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The Federal Reserve Saves The Stock Market?

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The Federal Reserve has saved the stock market!  Well, at least for a day.  That was one heck of a “dead cat bounce” that we saw on Tuesday.  Normally, after the kind of dramatic decline that we saw on Monday there is some sort of a rebound, but on Tuesday the market did not begin to soar until the Federal Reserve pledged to leave interest rates near zero until mid-2013.  Once the Fed made their announcement, the market went haywire.  At one point the Dow was down more than 200 points, but by the end of the day it was up 430 points.  It was a desperate move for the Federal Reserve to pledge not to raise interest rates for the next two years, and it has stabilized financial markets for the moment.  But what is the Fed going to do to save the stock market when it starts crashing next week or next month?  The underlying financial fundamentals continue to get worse and worse.  Europe is a mess, Japan is a mess and the United States is a mess.  The Federal Reserve can try to keep all of the balls in the air for as long as possible, but at some point the juggling act is going to end and the house of cards is going to come crashing down.

This move may calm nerves for a day or two, but there is still a tremendous amount of fear out there at the moment.  Many investors are pouring money into “safe havens” right now.  Huge amounts of cash are being poured into U.S. Treasuries and the price of gold is absolutely soaring.  The price of gold is up about $220 in just the last 30 days alone.

So how high could the price of gold go in the coming months?  Well, analysts at JP Morgan are forecasting that the price of gold could hit $2,500 by the end of this year.

Yes, that is how wild things are becoming.  The Federal Reserve is painting itself into a corner.  Never before has the Fed pledged to leave interest rates near zero for the next two years.  The following is an excerpt from the statement that the Fed released earlier today….

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent.  The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.  The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings.  The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

Needless to say, the rest of the world is not pleased by this nonsense from the Fed.  Yes, the Fed has stabilized financial markets for the moment, but a lot of ill will is being created with the rest of the globe.  The following is what Bruce Krasting had to say about how the rest of the world is going to react to this latest Fed move….

Brazil, Argentina, Korea, Indonesia are going to scream bloody murder over perpetual ZIRP. Russia is likely to get downright ugly with their rhetoric. I wouldn’t be surprised if they took this opportunity to vote with their feet and just abandon the dollar as a reserve holding. China will also make noise. They will make more calls for a new international currency to replace the dollar. The Central bankers in Japan and Switzerland are puking in the trashcan over this. Bernanke is exporting US deflation to them. Shame on the Fed for pursuing Beggar my neighbor policies. They deserve all the global criticism they are about to get.

The Federal Reserve is using up all of the ammunition it has available and the game has barely even begun.

Things are going to get a lot worse.  The U.S national debt continues to pile up at lightning speed.  The debt ceiling deal essentially does nothing to fix our debt problems.  Thousands of businesses and millions of jobs continue to leave the United States.  As a nation, we are constantly becoming poorer and we are constantly getting into more debt.

Meanwhile, Europe is on the verge of a financial meltdown and Japan has a “zombie economy” at this point.

Many fear that we could be on the verge of another major global recession.  The following is how a recent Der Spiegel article described the current global financial situation….

Many economists have been pointing out that last week’s panic resembled the fear that swept financial markets after the collapse of US investment bank Lehman Brothers in September 2008.

Then as now, banks stopped lending each money. Then as now, banks’ cash deposits at the central bank doubled within days. The European Central Bank reacted by assuring banks of unlimited liquidity in the coming months. It was an emergency measure that led to short-term relief but sparked anxious questions among bankers and stock market players. How long can the central bank keep up its market-soothing liquidity operations before it finally loses its credibility, the most important asset of a central bank? Is the financial crisis about to escalate?

In the old days, the U.S. and Europe could just borrow gigantic stacks of cash in order to solve any problems.  But now things are dramatically changing.

China’s official news agency recently stated that the U.S. needs to understand that things are different now….

“The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone”

Not that the U.S. government and the Federal Reserve are going to suddenly give up their old habits.  The U.S. government is addicted to debt and the Fed is addicted to printing money.  When push comes to shove, they are going to resort to their favorite tricks.

But at some point the rest of the world is not going to play along anymore.  When that moment arrives, it is going to be very interesting to see what happens.

