• "Spreading the ideas of freedom loving people on matters regarding metals, finance, politics, government and many other topics"

Goldhedge

Moderator
Site Mgr
Sr Site Supporter
GIM Hall Of Fame
Joined
Mar 28, 2010
Messages
54,528
Likes
105,295
Location
Rocky Mountains
#1
The Federal Reserve Is Destroying America
And wait until you hear what they're getting away with now
by Chris Martenson

Perhaps I should start with a disclaimer of sorts. Yes, I realize that the people working at the Federal Reserve, as well as the other central banks around the world, are just people. Like the rest of us, they have egos, fears, worries, hopes, and dreams. I'm sure pretty much all of them go home each night believing they are basically good and caring individuals, doing important work.

But they're destroying America. They might have good intentions, but they are working with bad models. Ones that lead to truly horrible outcomes.

One of the chief failings of central banks is that they are slaves to an impossible idea; the notion that humans are free to pursue perpetual exponential economic growth on a finite planet. To be more specific: central banks are actually in the business of promoting perpetual exponential growth of debt.

But since growth in credit drives growth in consumption, the two are concepts are so intimately linked as to be indistinguishable from each other. They both rest upon an impossibility. Central banks are in the business of sustaining the unsustainable which is, of course, an impossible job.

I can only guess at the amount of emotional energy required to maintain the integrity of the edifice of self-delusion necessary to go home from a central banking job feeling OK about oneself and one’s role in the world. It must be immense.

I rather imagine it’s not unlike the key positions of leadership at Easter Island around the time the last trees were being felled and the last stone heads were being erected. “This is what we do,” they probably said to each other and their followers. “This is what we’ve always done. Pay no attention to those few crackpot haters who warn that in pursuing our way of life we're instead destroying it.”

The most compassion I can drum up for central bankers right now is to observe that they really do have an impossible job; and their training has been simply too narrow and dogmatic for them to detect the gaping, obvious flaws in their world views. They never studied energy resource issues. Nor did they have to take any behavioral psychology classes that would have explained to them how deeply unfair economic practices are socially corrosive. Nor any history classes that would expose how such actions proved ruinous when they were applied in previous societies.

But here we are. The fact that the central bankers are either accidentally ignorant or purposely too lazy to explore the wider world of ideas is not one you can ignore any longer. Real consequences are coming and there’s no ducking them. We’re all in this big canoe of life together and the Fed and our political officials are exhorting us to paddle faster towards the roaring falls ahead.

You need to understand this. If you want to have any chance of navigating the future successfully, you have to understand what they are doing, how they are doing it, and why it will fail. If you don't take the time to sort out the mechanisms and implications...well, good luck. You’re going to need it.

For those who prefer to rest their future prospects on Knowing instead of (misplaced) Hoping, read on.

How The Fed Gives Billions Of US Taxpayer Money To Foreign Banks
Out of many truly maddening sins committed by the Fed, perhaps the most glaring of late is its practice of handing billions and billions of dollars of US taxpayer money to big foreign banks.

I explain the process in this short video:


The summary of the video is this: the Fed is now paying interest on so-called ‘excess reserves’ held at the Fed. Those 'excess reserves' include a huge chunk of money held there by foreign banks who are only too happy to receive 1% on their holdings from the Fed given that their own central banks are paying 0%, or even negative rates.

The money that the Fed pays these foreign banks is deducted from the amount remitted to the US Treasury at the end of each fiscal year.

It’s this simple: foreign banks are being paid billions of US taxpayer dollars and not one single person in the US got to vote for or approve of that action.

Let me repeat that: billions and billions of US taxpayer money is being sent to boost the profits of foreign banks. And there’s not a single thing a voting citizen can do about it.

The decision to do this has been made unilaterally by unelected people for reasons they are under no obligation to either share or even have audited by the public. I wonder if Detroit wouldn’t mind getting several billion dollars to use however it wishes, courtesy of the Federal Reserve? Or the permaculture movement? Or jobs training programs?

I’m 100% certain any of these -- or a thousand other candidates -- would be a better use than handing foreign big banks more US taxpayer money.

What The Heck Else Is The Fed Up To?
I'm going to guess that very few of you were aware of the Fed's multi-billion annual giveaway to foreign banks before you watch the video above. If you're like me, once you learned what's going on, it's hard not to start wondering: What the heck else is the Fed doing that I don't know about?

We here at PeakProsperity.com are particularly concerned about closely monitoring our central bank's next actions, as we believe their policies are creating the greatest wealth transfer of all time -- from the hard-earned savings of the public, and into the pockets of an elite few. (More on our conclusions can be read here).

As I said above, if you want to have any chance of navigating the future successfully, you have to understand what they are doing and how they are doing it.

Which is why PeakProsperity.com is producing the upcoming webinar, The End of Money, which will bring together David Stockman, Axel Merk, G. Edward Griffin -- experts on the Federal Reserve, global currencies and financial markets. During this 3-hour event, you'll hear their latest intelligence and forecasts and be able to ask each speaker questions directly. It all takes place on June 7th, and those interested can learn more about the webinar here.

