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The Truth About QE and the Fed's "Bailouts"
The Federal Reserve, when it was initially created in 1913, chose the word “Federal” because it would make the bank sound as though it was aligned with the Federal Government (it isn’t)… and the word “reserve” because it wanted to sound like it had the reserves to support the system: that the Fed would act as the ultimate backstop.
It is telling that the Fed was engaged in this kind of marketing from day one. Most Central Banks don’t try to hide their agendas; they simply go by the title “Central Bank of [insert country or region here].” This title at least makes the scheme obvious: this is a bank that believes in Central Planning.
Banks are strange things. As the hubs through which money flows into and out of the economy, banks are supposed to be rooted in capitalism. But the Fed and its cohorts seem determined to insure that capitalism, particularly democratic capitalism, becomes a thing of the past.
Capitalism, at its core, means taking risks in the pursuit of success. Sometimes they risks work out (success). Most of the time they don’t and you fail.
The Fed doesn’t believe in this paradigm. For the Fed, none of these rules apply to the large banks. Those banks cannot fail. We’re told it’s because these banks are too important.
This, in of itself is offensive. The fact that the Fed has now spent six years punishing Americans as a whole in order to prop up the large banks is where things shift from offensive to obscene.
QE had absolutely nothing to do with creating jobs or improving things for Main Street. After all, if QE was supposed to improve things for all of us, the Fed would never have launched QE 3 or QE 4 because QE 2 proved point blank that QE was a dud when it came to job or economic growth.
No, QE was designed to funnel money to the big banks. Heck the guy who managed the first QE program even admitted this in an op-ed piece in the Wall Street Journal. The fact that the Fed spent another $3 trillion after this only confirms that QE had nothing to do with the US economy.
Indeed, one could easily argue that when it came to improving the economy, the Fed would be the last entity one would turn to. The Fed’s track record for economic forecasting has been absolutely abysmal over the last 20 years. The Fed missed the Tech Bubble, the Tech Crash, the Housing Bubble, the Housing Crash, the European Crisis, and on and on.
At the end of the day, everything the Fed has done has been focused on propping up a broken system. Eventually the Fed’s efforts will fail at which point so will the Fed (just as the last two Central Banks in the US failed). At that point we can only hope that something resembling the capitalistic tendencies that made the US a super power will be allowed to flourish again.
This concludes this article. If you’re looking for the means of protecting your portfolio from the coming collapse, you can pick up a FREE investment report titled Protect Your Portfolio at http://phoenixcapitalmarketing.com/special-reports.html.
This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.
Best Regards
Phoenix Capital Research
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Good article
The Fed is an abomination to the free market which should be let in to compete for what is money. This would kill the Fed because they're monopolists (ie. very thick stupid people who can't compete)
The real secret at the top ?
See http://andreswhy.blogspot.com/2008/10/its-stupid-at-top.html
"It is better to take refuge in the LORD than to trust in man" Psalm 118
Read Revelations for God's truth, He knows.
Warning: Prophecy can only be understood by believers.
So if you still deny God, read John. Your still among the living so there is still HOPE.
"Just as man is destined to die once, and after that to face judgment" Heb
"Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes." James
God tells it like it is, with no evil or hate in Him.
Get your money and assets out of big banks NOW !. When the big banks fail they can legally take your deposits. Its called a "bail in"
Instead move your money to smaller banks and credit unions that are not exposed to derivatives and high risk. Also buy up some gold and silver. Sit on your cash and wait until the crash happens and deflation occurs. Then you will have the money to buy everything cheaper.
WHY PUT FUNDS IN A BANK THAT GIVES VITUALLY 0% INTEREST AND THEN LENDS FOR PROFIT AND TBTF SO YOU TAKE THE RISK....... THEY TAKE THE PROFITS....... SUKKA
withdraw cash and protect it yourself....... or start a check cashing biz.... oh wait... the DOJ has told banks to close those accounts..... wonder why
IF ENOUGH PEOPLE DID THIS BANKS WOULD EITHER HAVE TO BORROW MORE FROM THE FED /INTERBANK LOANS / COOK THE BOOKS OR RAISE INTEREST RATES TO GET DEPOSITS
These sky is faling articles are getting ridiculous...The plain and simple truth of the matter is that they have broken the system so bad there is nothing anyone can do about it. There are NO uncorrelated asset classes. There is no where to hide. When the system breaks, if it ever does it is a complete reset and total clusterfuck where nothing can be salvaged. There is no choice but to participate, because when it breaks everyone looses, players or not.
