Dollar Will Continue Slide. Groceries Will Increase

Are groceries going up in cost or is the value of the dollar going down in purchasing power?

Thousands of people are concerned that the actions of the Federal Reserve with printing more and more new money to purchase US debts is debasing the currency.

The longer our government continues its drunken spending, debt binge and looks to the Federal Reserve to provide more freshly minted dollars to buy what the Chinese and others refuse to buy the more dangerous things get.

The day of recokening will come. Scripture declares the borrower becomes slave to the lender. It also says “Ye shall do no unrighteousness in judgment, in meteyard, in weight, or in measure. Just balances, just weights, a just ephah, and a just hin, shall ye have: I am the LORD your God, which brought you out of the land of Egypt.”

So will our government obey the Word of God and stop debasing the currency? Not according to the following. Some think they should print more new green ink on white paper. Keep reading

clipped from www.reuters.com

The Fed also has a goal of buying up to $1.25 trillion of mortgage backed securities (MBS) and $200 billion of debt issued by agencies like Fannie Mae and Freddie Mac. The Fed purchases of agency MBS total $507.075 billion so far in 2009.

But last week the benchmark 10-year U.S. Treasury bond yield jumped to a six month high around 3.75 pct, while the spread between 2-year and 10-year bond yields widened to a record 2.75 percentage points.

Economists at Barclays Capital in New York have argued that the Fed should announce plans to increase its planned purchases of longer-dated Treasuries to $1 trillion from $300 billion to drive yields back down, lower home mortgage rates again, and support the embryonic economic recovery.

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