Meanwhile, the U.S. economy continues to slowly unravel, and people in this country are getting very angry.  Millions of Americans families are barely scraping by right now.  Most Americans just want someone to “fix” things, but unfortunately there are no easy “fixes” to our financial problems.

As our economic problems grow even worse, frustration inside the United States is going to continue to escalate.  A brand new Rasmussen survey found that only 17 percent of Americans now believe that the U.S. government has the consent of the governed.

That was a brand new all-time low.

Faith in the major institutions of our society is already dangerously low and the economy is not even that bad yet.

As horrible as things are now, the truth is that this is rip-roaring prosperity compared to what is coming.

In the months and years ahead, America is going to be greatly tested.  As the recent London riots have shown, things can spiral out of control very quickly.

When the economy completely collapses will America be able to handle it?

  • Rev. Reggie Jackson

    Sorry the Federal Reserve Bank was responsible for the great Stock Market Crash of 1929 and it will be responsible for the next one next year also. And they are a cartel of International Bankers/Illuminati devils that will collaspe the American Economy; plus the world’s economy, so they can have their One World Luciferic Super 1984 Orwellian nighmarish global empire.

    • Ronnie

      Reggie…big breaths mate…big breaths.

  • Rev. Reggie Jackson

    Will we ever be able to trust Bernacke? Absolutely not. He has been well trained by the Banksters and he follows their every command and is one of their most trusted slaves and puppets. And eventually, Russia and China will probably attack us to get to their long hated enemies; the Banksters/Illuminati devils that have caused both nations tremendous harm by inflicting them with communism and death; with Stalin and Lenin and Mao, being their wicked creation. But the Great God of Heaven will have them all in the great lake of fire and brimstone!!


    As I have said before, the stock market is a rigged rich man’s game where those of no means of wealth need apply. But the asylumites in the ASA are addicted to the something for nothing way of living and that is why you have a situation where if you were to take away wall street’s illegal money counterfeiting schemes the asylum state would essentially have a negative GDP growth rate.

    President George W Obama and both wings of the war party (Dems and Reps) have done what wall street hired them to do. And since the asylumites keep voting for both wings of the war party they have nothing to complain about.

  • VegasBob

    One point that few people ever seem to point out is that ZIRP (zero interest rate policy) is ALWAYS a symptom of a severely sick economy.

    Once at zero, a nation cannot escape. Look at Japan – they’ve been at it for 20 years now with no prosperity in sight.

    What we need is leadership with a vision. Rather than government suppression of interest rates, we need positive real interest rates (i.e., interest rates above the rate of inflation).

    To get there we have to shut down corrupt institutions such as the Federal Reserve, and indict, try, convict and imprison criminals in leadership positions such as Bernanke and Geithner.

    • LittleOleNobody

      “…and indict, try, convict and imprison criminals in leadership positions such as Bernanke and Geithner.”
      They are only messengers.Guilty, non-the-less, but only messengers

  • Zimbabwe USA

    Got plunge protection team?

  • Ricardo

    Hello friends. I have been reading these articles for some time now, and have also been informing myself using other sources. I live in Brazil. First of all I must say the information is very valuable, and I would like to thank you. I understand this ponzi scheme and the fiat money system that creates insane debts is going to fail to some degree at some point. And let me tell you americans – it is about time! The whole world hates this imperialistic nation that invades sovereign nations, massacres entire populations, helps Israel, manipulates every economic and political situation all over the world just so they can make money, in a strategy that is called full spectrum dominance. Iraq’s resistance army calls the americans “ugly traders, and nothing more”. I know that the majority of you guys are very patriotic and proud and full of glorious speeches about american this, american that. And hey, I respect you. I’m just saying, be certain that all the bullying and killing this empire brought upon the planet has generated a huge level of hatred on the lives of too many who had their lives destroyed so you could loot heir land and live your “american way of life”.

    Okay, enough with that.

    About the current situation, I believe the next year or years will be critical for humanity, I just hope we take the opportunity to try something different because this way we have been living and killing each other and the planet for the sake of wealth accumulation clearly will destroy us. However it is very likely that the global elites push on a new and even more enslaving money system to replace the dollar.

