At the far right of the falling blue line, there is a sudden and dramatic drop. Normally this wouldn't be too big a deal except for the fact that the drop has gone below 1. What that means is that the federal reserve has lost control of the velocity of the effect that cash they inject into the system has on the economy.
They thought that as long as they pumped trillions of dollars into the economy, it would keep running. What they've just collided with -- and what I have been screaming about for at least two years -- is that when they print money, it devalues the rest of the existing money.
We have now -- right now, today -- arrived at the point where the more money they put into the economy, the worse off we're going to be!!! Their printing of money is now having the exact opposite effect of what they hoped. Instead of helping the economy, the cash they are injecting is putting a massive drag on the economy through the devaluation of the rest of our money.
If this continues, if the federal reserve and the Treasury keep injecting new cash into the markets and into the economy, the US dollar absolutely, positively, WILL COLLAPSE within 6 Months from today.
The ONLY way to avoid this national collapse is for the federal reserve and the Treasury to STOP injecting new cash and credit into the economy and start WITHDRAWING LIQUIDITY to force the bad debt / bad debtors to default.
This means corporate Bankruptcies - especially on Wall Street and in the Banking Industry - on a scale never before seen. It means unemployment on a scale never before seen. It means personal Bankruptcies on a scale never before seen.
Yet forcing this to happen is the ONLY thing that will save the currency itself from collapsing and taking the entire nation -- all of us -- with it.
Put simply, we have only two choices: let the big guys die from their own failures or let them take the entire country down with them.
Start the countdown. 6 months from today, January 5, 2009, either the big guys will have gone down, or the entire country itself will economically implode. There are no other choices. None.
Those of you outside the United States would be very smart to DUMP any US currency or US Bonds you are presently holding. You should immediately exchange or convert your US dollars to gold, silver or some other tangible thing of value or you will be wiped out with the rest of us!
If the big shots refuse to allow their big-shot-buddies to fail; and instead cause this entire nation to fail, I promise by God Almighty that I and my pals will hunt you down and wipe you out. I don't care who you are, what position you hold, how much money you have or who you're related to. Your bones can break just like anyone else and your head can be beaten-in with a baseball bat just like anyone else's. That's exactly what I intend to see happen if you destroy my country.
Complete and very extensive supporting analytical details available here
