Here Is Why The Dollar Is Now Effectively Worthless

Tyler Durden's picture

A picture is worth a thousand Krugman essays, which is why we present a chart comparing the US Monetary Base (and by subtracting Reserve Balances with Fed Reserve Banks, Currency in Circulation), and the Fed's holdings of MBS and Agency paper (worthless GSE/FHA garbage). In summary: Currency in Circulation: $920 billion; MBS/Agency Holdings: $997 billion. The dollar in your pocket is now entirely backed only by worthless, rapidly devaluing and subsidized housing.

Source: H.3 and H.4.1

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WaterWings's picture

Strangely familiar, a familiar strangle:

Addison felt that Germany was 'marching with giant strides towards something very unpleasant' — yet people were still arguing about the responsibility of the industrialists for the nation's woes, or about the form which self-help should take. He had met Germans who appeared genuinely to believe that because conditions had been getting worse for four years they could go on getting worse for ever.

But obviously something goes on only until the moment when it cannot, and that comes suddenly. Nobody thought the war was near an end in March 1918. Nobody in France anticipated the French Revolution because the shop of Reveillon Freres was sacked by the Paris mob.

You should see the long queues of people standing for hours on end in front of the Berlin provision shops. The housewife cannot clean her home or look after her children if she has to stand from 8 a.m. to 1 p.m. for a piece of sausage which in the end she does not get. The patience of the people is marvellous, but a German crowd when angry is ugly.

He had personally been to take a look at the situation first-hand in Bavaria where food was short in the towns but plentiful in the country. However, he was unable to buy an egg from a farm with paper marks, having been told by a peasant 'Wir wollen keine Judenfetzen von Berlin' ('We don't want any Jew-confetti from Berlin' — the popular description for Reichsbanknotes). Bavaria was pining for the good old Thaler, given up in 1870 — the coin from which the dollar itself derived its name.

When Money Dies: The Nightmare of the Weimar Collapse

Anonymous's picture

Glad to hear that the Kuhn Loeb's Jacob Schiff, Max Warburg, and the Rothschild clan were not involved in that monetary debacle of Germany's '20's.

Gladder still that they had no involvement in the banking and credit system in the USA.

Afterall WHO would ever allow architects with proven catastrophic structural failures to continue to build even more fragile systems in other lands? That would be folly without measure...except perhaps in dollars.

Anonymous's picture

Of the five Warburg brothers, Paul was the first head of the Federal Reserve, Max ( im Vaterland)was the head of the german intelligence during WW I, and Felix( residing here in the U.S.) was the big supporter of the Zionist movement. I'm not sure about the activities of the other two brothers but one can only imagine. As a side note Paul was also instrumental in founding I.G. Farben.

Anonymous's picture

Yes, Paul and Jekyll island.

Also Jacob Schiff-Japanese Fleet-Treaty of Portsmouth-weakening of Russo Nicholas. Israel Blank's grandson and Leon Trotsky then took Karl Marx's philosophy to fruition by blood and tyranny.

And the cold war.

Kinda like splitting a gallon of water and trying to create polarities.

Humankind is the ultimate fungible...or is it?

Anonymous's picture

again and again the same ignorances and clichés: the rich jews are the one that rule the wohle monetary system. Such a rubbish!

Galois's picture

Everytime you guys talk about Weimar and gold, this coin comes to my mind:

It's just too funny that there is an official german gold coin commemorating (the historic city of) Weimar. Well, I guess I have a weird kind of humor ;-)

Btw: please don't search how to buy this baby on the page I linked to. It's not possible. The page is on an official governmental website and they had the coin in stock only back in 2006. 

Problem Is's picture

It is just a commemorative gold plated tungsten coin as seen on tv...

Like those commemorative Obama plates southerners use for skeet shooting...

That is a classic Galois... just like permutation groups...

morphizm's picture

Hey, where have I seen that ID photo before?

Señor Tranche's picture

Like those commemorative Obama plates southerners use for skeet shooting...

Maybe next time I go to the range...

But with a Saiga 12 ga. and a 12 round magazine that could get expensive. 


Gunther's picture

That coin refers to the city Weimar, not the Weimar republic.

Anonymous's picture

100 E for 263 E.

Fuck mich Laufen. Sie haette gedachte war es auf Dollar notiert.

Anonymous's picture

Monosyllabic grunts don't begin to describe the raping, ransacking, pillaging and looting that peaceful people did nothing about until it was too late. As for us who watch it unfold, beware the fanatics... Germans, Japanese, Chinese, Russians, Rwandans, Serbs, Afghans, Iraqis, Palestianians, Somalis, Nigerians, Algerians, to name a few.

