unveiled FED dirty tricks to manipulate the dollar & commodity prices

Jim Puplava talks to James Turk about the central banks dirty tricks to artificially support the dollar and collapse the prices of commodities
recorded on October 17th 2009

PPI = Producer Price Index measures average changes in prices received by domestic producers for their output.

CPI = Consumer Price Index is a measure estimating the average price of consumer goods and services purchased by households.

TOCOM = Tokyo Commodity Exchange regulates trading of futures contracts and option products of all commodities in Japan.
The Tokyo Gold Exchange, the Tokyo Rubber Exchange, and the Tokyo Textile Exchange merged in 1984 to form TOCOM.

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[meikagirl]

The world's Govt's need to cancel all tangible debts under the Glass Steagall act standard now.

[ExtremeWelder]

If a gouvernment have debts, they can print money and pay it off. But that creates inflation. In other words; you can always remove your debts to the cost of lowering the value of your currecy. Now; the US have the largest debt that has ever excisted in the history of mankind, and there seems to be now way to pay it off. What will follow is your guess as good as mine.

[MillyVanillification]

the value of money - before the banksters came along - was connected to the goods available. The thing that grows is the virtual "economy" which is producing nothing than paper and "values" stored on magnetic surfaces. the relevant production went off-shore. Those countries expect to be able to buy goods with this paper. But the more paper, the lesser the value. This is the delusion of the economic growth. Economic growth = devaluation of goods and later money. Bigger isn't better.

[MrSteve125]

I was thinking this would be a disincentive for using inflation as a form of hidden tax. Any inflation above population growth would hurt revenues. The more the gov borrowed the less future revenue and with no way to monetizie debt. loop closed.

[lilbromarky1]

do you mean to tether the income tax rate to the productivity to make it in everyone's best interest to maximize productivity?

[MrSteve125]

No problem. Unfortunately even synthetic gold would require some units of labor and productivity to create. Its much easier to create units of invisible things. Wouldnt it just be easier to index a fed income tax deduction to the CPI rate?

[lilbromarky1]

Steve,

Thanks I appreciate that. The velocity seems to stem from money flowing from one bank to another in a fractional reserve banking system correct? The 10K deposit spawns 9K, spawns 8K etc nearing 0

On a gold standard you can't create money without finding/obtaining more gold I believe so there would be no velocity.

Hmm I wonder at what price gold would have to hit for it to become profitable to synthesize it in a lab....

[MrSteve125]

"Velocity" of money - Is when the money supply multiplies (grows) when money moves from one party's bank account to another's.

Credits - When the fed buys US treasuries in the open market it simply "credits" the dealer's bank account with electronic credits.

Reserve Account - Each commercial bank is required to hold a reserve account with the fed

[lilbromarky1]

Steve can you please define:

velocity

credits

reserve accounts

[lilbromarky1]

deflation now is caused by the 1 trillion that banks are holding in their valuts. They wont be able to hold it thru the housing crisis. And as I understand it, the dollar weaking and consequently, that short period of increased exports increase for the US will be the last breath of the US economy before all of our printed money comes home to roost.

[MrSteve125]

You cant create inflation without velocity and you cant create velocity without allowing the credits to leave the reserve accounts, which most will not. Hyperinflation will happen but it does not mean the dollar will collapse. I would plan for 8-10%. So dig that money up out of the backyard and bring it back to the bank already.

[lilbromarky1]

I dont know what's going to happen but its starting to really bother me on a daily basis.