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Oil rises above $85 after Fed bond buying decision (Bye Bye Dollar)
Yahoo Finance ^ | Thursday November 4, 2010, 2:16 am | AP

Posted on 11/03/2010 11:44:13 PM PDT by 11th_VA

Oil rises above $85 a barrel in Asia after Fed resolves to buy $600 billion of Treasurys

BANGKOK (AP) -- Oil jumped above $85 a barrel in Asia on Thursday as the dollar weakened slightly following the U.S. Federal Reserve's announcement it will buy $600 billion dollars of Treasurys to stimulate the U.S. economy.

The announcement wasn't a surprise for markets but it underlined expectations that the dollar could weaken further and push up prices for commodities including oil. Since crude is priced in dollars, a weaker dollar makes it more attractive to buyers using foreign currencies.

snip

In its weekly report, the Energy Department said crude inventories increased by 2 million barrels to 368.2 million barrels for the week ending Oct. 29. The total was 9.6 percent more than the year-ago level and remained at the upper limit of the average range for this time of year.


(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Breaking News; Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: economy; gold; oil; qe
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In its weekly report, the Energy Department said crude inventories increased by 2 million barrels to 368.2 million barrels for the week ending Oct. 29.

Inventories increased and the price went UP !!!

I'm not giving financial advice, but thank God I'm heavily in commodities ...

1 posted on 11/03/2010 11:44:16 PM PDT by 11th_VA
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To: 11th_VA

“Inventories increased and the price went UP !!! “

Strap in, we are in for a bumpy ride.


2 posted on 11/03/2010 11:46:53 PM PDT by jessduntno (9/24/10, FBI raids home of appropriately named AAAN leader Hatem Abudayyeh, a friend of Obama.)
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To: 11th_VA

PS - That chart is how much it costs (In Dollars) to buy a crappy Euro ...


3 posted on 11/03/2010 11:47:34 PM PDT by 11th_VA (Things that have never happened before, happen every day ....)
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To: 11th_VA

And the price of oil this week ...

4 posted on 11/03/2010 11:58:56 PM PDT by 11th_VA (Things that have never happened before, happen every day ....)
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To: 11th_VA

10 years ago it only cost $.85


5 posted on 11/04/2010 12:04:12 AM PDT by MrShoop
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To: 11th_VA
Are Americans this GD DUMB?No election will do anything until the federal no reserve is OUT of America.They are running this country.Andrew Jackson would puke at what politicians have allowed!OUTLAW fiat money!Dumb dumb dumb!America is a bankers cash cow idiots!
6 posted on 11/04/2010 12:07:05 AM PDT by taxtruth
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To: taxtruth

The Weimar Republic of pre-Nazi Germany and Mugabe’s Zimbabwee probably had simular b.s. excuses for their inflations. But it is really just an excuse. The real reason is to finance the Fed red ink. The Govt buying its own debt. Financial incest.


7 posted on 11/04/2010 12:13:32 AM PDT by OldArmy52 (Obama & the "Dem Party" have proved America is ready for Fascism/Socialism.)
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To: taxtruth

“Are Americans this GD DUMB”

Many, maybe most I know are completely clueless about the Federal Reserve.


8 posted on 11/04/2010 12:14:03 AM PDT by Kimberly GG ("Path to Citizenship" Amnesty candidates will NOT get my vote! DeMint, 2012)
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To: Kimberly GG
"Are Americans this GD DUMB”

They certainly are in Califonia...

Voted in Boxer-rocks,

Jerry "Moonbeam" Brown

approved the CA version of Cap and Trade

any questions....?

9 posted on 11/04/2010 12:27:20 AM PDT by spokeshave (Islamics and Democrats unite to cut off Adam Smith's invisible hand)
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To: taxtruth

Are Americans this GD DUMB?

_________________________

Yes. Did you hear who is going to be on Oprah tomorrow?

/s


10 posted on 11/04/2010 12:27:53 AM PDT by volunbeer
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To: 11th_VA

This is what happens when the guys at the switch don’t know what they’re doing.


11 posted on 11/04/2010 1:08:37 AM PDT by Tzimisce (No thanks. We have enough government already. - The Tick)
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To: 11th_VA

So my European vacation in August was well timed!


