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6 Charts Which Prove That Central Banks All Over The Globe Are Recklessly Printing Money

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If the U.S. dollar is being devalued so rapidly, then why does it sometimes increase in value against other global currencies?  Well, it is because everybody is recklessly printing money now.  The 6 charts which you are about to see below prove this.  The truth is that it is not just the U.S. Federal Reserve which has been printing money like there is no tomorrow.  Out of control money printing has also been happening in the UK, in the EU, in Japan, in China and in India.  There are times when one particular global currency will fall faster than the others, but the reality is that they are all being rapidly devalued.  Unfortunately, this is a recipe for a global economic nightmare.

Right now you can almost smell the panic as it rises in global financial markets.  Investors all over the world are racing to get out of paper and to get into hard assets.  Just about anything that is “real” and “tangible” is hot right now.  Gold hit a record high last year and it is on the rise again.  In fact, it just hit a new five-week high.  Demand for silver is becoming absolutely ridiculous right now.  Oil is marching up towards $100 a barrel again.  Agricultural commodities have exploded in price over the past year.  Many investors are even gobbling up art and other collectibles.

Paper money is no longer considered to be safe.  All over the globe investors are watching all of the reckless money printing that has been going on and they are becoming alarmed.  An increasing number of investors and financial institutions are putting their wealth into hard assets that are real and tangible in an effort to preserve their wealth.

The other day, a reader of this column named James sent me some charts that he had put together.  I thought they were so good that I asked him if I could include them in an article.  These charts show how central banks all over the globe have been recklessly printing money.  Over the last 30 years virtually the entire world has developed a great love affair with fiat currency….

So is everyone printing money?

The U.S. is printing lots of money…..

Source, The St. Louis Fed

The Bank of England is printing lots of money…..

Source: The BoE

The EU is printing lots of money….

Source: The ECB

Japan is printing lots of money…..

Source: The BoJ

China is printing lots of money…..

Source: The People’s Bank of China

India is printing lots of money…..

Source: Reserve Bank of India

Of course anyone with half a brain can see where all of this is ultimately headed.  In the end, inflation is going to spiral out of control and we are going to witness financial implosion on a global scale.

So why don’t these nations just adopt sound money?

Well, it turns out that if you are a member of the IMF, you are specifically prohibited from having gold-backed currency.

Yes, you read that correctly.

In fact, U.S. Representative Ron Paul once sent an open letter to the U.S. Treasury and the Federal Reserve asking about this and he received no response.  The following is the content of that letter….

Dear Sirs:

I am writing regarding Article 4, Section 2b of the International Monetary Fund (IMF)’s Articles of Agreement. As you may be aware, this language prohibits countries who are members of the IMF from linking their currency to gold. Thus, the IMF is forbidding countries suffering from an erratic monetary policy from adopting the most effective means of stabilizing their currency. This policy could delay a country’s recovery from an economic crisis and retard economic growth, thus furthering economic and political instability.

I would greatly appreciate an explanation from both the Treasury and the Federal Reserve of the reasons the United States has continued to acquiesce in this misguided policy. Please contact Mr. Norman Singleton, my legislative director, if you require any further information regarding this request. Thank you for your cooperation in this matter.

Ron Paul
U.S. House of Representatives

Sadly, the truth is that the global elite don’t want nations to start adopting gold-backed currencies.  They want countries to use fiat currencies that they can openly manipulate for their own benefit.

At this point, every nation on earth (to the best of my knowledge) uses a fiat currency.  All of the major global currencies are being continually devalued.  In fact, there are times when counties will purposely devalue their currencies even more rapidly in order to gain a competitive advantage in world trade.

This is why so many investors now have such an aversion to paper currency.  It starts losing value the moment you take possession of it.

In some areas of the world, “gold fever” is absolutely exploding.  For example, China imported five times as much gold in 2010 as it did in 2009.  On the Shanghai Gold Exchange, trading volume soared 43 percent during the first 10 months of 2010.

Gold, silver and other precious metals are now seen as a great hedge against inflation worldwide.  Investors all over the globe are demonstrating a strong preference for “real money” over “paper money”.

So what does all of this mean?

It means that some tremendous imbalances are being built up in the global financial system.  The central banks of the world must continue to inflate these bubbles with constantly increasing amounts of paper money and debt in order to keep the game going.  If at some point the reckless money printing comes to a screeching halt it is going to unleash hell on global financial markets.

But if all of this reckless money printing continues we are eventually going to see horrific inflation all over the planet.  In fact, we are already seeing significant inflation happening in many areas of the globe.  Almost every single day a new headline about inflation in China seems to pop up in the financial news.  Rising food prices are sparking unrest in the Middle East and elsewhere.  Even U.S. consumers are starting to see some uncomfortable price increases at the gas pump and in the supermarket.

So it is not just Federal Reserve Chairman Ben Bernanke that is off his rocker.  The whole world is going crazy with money printing.

