From Forbes Magazine this week,
The Federal Reserve's Explicit Goal: Devalue The Dollar 33%
"The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level."
"An increase in the price level of 2% in any one year is barely noticeable. Under a gold standard, such an increase was uncommon, but not unknown. The difference is that when the dollar was as good as gold, the years of modest inflation would be followed, in time, by declining prices. As a consequence, over longer periods of time, the price level was unchanged. A dollar 20 years hence was still worth a dollar. But, an increase of 2% a year over a period of 20 years will lead to a 50% increase in the price level. It will take 150 (2032) dollars to purchase the same basket of goods 100 (2012) dollars can buy today. What will be called the “dollar” in 2032 will be worth one-third less (100/150) than what we call a dollar today."
A 33% devalue broken down, if it was gradual and controlled, would be 11% devalue each 7 years. Roughly. That was me saying that. I like smaller numbers to work with. To continue:
"Why target an annual 2 percent decline in the dollar’s value instead of price stability?" ... [yadda yadda yadda a bunch of stuff in the article I don't understand, now to sum up:] "In other words, a gradual destruction of the dollar’s value is the best the The Federal Open Market Committee (FOMC) can do."
Just as I thought.
"The Fed’s finger prints in the form of monetary manipulation are all over the dozen financial crises and spikes in unemployment we have experienced since abandoning the gold standard in 1971. The financial crisis of 2008, caused in no small part by the Fed’s efforts to stimulate the economy by keeping interest rates too low for, as it turned out, way too long is but the latest example of the Fed failing to fulfill its mandate to achieve either price stability or full employment."
Anyone who thinks the economy is getting better has potatoes for brains. Baltic Dry Index plunged to a 20 year low this week. The BDI is always used as a barometer and a harbinger of the strength or weakness of the global economy, because it is a snapshot of commodity trade through global shipping. Here is another take on the Fed's plan to devalue the dollar. He is easy to understand.
I used to love our economy. But just as Jesus is nearing His return, He is showing us that it is not something to cling to. Just as He is showing us that our ways and our management of His earth are flawed, we release attachment to our man-made constructs and ready ourselves for His currency, truth, and His economy, faith.
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