If there’s one thing that individual investors can take away from Ben Bernanke’s latest Fed update, it’s that all confidence in the financial and economic systems of this country has been lost.
Within seconds of Ben Bernanke suggesting the Fed would taper monetary expansion and reduce their activity stock markets tumbled.
This proves one thing, and it’s what we and many other critics of Fed policy have been saying for nearly five years. The only thing keeping the entire system afloat is the fact that the U.S dollar is the world’s reserve currency, and that we can print it to infinitum.
Ben Bernanke simply spoke of pulling back the money printing and look what happened. Stock markets dropped almost instantly. Can you image what will happen when the Federal Reserve actually stops the printing, or even pulls back a little bit?
It would be financial chaos on an unprecedented scale.
Americans should be outraged that it has come to this. And one American in particular has no qualms about letting his feelings be known.
Watch CNBC’s Rick Santelli as he calls out Chairman Ben Bernanke, fed policies, unemployment statistics, and the blind followers who refuse to question the government’s widespread machinations.
Ben Bernanke may think he can slowly reduce quantitative easing. But, as billionaire financier George Soros noted in his book The Crash of 2008 and What it Means, the infusion of these massive amounts of capital may work for a while. Eventually, however, it must be pulled back or you’re going to end up with runaway inflation.
The problem, as Soros highlights, is that no one really knows what pulling back will actually do or if it is even possible.
This afternoon we got a very small dose of what to expect should the Fed pull back on the monthly billion dollar bailouts.
It’s a Catch 22 – and there really is no way out of it.
The end result will be the same for the average person on the ground.
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Read by 14,619 people Date: June 19th, 2013 Website:www.SHTFplan.com
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