The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Enter your email to subscribe to The Economic Collapse Blog:

Delivered by FeedBurner

How QE3 Will Make The Wealthy Even Wealthier While Causing Living Standards To Fall For The Rest Of Us

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

The mainstream media is hailing QE3 as a great victory for the U.S. economy.  On nearly every news broadcast, the “talking heads” are declaring that Ben Bernanke’s decision to pump 40 billion dollars a month into our financial system is definitely going to help solve our economic problems.  The money for QE3 is being created out of thin air and this round of quantitative easing is going to be “open-ended” which means that the Federal Reserve is going to keep doing it for as long as they feel like it.  But is this really good for the average American on the street?  No way.  Despite two previous rounds of quantitative easing, median household income has still fallen for four years in a row, the employment rate has not bounced back since the end of the last recession, and new home sales have remained near record lows.  So what have the previous rounds of quantitative easing accomplished?  Well, they have driven up the prices of financial assets.  Those that own stocks have done very well the past couple of years.  So who owns stocks?  The wealthy do.  In fact, 82 percent of all individually held stocks are owned by the wealthiest 5 percent of all Americans.  Those that have invested in commodities have also done very nicely in recent years.  We have seen gold, silver, oil and agricultural commodities all do very well.  But that also means that average Americans are paying more for basic necessities such as food and gasoline.  So the first two rounds of quantitative easing made the wealthy even wealthier while causing living standards to fall for all the rest of us.  Is there any reason to believe that QE3 will be any different?

Of course not.

This time the Federal Reserve is focused on buying mortgage-backed securities.  Yes, the same financial garbage that helped cause the last crisis.  The Fed plans to gobble up tens of billions of dollars of that trash every month from now on.

But will the Fed pay true market value for those mortgage-backed securities?  If you believe that, I have a bridge to sell you.

So this is going to be a huge windfall for some people, and that does not include us.

Not a single penny of this 40 billion dollars a month will go directly into our hands.  The theory is that it will “filter down” to us eventually.

But that hasn’t happened with previous rounds of quantitative easing.

So where does the money go?

A recent CNBC article discussed a very interesting report from the Bank of England about the effects of quantitative easing….

It said that the Bank of England’s policies of quantitative easing – similar to the Fed’s – had benefited mainly the wealthy.

Specifically, it said that its QE program had boosted the value of stocks and bonds by 26 percent, or about $970 billion. It said that about 40 percent of those gains went to the richest 5 percent of British households.

Many said the BOE’s easing added to social anger and unrest. Dhaval Joshi, of BCA Research wrote that  “QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it.”


Who benefits from quantitative easing?

According to the Bank of England, it is “mainly the wealthy” who benefit.

As I noted the other day, Donald Trump said essentially the same thing when he told  CNBC the following….

“People like me will benefit from this.”

As I already discussed above, a lot of quantitative easing money gets into the financial markets where it pumps up the prices of financial assets.

But not all of it goes there.

We were told that the whole idea behind quantitative easing was that it was supposed to get banks lending again, but this has not happened.  Instead, banks are sitting on unprecedented amounts of money.  Just look at how the first two rounds of quantitative easing have caused excess reserves being held by banks to explode from close to zero to over 1.5 trillion dollars….

Of course one of the biggest problems is that the Federal Reserve is still paying banks not to lend money.

Yes, you read that correctly.

The Federal Reserve is paying banks to park money with them.  So instead of risking their money by lending it out to us, the banks can just park it at the Fed and make risk-free profits for as long as they want.

Must be nice.

If the Federal Reserve really wanted banks to start lending again, all the Fed has to do is to stop paying banks not to lend money.

But of course if more than 1.5 trillion dollars suddenly started flooding into our economy (especially after you consider the multiplier effect) we would be dealing with nightmarish inflation unlike anything we have ever seen before.

So if you want to know why inflation was not even worse after QE1 and QE2 it is because more than a trillion and a half dollars is being parked with the Fed.

So did QE1 and QE2 do any good for average Americans?

Let’s go to the charts.

This first chart shows that the percentage of working age Americans with a job has stayed extremely flat since the end of the last recession.

Does it look like QE1 and QE2 made a difference to you?  I don’t see any difference….

Okay, but what about new home sales?

Did QE1 and QE2 help them?


But the mainstream media is still buying the baloney the Fed is pushing.

The mainstream media is promising us that home sales will soon rise and that lots of new jobs are on the way.

Sadly, the truth is that things have steadily gotten worse for average Americans over the past 4 years despite all of the money printing the Fed has been doing.  If you doubt this, just read this article.

But this is all that Ben Bernanke seems to have left.  When printing money doesn’t work, his answer is to print even more money.

QE3 is likely to cause agricultural commodities and the price of oil to rise even further.

So unless you can convince your employer to give you a corresponding raise, this is going to mean that your paychecks are not going to go as far as they did before.

And so that means a lower standard of living.

In a recent article, Bruce Krasting issued an ominous warning….

Higher inflation expectations in the US will filter around the globe. Post the extraordinary steps Ben took yesterday, people will be stocking up on “stuff”. Things like rice, flour, cooking oil, soy, wheat and sugar. If you can eat it, buy it now. It will be more expensive in a month. While your at it, fill up the gas tank, the price is going up next week and every week for the next few months.

In addition, the policy of the Federal Reserve of keeping interest rates as low as possible is absolutely crippling the finances of many retirees.  Even the former president of the Federal Reserve Bank of Atlanta, William F. Ford, recognizes this….

One of the overlooked consequences of the Federal Reserve’s recent rounds of monetary stimulus is the adverse impact those policies have had on the interest income of savers. The prolonged and abnormally low interest-rate structure put in place by the Fed has made life particularly difficult for retirees and others who depend on conservative interest-sensitive investments. But the negative effects do not stop there. They spillover into the overall performance of the economy.

Just about everything that the Federal Reserve does these days is bad for ordinary Americans.

But the Fed is not going to stop.  The Fed is addicted to money printing now, and as a recent article by Peter Schiff explained, the Fed is just going to “up the dosage” until it gets what it wants….

The Fed will try to conjure a recovery on the backs of currency debasement. It will not stop or alter from this course. If the economy fails to respond to the drugs, Bernanke will simply up the dosage. In fact, he is so convinced we will remain dependent on quantitative easing that he explicitly said he won’t turn off the spigots even if things noticeably improve.

This is complete and total incompetence by Ben Bernanke and his cohorts over at the Fed.

Economist Marc Faber believes that Ben Bernanke should resign, and I agree with him….

“If I had messed up as badly as Bernanke I would for sure resign. The mandate of the Fed to boost asset prices and thereby create wealth is ludicrous — it doesn’t work that way. It’s a temporary boost followed by a crash.”

And yes, a crash is coming.

Bernanke can try to put it off for a while, but every action he takes is just making the eventual crash even worse.

And some in the financial community clearly recognize this.  For example, credit rating agency Egan-Jones downgraded the credit rating of the United States to AA- on Friday.

The primary reason they gave for the downgrade was QE3.

Ben Bernanke and the Federal Reserve are destroying the U.S. dollar and destroying our financial system for a short-term economic sugar high.

It is utter insanity.

That is why we desperately need to get the American people educated about the Federal Reserve system.  It is at the very heart of our economic problems and yet neither major political party is willing to blame the Fed for the problems that it is causing.

A bunch of unelected bankers that are not accountable to the American people are running our economy into the ground and the American people do not even realize what is happening.

Please share this article with as many people as you can.  Hopefully we can get the American people to understand that more money printing is definitely not the solution to our problems.

  • Gman

    How much money can a front end loader hold? I might have to go and buy one so it can carry my currency when I go buy bread and milk next month.

    • RICH99

      Didn’t you read what he said ? He said QE1 & QE2 didn’t cause inflation because the banks parked their money at the fed…..this time will be no different… 6 months from now you people will be saying what happened to hyper inflation and there is your answer…..there will be no hyper inflation and so the game goes on

    • paul

      Buy some flour now and make your own bread next month.

    • M. Hapney

      It is fun to go purchase something and hand the seller a stack of paper slips though. I always feel like it is robbery.

    • DownWithLibs

      Bread AND milk!!! Whoa there. I think you are dreaming just a bit. One or the other. I will take 2 front end loaders to buy both. 😉

    • KL

      Mike check it out… Here is Peter Schiff’s take on QE3, I think its appropriate to say you and him agree somewhat… click link to read his article.

