Friday, September 14, 2012

QE Infinity: Fed Buying More Toxic Assets From Banks Will NOT Help Main Street

Dees Illustration
Eric Blair
Activist Post

Ben Bernanke and the Federal Reserve announced an open-ended bailout for the banks yesterday by a new mechanism called QE Infinity where they plan to purchase $40 billion of toxic mortgage-backed securities per month "until further notice".

Shrouded in confusing language like "unlimited stimulus" or "quantitative easing", this unprecedented move and rule change by the Fed was said to be warranted because employment remains weak even though they still maintain the false notion that "economic activity has continued to expand at a moderate pace in recent months."

As stated in the FMOC press release:
If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. 
Of course this move "to foster maximum employment and price stability" does nothing to directly help job creation, and will continue to hurt main street by inflating the price of everything purchased by dollars. Yet it will clearly reward the investor class who already own most of the dollar-based assets.

The theory is that by removing toxic assets from the bank's books they have more liquidity to offer more credit, or to purchase more government debt. Somehow this is supposed to trickle down and help improve unemployment, which real numbers show to be in the 20% range when all factors are considered.

After a combined $2.3 trillion from QE1 ($1.7T) and QE2 ($600B), plus over $16 trillion is secret bailouts to recapitalize banks with absolutely no measurable improvement in the economy, how could any thinking person believe this policy will be beneficial?

Since mortgage-based assets total a conservative $600 TRILLION, QE Infinity is nothing more than an endless giveaway to the criminal banks at the expense of struggling taxpayers. Wall Street will obviously celebrate the move and stock prices will go up, along with food and energy prices.

It is so blatantly a policy that will steal from the poor to give to the rich.  It also makes one wonder how can the government cry poor when it comes to paying for food stamps, healthcare, education, and other benefits for the needy when they have endless trillions to prop up the banksters?

Significantly, this announcement comes on the heels of a census report that shows median incomes have fallen to levels of the late 1960s and early '70s. Of course, the mainstream version is they've only fallen to 1989 levels, which is hardly any better.

The census report showed that the middle class is struggling with a median family income of $50,054. In 2010, Michael Snyder decisively proved that it is flat impossible for a family of four to survive on this income in America, and prices for essentials have only increased over the last two years primarily because of the Fed's reckless money printing.

This policy is an absolute disgrace and represents the final looting of the American people. There will simply be nothing left to the value of the dollar, and all of the important assets will be funneled straight up to the elite banksters.

You think you are slaves now?  Just wait.

Read other articles by Eric Blair HERE

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Anonymous said...

How is it possible to comment on a policy this stupid?

Why not just give every man woman and child in America a free $250 each month and watch all the economic activity that would produce. The cost is about the same as the moronic Fed's plan.

I know. You can't do that, right? Well, you can't do what the Fed is doing either.

Unknown said...

with all this Q.E.bailouts going on its only a matter of time before the U.S.A. sinks like a rock,then the rich will be asking themselves where are we going to go when the poor and whats left of the middle class comes for us.

Anonymous said...

Like a bubble , it will pop .........

Anonymous said...

"How is it possible to comment on a policy this stupid? "

It's NOT a stupid policy. It's very well thought out. You are simply misunderstanding the goals. Stop pretending that the government is simply a misguided friend who's cock-blocking you in a bar. When the people are starving, the government will come running...but not to help.


Anonymous said...

As I said before in my previous comments the only solution is: 1- abolish the Federal Reserve nationalizing the central bank and restore monetary authority to the U.S. Treasury to create and extinguish honest debt free money based on a 3 legged stool of precious metals, barter exchange contracts and labor treasury certificates for goods produced, services rendered and work performed. Inernational trade and balance of payments can be conducted with barter exchange contracts. Thus, no trade deficit, no debt.

2-Pass a revluation bill limiting paper currency debts to 1% of their gold dollar value $2,000 an ounce gold, reevaluating the currency and issuing new currency at a 100-1 exchange rate, pro-rating all prices incomes and debts and charging a 10% exchange rate fee to pay down the legitimate debt adding a provision to the bill for debt foregiveness.

The elite globalist bankers that are members of the illuminati are the personification of evil and are satan's cohorts. They do not wan't to give-up their power and control until they are destroyed in the battle of Armagedon.

The following words of the messiah Jeshua: "If you do not forgive men of their debts, neither will your heavenly father forgive you of your's."

"You are from your father the devil and you wish to do the works of your father, that one was a manslayer when he began and the truth was not in him."

Anonymous said...

Amen to the above!

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