Fed Audit Shocker: They Come from Planet Klepto(maniac)

While the world breathlessly awaits the outcome of this week’s FOMC meeting—will the Federal Reserve raise interest rates or won’t it?—one thing is clear regardless: the Fed is driving the U.S. into a 2nd depression in order to carry out its one and only remit now that America’s ability to produce real jobs has been reduced to ash, namely, propping up criminal banks with multi-trillion-dollar giveaways.

What’s so disturbing about the fatal path that the Fed has been on for 7 years is that it's one the Fed went down before, when—by its own admission—it extended and deepened the Great Depression in the late 1930s with a foolhardy policy that jacked up total reserves and destroyed bank lending. In the words of Janet Yellen, "[t]he economy plunged back into depression." (6/23/09 tr. at p. 175)

That's curious, because exactly the same dynamic is at work now, as total reserves have skyrocketed since 2008 in perfect dollar-for-dollar tandem with a plunge in lending. The effect on the birth- and death rates of new and existing businesses, respectively, has been catastrophic.

And what has propelled total reserve balances into the stratosphere? Why, it's the Fed's fateful decision to pay banks interest for holding money with the Fed--money provided by none other than the Fed itself when it printed $1.73 trillion and handed it to the bustout banks in exchange for worthless mortgage-backed securities. The Fed pulled nearly exactly the same stunt in 1936-37 when it suddenly required banks to maintain higher reserves at the Fed. In both cases, the Fed's diversion of monies away from the economy proved disastrous. It remains to be seen whether the Fed will need another world war to cover up its ruinous acts.

Thanks for posting. I watched it yesterday at zerohedge.

DISMANTLE the FED.

9. The management of a great funded debt and a extensive system of taxes will afford a plea, not to be neglected, for establishment of a great incorporated bank. the use of such a machine is well understood. If the Constitution, according to its fair meaning, should not authorize it, so much the better. Push it through by a forced meaning and you will get in the bargain an admirable precedent for future misconstructions.

http://www.constitution.org/cmt/freneau/republic2monarchy.htm

Socialism Is Legal Plunder - Bastiat

http://www.usdebtclock.org

UNaccountable bureaucrats are socialists. BIG GOVERNMENT IS CRONY SOCIALISM.

He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. - Declaration; list of grievances

https://www.federalregister.gov/agencies

Many still don’t understand the scam that was perpetrated.

Fraudulent paper was sold for $$$. The paper was supposed to be backed by mortgages.

But the mortgages didn’t exist.

Trillions of dollars of worthless paper were sold and pocketed by bankers and the paper was sold again and resold again until the last of the suckers woke up.

Ok so what?

First, the bankers that participated in the fraud are getting rich in several ways. One of the ways is that the Federal Reserve has agreed to pay them billions upon billions every month to hold SOME of the money they scammed; the deposits aka the excess reserves.

The bankers hold trillions in deposits that were scammed from others and they get paid billions to hold some portion of them.

It pays to scam, to steal and to screw American businesses.

The Federal Reserve is doing this ostensibly to keep a lid on inflation.

But it’s like a gun to their heads.

So they keep paying the billions every month. And the bankers are smiling; Too-Big-To-Fail.

And it continues today.

Other banks would like to grow and conduct normal banking.

But they can’t get loans.

Because the loans they need are being bought out by Fed Policy.

Most people can’t understand the above.

Too many moving parts, too many graphs and non-familiar terms.

So let’s take an analogy so that some may understand.

A group calling themselves a bank went out to sell gold paper telling the buyers that their gold was secure in a vault. But there was no gold anywhere. It was all a lie.

Buyers found out they had been scammed and they complained and sought to get their money back or their gold whichever was available.

The buyers were told by government people to line up at an agency called ‘Goldie Mae’ and there they might either get their money back or any gold that might exist.

And the bank scammers held trillions on deposit which they could loan to their ‘friends’ including themselves under names of other businesses.

Government people (federal reserve regulators) told the banks to ‘freeze’ some of the ill-gotten deposits in exchange for a ‘Fed payment’. And the portion that was not frozen (trillions) could go to cronies or ‘hedge funds’ but not to normal businesses because it was inflationary, possibly.

So the regulators ‘partnered’ with the bank scammers.

Ordinarily the bank scammers would have been prosecuted and their banks put into receivership. Then the buyers of the scam gold paper could have lined up in court as creditors. Instead they were dragged through red tape at Goldie Mae. They had no gold and their money was gone.

Because the buyers of the gold paper were out of luck, some of them sold their gold paper to the bank’s hedge fund cronies for 5 cents on the dollar thus completing the cycle of fraud.

It’s still too hard for ordinary people to grasp.

So here is the simplest analogy,

A scammer takes your money and gives you a certificate. You find out the certificate is worthless. You were told the certificate was backed by something of value and that you would receive a nice return on investment. But it’s a scam.

The person that took your money arranges for you to receive 5 cents of your money for every dollar he took from you. And he wants the certificate you hold. He took your dollar and then gave you a nickel back for your ‘asset’. And you got nothing, no claim. And your government won’t help you but they say they might but maybe they won’t but it’s not really their problem. They confuse you; they are confused but they get paid to carry on the nature of the confusion and they don’t know what else to do. And no one will prosecute. Why? Because the certificate’s ‘assets’ are bought by the government and the ‘assets’ don’t exist. Money cannot be printed for you because there is no way to get Congress to authorize debt for you and maybe it would also be inflationary.

Bottomline is you’ve been robbed and no one is going to jail. Your money is sitting in a whole bunch of hands who have no ties to you and refuse to acknowledge you exist.

You were robbed of your money.
You have nowhere to go to get it back.
No police will help you.
No court will help you.
The government has an office setup to help you if you ‘qualify’ but they don’t know what they are doing.

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