    However, I would like to question a bit this “doomsday” saying that goes on here. Yes the situation is critical, but on the other hand there is a certain sadistic thrill people get from these end-of-the-world stories

    • LittleOleNobody

      “The whole world hates this imperialistic nation that invades sovereign nations, massacres entire populations, helps Israel, manipulates every economic and political situation all over the world just so they can make money, in a strategy that is called full spectrum dominance.”

      Do you think that we are patriotic to this corrupt system? The young and easily impressionable are the ones joining the war machine, hood-winked by the media/propaganda arm. We are patriots that love the constitution, not the W.B. or the FED or the over-lords or the war machine or their propaganda or their incessant drug commercials or the pitiful sheeple that follow the policy and sentiment-shaping one-eyed monster.

  • Save the Republic

    “Bye, bye, Miss American pie…”

  • Erik

    I had an eerie feeling last night, that I can’t quite describe. Not like the past, that was more of a positive preparation for a future event, with PMs, firearms, and food. I see the start of this chaos now with a complete realization that it is here. My neighbors who were once asleep, are seeing it. We are now working together to consolidate grain, water purification, and defense. I’ve had some help from LDS friends who are better prepared than any group I’ve seen. It makes me sad as a Christian, how few from the mega church i once attended are taking this seriously.

    • LittleOleNobody

      It is real easy to get caught up in the emotion of the chaos of financial instability. God wants you to keep your head about yourself. Find your solace in the Cleft of the Rock and “fear not.” A lot of you need to do another Bible study on the “fear not’s” in the Good Book. There is a lot of fearmongering here on the internet. Don’t be a Sheeple. Become a thinker and realize that you have limits and your assets and don’t divulge all of either to whoever. There are “plants”, EVERYWHERE!

  • 007

    This statement of Bernanke was very weak. He did not even offer to print any new money. Printing money is the only thing propping up the system. It was absolutely strange to watch the market today. It was almost like the market could not believe what they heard.

    Bernanke offered to leave interest rates low for a long time. What a joke! Like he will ever raise rates until hyper-inflation forces him to anyway. And when inflation does rise, which it will, does anyone expect Bernanke to keep his word.

    Two things can be guaranteed by these low rates. High inflation and unintended bubbles being created in the economy. It is nice that you can invest in gold to protect your savings. However, as gold rises ever higher, don’t underestimate the FED’s ability to screw with the gold market. Eventually, they may even outlaw ownership of it.

    Till then buy, gold, guns and groceries.

    • Dariya

      I absolutely agree with you. There are two ways were left for Brnanke are to print money and/or keep the interst rate low. So far he choose to keep the interst rate low as a minimal risk as he thought. But even this decision will be temporarily for next consecutive events in a future. Finally he will come to the point to print money again even though he does not want to do this. Any way, it will bring an inflation, but in case of critical situation – hyper-inflation. If there is a cancer there is not to much remedies to treat – chemotherapy and/or poison pills. Select, waht is better?
      The problem is american political elites are corrupted and become perverted. They have the not limited power, huge money and strongest army, and all it together is very dangerous. It will not self-treated.

  • Colin

    Americans are intent on voting for people who ultimately do them harm. Tonight, in Wisconsin, the voters voted for the Republican Party by keeping four of the six incumbents in office. The policies enacted by the Republican Party in the state has caused measurable damage against the unions and the workers, and the basic social services of the state. The Democrats who failed to gain seats vowed to fight for workers’ rights and protect those social services under prosecution by Governor Walker, his supporters, and his party.

    Today, Dylan Ratigan had an explosive outburst on his show. Here is the clip:

    Lastly, one of the trade policies that President Obama is working on will create new tax havens for the wealthy in Panama.

    Here is an article on this issue from The Huffington Post:

    As for your question, When the economy completely collapses will America be able to handle it? The government will handle the collapse with an increased police presence and the National Guard on the streets.

    • Colin

      Prosecution is the wrong word. I meant to say persecution.



      Let’s see, by your own admission and the results of the elections obviously, Wisconsin asylumites kept in 4 of the 6 incumbents who are hell bent on their economic, political, and social destruction. And we should care about these people, WHY?????????????

  • Allan Stein


  • mondobeyondo

    Much like the ongoing riots in London… the U.S. economy is a powder keg looking for a spark.

    Let’s hope and pray it never catches fire.

