRILLIONS and TRILLIONS of dollars from the American people” At some point the Powers that be realized the world economy is doomed in terms of profit making, so they turned against the consumers ie. Americans to rob them of their wealth and prospects. All the paper or digital money in the world buys you nothing if people have to faith in your money or economy.
makati1 on Sun, 18th Oct 2015 6:59 am
The currency war has already begun. It seems to be lining up as East against West. Should be interesting.
As Social Security has been permanently frozen, maybe the exchange rate will give me another raise next year. We shall see.
onlooker on Sun, 18th Oct 2015 7:09 am
Oh and this situation is similar around the world as everyone realizes the “Emperor has no clothes”, meaning the fundamentals of the world-wide economy are abysmal. Assets highly overvalued, mountains of debt with little prospects of paying off the debt, commodities facing artificial shortages derived from low prices or real shortages derived from physical scarcity or uneconomical extraction/bringing to market costs. Worthless abundance of paper or digital money. Economies and countries struggling with social problems and inherently unstable economically. Oh and being that the US consumer has always been central to the economy of the world, the downfall of said consumers it not good for anybody in the world
makati1 on Sun, 18th Oct 2015 7:14 am
onlooker, many Americans do not realize that their retirement funds, 401ks, mutual funds, etc will be ‘nationalized’ soon. Trillions of dollars sitting in accounts, not being spent, are already in the government’s cross hairs. It would be paid out in monthly installments as the government deems necessary.
Remember when Bush tried to ‘nationalize’ Social Security? He almost did it. Now it can be done by Executive Order from the Dictator-in-Chief under “emergency powers” as the “national emergency” of 9/11 is still in effect and the situation is getting critical.
Interesting times.
onlooker on Sun, 18th Oct 2015 7:36 am
Oh makati I do not doubt for one moment, they want to, can and will do this!
Davy on Sun, 18th Oct 2015 7:54 am
Onlooker, Makster is exaggerating his lack of financial understanding. You can see that can’t you? The ship is going down but it will go down because of a collapsing across the board global economic system.
The US government has legal limits to what it can do and there are limits to what can be done without disturbing confidence and liquidity. Makster should be worried about the Bric’s financial situation also. You might ask him why we no longer hear how the Brics are going to take over the financial world. Just 6 months ago when all the anti-Americans were singing their bric shit house tunes. The reality of this situation is agendas don’t work when we are all in this together.
The world is not as wealthy as the numbers show. Today’s debt is a promise of future productivity and production that is just not real. Assets equal liabilities yes but then there is the reality of the real value of assets and liabilities. We are a world that is poor and think we are rich because the future value is not real for those assets and liabilities especially the digital and paper variety.
When this reality of poverty is fully exposed that is when the global system will begin its collapse. Liquidity and confidence go hand and hand. This collapse will be global and this is where the ugly anti-Americans agenda falls apart. I told them this months ago when they were talking up the Brics. Notice how quiet they are these days.
onlooker on Sun, 18th Oct 2015 8:11 am
I guess you guys think I am straddling the fence a little but I see both Davy and Mak sides of the argument. The elite are trying to hold on just a while longer to their status even if that means heavy handed totalitarian approach. So in that sense I do think Mak scenario is credible. Remember it is getting now to be about the military ,police and oil industry and assuring their well being and income rather then that of the masses. On the other hand doing that with the US will showcase the dysfunction of the system even more which as has been alluded to will make everyone vulnerable and will incite a downward chain reaction. It is just that the end game for the elite I think involves alot of domination and application of tools of control and authority. For the biggest fear of the elite is losing control and power. Of course all this will backfire as the sense of rebellion and outrage will create a world-wide firestorm. Then who knows what will happen.
paulo1 on Sun, 18th Oct 2015 8:48 am
Good comment, Onlooker. One has to make their own plans as this unfolds that suits their situation in all aspects, which both Mak and Davy have done and are doing day by day. I assume you are doing the same. Hats off to you all and best of luck as this unfolds. It isn’t going to be pleasant.
onlooker on Sun, 18th Oct 2015 9:17 am
Yes Paulo in the end we can only take care of ourselves and loved ones and if we are lucky be part of a like-wise minded community.
joe on Sun, 18th Oct 2015 10:32 am
Right now ‘bad news is good news’, the FED has been giving the US a bridging loan since 07.
It’s the greatest idea since the creation of THE BRITISH EAST INDIA COMPANY.
penury on Sun, 18th Oct 2015 11:23 am
Davy ‘The US government has no legal limits to what it can do.”