  • Rufus T Firefly

    Bernake deserves the (non) Nobel Prize for Economics for his putting even more money in the hands of those who truly deserve it: the super rich who are out betters in so many ways, be it Romney or Kerry, Trump or Buffett.
    Time for vast numbers of people to move out of their homes or apartments, and start living like Native Americans did, in tepees, catching wild game, subsitence farming. If you can’t hack it, you don’t deserve it.

  • Pedro

    This is the end, be prepared. STANKOV UNIVERSAL

    • RICH99

      You also obviously didn’t pay attention to the article ….reread why we didn’t have hyper inflation after qe1and qe2

    • Mondobeyondo

      You don’t really want me to post the lyrics to that, do you?

      Oh, what the hell.

      THE END – The Doors (1968)

      This is the end, beautiful friend
      This is the end
      My only friend, the end
      Of all our hopes and plans, the end
      Of everything that stands, the end
      No safety or surprise, the end
      I’ll never look into your eyes again…
      The end…


      • uncurable wound

        No way Mondo…I am the Lizard King!!!!

  • Darren

    Is our Government and the Federal Reserve really naive to believe this is going to work and that it won’t create more problems down the road? The Government would be better off giving everyone who pays taxes a large check and let us stimulate the economy. But instead they would rather help out their banker friends and big corporation pals.

    • paul

      Actually, that’s about what the Hong Kong government did in the 1997 Asian financial crisis. Reduced income tax and increased the tax free amount.
      Only when it didn’t work, the tax rate was increased. Up to 16% for income tax and 17% for profits tax.
      And in 2011 they had so much money, they gave every citizen $6000 and every taxpayer $6000. (Not every taxpayer is a citizen and not every citizen is a taxpayer).

    • DownWithLibs

      Truer words have never been spoken!

  • Rick

    Who am I to believe? I can clearly see signs right in my own town of a coming collapse, but if it’s really true, why doesn’t someone actually do something constructive to stop it? I was doing very well in my own repair business pre 2008. I was able to secure a loan, pay off a high mortgage with a shorter term lower interest rate loan. Then the collapse occurred and I’m barely making ends meet. I know the world economy is nothing more then a house of cards, or a Jenga game, just who is going to pull the wrong card, or peg and bring it all down? When it does, who’s going to stop the banks from taking ALL our property away from us? Are we all going back to shanty towns like in the 30’s?

    • Jewish banker

      Um, technically if the banks can take your property away its still the banks because you havent paid it off yet right?

      They are just taking away stuff from a deadbeat which anyone would do?

    • Mark

      This is a different era and different people than in the 30’s. Even in the 30’s people gamed auctions to return property to farmers and even almost strung up some judges supporting banks. Back then, people had a lot more respect for the law. Respect is earned, not assumed or self-granted. If it gets so bad that almost everyone is going to be thrown in the street, the banks won’t be able to get anyone to take the property. They rely on people like me to do it. Since the legal morons basically keep making rulings that don’t make any reasonable sense at all, they have lost all respect and credibility. The people are going to give them the middle finger; and what are they going to do, go out and enforce it themselves? People will setup provisional governments and run their own show. People who have nothing to lose are the worst people to take on. WE CANNOT FAIL

    • paul

      Aren’t you “someone”. And what are you doing? Elect some millionaire to represent you?


    • 1lostokie

      “who’s going to stop the banks from taking ALL our property away from us?”

      Rick, I have come to the conclusion that is the plan. We are on the verge of a new Dark Age and we will be serfs again. I suspect it won’t matter whether or not you own your property outrightwhen things fall apart. Either the banks or the government will find a way to take it from you “legally”.

      We have failed to hold our elected representatives accountable for the last 100+ years and now we find our country and our freedom (what little we still have) being taken away from us and there isn’t one thing we can do to stop it. Those in power (both parties) have blocked all the entrances and barred the windows to the halls of power. Sure we can still vote, but the candidates put forth by the two major parties are essentially the same. They both are taking us down the same road, one just a little faster than the other. This is true at almost every level of government; local, state, federal. Sure there are a few exceptions to the rule, but only just enough to give us a little hope. In reality they aren’t enough to actually make any kind of difference. Because “We the people” have traded a little liberty for a little security we will have neither. Or, put another way, we are reaping what we have sown.

    • Rick,

      The “why doesn’t someone do something” argument really doesn’t hold water I’m afraid. I am sorry for your run of bad luck, but I am glad you are here getting the truth about what is really going on. If there is one thing you surely must know, it is that we cannot depend on “someone” to do anything at all, we must strive to become self sufficient and depend on ourselves to shape our own future.

      Quite often people ask for solutions, but these solutions are only stop-gaps which people desire to keep on living the way they have always lived. The truth is, there is NO solution. There is no “stopping it.” The train is going over the cliff, the only unknown in the equation is how much track we have left.

      I suggest you prepare, and keep an eye out for more articles on…best of luck.


  • K

    Michael, home run. Can not find a single fact to argue with. Add in the fact, that food and fuel is not in the cost of living index. Now the rich and powerful can finish beating the general population to death. As a Christian, I know one thing for sure. If the rich and powerful, are not brought to justice in this world. They will be brought to justice, in the next.

    • Anon

      Many of those rich and powerful claim to be christians. I dont believe they understand the true meaning of the word christian, judging from their behaviour, but as you say they will find out in the next world.

    • M. Hapney

      That is the purpose of false beliefs scripted by your owners. To pacify you in just that manner. Unfortunately, not true.

      • K

        Anon, you see through the smokescreen. This ability will serve you well, in these times. M. Hapney, I am sorry you feel that way. Many have tried to own me, only God was successful. However, no one who knows me, thinks I am pacified.

  • DiscouragedOne

    It is like watching a really bad movie that you know has a terrible ending, but you can’t change the channel.

    It is amazing to see how deluded so many people are, led as sheep to the slaughter.

    • uncurable wound

      Its like riding a psychotic horse towards a burning Stable!

    • Ken Nohe

      You could not be closer to the truth. A month ago I saw a very interesting movie about this American woman who spent her life trying to give a “human” death to cattle in slaughter houses. After 30 years of efforts, she mostly succeeded. They now proceed quietly to their death. It would be amazing that the likes of Edward Bernay have not done better in twice as much time, when the stakes are so much higher with humans. And sure enough, manipulation is being transformed from art to science. No death yet in developed countries, but who will oppose the elimination of unpatriotic “terrorists” when the time comes?

  • this guy

    To me, your article slightly indicates that we are steadily heading towards becoming a third-world country, is that correct?

    • Michael

      We are on the way. 🙁


    • 1lostokie

      And,that is exactly what our President wants.

  • Mondobeyondo

    It’s during times like these that I wish I were wealthy.

    If I were a rich man (oh stop it! Don’t play that song from “Fiddler on the Roof”), I could trade my cockatiels for a conure They are so cute! Still not enough to buy an African grey parrot (oh, how I’d love to own one of those!!) If only I could find an abandoned one, and give it a forever and evere and ever home.

    The 1 percent can afford to buy macaws.
    Let’s see, what’s the going rate now? $1,275 for a macaw? Yikes!!
    African greys can cost over $1,500 a bird. Double yikes!!
    That’s why I have cockatiels. They’re relatively cheap.

    Anyway, back to our story:
    The rich love macaws, because they have lots of pretty feathers and stuff. Did you know macaws can bite your pinky finger off with their beak? Yes, they can. Cockatiels give you a little pinch. Macaws can cause some serious damage to your fingers.

    Oh, and for that guy who calls me the “Birdman of Alcatraz”….
    ummm.. Shame on you! I’m inviting you to dinner! You’ll be the main course.

  • Rodster

    “Not a single penny of this 40 billion dollars a month will go directly into our hands. The theory is that it will “filter down” to us eventually.”

    I guess DemoCRAPS love trickle down economics too. 😆

  • Bankers Pwn U

    All you guys would be a blast at a party
    maybe we can just set up a group therapy session for all of you?

  • Fine job, Michael. All linked up…

    • Michael

      Thank you for that. 🙂


  • hoser

    Robin Meades House ( Nice to be a MSM Spokesperson):

  • Weimar Wheelbarrow

    Why are the billionaires like Saint Warren Buffet selling off all their stocks that depend on consumer purchasing? Stocks like Johnson and Johnson and Intel.

  • Paladin

    Interesting, doesn’t the purchase of these mortgage backed securities in effect mean that the crown controlled FED then owns the underlying foreclosed real estate?