  • mondobeyondo

    Time to fire up the old vinyl record player, and play a classic tune. It’s called “Keynesian Economic Bop”. It’s an old song, but the updated lyrics go something like this…

    “Take out a loan, charge your Visa with glee,
    Or how about a second mortgage? Soon you’ll see,
    That you’ll spend my way to prosperity! Yeah, yeah!”
    (Repeat about 25 or 30 times)

    But, it’s not a new song. It’s been sung lots of times. It hits the top of the charts, and then gradually fades away. Last time I heard that song (it was sung by this band called the Realtors and Home Mortgage Companies) was around 2004 or 2005. And look what happened afterwards.

    (Lady Gaga, eat your heart out! Hee hee!)

    • Highspeed

      Don’t quit your day job to becoma a comedian. I mean I did smile but, if I had to sit with you in a bunker eating beans and rice, your humor might drive me crazy.

  • MDK

    Big money shorted the market on Monday and bought back in on Tuesday so they can short again very soon.

    Do not be deceived.

    The powers that be are making money on the fall of the stock market just as much if not more than on the rise of the market.

    The big money has been licking their chops.

    They knew all day long they were going to buy once Bernanke spoke. The big money was waiting for Bernanke to speak because they knew all the little guys would jump in on any news, which in turn created a massive sized snowball effect. Bernanke basically said nothing positive at all. Even keeping interest rates low for two years is bad news.

    Watch for the market to continue to drop substantially over the next few weeks.

    God is in control. Trust in Him.

  • Guns, gold and a get away plan……..riots coming to a city near you soon.

  • The Tyranny of Relativism

    The Stock Market is going to crash Again.

    They will get us into another World War like they did in 1938.

    Will we be fighting Russia? China? or some combination of nations?

    Dr. Marc Faber has said the same thing–We will come out of this economic nightmare via the nightmare of War.

    • Highspeed

      This war will be fought on American soil. beans, bullets, band-aids and a bunker might be wise.

  • shypuffadder

    As usual, the “fix” has propped up Wall Street. Wall Street has been guaranteed a near zero interest rate for two years. Main Street didn’t get that wonderful deal. Our interest rates are going to soar. Wall Street has just been given the government’s blessing to continue gambling with our money. Its a great deal: they keep the profit (as usual), and we share the losses (as usual). Just another hit that has been rammed down our throats. But there is an end in sight – when OUR pockets and OUR retirements have been emptied.

  • r.bitting


  • Otown Right Guy

    “But what is the Fed going to do to save the stock market when it starts crashing next week or next month?”

    Michael, you already know that answer, QE3, Q4, … QEn. An infinite series of monetary expansion. Infinite until its not anymore. All of this is bullish for gold, of course. Yet there are still gold haters out there. “Gold is a bubble” they shout. Beware of gold haters. People that hate gold, hate truth. And people that hate truth are evil.

    • Otown Right Guy

      France banks have turned to merde. That “help” Fed from the Fed lasted all of 1 day. The incredible thing is that there are still buyers for US govt debt. Are these buyers on crack? Or is this just the Fed buying?

      • Zedge Hero

        I couldn’t agree any more Otown Right Guy, I have created a weekly newscast against the united corporate banking cartel.

      • 007

        The Fed has bought 90% of our debt this year,by their own admission. They claim they are not buying the new debt but I am very doubtful. According to the FED the debt is being bought by mysterious countries and buyers.

        If you think about it, if the FED chose to print money and keep it off the books, who would know? They could buy whatever assets they want or channel it to third parties to do it’s bidding. I believe they are up to their neck in this dirty, off book dealing.

  • Macnasty

    When the economy completely collapses will America be able to handle it?

    Way different generation now, then back in the early thirties, I may be wrong but when it happens it is going to be very ugly and people will be very ugly to one another and the M@%on in the White place will dance a jig and smile with glee as it all falls down.

  • Harold Crews

    No, ‘America’ can’t handle it because there is no such thing as ‘America’. There is a fundamental divide in the United States on human nature and the purpose of government. This divide has been papered over by a false prosperity and the federal government buying off a sufficient number of interest groups. That will come to an end and ‘America’ will fragment and authentic nations will reassert themselves.

  • What the Fed is doing is tantamount to giving CPR to a long dead person.

    Wake up now and get ready!