Not true. We don't have to participate. Switch to other non debt forms of payment transfers like gold, silver, bitcoins, LETs, barter and alternate banking systems like Ripple or Stellar with a variety of fiat, commodity and cryptocurrency options.
You cant eat gold
bla bla bla is all I got from that article it's all bullshit 4 trillion to the people would have capitalism running wild because only the business that give good products and services would make it and jobs galore but they chose to give it to wall street where it sits in the makers. if I were Bernie Madoff I would be really pissed I was in jail and Gitner, bernanke , Greenspan yellen etc etc were not! Capitolism today means get fucked
"Capitalism, at its core, means taking risks in the pursuit of success. Sometimes they risks work out (success). Most of the time they don’t and you fail.
The Fed doesn’t believe in this paradigm. For the Fed, none of these rules apply to the large banks. Those banks cannot fail. We’re told it’s because these banks are too important."
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SO the writer does not believe that the Central Banks are taking Risks with their actions?
Anyone else agree with this statement?
I have a more simple explanation/thought about what is going on.... This entire game is about POWER..... nothing more/nothing less......
Quite literally there is no risk in banking. There are risks to QE, but the big banks do not share that risk.
Being too big to fail means that there is no risk. They have private profits and public losses.
Eventually the Fed’s efforts will fail ...
When the number of works hours for people becomes so tiny through all the wonderful technologies it gets far far worse and the amount having to be created with no attachment to anything real explodes upwards.
What is currently happening is a relative deflation and the creation of money to flow to those at the highest levels does not cure the deflation it just keeps coming back. Until somebody in office has the balls to cut the flow of money to the top in relative terms the old economy just keeps getting sucked dry.
I see deflation this way, print a 3 trillion, pump it into the economy, flows to those able to grab it and not spend it old economy remains the same and stagnation. Total currency up, same old economy then and if the government attempts to raise taxes instead of the extra income it contracts the economy because the money is not with ordinary people to be taxed.
Get it? So even if not in my lifetime at some point it burns through those who were handed everything being sacrificed for the swelling mass of a population with nothing GAME OVER.
Great analysis. What is sad is that what should be happening is given the massive advances in technology, prices should be coming way down. People make a big deal out of the drop in labor participation which is true but it should be more than offset by a decline in prices.
Well... the fed saved the banks to save the US economy... anyway, we're about a year away before the gloomers have there day, so, this is probably just entertainment until then.
The economy was saved? When did that happen?
tawdzilla +25
+25 when others routinely toss around +1000s? Cheapskate.
"Banks are strange things. As the hubs through which money flows into and out of the economy, banks are supposed to be rooted in capitalism. But the Fed and its cohorts seem determined to insure that capitalism, particularly democratic capitalism, becomes a thing of the past."
In 2010, I had a buyer lined up to buy my business. The buyer was going to be getting a SBA loan through a bank to remain nameless (rhymes with Hells Cargo.) The loan officer (upon noticing that my gross sales were slightly down from previous year), told the buyer "we cannot loan you money on this business because the annual sales are trending down." Well, bottom line is, the sale of my business fell through because i couldn't get a bank to finance it.
I told the buyer, "it's interesting that the loan officer is telling me that my business is unworthy of a loan, when his company just had to be bailed out with hundreds of billion$ of taxpayer money (while their business was "trending down.")
Anyways, gross sales are double what they were in 2010, so I'm glad I didn't sell, but the point is...banks suck.
That's why that guy works for a bank, instead of making real money in real business of his own. Some fucking expert.
Real capital investment is in serious decay. Instead of investment in legitimate SMEs that will create a more robust, competitive economy, 'capital' is created out of thin air and driven into the TBTF/entrenched crony zone known as Wall Street, where it can basically be thrown into whatever the latest 'hip' stock is. Look at GoPro. Those things cost closer to 1k than $200 when one has bought everything required to get the most out of the product, whereas the iPhone does a lot of that anyway. But who cares, because rather than investing in SMEs 'on the ground', it is easier for them to have it on their turf of market makers and ZIRP and QE funds funneled into stocks.
Neo-feudalism continues to become the norm. SMEs get hosed.
~yawn~ yeah we get it fedres bad
capitalist good bla blah blah.
i made $9500 a week pimping my investment
storefront to dupes on a sellout blog.