Quantitative easing

The Federal Reserve Has No Integrity

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PaulCraigRoberts  March 31 2014

PaulCraigRobertsAs we documented in previous articles, the gold price is driven down in the paper futures market by naked short selling by the Fed’s dependent bullion banks. Some people have a hard time accepting this fact even though it is known that the big banks have manipulated the LIBOR (London Interbank Overnight Rate – London’s equivalent of the Fed Funds rate) interest rate and the twice-daily London gold price fix.

Almost every week it is possible to illustrate the appearance of a large number of contracts shorting gold at times of day when trading is thin. The short-selling triggers stop-loss orders and margin calls and hammers down the gold price.

The Fed has resorted to this practice in order to protect the value of the US dollar from Quantitative Easing.

In order for the Fed to effectively support the reserve status of the U.S. dollar by pushing it higher when it starts to drop, the Fed has also to prevent the price of gold from rising. Intervention in the gold market has been occurring for a long time. However, in the last several years the intervention has become blatant and desperate, as rising concerns about the dollar are causing countries such as China and Russia to accumulate fewer dollars and more gold.

During the month of March the Fed and the big banks implemented aggressive intervention against the rising price of gold and the plunging value of the U.S. dollar. Events in Ukraine may have stimulated demand for physical gold and selling of the U.S. dollar, but it was mainly further erosion of the U.S. economy, as reflected in more deterioration of economic data released during March, that pushed gold up and the dollar down.

The dollar index is a “basket” of currencies used to measure the relative value of the U.S. dollar. The largest components of this basket are the euro and the yen (it also includes the British pound, Canadian dollar, Swedish krona and Swiss franc). During February and March, the dollar started to decline in response to increasingly negative U.S. economic reports, continued Fed money printing (QE) and the Ukraine crisis.

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How Economists And Policymakers Murdered Our Economy

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PaulCraigRoberts  January 25 2014

PaulCraigRobertsThe economy has been debilitated by the offshoring of middle class jobs for the benefit of corporate profits and by the Federal Reserve’s policy of Quantitative Easing in order to support a few oversized banks that the government protects from market discipline. Not only does QE distort bond and stock markets, it threatens the value of the dollar and has resulted in manipulation of the gold price. See http://www.paulcraigroberts.org/2014/01/17/hows-whys-gold-price-manipulation/

When US corporations send jobs offshore, the GDP, consumer income, tax base, and careers associated with the jobs go abroad with the jobs. Corporations gain the additional profits at large costs to the economy in terms of less employment, less economic growth, reduced state, local and federal tax revenues, wider deficits, and impairments of social services.

When policymakers permitted banks to become independent of market discipline, they made the banks an unresolved burden on the economy. Authorities have provided no honest report on the condition of the banks. It remains to be seen if the Federal Reserve can create enough money to monetize enough debt to rescue the banks without collapsing the US dollar. It would have been far cheaper to let the banks fail and be reorganized.

US policymakers and their echo chamber in the economics profession have let the country down badly. They claimed that there was a “New Economy” to take the place of the “old economy” jobs that were moved offshore. As I have pointed out for a decade, US jobs statistics show no sign of the promised “New Economy.”

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An Imperial Presidency Controlled By Banksters Unveils Its Contempt For The American People

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SDP  November 10-16 2013

Americans (the vast majority dosed with fluoride, chemtrails, GMOs, wireless frequencies and transfats) continue to believe they exist within a political system whose limits are defined by a Constitution and Bill of Rights.

And while it is true that most Americans are aware the government doesn’t listen to them and many do possess a healthy contempt for Congress and politicians in general, the sad fact is Americans have been lied to on a regular basis and a dishearteningly large number remain unaware of the steady, relentless creep of unelected power brokers (lobbyists, corporatists, and the “too big to fail” members of the financial criminal syndicate) who have infiltrated and disassembled the Constitutional barriers put in place to prevent from happening precisely what is happening.

