“The last official act of any government is to loot the treasury.”
– George Washington
Quantitative Easing = Quantitative Looting
Quantitative Easing is a nice spin term that sounds as if it could even be healthy for you, like some kind of enema. Nice and easy does it. In actuality Quantitative Easing is a really slick way of describing “a money printing scheme in order to bail out failed and corrupt banks”.
The problem is the government can’t say that the only solution it has is to print money because everyone knows that is just what failed banana republics do. So they lie and lie. And millions suffer.
The Federal Reserve’s stated purpose for the Quantitative Easing (QE2) program is to stimulate the economy and create jobs. It is a blatant lie. What is patently obvious to anyone who cares to look is that:
- the most powerful banks in the country made gargantuan amounts of money during the subprime mortgage bubble
- trillions of dollars of their bad bets have been paid off by the Fed backed with taxpayer money
- those trillions of dollars that the Fed had to create out of “thin air” are now causing inflation (especially in food and fuel) to skyrocket
- this inflation is actually a hidden tax on the public
- those governments, now more bankrupt and desperate for cash than ever, bring in huge tax increases and cuts in services
- there has been no increase in employment and the economy is still very weak
So the taxpayer gets a triple whammy of increased taxes, deflated dollars and poor prospects for well paid work. And this is happening at a time when we have:
- a record 52 million Americans living in poverty
- 43 million on food stamps
- 77% of the population now living from paycheck to paycheck
Meanwhile the banksters have been getting record bonuses.
The end result is millions of American taxpayers are looted into poverty because the government doesn’t want the banks to “get a haircut”.
Bill Gross, the head of the world’s largest mutual fund, PIMCO, has said he expects the Fed’s QE2 program to cause a 20% decline in the value of the dollar. How do you like them apples?
The new $175 Wall Street Hamburger
Quantitative Easing And World Economies – The Boomerang Effect
Do you suppose that Quantitative Easing might have an effect on other economies in the world?
Let’s take a brief look at all the revolutions and civil war in the Middle East. Our mainstream media would have you believe that those oppressed peoples finally decided to get rid of their dictators. This is only partly true. The immediate trigger for these revolts and protests has been rising food prices.
And why have food prices been rising? Because the US dollar is still, for many economies, the world reserve currency, so when the dollar falls in value because of Quantitative Easing, asset prices start to rise, and this has made commodities, like food, very expensive. Keep in mind that in Egypt the average worker only makes $10/day.
So Ben Bernanke, as chairman of the Federal Reserve, has been exporting inflation to the rest of the world, made food there more expensive, setting off revolutions and mayhem. And I’ll place my bet that the Middle East is only the beginning. We ain’t seen nothing yet.
Now here’s where we get to check out a neat little boomerang effect.
Much of the unrest in the Middle East is in oil producing countries and their dictatorial governments are allies of the American government. If oil production is seriously disrupted, let’s say Saudi Arabia has major problems, then we would have a repeat of the oil crisis of 1979. Only the situation would be far more serious. America is economically much weaker now than in 1979 and is already involved in quite a few middle eastern wars. The situation could be become very dangerous very quickly.
May there be peace in our hearts.
May there be peace for all humanity.
May there be perfect peace on earth.