The Federal Reserve is robbing your future and handing it over to the wealthiest people in the world. Yep, that pretty much sums up our current state of affairs. But you’ll never hear such accusations aimed at the 1% articulated from the lips of our nation’s leaders, save Ron Paul.
If nothing else, the Occupy Wall Street movement has aimed its collective rhetorical gun in the right direction. Across this nation people have taken to the streets in peaceful protest against the financial elite who claim to be capitalists but rather live by the credo – private gains and public losses. That’s the definition of an oligarchy.
Here’s a question for you? Why is it that the Federal Reserve and our nation’s leaders are so concerned with propping up real estate values? Shouldn’t their aim be to support true free market values? I mean, during the bubble years real estate values became so distorted shouldn’t our nation’s leaders be most concerned with doing everything in their power to correct market values back to the mean?
Even a casual observer of the circumstances surrounding the real estate bubble and its aftermath should understand that the only reason the Fed would want to keep real estate values inflated is to protect the banks. They could give a rat’s ass whether we can afford the payments or not. They just want their damn money. It’s like Guido the loan shark forcing me to take a ten thousand dollar loan on something he knows is only worth five.
Obviously, our nation’s leaders set the stage for the real estate bubble when they repealed Glass-Steagall in favor of the Gramm-Leach-Bliley Act. Then there’s the whole moral hazard of FNMA/Freddie and the CRA pushing easy credit into places it didn’t belong – but that’s a sideshow compared to the real issue at hand.
In the wake of the real estate bubble, which Wall Street used to generate record profits, our nation’s leaders opted to bail out the banks when their mortgage-backed-securities Ponzi scheme came crashing down. Now, we are seeing the effects of the monetary policies of the Fed, the bailouts, the stimulus money, QE1, QE2, and now some cockamamie scheme to print yet more money to buy up more mortgage-backed-securities but with a borrow-back scheme to supposedly prevent further inflation.
The fact is that the Federal Reserve, by virtue of every dollar it prints in response to their own failed policies, is imposing a tax on our future that appears in higher prices at the gas pump, grocery store, and pretty much anywhere the average American spends money to survive.
There is no greater crime than the wealthiest people in the world imposing a hidden tax on the backs of hardworking people yet claiming to support free-market capitalism. It seems to me that their definition of capitalism is to capitalize on, and not with, the people who are the very foundation of the 1%’s immense wealth.
I feel like a live in a Banana Republic, run by loan sharks who control the government and spend their days engaged in orgies of profiteering on the backs of honest people who possess the fatal human flaw of trust.
This article was inspired by a piece I saw on SeekingAlpha, titled QE, Inflation, And The Case For Precious Metals.
The Wall Street Journal published a fascinating article concerning the latest thinking going on at the Federal Reserve. The article is penned by Jon Hilsenrath, a Journal author who seems to have good sources at the central bank. He is usually in-the-know when it comes to Fed-think. Hilsenrath writes:
Under the new approach, the Fed would print new money to buy long-term mortgage or Treasury bonds but effectively tie up that money by borrowing it back for short periods at low rates. The aim of such an approach would be to relieve anxieties that money printing could fuel inflation later, a fear widely expressed by critics of the Fed’s previous efforts to aid the recovery.