From Quantitative Easing To Quantitative Looting And Beyond
April 14, 2013
Quantitative Easing is best thought of as legalized pick pocketing at a crowded train station. Technically it is defined as the Central Bank buying assets normally held by the 1/10th of 1%. It officially began in Japan in 2001. Thus is what it does:
1) It buys worthless assets held by banks at 100 cents on the dollar. This subsidizes mortgage-backed securities (MBS) which were fraudulent. These purchases allowed the bankers who own the Federal Reserve to avoid doing jail time with common criminals.
2) The government passed NAFTA which sent 56,000 manufacturing plants overseas. This is intended to deindustrialize America so it will lose World War III and Americans cannot demand the return of the tens of trillions of dollars the bankers stole from then. The US budget has grown from 2.4 to 3.8 trillion dollars over the past 10 years precisely because Americans have few high paying jobs and require more assistance. 100 million working age Americans have no jobs. The number of people disabled has doubled. Japan, the UK, America and the Eurozone must have their Central banks monetize debt. What this means in the case of the Federal Reserve is the FED loans money at a low rate to banks which loan it back to the US Treasury at a higher rate by buying US bonds. This dampens inflation by keeping money out of the hands of the people.
3) The Federal Reserve loaned out 7 trillion dollars at 0.01% to insiders so they could buy commodities in the futures markets and drive up oil and food prices. Western governments use false consumer price data and cost of living indexes so their official estimates of inflation are about one third of the real rate. This cuts wage and benefits that use cost of living indexes to adjust for inflation.