As the day began, the Federal Reserve and five other central banks, including the European Central Bank, the Bank of Canada, the Bank of England, the Bank of Japan, and the Swiss National Bank, “lowered the cost of emergency dollar funding for financial (emphasis mine) companies in a global effort to ease Europe’s sovereign debt crisis.” The cut was a full half percentage point.
Euphoria ensued, and markets soared after the news, but what changed? Absolutely nothing changed at all! This ruse is simply a way to bail out financial companies (banks) once again. The mainstream press is saying that this “strategy” is aimed at easing strains in markets and boosting central banks’ ability to support the global financial system. This inflationary policy is exactly what caused these problems in the first place, and more monetary money pumping will only exacerbate the problem.
Banks can now borrow more money, but they are already in economic dire straits due to the fact that they are holding bad sovereign debt from failing countries, so why make even more debt available? Calling this foolish is an understatement.
The Federal Reserve has said that if conditions continue to deteriorate that they will provide a “liquidity backstop” for financial institutions. In other words, they will create more money out of thin air, and put the responsibility of this new debt on the lowly taxpayer. This will be done to enrich the banks, but of course at our expense.
All this is happening while the secret QE3 continues in earnest. You may have thought because you were told that the QE programs ended on July 1st when QE2 was finished, that this particular money pumping was suspended, but you would have thought wrong. As I have previously stated, the QE treasury buying began on October 3rd, and continues to this day. In October, 90 billion dollars, money out of thin air, was transferred from the New York Fed to its primary dealer banks. Remember that during QE2 the average monthly purchase amount was 96 billion dollars. In November, this buying continued, again at very high amounts.
I monitor this activity daily, but when I attempted to do a historical search yesterday, the figures had been changed dramatically. Oops, what is going on with the Fed’s books? My historical search showed “only” 43 billion dollars for October and November, but in reality the real purchases were much higher. By doing a two week look back, (those figures had not been altered?) I found that for just half of November, the treasury buys were 53 billion dollars, and I’m sure that approximately 90 billion had changed hands in October. Actually, seven transactions for October, the largest seven, have been removed from the historical search screen. There are shenanigans going on here, but for what purpose? No mainstream media has mentioned this buying at all, so why the change in figures by the Fed? Hmm?
Secrecy, hidden bank bailouts worldwide, fake money pumping, and fraud seem to be the motives of the Fed. A real audit would expose this corruption, but will it ever happen? If it doesn’t, and these policies remain in place, there will be economic hell to pay for all of us!