This is crazy. Bernanke testified to congress that they would not do this. But the Fed bought 1/2 of the 7 year auction by stealth. And they bought these bonds through retail means from the banks, lol, including Goldman Sachs, lol. The 5 year auction went badly, so the 7 year was a setup.
I have a theory. First, the Fed is deathly afraid of inflation or it would not do this. Good demand at the bond auction translates to lower interest rates, at least for awhile. Second, the Fed is giving more money undercover to the banks so that they can stay zombies, not lend, not stimulate the economy, but make a little money selling bonds to the fed, lol.
And the banks are facing Mark 2 Market Again!!!!! That will be implemented on Nov 15. That will zombify the banks even more, making the Fed's job easier, and that will cause a painfully slooowwww recovery. Pealing paint off a wall will be faster.
So my theory is that we are Japan. Or at least the private fed bank wants us to be like Japan or we will fall off a cliff with too much debt. This is really creepy stuff.
http://socioecohistory.wordpress.com/20 … d-auction/
Brian, I'm even farther behind the curve--I still don't know exactly what they did!
Are we saying that they now more openly own the government?
They're hoping we're like Japan. The Daily Reckoning has been writing about this stuff for 10 years now: http://www.thedailyreckoning.com Ghost, it's no that the banks own the government, it's that the banks and government are so entwined that you can't do anything to one without doing something to the other. Government controls the banks by being able to print money and banks control the government because they have access to money that can ensure the re-election of politicians. What you can be sure of is that regular Americans are getting screwed by the whole thing.
Bgamal, are you really surprised at all this? The government has made it a cornerstone of its policy to stave off a correction by any means necessary. This is exactly what I'd expect to see out of their playbook. It is, after all, easier to get forgiveness than permission. In fact, in their eyes, it's better because they think they're going to fix the mess so that when they do have to get forgiveness, it'll pour out like manna from heaven because they "saved the economy". Insanity.
by James Smith 5 years ago
Stirring the pot a little bit with this hopefully.http://www.tomwoods.com/blog/but-i-thou … -business/Since Wall Street is the main beneficiary of the Fed through bailouts and money printing, a sound-money advocate Ron Paul Presidency would spell disaster for the 1%. They can rest easy,...
by Evan G Rogers 6 years ago
I've been told numerous times that "creating money out of thin air" is a good thing. And when I argued against it, the "conscience of the liberal" told me I was ignorant.Then, when I pointed out that the money went straight into companies that didn't deserve it, they said...
by wacknuts 8 years ago
And what does it mean for us?
by pgrundy 8 years ago
This is hitting South Bend now, where I grew up. I have a house there with a renter in it that I"m about to lose:http://www.nytimes.com/2009/03/30/us/30 … y.html?hpwIt's so bizarre. The industrial midwest is getting really, really bad.
by jerryl 8 years ago
Millions of people do not understand that we have a debt monetary system.The actual creation of money (always) involves the extension of credit by private commercial banks.This means interest bearing loans, so all M1 money in existence is debt. There is never any money created to pay the...
by fishskinfreak2008 8 years ago
These include: BOA, AIG, GM, Chrysler and Citigroup. THIS IS LONG OVERDUE
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