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Tuesday, July 30, 2013


From Rush today in response to a caller question about devaluing the dollar (inflation). I always appreciate additional explanations on the Fed, since I find them mysterious.
The real reason that they have been threatening to dump the dollar is because Bernanke's devaluing it, precisely what you have said.  They have lots of debt in dollars.  They underwrite our debt.  Bernanke is devaluing it and they're upset with that.  And Bernanke is doing this.  But this is really hideous to me.  You want to talk about insiders taking care of each other, that's what this is.  This is the moneyed establishment making sure that they're okay no matter what, holding on to their homes in the Hamptons is the way I describe it.  It also helps Obama create the illusion that the economy is doing well, if you can point to Wall Street.
Now, normally the Democrats hate Wall Street. They hate the Dow Jones Industrial Average.  It's always been the Democrats who talk about Main Street instead of Wall Street.  Now all of a sudden all they care about is Wall Street, because they can point to it and say, "See?  The economy is growing."  Bernanke is hurting the middle class.  The very group of people that Obama claims to be looking out for in his 19th or 20th revision now on trying to rev the economy.  If these guys dump the dollar, it will be devalued even more, and that doesn't help the ChiComs.  Bernanke is devaluing the dollar, as you point out, with this $85 billion a month that's ending up going to the stock market.  It's an intricate route that it takes, but it ends up purchasing stock, securities. 
The middle class is being killed by this devaluation because their real costs, the costs of living are going up.  Gasoline, food, you name it, the dollar is buying less.  It's so bad, folks, they're not even printing the money.  They're simply digitizing.  And to me, this is really scary.  Look at you, for example. Take your bank account.  Let's just pick a number.  Let's say that your bank statement every month says you've got $10,000 in your, let's just call it a passbook account just for the sake of this discussion.  You get a statement that says you've got $10,000 in it.  But there isn't $10,000 in a vault with your name, and there's nothing in that vault worth $10,000.  Your $10,000 exists because there's a number on a piece of paper that says it does. 
All Bernanke is doing is enlarging those numbers.  He's printing money, but they're not really printing it.  They're just going to the ledgers.  Folks, it's really scary stuff.  Now, they claim they've got backup for it, that there is backing for the money that they're creating here.  But they're not even printing it.  There aren't new dollar bills in circulation.  They're just digitizing this, so I've been told and as it's been explained to me.  

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