And what might that be? A gradual expansion of federal power to the point where a single man sitting in an oval office can change laws to suit his political needs, as he is now doing with the Affordable Care Act legislation. http://jonathanturley.org/2013/11/15/the-fix-is-in-can-president-obama-grant-an-effective-aca-waiver-to-millions-of-disgruntled-citizens/

As Adam English observes “When government workers and institutions stop asking what they are allowed to do, and start doing whatever they can get away with that serves their goals… well, that’s when you know something is profoundly wrong. The best term for this is mission creep. And once it happens, it’s nearly impossible to claw back the powers or privileges and return them to legislatures or the people.” https://shiftfrequency.com/adam-english-the-feds-dangerous-mission-creep/

In case you’re wondering which clique has benefited most from the destruction of America’s political system look no further than the criminal cabal running the central banking cartel since 1913.

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Seeds Of America’s Destruction Sown In The Civil War Are Now Trees In Need Of An Axe

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WIFLI  October 6 – 12 2013

The American Federal bureaucracy has been captured since the days of Abe Lincoln. America ceased to be a republic under control of 3 separate and equal branches of federal government. Instead, events were precipitated that resulted in the exaltation of the Executive Branch above the Legislative and Judicial branches. “Lincoln’s deification led to the deification of the presidency in general, and to the federal government as well.“https://shiftfrequency.com/thomas-dilorenzo-the-man-who-predicted-in-1899-what-america-would-become/

The deification of the Presidency was required so that the Hidden Hand manipulating American policy could enforce these manipulations via executive orders. But that proved insufficient. So gradually inroads had to be made into the other two branches. This was successfully achieved through corporate lobbyist bribes (aka PAC money) paid to Congressional representatives and senators, who in turn passed laws that advanced the goals of globalists even when these clearly opposed the wishes of American constituents and ran counter to their governing document, the US Constitution.

This contemptuous disregard of the will of the people has now reached such an extreme that “amid the government shutdown, 60% of Americans say the Democratic and Republicans parties do such a poor job of representing the American people that a third major party is needed. That is the highest Gallup has measured in the 10-year history of this question. A new low of 26% believe the two major parties adequately represent Americans.” https://shiftfrequency.com/60-of-americans-want-a-third-party-candidate-for-2016/

Financial Certainties

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The Fed’s “QE Infinity”: Money Galore… What Is It All About?

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Global Research | October 03 2012

Ben BernankeQE3, the Federal Reserve’s third round of quantitative easing, is so open-ended that it is being called QE Infinity.

Doubts about its effectiveness are surfacing even on Wall Street. The Financial Times reports:

Among the trading rooms and floors of Connecticut and Mayfair [in London], supposedly sophisticated money managers are raising big questions about QE3 — and whether, this time around, the Fed is not risking more than it can deliver.

Which raises the question, what is it intended to deliver? As suggested in an earlier article here, QE3 is not likely to reduce unemployment, put money in the pockets of consumers, reflate the money supply, or significantly lower interest rates for homeowners, as alleged. It will not achieve those things because it consists of no more than an asset swap on bank balance sheets. It will not get dollars to businesses or consumers on Main Street.

So what is the real purpose of this exercise? Catherine Austin Fitts recently posted a revealing article on that enigma. She says the true goal of QE Infinity is to unwind the toxic mortgage debacle, in a way that won’t bankrupt pensioners or start another war:

The challenge for Ben Bernanke and the Fed governors since the 2008 bailouts has been how to deal with the backlog of fraud – not just fraudulent mortgages and fraudulent mortgage securities but the derivatives piled on top and the politics of who owns them, such as sovereign nations with nuclear arsenals, and how they feel about taking massive losses on AAA paper purchased in good faith.

On one hand, you could let them all default. The problem is the criminal liabilities would drive the global and national leadership into factionalism that could turn violent, not to mention what such defaults would do to liquidity in the financial system. Then there is the fact that a great deal of the fraudulent paper has been purchased by pension funds. So the mark down would hit the retirement savings of the people who have now also lost their homes or equity in their homes. The politics of this in an election year are terrifying for the Administration to contemplate.

How can the Fed make the investors whole without wreaking havoc on the economy? Using its QE tool, it can quietly buy up toxic mortgage-backed securities (MBS) with money created on a computer screen.

Good for the Investors and Wall Street,
But What about the Homeowners and Main Street?

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