12 posted on 11/04/2010 1:28:40 AM PDT by Uncle Miltie (Stimulus. 0bamaCare. Cap and Tax. 9/11 Victory Mosque. TARP. Amnesty. Summer of Recovery.)
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To: taxtruth

It’a about the only institution left that is able to act.

The Pres. is a lame duck now. Because many think he’s only second best now the first and the second best ideas will not turn into decissions.


13 posted on 11/04/2010 1:51:21 AM PDT by Rummenigge (there are people willing to blow out the light because it casts a shadow)
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To: OldArmy52

Ben should join Bernie as his permanent roomate.


14 posted on 11/04/2010 1:52:05 AM PDT by screaminsunshine (the way to win this game is not to play)
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To: Tzimisce

There’s noone left holding an effective switch to the economy.

Dems don’t have them anymore - GOP hasn’t got it yet - the next 2 years the FEd will be the only institution that theoretically could change the desperate situation of the US - and the only means they have is print money.

The pres. was planning to force it down the throat of the country - invest in public schools and medicare - but will not be able to do it anymore - you didn’t want it - and there’s reason in not wanting it.

The GOP is planning to wait for the market to react (just don’t do anything safe public spending) - that’s old school american capitalism and it did work. Once.

Here’s the catch: The biggest piece of pork is in defense and cutting it down like the brits is probably something that will kill the rest of economy, education, science and strength of the US.

Furhter catch: There’s no industry that could run with the cheap money now available - ‘society of services’ doesn’t work in such a large scale as the US economy. Without an industrial base recovery by market powers (large pool of cheap labour, low consumption - lower prices) is impossible.

To bake more industry, ingredients are: Engineers and Production sites - but noone is going to invest in it - neither those who invest in their personal education (no money in pockets - no future in sight) - nor those who’d build production plants (much better alternatives).

Best alternative for the industry is to go abroad where there’s a lot of educated people - it’s not even cheaper elsewhere - HR has become awfully cheap in the US.

Education is, what’s missing - ivy league universities for exotic fruit scientists is not enough - the US needs bread and butter engineers and experts in broad scale.

It is called ‘human capital’ and will be as important as commodities in the future.


15 posted on 11/04/2010 2:10:44 AM PDT by Rummenigge (there are people willing to blow out the light because it casts a shadow)
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To: OldArmy52

It seems to me it is exactly the same as if the US Government printed the money for their spending . . . if so, why do we need the Fed? Why route all this spending into debt and interest payments, and route all the benefit through the banks? The US Govt. if it eliminated the Fed, could print the money needed for government operations, and pay for the goods and services it needs, routing the money through industries other than banks.


16 posted on 11/04/2010 2:34:24 AM PDT by November 2010
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To: Tzimisce
This is what happens when the guys at the switch don’t know what they’re doing.

--------------------------

Bernanke loves to print more dollars (Monetary easing).

Fire up the presses.

And make sure Ben doesn't run out of ink printing all that money - with nothing backing it up!

Obama bamboozled millions... gave them the old 'okee doke.'

Kick the bums out, repeal the empty suit's policies, cut taxes, cut entitlements, cut the red tape, cut the budget by 33% [except defense], close the border, kick all illegals out and drill baby drill!

obama-ice-cream15-sm

17 posted on 11/04/2010 2:36:14 AM PDT by BobP (The piss-stream media - Never to be watched again in my house)
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To: spokeshave

“Are Americans this GD DUMB?”

“They certainly are in Califonia...

Voted in Boxer-rocks,
Jerry “Moonbeam” Brown
approved the CA version of Cap and Trade
any questions....?”

Alas, it is sad but true. Not smart as a pet rock they are. Stone stupid they are. Brown not fit to lick a toilet clean and Box of Rocks Barbera, who worked so hard for that title so we would call her Senator. California is a lost cause at this point, having jumped the shark successfully for the last time.

