Federal Reserve and Big Banks Are Going to Crush the Dollar … and American Savers

The Fed’s EXPLICIT Goal Is to Devalue the Dollar by 33% … and NEGATIVE Yield Bonds Are Coming

The Federal Reserve’s explicit goal is to devalue the dollar by 33%.

As Forbes’ Charles Kadlec notes:

The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.


The Fed has announced a course of action that will steal — there is no better word for it — nearly 10 percent of the value of American’s hard earned savings over the next 4 years.

While that is stunning, it is actually par for the course for the Fed:

Here’s a chart of the trade weighted US Dollar from 1973-2009.

US dollar A Banana Republic With No Bananas

And here’s a bonus chart showing the decline in the dollar’s purchasing power from 1913 to 2005:

Dollar from 1913.gif A Banana Republic With No Bananas

The giant banks – through their treasury borrowing committee headed by JP Morgan and Goldman Sachs – are also demanding the issuance of negative yield bonds.

In other words, the too big to fail banks want Americans to pay to have the luxury of holding their money in bonds.

American savers – and especially those living on fixed incomes and pensions – are going to get creamed.

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  • The news in this article was known to the House and Senate when they voted to eliminate Habeas Corpus, trial by jury, right to a lawyer and reasonable bail which is to say they abolished the Bill of Rights. And now they have authorized 30,000 drones to surveil Americans. And half of these are to be armed drones.

    I guess they want something more reliable than the police and the military to protect themselves from the voters. The following has a list of the Senators who voted for armed drones to patrol America.

    The List OF 75 US Senators Who Voted To Let 30,000 Drones Shoot Americans In The Streets

    • Guido Meindl

      Are we moving from the Land of the Free to the Land of the Slaves? Are we moving towards a new 1776 Revolt by the People? We all better hide our guns! The “Land of the Free and the Brave” is in jeopardy. In “God We Trust” – in Government, No Way in Hell!

  • There has to be substantial insanity involved when there is an incessant attack on the citizenry by officials on about every front that matters.

  • david edmiston

    Gold Standard needs to be implemented…..Ron Paul 2012!!!

    • Dave

      Utah is currently using that standard….

    • DFrid

      I agree…back to the gold standard….except for one thing…..America has no gold to back up the gold standard……..do not believe me, go check out Fort Knox! We are broke, the American Dollar is doomed, we will become a Third rate Country soon, all prices of food and gas will soar, it is so sad we have idiots representing us in Washington…but who is to blame? We are, we vote them in there! Obama has just hurried along the inevitable with his atrocious policies……..

      • Emily ceshker

        Oh, they are NOT idiots, they know EXACTKY what they are doing, and it aint good!

        • Emily Ceshker

          Just saw this comment, which by the way, was not written by me,
          Whoever is using my name stop now…or I will place an investigation and file federal charges.

    • Eric Hodgson

      Have you watched ‘The Money Masters’? A gold backed currency might not a good idea.
      A much broader reform is needed.

  • – That the Fed wants to do something over 20 years is a laugh. They can’t effect anything now, who can say what will be taking place in 20 years, even that there will be a Fed?

    – The Fed announces … since when does it matter? The Fed does not control the worth of money, millions of motorists do so daily by filling up at the pump. The US dollar is convertible on demand, for valuable petroleum products. Priced in crude oil the dollar has worth.

    Meanwhile the finance ministers of Europe appear hell-bent on annihilating the euro, how does annihilation stack up against other dynamics?

    • joejeweler

      @Steve from Virginia

      WHAT??? You say “The Fed does not control the worth of money…..” What planet are you from? Every dollar they create out of thin air devalues the dollar in our pockets. The dollar of today is worth less than $.05 of the dollar that was around when the Fed was created. Obama has single-handlely outspent the TOTAL of all the previous presidents COMBINED since the country’s beginning, in just a bit over 3 years! Those “new” dollars came to be from created blips on a screen and some newly created paper dollars also.

      You think it’s an accident the price of everything is rising faster than americans can adjust to? (and NO, it’s NOT that bogus 3% or so inflation rate the gooberment puts out!) REAL inflation is running closer to 13% or more , when the actual goods and services americans need are put into the equation. Leaving food and energy out of the inflation equation does not make those items less needed! But is does allow the gooberment to fabricate a much lower published inflation rate. That screws those on fixed incomes whose cost of living increases are tied to the false inflation rate. Any trip to the supermarket can verify a major firestorm brewing. Gold and silver are also reflecting the continued devaluation of the dollar in terms of it’s buying power,…….and we’re heading toward a nation where they will be required to buy anything. Maybe not tomorrow, or even a year from now,……but SOON the dollar will be treated much like the used toilet paper it has become, and rejected by the world and the citizens of this country.

      • I’m glad to see someone has some sense around here. Good post, joejeweler!

    • Gary

      Steve F.V.,
      I’m sorry but I don’t understand the following comment:

      “The US dollar is convertible on demand, for valuable petroleum products. Priced in crude oil the dollar has worth.”