Fixed it for you.
Davy on Sun, 18th Oct 2015 11:40 am
Sorry Pen, you are incorrect. There are laws in place and some of them will be followed and others not through various methods. To make this black and white is a giveaway for an agenda. Contrary to some of your ideas of governance some laws are beneficial for all parties. Others are too difficult and radical to disregard and still others are easy to manipulate and corrupt.
Davy on Sun, 18th Oct 2015 11:42 am
Joe the fed has given the global world a bridge loan since 08 especially for China.
peakyeast on Sun, 18th Oct 2015 4:26 pm
The argument that there are limits to what they can do is possibly true. But the limits are somewhere completely different from what the comment intends to imply.
For every law there is – they have a way around it.
I can see that from our Danish government – as soon as the government gets in trouble the laws that has been applied a 1000 times to “normal” people suddenly doesnt apply anymore.
Not even our constitution is worth the paper its written on.
It was not legal for Denmark to attack neither Iraq nor Afghanistan since the constitutions says that our “defence” is only to be used against other nations that has attacked us first.
They obviously now interpret attack as an attack on anybody on earth, without the need for any evidence.
The last few “presidents” we have had – has all been violators of law – that is they have done what other criminals has been doing, but suddenly the interpretation and judgement is opposite to the established norm.
Of course they do corrupt criminal things like this in the US. They do it fucking everywhere.
There is not a single ruling body on earth that is not corrupted to the core IMO.
Not a single one !
makati1 on Mon, 19th Oct 2015 12:16 am
Penury, you arecorrect. The Us has some 600,000 ‘laws’ on the books, most of which are only used to out donw the sheeple as necessary. Money equals a ‘get out of jail free’ card for the 1%.
There is not government in the Us, only the DC/Wall Street mafia. There is no active constitution or bill of rights in the land of the indebted. They were dropped into the shredder long ago. Only the ghost remains in the minds of the citizens.
makati1 on Mon, 19th Oct 2015 12:16 am
oops! … out donw … = …put down…
GregT on Mon, 19th Oct 2015 12:34 am
“Joe the fed has given the global world a bridge loan since 08 especially for China.”
A loan of what Davy? Austerity? Debt? Control? Honestly, WTF are you talking about?
GregT on Mon, 19th Oct 2015 12:50 am
Very good comment peakyeast. The corruption has no political or national affiliation. It has become global in it’s nature. The only hope that we ever had in fighting it was to stand up as individuals, instead of the herd mentality of the flag wavers and the nationalists. Both of which are the biggest enemies of the future of human kind, and all other life on this planet.
Apneaman on Mon, 19th Oct 2015 12:54 am
pen, you are 100% correct. One only needs to spend a short time researching the NDAA (most Americans have not) to see it for themselves. That’s the law that says the empire can kill anyone on the planet it chooses to if they fit the criteria, which is so loose and vague (intentionally) that sneezing in the direction of the US can be construed as a hostile terrorist action. How is this possible? They just get a team of lawyers to put it down on a few hundred sheets of paper, then the corrupt triple chinned criminals in congress say yea and it’s law that the entire planet is under. Raining hell from above on wedding parties and funerals attended by women and kids and hospitals full of injured people and volunteer DR’s and staff. Even American citizens have been whacked. How exceptional is that? Warmongering murderers and torturers. They also invented Disco which may very well be the worst crime against humanity ever.
GregT on Mon, 19th Oct 2015 1:16 am
“They also invented Disco which may very well be the worst crime against humanity ever.”
Whatever Apnea. The Bee Gees rocked. 🙂
Apneaman on Mon, 19th Oct 2015 1:24 am
Each to his own on that one Greg.
GregT on Mon, 19th Oct 2015 1:28 am
Personally, Rodger Waters has always been my go to guy. But the Bee Gees got me laid on more than one occasion.
onlooker on Mon, 19th Oct 2015 1:39 am
“The corruption has no political or national affiliation. It has become global in it’s nature.” Magnificent quote. Yes and all in a conspiracy type web, where the 1% continuously exploit the system to their benefit. That is how we got to a world where approximately 1% control half the worlds wealth and 20% control 80% of the wealth. Then their are those affiliated and working for the 1% who depend on them and thus are allied to them. You know sometimes I wake up and cannot really believe we live in this type of world.
