Backlash against Fed's $600 billion QE2 builds
GLENN: But because of quantitative easing, and let me give you the warning yesterday, from the Chinese, the unbridled printing of dollars is the biggest risk to the global economy. This is according to an advisor of the Chinese Central Bank. He said: Quote as long as the world issues no restraint in global currencies such as the dollar and this is not easy, then the occurrence of the crisis is inevitable as quite a few westerners lament." So what does that mean? Most people don't understand when you read these headlines on the drudge report today. Oil above 87 -- I'm sorry, oil at $87. Backlash builds against Feds pumping. Dollar at risk of crashing, triggering inflation. Brazil ready to retaliate for U.S. move in currency war. Chinese warns Fed move is a huge risk. Germany concerned. Most people don't understand what any of that means. I'm going to be cryptic here, because I cannot tell you the names of the people involved, because I don't have the permission of all of the people involved to tell you this story. But you know me. You know me well enough to know that I'm not talking to -- I'm not talking to fringe players. I am talking to people -- when I have told you things about TARP, when I've told you things, it is because I have enough contacts with people who are not peripheral players but players that have been in these rooms as things have happened. Yesterday I had a conversation with somebody. And I had a conversation with somebody who two weeks ago wouldn't have believed me. And this is a -- help me out here, guys -- this is an individual who.
STU: Very well connected.
GLENN: Very well connected.
PAT: Knows people in financial circles at upper levels.
GLENN: And has a history that you would know, that you would recognize. And is in the know. Is in the game with the highest levels. She came to me and she said to me yesterday that, after the TV show -- and I have been teasing this chart that is being built for tonight's television show, that shows in 15 days, not the next 15 days, in any given 15-day period.
PAT: After some major event.
GLENN: Major event, a 9/11 happens, a big event or China. And this is the event we use. China just says we're not going to buy any more of America's debt. Now, it could be -- the event could be the Congress and the republicans keep to their promise and do not raise the debt ceiling. That's a big enough event to trigger this. From the day that event happens, it will take about 13 days for the world to change as you know it. And when I say that, I mean everything changes. Global catastrophe. Global panic. What I told you three years ago, four years ago was coming, three years ago when it started to happen and they were talking about TARP, was that three years ago? I think it was. Wasn't it?
STU: Two, right?
GLENN: Two years? When that started to happen, I told you we're headed for a mountain and we're going to crash into the mountain. You've got to prepare. What they're trying to do with TARP was take us down into the trees. Well, they have prepared. Again, the question is, have you? What happens? China says we're not going to buy any more bonds. The world freaks. And in the few days, the Fed comes in and they say: We're going to raise rates. We're going to raise the yield on bonds. So you can make a lot of money. Everybody buy bonds. What happens? Europe raises them faster than we do, because as soon as people lose confidence in our bonds, the rest of the world says: Wait a minute, wait a minute, buy us. So they start competing. Pour your money here. Everybody is competing. Gold is competing. Food is competing. Everything is competing for all these dollars that are now no longer going to go into bonds. And so the world gets spooked. And it lasts about a week. Then things just start coming apart at the seams. And Asia starts to crash. The Asian markets crash. The European markets crash. The Dow crashes. I mean, we're talking about serious crashes.
PAT: And this person said that a week ago they wouldn't have believed any of this scenario, right?
GLENN: Listen to my monologue. Listen to me explain it over the last couple of days what quantitative easing means and what it means to your food prices, and then laying out on the board, which I have in the last couple of days, what's coming tonight, I'm going to show you this tonight, I'll show you this 15-day scenario. She said she was in a room and she said there were three speakers there. And these were -- how would you describe these three speakers?
PAT: Heavy weights. Financial heavy weights.
GLENN: Heavy weights. Governmental and outside financial heavy weights.
STU: Non-partisan. Not a partisan group.
GLENN: Yes, people who have been -- people who are viewed as keels, wouldn't you say?
STU: If I knew what you meant by "keels," then yes.
GLENN: An even steady keel of a ship.
STU: Even keel?
GLENN: Yes.
STU: That's what that means. I just knew even keel meant even. I went with the even part of keel.
GLENN: Something that keeps the ship upright. Somebody that's not one side or the other. They're just right down the center.
