This page has been archived and commenting is disabled.
Federal Reserve Counterfeiting Approaches 100%
Jeff Nielson for Sprott Money
At the end of 2008, the U.S. Federal Reserve embarked upon a monetary policy so extreme and so reckless that it had to invent a (new) euphemism for what it was doing, since if it simply used the old euphemism, even the puppet-politicians of the U.S. government would have rebelled at this monetary insanity.
At that time, the Federal Reserve began “monetizing debt” (the old euphemism). What that economic jargon actually means is that the Fed (on behalf of the U.S. government) simply began conjuring its currency out of thin air – without any pretense of backing or value – as the only means of being able to continue to pay the interest on the exploding U.S. national debt. It was (is) the last refuge of a bankrupt government: the choice to hyperinflate its currency rather than officially declare bankruptcy.
Obviously neither the bankers nor the Corporate media were prepared to admit what they were really doing, so they invented a new euphemism for this old insanity: “quantitative easing”. But conjuring “money” out of thin air (by the $trillions) to pay the interest on U.S. debt was only the beginning. After that, the Fed “expanded” this monetary insanity – and began openly buying-up $trillions in U.S. Treasuries, as well as the “bad debt” (i.e. fraud) hidden on Wall Street balance sheets.
We were explicitly told by the bankers, media, and U.S. government that it was engaging in this “QE” to pump-up the U.S. Treasuries market (and thus manipulate interest rates lower), and to pump-up U.S. equities markets, to supposedly “stimulate the economy”. This was, of course, total nonsense.

Only the bankers still hold U.S. Treasuries, and only the wealthy still hold U.S. stocks (roughly 85% of all stock), and those two demographics were already wealthier than at any time in history before the beginning of “QE”. But while the supposed “stimulus” was never anything but a lie, the bubbles which were created by all this reckless money-printing are very, very real.
As a matter of basic arithmetic/economics, all bubbles implode/deflate without a steady stream of new money to keep the bubble inflated. Because (by definition) all bubbles represent unsustainable price levels, no bubble can ever be stable. It is with this context in mind that we can view this recent headline in the NY Times:
Quantitative Easing is Ending
It is a headline which no thinking adult could possibly take seriously. The Federal Reserve deliberately/explicitly/openly inflated the U.S. Treasuries bubble and the U.S. equities bubbles with its “quantitative easing”. The Federal Reserve claims to be withdrawing the fuel/support for those bubbles, and so those bubbles must implode.

Except the bubbles have not imploded.
This is not even theoretically possible, and so, ipso facto, “quantitative easing” continues – in some form. But the difference is that while the Federal Reserve is still conjuring new $trillions (to keep the bubbles pumped-up), it no longer admits to all this newly conjured funny-money. There is a very well-known legal/financial term for this practice: counterfeiting.
This isn’t speculation, since it is supported by more, obvious empirical evidence. In the spring of 2013, B.S. Bernanke first began talking about beginning to reduce his “QE”, and by the tiniest of amounts: a paltry/trivial $5 billion per month.
Even just talking about beginning to ease the newly conjured funny-money caused the interest rate on U.S. ten-year Treasuries to double over a six month period. Merely talking about “tapering” was costing the U.S. government $100’s of billions in additional interest payments (alone), further crippling this dying economy. And so in September of last year, Bernanke got in front of the microphones to admit that the U.S. government could not even begin to “taper” the money-printing.
Yet today we are told that “quantitative easing is ending”, but the U.S. bond-bubble has not even wavered. What changed?
The second time that the Federal Reserve pretended to begin to “taper” its money-printing, the economic terrorists of Wall Street first attacked the economies of all the world’s other nations – by sabotaging their currencies. With all the economies of the Rest of the World economically crippled, and thus the U.S. economy appearing “healthy” in comparison, the bond-bubble didn’t waver the second time the Fed pretended to begin “tapering”.
Again, this isn’t “conspiracy theory”, it is conspiracy fact. As noted in a recent commentary, this endemic currency-rigging has finally come out of the shadows. After two years of (informally) “investigating” individual FX-traders employed by these Big Banks, we now see formal, criminal investigations of these Big Banks/bankers for serially rigging the world’s currency markets (and currencies).