  • markthetruth

    Here’s a couple reasons Why this will continue because nobody wants to listen to the truth or add up the math just like,

    No one listened to Noah, but in the end he had his Ark and they drowned…..

    1. Company policies have gone from “Customer first to Stock holders first”

    2. Waitress at friendly saying quote ” I can’t vote for Romney i just got Medicaid and don’t want to lose it, i have my new baby take care of.

    3. My Union begs us to vote Democratic.

    4. I see the Market, Media pushing Apple to a pedestal beyond its means being the man behind it , the inventor is gone , people are born inventors not created so the man can not be replaced. They are Leaning on their patents. Which has a huge part in the climb in the S&P ,NASDAQ making the others follow like they have no Limit. And company after company trying to ride on the coat tails of Them. In the end a cell phone to me is for making calls, which any of them could do. So Apples days are numbered. Just like Dell and Cisco.

    5. Million’s of Americans can’t afford food but are buying Iphones and Ipads and forgo food to have one because of the brainwashing of the Media.

    6.Who gives a Crap already of what a Kartrashian Say’s anymore or Some lip sinkers hair do.

    7. So people are leading the life that the media decides we should and they pick and chose what to put on the TV, Radio, Web ,ext. So people not living in the street’s are still under the influence of the media.

    Beware of the one you listen to lives as he preaches …

    the end.

  • KL

    Hey Mike I know this is a little off subject but maybe not. Did you happen to catch the interview on NBC’s Meet The Press’s with the prime minister of Israel, Benjamin Netanyahu? I think this interview is significant because of his comments. It looks like Israel will be at war with Iran either right before the election or shortly after. This will no doubt cause a financial strain on the U.S and the world considering 50% of the worlds crude oil flows through the straits of Hormuz . As I ran threatened to shut it down should Israel or the U.S attack. This would no doubt contribute to the Economic Collapse, if not speed it up immensely. Do you agree? You can read/watch more of that interview and insight on the 12th IMAM by clicking this link. . I will be sure to share your article with my readers as well, good work as usual

  • Fool on The Hill

    Maybe I should have bought some silver instead of a Humper.

  • Fool on The Hill

    Maybe I should have bought some silver instead of a Hummer.

  • Fool on The Hill

    Oh, I did when Ag was six bucks an ounce.

    Oh foolish me.

    • Mondobeyondo

      As Bill Clinton would say, “I feel your pain”.

      Long ago, when I was a teenager (okay, it was 1980-81), silver coins were still readily available, although not in circulation. If only I knew to go to the nearby bank, and ask for some pre-1965 dimes and quarters. Even back then, it was a rare occasion when you could find a pre-’65 dime or quarter in pocket change. But hey, you live and learn. There WAS a huge spike in silver, and especially gold, in the summer and autumn of 1980, if memory serves me right. I didn’t care. I had a girlfriend. Hee!

      It’s much worse now – if you’re a coin collector interested in silver U.S. coinage. I managed to score a 1921 Morgan silver dollar at a swap meet. For $60.00. Ewww. And the ’21 Morgan was one of the highest minted dollar coins (that year saw the highest mintage of the entire Morgan dollar series). And the guy wanted sixty dollars for it?! Yeah, I bought it. Time will tell if I got scammed, or if it was a wise decision.

      • You were scammed/suckered MB.
        I’ve been stocking up on silver over the years and the cheapest/lowest markups I’ve found are at Nothwest territorial mint and APMEX.You can get Morgan dollars for about $35 now.
        I’ve managed several purchases from them at spot price for 90% silver coinage.
        I’ve been buying foreign silver coins lately, common easily recognized ones like the mexican onza and canadian maple leaf coins.
        Good luck.

  • mark

    This will be more like 1979 stagflation only worse. This time wages will not go up as we have to compete with slave wages paid overseas. This time we have a huge debt from government pensions, medicare, social security,student debt and the public debt. We have a war around the bend with Iran soon. The world’s stock of surplus grain is way down. Savers do not earn any interest on their money. Oh and our country is much closer to being the 1984 police state. This really sucks. But on the bright side I always look at my glass as half full. We are well stocked up.

  • CatNap

    I think the central banks are all working together to crash the economies of the first world. If they achieve that-without appearing to be responsible-the people will cheer when the one world currency rides to the rescue.

    These collapses must happen to the USA and Europe in order for them to accept the one world currency (and with it the new one world government, no doubt).

    Enjoy these “good ol’ days” while they’re still here everyone! Stock up on toys for your children and your own little luxuries if you can still afford it. Soon enough, every cent will be going to just surviving.

  • tak

    Good as usual mikey,I love how democracts and gary2s of the world say the rich should pay there fair share of taxes and all the dems give money to gm,aig,and big banks

  • Krfinan

    The only criticism I have with this article is when you say that “neither major political party is willing to blame the Fed for the problems that it is causing” for Ron Paul, a Republican, has called for the ending of the Federal Reserve. He at least wants it audited and those are a couple of reasons why I voted for him in the primary.

  • Man, if I had 10 packs of that money in that picture, I wonder what I would do with it? I wonder if I could handle it?

  • P

    After getting thoroughly educated from Michael’s website and by others, it is completely obvious to me that the Fed’s money-printing and the federal government’s trillion-dollar deficits are papering over another Great Depression and that we are about to double-dip. Baltic Dry does not lie! It right now is about as low as it was after the ’08 crash. A lot of dry bulk carriers are sitting empty because manufacturing in Europe is completely tanked. We’re in trouble.

  • Chris

    Humanity cannot do anything. GIVE UP. Nor can the elites, Illuminati, Jesuits, Freemasons, and puppet presidents of the world. Its goes much much much beyond than anything that was ever conceived on earth.

    Intergalactic war is Imminent, As above So below. Entire galaxy is at stake, 1000’s of civilizations across the galaxy is at stake.

    This coming war could destroy our entire milky way galaxy. Humanity is not the number 1 priority for war preparations right now. All we will see at first is storms, rains, tornadoes, hurricanes, earth quakes and Tsunami’s which are after effects of galactic war.

    Financial collapse, death, hunger, war on earth is least of your worries. Ohh no. You have no idea what kind of beings we are dealing with here…If you for even a second think of anything other than alien existence in this galaxy….you are claimed by the dark forces for EVER.

    QE3 is ZEROOOO in front of what is going on in this universe..There are beings in this universe, that EAT galaxies for a living…food for thought

    • GSOB


      Reality check for ya…,

      Rome had no real argument against Christianity and substituted brutal force for intelligence. It reached the point where Constantine recognized that the empire was suicidal in waging war against its best element, a point his successors usually failed to realize, for they favored humanistic doctrines thinly disguised as Christianity.

      The intellectual leadership had passed into the hands of the Christians, in spite of all persecution, because they alone provided a faith for the future. Not all Rome’s power, nor its attempts first to eliminate the new faith and, second, to use it as social cement, succeeded in deferring the day of bankruptcy and collapse.

      Rome had attempted to substitute power for faith, and it finally had few who trusted in or believed in the ability of Rome’s power to save them. Rome was not so much overthrown but, rather, it crumbled away.

  • Ed_B

    “The Fed plans to gobble up tens of billions of dollars of that trash every month from now on.”

    What else would one expect of the Fed maggots?

    The thing that REALLY gets me is that the local fish wrapper keeps publishing articles and editorials claiming that Bernanke is being “bold”, or “decisive”, or “aggressive” with his QE moves. Hogwash! All the silly sucker is doing is printing more fiat currency. That’s all. As those of us who are not financially illiterate well know, all this does is cheapen the US dollar by dilution. The more trillions of dollars that are printed, the less each of them is worth. This is picking the pockets of savers and anyone who is saving for their retirement. That’s all. It’s not bold, decisive, or aggressive, it’s just plain stupid, IMHO. The last 4 attempts at money printing did not accomplish much of anything other than making the super-rich even richer. If that was the goal then I guess that one could claim they were successful. If I do something to achieve a specific goal and what I am doing is clearly not working, I try something else. Any rational person would. Not our Uncle Ben, though. He doesn’t care how poorly his Keynesian approach to improving the economy actually does as long as he can keep his job. I submit that HIS job will be the only one saved if Obummer is re-elected.

  • TheRandyGuy

    And when the Lib/Dims scream and complain about the “rich getting richer” in 6-9 months, we will be able to tell them “It’s YOUR fault!” Prepare, folks, ’cause BHO is getting a second term and life isn’t hard yet, but it’s gonna be.