It is also a sad fact that elections have consequences. Even though we took the House yesterday, we may have only put a few speed bumps in the O’s way. But while all this political theatre was going on, Ben Bernanke announced the monetization of another $600 billion of our debt. They are purposely collapsing our economy and the dollar. The manipulations going on behind the scenes are being missed. Who is choreographing the O’s Kabuki Dance? Obama clearly telegraphed that he ain’t changing directions. Hugo didn’t get to where he is today by changing directions. What can’t be done by Congress can and will be done by executive order. They are not backing down.

In 2010, Americans decided they wanted hope and change. They gladly took the bait, not realizing that it was a carefully laid trap which would leave them gravely wounded (and they wouldn’t even know it). Isn’t it odd that Obama is accomplishing what Osama was unable to do. He wanted to collapse our economy did he not? America still has sleepers in its eyes.


18 posted on 11/04/2010 2:36:44 AM PDT by awaken2spirit (When one fornicates with ignorance, the result of that union is chaos.)
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To: 11th_VA

Here’s the worst part - the ONLY cure for inflation is unemployment. So once inflation kicks in, it will take a heavy round of high unemployment to eliminate future expectation of inflation.


19 posted on 11/04/2010 2:41:30 AM PDT by Hoodat ( .For the weapons of our warfare are mighty in God for pulling down strongholds.d)
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To: Tzimisce

“This is what happens when the guys at the switch don’t know what they’re doing.”

Tell Casey Jones about it. America pulled an Urkel in 2010, but it’s been a long time coming. 2010 midterms and the O heard nothing. Damn the torpedos and full speed ahead. There was no victory yesterday. Maybe just a slight delay in the timetable. Nightmare on Pennsylvania Avenue ain’t goin’ away.


20 posted on 11/04/2010 2:54:50 AM PDT by awaken2spirit (When one fornicates with ignorance, the result of that union is chaos.)
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To: jessduntno
We can still rely on wind power. ;-)

http://www.neatorama.com/2008/02/25/wind-generator-accident/

21 posted on 11/04/2010 3:52:44 AM PDT by Average Al
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To: 11th_VA

Australian dollar just crossed the parity mark too.


22 posted on 11/04/2010 4:39:07 AM PDT by beagleone
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To: BobP
Kick the bums out, repeal the empty suit's policies, cut taxes, cut entitlements, cut the red tape, cut the budget by 33% [except defense], close the border, kick all illegals out and drill baby drill!

Makes perfect sense to me.

23 posted on 11/04/2010 4:39:23 AM PDT by babyfreep
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To: spokeshave

I don’t live there and never will.


24 posted on 11/04/2010 5:33:15 AM PDT by Shady (God Bless the United States of America...and your gift of LIBERTY to all!)
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To: BobP
Kick the bums out, repeal the empty suit's policies, cut taxes, cut entitlements, cut the red tape, cut the budget by 33% [except defense], close the border, kick all illegals out and drill baby drill!

Sounds like a plan...we need cash? We should be drilling our ass off as we speak...

25 posted on 11/04/2010 5:34:44 AM PDT by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: Rummenigge

Very good info, thank you for posting.


26 posted on 11/04/2010 5:39:37 AM PDT by Shady (God Bless the United States of America...and your gift of LIBERTY to all!)
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To: 11th_VA
Let me see if I understand the theory here... devalue the dollar (fancy word for inflation) folks go broke because they can't afford to live. Then the economy gets better? Brilliant, Krugman. Just brilliant. Your bearded sock puppet at the Fed is, to be frank, a moron.
27 posted on 11/04/2010 6:02:04 AM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: 11th_VA
One can only assume, after studying this matter, that our goose is cooked and that this is the last political gasp of The Failed Obama Administration©.
28 posted on 11/04/2010 6:03:22 AM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: 11th_VA
When supply is up, demand is relatively constant and the price is going up, it can only mean the value of your dollar is going down. Zimple, no?
29 posted on 11/04/2010 6:05:46 AM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: April Lexington

Or, devalue the US$, increase the price of imports and commodities, increase general prices, increase wages and incomes in a lagging manner, pay off the deficit in devalued dollars

A rising tide raises all boats. The boats tied to the pier on a short rope or at anchor will not rise. That would be banks and bond holders and creditors.

