The Hungry Money Badger

  It was August 15. 1971 US President Nixon announced that the United States would no longer convert dollars into gold, and thus ended the era of gold backed money. August 15, 1971 Nixon takes the US dollar off the gold standard. As a result of this action the US defaulted on its debt obligations as it would no longer repay it debts in terms of gold backed notes, but instead offered a rapidly debased fiat currency as repayment.. It was the start of an era of huge spikes in inflation while lowering of the standard of living of the American people.  In the years to follow the US dollar dropped in value and by 1980 the dollar was only worth a fraction of what it was in 1971. The Federal Reserve failed and/or ignored its mandate to sustain the value of the dollar.  While the US population was made to struggle though this period, the US government went on a massive expansion of spending to pay for its military infrastructure and even larger expansion of its bureaucracy.  The result of this

Mass Currency Debasement Is Not A Solution  As the Federal Reserve's gigantic debt bubble implodes all around us, we are witnessing massive wave after massive wave of currency debasement. Literally printing billions and billions of dollars on a daily basis in an effort to keep their debt bubble alive. The Federal Reserve has gone so far as to suggest there will be limitless currency debasement as a means of "providing stimulus", or put another way endless money printing to keep certain mismanaged corporations from going under. The Federal Reserve has also suggested that these massive money printing actions will only temporary in nature. They want the public to believe these monetary debasements can and will be stopped and things can and will be normalized once this financial crisis comes to an end. Not sure which turnip truck the Fed assumes we fell off of, but it doesn't take much to realize that it is not possible to unwind a quantitative easing scheme (see: P

DEBT MONETIZATION IS HERE TO STAY A decade has past since Ben Bernanke, chairman of the Federal Reserve, insisted that they were not going to monetize debt with their printing press. Now the new reality is finally coming out and it is not pretty. The Federal Reserve has now come out and said they are going to provide unlimited liquidity within the credit markets. This is known as  DEBT MONETIZATION . Also known as currency debasement. The Federal Reserve has no plans to reverse any of its monetary expansion or even wants to consider deflating the monetary supply, as inflation of the monetary supply is the only tool in the toolbox the Keynesian economists running the Federal Reserve know of. They would rather keep inflating the monetary supply while pretending/hoping that it can revive the economy. Of course monetary inflation does nothing to revive the economy. If it were the case Japan would be well on its way to a healthy economy, as they have pursued endless amounts mo

The Fed has Lost All Economic Integrity Back when the Federal Reserve introduced Quantitative Easing (QE), Ben Bernanke insisted it was a short term emergency measure. That it should not be confused with monetizing debt, or debasing currency, as the Fed planned to unwind its position of purchased assets and normalize rates once the economy had recovered. It was temporary. It has been stated here among other places that the Federal Reserve's stated intentions were not realistic. That you can not recover from a debt crisis by inflating a bigger debt bubble and you can not unwind a debt bubble.. That the current financial markets are being held up by cheap money and not by a strong economy. If you take away the cheap money and the market will collapse. Since 2016 the Federal Reserve raised rated to the lofty heights of 2.25 to 2.50%. As of December the Fed indicated it planned to raise rates two or three more times in 2019. The Fed was going to prove they could unwind t

Fed Flip Flop Moving At Light Speed Truly incredible how quickly the Federal Reserve can do a complete 180 degrees reversal of what it said would be a very systemic unwinding of its emergency actions. It was only a eight months ago the Fed said the economy was well on its was to full recovery and that it no longer needed the crutch of emergency measures.  Earlier they suggested that they could unwind QE (perform quantitative tightening) without they disrupting the economy. They stated it was going to be "like watching paint dry". Some silly boring activity not worthy any concern. It was all on autopilot. Things were great and they were going to stay that way. There was never going to be another financial crisis in our lifetimes. In fact in December they were discussing whether to raise rates two to three times in the coming year. That is when reality struck and my how things have changed. A few months later and the Fed is now in full retreat. The unwinding of the Quan

It is Time we Examine the Current System During the resent 2019 Bilderberg meetings in Montreux, Switzerland the world's elite discussed a number of issues. On the list of topics which were discussed was: The Future of Capitalism. This is a very serious subject that does need to be openly examined and discussed. Since the world's elite do not, nor will not release any information on the discussions they held, beyond that they are planning a future for capitalism, that does need to be of concern to the masses. The reality is this topic DOES need to be openly discussed and reviewed, but sadly is ignored by most. First off lets dispell any false narrative. Centrally planned economies are NOT a form of capitalism . Yet this is what we have festering throughout the western economies of today.  A centrally planned economy that has removed major elements of the free market system. Instead today we have a form of socialized oligopoly, where the very top elite class

  2018: Worst December Since Great Depression     Reviewing the market movements over the past year and projecting out what can be expected in the new year we are left with the acknowledgement that the Federal Reserve remains mostly unaware of free market economics. The Fed has replaced true price discovery within the markets with  market manipulation and central planning. As has been discussed at length in previous posts the likely outcome of Quantitative Tightening was going to be a massive drop in the stock markets. I am not in the lest bit surprised or disappointed in the market reaction.       As the impact of Quantitative Tightening policy are taking hold markets are reacting exactly as expected. The Federal Reserve set themselves up for absolute failure the second they concluded that inflating a massive bubble in the debt and equity markets was a good idea. Not only did they think it was a good idea, but they further thought it was a good idea to let that bubble infl