 |
| Sure: It’s fine when they do it to Saddam— it’s another thing when they do it to you. |
In other words, the Fed saved Wall Street by printing money, and then giving it to them in exchange for bad paper.
More Here..
Thursday, March 24, 2011
How Likely is QE-Three?
...or, “Is That Your Retirement Account You’re Holding On To So Tightly? Or Are You Just Happy To See Me?” Said The Man From The Government) So back in September 2008—in the throes of the Global Financial Crisis—the Federal Reserve under its chairman, Ben Bernanke, unleashed what was then known as “Quantitative Easing”.
They basically printed money out of thin air—about $1.25 trillion—and used it to purchase the so-called “toxic assets” from all the banks up and down Wall Street which were about to keel over dead. The reason they were about to keel over dead was because the “toxic assets”—mortgage backed securities and so on—were worth fractions of their nominal value. Very small fractions. All these banks were broke, because of their bad bets on these toxic assets. So in order to keep them from going broke—and thereby wrecking the world economy—the Fed payed 100 cents on the dollar for this crap.
In other words, the Fed saved Wall Street by printing money, and then giving it to them in exchange for bad paper.
More Here..
In other words, the Fed saved Wall Street by printing money, and then giving it to them in exchange for bad paper.
More Here..
Subscribe to:
Post Comments (Atom)
Let us not forget how Bunnypants Bush's Treasury Sec, Crank Paulson, told us we were doomed if we didn't begin giving our wealth to the banksters.
ReplyDeleteAfter a financial coup to socialise the past losses and to guarantee the future profits of the the TBTF ponzi financial sector by continual money printing ,there can be no economic recovery of the old US economy, only inflation .
ReplyDeleteThe dollar itself is dying as the world has lost confidence in American debt and the value of the dollar as a store of wealth.
Other countries will no longer try and save wealth in US dollar form and America is now reduced to buying its own Treasury bills ,counterfeiting its own dollar supply for government deficit spending by so called quantative easing, as there is a shortage of real world demand for fast devaluing dollars.
The main prop for the Fiat dollar was the OPEC monopoly centred US /UK military backed oildictators from Saudi to Nigeria that priced their oil in dollars and recirculated their profits by investing in US treasury and property bonds .
As oil was price in dollars this create a world wide demand for dollar currency in a dollar hegemony system dominating world finance and trade with the dollar viewed or accepted as THE world standard of value.
The dollar, hegemony system enabled the US to print and export $ paper in exchange for real commodity wealth, with transfers of cheap labor created commodity value from the rest of the world to the consumers living on credit in the USA.
Internally the economy was fuelled by government deficit spending , Military Keynesian to support the military industrial complex for making armaments sales and necessary wars against the Third World peoples for keeping access to cheap commodities and cheap oil.
This parasitical system required partnerships with the exploiting elites of the countries producing cheap labor industrial commodity and energy wealth. Partnerships with the elites in industrial commodity producing countries like Japan and China (or even small countries producing cheap clothing like Haiti or Cambodia )
In recent decades the USA was able run continual trade and government deficits because the US was able to print and export printed ,or digitally created dollars, including for foreign “aid” loan credits, and get back in return foreign commodity wealth in repayment.
Or, these “aid “credit loans were used to buy American armaments, American food grains etc this provided jobs for Americans and profits for armaments and grain companies.
It was really only indirect aid for the Americans own economy!
With often the only cost to America the $ paper and ink and low interest paid on treasury bills and other bond investments paid on the re-circulated paper of foreign investors.
Dollar profits on sales were later returned to the US by counties like China hooked into the system as investments in US treasuries, or as credit supply for US housing mortgage loans .
This mortgage business itself was backed by subsidies from the US government in the form of guarantees for Fannie and Freddie enabling cheaper interest loans for Americans and housing bubble profits .
The US became a giant ponzi selling dud bonds .
Americas own industrial consumer goods commodity production and the jobs in those industries , except for military equipment and military related industries like the automobile and airplane manufacturing ,were exported by the capitalist owners of those industries and jobs to the cheap labor Third World .
It was impossible to make a profit create by workers employed in those industries in overpaid high waged America.
Thus there was an international Division of labor with most industrial commodity consumer goods and the majority of industrial workers existing in the cheaper labor third World exporting commodity wealth for paper.
America as long as the strong dollar hegemony system still lasted was now converted into an unproductive of physical wealth services based consumer Ponzi economy dependent itself on foreign supplied credit and unable to service its trade and own U$ bond debts .
It would be better to just let it all crash. If you give the money to wall street and the banks what do you think happens?
ReplyDeleteThey turn around and steal more from the regular people who are in trouble in the first place. You need to fix the REAL economy, which is the consumers, not the fake middleman funny money economy centered on Wall St. and the banks.
Until this government figures that out we are just delaying the inevitable and forcing a revolution to occur. Eventually the regular schmoe just won't be able to take it anymore and you've got the 1.95 billion or so taking on the .05 left over that have everything. You can't win with those odds.
And that's why empires always fall in history. People need to really, truly study what happened in the past. The US is not the biggest or strongest empire in history, and it's actually just a blip in history in terms of length of time.
Most of the top finance and rich elites are already moving out anyway. They are putting their money in India, Japan, China and the Cayman Islands. If they time it right, the only people left over will be the government cronies that enabled them, while they are long gone with all of the US wealth.