First, some context. In the lawless United States, its criminal Big Banks are never criminally charged for the laws they break. When they openly/deliberately falsified tens of millions of U.S. mortgages, turning the entire U.S. land-title registry into a cesspool of fraud, no bank was charged.
When they scammed investors around the world for $trillions in countless, serial acts of open/sleazy securities fraud, no bank was charged. When they are caught (on a daily, ongoing basis) laundering $trillions for known drug cartels, and known terrorist groups, no bank is ever charged.
However, the currency-rigging of these same, criminal Big Banks has been so blatant, so egregious, and so massive in scale that two of these Big Banks have now publically acknowledged that they are already under criminal investigation – JPMorgan and Citigroup. Meanwhile, the Corporate media has already warned us that “the Justice Department may seek guilty pleas from several firms” (i.e. tentacles of the One Bank).
The previous (unpunished) financial crimes of these Big Banks were already a hundred times larger than any financial crimes ever perpetrated in financial history, yet (by the actions of the U.S. government, and the words of the Corporate media) we see that their currency-rigging has been even worse. And all this was done so that merely talking about “tapering QE” would not burst the U.S. Treasuries bubble, all by itself.

When we scrape away all of the fraud, all of the crime, all of the lies, and (now) all the criminal investigations, we are left with a simple truth. As the Federal Reserve (publicly) takes its “quantitative easing” to zero, what it is actually doing is taking its counterfeiting of U.S. currency toward 100%.
There is no other, possible explanation for the fact that U.S. bond and equities bubbles have survived…for the moment. To prove this, we merely need to look at what the Corporate media claims to be an “explanation” for this economic impossibility – i.e. the best lie which they could fabricate.
…But quantitative easing is the gift that keeps on giving. Even after the purchases end, its effects will persist. How could that be? The Fed will still own all those bonds it bought, and according to the agency itself, it’s the level of holding that affects the bond market, not the rate of addition to those holdings. [emphasis mine]
Very simply, the Liars claim that the U.S. Treasuries market is the first-and-only stable bubble in the history of human markets – a bubble which can (permanently) remain inflated without a steady stream of new capital injections. It is a lie just as preposterous as the preceding, impossible lie: that “QE is ending”.
Understand that if it were possible for bubbles to remain stable then we would have seen numerous, previous examples of other “stable bubbles”: markets with prices permanently floating high above sustainability (and sanity). It has never happened before in human history, because it cannot happen.
The Treasuries-bubble remains, with current “prices” for Treasuries much, much higher than any other time in U.S. history. It is not merely a “bond bubble”, it is the largest bond-bubble in the 228-year history of the United States. Thus we know that the Federal Reserve has replaced every dollar of (old) “QE” with new counterfeiting.
It’s not “conspiracy theory”. It’s simply more conspiracy-fact.
Jeff Nielson for Sprott Money
- advertisements -

Americans can only implement controlled change. That change will never rid of the of the problem - The banking cartel.
Right on target, so direct.............
Bobby Dylan
I keep repeating it because it's important. It is undoubtedly a bubble. And it is about pop in a big, big way...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
Jeff Nielson (Gold Eagle) is a straight shooter.
Whats up with your afraid badselfs? You all are missing out on this rally? With the tripling or more of the money suppy I project a DOW of 40K. Get in now on the ground floor.... LOL
Many here are not after the 'dirty money'.
Hey man, corporations have rights. They US gov CORP has the "right" to levy fines against the Bankster CORPS, which in turn will pass that cost along to the sheeple as "the cost of doing business".
Ssshhhhhwwwwwweeeeeeeeeeeeeeetttttttttt!
No one is responsible, no one goes to jail.
That sharp pain in your ass? That's GOV/BANK cock.
The funny part is YOU elected them (by all means keep voting) and THEY appointed the Banksters.
Seen any action done by the Red Team / Blue Team gang?
I believe part of the fed charter was the middle finger towards anything the gov/people requests for eternity.
Thank Dog they have a annual audit so we know the truth.
Oh wait....
So the FED is continuing QE by holding the bonds they bought, or they are active partners with the big banks in currency manipulation, or both?