  • Luis

    “The Federal Reserve has saved the stock market! Well, at least for a day. That was one heck of a “dead cat bounce” that we saw on Tuesday.”

    Looked like the work of the Plunge Protection Team to me…

  • knightowl77

    While I agree, that you are right (as you always are Sir), I have been expecting this collapse on and off since 2009. Everytime I get to the point where I believe that we cannot possibly go on, we seem to recover and kick the can a little farther down the road…I appreciate the extra time to prepare, really. However, the longer we extend and pretend, the hole we are in gets deeper and wider that we have to climb out of.

    Taxing the rich more will not help. The top 1% already pays 38% of the income tax. The top 10% of income earners already pays 70% of the tax bill. ENOUGH. Cut Federal spending across the board.

  • Bring it on. It’s evident that a major crash is what it’s going to take to make the corrupt fools in Washington really change their ways. A major crash seems to be the only thing that will get the American people up in arms, so bring it on. It’s time for the Second American Revolution.

  • Cheryl

    There’s no QE3 offered and they’re just going to let it all fall down.

  • callmecordelia1

    It’s interesting– I’ve been reading your blog for quite a while, and I’ve seen something coming for even longer (years). For a while I felt a little bit like “bring it on”. It’s going to collapse sometime, so we might as well get it over with and start putting the pieces back together. On Monday, for the very first time in all of my “prepping” years, I had the most sickening feeling. I couldn’t sleep that night. I woke up feeling depressed and sick with the realization that my children (ages 4-11) won’t get the same America I grew up with. What is in store for them? It makes me really, really sad. For the first time, I feel desperate for someone to find a fix to this mess, even though I know it’s wishful thinking. I think I’m as prepared as I can be. I have lots of food and water stored. I’m self-employed, I have limited debt, etc. But I think even that is not “prepared enough” for what is coming. Now I’m just praying for miracles.

    On that note– Hope you’re getting settled in your new place. Thanks for the latest articles!

    • Michael

      I can definitely identify with what you are feeling. Thank you for sharing that.

      And hopefully life will be back to “normal” for me and my wife by next week. 🙂


    • Save the Republic

      You aren’t alone. I feel the same way. I took a vacation last month with my young children, spending a significant amount of money I probably shouldn’t have in light of the situation. The reason I did so was because I strongly believe it was going to be the last real opportunity to have fun and create memories together of good times, for a long time to come. I believe what has begun these last couple of weeks is going to begin to escalate at a more rapid pace, and by next summer we will all be living like scavengers, scrounging around for any and every opportunity just to survive. Sorry if it doesn’t sound optimistic, but better to be real than real dead, so now I expect nothing but the business of survival. Had I known the sorry state of our country years ago, I probably wouldn’t have wanted to have children, for their sake. Unfortunately, this whole scenario has been orchestrated by evil, greedy people who will do anything to serve themselves, even destroy an entire country. All the stuff they made you learn in the public schools to be obedient and productive little servants of their system, all the while omitting the important information, like the teachings of the founding fathers, the constitution, and never letting down your guard when it comes to keeping government from overstepping its authority. I know a lot of people are saying it’s our own fault, but we were unknowingly sidetracked by lack of information, as we were educated by a system that was already corrupt before we could tell the difference. What I want to know is…why the hell didn’t anybody say or do anything in 1913?

    • DownWithLibs

      I too have felt a lowering black cloud. I too have my moments of bravado and depression. Thank God I don’t have kids.

  • Patriot alice

    Next he’ll promise to keep interest rates down til 2015, and the market will jump with joy, like a bunch of idiots…..He knows QE3 is like pushing on a string….He just wants to bail out his friends on Wall Street, because those “Investors”,”Welfare, Leaches” can’t make a living on their own merit, wisdom, education, etc….


    The price of a Big Mac is now $17.19 in Zurich!!!!

  • kalord In the dream entitled “entertainment vs. truth”, God gives warning about new upcoming monetary laws that are about to be enacted. Pleassssse read this dream on this website. God is warning us about what is about to happen!!!!

  • HerrLT

    “When the economy completely collapses will America be able to handle it?”


    Regretfully, the good ol’ days are over and not coming back. We’ve reached our apex as a nation – financially,militarily and socially we are spent. The moral decay alone is reason enough for a skeptical outlook. Just do what I did on Monday: relax,make a milkshake, turn on CNBC and watch it unravel because harsh times are coming.