But, even before the webinar's revelations, there's plenty of worrisome recent activity by the Fed you need to be aware of, right now.

In Part 2: Understanding The Fed's Endgame Is Key To Protecting Your Wealth, we reveal the additional clandestine steps the Fed is performing in the shadows to separate the American people from their hard-earned wealth, and place it in the pockets of the bankers and their cronies. In most instances, it's a case of doing exactly the opposite of what it is publicly promising.

As with the above video, very, very few people are aware of what the Fed is truly up to. But it's critical we learn, as the knowledge we gain explains a lot about both the failure of today's bubblicious asset prices to sell off, and about just how worried the Fed actually is about draining cash from the financial markets lest it create a cascading meltdown. It's only by developing an understanding of the endgame currently in play that the concerned investor can make informed choices for protecting their wealth.

https://www.peakprosperity.com/blog/109009/federal-reserve-destroying-america
 

solarion

Midas Member
Midas Member
Sr Site Supporter
Joined
Nov 25, 2013
Messages
6,914
Likes
10,867
#2
I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
~Thomas Jefferson
 

Bigjon

Gold Member
Gold Chaser
Midas Supporter
Joined
Apr 1, 2010
Messages
4,395
Likes
4,214
#3
Letting Jews run your economy is all about getting jewed.

The Federal Reserve Is A Saboteur - And The "Experts" Are Oblivious


by Tyler Durden
Jun 28, 2017 11:35 PM

Authored by Brandon Smith via Alt-Market.com,



I have written on the subject of the Federal Reserve's deliberate sabotage of the U.S. economy many times in the past. In fact, I even once referred to the Fed as an "economic suicide bomber." I still believe the label fits perfectly, and the Fed's recent actions I think directly confirm my accusations.

Back in 2015, when I predicted that the central bankers would shift gears dramatically into a program of consistent interest rate hikes and that they would begin cutting off stimulus to the U.S. financial sector and more specifically stock markets, almost no one wanted to hear it. The crowd-think at that time was that the Fed would inevitably move to negative interest rates, and that raising rates was simply "impossible."

Many analysts, even in the liberty movement, quickly adopted this theory without question. Why? Because of a core assumption that is simply false; the assumption that the Federal Reserve's goal is to maintain the U.S. economy at all costs or at least maintain the illusion that the economy is stable. They assume that the U.S. economy is indispensable to the globalists and that the U.S. dollar is an unassailable tool in their arsenal. Therefore, the Fed would never deliberately undermine the American fiscal structure because without it "they lose their golden goose."

This is, of course, foolish nonsense.

Since its initial inception from 1913-1916, the Federal Reserve has been responsible for the loss of 98% of the dollar's buying power. Idiot analysts in the mainstream argue that this statistic is not as bad as it seems because "people have been collecting interest" on their cash while the dollar's value has been dropping, and this somehow negates or outweighs any losses in purchasing power. These guys are so dumb they don't even realize the underlying black hole in their own argument.

IF someone put their savings into an account or into treasury bonds and earned interest from the moment the Fed began quickly undermining dollar value way back in 1959, then yes, they MIGHT have offset the loss by collecting interest. However, this argument, insanely, forgets to take into account the many millions of people who were born long after the Fed began its devaluation program. What about the "savers" born in 1980, or 1990? They didn't have the opportunity to collect interest to offset the losses already created by the Fed. They were born into an economy where saving is inherently more difficult because a person must work much harder to save the same amount of capital that their parents saved, not to mention purchase the same items their parents enjoyed, such as a home or a car.


Over the decades, the Fed has made it nearly impossible for households with one wage earner to support a family. Today, men and women who should be in the prime of their careers and starting families are for the first time in 130 years more likely to be living at home with their parents than any other living arrangement.

People are more likely to be living with their parents now than back during time periods in which young people actually wanted to stay close to their parents to take care of them. That is to say, most young people are stuck at home because they can't afford to do anything else, not because they necessarily want to be there.

This is almost entirely a symptom of central bank devaluation of the currency and its purchasing potential. The degradation of the American wage earner since the Fed fiat machine began killing the greenback is clear as day.

The Fed is also responsible for almost every single major economic downturn since it was established. As I have noted in the past, Ben Bernanke openly admitted that the Fed was the root cause of the prolonged economic carnage during the Great Depression on Nov. 8, 2002, in a speech given at "A Conference to Honor Milton Friedman ... On the Occasion of His 90th Birthday:"



"In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn.



Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."

Bernanke is referring in part to the Fed's program of raising interest rates into an economic downturn, exacerbating the situation in the early 1930's and making the system highly unstable. He lies and says the Fed "won't do it again;" they are doing it RIGHT NOW.

The Fed was the core instigator behind the credit and derivatives bubble that led to the crash in 2008, a crash that has caused depression-like conditions in America that we are still to this day dealing with. Through artificially low interest rates and in partnership with sectors of government, poor lending standards were highly incentivised and a massive debt trap was created. Former Fed chairman Alan Greenspan publicly admitted in an interview that the central bank KNEW an irrational bubble had formed, but claims they assumed the negative factors would "wash out."