Yes, biggest Ponzi bubble house of cards ever built in the history of the U.S. - South Seas Company and Black Tulips big.
But Timmie told us on live TV that they "will NOT monetize the debt".
" I said no such thing....and, that's not me in the video. That'll be all. Thank you!" - Tim Geithner
He is a follower of the "if a lie is told with a straight face, it isn't a lie" thought process.
It isn't a lie if the one telling it believes it. Right?
Wow .. The FED not doing the right thing? It's worth asking again.
Wow .. The FED not doing the right thing?
repudiate the debt to the Federal Reserve and end it. If our politicians weren't already drunk from the over-flowing punch bowl of Federal Reserve Notes, the US could issue it's own currency.
Repudiate all debt. Free the slaves. Render the false wealth of the criminals worthless.
Repudiate the debt held by the Federal Reserve AND force that Private bank into bankruptcy, open the books and let's have a look.
Put up a cadidate that will swear to end the fed, get him elected, and hold him to it. Audit the Treasury (Fort Knox) and issue United States Notes backed by silver and pass a Constitutional amendment limiting leverage to 10 for 1.
Get rid of Fanny and Freddie, put limits and strict requirements on CDO and CDS. Don't possess the underlying asset (CDO)? Then you can't buy a CDS because that would be gambling. Banish MERS and require all mortgages be recorded at the courthouse in the locality of the mortgaged property. Let CDO consist of whole mortgages so non performing mortages can be disposed of and the instrument marked to market. Require a transparent exchange to monitor and control CDO and CDS transaction.
Bring back basic underwritering to the mortgage industry and let the private sector, at their own peril, set interest rates keep 20% of every loan on there balance sheet. Require, without exception, a 20% down payment to get a mortgage. That should slow things down a little. Real Estate prices should come down as we reduce the pool of qualified applicants.
Pass an amendment to reverse the Citizens United vs. FEC decision and limit political contributions
Fuck you Goldman-Sachs
Very good and interesting post. You should expand on issued raised by it. Milestones
Milestone,
You asked for it and this is off the top of my head.
I would like my ideas taken in context of there being very motivated and underutilized professionals who have even better ideas if only they had an honest platform to pitch ideas back and forth. Some ideas are way out there but, we must consider everything, by all, and use the ideas most likely to improve the middle class while avoiding the, unreasonable, burden on those in the top of the food chain.
Basic dignity, fair and just treatment for all should be our goal. We live in a country full of massive human and natural resources and we should use this advantage for everyones benefit.
I find it insulting we don't have an organized and efficient health care system. We allow our youth to be corrupted and their legacy squandered for the benefit of thirty families to the detriment of the other millions of families.
We already have martial law so enforcement of a new laws passed to reconcile the FRBNY and the TBTF; that would now fail. Let the chips fall were they may. Let the free markets control interest rates and lending. Let the lender be derive his standards. If a bank is insolvent, then dissolve the bank.
The key is to put the vote in the hands of the people. Out law corporate financing of candidates so the best candidate is truly considered. Let us use the internet to decide who will lead this country. Outlaw campaign commercials on TV and Radio
Get rid of EBT cards so the people of this country can see the true state of the economy. Open soup kitchens in the gated communities and bus people in, to places like Laguna Beach, Palm Beach, and let the 1% see what they have created through their trickle down insanity. Let the people on the dole riot in the 1% neighborhoods and around their fancy condos on Park Ave instead of Watts and the lower East Side.
Restrict the exports of food and raw materials so we can feed the nation. Since there are more foreclosed homes than homeless people beef up squatters rights and let them have a place to live.
World War ended the last depression and I would like to avoid this at all cost. It would be much easier to solve our problems internally than externally.
Shut down the Bank of International Settlement and if there is another world war let it start by attacking Switzerland to cut off funding to our enemies. Repudiate dual citizenship. Let them make a choice.....here or there?
Bring the military home because if we repudiate the debt we will need the armed forces to defend the borders against creditors.
Make Manhattan an autonomous region, seal it off and let them pay for their on infrastructure, municipal gov't and everything else. No more freebies from the Federal Gov't. Let them tax Wall Street to pay for there needs. 12 trillion dollars has flowed through Wall Street since 2008. That would bring them to their knees.