  • KC Ted

    Bernanke is not making all of these decisions. He’s just the water boy for the global financial elite.
    We need a president that has the guts to motivate the public to audit/end the Fed.
    That’s not Obama, that’s not Romney. They love the Fed.
    Send as big a message as possible, vote for Gary Johnson. No doubt his chances are slim, but his message is correct.
    Let the establishment know we like his message by sending as big of a voting block his way as possible.

  • VegasBob

    Let me paraphrase Harry S Truman’s commentary on Richard M Nixon, as it applies perfectly to Ben ‘Bernokio’ Bernanke:

    “Ben ‘Bernokio’ Bernanke is a shifty-eyed g*dd*mn liar…who talks out of both sides of his mouth and lies out of both sides too.”

    If sanity were ever to prevail in the collective consciousness of this country, Bernokio would be indicted, tried and convicted for counterfeiting, and his sentence would be carried out as prescribed by the Coinage Act of 1792.

    Unfortunately, Bernokio will never be put in the dock and called upon to defend his crimes. Instead, the sheeple will continue to sit in front of their televisions watching sports and reality TV. I wonder whether the sheeple will even notice when gasoline prices hit $5 a gallon, and food prices increase 20-40% as a direct result of this latest round of Bernokio’s counterfeit electronic money-printing? Or will they just keep stuffing their faces with pizza, potato chips and cola?

  • mountain lady

    Is it not true that the contract for the Federal Reserve to print out money runs out in December of this year. What happens if it is not renewed, or will congress renew it for another 100 years in the dead on night like they did last time. Anyone know anything about this?

  • William

    Ayn Rand tried to warn us that each country is headed to become the next Greece. Argentina is going through a collapse for the *second* time in ten years.

    I just saw a news clip where two female reporters were discussing how Obama’s has insurance companies paying for college students’ health care but Romney’s doesn’t. They just conclude Obama’s plan is better as if it’s common knowledge, with no mention of who pays.

  • the road to default

    this is the end result of a nation that produces nothing, but tries to consume (or kill)everything.a transfer payment based economy has no intrinsic value other than the enoromous dept it creates

  • Ken Nohe

    QE3 “infinity” is a far more dangerous weapon of mass destruction than any missile in the desert. When oil rises another 20% which very few economists doubt it will, there will be turmoil all over the place: “Spring” everyday in the Arab world, “Happy” American commuters filling up their S100 tanks, “Responsible” Greeks doing their duties and tightening their belts another notch, “Ingenious” Mexican farmers wondering how you go from Maize to tortillas while sitting on their idle tractors, “Pleased” Pakistanis sitting in the dark, pleased that the electricity cuts removes the dilemma of having to forbid their daughters to learn to write, “over-joyous” unemployed Chinese workers, occupying their new free time burning Japanese stores. But that’s for 2013. In the meantimes it will have bought an election. Well worth the trouble.

  • Eisenkreutz

    Bernanke is the typical dip**** egghead limousine liberal idiot college professor. Hes spent his entire life filling his head with absolute nonsense penned by other dip******* academics with no real world experience whatsoever. Helicopter Ben will never admit that his money printing thesis is absolute rot and hogwash no matter how many times this Keynesian crap is decisively interdicted. All the Peter Shiffs and Jim Rogers and Gerald Celentes of the world who correctly prognosticate are laughed at, and all the PhD jackasses who have never been right about anything are placed in charged of planning the economy. I swear the American people need to be beaten over their heads with a baseball bat. I sure hope the majority of people starve to death in the collapse. Social darwinism, baby. Im glad to see someone recognized the multiplyer effect finally.

  • McKinley Morganfield

    Uncle Ben & the Banksters are not dumb. They are kicking the can until they run out of road, and they know the road eventually reaches an abyss. They are greedy squirrels hoarding all the nuts and planning their great escape once no more nuts can be shaken from the tree. Its a ‘fire sale’ and only the well connected can enter the store. 3 months, 6 months, 1 year or 3 years reality will come crashing down. We little people have only one option: prep as best as you can, lay low under that ashes, and wait for the time they have spent their swag and their guardians are fleeing to fend for their own families. It is then we, the prepared rise up from the ashes and gradually, through trial and error, take the country back to a republic of limited central government.

  • Gary2

    I guess with the congress republicans doing nothing and blocking the president at every turn at least someone is doing something to help the economy. My home mortgage will be refinanced to an even lower rate now. This is a good thing. Interest on credit cards lower.

  • Gary2

    Maybe this will make so many mad they will finally audit and reform the fed. This may be a good thing if it accomplishes that. Would you not agree Michael?

  • Ralphieboy

    So here’s the deal. We know the golden rule, “he who has the gold, makes the rules”. But once you know the rules they play by, we can also play at their game, and we can prevail.

    Over the last five years, every month I buy a little silver. Where does this extra money come from? Not eating out, not buying a Starbucks, using coupons, paying off and getting rid of debt, walking or bicycling to the store – not driving, and simply not buying more “stuff” and making do with what got. When I buy clothes – I buy quality only – not cheap Walmart stuff.

    Also have been stocking up on foodstuffs, buying in quantity at current prices in anticipation of inflation. Hsve at least a year’s worth of supplies now. To supplement this, have a garden as well.

    From a spiritual side, try daily to walk the walk and keeping it simple. Let the bankers and the Republicrats keep spinning around.

  • paul

    Nice to know. What are you doing against it? Elect some millionaires into concress again, like always?

  • DiscouragedOne:

    Agreed. This is the kind of stuff that makes you want to give up on people sometimes. Lol. I feel sad for my college friends tho. Seriously, it’s bad enough people PAY for college in this “land of prosperity and opportunity”. Lol. I’m in college and I’ve noticed not many students (well there are many, but not enough!) are aware of what’s going on. And THEY WILL be blindsided when things finally become impossible to ignore. Like good luck driving to school. And in a sense they shouldn’t have too because are our beloved adults and parents and the sh*ty politicians they vote for suppose to be taking care of things? YOU KNOW, like they told us as children and in K-12? Is almost everyone a hypocrite now???? This is really pathetic, it’s obvious that this cheap money wont go to the public. Actually, it’s taken from the public since someone will have to pay it back. geez America, the day you lose political (barely any left) and economic freedom (do we have any?), that’s the day you live in a totalitarian state. A state where selfish individuals have centralized power over necessities and have a sh*it load of influence over people. Rule by terror. as seen through out history and other countries today

    Well, i’m getting use to my new “poor man diet”. One-Two meals a day for me. Might stop eating meat all together, might soon be a luxury. Haha, i’m getting a little cynical, i know. But this is just my perspective of this sick comedy that’s our reality. Bernanke and his friends must be feeling great now with all that money they got. Lol. i can manage a laugh for that statement

    Thanks for the awesome article Micheal, as usual! And btw I’m honestly surprised that not too many people were fazed by the LIBOR scandal. Do you think the majority of US citizens are even fazed by anything now? I hope they are.

  • chiller

    A stock market collapse in this economic environment will bring about massive social unrest. I see people at work every day checking their 401k to see how much they win or lose. There is nothing holding up the markets other than the fed. Markets are “fed” nowadays. This is an extremely desperate move by the fed who is in panic mode and you should be too because like discussed here, it hasn’t worked yet and it won’t work now. If ever there was a time to “get ready”….it’s now or never!

  • BFH

    Every year I buy a pair of new bedroom shoes. Last year I paid 7.99, last night I paid 13.99. Inflation is going to be our executioner. I know MANY things could be added to the list of major price increases but, just a simple pair of bedroom slippers is proof that everything is going up and FAST.

  • Richard

    Another fine article, Michael. You are on track to becoming the most prescient writer on the U.S. economic situation in America. Your writing improves by the day. (You might want to watch out about not asking too many questions which you then promptly answer. It’s OK just to “give the answer” and omit the question…)

    • Michael

      But sometimes the question is more important than the answer. 🙂


  • GA

    DWe have been hearing from the mainstream how the economy has been recovering for three years now. If it is recovering, then why do we need more easing? Infinite easing at that. Folks, the writing is on the wall. I agree with Michael, do what you can to help change the situation bit, more important, start prepping now!

  • pete

    Mr. Snyder, you are giving way too much credit to Dr. Bernanke.

    He didn’t prescribe QE III and he isn’t half as dumb as he looks.

    He follows orders, like most of us. He was instructed to open the taps in preparation for funding a war and a military buildup.

