The Financial Times is reporting that central banks in China, Brazil, India and elsewhere are dismayed by the Fed’s action to print $600 billion and spread it around America’s bankrupt financial system. They’ve good reason to worry – this is killing the value of the dollar, making their exports to the US more expensive, as well as driving up the dollar cost of things like gold and oil. Its a huge mess – a repeat, on steroids, of the stupid mistakes the Fed has made since 2007.
Everyone must keep in mind what has really happened here. Bernanke essentially pressed a button at the Federal Reserve and $600 billion in US currency immediately appeared – but not out of thin air. You see, by making this extra pile of money, he essentially picked the pockets of all Americans because the money you had yesterday is now worth less, today. Your money is a store of your wealth – so, that hard days work you put in on Friday? You now ended up getting paid less for it.
How’s that feel?
And it gets worse. You see, what Bernanke did will eventually wind up in the hands of the bankrupt Banksters – who will then use it to by US Treasuries. So, the money which was stolen from you will be given to Banksters who will then loan it back to you, at interest.
Want to grab your bucket of tar and bag of feathers, yet?
But here’s the real kicker – it won’t work. This is designed in accordance with Keynesian theory which says that if the central bank does this, it will spur investment and job creation. What it is really doing is fueling an already overboard asset bubble (you’ll note that the stock market rocketed up on Thursday) which will eventually crash, taking what remains of the economy with it. So, the final result here is that you have had your money stolen and then loaned back to you, and you’re going to see your job lost, your home value drop some more and your retirement nest egg wiped out.
Anyone out there still wondering why I’m calling myself a revolutionary these days?
I haven’t had too much use for Ron Paul over the years, but he’s got one good idea which must be pressed – audit the Fed. We need to tell everyone just where the money went so that public outrage will grow to proper proportions, and then kill the Fed completely. No more central banks, no more fiat currency, no more wealth being ripped off so that fat cats can remain fat.