It has been called “Quantitative Easing” instead of money printing to hide the fact from the American people who may not look into what the complex term “Quantitative Easing” means.
If they did, they would realize it is plain old money printing. The money printing scheme is called “QE1, QE2, QE3, QE4… ”
The U.S. has printed over 4 Trillion Dollars in the Last 5 Years and calls it QE, for Quantitative Easing. That is government-speak for “printing money”.
They don’t want to call it what it is, because of the obviously dangerous precedents history has set.
Although the Fed is “tapering” their printing, down to $35 Billion a month at the present time, they are still printing about 1/2 a TRILLION a year – and we already have 4 Trillion printed in the last 5 years.
There are differing viewpoints on if the Fed will completely get out of the money printing business, or ramp it up. Some economists say that if the economy goes downhill, or even crashes, at the end of the taper, Janet Yellen, the Fed Chairman, may decide to “save the economy” and start the printing press up again.
We don’t know what the Fed will do, as their actions in the last 5 years have been unbelievable: when no country wanted to buy our U.S. Treasuries,then the Fed did! Then they went on a trillion dollar money printing spree. Who knows what they will do next?
So far, inflation has shown up in consumer food prices, with a food increase the most in 3 years, for the first quarter of this year. Yet, food and gas prices aren’t included in the government official inflation number, the CPI, so they report we hover around 2% inflation.
So, what is happening, is that the trillions of dollars of artificial money, back-by-nothing, is starting to work it’s way through our huge financial system.
It’s showing up in food, yet the government doesn’t and won’t acknowledge it. They won’t ever acknowledge it, because food isn’t included in the CPI. So expect food prices to continue to rise, and for the government to keep on saying inflation is low and the economy is growing, and not even mention food prices.
We may even go into hyperinflation, and it will only be recognized by the consumer. Because what matters to the Federal Reserve is if the banks are able to remain solvent. The American people-they are simply background noise, a distraction. We no longer matter, except to pose a threat to the ever- growing, irresponsible government. Didn’t think this day would come in this country? Me neither, but here we are.
“The historical culprit generally has been the use of fiat currencies — currencies with no asset backing such as gold — and the resulting massive printing of currency that the issuing authority needed to support its system, when it did not have the ability, otherwise, to raise enough money for its perceived needs, through taxes or other means.”
Money Printing Always Leads to Currency Destruction
Germany lost WWI and had to pay reparations in the 1920s, but didn’t have enough money to do so. So they printed it, and in a few years it led to skyrocketing hyperinflation. Prices doubled every 49 hours. It got so bad that people just burned the money to keep warm and the money became completely worthless.This set the stage for Hitler to offer a solution to their desperation, and heralded in his reign. Do we really want that to happen HERE?Yet, that is the choice our leaders have chosen for us. I don’t remember voting for printing trillions of dollars, do you?Rates of inflation of several hundred percent per month are often seen. Extreme examples include:
- Germany in 1923 when the rate of inflation hit 3.25 × 106 percent per month (prices double every 49 hours).
- Greece during its occupation by German troops (1941-1944) with 8.55 × 109 percent per month (prices double every 28 hours).
- Hungary after the end of World War II at 4.19 × 1016 percent per month (prices double every 15 hours).
- Yugoslavia suffered 5 × 1015 percent inflation per month (prices double every 16 hours) between October 1, 1993 and January 24, 1994.
- More recently, Zimbabwe hit 2,049% inflation in 2007.
According to John Williams of ShadowStats.com, relating money printing to the US economy:
“The U.S. economy is in an intensifying inflationary recession that eventually will evolve into a hyperinflationary great depression. Hyperinflation could be experienced ..no more than a decade [2020] down the road.
The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, and gross mismanagement.
The U.S. has no way of avoiding a financial Armageddon. Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover their obligations.
The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money.
With the creation of massive amounts of new fiat (not backed by gold) dollars will come the eventual complete collapse of the value of the U.S. dollar and related dollar-denominated paper assets.
In terms of hyperinflation, there have been a variety of definitions used over time.”
“The circumstance envisioned ahead is not one of
double- or triple- digit annual inflation,
but more along the lines of
seven- to 10-digit inflation seen in other circumstances
during the last century.”
“Under such circumstances, the currency in question becomes worthless, as seen in Germany (Weimar Republic) in the early 1920s, in Hungary after World War II and in the dismembered Yugoslavia of the early 1990s.
The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis.
In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than for Social Security and Medicare obligations, the government still would be showing an annual deficit.
Financial Hedges. During these times, safety and liquidity remain key concerns for investments, as investors look to preserve their assets and wealth through what are going to be close to the most difficult of times.
In such a circumstance, gold and silver would be primary hedging tools that would retain real value and also be portable in the event of possible civil turmoil. Also, at some point, the failure of the world’s primary reserve currency will lead to the structuring of a new global currency system. Gold and silver will most likely be part of the new system, structured in there in an effort to sell the system to the public.”
The consensus, however, is the Fed doesn’t have any more tricks left in their bag, except money printing. That will only further exacerbate inflation. It will prove to be a frightening next few years, just to see how this plays out.
That’s why it’s important to buy gold. With Karatbars, it is affordable in small currency-sized grams. If you refer a friend, you make money. Consider buying one gram a month and you’ll be on your way to protecting your money.
Article authored by Carol Serpa. You can find the original story right here.