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Let's skip the Orwellian Newspeak of QE and stick to the Oldspeak – printing money - 600 Billion of it. QE1, the first round of money printing was a bond buying blitz of about 2 Trillion over 2 years. QE2 is about one-third the size, delivered in one-third the time. They will also reinvest the principal of maturing bonds they own into new government debt increasing QE2 by as much as another $300 billion. The Fed will own more US Treasuries than China.(868 Billion) We are buying our own debt with money printed out of thin air. So, they have continued to print the hell out of money at the same pace and an additional 300 bill for good measure. On top of that, this year, the Fed will buy $40 billion of investment banks toxic mortgages every month. The Fed has shown now, through past history, they will print as much money as necessary to avoid a deflationary depression. The final debasement of the dollar has begun and hyperinflation is the United States future.

Hint - After President Nixon closed the international gold window in 1971, leaving the dollar a fully fiat currency or hyperinflatable, Henry Kissinger went to the middle east and made deals to protect oil producing countries as long as they price their oil in dollars. The worlds largest oil producers price their oil in dollars creating an ever increasing demand for the U.S. Dollar. This increasing demand for the dollar allows the U.S. to export part of their inflation and slow the inevitable onslaught of hyperinflation while they continue to print. Economist Jerry Robinson (FTMDaily.com) refers to this as the Petro/Dollar System. I would refer to it as a Psuedo World Reserve currency that will eventually bite you in the ass. This is why middle eastern foreign policy is so important to the United States. The Dictator Saddam Hussein of Iraq, another large oil producing nation, began selling oil priced in Euros instead of dollars, we all know what happened to him. Needless to say, Iraq now prices oil in dollars. One would guess, both U.S. - Iraq wars were to maintain the free flow of oil at market prices, with an additional benefit of the later one being to finish the sentence, one should say, "maintain the free flow of oil at market prices and priced in U.S. dollars".

Moreover, as of right now Iran is trading oil in a basket of currencies and Russia and China have certain deals to trade oil and natural gas in their own currencies. So, the saga continues!

Markets Hit All Time Highs

Here is a good article from the financial physician explaining why the markets are up and the country is in relatively poor fiscal shape 

Lou Scatigna

This week the Dow hit an all-time high, erasing the losses experienced during the 2008 crash and economic crisis. Meanwhile, the economy continues to struggle. Fourth quarter 2012 growth was non existent, unemployment won’t budge from the official 8% rate (really 15%), and housing, is still depressed. So why has the stock market soared to new Highs?

1. The Fed’s unending quantitative easing (money printing) has acted like a stimulant drug on the market. The Fed buys $40 billion of the investment banks toxic mortgages every month and some of that money has found it’s way into the stock market. Without the Fed the market would still be thousands of points lower.

2. The stock market has become the only game in town for investors. Safe vehicles like bank accounts and treasury bonds offer paltry yields while money market funds yield virtually 0%. Pensions and conservative savers are being forced into the market in a effort to make some return on their money. Retirees have really been thrown under the bus by Bernanke. While the Fed bails out the banks and the stock market with a zero interest rate policy for 5 years and counting the inflation beast has awoken. Food, energy and health care have soared but the CPI is inaccurately reported to be under 2%. Savers receive no income and at the same time the cost of living has been rising. The retiree is in real trouble.

3. The market is going up because it is going up. What I mean by that is when markets are rising others want part of the action resulting in a self fulfilling prophecy. News of new market highs flash across computers, newspapers and television news reports prompting more market envy with the latecomers pushing stocks even higher. These late to the party investors are the ones who will experience the most pain when the market reverts to a level consistent with economic health.

Congratulation to all those investors who invested in the market in 2007 and early 2008, after five years you have a 0% annual rate of return.

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U.S. loses their AAA Credit rating?

Today the U.S. lost their AAA credit rating. Fox Business ask could we lose our AAA just a few months ago: - do these people in Treasury and the Admin know what is going on? intentionally?

Peter Barnes of Fox Business “Is there a risk that the United States could lose its AAA credit rating? Yes or no?”

Geithner’s response: “No risk of that.”

“No risk?” Barnes asked.

“No risk,” Geithner said.

Ben Bernanke Is Finished!

I love the way David Stockman, Reagan's former budget director, still tells it like it really is.

Mac Salvo

Never having lived through a hyperinflationary currency meltdown makes it difficult to visualize how such an event may unfold. We know from historical examples like the Weimar Republic and Zimbabwe that the end result is wheel barrows full of paper currency being used to buy basic staples like bread and rice. The following chart from the late Howard Katz provides us an example of what the beginnings of a currency meltdown look like, in this case Zimbabwe’s hyperinflation, and how quickly it can devolve into completely financial chaos:

Gold	Dollar	Silver

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