    I do not believe that the Ben Bernank wistfully hopes lending will improve and employment picks up. He does what his masters tell him to do.

    Flood the system with money to fund a war, repudiate the debts and we’ll start over afterwards. This doesn’t improve the economy (Bernank knows this)it gets much worse and then it gets bad…then it gets even worse yet.

  • Bob Marshall

    G.Edward Griffin: ” If America is to remain free, its citizens must become far more politically educated than they are at present.” I wonder have many have even bothered to read Ron Paul’s book, END THE FED or G.Edward Griffin’s THE CREATURE FROM JEKYLL ISLAND. Please don’t Judge Andrew P. Napolitanos book, LIES THE GOVERNMENT TOLD YOU because we all know they wouldn’t lie to us. They should at least read Judge Andrew P. Napolitans book, A NATION of Sheep because that is what America is today. We have in America today,too many loyal to the government and not enough loyal to our country. Shortly after the federal reserve was created the national debt was $2.6 Billion. Today, is $16 Trillion and climbing.Thank goodness, most of America rejected Ron Paul’s idea of End the Fed as nonsense. We need to keep on electing politicians. We don’t deserve a statesman running this country. Many wouldn’t know the difference between a statesman and a politician.When it come to ignorant citizens about their countries past history and government, America takes the lead.

  • Bill

    One of the short term benefits of QE3 is that since the Fed will be purchasing mostly “agency” Mortgage-Backed Securities, those who are seeking FHA or DOA loans should see a reduction in their interest rates. Yes, it’ll destroy the economy, but this is potentially a boon for those who are looking to relocate to the country to get away from the “madness” that sure to follow a crash.

    The way it works is that if you qualify for a DOA Rural Development Loan, after you close, the government actually buys the loan from the lender. That loan is bundled into an MBS, which will then be bought by the Fed under QE3. You’ll then have a super-low interest rate and some land to do your prepping.

    Here are the long-term risks:

    1) Hyper-inflation – This is actually a good thing as long as your wages can keep pace with inflation. If you use your farm to grow cash crops, your income will keep pace with commodity prices. If that happens, then you’ll be able to pay off the loan even faster using devalued dollars. The downside risk is if your wages don’t keep pace with inflation, then the government may come and take your small farm.

    2) The Government owns your farm – If you can’t make your payments, technically, the government owns your farm. So what? The government already owns your a$$ so how is this any different? Besides, what’s the government going to do with your 4.5 acre plot in the middle of the boonies? Chances are, if you’re remote enough, they’ll probably let you squat rather than try and put you up in some shantytown at their own expense, but I wouldn’t put it past them, either.

    The bottom line is, any illusions we have about “private property” is a myth under the current administration who has basically burned the Bill of Rights to ashes. Just because you own your property “free and clear”, it won’t stop the government from taking possession of your property by force if they really want it, and won’t matter if you have your own personal arsenal to stop them because their guns will always be bigger than yours. The better plan is to lay low, prep like crazy, and be prepared to bug out if necessary.

  • WarriorClass III

    “This is complete and total incompetence by Ben Bernanke and his cohorts over at the Fed.”

    No, this is Theft. Let’s call it what it is.

  • Quiver

    I had not fully realized the complete incompentence of Benny boy until now. I wonder was he born this incompentent or did he have to work at it.

  • TooLittleTooLate

    Faber is saying this morning to buy gold and put it in another country because our govt. will come for it one day and confiscate it.

    Yes, that may happen, indeed…. it’s happened before with the likes of FDR. May be better off with pre 1964 coins… if you buy any sort of bullion, there are govt. forms you must fill out to make the transaction… you don’t need that for pre 1964 90% silver coins…. you can buy and sell those without big brother knowing.

    Yes, even Rush is saying our entire economy could collapse soon if something isn’t done. The idea of what is about to happen is becomming known to more and more folks as things get worse and worse.

    Of course, most of the public is still asleep and will remain so as long as we have American Idol and Dancing with the stars.

    I know we see folks in Greece rioting in the public square; however, A couple of coworkers recently got back from Europe and spoke with a couple of Greeks ( they weren’t in Greece, however )… they were told of roving gangs looting, robbing and raping… strong arm breakins with thugs looking for anything of value in regular neighborhoods…. So the kinds of things we hear about in a govt. in transition are all happening in Greece… hunger takes over and the thin veil of what is called society comes off and we have hungry animals roving in packs hunting in neighborhoods.

    I have a feeling this is starting in Spain right now…. if it hasn’t already begun in some places…. this is apparently become normal in Greece. We don’t get that news coverage here though, do we???

    How much longer can the rest of this mess dance on the head of a pin?

    I always thought that the world economy may come tumbling down before a war broke out but watching the news over the weekend…. watching the 30+ country protest against the U.S., watching China and Japan square off, watching Israel square off against Iran ( which brings us into the fray )… watching China and Russia bristle over any possible action in Syria……

    While the ECB starts the printing presses and, it sill may not be enough to buy up all the debt that Spain has to turn over this year…. indeed, Spain will probably drag down the Euro regardless of what the ECB does….. I read this today too:

    When Spain topples, I doubt there will be anything that can be done to stop the dominoes…. The only thing I would say is that I’ve been suprised before… they just change all the rules to keep the can in the air but, I’m not sure how many more things they can do at this point to stop what is about to come.

    Meanwhile, we have full scale debasing of our own currency in an open ended fashon that will only cause wide scale poverty for what is left of the middle class….. soon to become the poor.

    We’ll all just suffer and become poor paupers while waiting on the crapstorm that is on the horizon while we watch the gathering clouds.

  • Mumof5

    Hello Mike, I just got the below in an email. Do you think this is true?


    You can’t make this stuff up.
    Read the NY Times Oct 13, 2011
    to verify ownership etc.
    I didn’t really understand all this Occupy Wall Street protesting but
    it is getting clearer now…
    Do you know the park in NYC that the Wall Street protesters are occupying?
    It’s Zuccotti Park.
    Did you know this park is not owned by the city of New York?
    It is owned by Brookfield Properties.
    Brookfield Asset Management received an Obama Department of Energy Loan guarantee of over $160 million within 10 days of approving the take over of the Park. Brookfield is a Canadian company with assets of 70 billion. Google it!
    It is all on their website-
    And Why is the US Taxpayer guaranteeing a loan to a VERY wealthy Canadian company?!?!
    Who was just hired by Brookfield Properties as an attorney?
    Vice President Joe Biden’s son.
    And Who sits on the board of Brookfield Properties?
    Mayor Bloomberg’s live in girlfriend.
    Now, guess what company just received some of the last of the Obama Stimulus $$$$$$$?
    Thaaaaaaaaaaaat’s right… Brookfield Properties.
    Isn’t life great in America!

  • Hey, everyone seems to ask one, to me, stupid question. “Is our Government and the Federal Reserve really naive to believe this is going to work and that it won’t create more problems down the road?” The government know’s what they are doing, they know the outcome. Now we have that common understanding, ask why are they causing the collapse? Are all politician, exception Ron Paul, in the pocket of the federal reserve? By the way its not federal, its a private business that is controlling the printing of our money. The only thing I see is 12/21/2012 is real disaster date, not end of world, and people in upper living just want to have fun till then. If it comes then what is the value of a dollar any damn way?

  • Mike

    I’m not so sure this is as bad as all that. €40bn a month sounds a lot, but in respect to the size of the economy, it’s a drop in the ocean.

  • The ultimate crash is coming because no one has the guts to stop it. Not the politicians. Not the people either. Most of us are busy watching football.

  • Barn cat

    The dollar is about to be destroyed. We’ll have hyperinflation, mass rioting, and mass starvation. Most likely 90% of the US population will die. The fact that some people will get richer from QE3 is the least of my concerns.

  • i’vegivenup

    Want to lower the debt? Here’s a start:

    Abolish the Fed…IRS…DEA. Stop the wars and cut spending to the Military Industrial Complex. Raise taxes on the wealthy.


  • JMorcan

    The worst thing is that even the economic “sugar high” won’t be enjoyed by most of us. Bernanke’s efforts will primarily benefit the same corporations that are shoveling American jobs to China and India. Review any ancient civilation that flourished and then collapsed due to the vagaries of trade and you will see that the West now mirrors such history.

  • In my mind from recent years past there is only one thing proping us all up – OIL.

    The small farmer, the small trucker, the dishwasher and you all depend upon oil related products, namely gasoline and disel. This is stated to rise in consu,mer cost.