Apneaman on Mon, 19th Oct 2015 1:39 am
New Leaked Documents Reveal Shocking Info About Profiling Assassination Targets
The Intercept series “The Drone Papers” exposes the inner workings of how the drone war is waged, from how targets are identified to who decides to kill. They expose a number of flaws, including that strikes have resulted in large part from electronic communications data, or “signals intelligence,” that officials acknowledge is unreliable. The documents reveal that targets were identified due to “so-called Arab features,” which includes being “taller than everyone else,” says Scahill. An investigative journalist, Sean Naylor, in his new book, “Relentless Stike,” tells a story of this method being used. Scahill explains, “how they struck a target because he was taller than the other people around him, and they thought that he—that that meant that he was sort of an Arab or a foreign fighter. And it turned out that he was of average size and that the people around him were children.”
https://www.youtube.com/watch?v=NS7BjNG961g
onlooker on Mon, 19th Oct 2015 1:46 am
then people wonder why so many Muslims are pissed off! Noam Chomsky calls it the biggest terrorist action on the planet referring to drone strikes
Apneaman on Mon, 19th Oct 2015 1:46 am
Another American exposes the crimes. There is a real American hero. The majority are apathetic or cowards. Keep your head down. Go along to get along. Just a matter of time before the armed killer drones are circling American skies.
THE DRONE PAPERS
The Intercept has obtained a cache of secret documents detailing the inner workings of the U.S. military’s assassination program in Afghanistan, Yemen, and Somalia. The documents, provided by a whistleblower, offer an unprecedented glimpse into Obama’s drone wars.
https://theintercept.com/drone-papers/
GregT on Mon, 19th Oct 2015 1:52 am
“You know sometimes I wake up and cannot really believe we live in this type of world.”
That would make two of us onlooker. As a species we haven’t learned anything at all. We just keep killing more and more people, and continue to find ways to justify in doing so.
Davy on Mon, 19th Oct 2015 6:33 am
Greg said “A loan of what Davy? Austerity? Debt? Control? Honestly, WTF are you talking about?”
WTF Greg, do you understand global finance since 08? Do you realize it was the Fed and China together generated many trillions in credit because of each other? Do you think one could have had a tight policy and the other accommodative? They both flooded the world with credit and liquidity with carry trades and dollar loans. Sure China’s was internal but it was not really internal because it used that money to expand and buy world resources. In that respect it dumped demand on the global market. IMA this was malinvestment and generated bubbles as bad as the fed. The fed and China made bubbles together. Do you realize that the zirp and QE from the Fed allowed China to keep its currency low and allowed a huge GDP expansion at a time of a global economic contraction? Isolating the fed from the other global entities that generated debt and liquidity growth is just agendist activity. Right now the Chinese are whining to the fed not to raise rates because they know how that will complicate their currency positon? Is that WTF enough?
Davy on Mon, 19th Oct 2015 6:38 am
Ape Man said “pen, you are 100% correct. One only needs to spend a short time researching the NDAA (most Americans have not) to see it for themselves.”
Ape you do realize we were talking about US financial laws not laws of ha·be·as cor·pus right?
BC on Mon, 19th Oct 2015 4:17 pm
As for a currency war, there is a general misunderstanding. Unlike during the mercantilist, fixed-gold- and gold-exchange standards of the past, the fiat digital debt-money US$ reserve currency has facilitated since the 1970s-80s what is referred to as “globalization” or what I refer to as the Anglo-American imperial trade regime, i.e., the successor to the British Empire.
The result of the 30-year process during which US supranational firms invested trillions of dollars in China-Asia is that investment, capital, and “trade” flows and rate of flows have effectively reached parity between the three major trading blocs, i.e., Americas, Europe, and Asia.
This is reflected by US and Japanese firms pulling FDI en masse since 2013-14, causing China’s production and export sectors (~55-60% of China’s GDP) to contract into recession, leaving ~40% of GDP, of which ~14% is reported as gov’t spending, to pick up the slack from the crash in production and exports. Thus, China’s economy is not growing 6% but rather closer to 2-3% nominal, 1% real, and ~0% real per capita potential.
The ceasing of growth of world trade since late 2014 and earlier this year is additional evidence that China-Asia’s regional economy is not growing or in recession.
Therefore, Japan and the EU engaging in QE to juice banking system liquidity to devalue the Yen and euro to boost exports, and China devaluing the Yuan/renminbi will have (has had) only a short-lived, one-off affect to domestic production and exports, after which foreign exchange-induced gains will fade, and conditions will again “normalize” at the Peak Oil- and LTG-induced no growth or EOG of global real GDP per capita.
We’re there now.
So, there won’t (cannot) be an actual conventional “currency war” with the anticipated positive effects for production and trade, or at least not one that lasts long.