Hopefully this whole thing is not going to end as badly as many of us fear that it will.  But right now the central banks of the world are pumping unprecedented amounts of cash into the global financial system, and those in the global financial system are funneling a very large percentage of that cash into hard assets.  Unless something changes, that is going to mean that prices for basic necessities such as food and gas are going to continue to rise.

This is quite a fine mess that we are in.

Does anyone see a way out?

  • impeachRonPaul

    Ron Paul is a racist homophobe that wants church rules and no personal freedom. Gold back currency is stupid and pointless. Of course the bigot Ron Paul is invested in gold so he wants to use his power for personal gain.

    There is not enough gold on the planet for a currency system. Why not use oil? Oil is more important than useless gold. Ron Paul wants to end personal freedom.

  • mondobeyondo

    A rising paper tide, sinks all fiat ships…

  • Mark Plus

    “Printing money”? What 20th Century decade do you live in? You might as well talk about “printing books” in the age of Kindle and Nook, when more and more of the book trade involves ebooks sent over the internet or through wireless networks.

    I just have to laugh at gold obsessives’ cognitive dissonance about natural resources. They dismiss Malthusian claims that we face crippling shortages of this and that, because man’s mind, Julian L. Simon’s “Ultimate Resource,” can find cheaper substitutes, figure out how to meet our needs with less, innovate new technologies to bypass the resource, etc. Ebooks have effectively dematerialized entire libraries and have economized on the use of millions of trees formerly harvested for book paper, for example. Yet we’ve done something similar to inventing the ebook when we invented fiat money as a cheap substitute for gold, especially in money’s digital format. But the gold cranks consider that application of man’s reason to a resource scarcity an abomination.

    The telephone system used to needs thousands of tons of copper to work, for example, yet we’ve figured out how to bypass the need for so much of that resource by inventing communications satellites and wireless communications. Do you call your cell phone a “counterfeit phone” or a “fiat phone” because it doesn’t have all that copper “backing it up” like the “real phones” some of us can remember in our youth?

  • PaulF

    The money supply isn’t M2 – it’s money + credit – that’s what will determine inflation/deflation.

    The situation is not as simplistic as implied here.

    Also, if all global currencies devalue at the same rate, we have no relative change in value. Of course, as noted, everyone wants a weak currency to support their exports.

    Also, theoretically, inflation is fine as long as wages keep pace – but, of course, they never do, and in the real world inflation benefits those with first access to money – the wealthy and the government. (That’s why it’s built-in to the system!)

  • Kevin


    It’s called the oil peg. The USD world reserve currency moves inversely to the price of oil.

    Oh By The Way, Ron Paul voted against NAFTA and China Free Trade. Your pet democrat or republican do the same?

    Not enough gold? Who says? So you make 20 grams of gold per week or 38 ounces per year. At least your savings are safe.

  • Maxwell Genaw

    Ron Paul 2012

  • Vern

    Looks like some trolls have made a visit.

    Yes, paper money is only a part of total money supply. Nevertheless, creating it from thin air and giving it to Wall St has run up commodities and the stock market.

    Fiat skews things and it is oh-so-subject to being manipulated for the benefit of those in power. Having a currency bounded in some way from reckless money printing is something prudent.

    Beyond this, fiat is control.
    And there’s power hungry out there that seek control. For them, too much is never enough.

    Look behind the trend and it becomes apparent we’re being herded int a one world currency run by an unelected bureaucracy.
    No the IMF and it’s SDF fiat currency isn’t a solution. In fact, it’s the same old thing.
    The IMF is the planned successor to the Fed.
    It’s controlled by the same powers/owners that are behind the Fed. The IMF is the Fed on steroids.

    Question … who is behind the IMF.
    Who selects its officers.
    How is it’s agenda reached.

    There’s danger ahead and its spelled

    I M F

  • Anti_troll

    EE Trolls. Probably just 1 human behind the curtain…sad times

  • Some of you may be missing the point: the reason you attach gold to the money supply is so that you do not print too much money. Your gold backs your money. Otherwise, the temptation is too great to simply print up as many greenbacks as you want, when you want, rather than try to live within your means. The result of a non-gold or silver backed monetary system? Well, you can see the result of overprinting right now.

  • Peter North

    Ron Paul is just another sophist who loves to manipulate his brute and ignorant constituency by appealing to tons of bullshit about the Constitution and other patriotic crap (a clever way to make easy money). The collapse of the US Dollar is just around the corner and it’s irreversible. A new monetary system will emerge out of this chaos (a one world currency) and most likely, nations as we know it, will start disintegrating in order to become a one global community. National sovereignty and patriotism are things of the past.

  • PaulF

    Why is this idiot “impeachRonPaul” allowed to post his idiotic, bigoted comments to every article that have nothing to do with said article, I wonder. impeachRonPaul, you are clearly a very naive and ignorant person and also full of spite for things you do not understand.