Make high speed internet a basic, fundamental human right. amend the bill of rights to include internet access as an inalienable right. Nationalize the internet. Let communities educate their citizens as they see fit.
Institute a high speed rail from coast to coast and Street cars in cities. Massive solar projects to solve our energy needs. This will create real wealth and we won't need the ME. Let them fight their own battles and if they want to fight on our turf let them bring it on. Pull out the sixth fleet and reduce our involvement in the Pacific. Let China and Russia exert hegemony in that region.
If we can't make it with manufacturing then let us fall back on our agriculture.
Oh! One more thing. Pull out and end all funding for the UN. There have been 65 major wars since the UN creation, there have been over 2000 nuclear weapons detonated on Earth since the creation of the UN. Any fool can see the UN is a waste of time and a tool of those advancing the NWO.
Hire 20,000 freshly minted prosecutors and let the DOJ understand that the past and present felonies perpetrated by TBTF are, in fact, continuous criminal conspiracies against the people of the USA and, therefore, have no statute of limitations and release the the US Prosecutors to pillage Wall Street and get Madoff some roommates.
....limit political contributions.
Yep if you cant cast a ballot for them you cant pass a dollar to them. Voting with your dollars is no different than voting with your ballot.
That includes unions not passing on dollars.
I would also add stop non-citizens from voting. Require a picture ID to vote.
Good article. Now PLEASE learn how to use (or not use) a semicolon. EVERY semicolon in that story should be changed to a comma. Hate to be pedantic, but it really undermines your message...
Did I miss the semicolons?
edit: 0-2 today...
Fixed! Thanks!
What mechanism is being used to counterfeit 100%?
As the Federal Reserve (publicly) takes its “quantitative easing” to zero, what it is actually doing is taking its counterfeiting of U.S. currency toward 100%.
All wars are economic wars. Just because bombs aren't being dropped does not mean the government isn't defending/pre-emptively stricking to protect its existence. An existence based on skimming wealth from those it governs. An existence symbiotic with its central bank.
Sigh, to be a fly on the wall during meetings of the ESF...
It has to be a slow day at the fight club when after over a thousand reads the first post is from a grammarian. :)
LOL...sorry...
Should there not be a space between the "." and the "s" as in, LOL... sorry... and not "LOL...sorry..."?
This is fun. I know... I am guilty too.
No apology needed. Literacy is a good thing.
Literacy a "good thing?!?"
Bad grammer and punctuation is potentially fatal:
Let's eat, Granma!
Let's eat Granma!
At the risk of a joke turning into a hopeless conflagration, (at least Vooter seems to have recognized it as such) bad grammar (and spelling too for that matter) is potentially fatal. Bad punctuation is potentially fatal. But, bad grammar and punctuation are potentially fatal. What can I say, it was a brutally slow day today. Drahgi seems to have put the markets to sleep.
Actually, I intended the "and" as a disjunctive conjuctive.
Seriously, you guys sound like you iron your underwear.
Hey, even though the world is going to hell in a hand basket and least we have the prospect of good grammar to fall back on.
"Dear Abbey. I have been bleeding profusely from my eyes and anus over the last free days; should I be concerned that I might have Ebola"
"Dear Bringontheasteroid. Not as concerned as you should be in regards your incorrect use of semi-colons"
Hey, even though the world is going to hell in a hand basket and least we have the prospect of good grammar to fall back on.
"Dear Abbey. I have been bleeding profusely from my eyes and anus over the last free days; should I be concerned that I might have Ebola"
"Dear Bringontheasteroid. Not as concerned as you should be in regards your incorrect use of semi-colons"
"...Dear Abbey, dear Abbey, you won't believe this:
My stomach makes noises whenever I kiss!
My Girlfriend tells me it's all in my head,
But the rumblin' inside me sez 'write you instead!'
Signed, Noisemaker..." --John Prine
What are you, Martha Fuckin' Stewart or something?
So, when can we move on to PM manipulation which, according to BAFIN is even worse that Fx manipulation?
Oh, and I thought "Belgium" was buying all those Treasuries?......;-)