  • Dr. Nancy

    I’m telling everyone I know to do 2 things:

    (1.) Store up food

    (2.) Review the info on this site
    I found put together
    by a millionaire.

    Things will get worse –this can help anyone prepare for an uncertain future.

    Here it is-

    How to Profit like the Ultra-Rich in Times of Economic Chaos

    Complimentary Video here-

    • Dariya

      This video “How I’ve Made A 400%+ Return Since 2008 Using The Black-Box Investment Strategies Of The Rich…”

      I’m thinking that this nice guy (in video) does not know the laws of physics:”Energy never appears from nowhere or disappears into nothingness but only converted from one form to another”. So based on this low, if he made money quickly and tricky does it mean that the other guy, may be your friend, lost them. Then does whom this movie for? About my quick success or about failure of other guy, may be my friend? When we start to go on someone easy successful way, we don’t want to see us in failure, we see that other must fail, but not us, and we are going into the trap of our thoughts. When we think like this all togather, we get our society problems and they come out from this root-mistake – human to human is wolf. Real good things never come easy.

  • JackieR

    Could the bounce back of the stock market yesterday been from a large infusion of cash from the FED? QE3?

  • Golden Child

    Sadly, the richest one percent of the population is living lavishly off of the demise of America and the global economic collapse. The Federal Reserve stands for everything our founding forefathers loathed. Thomas Jefferson warned that the creation of a central bank would ultimately harm the citizens of the United States. Flash forward to 2011 and he was dead right. Watch this highly entertaining informative cartoon that breaks down how the Federal Reserve is enslaving everyday Americans and how they are robbing our country of its wealth and vitality:

  • mondobeyondo

    The Dow Jones (as well as other markets around the world) has resumed its nosedive today – right now it’s over 400 points down. *sigh* This isn’t over, not by a long shot.

    In the meantime, there’s always that old standby… the Missing Blonde Girl of the Week!

    This week’s MBG is Robin Gardner, a 35 year old dental assistant from Virginia. And yes, she really is blonde. She’s been missing from Aruba for nearly a week now, and a massive search is under way. Is this Natalee Holloway Part 2?

    Okay, now back to financial news…

  • William

    The US Constitution requires the US Congress to create money and to regulate its value. The legislation that created the FED in 1913 was ILLEGAL. Wilson was BLACKMAILED into signing the legislation into law by people who had evidence of an adulterous relationship by Wilson. WHY has the FED existed for almost 100 years??? Because the very same criminals who have America by the throat today also ran America in 1913. JFK recognized the need to eliminate the FED. What did that get him?? And, finally Andrew Jackson was able to run the creators of the FED OUT of America when he was President….that lasted also about 100 years. But, WHO cares about the US Constitution…..Bush certainly did NOT.

    • A.S.

      Makes me feel powerless, being a little no one. If only I were rich and powerful, I would infiltrate the Federal Reserve, Banksters, Corporatsters (is this even a word), Trilateral Commission, Bilderbergs, etc., and destroy them from inside: destroy their wealth and power, humiliate them, degrade them, makes ALL of them penniless.

      They are the vermin of the earth and they should be the first ones to go when Agenda 21 comes; actually the whole world will be better off if we just eliminate 1% of the world population: the greedy, selfish, inhumane elite.

  • Rhinehart Fox

    The article quotes “A brand new Rasmussen survey found that only 17 percent of Americans now believe that the U.S. government has the consent of the governed.” I think that is pretty accurate when agencies are allowed to set policies that never receive congressional approval, when major expansions in government (health care) are disapproved by a majority of Americans and when there is more effort made in courting the votes of those receiving government assistance than those of us who work and pay taxes. If the founding fathers were still alive, the revolution would have been underway a long time ago.

    I believe that the biggest evidence of all is that those of us who understand the big picture have already given up hope of a fix and have shifted our efforts into preparing for the collapse. There are many more of us than anyone knows. Those who continue to procrastinate are playing with matches in a dynamite factory.

  • Dr. Chicago

    Mr. Bernake (aka FedMan) has agreed to leave interest rates frozen until 2013. He can maintain his promises under certain conditions (like his boss staying his boss). But there are certain conditions that he cannot control:

    A). Fedman gets fired. (We gotta blame someoone for this mess).