  • BigM

    To: ImpeachRonPaul

    You said: Oil is more important than useless gold.

    Your an idiot!!

  • Zero coverage of NYSE and Deutsche merger. Look the writing is on the wall. Compile all financial powerhouse under one roof. Control the finances, control the market. Printing money to keep the game going.

    NYSE and Deutsche Borse = Frankfurt Stock exchange + Max Warburg = Paul Warburg, the architect of the Federal Reserve. The game is rigged!

  • When the US Dollar collapse arrives, where will the smart money flow – the Euro, Pound Sterling, Renminbi, Rupee, or Yen?

    Global money printing is not reckless. This is how wealth is being transferred form the foolish majority to the elite minority that are in control.

    When the US Dollar collapse arrives, the elite minority will have all their wealth in hard assets.

    “We” are not in a “fine mess” – just the foolish majority. Wall Street is making record profits from commodity speculation funded by free money from the Federal Reserve.

    Buy pre 1965 US silver coins and don’t vote for any more Democrats or Republicans.

  • JB

    Not all economies are devaluing at the same rate, only the major ones. This means the currencies of the major economies will be hit hardest and fall in value more relative to economies running more sane monetary policy.

    See this link for some of the countries who will likely do better than the major economies as they are not holding base interest rates artificially low:

    Also to say there is not enough gold/silver around to be used as currency is looking at the problem the wrong way round; precious metals are seriously undervalued and if their price was not suppressed to maintain faith in fiat currencies their prices would hit the stratosphere. I read somewhere that gold would need to be at US$38,000 per Oz in order to be able to peg the US$ to it!

  • Alice

    This is how the new working poor are created. Devalue their assets/salary. By doubling the amount of dollars, it is the same as yesterday’ $50,000 pay check, is today $25,000 in real value. If they reduced everyone paycheck 50%, riots would break out, if the devalue the money 50%, nobody would notice! Same thing!

  • It is the way it is, and absolutely *NOTHING* will fix our system without getting to the root: political corruption. Politicians sharing in the booty by taking campaign bribes, and then rolling over to the industry that wants in the taxpayer’s pockets. The recent “crisis commission” blamed everyone except the nation’s board of directors — our CONGRESS — even when the politicians are 100% to blame and most should be in jail.

    The key problem is the way we finance elections. There are only two kinds of money: public and private. Private money got us here and nothing will change until we get these legal bribes out of politics. But a fix is vigorously opposed by the political elite that benefit from the existing corruption.

    Nothing else matters, regardless of your issue. Nothing is going to change until we have public funding of campaigns. Politicians spend taxpayer dollars because they ARE PAID to spend taxpayer dollars, and robbing the SSI fund and Medicare (as just two examples) gives them the cash needed to attract campaign dollars.

    Our problem is NOT government, and it is not R’s or D’s. It *IS* that government is owned by CEOs and corporate interests that want in the taxpayer’s pockets. The 2010 elections were funded by just 1% of Americans, when they should be financed by 100% of taxpayers. And at $5 per taxpayer it would be a bargain. Even at 100 times that.

    CEOs want short-term profits to increase their already massive salaries, and are willing to share those profits with the politicians that made it all happen. Thus NAFTA and other laws are passed that enable outsourcing to countries with wage scales one-tenth ours. Or are repealed (like Glass-Seagall) to enable the Fat Cat bankers to rip off the public. And all while deregulation crashes our country, China and India flourish.

    As a former CEO my company would not have survived if I had an employee or board of directors who took money on the side and gave away company assets in return. Our country can’t survive this corruption either.

    The voters change nothing. We elect a new group of politicians and the Fat Cats simply re-direct their bribes as we continue down our spiral.

    The public’s choices are simple: a 100% turnover of politicians until the above fixes are made, or a national revolution is inevitable. And all because our politicians refuse to stop the bribery they benefit from, and the public refused to stop it.

    If politicians are going to be beholden to their funders, those funders should be the taxpayers. We MUST demand that our senators and representative pass the bill at:

    Jack Lohman …

  • Grekko

    Ron Paul is a racist? That’s a new one on me. As for there not being enough gold to return to a gold standard, that is hogwash as well. Why is it that when we were on a gold standard (for 150 years), it’s buying power increased by 10%? also, why is it that since we went totally fiat (no gold backing), the buying power of it lost 85%? You see, gold keeps countries honest. When their gold is disappearing from trade deficits, they change the laws affecting business so we can export more and everyone does better. Gold and silver is honest money, whereas fiat currencies always, throughout the history of the world, go bust!

