Coming Soon To A Country Near You: QE III

“All paper money eventually returns to its intrinsic value-zero.”
-Voltaire

Friday, June 30th marked the end of the Federal Reserve’s second round of money printing, a.k.a QE II. This should be welcome news, but a serious problem has emerged. The USEconomy and the USGovt are now so dysfunctional that both have become completely and hopelessly dependent on the Fed’s debt monetization and liquidity injection. This is no coincidence. Not only did Mr. Bernanke’s latest seven month, $600 billion bond purchasing escapade continue to fuel rampant speculation, destroy capital in the United States, and drive inflation (his ultimate goal), but all of this money went to foreign banks. Of the 20 primary dealers recognized by the Fed, 12 are U.S.-based branches of foreign banks, and here they are:

BNP PARIBAS SECURITITES CORP
BARCLAY’S CAPITAL
CREDIT SUISSE SECURITIES (USA) LLC
DAIWA CAPITAL MARKETS AMERICA INC.
DEUTSCHE BANK SECURITIES INC.
HSBC SECURITIES (USA) INC.
MIZUHO SECURITIES USA INC.
NOMURA SECURITIES INTERNATIONAL INC
RBC CAPITAL MARKETS, LLC
RBS SECURITIES INC.
SG AMERICAS SECURITIES, LLC
UBS SECURITES LLC.

Bailing out foreign banks is not the responsibility of the Federal Reserve. Yet for three years now, that is exactly what has been occurring. There are those financial experts who may view this development as insignificant and/or otherwise necessary to prevent further economic upheaval within the European Union. I, however, view the Fed’s actions as a malignancy, which threatens to destroy the organizing principles of man’s right to liberty and freedom. Truth be told, the monetary malfeasance, inflation, and looting of sovereign nations (think Greece and Ireland) in recent years would not have been possible without the implicit consent of our central bank. A patent disregard for the free market brings with it startling consequences.

“The central investing fact in the world today is the coming end of the age of debt. The US government is now borrowing $40 out of every $100 it spends. China is lending the $40 to America perhaps and then with the income from interest, plus the junk they sell to Wal-Mart they buy land in America with it.”-James Dines-King World News 7/8

The latest economic data coming out of the United States showed dismal job growth in June and the unemployment rate rising to 9.2%. Economists had expected non-farm payroll jobs to increase by 100,000. The actual number was a paltry 18,000. The government also revised down by 44,000 the number of jobs created in April and May. Such anemic growth will prove to be the impetus helicopter Ben needs to muster support, and when he is ready, embark on another round of usury free money for the shadow banking system-call it QE III. The gullible American public will again blithely foot the bill even as it looks on helplessly, unable to come to terms with the fact that their consumption is no longer the vital component in the global economy. Moreover, by 2015, the emerging BRIC economies will represent 50% of all economic growth, thus further marginalizing America’s economic might. Like a rubber band stretched beyond its capacity, our economy is about to snap.

David Rosenberg recently pointed out:
The “labor share of national income has fallen to its lower level in modern history … some recovery it has been – a recovery in which labor’s share of the spoils has declined to unprecedented levels.”

The banking syndicate depends on the corporate power structure already in place around the world, as well as an eternal, flowing spigot of printed money to support their various enterprises. However, Mr. Bernanke has several lingering problems:

1) He cannot force banks to lend.
2) He cannot force companies to hire.
3) He cannot force consumers to spend.
4) He cannot manipulate the law of supply and demand as it applies to the housing market in the United States. The actual price discovery metric is beyond his control.
Or as Peter Schiff of Euro Pacific Capital has said, “Home prices are a function of what future buyers can afford-not what past buyers paid.”
5) He cannot stop individuals from around the world (including central banks) from buying gold and silver as a hedge against his flawed philosophy.

“Dr. Bernanke unfortunately does not understand economics, he does not understand currencies, he does not understand finance. All he understands is printing money. His whole intellectual career has been based on the study of printing money,” said Rogers, who predicted the start of the global commodities rally in 1999.Give the guy a printing press; he’s going to run it as fast as he can.” -Jim Rogers

The fortress of the banking elite is beginning to crumble, and ole Ben is becoming increasingly desperate to appease his corporate masters. The only weapon at his disposal now is the printing press, which he will run until either monetary rot sets in, or the world shuns the USDollar.Raising interest rates (at least here in the United States) will only add billions to our trillion dollar deficits, so,to the Fed, that is not an option right now. Only problem is, the destruction of capital via negative interest rates makes U.S debt unattractive to foreigners , and no return on personal savings punishes savers. Off shore tax havens for corporations ensures that profits will remain outside of the United States.41% of all U.S. jobs are now low wage jobs barely able to support a family let alone stimulate a GDP propped up by consumption. Wage disparities between the West and Asia are still hastening the exodus of our manufacturing jobs. Investment in our infrastructure remains a distant pipe dream. Inflation continues to hammer the average American in the form of higher food, fuel and healthcare prices. Political discourse these days does not include the possibility of ending tax cuts for the wealthy, ending subsidies for big oil, or reducing the military industrial complex’s involvement in needless wars. The tough choices will be dismissed in the name of political expediency; 2012 is, after all, an election year. Yes, Dr. Bernanke seems unable to comprehend the burden placed upon society when the central maxim of free market capitalism, competition, has been destroyed. The millstone of a manufactured debt load comprised of worthless pieces of paper masquerading as prosperity will continue to upset the natural order of things. How much more Fed induced fraud the world can tolerate remains to be seen, but buckle up, ladies and gentlemen, because it’s going to be one wild ride.

“Victory or death.”
-George Washington,1776

3 comments to Coming Soon To A Country Near You: QE III

  • Al

    If you really connect the dots, all of this is planned and purposeful. Do we think the banksters don’t know what they are doing? They do. They are working hard to crash the dollar to weaken the US – bring in the Amero and the next phase of one world government. Making a North American Union, right next to the European Union… then what….

    This is not at all just stupidity or mismanagement. In my view it is well planned step by step motion to the next phase of the big plan.

    My take on this all – what can derail it? Shifting the viewpoint and mindset of the common guy and getting some guts mustered up to stand up and say no. That will mean some of us will suffer and or die in the process, just like the founding fathers who signed the Declaration of Independence.

    The battle for your (our) minds is on. Whoever wins that battle, will be the ones in control.

  • lastmanstanding

    Al…very well said. The banksters think they will be insulated from the actions to come…Well my friend the earth doesn’t work that way. They will be thrown into the mix and God willing, will be the ones to suffer most and die.

    I will stand with you, others and the Founding Fathers.

    My grandkids will live free.

    As a descendant of Patrick Henry…”Give me liberty …or give me death.”

  • Jeff Robertson

    Great article! These sinister men and woman have been oppressing people around the globe with their millitary and economic policies for quite some time. The American people have to wake up and take this once great country back from these corporate pirates. These are treasonous acts of epic proportions! If we continue this course of action we will implode. This is not what future generation Americans want to inherit. Keep fighting the good fight and expose these people for who they really are, traitors to the republic. We cannot take much more of this. Were not going to take it laying down thats for sure!

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