      Isn’t the price of oil/gasoline rising due to the problems described in the article? Or was this a sarcastic post?

  • eliseo Martinez

    Two sides to this coin: Making U.S. goods competitive abroad creates more jobs at home. On the other side, foreign investment in our stock market will make the wealthy wealthier. Look at the performance of other countries’ stock exchanges and you’ll have to agree that we live in best of all possible worlds.

  • Richard Lay

    The only way they will get away with this plan is by starting another war

    • The wars are part of the problem in several ways (not that I think we’re disagreeing here).
      First, they ‘spend’ our money (err, the Fed’s created, fiat money) at a highly accelerated rate.
      Second, they distract the general populace from what’s really happening economically. And, no, wars are not good for the economy. I used to think that until I understood that war only destroys & makes poor. It hinders wealth creation, it’s no responsible for it.
      An economy flourishes in times of peace & allows prosperity to follow. Besides, if war brings wealth, why aren’t those war-torn countries in Africa and eastern Europe the wealthiest in the world? Just a thought.

      • Jo

        Wars DO create wealth, but only for a select few. The arms producers and all that related material. Of course, only to the owners of these companies.

  • nikolas Kegl

    No wonder the FED wants to devalue the greenback. It has to have a policy to stave off the effect of the decrease of foreign holdings in US Govt Paper. due to depression, trade reduction and animosity. Without inflation and balanced trade the US will never recover from high government debt. It has to compensate reduced export, for military hardvare and car export. Only food export will rise but is not able to compensate. Other exports must be enhanced due to the devaluation of the USDLR.

  • K

    WHAT !!!!!!!! NOT HAPPENING ………….. TIME TO L & L and head to DC………..

    That is the last straw …….. No one is destroying this country ……..Stop talking and start doing something about it …..

  • Walter Rodenburg

    Only 33%? That’s pretty optimistic. Lets hope they can do it. 🙂

    • Richard Levacy

      Why would anyone want to see their dollar worth 33% less than today? Don’t understand your rational for hoping they achieve that…..

      • Miguelito el Bandito

        I believe Walter is hoping they have (any) control and can limit the devaluation/inflation to (only) 33%.

  • Abolish Government

    Anarchy is just around the corner. How much more can Americans take of our inept and corrupt Government. The Government needs to get the hell out of our lives and give us the freedom our ancestors fought so hard for.

  • Jim B

    The only chance we have is if Ron Paul is elected!

  • bruce108

    Wow! We’re gonna be just like Pakistan! Drones! Whoops! We blew up a church picnic.
    While the Fascist Government class lives large on what they steal from us, we’ll be foraging in the woods.
    Americans Deserve this if they are not strong enough to stop it.

  • Bob C

    I’d be thrilled if they could limit the devaluation to 33% over 20 years. We’re headed for that much EVERY year, if not worse.

    Learn how to read, people.

  • gilmat

    The best thing to do (if we can do it) is abolished the Fed. We need to have a new form of monetary standard/policy making body.

  • What a joke that the Fed has pretenses of controlling inflation. In view of the fact that the U.S. dollar has already contracted more that 30% in purchasing power in the past decade, give or take a year or two. to suggest 33% in the next 20 years is disingenuous at the least, pure disinformation and propaganda at the worst. Any alert shopper knows that the FEDS 2% average inflation target is a sick joke, it is double digits at the the very least and cost of living accelerating rapidly. When there is no incentive to save, (below inflation interest rates) and people are instead enticed to borrow what seems like “free money” then the money printing (credit extension) become the only game in town.

    Reversing course is almost impossible as the debt pyramid has now become so large and unsustainable that a rise in interest rates to a point that would be meaningful for savers would simply assure BANKRUPTCY of the system, and its architects know it, so they are desperately “spending and pretending” while looking for an escape hatch.

    The mathematics are simple and do not lie, when our currency is brought into existence as debt, and new money has to be created by whatever deceptive and hidden means just to pay off old debt, (think Greece) then the only thing that can result is an even bigger burden of debt that will reach an ultimate finite limit and destroy the corrupt system that has been in place since the 1913 creation of the FED. Ron Paul is right, the U.S. can not be put on a sound footing without abolishing the FED!

  • Every President edict takes another card off the table for the American Citizens. The leaches we have spawned and nurtured for over 50 years, beginning with the United Nations, The World Bank and The International Monetary Fund don’t need to camp on our soil. Europe has 4 times as large a banking system as the US and we are floating them with QE2 funds. and if you haven’t heard PetrolPlus went belly up, the largest refinerys in Europe. Shell and France bought one to have gas and Germany is going in havies on another We’re still shelling out foreign aid to our enemys and we have troops in 152 countries. The fertilizer stolen in Pakistan ( some 480,000 pounds) has been and is being transported in war areas. There has been no accounting for oil pumped out of Iraq, and we are still putting Billions into the country. We are blind, we are lame, we are stupid. God is lossing patience with us. How can we ask him to bless us much longer?