The Federal Reserve flushed the toilet Thursday…and by extension Washington and the US economy are beginning to pick up speed as they circle the drain.
Federal Reserve Chairman Ben Bernanke announced Thursday September 13th that the Fed would be buying $40 Billion per month in mortgage-backed securities indefinitely into the future. The reason he gave was to “see more progress (in job growth)”. He said “the program should increase downward pressure on interest rates,” supposedly to encourage more home sales and refinancing.
When challenged about low interest rates hurting savers, Bernanke said the low rates help the value of homes. What he does not say is that the entire housing market is built upon a balloon of debt, and that home values are only where they are today because of inflation.
The Federal Reserve is a private consortium of banks whose sole reason for existence is to maintain the solvency of the banks. Buying mortgage-backed securities won’t help you and it won’t help me. But it will strengthen the bottom line of the member banks. Also remember that banks that participate in the fractional reserve system (ALL BANKS) have basically only one product…loans. Abraham Maslow said, “When all you have is a hammer, everything looks like a nail.” Banks only see one thing…debt.
And hear me loud and clear. This is not all of QE3. The Fed will quietly continue to print TRILLIONS of dollars and flood the world with them. Today’s announcement is akin to a magician distracting you with his left hand while the magic trick is being done with his right hand.
I want you to understand how dreadfully serious QE3 is. QE1 and QE2 were stimulus packages that utterly failed. But 1 and 2 were limited in amounts. QE3 has no outer or upper limit. The Federal Reserve will print as much money as they desire or need to keep the charade going. That means that hyperinflation is both guaranteed and imminent.
John Williams, owner and editor of Shadowstats.com, predicts that hyperinflation will hit America in 2014. That is 15 months from now. That means that anything that is either greenback currency, or any investment tied to Federal Reserve currency, will very rapidly lose its value.
Let me lay out the scenario for you:
More @ DumpDC
No comments:
Post a Comment