Tuesday, November 20, 2012

Whats wrong with dollar?

Is American dollar failing?

Federal Reserve is American privately owned banking system. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.

What happened in panic of 1907 year?
Panic occurred, as this was during a time of economic recession, and there were numerous runs on banks and trust companies. The Panic of 1907 was a financial crisis that occurred in the United States when the New York Stock Exchange fell almost 50% from its peak the previous year.

Federal Reserve is the one controlling USA dollar thus meaning almost entire worlds currencies.

Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved. Events such as the Great Depression were major factors leading to changes in the system.

So it is a crisis, we put in force a private bank, then there is another crisis, yet greater then before, then we make some changes. And after all, comes this:



From Wikipedia:
In 1933, U.S. President Franklin D. Roosevelt issued Executive Order 6102, which outlawed the private ownership of gold coins, gold bullion, and gold certificates by American citizens, forcing them to sell these to the Federal Reserve. As a result, the value of the gold held by the Federal Reserve increased from $4 billion to $12 billion between 1933 and 1937.

Who else thinks there is pattern? Could it be Ron Paul is talking truth? Leave comments below.

To continue, here is whats said on dillution of currency:
Generally speaking a reputable country will produce enough bills and coinage to 'meet demand' - naturally money is always 'in demand' so this means replacing bills damaged through use. In the case of the US it should be noted that most 'money' doesn't exist in the form of money, and as a matter of fact most currency is actually held outside the country by foreigners.
If too much money is printed or created holders may fear loss of value from dillution and start selling dollars to buy the currency of other countries. Like a stock the dollar will fall until foreign investors support it by buying American food, corporations, resources, and goods and services again.
Investigating further I found out that Federal Reserve controls a lot.Read the quote:
The treasury and the government of which it is a part does not have any say on how much money actually gets injected into the economy, as monetary policy decisions are left up to the Federal Reserve.

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