How Russia Might Set Off Massive Inflation in The United States

0:00-3:00 Introduction 3:00-4:45 discussion of comments by Katherin Austin Fitts former HUD assistant secretary who claims that government is not incompetent but that there is a place but you just can’t see what its is. 4:45-7:20 discussion of the economic recovery mirage and the Housing Recovery and the Law of Small Numbers.

How The United States Has Used Monetary, Fiscal and Military Policies to Control The Global Economy Since World War II 7:20-11:55 Discussion of how the United States used its position of military and economic dominance to expand its influence around the globe. Discussion of how the United States funded the welfare/warfare state while on the gold standard until 1971. Discussion of how Nixon took the United States off the gold standard in 1971 and substituted the Petro dollar for the gold standard that allowed the United States to continuing spending money on the welfare/ warfare state. Discussion of how the United States has abused its stewardship of having the dollars as the world’s reserve currency by engaging in a $4 trillion quantitative easing program and a continuation and increase in deficit spending. For a short history of U.S. monetary policy since Bretton Woods Agreement of 1944 see “Why Saudi Arabia Matters In Helping to Keep the U.S. Dollar as the World’s Reserve Currency” How Russia Can Set Off an Inflationary Spiral In the United States 11:55-15:25 Review of the situation with Russia, Ukraine and Crimea. The United States has threatened sanctions against Russia and Russia has responded that if sanctions are imposed that they may dump their U.S. Treasury reserves in retaliation. Discussion of the amount of U.S. treasuries that Russia holds and how the U.S. and the Fed may react-perhaps buying the treasuries to limit the impact of a large scale dumping of US Treasuries on the market. Russia holds about $200 billion worth of US. treasuries or about a few months worth of QE. Russia and China have been accumulating large sums of gold at lower prices for the past three years. If they were to dump their U.S. Treasuries they would take a loss. But if Russia were to couple their threat to sell their U.S. Treasuries with a requirement that gold be used for payment for the oil and gas that they sell (as Goldcore speculates), the value of their gold reserves would rise in price probably more than enough to cover their dollar losses. The impact of a move by Russia to require gold as payment would require many countries to sell some of their U.S. Treasury reserves to raise capital to acquire gold so they can use it as payment for Russian oil and gas. This would cause the dollar to weaken and the price of imports to increase and since the United States is a net debtor and net importing nation, the impact would be rising consumer prices. How the United States Has Maintained its Global Dominance Since 2008 15:25-19:00 Discussion of how the U.S gained global dominance: by winning World War 2, having a vibrant economy post war and winning the Cold War. When the financial system collapsed in 2008, the U.S. maintained its dominance by printing over the issue via QE and via a show of military force. Discussion of whether Russia or China present viable threats either in a military or currency war. Discussion of how the U.S. works with the multinational corporations (banks and oil companies) to maintain economic dominance. Comparison to British mercantilism. 19:00-23:04 Discussion of who benefits from the relationship between big business and government. The Fed and the government tells it citizens that its policies are for their benefit and that they are working even though they are not. Discussion of the poor housing economy and how few homes have been sold to middle class people during the “recovery”. Discussion of a recent Bloomberg poll that shows that three quarters of people do not believe the rising stock market has helped them. Discussion of how journalists are now also starting to question the strength of the housing recovery. Discussion of how the media spin the initial jobless claims data each month. 23:04-29:00 Discussion of the numbers behind the economic “recovery”- rising stock and home prices mask a poor economy. Discussion of why banks hold on to foreclosed homes. Discussion of potential excuses the Fed might use to continue QE. The information contained herein does not constitute investment advice. SG disclaims any and all liability relating to any reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.