Federal reserve orders TWO TRILLION dollars to be printed

[Waya]

http://www.indybay.org/news/2006/03/1811962.php

[phantom power]

1. Oh, shit.

[LiberalPartisan]

8. If true...

Then it marks a major shift in policy. Pau Volker moved us away from a monetarist policy to a fiscal policy and that is the reason for the health of the overall good economy since he was put in. A shift to a monetarist policy is inviting inflation and will seriously weaken the economy. If true - this is very bad indeed.

Edit: tracking back the links the sources look sketchy and one site even has a disclaimer the information cannot be validated.

[LSparkle]

2. Holy cow

shit.

[LSK]

hello inflation

[xchrom]

3. mogambo guru is going to implode.

[sendero]

22. ahh...

... too late!

[Taxloss]

36. LOL - absolutely! n/t

[Canuckistanian]

4. Wow

What are the ramifications of releasing all that cash into the economy? Inflation?
Devaluation of the Dollar?

I always thought that it was a good rule to have Gold reserves to cover that much cash.

Or is that not true any more?

[izzie]

13. Gold has not backed our money for years and years.

All else I can say is the money is getting very pretty with all those colors and I am sure Bush will make a mess of this. So far he seems to be batting 100 percent on mess. I am sure the real big money people will be wild on this. More cash has got to mean it has less value.

[orwell]

21. Oil backs our money...

...in the form of petro dollars. This was the back door deal that Nixon cut with the Saudis when we left the gold standard. We prop up their despotic regime and they prop up our fake money. (Ever wonder why OPEC came into right around the time Nixon closed the gold window?)

Nice deal if you can get it...

[ClintonTyree]

19. I doubt the U.S. has 1/10000 the gold needed........

to back it's currency. That's one ten-thousandenth. Probably not even close to that, come to think of it.

[XemaSab]

37. Google "Cross of Gold"

n/t

[izzie]

5. Gee the GOP must be getting ready to run.

I wonder if Bush will just hand it our the back door of the WH or will pass it through the well known corp. and faith based group he so loves?

[InkAddict]

35. Looks like it's being moved out in half mil lots via trucks through

nuke-u-lar plants. Cheers, I think that's near the IKEA outlet - cheap furnishings for that tropical getaway, anyone?

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2236825&mesg_id=2236825

[peacetalksforall]

We are formally a Banana Republic - brought to you by Republicans. nt

[ChairmanAgnostic]

6. Germany, circa 1933

Thank you, Herr Bush.

[dipsydoodle]

You need to back about 10 years

before that to the early twenties. There's a story about a lady carrying a basketfull of money who decided to join a queue for loaf of bread. She left the basket at the side of the road and when she back the basket had been stolen but the money was still there.
There were incident of people in coffee shops who by the time they had drunk it and had a chat couldn't afford to pay the bill.

Highest denomination note ever was a Hungarian Pengo, just after WW2, with more noughts on it than you could possible conceive. Hungary got to the point where workers in brick factories were paid with bricks. They drove them out into the country side and exchanged them for vegetables etc.

The fiat money the Fed is printing won't be any good for buying back $'s if the Chinese for example decide to reduce their $ reserves. Hyperinflation encourages bartering for goods rather than buying them

Broadly speaking , the way things are going, your economy will be totally f*cked and the days of the dustbowl seem like paradise.

[ChairmanAgnostic]

34. very true. I read the stories of

post-1929 German mom and daughter teams entertaining rich US and UK businessmen with every sex trick imaginable. and the daughters were usually younger than 12.
I wonder if Prescott entertained himself that way. Would explain a bit about George junior.

[InkAddict]

38. Well, we won't be able to "drive" bricks out to the countryside

Gas is too expensive now! Furthermore, looks like arrogant BushCo insulted our Chinese "friends." Seems that this crew really is trying to bring down America/Amerika.

Latest headline: Domestic terrorists: "Mission accomplished!"

:scared:

[OldLeftieLawyer]

7. Another work of art on the part of Fuckface

This is incredible.

They just don't give a shit, do they?

[roguevalley]

9. you'll need a wheelbarrow to buy a loaf of bread.,

[Tanuki]

10. Weimar Republic

Remember the pictures of people in Germany in the years between the two world wars, doing their shopping with wheelbarrows full of devalued money? Here we go again.

[AuntiBush]

23. Versailles Treaty all over again.

Except its on the other shoe now, namely US!

Weimar Republic was at the end of WWI, and slowly ignited WWII as inflation hit critical levels.

This is not good. Let's hope our Constitution makes a come-back. Weimar's didn't solve a thing, rather created more hostilities towards liberals and conservatives. Next followed Nationalism, Hitler's rise - then full blown Nazism.

Big gulp!

[DBoon]

31. and you'd get mugged for the wheelbarrow

the money was worthless

[ClintonTyree]

11. Smoke and mirrors............

(and printing presses).....the only things keeping the U.S. economy afloat. The "Bush Economic Miracle" continues to amaze. :eyes:

[lovuian]

12. Bush is stealing America and everybody in the government is

letting him do it!!!

