{"id":21144,"date":"2016-06-21T18:57:28","date_gmt":"2016-06-21T23:57:28","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21144"},"modified":"2016-06-21T18:57:28","modified_gmt":"2016-06-21T23:57:28","slug":"the-feds-doomsday-device","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21144","title":{"rendered":"The Fed\u2019s Doomsday Device"},"content":{"rendered":"
\n

The Fed\u2019s\u00a0 Doomsday Device\u00a0<\/a><\/h3>\n<\/div>\n
Bezzle<\/strong><\/div>\n
\n

BALTIMORE \u2013\u00a0 Barron\u2019s, in a lather, says the market is facing the \u201cTwo Horsemen of the Apocalypse.\u201d Huh?<\/p>\n

\"Apocalypse_vasnetsov\"Only two? There were four last time!<\/p>\n

Supposedly, the so-called Brexit \u2013 the vote in Britain this Thursday on whether to leave or remain in the European Union (EU) \u2013 and uncertainty over where the Fed will take U.S. interest rates are cutting down stocks faster than a Z-turn mower.<\/p>\n

But Brexit is a side show. As our contacts in London explained in last week\u2019s issue of\u00a0Bonner & Partners\u00a0Inner Circle, Britain will do just fine outside of the EU. It will even thrive.<\/p>\n

As for the Fed\u2019s fumbling, it is a consequence, not a cause, of falling stock prices. The real threat to this market is more basic, more dangerous\u2026 and completely unavoidable. It is a \u201cdoomsday device\u201d \u2013 hidden in plain view \u2013 in the feds\u2019 fiat money system.<\/p>\n

It took us a long time to understand how this works. For many years, we referred to the Fed\u2019s EZ money policies as \u201cprinting money.\u201d Finally, we realized that this metaphoric description of the Fed\u2019s role probably hides more than it reveals.<\/p>\n

The Fed is not printing money. If it were printing money, we\u2019d have more money around and higher consumer prices. Instead, when the feds went to a \u201cpaper\u201d money system in 1971, they did it very cleverly.<\/p>\n

Yes, their new system is totally fraudulent and absolutely ruinous \u2013 just like an old fashioned money-printing scheme. But the fraud takes much longer to uncover, and the ruin is only obvious at the end. It is a \u201cbezzle\u201d\u2026 where you only become aware that you\u2019ve been had when it blows up.<\/p>\n

Unlimited Credit<\/strong><\/p>\n

Here\u2019s the deal\u2026Instead of printing money itself, the Fed allows banks to create an almost unlimited amount of credit (providing they meet certain capital requirements).<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Fed\u2019s\u00a0 Doomsday Device\u00a0 Bezzle BALTIMORE \u2013\u00a0 Barron\u2019s, in a lather, says the market is facing the \u201cTwo Horsemen of the Apocalypse.\u201d Huh? Only two? There were four last time! Supposedly, the so-called Brexit \u2013 the vote in Britain this Thursday on whether to leave or remain in the European Union (EU) \u2013 and uncertainty […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6275,14064,6190,175,7170,303,309,536,538,3650],"class_list":["post-21144","post","type-post","status-publish","format-standard","hentry","category-economics","tag-actingman","tag-bezzle","tag-bill-bonner","tag-credit","tag-doomsday","tag-fed","tag-fiat-currency","tag-money","tag-money-printing","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21144"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21144\/revisions"}],"predecessor-version":[{"id":21145,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21144\/revisions\/21145"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}