Anonymous's picture

Very nice comment/post, Mr. WaterWings

Anonymous's picture

Monosyllabic grunts don't begin to describe the raping, ransacking, pillaging and looting that peaceful people did nothing about until it was too late. As for us who watch it unfold, beware the fanatics... Germans, Japanese, Chinese, Russians, Rwandans, Serbs, Afghans, Iraqis, Palestianians, Somalis, Nigerians, Algerians, to name a few.

WaterWings's picture

Oh, oh! You forgot 'middle North Americans'.

Señor Tranche's picture

I think there is a definate possibility of extremism in the US in the forseeable future.  17.5% U6 and real U6 ( at 22.1% and rising (and this is probably an understatement due to the massive concentration of illegal and therefore uncounted workers in the construction industry) means a lot of angry people.  And when unemployment benefits/savings/credit cards/HELOC's run out people will do what they need to do to feed their families.  They will vote for the man who says he can fix it (though that man will be a liar).  I have already noticed a pickup in anti-immigrant sentiment, and I expect that this is just the start of something much worse to come.

Keep your gold close and your guns loaded.    

Anonymous's picture

What ? No mention of the Israelis ? !!!!!!how utterly shocking. It wouldn't be because you are Jewish. would it ? Oh, no. Yahweh forbid.

Quackking's picture

Thanks for that link. I read entire riveting piece, beginning to end.


In war, boots; in flight, a place in a boat or a seat on a lorry may be the most vital thing in the world, more desirable than untold millions. In hyperinflation, a kilo of potatoes was worth, to some, more than the family silver; a side of pork more than the grand piano. A prostitute in the family was better than an infant corpse; theft was preferable to starvation; warmth was finer than honour, clothing more essential than democracy, food more needed than freedom.


That graf closes the book. Yes, indeed.


lizzy36's picture

"we are fucked" a tag you that underscores the unique perspective of ZH.

deadhead's picture

great eye finding another easter egg lizzy!!  that was a good one......

Cognitive Dissonance's picture

"We Are Fucked" is too run-of-the-mill.

It should read "We Are Soooooo Fucked"

Anonymous's picture

"proper fucked" if you will.

Cognitive Dissonance's picture


How about we compromise with "We are so properly fucked"?

Sqworl's picture

Royally Shagged..with a gold finger!

Anonymous's picture

We are fucked so properly
Properly we are so fucked
We are fucked properly, so?

We are so froperly pucked!

blindfaith's picture

Please!  can't I at least get a kiss while I am getting fucked?  It takes my mind off the pain.

Anonymous's picture

Do I look like Mrs. Obama?

Anonymous's picture

we are sooooooooooo fucking fucked!!

faustian bargain's picture

how about just


Anonymous's picture


We are so beyond fucked - we won't even be able to catch a bus back to fucked!!

D.O.D.'s picture

yup, that's the one....

Assetman's picture

I'm most comfortable with:

"Ohhhh... we are sooooo totally fucked".

Problem Is's picture

I worked one summer with this guy Steve. He started every sentence with "Fuck..." or "Fuckin'..."

He used so many fucks that we started having contests imitating him.

"Fuckin'... Fuck... We are so fucking fucked on this fucking job... Fuck."

"Fuckin'... Where the fuck are you fuckin' guys going for funckiin' lunch?"

I kid you not.

BorisTheBlade's picture

This is one of the most useful and flexible words in english language:

Anonymous's picture

But it is an extremely lazy form of expressing oneself.

BorisTheBlade's picture

Yes it is, but you know - fuck that.

morphizm's picture

In the words of that great American poet Dick Cheney, go fuck yourself Anonymous.

ED's picture

Ah yes, to fuck or not to fuck, that is the question. Shall I compare thee...

probably not

Anonymous's picture

Osho has delivered the final verdict on the unspeakble word a long time ago, look you here:

Give him 1:30 to close in on the subject; then, he dissipates any and all questions with his boundless wisdom once and for all.

Happy Fucking.

onelight's picture

Osho?  You mean the Bagwan?

As in, the Bagwan Shree Rajneesh?

He of the long white beard, and the legions of bright-orange-cloth-wrappered followers all over Berkeley, way back when I was a beer-swilling undergrad?

He of the sprawling Oregon compound in the 80's, with his followers so besotted with his "suchness" that they gave him 95 Rolls Royces? (nice wheels, eh?)

Osho is the new name, the new program, the new ashram back in IndiaLand, and you can visit too, really you can (just be aware there's an hiv-test on entry, ya know, for all that tantric whoopereee..)

Cindy_Dies_In_The_End's picture

Only here where the world actually makes sense.

WaterWings's picture

I like the Mogambo Guru version - says it all and even 8-year-olds can focus on the message instead of the delivery:

"We're so freaking doooOOooomed!"