by Scott Creighton
QE∞! To the tune of 40 billion a month, the chairman of the privately owned central bank cartel, Ben Bernanke has “caved” and in order to “combat unemployment” he has announced that he will hand over all this money to the big banks that fucked us in the first place, buying up the toxic assets they created.
Not only that, but he “promises” to keep the interest rate near 0% through 2015 which will decimate things like your saving accounts and your 401k while continuing to provide the banking industry the ability to borrow money from the Fed (you) at almost no cost so they can loan it back to you at 24% or better.
At the Fluffington Post they call this an “aggressive new stimulus” package, a “double-barreled blast of stimulus”.
The zombie banks are currently sitting on more wealth than they ever have. Trillions of bucks that they just aren’t loaning out. Remember TARP? The banks just park it back at the Fed or they buy up other banks and businesses with it. Or, this is good, they’re now going out in California and with the help of the state government, they’re forcing homeowners to sell if they happen to be declared “at risk” then they rent the homes back to the previous homeowners.
You won’t see a dime of that “stimulus” and very few people actually think they will.
The interest rate freeze is going to slow your investment/savings returns to near zero while the dollar is going to lose value every month as the Fed pumps more of your money into the Wall Street banker’s pockets.
Every month, which ever banks Uncle Ben deems deserving will get an infusion of cash, free of charge, from the American taxpayers. The other banks will just be bought up.
They have to do this because the big banks have decided to strangle the economy to death in order to radically change it. So they froze up lending for small businesses and home loans and thus they need more cash to stay afloat. Hence, QE∞!
Oh, did I mention that Uncle Ben says this time his Quantitative Easing will be different because this time, there’s no end to it.
The Federal Reserve on Thursday announced a new round of bond buying, with the new wrinkle of basically leaving the program open-ended. It also stretched out its promise to keep short-term interest rates near zero by a year, “at least through mid-2015.”
That’s a double barreled blast of something, but it ain’t “stimulus” and correct me if I’m wrong, but from mid-2012 to mid-2015 is three years, not one year.
$40 billion a month translates to $480 billion a year. Over the two years that’s nearly a trillion dollars siphoned right out of the taxpayer’s wallets for nothing more than to prop up zombie banks and buy their worthless paper off of them.
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