  • John

    This is how currency wars are done. Currencies are devalued like crazy to keep the country or economic zone in question competitive. The whole thing is being fueled by the US wholesale forging of the economy through money printing. As a result the financial system (like PaulF pointed out) is basically seizing the wealth of the middle class all over the world.
    It would be interesting if we could calculate ‘real economic growth’ in the western world in the last 20 years or so – ‘official growth’ minus the increase in debt and M3. I’m willing to bet almost anything that the result will be that there has been no growth at all – or even negative growth.
    The politicians have been falsifying the entire economy to keep the sheeple content and themselves reelected. The financial system happily obliges and takes all our wealth for themselves as a fee for carrying out the scam. This was originally probably just a minor ‘meddling’ approved by politicians who wanted to stay in office, but has turned into a major class war between the middle/working class vs the financial system and the politicians (who have now turned into puppets of the financial system).
    This is exactly like all the good old politicians and union leaders who made a ‘one time’ deal with the mob to get elected but didn’t realized that the mob would own them forever.
    Lloyd Blankfein’s after hours visits to the White House are not social calls to a sovereign leader. He’s telling his bought and paid for puppet what to do next.

  • Michael2

    This quote never gets old for me. . .

    Thomas Jefferson,

    “If the American people ever allow private banks to control the issue of their money,
    first by inflation and then by deflation,
    the banks and corporations that will
    grow up around them (around the banks),
    will deprive the people of their property
    until their children will wake up homeless
    on the continent their fathers conquered.”

  • Josey Wales

    This is all by design. Devalue paper money, declare a one world currency which will lead to no paper money at that point, all transactions will be electronic, from a chip planted in the back of your hand. Then every transaction you make will be recorded, your every move will be monitered, every thing will be taxed and taxed again. You will be a digit on the Grand Masters computer, a true debt slave. This is how the new world order will be ushered in, one world government.

    This currency crisis is by design, “Never waste a good crisis” seems to ring a bell. When the elite inflicts it’s pain on the common man, in the form of price inflation which will lead food shortages, and unemployment beyond your imagination, due to the unlimited printing of paper money, all the Sheople will beg for relief Then almost no one will fight the transformation from a free country like the U.S, to a one world currency and a one world government.(I know it’s not a free country any more, but it’s still better than most)

    Why is this so hard for everyone to see. Just think about it! Open your eye’s and pay attention to your governments actions and their words, they as much as tell you what is about to take place. They are tearing down our society, turning the young people against the old people, the black people against the white people, the poor people against the rich people, with their media machines that manipulate the people’s thinking every time they turn on the television. Why? Because “united we stand and divided we fall” they have to divide the people so we do not focus our energy toward maintaining our freedom, focus our energy against them. We need to unite and stand together and fight this Global Elite Power Grab Now. Fight against one world currency, fight against a one world government. I’m afraid that it’s all ready to late!

  • Very good article!! Thank you again for finding these real truths about all these countries printing money. Here is a quote from a man who knows about money – Mayer Amschel Rothschild
    “Let me issue and control a nation’s money, and I care not who writes the laws.” The big elitists of the world says, follow the BIG money. The money is the key to understanding how politics and social issues are manipulated in the world, and there is no question about that. When the Lord said, “For the love of money is the root of all evils,” I think there may have been special emphasis on the word “ALL.” Man has the desire to control his environment and those around them, and there is nothing more powerful in life than controlling the destiny of nations. There is no force on earth more powerful outside the realm of heaven itself than to the heart of an individual. When generations look back and realize what perpetrated in 1910 at Jekyll Island, Georgia, with the formation of the Federal Reserve System, they will wonder how the American people ignored the lie for so long and never did anything about it. Worse yet is that few really know, to this very day, who and what the Federal Reserve really is and does. When the money supply of this nation is in the hands of a few, or more accurately in the hands of a private bank, that is raw power that effects the daily lives of generations of people. Rulers and politicians become pawns in the game of control of the purse. The single greatest deception in the United States of America for the last one hundred years has been disguised truth about the Federal Reserve System. It is not Federal because it is owned by private bankers, and there is no reserves because its wealth is generated by debt or fractional lending. For every dollar in the bank, there is only 1.44 pennies in reserve. Fractional lending led to the downfall of previous generations and it will lead to the final downfall of the United States. There is simply no way to escape it. The whole world’s financial systems will fall like a stack of domino’s very soon!!! I’m expecting 2011 to be possibly the grand finale to the Great Tribulation getting started and our Lord entering into the affairs of mankind to clean up this universal financial mess and other problems we cannot possibly fix ourselves without divine help!!!

