Ron Paul was saying that has become the new logic. Pump as much money into the economy as they can, so they will trigger a 10x-20x inflation in a few years, and then the current debt will be easier to pay off.

The great dollar gamble

Going for broke

Since I don't have clairvoyance I can't say that I know exactly what is going on, but it would seem that either it has been deliberate attempt to destroy the dollar and destroy US economy, or this fiat currency has run its course and is on the verge of collapse and no one really knows what is to be done. It more sounds like the latter.

Back in October the Treasury said the toxic mortgages were the culprit and that they totaled 500 Billion. So they finally got 750 Billion, which they said would be more than enough. After blowing 300 Billion without a dime going to the mortgages, they said the plan to buy them back wasn't going to work, and they scrapped it. Now yesterday, they announced they were going to buy the toxic mortgages again. This time, they said, there is 2 Trillion in toxic assets, but they are going to use 1 Trillion to buy them, hoping that investors will come up with the other trillion. But I read that others are saying there is at least 4 Trillion in toxic assets, and the 1-2 trillion will not fix the problem, that it will wind up money down the drain.

Also, Russia and China are calling for a new Reserve Currency that will replace the dollar, a worldwide currency from the IMF (either way, the Rothschilds think they will win—they are behind the Fed Res and the IMF and the World Bank).

But, it does seem that there is an attempt to try and save the US economy. Or, maybe the goal is to destroy it, but the way the powers that be want it, so they are manipulating it for those ends. If China were to sell off their dollar investments for a big loss, that 'could' trigger a total collapse of the dollar. But, I read that this whole thing blew up in September because China was trying to collapse the dollar when it stopped buying US Treasury bonds. They had become the world's largest buyer of US Debt, and they stopped, and so the Fed Reserve stopped honoring new money for the US Treasury, but the "Bail Out" money was a last ditch effort to keep the US dollar up. If China were to now dump their treasury bonds, it 'could' pull the rug out from under the dollar and it could collapse in a few days. But it is a war of financial nerves, because if they dumpled their T-Bonds for a loss, and the Fed Reserve keeps pumping in more money to prop up the dollar, the Feds just might be able to keep the dollar from collapsing (for now), and then China will be the loser because they would have lost big time by selling off the T-notes for a loss. Then they will be in trouble. So it seems that a war is being waged in the financial markets.

In a year or so, INFLATION from all these TRILLIONS of new dollars is going to kick in BIG time, and on top of that the Democrats have plans of TAXING everyone to DEATH.

  I got the following in an email yesterday:

Madam speaker Nancy Pelosi wants to put a Windfall Tax on all stock market profits (including Retirement funds, 401K and Mutual Funds! She wants to Equalize income in the US, tax the wealthy and give it to - to the 12 Million Illegal Immigrants and the unemployed Minorities! No joke, she actually said just that. Socialism - Marxist Communism, it's alive and well in the US.

She quotes: "We need to work toward the goal of equalizing income (this is Marxist ideology - that 50 yrs ago everyone would have recognized it and been alarmed) in our country and at the same time limiting the amount the rich can invest."

(Since I'm not rich, should I really care? But, what she is speaking about here is Pure 100% Marxist ideology - first politics and the economy, what will follow next is full-on attack against God and Religion)

When asked how these new tax dollars would be spent, she replied: "We need to raise the standard of living of our poor, unemployed and minorities. For example, we have an estimated 12 million illegal immigrants in our country who need our help along with millions of unemployed minorities. Stock market windfall profits taxes could go a long way to guarantee these people the standard of living they would like to have as 'Americans'."

That is pure communism. Socialism. Take money from those who worked hard to make it, and give it to the unemployed. Srila Prabhupada said you take the unemployed and put them on the farm, give them work growing our food. But, social-facism lets Big Corporations take over farming, which employs the fewest people possible, then take money from those who work and give it to those who don't have to work.

For 200 years people wanted to come to America for the opportunity. They did come for hand outs, but to work hard and earn a good living. There was no welfare, no food stamps, no Medicaid, no free lunches. Today people come with their hands out—"Give me, give me, give me"—rather then contribute to America's wealth, they come to siphon off it, drain it like leeches.

I am not a patriotic American, and don't care from that side. In fact, I am for a single one-world government, as long as it is Krishna conscious. But I am against corporate facism and irreligious communism. And against economic ideas that make no sense.

Yesterday on the radio Ron Paul was asked how the Feds plan to pay off all these Trillions. He said the PLAN is to pump as much money into the economy right now as possible, Trillions and Trillions, load up the debt - with the PLANNED idea that all this money will spawn HUGE Inflation, and the value of the Dollar will fall.

Lets put it on an individual's level.

I am going to use smaller numbers, just to make it easier. Say today you have a mortgage of 100k on your house, and you earn 30k a year. Let's say that inflation kicks in big time and in 2 years the dollar is only worth 1/10th what it is today. As inflation grows, eventually people have to get paid more. So, when adjustments are made, instead of earning 30k a year, in 2-3 years you will be earning 300k a year. But, the 100k mortgage does not increase, so you still only owe 100k, but rather than only earning 30k, you will now earn 300k. In essence your debt is now 10x less than the amount you are earning.

That is what Ron Paul said the Fed's idea is now: to pump all kinds of money so that inflation will go through the roof, but when the national production is adjusted to the inflation in 2-3 years, the US will be taking in many times more income. Say today the Gross National Income were 3 Trillion, and you create a 10x inflation, then eventually the income would be 30 Trillion. So today's 14 Trillion dollar debt, which is impossible to pay off with 3 Trillion a year income, will become much easier with a 30 Trillion income.

Ron Paul was saying that has become the new logic. Pump as much money into the economy as they can, so they will trigger a 10x-20x inflation in a few years, and then the current debt will be easier to pay off.

The danger is that it could wind up totally collapsing the Dollar. The danger is that other problems may arrise and they keep throwing more money into the economy to the point that the debt keeps rising with the inflation and they will never be able to pay if off, people will lose faith in the dollar, and the whole thing collapses.