The Federal Reserve’s Fire Sale: Selling America Short

The big money investors were saved to fight another day by the actions of the Federal Reserve, but now the rest of us are about to pick up the tab. This is the calm before the storm.

Up to now we have seen the price of gas at the pump escalate to between $4 and $5 dollars a gallon and we’ve seen increases in food prices. In the coming few months we’re going to see the price of EVERYTHING go way up and that when the Federal Reserve’s chickens, as Jeremiah Wright might say, will be coming home to roost. It takes about six months for the effects of that sharp a jump in oil prices to fully work through the economy. Production and transportation costs for everything will shortly have to be passed on to the consumer.

Even now the travel industry has got to be feeling the pinch; in six months they will be in sorry shape indeed. How are airlines supposed to keep flying with prices this high? The days of cheap food, cheep gas, cheep travel, and cheep money is about to come to an abrupt end. We are months away from the realization that our economic trajectory is going to change our way of life forever. The world as we knew it is over and we are about to enter a new world in which we relearn the facts of life that our grandparents and great grandparents tried to pass on to us.

The Federal Reserve is a profit making corporation owned by the big money of Europe and America. (The Rockefellers, JP Morgan, the Rothschild’s, etc.) They are not part of the US Government and they, NOT the US government, control our economy. It’s important to know that the people who OWN us are now selling us short, that is betting that we are going down in value. The US Dollar has been the worlds reserve currency for some time now and those days are, in my opinion, about to end. In the days before the Federal Reserve, in the days when we were on the gold standard, the dollar had value independent of the machinations of bankers. In our times the dollar is backed by “the full faith and credit of the United States”. We are now a debt based economy in which the Federal Reserve lends the government our own currency for interest, but it wasn’t always so.

As the US economy melts down in the months to come I suspect that Europe is going to come through smelling like a rose and the Euro will take the place of the dollar as the world’s reserve currency. Given the political climate and the likelihood that Obama and the Democrats are likely to win big over McCain and the feckless Republicans, when the “crisis” comes: it’s going to be used as an excuse to socialize the country. As things get worse, the image of FDR is going to be evoked and we will descend into new-dealism that will be an endless slide into an economic coma.

Just as the Federal Reserve passed out truck loads of dollars to the banks to deal with the “credit crisis” so they will now be forced to tighten up money to deal with the “evils of inflation”. I don’t have much confidence in that plan! I think we have reached a tipping point where our dollar will continue to lose value and where credit will be abruptly tightened up at the same time. The result will be an economy where prices continue to rise while the dollar continues to lose value. Money for investment will dry up and the government will start taking over large chunks of the economy, nationalizing whole industries, for the common good, and to keep the economy from going belly up.

Naturally the government will have to expand to fulfill this new role and, naturally, taxes will have to go up such that we will pay more and more in taxes. In ten years, we face the possibility of waking up one morning and being surf’s in our own country. Previously the richest country in the world, we will get up one morning and look around, with a blank stare, at a crumbling country. Perhaps we should join the spotted owl and the polar bear on the endangered species list because if we don’t get a handle on the money and this economy, the way of life we now enjoy will be extinct long before the spotted owl.

Proverbs 22:7- 7 The rich rule over the poor, and the borrower is servant to the lender.
NIV
We should have known better.

Source: Reported by End Times America http://makeitso57.wordpress.com/