(rumormillnews) UNCONFIRMED AT THIS TIME:Dollar to be Devalued in Next Few Days

[citizenx]

NOTE: from rumormillnews.com

Federal Reserve Note to be Devalued in Next Few Days - Stock in Food NOW

Posted By: Rayelan <Send E-Mail>
Date: Wednesday, 29-Sep-2010 13:56:50 Note from Rayelan:

This arrived from one my long time friends who never passes on info unless he's pretty sure it's true.

Folks,

In the last 24 hours I have had reports that the Government is about to devalue the Federal Reserve Note in the next several days. If the information I received is correct then the reduction is going to be major, approximately 10% of its present value.

If this happens there will be major increases in the cost of food, gasoline and almost everything that is real product, not paper. Therefore I recommend that you consider buying some food ahead of this change. That means that you need to do it today or at the latest tomorrow.

Obviously this could be an error, but I do know that the 82nd Airborne has been put on 18 hour alert for deployment in this country and that I have verified. The only reason I can see to do that is to help control populations in big cities where we could see major rioting. At the time I first found out about that I could not figure out why, but this currency change could be the explanation.

In any case being prepared with some additional food is wise I believe. Most of us can't do anything about the fuel cost, but we can do what we can with the other things that are going to change in price if this devaluation occurs.

Dave

 http://www.rumormillnews.com/cgi-bin/forum.cgi?read=183812

[agentbluescreen]

Well they'd need a whole hell of a lot more than one division to deal with a catastrophe of such magnitude.

[citizenx]

Yeah, I odn't necessarily believe the bit about troops being dispatched or even the 10% figure, but I think they are going to wratchet up the currency war iminently perhaps with some big Q.E.II-type move where Ben cranks up a couple of Chinooks to dump a big load of (even more worthless) filthy lucre all over America.

[citizenx]

Krugman: We Need $8-10 Trillion Worth of Quantitative Easing

Political Economy | Edward Harrison | October 13, 2010 10:43 pm |

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The interesting thing about this clip is that Paul Krugman is probably right: you need trillions of printed dollars to get the stimulative effect the Federal Reserve is looking for. Ambrose Evans Pritchard was talking about taking the Fed’s balance sheet to $5 trillion in June.

Fed watchers say Mr Bernanke and his close allies at the Board in Washington are worried by signs that the US recovery is running out of steam. The ECRI leading indicator published by the Economic Cycle Research Institute has collapsed to a 45-week low of -5.7 in the most precipitous slide for half a century. Such a reading typically portends contraction within three months or so.

Key members of the five-man Board are quietly mulling a fresh burst of asset purchases, if necessary by pushing the Fed’s balance sheet from $2.4 trillion (£1.6 trillion) to uncharted levels of $5 trillion. But they are certain to face intense scepticism from regional hardliners. The dispute has echoes of the early 1930s when the Chicago Fed stymied rescue efforts.

In the video below, Paul Krugman talks about $8 – $10 trillion of Treasury buying. I think the sum needed to provide the stimulus the Fed wants could be higher still. Krugman doesn’t think this will happen.



Read more: http://www.creditwritedowns.com/2010/10/krugman-we-need-8-10-trillion-worth-of-quantitative-easing.html#ixzz12l3eTBE0

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The last time the total money supply was measured/published, including M3 was 2006.  The total money supply was just over 10 trillion before the "financial crisis" of 07'/08'/09' and the bailouts and QEI.

So, what Krugman is talking about is nearly doubling the money supply, hence reducing the value of the dollar by approximately 50%.

Most likley the Fed will announce quantitatitve easing in the (relatively) more modest range of 500 billion or just under at the beginning of Nov. (Nov. 2 or 3).

This represents and increase of the money supply of up to 5% -- reducing the value of the dollar by a corresponding figure, though the impact may not be felt immediately.

So, the time frame of this original announcement may have been off but the scale of the devalutaion ("quantitative easing" was only slightly exaggerated by a figure of, maybe, two to one.

But who knows what really might come out the Fed in the next few weeks, given Foreclosuregate and the apparent stagnation that seems to persist despite claims of an on-going "recovery" dating back to June 09'.

[Jon W]

Maybe down to 10% in 10 years. But not overnight. That would be a disaster.

HOAAAX

[citizenx]

The dollar has lost 23% of its value versus the Yen just since the beginning of the "financial crisis" od 07'/08'/09'.

It will not take ten years for this devaluation 5-10% to take place.

And, this is not a hoax.

QE II will probably be announced early next month to the tune of 500 billion USD or so -- maybe much more if economists like our recent Nobel-winning Krugman have their way (with us and the dollar).

No hoax.

The market has already anticipated such a move and has gone up over 7% in the last seven to eight weeks.  If it is not announced, the markets will slide back considerably.

[Jon W]

Overnight???

Misread your post and thought that it said "to 10% of its value".

Still, overnight???

[citizenx]

That is what the original article was suggesting.

Obviously, that did turn out not to be true.

The original article is from September.  This did not come to pass -- yet.