Yet again, a Fed chairman admits that they either knew about or caused a major financial crisis. So we are left two possible conclusions — they were too stupid to speak up and intervene, or, they wanted these disasters to occur.


Today, we are faced with two more brewing bubble catastrophes engineered by the Fed: The stock market bubble and the dollar/treasury bond bubble.

The stock market bubble is rather obvious and openly admitted at this point. As the former head of the Federal Reserve Dallas branch, Richard Fisher, admitted in an interview with CNBC, the U.S. central bank in particular has made its business the manipulation of the stock market to the upside since 2009:



"What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009.



It's sort of what I call the "reverse Whimpy factor" — give me two hamburgers today for one tomorrow."

Fisher went on to hint at his very reserved view of the impending danger:



"I was warning my colleagues, Don't go wobbly if we have a 10 to 20 percent correction at some point... Everybody you talk to... has been warning that these markets are heavily priced." [In reference to interest rate hikes]

The Fed "front-loaded" the incredible bull market rally through various methods, but one of the key tools was the use of near-zero interest rate overnight loans from the central bank, which corporations around the world have been exploiting since the 2008 crash to fund stock buybacks and pump up the value of stock markets. As noted by Edward Swanson, author of a study from Texas A&M on stock buybacks used to offset poor fundamentals:



"We can't say for sure what would have happened without the repurchase, but it really looks like the stock would have kept going down because of the decline in fundamentals... these repurchases seem to hold up the stock price."

In the initial TARP audit, an audit that was limited and never again duplicated, it was revealed that corporations had absorbed trillions in overnight loans from the Fed. It was at this time that stock buybacks became the go-to method to artificially prop up equities values.

The problem is, just like they did at the start of the Great Depression, the central bank is once again raising interest rates into a declining economy. This means that all those no-cost loans used by corporations to buy back their own stocks are now going to have a price tag attached. An interest rate of 1% might not seem like much to someone who borrows $1000, but what about for someone who borrows $1 Trillion? Yes, borrowing at ANY interest rate becomes impossible when you need that much capital to prop up your stock. The loans have to be free, otherwise, there will be no loans.


Thus, we have to ask ourselves another question; is the Fed really ignorant enough to NOT know that raising rates will kill stock markets? They openly admit that they knew what they were doing when they inflated stock markets, so it seems to me that they would know how to deflate stock markets. Therefore, if they deliberately engineered the market rally with low interest rates, it follows that they are deliberately engineering a crash in markets using higher interest rates.

Mainstream economists and investment "experts" appear rather bewildered by the Federal Reserve's exuberance on rate hikes. Many assumed that Janet Yellen would hint at a pullback from the hike schedule due to the considerable level of negative data on our fiscal structure released over the past six months. Yellen has done the opposite. In fact, Fed officials are now stating that equities and other assets appear to be "overvalued" and that markets have become complacent. This is a major reversal from the central bank's attitude just two years ago. The fundamental data has always been negative ever since the credit crisis began. So what has really changed?

Well, Donald Trump, the sacrificial scapegoat, is now in the White House, and, central bank stimulus has a shelf life. They can't prop up equities for much longer even if they wanted to. The fundamentals will always catch up with the fiat illusion. No nation in history has ever been able to print its way to prosperity or even recovery. The time is now for the Fed to pull the plug and lay blame in the lap of their mortal enemy - conservatives and sovereignty champions. They will ignore all financial reality and continue to hike. This is a guarantee.

In the Liberty Movement the major misconception is that the Fed is attempting to "catch up" to the next crash by raising interest rates so that they will be ready to stimulate again. There is no catching up to this situation. The Fed has no interest in saving stock markets or the economy. Again, the fed has raised rates before into fiscal decline (during the Great Depression), and the result was a prolonged crisis. They know exactly what they are doing.

What does the Fed gain from this sabotage? Total centralization. For example, before the Great Depression there used to be thousands of smaller private and localized banks in America. After the Great Depression most of those banks were either destroyed or absorbed by elite banking conglomerates. Banking in the U.S. immediately became a fully centralized monopoly by the majors. In a decade, they were able to remove all local competition and redundancy, making communities utterly beholden to their credit system.

The 2008 crash allowed the banking elites to introduce vast stimulus measures requiring unaccountable fiat money creation. Rather than saving America from crisis, they have expanded the crisis to the point that it will soon threaten the world reserve status of our currency. The Fed in particular has set the U.S. up not just for a financial depression, but for a full spectrum calamity which will include a considerable devaluation (yet again) of our currency's value and resulting in extreme price inflation in necessities.

The next phase of this collapse will include the end of the dollar as we know it, making way for a new global currency system that uses the IMF's SDR basket as a foundation. This plan is openly admitted in the elitist run magazine 'The Economist' in an article entitled "Get Ready For A Global Currency By 2018."

It is important to understand what the Fed actually is - the Fed is a weapon. It is a weapon used by globalists to destroy the American system at a given point in time in order to clear the way for a new single world economy controlled by a single managerial entity (most likely the IMF or BIS). This is the Fed's purpose. The central bank is not here to save the U.S. from harm, it is here to make sure the U.S. falls in a particular manner — a controlled demolition of our fiscal structure.