  • Gabrial Singh

    simplistic and fantasy filled rants about doomsday are fun for the what if crowd, but lets take a look at reality. the doomsday crowd has been looking for credibility since nixon took the usa off the gold standard in 72. Since that time, we have seen the same cyclical movements of commodites, that were seen prior to the gold standard being debunked. boom and bust, which is common for a captilistic system. of course, with the “new” capitalists saying they are “too” big to fail, that is what messed up the system. failures are supposed to fail, thus boosting the stock of the successful companies. if you allow all the losers on wall street, to be bailed out, THAT is what causes this imbalance you talk about. stop eating up that teabagger pablum and do your own research. It would add credibility to your arguments. P.S. The crackpot Ron Paul and his son rand are the LAST two people you should be quoting here, if you are in pursuit of crediblity. knee jerk responses to serious economic issues, is what caused the last two global collapses (1929, 2008)

  • wofat

    as long as gas don’t go to four bucks, that’s when i’m puttin my foot down (literally).time to start walking

  • Smash the Control Machine

    They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumbling block of their iniquity.

  • Antonio Gonzalez

    The gold going up , then they can print the diference.

  • Seeker

    “Ron Paul is a racist homophobe that wants church rules and no personal freedom. Gold back currency is stupid and pointless. Of course the bigot Ron Paul is invested in gold so he wants to use his power for personal gain.

    There is not enough gold on the planet for a currency system. Why not use oil? Oil is more important than useless gold. Ron Paul wants to end personal freedom.”

    Kent Snyder, Ron Paul’s Campaign Chair in his presidential campaign was openly gay. I guess Ron hired him because he hates being around gay all day.

    Why not use oil? For one, who can carry around a barrel of oil? Eight barrels weighs a ton, literally. I can carry a small pouch of gold coins, or silver, and transport my wealth where I want to. You need a hand truck and a strong back to move just $100 worth of oil. And if the barrel is damaged, the oil leaks out into the ground, gone, and you’ll be fined for the mess. It’s also volatile and you cant smoke a cigar around it. Neither is oil a good medium of exchange – would you carry a few gallons of oil to the supermarket to buy your groceries. You also need to find someone who can refine it to make it usable. Sure, you could issue paper certificates backed by oil, but then we’re back to paper fiat money certificates which can be printed with abandon. Diamonds as money? Every diamond is different and has different qualities to the stone; the whole market is also a monopoly price controlled by DeBeers. Gold’s value as money is an intrinsic end to itself – it’s been refined, that’s why it’s gold. There are different grades of crude oil, from Brent, to light sweet crude, etc. and each has a different chemical composition that you need a lab to decipher. 24k gold is 24k gold. The best reason given for gold as money that I’ve seen is “gold is money because it is.”

  • Funny how the greedy rats fight over the leftover chickenbones while the boat sinks.

    gold, oil, monopoly cash, all useless chaff on the way to the bottom. Humanity is about to self destruct due to greed, and the idiots in charge are obviously to dumb to realize what the problem is.

  • anAmerican

    ImpeachRonPaul is a government dependent who is scared to death of actually having to work for a living and leaving his mothers basement. Get a life gubbybaby.

  • bud dog

    @Mark Plus
    Interesting POV but i can`t get gold backed money or use precious metals as currency because of laws not. if fiat money were intrinsically better this would not happen.
    Italians had silver coins during the sixties:
    their production was stopped because people just kept them instead of exchanging them. Too successful.

  • ParadigmShift

    I hadn’t been to Mish’s site for months, and he’s still going on about deflation.

    FFS, Mish, you lost the argument, just accept it.

  • Maria

    No, the only way to prevent such a mess is to stay on a gold standard and stay out of debt. Too late for that, isn’t it?

    Fiat is just another name for counterfeit. Printing fiat currency drives up fiat debt. None of it is real. It’s all smoke and mirrors. It’s no different than printing and using counterfeit money. The government can do it, but let you or I do it, and it’s off to jail for us. The sad part is, the government gets to do it, and we are the ones who have to pay for it.

    It is all designed to rob every nation of its sovereignty and bring each nation to its knees at the altar of one world currency and one world government.

    The people want it to stop, but the government isn’t listening.

  • mondobeyondo

    Personally, I think inflation will win over deflation, hands down. But that’s just me.

    The Great Depression was deflationary. Compared to what’s coming, the U.S. was relatively lucky back then. People got through the Depression by growing their own food, and making do with the few pennies and nickels they had. What’s coming down the road will be much worse. Because if hyperinflation ever takes hold in America, your paper money will be worthless. Your pennies and nickels will still have value, because they’re made of metal. Not precious metal, but hey, if you’re flat broke, copper isn’t a bad investment.

    Have you paid a visit to your local grocery store lately? Prices are already rising. Unfortunately, most people won’t “get it” until they cash out their 401(k) to buy a couple ears of corn. By then, it will be far too late. Welcome to North Zimbabwe.

  • What else can the banks do? They don’t make or produce anything. They don’t need to. They have plenty of suckers begging for worthless paper.

    Read “Common Sense 3.1” at ( )

    We don’t have to live like this anymore. “Spread the News”

  • mondobeyondo

    It doesn’t matter how you die…the end result is, you’re dead. Guess we’re going to go out in a blaze of atomic bomb glory. For the sake of the rest of the world – I truly hope that isn’t so.