    B). Fedman has a heartattack from the stress.

    C). Rampant inflation. What if we see double digit inflation by year end or in the first quarter of 2012? Do you think FedMan will remember the promises of August 2011? Or will he use that promise to keep rates low in spite of inflation because they don’t want to pay more interest on our debt….

    D). Nobody wants US treasuries. Will they raise interest rates if they need to do so in order to get buyers for debt? I bet you they will!

    There are probably scores of scenarios that I missed that could cause them to raise the rate. All it really boils down to is an empty promise that the Wall Street Jackals used to steal more money. Cheers!

    • 99er

      Excellent. And all they’ll have to do to excuse their reneging will be to pick one of the above “unknown unknowns” to justify raising rates.

  • Nostradamus

    A job interview:

    Employer: Please state your name, education and experience.

    Applicant: My name is Ben, I am educated in some kind of sick pseudo science called economics, and I have absolutely no experience in industry.

    Employer: Excellent! The opening is to head up the Fed. It pays well, but the job is a great challenge. You have to do nothing, say nothing, even know nothing, but appears to be in charge of everything.

    Applicant: I am confident I can do this job, and do it well. I have spent my entire life preparing for it. As you can see in my resume, it has only one paragraph which says basically nothing.

    Employer: But there is one little catch in this job. When everybody asks you to print money, you must simply say ‘how much’ and know how to use a computer keyboard to enter that number.

    Applicant: I can jump when ordered but I don’t know how to use a computer like my 10 year old grandson can.

    Employer: Hired!! Your grandson that is.

    Applicant: This is ridiculous. If you can hire a 10 year old to head up the Fed, you should foreclose this stupid shop.

    Employer: Don’t worry. It will be foreclosed by rioters as soon as 20,000,000,000,000 is typed.

  • Pauly

    I don’t think anything the fed can do will help. Except nationalization and getting rid of the IRS. That’s not going to happen, so we are f-cked.

  • El Pollo de Oro

    Michael T. Snyder writes: “As the recent London riots have shown, things can spiral out of control very quickly.” Yes, they certainly can. After the riots occurred in London, it wasn’t long before the rioting spread to parts of Manchester, Liverpool, Birmingham and other cities in the UK. And it’s only a matter of time until widespread rioting and civil unrest plagues The Banana Republic of America, formerly the USA. Millions of formerly middle class Americans have become the neo-poor; their suffering is tremendous, and inevitably, all this suffering and misery will lead to an orgy of violence. Some will riot; others will turn to the sort of horrific crime that plagues a lot of Third World countries (kidnapping, carjacking, violent home invasions).

    “When people lose everything and have nothing left to lose, they lose it.”—Gerald Celente

    “When the money stops flowing down to Main Street, the blood begins to flow on the streets. And the money is not flowing down.” —Gerald Celente

    “A societal breakdown is coming in this country. You know it as well as I do.”—Mike Malloy

    “When this thing collapses, you won’t be able to get your money out of the bank. They’re gonna do it like they do in every Third World country. Our forecast is for a bank holiday and a formal devaluing of the dollar.” —Gerald Celente

    “You’re going to start seeing people being kidnapped in this country like they do in other underdeveloping nations. It’s going to be very violent in America.”—Gerald Celente

    Get ready for the blood to flow like rivers through the streets of American cities. Take a good look at Ciudad Juarez, Port Moresby or Caracas; that’s what BRA cities are going to be like in the future. It won’t be pretty. The Banana Republic of America is already a Third World hellhole, but the worst is yet to come. Michael T. Snyder is absolutely right when he says: “As horrible as things are now, the truth is that this is rip-roaring prosperity compared to what is coming.”

    God help The Banana Republic of America, collapsing empire of the Third World. We are so screwed.

  • Grumpy

    The Fed hasn’t saved anything, nor will they – they are the root of the problem. The sharp drops in equities are a result of several factors (the S&P downgrade being the least of them – look to the TBTF banks in the US and Europe for culprits), and the artificial gains made in the indices due to QE1, QE Lite, and QEII have all but evaporated over the last week.

