I'll never forget back in July 2008 when I first came to the conclusion that Alan Greenspan was secretly on the side of the Good Guys working to take down the banking cabal that had stolen our monetary system. For months I had pestered Bill Murphy of GATA to publish a paper I had written called "Greenspan's Magnum Opus!" but he would have no part of it. To a Gold Bug, Greenspan was arch enemy #1 and even the suggestion of him working as a sort of double agent against the Banking Cabal was considered heresy!
Murphy, to his credit, finally broke down in late 2008 and published my article which eventually came to be known as Greenspan's Golden Secret!
It took at least another year for the cries of "Bix Weir you TRAITOR!" from my fellow GATA Warriors to die down to where we sit today. Those who have thoroughly read and studied the Road to Roota Archives and listen to what the Maestro is saying today have accepted the once unthinkable...THAT ALAN GREENSPAN IN FACT IS TRYING TO RETURN US TO A GOLD STANDARD!
So I ready for the FERVENT subscriber response I got when I recently suggested the possibility of another very controversial figure, Sarah Palin, being slated by the Good Guys to take the position of Vice President if Ron Paul replaces Barrack Obama. Let me tell you the CALLS OF MY INSANITY were loud and strong again!
Of course, that did not dissuade me off my line of thinking and a speech by Sarah Palin today actually reinforces my original theory.
I invite you to read the words of this speech she delivered today and argue to me again that there is no way that she is being set up to run with Ron Paul...
Sarah Palin to Bernanke: "Cease and Desist"
I'm deeply concerned about the Federal Reserve's plans to buy up anywhere from $600 billion to as much as $1 trillion of government securities. The technical term for it is "quantitative easing." It means our government is pumping money into the banking system by buying up treasury bonds. And where, you may ask, are we getting the money to pay for all this? We're printing it out of thin air.
The Fed hopes doing this may buy us a little temporary economic growth by supplying banks with extra cash which they could then lend out to businesses. But it's far from certain this will even work. After all, the problem isn't that banks don't have enough cash on hand - it's that they don't want to lend it out, because they don't trust the current economic climate.
And if it doesn't work, what do we do then? Print even more money? What's the end game here? Where will all this money printing on an unprecedented scale take us? Do we have any guarantees that QE2 won't be followed by QE3, 4, and 5, until eventually - inevitably - no one will want to buy our debt anymore? What happens if the Fed becomes not just the buyer of last resort, but the buyer of only resort?
All this pump priming will come at a serious price. And I mean that literally: everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher. And it's not just groceries. Oil recently hit a six month high, at more than $87 a barrel. The weak dollar - a direct result of the Fed's decision to dump more dollars onto the market - is pushing oil prices upwards. That's like an extra tax on earnings. And the worst part of it: because the Obama White House refuses to open up our offshore and onshore oil reserves for exploration, most of that money will go directly to foreign regimes who don't have America's best interests at heart.
We shouldn't be playing around with inflation. It's not for nothing Reagan called it "as violent as a mugger, as frightening as an armed robber, and as deadly as a hit man." The Fed's pump priming addiction has got our small businesses running scared, and our allies worried. The German finance minister called the Fed's proposals "clueless." When Germany, a country that knows a thing or two about the dangers of inflation, warns us to think again, maybe it's time for Chairman Bernanke to cease and desist. We don't want temporary, artificial economic growth bought at the expense of permanently higher inflation which will erode the value of our incomes and our savings. We want a stable dollar combined with real economic reform. It's the only way we can get our economy back on the right track.
Maybe she can't tell you what newspapers she reads in the morning or where Russia is relative to her backyard but it sure sounds like someone very much "in the know" is writing her speeches on Monetary Policy!
The jury is still out on this "off-the-wall" road to Roota prediction!
Are we having fun yet?