    “Fire and Ice” by Robert Frost
    Some say the world will end in fire,
    Some say in ice.
    From what I’ve tasted of desire
    I hold with those who favor fire.
    But if it had to perish twice,
    I think I know enough of hate
    To say that for destruction ice
    Is also great, and would suffice.

  • Matt

    I second Josey Wales.

    Ron Paul a racist? Surely you jest. How did race enter into this? Oh yeah, like Josey said, create a division.

    Pick up your Bibles.

  • Wes

    Its so funny to see the Ron Paul haters come out.

    They throw out their ad hominiem attacks, racist, tea bagger etc. No proof of course because they know NOTHING about the man other than the lies that the ministery of propaganda at FOX news or MSNBC TELLS them. Sad.

    These are just leftist parasites who are terrified of having to work for a living. They hate Ron Paul, freedom, honesty, morality, decency. They fear it, because they are immoral, dishonest, statist, greedy, and stupid.

    They know NOTHING about human history, basic economic logic or honorable self reliance. And they want NONE of it.

    They want to blame everyone else for their own failings and poor choices in life, and they have no problem using government thugs to “correct” things. AKA stealing from their neighbors.

    You can not reason with this type of person, they do not WANT to be good neighbors with you. They are thieves and liars, con artist and layabouts.

    Hard work and self sacrifice are dirty words to these people, something to be avoided at all costs.

    They HATE truth, they HATE Ron Paul for shining the light of truth on their lies and making them scatter like the cock roaches they are.

    They have survived and thrived because of the degeneration of our nation and its people, by its governments bribes and theft and ponzi schemes that have dominated it for over 100 years.

    This is all comming to an end before our very eyes, and sadly justice will be swift and very painful as history has shown.

    Good luck to those who made your own way in life even we will have to suffer for the sins of our nation, but for those of you who have lived off your neighbors, who have sent out thugs to steal on your behalf, repent and pray forgiveness for your sins.

  • Jonesy
  • Eagle’s Eye

    GOLD IS THE ANSWER…GOLD shuold b used as a reserve currency…GOLD shuold replace the paper currency…GOLD should b deposited in banks instead of paper curency…GOLD is unperishable and unrustable with time…GOLD shuld b mined and searched for all over the world…GOLD should b explored and researched by scientists to invent on how to compose/make it via other metallic chemical reaction…GOLD!GOLD!GOLD IS THE ANSWER!!!

  • Eagle’s Eye

    @josey wales : damn man u r a did u figure that out? Everything u said is true and happening right now,if only more ppl know what u know…

  • sound money

    *cough* Bitcoin *cough*

  • Jct: Sure, printing money is scary to the Ron Paul crowd who think people already have too much money on the left chasing the goods on the right, Shift A inflation, because they don’t know about the other possible Shift B inflation, same money on the left chasing less goods on the right after foreclosure. I wonder why Economics teaches only Money Up on the left and never Collateral Down on the right? Could they be profiting from keeping people focused in the wrong direction? Har har har.

  • Gold is indestructible. All of the gold what has ever been mined can be collected and melted into one nugget. You can’t create gold, you have to mine it. Over the past 100 years, the globe averages about 3% of in increase in the amount of gold mined, so each year, no matter how technology increased, or labor changes, the amount of gold circulating can only be increased by about 3%. These two factors (1) you can’t burn it up, destroy it or eat it (2) you can’t increase the supply yearly by more than about 3% make gold a very stable commodity to be used as money. Silver, oil, wheat etc. all of these commodities can be destroyed, all of them are also subject to changes in quantity based on improvements in production. How would a oil backed paper money work if Alaska was opened to drilling or Saudi Arabia’s oil supply was found to be dying? It’s not stable, gold is. Silver is destroyed in film production and other industrial uses, most of the silver ever mined has been destroyed, NOT a good money device.


  • Jasper

    12/21/12 it will all come to a end anyways….

  • Kevin

    Most US sheep will eventually be broke as they are mostly feminized ignorant fools….

  • Name calling: A rhetorical technique used by people who have neither facts nor logic to support their position. And if they had either one they would probably not have the brains to use those facts / logic.

    This is quite a fine mess that we are in.
    Does anyone see a way out?

    Why yes, in fact I do. It is also a way out of the current housing / foreclosure mess. As evidenced by many of the ad hominem attacks used here, many will not have the attention span to read my article (30 min minimum) but for those whose attention span runs to an hour or so, and who understand complex arguments, this may prove to be a way out.

    At first blush it says nothing about currencies, but upon reflection you may see what I saw which is a way to subvert the fed with a commodity based currency and locally grown banking system

  • Liberte

    Calling Ron Paul a racist is actually a euphemism in place of calling him an anti-Semite. Calling him an anti-Semite too often will raise too many questions among the masses.