    And, to answer your question, no, the vast majority of ‘mercans won’t be able to handle it. They’ll be looking for a solution and a handout (during commercial breaks, of course) from the same people and organizations that caused this entire financial mess in the first place . Well, don’t bother – you’ve already heard the response from your ‘saviors’:

    “Eat your peas.”

  • DownWithLibs

    Market is way down, Gold over $1800.00/oz., silver clearly being suppressed to prop up the worthless dollar. What is left to say? They can say whatever they want, but the truth will always find a route to the surface. Always will.

  • bankrupt nation

    as long as unemployment keeps soaring, really doesn’t matter what the fed or dc does, it’s like tryin to drive a car on 4 flat tires, don’t matter how much gas u put in, ain’t going far. unless u address sky rocketing unemployment, the rest is just window dressing

  • DownWithLibs

    Market is way down, Gold over $1800.00/oz., silver clearly being suppressed to prop up the worthless dollar. What is left to say? They can say whatever they want, but the truth will always find a route to the surface. Always will!

    • DownWithLibs

      Sorry to repeat…problems with my server.

  • sanityjones

    When the economy completely collapses will America be able to handle it?

    No. We are too far removed from the reality that 85% of the world lives in (the un/under developed nations) and are no longer able to survive outside this bubble world we have created. Americans have been domesticated, institutionalized, and are quite comfortable in this arrangement.


    Of course “Helicopter” Ben Bernanke attempted to save the stock market. Another 519 point drop today in the DOW, AWESOME!! Now is the time for people to understand that world society is a rich man’s club, and guess what? You commoners aint in it! Everywhere you look, MSNBC’s lineup of lapdog tv shows such as Morning Joe with Mika “I’m a braindead Democrat”
    Brzezinski and Joe “idiot rightwinger” Scarborough, Hardball, Rachel Maddow, Ed Schultz, and The Last Word with Lawrence O’Donnell, to CNN, to Faux News, media is slavish to corporate and government power, and now people should no longer be under the delusion of representative government and should now resign themselves to a new form of

  • Neo

    I’ve always felt the rubber would meet the road once Gold started going parabolic like it did in late 1981 early 1982 before Volcker returned sound money to the USD with 22%. Problem is our debt isn’t only $1 trillion anymore and the U.S. is in the early stages of a Depression. Well Gold is now in its parabolic phase as of last week and no amount of talking it down or raising margin calls is going to stop it and the only thing that will isn’t possible. That just leaves a systemic failure of the USD and fiat currencies with it and one massive reset and repudiation of debt. In other words, what you’ve all been waiting for is within sight now as well as the outcome.

  • Benji K

    I guess you can “Hope & Change” in one hand and crap in the other, see which one fills up first……

  • Stolengoat

    29 years old, 1 month old lil girl, selling the crap outta ADT security systems to scared folks just like me. Saving my measley greenbacks for an AR and a basement full of green bean. How the phuck did we get here??? How is it possible that a small town kid like me, with just a high school education can see the writing on the wall but so many around me just swallow the piles of shat the fat cats on the hill and in the media dish out. I got news for all of us. This ain’t the country my grandpa fought and toiled his life away to pass on. We are sick and the colon cleansing is about to begin. I asked my mama what she wanted for christmas, she said “Good will on earth and peace for all men” I handed her a Bushmaster AR-15 told her “It was a do it your self project.”

  • SerbianRevenger

    Only thing America has that is still functional, in her dying system, is her army, and like an dying beast it will turn to it last straw, it last resource, until they drain that out and of course live a mess behind.


    *** ***

  • The Federal Reserve is bankrupting the nation… paper money will become worthless… you have to prepare yourself and your family for the financial crisis ahead.

    (click on my profile name to go to my blog to see full video)

    This is a must see video… you have you prepare yourself and your loved ones before it’s too late.

    I’m posting my blog video here because I need to reach out to the real people who are effected by the Global Economic Crisis. Please pass this video on.

  • Title: PSM Holdings CEO Ron Hanna discusses the recent decision to acquire Brookside Mortgage
    Content: In a recent video on, PSM Holdings CEO Ron Hanna discussed the recent decision to acquire Brookside mortgage and discussed the effect that they expect this acquisition to have. The video can be seen here:

  • It looks as if the federal reserve will have to come to the aid of all the countries in the european union that are now on the brink of failing. Great blog about government takeover of the economy.

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