Posted on 12/21/2013 10:06:33 AM PST by Errant
"The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland; a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank... sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world." - Carroll Quigley, member of the Council on Foreign Relations
(Excerpt) Read more at zerohedge.com ...
The fed was held hostage by big business, to keep the money flowing or else.
(my belief, I could be wrong)
But ONLY a governemnt this big can screw up this much
I’m sure if somebody were to drill in enough we would see it’s somehow related to this new phase from the Liberal Party — Income Equality. Such an absurd notion.
Not sure if it was big business holding the fed hostage, or the other way around.
Either way, QE in all it's forms (QE1, QE2, QE3) have all been conducted in such a way that there are designated winners and designated losers.
The designated losers don't only not get any form of "bailout" they are in fact pressured right out of business.
The designated winners get bailouts, tax breaks/tax extensions/tax forgiveness and free money via the stock market to prop up their false, highly inflated stock prices.
In most countries, that's called FASCISM. Here, it's called OBAMANOMICS.
The best indicator of their intentions was that the monthly bond purchase included tens of billions of dollars of mortgage-backed securities. Yes, this policy effectively "bailed out" the major institutional investors who were the holders of these bonds. But since these bonds were comprised of mortgages that had already been extended for sales of real estate, every dollar of value basically had to be guaranteed because the dollars had already been created in the nation's money supply and couldn't be "taken back" by anyone.
Let me make a correction- The Fed was held hostage by the LIBTARD-OWNED GOVERNMENT CRONY big businesses (FOB: Friends Of Barack)
I want to make it absolutely clear I am NOT anti-business
That may well be true. However let's not forget who established the bailout and fed pumping mentality before he left office: George W. Bush. He's the guy who handed Obama his first free hit of cocaine ($800B) to pass out amongst his crony friends.
No doubt in my mind though that there was "pressure" to pump money into the economy ($85b/Mo.) by the Obama Administration and no doubt in my mind that our economy would be in much better shape if QE1 - QE3 had never occurred.
Think about it: Here we have large Financial Institutions getting FREE MONEY from the Fed on a monthly basis. Do they really care that they're only getting 1/4 of 1% interest on it? Not really. It's a *guaranteed* return with zero risk.
Most banks have been sitting on the money. At this point the Fed has no other option really than to taper and start raising interest rates. The "taper" is quite literally like weaning a cocaine addict off cocaine. Less and less with each "hit" over time until the cocaine is stopped completely.
The taper will do the same thing: weaning banks off of "free money" while raising rates and encouraging them to take risk to loan money at higher interest rates.
Disclaimer: I work for a large multi-national bank that you may have heard of. I've been against the bailouts, QE, etc.. since their inception. I can add that much of our Senior Management and C-level folks have been against it too. We don't have huge lines of credit card business like Wells Fargo, BofA, Citi, Chase, etc.. which have propped up their bottom lines with double-digit interest rates on credit cards. I work for a large wealth management firm so the low to zero interest rates have literally been killing us.
I don't think this is going to end well, especially for those the government has enticed to become dependent.
I just figured they were getting low on stimulus
funds and knew that getting any more was out of the
question.
yes that is also true - but GWB did that AFTER Pelosi and the dems took over congress.
If you look at the government spending and compare it with president and congress control - the time periods when congres is controlled by dems more closely match huge spending increases- no matter who is president
I simply cannot think of a way that all this "ends well." My best guess after reading all the different opinions I've read is that "cash will indeed be king" during skyrocketing inflation, and those with gold will fare the best.
Now one might think that "cash is king" with skyrocketing inflation doesn't make sense. To the average joe who's living paycheck to paycheck it certainly doesn't becuase they'll be the ones hurt the most.
To anyone who's been living relatively debt free and able to put money away (cash, cd's, S&P 500, index funds) will benefit from rising interest rates -- especially for the cash they've saved & banked or invested in an Index fund.
"Wealthy" individuals with high net worths will also be well positioned with gold as a physical asset for example.
When all is said and done, I think we're going to have two well defined classes in this country: the Have's and Have Not's.
Yep.
I'd like the gov't to do that for me, on a leveraged basis.
How is ole Edwards doin'?
Huh??
You mean like everyone with a 401(K) or investments in equities?
I haven't forgot, but I've noticed some others have.
Two Americas. You can look it up.
I’d sure like a better explanation of how you think cash can ever be a hedge against inflation.
The "widening gap" between rich and poor isn't an accident; it's driven by choices people make.
When you find that out would ya ping me...lol
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