    At one time you had to engage in pogroms to qualify as an anti-semite. Then that changed, and you only had to hate Jews to be an anti-Semite. Then later you only had to question Israel’s inhumanity to qualify as an anti-Semite. Nowadays all you have to do is disagree with central banking and you are an anti-Semite.

    Tomorrow you will wake up and if you celebrate Christmas you will be considered an anti-Semite.


  • impeachRonPaul

    Ron Paul published a racist newsletter for 20 years! He even admits so. You small minded far right republicans are so in the dark. That is new? No, just to ignorant white trash Ron Paul supporters.

    Ron Paul has been on goverment payroll almost his whole life. Also he has goverment paid for healthcare which he fights to take from you.

  • Kevin


    Keep voting back in the politicians that voted for NAFTA and China Free Trade if you wish.

    Ron Paul voted against both NAFTA and China Free Trade.

  • Alice

    A man walks down the road, but stops at a peculiar sight. Two union guys are working by the side of the road, but the first is simply digging holes while the second is filling them up. Curiosity gets the best of the walker, so he asks the men what they are doing.

    “We’re a post-hole crew,” says the first.

    “But what about the posts?”

    The other union guy answers, “we’re a three man crew — Bob digs the holes, I fill them, and Charlie puts the posts in, but he’s out sick today.”

  • Bill

    Everyone should know what happened in 1971. When Nixon ended the gold standard, he quickly backed the U.S dollar by another much more important commodity…OIL! Just look at all the pictures of Nixon shaking hands with the Saudi Royal Family in the early 70’s, thats what was happening. The U.S dollar is backed by oil (and many soft agricultural commodities as well) because the dollar is needed in order to purchase Oil and other commodities ( this was part of the agreement with the Saudis, U.S Dollars must be used to purchase oil from OPEC). This has allowed for a steady demand of U.S dollars globally for the past 4 decades. I think this also can explain why China is using its 2.85 Trillion dollars of reserves to gobble up commodities at a record pace. This is what allows America to export inflation around the world, which explains why there are so many riots over food happening around the globe. Gold and silver will have their fun but it is not going to save you. Gold and silver are hedges against uncertainty and crisis, not inflation as many would have you believe. You may think im crazy but considering the amount of inflation from 1980 til now gold should be much much higher than it currently is. Eventually the crisis will subside and gold and silver will continue down as they always have.

  • Stephen


    Sure ebooks are great…until the power goes out, then you’re screwed. Sorry but there’s no substitute for a good old fashioned book. How is fiat currency innovative?? Has it made our lives any easier?

  • Kevin


    Good post. Few understand the Oil Peg and the status (and power) the US has as long as it maintains the Reserve Currency of the world. It is both our savor and Achiles Heel.

    Many believe that the world central bankers have over decades released gold into the system to keep the price down and if a true accounting was done many nations do not have the reserves they claim. A few years back the UK sold a lot of it’s gold reserves before the rise. A good percentage of the US reserves are held as collateral by the Federal Reserve on the national debt.

    The “Eventually The Crisis Will Subside” is true. Eventually can be decades and span your lifetime.

    Seriously do you have any suggestions on what will save you?

  • victor


    Yes, fiat curency makes credit easier and therefore, it has made our lives easier – IN THE SHORT RUN AND IN THE SHORT RUN ONLY. That run is now over.

    “If your outgo exceeds your income, your upkeep will be your downfall.”

  • GM


    Gold was $20 when my father was a boy, $35 when I was a boy. Now it is $1400. That’s a lot of inflation response. Gold stagnated from 1980-2000 mainly because of Paul Volker, Ronald Reagan and Central bank gold price suppression schemes, which can no longer be maintained. The dollar is dying and taking some other fiat currencies with it. You can’t live on credit cards forever.

    Gold, silver, oil, gas, food-related investments will be good, and perhaps weapons and medical supplies.

  • Sean

    Stop printing money, immediately raise interest rates…cut government spending dramatically. Obviously, mandatory spending is the biggest piece of the pie so make the necessary cuts. Stop trying to “be all things to all people” around the world. Cut military spending. Immediately transitions into a counter terrorism/FID/UW strategy in Afghanistan instead of COIN. Draw down the military quicker than 2015 (see this as an oppurtunity to improve quality). Immediately start transitioning all gov’t vehicles to hybrid, ev or natural gas (over a 10 year period). Approve new Nuclear Power plants now! We are facing several converging factors (energy crisis, unemployment, inflation, debt, deficits) that will destroy this country unless we act yesterday.

  • George Kent

    This is a selfish posting. My wife and I are retired and pushing seventy. Our only income is a very modest social security and my veterans disability compensation. We both are disabled and can’t work. We still have a house payment and all the other expenses younger folks have.

    Our small pay raises are tied to cost of living and the past several years we’ve been told by the government that there is no inflation, hence no income increase. We don’t look for an increase for 2012 either. WE ALL KNOW prices keep steadily climbing.