However, the possibility of massive quatitative easing by the Fed (QE II) is very real, and could mean a very quick (within days) increase in the price of gasoline and other imported items and ultimately all things that we buy, like food and clothes (most of which are also imported nowadays).

Right now it looks like the Fed. will announce in early Nov. (2nd or 3rd or thereabouts) a second round of "quantitiative easing" by whihc euphemism they mean to increase the money supply by 500 billion or to buy 500 billion dollars worth of treasuries to bail out our government which may then (say, immediately after the elections -- hint, hint, hint) vote in another round of economic "stimulus" spending.  Either way, we a re talking about the Fed dumping a lot of dollars on the economy (America) and consequently (inherently) devaluing the dollar by a considerable amount.

Prices will shoot up, almost literally overnight.  And, the possibility of real unrest is not impossible.

What would people do if the price of gas, say, shot up 5-10% overnight?  Think about it.

[citizenx]

Fed eyes flexible approach to stimulus

By Robin Harding in Washington

Published: October 20 2010 21:02 | Last updated: October 20 2010 21:02

Officials at the US Federal Reserve are considering a fresh monetary stimulus that would combine guidance on the provisional scale of a new programme and a time frame for buying assets with the flexibility to adjust its size at regular meetings.

Although no decision has been made to launch a new round of quantitative easing, Fed officials are weighing an approach that allows more discretionary meeting-by-meeting decisions than the unconditional “shock and awe” stimulus it launched during the depths of the crisis in 2008 and 2009.

EDITOR’S CHOICE
Fed’s Beige Book reveals modest growth - Oct-20Money Supply - Feb-25Bank of England minutes show divisions - Oct-20Stakes are high as UK ponders QE2 - Oct-20Martin Wolf: UK and US seek own paths - Oct-19Global Insight: Fed bets bottom dollar on easing - Oct-17The US central bank is considering a return to buying assets because unemployment remains stubbornly high at 9.6 per cent and core inflation of about 1 per cent is below the Fed’s goal of about 2 per cent.

There is likely to be debate about whether to go ahead with further QE at a meeting on November 2-3 but many officials, including Ben Bernanke, chairman, have said there is a case for further action.

The framework under consideration would have three elements: guidance on the amount of purchases, a rate or time frame over which to buy them, and a condition under which the Fed would review the amount.

Some officials argue that the Fed should not commit itself and should decide on a small amount of purchases at each meeting. Others say only a large amount will move markets and so achieve the lower long-term interest rates the Fed wants.

By announcing a total or intermediate goal for purchases the Fed could shape market expectations but still leave itself flexibility to raise or lower the amount it eventually buys depending on economic data and how well the programme works.

Most officials say the initial goal for any purchases should be substantially smaller than the $1,725bn the Fed bought in the crisis conditions of 2008-09.

continued:

http://www.ft.com/cms/s/0/30fe59b6-dc7b-11df-a0b9-00144feabdc0.html?hpt=Sbin
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So, the stimulus/QE II might be closer to 1.72 trillion than 500 billion, if you read between the lines according to the inside-scoops.

And, of course, you've got that genius (nutbar) Krugman calling for 10 trillion USD.

If it's 1 trillion plus, I think we really are looking at about a 10% devaluation (further -- the dollar has been devalued 23 % versus, say, the Yen since the Financial Crisis of 07'/08'/09' started).

It will merely happen or begin at the beginning of Nov. instead of Oct., so I think this prediction was simply off by dates.

Maybe the author was expecting a similar Fed move to have happened already.

Clearly the elites are already preparing a witches' brew of rebellion already  -- if they are going to instigate one they might as well provocateur it as well.

see:

AOL Time Warner caught red-handed provoking civil war genocide in the US!!!

http://forum.prisonplanet.com/index.php?topic=189989.0

[Brocke]

Australian dollar reaches parity with US dollar

THE Australian dollar has reached parity with the US dollar for the first time since the currency was floated in December 1983.



But economists suggest today that the Australian dollar could top $US1.10 in the year ahead.

Shane Oliver, AMP chief economist said: "With the US dollar likely to remain under pressure, the RBA remaining on track to raise interest rates further and Australia’s terms of trade at a near 60 year high, it is likely that the Australian dollar will settle above parity over the year ahead – probably around the $US1.10 level."

read more: http://www.adelaidenow.com.au/news/national/australian-dollar-reaches-parity-with-us-dollar/story-e6frea8c-1225939431821

[citizenx]

So, further confirmation of devaluation of the dollar on the order of 10% within the next year, but since it has lost nearly 15 % in just months (since April) it is likely to lose much more value in the next twelve months.



It is too bad really, because of the dollar was relatively stable now we could maybe work out a deal to re-link the dollar with some other currencies (like the Australian dollar with which it used to be linked) and other currencies at rough parity (such as the Canadian Dollar) to create a new Dollar of various English -speaking countries, to possibly head off the loss of reserve status.

But, of course, the elite do not want that since they doubtless still envisage a future North American or Global Currency to replace the dollar as the reserve currency -- possibly in a cashless form.

Guess it's time to start buying Australian dollars among other things.