    In the last go around at $4.00 a gallon a tractor operator could not break even. Trucks hauling foods could not break even. So the prices were lowered. Now they are back up and it is said it will jump again-much higher.

    Boosting stocks is like fertilizer – good initially but it destroys the soil.

    Yes, stocking up on food will help, but you can never enough for a decade. OT

  • Alvin

    Something smells real bad. Watched a couple of business programs over the weekend( they are all getting soooo stale), and on one of them it was talked about the banks have tons of money from previous QE’s & other programs but are not lending it, so why is more needed ?
    I remember reading about Germany and the pre WWII hyperinflation in my economics classes in college in early 70’s ( very early 70’s) and as I recall there was a delayed reaction to inflation hitting the streets because the government had to print the money, then distribute the money to the banks and then the banks had to distribute the money BY HAND to companies then to the people. This all took time. My guess is that the next hyperinflation will be instant since we are now in the electronic age, it will happen over the weekend and the banks will dump their cash into gold / stocks / whatever and on Monday morning the little guy will be left holding greatly depreciated cash.

  • Seen

    “The money for QE3 is being created out of thin air and this round of quantitative easing is going to be “open-ended” which means that the Federal Reserve is going to keep doing it for as long as they feel like it. But is this really good for the average American on the street? No way.”

    Not just average Americans, it’ll continue to adversely effect average families around the world, and it will adversely impact nations most vulnerable to the currency debasement who are forced to possess large sums of US Dollar surpluses as a result of the US Dollar’s status as the world’s reserve currency. QE3 and open-ended QE effectively accelerates nations’ movement away from the US Dollar, which Russo-Sino are leading the charge in dissolving the US Dollar’s status as world’s reserve currency.

    “Who benefits from quantitative easing?

    According to the Bank of England, it is “mainly the wealthy” who benefit.”

    I don’t recall where I read and heard it, but the USSR would use inflation to protect the rich. Of the reasons, policy makers use inflation to protect the rich is that it effectively disables and destroys the principle mechanism of the class system, capital accumulation. By moving capital accumulation out of reach of most families, those families are also stuck in whatever class; they are with increasing risk of dropping into poverty aka formation of caste system.

    “But will the Fed pay true market value for those mortgage-backed securities? If you believe that, I have a bridge to sell you.”

    It would be along the lines of buying bridges in Israel and Iran respectively. Personally, I think that would be a good metaphor as QE3 essentially accelerates the US Dollar’s erosion as the world’s reserve currency.

    “If the Federal Reserve really wanted banks to start lending again, all the Fed has to do is to stop paying banks not to lend money.

    But of course if more than 1.5 trillion dollars suddenly started flooding into our economy (especially after you consider the multiplier effect) we would be dealing with nightmarish inflation unlike anything we have ever seen before.”

    Unless I’m misplacing my guess, the 1.5 trillion is parked at the Federal Reserve, so it can be transitioned into a different currency likely backed by gold and silver after the Dollar collapses. I’m guessing the Amero, SDR, and/or form of LETS. The Dollar’s collapse is effectively irretrievable at this point, there was a recent ruling that effectively enables banks to seize deposits to off set risk, and inflation among other things capital and savings.

    “This is complete and total incompetence by Ben Bernanke and his cohorts over at the Fed.”

    If the goal is to destroy the US Dollar’s world’s reserve currency status, destroy the class system by using inflation and deflation as mechanisms of class mobility, savings, and deposits, and then install and implement a more free-trade friendly basket of currencies as a currency, Ben Bernanke isn’t incompetent, but it would make him a psychopath and sociopath.

  • Einzelganger

    The comment concerning the Fed paying “market value” for MBSs needs clarification. The Fed will pay the “too big to fails 100 cents on the dollar” for their toxic waste that is worth next to nothing in the open market. This process is a continuation of the AIG bailout that paid well over market value for Credit Default Swaps for MBSs and CDOs. QEs are nothing more than a continuation of the bailout with QE3 a bailout to infinity.

  • Randome-11

    40 billions a month makes 480 billions a year, it is very little compared to the amount of dollars printed in the last several years, right?

    I suspect the real amount is much higher.

  • sharonsj

    I still can’t find anything, either here or in any of the financial blogs, to explain how the Fed buying mortgage-backed securities will create jobs. After all, the explanation of why they are buying that stuff in the first place is because the Fed has to fulfill one of its directives, which is to create jobs.

    Meanwhile, the U.S., along with the rest of the world, is sliding into recession and depression. Been saying all along that you need to stock up on food, water, etc., because it’s not going to get any better (or more affordable).

  • Paul76

    The logical conclusion? If you have any cash, buy something NOW. Don’t wait! Buy food, clothing, bullion, anything you need now or will need soon to be able to be self-sufficient or anything of value that stands the test of time. Don’t save your money to collect that .1% interest–you’re losing your shirt!

    If you’re a “saver” you are now being robbed by the government to pay for their profligate spending.

    You might as well use it while you’ve still got it (before they stealthily rob you blind!).

  • Gary2

    GOP = Grandpa’s Only Party. Clint Eastwood’s act at the convention defined the party perfectly.

    And guess what happens to all old people—they faster than young people. The repubes are toast.

    • Randome-11

      1969 woodstock was a republican convention?

    • Jerry

      Democrats good, republicans bad. lalala. Enjoy banana republic third world status, coming soon to a country very near you…

  • beaner

    The bankster (looters) are in control. Our system has run it’s course. Just like Rome, the haves and have-nots. Our end draws near.

  • Ernie Williams

    The $40 billion in monthly purchases of residential mortgage backed securities is astounding. If the average mortgage in these purchases is $100,000 that means the Federal Reserve will purchase 400,000 mortgages each month. If the average was $200,000 the monthly purchases would be 200,000 mortgages purchased every month. That equals 4.8 million mortgages in the first example and 2.4 million mortgages in the second example. Either way, these figures are incomprehensible because they will be purchased at face value not market value, will be purchased from banks and other financial institutions who will then be relieved from having to write off loses, and the taxpayers and the average U.S. citizen will be stuck with more debt.

  • Winston

    Bad as the inflation will be here as a result of QEinfinity,
    the effects overseas will be devastating.Plunging the third
    world into mass starvation and war.
    The escalated flight from the $ will also cause war under the cloak
    of freeing peoples from their current rulers
    Bernanke should be charged with crimes against humanity.
    We have destroyed ourselves ,and the world with us.

  • Washington

    Soyuz Spacecraft Carrying Russian-US Crew Headed Back to Earth by Mike Wall, 16 September 2012

  • Fed up

    Our government has totally betrayed the American people. Someone called this “congressional malpractice “. I think we should vote out ALL incumbents including the prez. And keep voting them out until they learn they are here to serve the people, Not their party or their special interests.

  • Washington

    Valerie Jarrett Obama’s closest aide is Shirazi

  • John Jackson

    The collapse of the dollar is a forgone conclusion due to the endless money printing of the Fed. However, if everyone is prepared for this and learn how to preserve your assets this can be the opportunity of a lifetime:

  • Mondobeyondo

    Leave it to the current residents of Jackassic Park (slight nod to the Democratic Party and an old Spielberg movie) to screw everything up for the rest of us.

    Ben can start printing up those $1 trillion bills right now. It’ll only take 16 of them to pay off the national debt!

  • skacutter

    Rick: If it comes to total collapse you simply stand by your home with a shotgun in hand. Trust me the banks would not becomming after your home in such an event. What are they going to do…sell it?? and what would they sell it for….bread water and electricity. One posative aspect of total collapse is that your creditors can no longer collect.

    • Alvin

      Soooo if banks no longer keep the paper on home loans but sell them off to Fannie, and Freddie mac etc, is the game plan for the Democraps to flood the market with paper, buy up all the distressed homes, them rent them out to the very people who they pulled out the rug from under and just keep increasing the rent ? That’s what they did with the income tax system since 1913 and that is what they will do with healthcare premiums starting in 2014, force you to buy healthcare then once your in just keep raising the payments. Next up Nationalize the oil & gas so then they will control

      1) You job, by then most small businesses will be gone, so it will be a job at a
      government approved business or nothing ( don’t forget to pay your union dues)
      2) Need a car – buy it from Government Motors
      3)Education – can only get it from a Government school, and collage students only can get a loan from guess who, better want a liberal arts education.
      Students will be forced to join a student union – union dues will be added to loan

      4)Healthcare – guess what
      5)Gas for you government car, $ 10 a gallon if you must from Government control
      local station. Must show photo ID and use ration card. PS- photo ID needed
      to buy anything but not needed to vote.