    I don’t know where “The Government” gets its information. You, reading this, know cost of living has kept right on rising. Please, if you are a congressman, senator or have any kind of influence with our law-makers, please pass this on. Thank you.

  • George Brouxhon

    The whole protocol of democratic governance has to be reformed to bring democracy closer to the people’genuine aspirations rather than for pure politifal expediency which is essentially based on bribery.

  • George Brouxhon – “The whole protocol of democratic governance has to be reformed to bring democracy closer to the people’genuine aspirations rather than for pure politifal expediency which is essentially based on bribery.”

    I know, we should govern ourselves via the internet 🙂

  • While 150 UK homes a day continue to go into repossession, mathematically perfected economy‚ would re-finance a £100,000 home with a hundred-year lifespan at the overall rate of £1,000 per year or £83.33 per month. Without costing us anything, we would immediately become as much as 12 times as liquid on present revenue. Transitioning to MPE‚ would apply all payments already made against existent debt toward principal. Many of us would be debt free. There would be no housing crisis, no credit crisis. Unlimited funding would immediately be available to sustain all the industry we are capable of.

    There is no other solution. Regulation can only temper an inherently terminal process. If you are not promoting mathematically perfected economy, then you condemn us to monetary failure.

  • John

    Bill, the U.S. dollar is not backed by oil (especially foreign oil), by agricultural commodities, or anything else. There is no guarantee that a dollar will buy a fixed quantity of oil — far from it, the dollar price of oil (and wheat, and corn) changes all the time. Just because oil is priced in dollars doesn’t mean that the dollar has any long term support. If I own Swiss francs and don’t trust the dollar and want to buy oil, I’ll just wait until the moment of purchase, buy dollars with francs, and then buy the oil. If the Saudis don’t trust the dollar they’ll immediately sell the dollars and buy riyals. If the Fed keeps doing what it’s doing nobody will want to hold dollars any longer than necessary, regardless of what commodities are priced in it.

    The main reason major oil exporters haven’t switched to pricing in some other currency is because all the other major fiat currencies are in the same tar pit that the dollar is. That doesn’t mean that inflation won’t happen, it just means that the oil price will go up no matter which currency you price it in.

  • duggy dugg

    you guys are all full of shale ; the fed is a private corp ; it prints all our money ; it lends it to govt ; govt extracts income taxbux from you to pay the fed back the principle plus interest ! that is why the economy is sh…ot ; that is where all the equity has gone ; paper money does not need to be backed by gold ; just not printed by a criminal swindler bank , the non federal fed !

  • duggy dugg

    john [above] is right about the dollar not being backed by anything ; nixie took us off the gold standard [the ability of a holder of dollsr to demand gold for them ] off the gold standard in 1971 because there was no more gold to piss away at $35 an ounce …

  • kc

    Bill, gold is just seeking and reaching entropy after decades of manipulation by central banks and traders. it will eventually settle at a level commensurate with the many years of inflation and resulting devaluation of fiat currencies…

  • brian

    So we should just grab our guns and spears and head for the caves huh! Bernanke isn’t the only one screwing us – the whole industrialized world is doing it. Therefore if we don’t do it, we get screwed faster than we will if we help create our own inflation. THE DAMN SKY IS FALLING – looks like it doesn’t matter what any nation does as its all a see-saw effect. So who benefits from this? Come on, some central bank saw this all coming and is positioning itself to be the recipient of ungodly rewards. Where can we take our guns and bibles and hang on the rest of our lives? Is there a cure for cynacism?

  • our money will be nothing the day that the economy collapses. it will happen very soon. i doubt if we will even make it out of 2011 before the economy implodes. the dollar is worth nothing anymore and the majority of americans have no idea what is going to happen and they are not prepared at all. printing money is just making the dollar worthless. when the dollar gets replaced as the currency used by the world overnight we will become a third world country and there will be riots in the streets overnight. best advice anyone can have is be prepared,food,a water source and protection for your family

  • sevenD


    What is scary is that Bill Gearhead sounds more connected to what is going on and more coherent than any talking head I have seen on the TV. How can folks from the generation population be smarter than all these economists and analysts and financial gurus? How could the SEC fail to see the Madoff scam for so many years? Why can’t anyone out there see that this is all being done intentionally?

    I am sorry but it isn’t possible. It is not incompetence. It is criminality. The free citizenry of the planet had better start questioning authority.

  • Global investors have been keeping an eye on this reckless money printing going on. Everyone is becoming alarmed because obviously paper money is no longer safe. Tangible and real assets are now the concern of most investors and financial institutions.

  • Options for answers are:
    A- Assumes that central planning is taking place
    B- Illustrates how natural resources are created
    C- Illustrates how money is created by the banking system
    D- Illustrates the interdependence of business and consumers

  • Constanta Curatenie

    I located what I was searching for. wonderful article, thanks

  • neelkanth

    So good a narrative.

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