PAT: Even keeled people.
STU: People paid a lot of money to make sure they're making measured decisions.
GLENN: Very measured. First one gets up and they're having this little breakfast and the first one gets up and says, hey, I want to tell you what I think is coming. She says -- we're all sitting around going: You gotta be kidding me. She said the next person gets up and says -- it's actually a little worse than what he said. She said -- she said now the real guy, who is like rock solid, nobody, everybody in the room was expecting him to get up and say: These guys, I disagree with. Instead he got up and he said: It may not happen that way, but there's a good shot that this stuff happens. And people have to be prepared.
STU: You might expect me to disagree with these two.
GLENN: Yes. But I can't disagree with them. I think there's a chance that this stuff happens. And people must be prepared.
PAT: And this guy said it wasn't inevitable, right? But there's a good shot.
GLENN: I'm not saying it's inevitable either. I'm just saying that these things are growing, growing concerns. What people said about they would never -- they testified a year ago that they would never buy their own debt and they testified under oath. They're doing it in historic records.
PAT: Because these things are possible, this is why you're shining the light on it, not to fear monger, but to get people -- I've always disagreed with the world renowned FDR statement: We have nothing to fear but fear itself. What does that even mean? We have nothing to fear but being unprepared. If you are prepared, you need not fear anything, because you've got something -- you've got a fall-back position.
GLENN: You don't have to worry about -- you don't have to worry about your retirement if you prepared for your retirement.
PAT: Right. What's scary is retiring and you've got nothing. You're looking around thinking I've got Social Security, 900 a month?
GLENN: If you've put nest eggs away and you're not in great debt, because you prepared for the possibility of unemployment, you don't fear unemployment.
PAT: So how do you get prepared in something like this? You get food.
GLENN: You buy food.
PAT: If nothing happens, good.
GLENN: The thing we do know is coming is inflation on food. You'll have deflation in some things and inflation wherever there's a hard commodity. Oil. So that means your tires are going to be more expensive. That means anything made with an oil-based product.
STU: Which is everything.
GLENN: Which is everything, that is going to be more expensive. Gold is going to be more expensive. But wheat, flour, sugar. Sugar has gone up like 58 percent in three months, did you know that.
STU: No. How much?
GLENN: Like 58 percent.
STU: Has it really?
GLENN: But the price of sugar hasn't. The commodity sugar has. So what's happened here is what you're paying for on the shelf has not been passed on to you yet. And all of these producers, they know -- they've been holding on and they're like, okay, I can't -- I'm General Mills, I'm hoping this is going to pass. We'll eat it for a while because, for instance, if we pass on this then it's going to hurt the restaurants and everything else. And the restaurants are going to -- they're going to have to pass it on to their customers. Everybody's been holding on as much as they can because people start to hold onto their money tighter and that makes things worse. General Mills just came out and said, it's, what, a five percent increase in cereal. This is before the quantitative easing. Five percent increase in cereal. Sugar is now going up I think 10, 12, or 18 percent. All of these things are really starting to climb in price. The best case scenario is it's going to be more expensive to buy food and gasoline and oil-based products in the coming months. Tonight I will show you catastrophic collapse and what it means. In 15 days from an event, a 9/11, let's be crazy and let's say somebody sends packages with bombs all around the world and planes fall out of the sky.
STU: That would never happen, come on.
GLENN: I know. A catastrophic event, and how it leads in 15 days to a new world order. This woman said -- she came up to me yesterday and said: A week ago, a week ago I wouldn't have believed you. But I sat in this meeting and these guys said that's what's coming. They think it's a possibility that's really coming. We all sat there with our mouths open. Now, no one will tell you these things because they believe that, oh, well, it's crazy and the people are too stupid, they'll panic. No you won't. You panic when you don't have information. You panic when you can't see what's around the corner.
PAT: You panic when it's too late to do anything about it.
GLENN: Exactly right.
PAT: That's why this is so important.
GLENN: It's not too late to do anything. Because you -- and I've said this to you now for a long time. You must be a leader. You must be a leader, because there will be people that will pull us apart. We must stay together.
see more at glen beck site on QE2 and the FED printing money press.
see more about QE2 at www.glennbeck.com
