“With a gun a man can rob a bank, with a bank a man can rob the world.”
~ Carter Glass
By: Gary D. Barnett
I just wrote this month about the evil of the Federal Reserve, and today the Fed has once again increased its money pumping operations. The Wall Street Journal reported this morning that “The Federal Reserve Bank of New York intervened twice Thursday morning with what is called an overnight repurchase-agreement operation and via a 14-day repo operation. The New York Fed had said Wednesday it was raising its minimum offerings for overnight repos to $120 billion from a minimum of $75 billion, with the next two-term repo operation increased to $45 billion from a minimum of $35 billion.”
These increases in money printing for banks in the form of repos has now set new “minimums,” not maximums. So currently, the minimum overnight offering is $120 billion, up from $75 billion. Hundreds of billions of dollars have already been “loaned” to banks just since September, and this enormous amount of money printing is slated to continue until at least the 2nd quarter of 2020. This is nothing less than massive Quantitative Easing (QE) on steroids, but the blind public is told that this time is different.
This will help to falsely propagate that the banking system is solvent, but if it were solvent, keeping rates close to zero by continuing to pump what will eventually be trillions of dollars to prop them up, would not be necessary.
The economic system of this country, specifically the banking sector, is in dire condition. This indicates that the U.S. is headed toward negative interest rates in the not too distant future, which in and of itself indicates economic ruin.
The continuation of the expansion of money, and this expansion will continue at least well into next year, will be a nail in the coffin of this country’s economy. This is all happening out in the open, and with no end in sight, so what will be the final outcome?
This idiocy cannot go on forever. Most all, 93% or more, of the stock market’s rise since 2008 has been due to Federal Reserve interference by money pumping to prop up prices. Today, at least in my opinion, the market is completely manipulated, and when the money dries up, the result will be economic chaos.
Bailing out the banking system, which enriches the controllers of the economy at the expense of the people, can only be a temporary phenomenon. The longer this continues, the more dangerous it becomes. No one knows exactly how long it will take for these policies to cause a worldwide economic breakdown, but in time, a default is eminent.
Those elites in the banking system and their pawns in the political class, those actually causing this disaster, will be little affected, but the general population will face not only uncertain times, but massive hardship as well. If the people continue to evade all moral responsibility, to spend and consume while hiding their heads in the sand, allowing for the destruction of their worth, then the state will reign supreme, and the resulting tyranny would be beyond even Orwell’s imagination.
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