The procedure is classic governance since the beginning of time. Inflation is always the cure for failure of the governors


30 posted on 11/04/2010 6:10:00 AM PDT by bert (K.E. N.P. N.C. +12 ..... Greetings Jacques. The revolution is coming)
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To: 11th_VA
RUBINI: QE2 Will Be Followed By QE3 And QE4 And None Will Stop World From Going To Hell In Handbasket
31 posted on 11/04/2010 6:30:15 AM PDT by blam
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To: Kimberly GG
most I know are completely clueless about the Federal Reserve.

Yep, in bed with the "Fed". Most couldn't tell you what the Federal Reserve is or does. . . just someone important with some "stash" to give out.
32 posted on 11/04/2010 7:07:03 AM PDT by mstar
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To: 11th_VA
I doubt China is going to take our complaints of currency manipulation by them seriously considering what we are doing.

Our government is worried about inflation being too low. With low inflation your money buys more, but it is harder to pay down the debt you've built up. The government would also like to pay back it's own debt with dollars that are worth less because they have printed more.

It just hurts people who have a lot more savings than they have debt. Obviously our government doesn't care about such people. It's those up to their ears in debt and who are dependent on the government that are their favored constituents.

33 posted on 11/04/2010 7:13:16 AM PDT by untrained skeptic
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To: 11th_VA

Looks like the USA needs to have a yard sale...drill and dig.


34 posted on 11/04/2010 7:14:47 AM PDT by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: OldArmy52

As I posted yesterday, this is exactly what Germany did. Only the Weimar inflation wasn’t a result of Weimar policies; the inflation was a result the Kaiser’s government’s financing of war debt. The Germans paid for the war by internalizing debt (selling bonds to themselves) with short term notes and monetizing it when it came due. We are doing exactly the same thing.

The Fed is not evil. There were not that many complaints about the Fed in the last decade when it kept inflation and interest rates down. It could do that because the Federal budget was more or less in balance. The only, ONLY reason we are headed for Weimar/Argentine inflation is the federal governments runaway spending. Hell, the Feds don’t even HAVE a budget. The Fed has no choice; it HAS to paper over the debt. IF the republican controlled House can create a rational budget and get spending under control, the inflation goes away.


35 posted on 11/04/2010 7:32:31 AM PDT by henkster (A broken government does not merit full faith and credit.)
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To: OldArmy52

The Weimar Republic of pre-Nazi Germany and Mugabe’s Zimbabwee probably had simular b.s. excuses for their inflations. But it is really just an excuse. The real reason is to finance the Fed red ink. The Govt buying its own debt. Financial incest.””

This is the method the govt will use to inflate their way out of debt. Get ready for hyperinflation folks. It’s coming.


36 posted on 11/04/2010 7:36:35 AM PDT by Neoliberalnot ((Read "The Grey Book" for an alternative to corruption in DC))
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To: OldArmy52
"The Govt buying its own debt. Financial incest."

The Federal Reserve is a privately-owned bank whose owners are not fully disclosed.

They are trying to offset the amount of money destroyed through debt default with new money created from the issuance of new debt to keep the money-supply from collapsing.

The Fed creates fiat with a few keystrokes and then purchases Treasuries and other debt instruments. No big deal if you buy worthless debt with money you created out of nothing.

37 posted on 11/04/2010 7:47:10 AM PDT by GourmetDan (Eccl 10:2 - The heart of the wise inclines to the right, but the heart of the fool to the left.)
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To: spokeshave

“Are Americans this GD DUMB”
They certainly are in Califonia...

Voted in Boxer-rocks,

Jerry “Moonbeam” Brown

approved the CA version of Cap and Trade “””

May have voted in Kamela Harris for Attorney General. She was city attorney for San Fran & she NEVER asked for the death penalty on any case she prosecuted.

Now Calif has Jerry Brown—who gave them Calif Supreme Court Justice ROSE BIRD & he may be coupled with Harris for at least the next 4 years.

This is not good for crime statistics or police morale in California.


38 posted on 11/04/2010 7:49:45 AM PDT by ridesthemiles
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To: awaken2spirit

O heard nothing.””

O and his backers heard well yesterday, but O and his minions have evil intent and that spells the breaking of the US economy, US power, and US capitalism—these are the hallmarks of this administration’s goals.


