The Federal Reserve system is truly amazing.
Built, in secret in a dark room at Jekyll Island, Georgia, it was foisted on the American people more than 100 years ago. It is patently illegal; Congress abdicated its Article I authority to control the currency to a private, unelected, and uncontrollable bank. It destroyed the value of the dollar. It necessitated the 16th Amendment and the income tax (as a prop).
It institutionalized the normal business (boom, bust, boom,…) cycle – privatizing the gains and socializing the loses. It allows for concentration of wealth in the dirty hands of a few bankers and closely associated persons. It places all responsibility and liability on the public. It allows for unlimited government: spending, debt, programs, and wars. It works in conjunction with other central banks and the Bank for International Settlements to maintain a global system of debt slavery.
That this greatest and most evil of ponzi schemes has lasted for 104 years is a testament to either the wiles of its creators and operators or to the blind stupidity of the people. It could be both. And it could signal the completely corrupted nature of the American political class. None of it unfathomable…
Those who rule the economy like gods, even in the midst of preparing for a likely transition in leadership next February, are already plotting and planning their actions for the next American recession:
While in recent weeks there has been a material increase in Fed balance sheet normalization chatter, according to a new report from Deutsche Bank analysts, it may all be for nothing for one simple reason: should the US encounter a recession in the next several years, the most likely reaction by the Fed would be another $1 trillion in QE, delaying indefinitely any expectations for a return to a “normal” balance sheet.
As a reminder, as of this month, the duration of the latest expansionary cycle – as defined by the NBER – has reached 93 months, surpassing the 92 months of the 1982-1990 cycle, and is now the third longest in history. Should the cycle persist for another 27 months, or just under two and a half years, it would be the longest period of “economic growth” in history.
It’s like they know. Like they do this on purpose. “QE”means quantitative easing. That’s fancy banker talk for printing money. In this case, the U.S. Treasury will announce a sale of $1 Trillion in federal bonds. That’s more debt and interest for the taxpayers to work off. The Fed will then “expand its balance sheet” by buying the Treasuries. These are on sale at the Treasury but the Fed will buy them through their favorite middleman, Goldman Sachs.
Goldman will mark up the price, to give the people the worst deal possible and to make a profit. Goldman will finance the initial purchase from the Treasury with a fake money loan from guess who… And how will the Fed obtain the money for the Goldman loan and for the secondary Treasury purchase? By printing money! A lot of money. $1 Trillion for Goldman. And $1 Trillion plus Goldman fees for the Fed. Wait. There’s more (and more and more): the Treasury and the government now have an extra Trillion. That’s the multiplier effect. $3 Trillion+ in extra fake money in circulation.
I do not know what Goldman’s markup is. Let’s say it’s 10%. So $3.1 Trillion is created out of thin air. Poof! The money came from nowhere but it still has an effect. And it has to be paid for despite not being real.
The government gets to spend their Trillion in debt immediately – on war, healthcare, a mission to Mars – literally the sky is the limit (or space). Later the taxpayers will pay that back to the Fed, with interest (on money that never existed). Goldman will instantly pay off its $1 Trillion loan from the Fed through the subsequent sale to the Fed. They keep their 10% – $100 Billion! Good to be them.
Now the Fed will have on the crooked books: the asset of the Treasuries, and: the liability for the $1.1 Trillion to buy them. The balance went to Goldman, remember. Given enough time and hard work and sweat from the taxpaying saps, this liability and associated asset would balance out – back to zero. But, in the meantime, the Fed has that $1 Trillion asset just sitting there! They won’t let it go to waste.
They will use it as an asset to loan more fake money to more commercial banks (in America and abroad). More multiplying. More debt based on something that doesn’t exist.
All of this excess fake money floating around drives down the value of existing money – Gresham’s Law. This makes the taxpayer’s hard-earned money – that little money they’re allowed to keep when not repaying debt and interest via taxes on loans that never really existed – less valuable even as the prices of the things they must buy rise (monetary inflation). In other words, while the globalist instantly profit, the taxpayers take it in both ends for the duration.
Yes, even as the banks instantly get richer for doing nothing, the people get poorer. And this crazed debt cycle runs parallel to the usual business cycle (boom, bust, growth, contraction, …) until the next recession, depression, or downturn – when it will all be repeated.
That’s partly the nature of these bars on the graph from Zero Hedge:
We’re at the end of the red bar (2009-present). That’s supposed to be a boom market or good times. For most they haven’t felt so good. And that’s because the people have struggled with the debt and inflation and lose of buying power from the last round of QE, circa 2008-09.
Cozy, huh? This cycle will keep repeating until the economy totally collapses or until the people finally wake up and rise up (or both).
From the graph one can also see we are, by historical average, overdue for a recession right now.
Additionally from the graph one might catch a glimpse of the Depression of 1921. It was the one immediately prior to the Great Depression. And it only lasted for six months. That’s because it was the last major depression/recession before the Fed really got the game up and running.
Cycles naturally come and go. They naturally correct themselves in very rapid fashion. It takes a central bank and a government, working together, to prolong their effects – and to build upon the cycle for the next time.
It seems the next time is coming and the criminals are already planning for it. If you don’t mind flirting with utter disaster and if you’re not ready to wake up yet, then at least heed the warnings. They’ve already told you so. If you’re caught off guard, that’s on you. Hell, it’s all going to be on you anyway…