Translating: Devaluation and 'bad bank'.- The Federal Reserve announced a new monetary stimulus plan in order to give life to the famished U.S. economy where unemployment remains well above the levels that existed before the outbreak of the crisis.- So that from this month and unlimited amount of time, the Fed will buy 40 billion dollars in mortgage-backed securities, ie toxic assets or "financial weapons of mass destruction" that triggered the current crisis .
- Is a crucial commitment to revitalize the U.S. economy by way of the devaluation of the dollar. This plan, coupled with released last week by the ECB, makes it clear that today nobody wants to have a strong currency and each block is determined to weaken its currency and sink.
The Americans are in a financial system lock and productive stop. Have find two solutions to this problems: cash injection into banks to promote liquidity and promote currency devaluation to increase exports.
The maneuver is classic, but the novelty is that the Fed is behaving like the "bad bank". Is buying mortgages, freeing them banks of toxic assets while dollars flooded the market. As in Spain or Ireland the Fed is not intended to reduce the burden on homeowners with mortgages. Just the opposite. People who have lost their homes can take for "devalued", mission accomplished. The Fed does not want or can sell these foreclosed properties, their claim is demolished and make new ones, as in Ireland, so its price will plummet until it reaches the market price. The Fed will lose money in change and consummate the devaluation. Two birds with one stone.
The delicate balance of Fed devaluation is how to keep unemployment above 8%.
This is a maneuver that euro countries like Spain are unable to perform due to technical reasons.
Does prayer card scam? Fed QE3 and unlimited monetary expansion
World Devaluation plan
U.S. throws in the towel, as Europe gets rid of the idea of the welfare state and maintain a large middle class. Opt for the devaluation, reduced wages and services. Its objective is matching salaries with those of Southeast Asia.
The draft of global devaluation and wage equalization is underway. The Chinese average wage is about 300-500 € / month, countries like Greece have already lowered from 800 to 600€. Greece and Portugal are achieving their objectives, have taken about eight years, and they have left, until the consummation of the plan to reach 500 € month, for at least another 8. Germany has the minijobs, 2 million people subsisting on € 400 a month, the new pariah. In Spain have managed to reduce by 20% the general purchasing power thanks to a 25% unemployment and a tax increase in just two years. The next step is to translate it into the reduction of the minimum wage and reviewing agreements. The problem is that unemployed has no productive uses: spare.
Exercise: We start 2000 € / month average wage in USA. Each year can decrease about 100 €. Moreover starting from 400 € month in China, with annual growth of 7%, which means that every 15 years the salary is twice. When deemed equivalent? With this plan, if all goes well, in about 20 years, in 2030. We do not believe an 100% adjust, but will approach, emphasizing socioeconomic differences in USA.
But that's not all, because when wages are equalized to the Southeast Asian maquilas will move to Africa, or South America, where there are already many emplaced, starting a new round of devaluation.
At no time Fed have proposed the reduction of debt. In contrast, provide for the generation of money will firing debt.
The system has not been touched, so we will continue to suffer gusting balls and crisis. The U.S. population will suffer a progressive loss of general purchasing power and will be accompanied by a re-concentration of capital in the hands of four offshore and a complete polarization of society. The creation of ghettos around cities is evident. The Transnational companies control over the state will be clearer if cave, since money is fiduciary and the state, through the police and the army, the guarantor of the debts are paid. Yet perhaps manage to maintain its productive and unemployment under the 8%.
Life U.S. foreign policy is marked by dependence of recurring wars that have produced most of the foreign debt and world domination. But as we see, the existence of debt is not what they most value, but the value of its currency, so it is reasonable to conduct further invasions, which help to devalue its currency, and allowing them to reach their goal before .
We headed to a world-ghetto: the employee living and working in barracks. The owner living in neighborhoods and fortified luxury complex, shopping with his bodyguards in his armored limousine. This image is already common in many cities. No more middle class.
Money is the definitive system of subjugation of the weak by imposition or stupid by manipulation. Along with the production system, based on private property and the protection of the army and police are the base and apex of capitalism. It's a hoax.
There will be no re-evolution without chage of exchange system
Can we organize ourselves to achieve a system, that be not only just, but that does not require money and based on real needs and capabilities? The media around us say yes. If we organize ourselves, will be able both system to live together? If the answer is yes let's work. If the answer is no: let's work harder.
There are Cooperatives. There are Assemblies. Let's use it!
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