      The democraps will make the old mining companies of the 30’s look like amateurs
      ( remember I owe my soul to the company store).

      OH yes, religion, well report to the local mosque

  • Mondobeyondo

    Off topic – my hat tip to NFL football:
    (Replace the letter “K” in the word “kick”, with the letter “D”.
    Don’t tell the kids – it’s adult humor.)

    Commentator #1: “Here’s the field goal kicker, attempting to win the game.”
    Commentator #2: “Smith is holding the ball.”
    Commentator #1: “Here comes the kick.”
    Commentator #1: “He kicks the ball!”
    Commentator #2: “The kick is long… the kick is hard!”
    Commentator #1: “And the kick is… GOOOOOOD!!”
    Commentator #2: “Right down the middle!”
    Commentator #1: “I’ve never seen a kick like that!”
    Commentator #2: “Me neither! It’s a game-winner!”

    See you on ESPN… *sigh*

    • Mondobeyondo

      The first letter “K”, not the second.

  • SuperBigHuge

    Inflation can now be seen in luxury items like sports cars, watches, diamonds, etc. The rich are spending this money like crazy and it is reflected in the prices of luxury goods. God help us if any of this money does “trickle down” (hahhaha, I know) to the peasant class. At that point, the price of EVERYTHING will skyrocket.

  • JustanOguy

    And that’s precisely why the OWS / Obama supporters are so stupid.

    They beatch about corporations and the Rich getting Richer but the very people they are supporting are the ones creating the environment to begin with!

  • crumudgeon

    You do not understand. Ben is doing a phenomenal great job. Ben’s job is not to save the economy; it is to save the banks (owners of the Fed — including the Rothschild family).

    He is the employee of the (unknown) cartel that owns the BOG. The BOG is a privately owned corporation that claims to be a government agency. Privately owned corporations do not have to publish any accounting records or profits.

    The BOG is currently making $4 billion EVERY DAY from the auctions of Treasury securities. That profit is hidden by the FRBNY’s exclusive handling of the auction accounts and distributed to the Primary Dealers (owners) disguised as purchases of securities being redeemed. There is NO PUBLIC information on the disbursements of the funds. Ref. FEDERAL RESERVE HEIST, .

    If Ben did not infuse more money into circulation, the banks would have to devalue their assets to market value. They would be bankrupt. Ben is saving the banks. Temporarily.

    It is a repeat of Benjamin Ginsberg’s book, FATAL EMBRACE; “financiers” AND THE STATE.

  • A person would have better results talking to a Jackass then trying to reason with today’s Society.

    • Alvin

      Well no – Isn’t the Jackass the Dempcrap party symbol ? Soooooo the Jackass is today’s society.

  • Ernie Williams

    Ernie Williams
    Your comment is awaiting moderation.
    September 17th, 2012 at 11:09 am · Reply

    Michael, what does “Your comment is awaiting moderation ” mean?
    Ernie Williams

    • Michael


      All comments go into a moderation que so that I can filter out most of the spam, violent comments, overtly racist comments, etc. etc.

      So your comment will get posted but there is always going to be at least a little bit of a delay.


  • Hey Michael. I have noticed that alot of your articles are showing up on the website.Keep it up!

    • Michael

      Yes, Mac is great and I am always honored when he posts one of my articles. 🙂


  • bobbobbob

    u toothless 1 still all of europe has dental ins and u dont HAHAHAHAHA
    at least u dont reproduce– go work 4 BAIN

  • Wow, and on top of all of this our Marxist president will probably get reelected. It’s time for folks to call on God and put their trust in Jesus. He is our only hope!

    • GSOB


      Christians had surrendered the world to the enemy willingly. They were busy asserting that it is a virtue to be unconcerned about the problems of this world.

    • Scooter

      The savior construct was designed as the ultimate twist to evil”s comprehensive plan; that those of greatest moral inclination (Christians for instance) would abdicate their personal responsibility in restraining and confronting evil in lieu of an outside force (a savior), thereby gladly participating in a system that ultimately desires to enslave the entire human race because once the system becomes grotesque enough, someone else (the savior) will clean it up. “Jesus” as he is called now, was not at all who you think he was, but his example and message was nonetheless infinitely important.

      ps. don’t fall for their fake rapture

  • Understand the ‘Endgame’ and you understand the insanity. This is a plan and I might add well executed. Remember the ruling elite need a crash to buy up assets at bargain basement prices. Also, the next step after a worldwide crash is to institute world government, total control by these neo-con luciferians. They truly believe they can usher in a utopian society. And don’t forget there is no sympathy for the average world citizen as the desire it to eliminate 95% of the eaters.

  • dfnj2006

    I knew a doomsday prepper back in 1991 who told me the economy would totally collapse by 2000.

    I have no love for the bankers, but it seems to me things are not really that bad and nothing a good election would not cure. I just don’t buy the premise that if we allow Iran to sell oil in gold or euros it will be the end of the dollar. All we need solve to all our problems is cut military spending to $500 billion and raise taxes on income above $250,000 by 4%. It doesn’t matter how much you pay in taxes what does matter is the purchasing power of your take home pay. The rich get a LOT more richer when their customers have money!!!

    The problem is the red state voters are just so far to the right from the propaganda machine. Did you hear the one Fox news reporting Obama aids were throwing babies up in the air and catching them on bayonets?

    • It’s the 1.3 quadrillion dollars of derivatives that will take the system down. By the way, there are 15 zeros in one quadrillion dollars.
      opensecrets . org tell just how much support each candidate gets from the banking cartel.
      a bit more intense since the money changers-lenders of old

      • slip

        Everything is planned, I agree with you that the derivatives bubble is going to take down the system and with the fiscal cliff coming, I think the entire government will shut down, of course on top of that a major correction in the markets will pop the bond bubble, toss in a major natural disaster or two and then the games begin…order out of ciaos. The “saviors” will be a total controlling government, everything in you life will have the government stamp on it. And with things so bad, people will sign up thinking its for the best…

  • Monnie

    The sociopaths orchestrating this disaster are ruining us deliberately even as they enrich themselves. We’re the useless eaters, and they’ve decided we’re done.

    • slip

      I agree, we are the “eaters” and must be culled, prepare for the most historic end of life and transfer of wealth the world has ever known.

  • GSOB

    Man’s choice is between theonomy and autonomy, God’s law versus self-law. Man, being a sinner, a fallen creature, can only create laws and societies which, in their developed form, simply amplify man’s sin. The result is tyranny, rule without God.

  • GSOB

    The word tyranny comes from the Latin tyrrannus; it means normally rule by an oppressive power, but, very commonly, tyrannies have been popular.
    That is why I think that Obama will be with us another 4.

    Adolf Hitler was clearly a man with a popular following, as was Mussolini, and others as well. A tyranny can be a popularly elected party, or group of men. It can exist without a single tyrant.

    The essence of the tyranny is that no absolute and God-ordained law and justice prevails, only the will of a man, a group or party of men, or a majority or a minority of men.

    The essence of tyranny is that it represents in some form the will of man, not the law of God.
    On the other hand, theonomy means literally the law of God.

    In our time, theonomy represents to all too many people the essence of evil, for the will of man is held to be the source of determination, of law, and morality.

  • curt w

    Bernanke will never admit this but,

    I think he is trying to bring jobs back from overseas by devalueing the dollar.

    If he drastically decreases the value of a dollar then our goods look cheap to other countries that have a stronger currency.

  • Randome-11

    Anyone still think those guys are really overtaxed and contribute positively to the economy?

  • jd


    I really respect people like you, ZeroHedge, Peter Schiff and others who try, week after week after week, to get the disturbing truths out there. But on at least some level, it’s gotta be discouraging to watch this train wreck continue to unfold, day after day, despite many years of warnings from you and many others.

    Can America be saved if America is not willing to save itself? Was the decline of Rome an avalanche, shaped by forces over decades that are now simply to large to surmount.

    It may be time to place greater emphasis on family/self-protection strategies, on the basis that these warnings will do no good and that the collapse is inevitable. Sometimes, true reform and true change takes a crisis.

    • Michael


      I do not have much hope for America on a national level.

      That is why I try to focus on encouraging people to prepare on a family/community level.


      • chunkeroo

        I agree with you Michael – our societies mores have deteriorated to the point of no return. This is one of the best articles I have read recently and I think it explains a lot of how we got to this point:

        But basically it illuminates why morals matter – and as Christians we understand this.