39 posted on 11/04/2010 7:55:02 AM PDT by Neoliberalnot ((Read "The Grey Book" for an alternative to corruption in DC))
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To: 11th_VA

Remember that the Euro is also weakening. And both Russia and China are pegging their currencies (Russia to the Euro, China to the Dollar).


40 posted on 11/04/2010 7:55:37 AM PDT by Thunder90 (Fighting for truth and the American way... http://citizensfortruthandtheamericanway.blogspot.com/)
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To: ridesthemiles

The Blue State white liberals might, I say might have enjoyed their last election as the self selected leaders of the Democrats. None of those pasty political turkeys can deliver squat.


41 posted on 11/04/2010 8:07:12 AM PDT by junta (S.C.U.M. = State Controlled Unreliable Media)
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To: henkster
The Fed is not evil.

So, an organization that was designed to enrich the few at the expense of many, and ultimately enslave the many, is not evil?

Earning interest on money that was created from thin air and is backed by debt (less than nothing) is not evil?

"Divers weights, and divers measures, both of them are alike abomination to the LORD. Prov. 20:10"

42 posted on 11/04/2010 8:12:17 AM PDT by Disambiguator
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To: 11th_VA

I’m surprised the headline wasn’t:

“Oil rises above $85 after major Republicans gains in Congress”


43 posted on 11/04/2010 8:24:18 AM PDT by Right Wing Assault (The Obama magic is <strike>fading</strike>gone.)
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To: Neoliberalnot

“O and his backers heard well yesterday, but O and his minions have evil intent and that spells the breaking of the US economy, US power, and US capitalism—these are the hallmarks of this administration’s goals.”

Backers, yes. Minions, no. 0 is an empty suit, and a stupid and lazy one at that. His small brain is fertile ground for the ideas of those who are controlling and handling him. He thinks he controls TOTUS, but it controls him. I think he really believes he is saving America, not bankrupting it, because he’s been told that’s what his policies are doing. That’s why he’s so effective as a communicator. He sincerely believes the lies he’s telling because he’s too stupid to realize they are lies.

All the while, his handlers are letting him play Emperor.


44 posted on 11/04/2010 8:25:20 AM PDT by henkster (A broken government does not merit full faith and credit.)
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To: November 2010

That would save the $413B in interest .gov paid last year.


45 posted on 11/04/2010 9:03:48 AM PDT by griswold3 (Employment is off-shored, away from govt. regulations, price pressure groups, and liabilities.)
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To: November 2010
It seems to me it is exactly the same as if the US Government printed the money for their spending . . . if so, why do we need the Fed? Why route all this spending into debt and interest payments, and route all the benefit through the banks?

Yes, that's essentially how our Greenbacks were done --- straight issue from the Department of the Treasury, starting long before there was any Federal Reserve.

However, the Kenyan Clown and his circus are just too pig ignorant to know even that amount of financial history.

46 posted on 11/04/2010 9:17:45 AM PDT by snowsislander (In this election year, please ask your candidates if they support repeal of the 1968 GCA.)
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To: 11th_VA

The fed has reduced the value of the dollar. The media will NOT let the public know this. Prices will go up. Simple minded individuals will confuse the rising prices with rising prosperity. Democrats and media types will crow that the economy has recovered.


47 posted on 11/04/2010 10:29:15 AM PDT by Leftism is Mentally Deranged (Annoying liberals is my goal. I will not be silenced.)
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To: April Lexington

our local oil delivery co. set my budget payment so high this year I’ve already worked up quite a significant credit.
I was planning on asking them if I could skip December and use the cash for some Christmas shopping.
fat chance of that happening now.

Once again - our gov policy has caused our family to clamp down on ALL spending.


48 posted on 11/04/2010 11:09:25 AM PDT by Scotswife
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To: 11th_VA

bump for later


49 posted on 11/04/2010 12:00:41 PM PDT by PatriotGirl827 (Lord Jesus, direct my mind, possess my heart, transform my life)
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To: 11th_VA

Congress had better put a stop to Weimar Germany Ben. He is destroying our dollar, or savings, And much more. All to save his banking buddies.

I wish I had bought lots of Gold.


50 posted on 11/04/2010 12:40:22 PM PDT by Revel
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