Its the biggest bak robbery in history!!!

[APPLE314]

14. save nickels they are 75% copper.

[Viva_La_Revolution]

15. I've seen this exact posting in several places...

do we have a second source yet?

[bemildred]

16. This appears to be horseshit. nt

[benburch]

17. I FUCKING TOLD YOU.

And people were telling me I was crazy!

[dogday]

18. What is weird is I posted an article about this when

it was happening, and received practically zero response... What does that tell you???

[DoYouEverWonder]

20. Something big is going on in the metals markets

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x980276

Not to mention talk of $100 barrel oil.

$2 Trillion + Gold & Silver going through the roof, plus $4.00/gal gas = shit hitting fan.

Hang on folks we will be experiencing turbulence for the next few years.

[sendero]

24. Actually.....

.... silver pulled back a lot today (from over $14 to under $12) and gold pulled back also (not as much) and it's looking like a buying opportunity to me.

When they reported several months back that they would no longer release the M3 numbers, well you gotta know something is up :)

[DoYouEverWonder]

29. From what I can gather on the other thread

the activity they are seeing is like what they saw in the airline stocks right before 9-11.

There are bargins at the moment because people are selling short but the lid is about to blow off supposedly.

[TreasonousBastard]

25. I call BULLSHIT!!! Whoever wrote this...

doesn't even know what M3 is. M1 accounts for all the cash out there. M3 is M1 plus M2 plus a bunch of foreign exchange stuff like repurchase agreements. And we don't know how old this "news" is.

OK. let's say, for the moment, that the Fed has ordered all this cash to be printed-- the Fed, or Treasury, is always printing cash because a dollar bill only lasts about a month. A C-note might last a year, more if it's in a crack dealer's cache or an oil sheik's vault.

On top of the usual money printing, a lot of money is being retired because of the changes in the new currency. Figuring that there's always half a trillion or so of cash out there, 3 trillion could just be a year or two supply of currency.

[PublicWrath]

26. If the Federal Reserve is no longer going to release info on how much

cash they are going to dump on the market, wouldn't financial analysts have commented on their decision? I thought that kind of data was vital to them.

from article above:


INFO CORROBORATED BY THREE SEPARATE U.S. TREASURY SOURCES
Six months ago, the Federal Reserve quietly announced that as of March 20, 2006, they would no longer publish "M3" Data. The "M3" was the amount of cash the government printed to put into circulation, propping-up the U.S. economy.

[AuntiBush]

27. 2,000,000,000,000.00

Any economist/accountants out here ready to give advise? Should we head for the banks and withdrawal or put in offshore banks?

Thinking of little ole' ladies keeping money in mattresses. What were *'s handlers thinking?
He's a run-away train without a stop for any of us to get off from.

[tocqueville]

28. check the sources, this is not confirmed

Editor's Note: On 3/28/06 we published an article which stated that the Federal Reserve has ordered 2 Trillion dollars to be printed by U.S. mints. We mistakenly published this text instead of the one we meant to publish (below) from Free Market News. The report on the Fed's printing of 2 Trillion Dollars is not adequately supported with sources and supporting factual information. Therefore we pulled that article today, March 29, 2006 and replace it with the article we meant to publish. We apologize to our readers for this error on our part. - LMB

http://www.axisoflogic.com/artman/publish/article_21569.shtml

FED - 'FESS UP ON M3
Thursday, March 23, 2006 - FreeMarketNews.com

March 23rd is more than a normal day. A release from DownsizeDC serves as a reminder that today the Federal Reserve stops publishing a statistic known as M3 - the best information available on how much new currency is being created and held around the world. The release points out that "The Federal Reserve can create new dollars out of thin air. ... When more dollars are created prices rise and the value of your savings fall."

As of today, the Fed has stopped publishing this data for public analysis, and DownsizeDC is not alone in its suspicions about the reasons why. There have been a spate of articles on the 'Net recently speculating about the Fed's fairly dramatic move, some linking it to a possibile Iranian commodities bourse that will offer an alternative to the so-called US petrodollar. "The Fed is planning to do a lot of 'legal counterfeiting,' and wants to hide it," the release concludes.

The release also notes that Congressman Ron Paul has introduced legislation to require the Fed to resume reporting the M3 statistic, and Downsize urges taxpaying citizens to contact their own representatives to support the bill called The Sunshine in Monetary Policy Act. - ST

staff reports - Free-Market News Network

http://www.freemarketnews.com/WorldNews.asp?nid=9991

[PublicWrath]

32. thank heaven for tocqueville....I feel a little calmer..........n/t

[0007]

39. Whew! I'm feeling better but still worried.

[dogday]

30. Apparently someone else posted and it was removed --link

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=789947&mesg_id=789947

Hope yours gets to stay....

[WillyT]

33. Oy... Here It Goes...

:nuke:

[OKNancy]

40. Lock

This has been debunked. In addition the story is a reprint from Axisoflogic which is considered an unreliable site.