  • Larry

    Gerald Celente: Criminal Banksters Launching New World War.

    This is an hour long video of Gerald Celente and Alex Jones.

    This is the first time I have ever heard Gerald Celente say that his gold won’t be worth anything during the coming World War III. It will be nuclear and wipe out most people on earth.

    • Thanks for the link Larry,disturbing to say the least. I am not sure if you noticed but as Alex Jones was flipping thru his copies of recent stories The “Helicopter Ben” story from this blog was in the stack. Priceless information Micheal Snyder. Keep up the fine work and God bless.

      • Michael,sorry about spelling your name wrong above.:)

  • Mondobeyondo

    If you ever get the feeling that “they” don’t care about us, you are correct. “They” (the powers that be, the Illuminati, the elite, call them what you want) do care about you, insofar as to how much they can lie, cheat, steal, tax, imprison, kill, plunder, etc. from you. Then they’ll toss you to the side of the road and yell, “Have a nice day!” as they run off with your life savings, and your job, and your rights, and everything else you hold near and dear. It sounds downright satanic. AND IT IS!!

  • GA

    Things are getting really bad throughout the world. One little event could spark global war. One small incident could cause global economic collapse. The death spiral is getting tighter and deeper. Prepare now. Get a strategy in place to help ease the succeeding of the coming pain. Learn some basics at Keep reading sites such as this in order to stay informed. Intel will be key. Prepare expeditiously!

  • A.S.

    Bernanke is just following the game plan of what the Bilderbergs talked about this past summer…

  • George

    In my opinion, all of the three Quantitative Easing programs have shared a common goal– deferring the next major economic depression. The Great Depression of 1929 was ushered in by margin calls in the context of a highly leveraged US stock market, as Chairman Bernanke well knows. Today’s derivatives market may be even more highly levered than the stock market of 1929. The prevention of margin calls on collateral in the derivatives market may be the only way to prevent a 1929-style depression. Every step in the QE process can be explained as a fresh attempt to protect the derivatives market from a
    collapse caused by margin calls.

    Consequently, the bank
    bailouts, “collateral transformation” via repurchase agreements, gold acceptance, MBS purchases by the Fed, and the continuation of Operation Twist all make sense if the derivatives market needs fresh AAA collateral to avoid margin calls and a depression-causing, market collapse.

    Tragically, because of decades of financial and fiscal mismanagement,it is now a case of pick your poison. If QE is abandoned, the derivatives market, and then the world economy,will likely collapse in a second Great Depression. If QE is maintained, the US economy will suffer years of stagflation and there will be international currency and trade wars.

  • Washington

    Published on Aug 23, 2012 by William Binney is among a group of N.S.A. whistle-blowers, including Thomas A. Drake, who have each risked everything — their freedom, livelihoods and personal relationships — to warn Americans about the dangers of N.S.A. domestic spying; A top-secret program he says is broadly collecting Americans’ personal data. Read more about N.S.A. domestic spying:

    The dangers of N.S.A. domestic spying

  • jhon


    There is only one thing that can be done to disrupt this plan, it is to call on all who know truth to stop working sell every dollar they have take up arms and say enough is enough. the only reason it has not crashed yet is the elite do not yet have all resourses in place for massive genocide why wait another day. declare a day and change the tide

  • T-Bone

    Keep buying gold and guns. 90% of Americans don’t have a clue about what will happen when the !@#$ hits the fan. Chem-trails,planet X,fema camps, dollar collapse, petrodollar collapse and war with countries going off the petrodollar are future don’t look good.

    • Mondobeyondo

      I read somewhere that the real reason the U.S. invaded Iraq (apart from grabbing an entire country brimming with oil), was that Iraq decided to abandon the U.S. dollar for its international trade in oil. So much for that “weapons of mass destruction” nonsense.

      Iran looks to be doing the same – they’re definitely looking to make agreements with other nations for their petroleum transactions. (But “Iran is making a nuke bomb! We must stop them!!” makes for a nice smokescreen). So, here we go again! The U.S. has this thing with invading little Mideast countries lately. That’s if Israel doesn’t make the first move, and they aren’t afraid to do so. For the U.S., a war with Iran would be for economic advantage. For Israel, it would mean their survival – period.

  • Fred

    This might be the final chapter before the New World Order takes over. Just think the people of this country as well as other countries may witness more turmoil in the world, than all the turmoil that took place in the 20th Century. Having no debt, a small amount of gold and silver may be the only way to survive the economic turmoil in the near future.

  • Carl Jones

    The problem is that CASH is just cash! Everyone knows the US Dollar is worthless and there is a good reason why the banks won`t lend.

    There was a time when lending (debt/money creation) created growth, but this no longer works.

    The other misleading point in this article, is that saying banks have cash, means that banks are sfe places to put your money…they are not safe.

    Banks look safe (safer), because they hold assets and these assets are valued at X. These assets are never tested in the market place. Many say these assets are worth only a few cents on the Dollar. So these banks are bust!!

    Can I go to the bank and say “my childs crayon drawing is worth $2 million…please lend me some money at your usual next to nothing rate…please”!!lol

    And there is another thing, interest rates. Low rates means low or no real growth. So the Fed does not see things getting any better for years.

    I hold the view that the financial collapse was designed and I now hold the view that it was done in such away that it can`t be fixed…until after WW3.

  • FreeMan

    This speaks for itself.. from records of purchases made March 2011 compared to listed prices Sept. 2012, same company, same products, same quantities.
    Barley – up 15% Oats – up 5% Corn Meal – up 8% Pinto Beans – up 25% Small Red Beans – up 28% Small White Beans – up 17% Lentils – up 8% Garbanzo Beans – up 25%. Average % increase in 18 months, 16.375%. Differences in prices increases vary vendor to vendor, for example, Lentils at a local grocery store are up 25%.

    It’s not going to get any better.. buy now, store well, profit later.

  • Peter

    I don`t buy the gold silver thing.
    If deflation hits your gold and silver will go down.
    Oh but wait, the charts say otherwise. You can`t compare the past apples and oranges.
    We had a gold backed dollar, also gold prices were fixed.
    Do you know there is so much of it sitting in vaults around the world if they dump even 10 percent of it, the prices will go through the floor.
    What would you rather have, a pound of gold, or a pound of apples, when you are starving.I do believe in keeping some cash as you never know where this takes us, cash is king, you can buy stuff when every one goes bankrupt.(ok just for now hold non American cash). Trickle down economics is working great, they just forgot to tell you the rich are on the bottom.
    Also number 1 thing you need to have, that saved so many people in the great depression is land. Gives you a place to live and you can grow some food. Think I give up my land for your pound of gold, I don`t think so. Ill just take your gold when you starve to death.

  • Scooter

    Propping up the banks and the economy is purely a stall tactic so that we can reach the grand devastation at the precise sacred mathematical time appointed by TPTB. To suggest that these powers care at all about our so-called wealth is ignorant. This is and has always been a spirtual endeavor for these types. We need to stop analyzing our problems from within the box they created for us.

  • Washington

    QE3 – Pay Attention If You Are in the Real Estate Market Thursday, September 20, 2012 – by Catherine Austin Fitts

  • Yes a crash is coming, QE3 is a huge mistake and is only going to make the dollar that much more worthless. These are very troubling times we live in that is for sure.

  • linda

    Even gold will be worthless until things settle down again. But unlike cash, its value WILL return. So hoarding it is a good idea. You’ll have a base to build on.
    But don’t just buy coins or bars. You’d be amazed at where you can find gold, if you look.
    I’m an avid estate-saler, and I ALWAYS stop to go through the jewelry. I have cashed in over 4 grand this year alone, in scrap gold I pulled from those jewelry boxes, gold items that cost me 50 cents or a buck apiece, tops. Contrary to what you might think, few people are so careful to look at everything.
    Also, much earlier gold jewelry and other items, Victorian, Edwardian, are not marked with the well-known “14K”, they might have older European marks, or none at all. And you can also get lucky and find old mine-cut diamonds in that older stuff too.
    I bought an old belt buckle last year, marked “W. Boehm, 1865”,that’s it, no other marks. I paid 50 cents for the “old brass buckle”, which I knew by feel wasn’t brass. When I got it home, I tested it, 18 karat. Weighs over an ounce.
    A nice return on that 50 cent investment.

Finca Bayano

Panama Relocation Tours



Facebook Twitter More...