This massive money creation tactic is the Fed's last-ditch plan to desperately try to save the economy. "I think the country should have panicked over what the Fed is saying that we have lost control," said Ron Paul, "and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time."
Peter Schiff added, "This is a disastrous monetary policy; it's kamikaze monetary policy. (End Of the American Dream)
And he's right. It's suicide. It's also highly offensive to anyone who can actually do math... which, sadly, isn't that many people these days.
Steal from the poor to give to the rich
But the rich banksters are simultaneously rolling in FREE Fed cash, and instead of actually lending this money out and doing something useful with it, they crank up their own executive bonuses to make sure they get paid while the rest of the economy crumbles. And why? It's simple: Because people are crooks, and if they get handed $40 billion a month in free money, they're just going to grin and say, "How can we get MORE?"
That's the credo of the banks: MORE!
When you're out of a job and looking for honest work just to put a roof over your head, the bank is repossessing your house and screaming "MORE!"
When you can't make that car payment and you have to start riding the bus with the minimum wage masses, the banks scream "MORE!"
When you're trying to put healthy food on the table for your own family, and you see food prices ratcheting higher and higher as the value of your hard-earned dollar erodes, the banks scream "MORE!"
This mantra is all they know. The top global banks do not operate on compassion, benefit to society, fairness or even anything resembling lawful activity. They simply hornswaggle their way into the receiving end of ALL the money: Mortgage money, bailout money, government money and of course Fed money. That's the game, you see: Screw the whole world and everybody in it. There's MORE to be had!
Fed pumping is essentially a Ponzi scheme
The problem with all Ponzi schemes is that their very survival depends on continually expanding the money base upon which they operate. And since mathematics tells us that no currency system can be expanded to infinity, every such Ponzi-like system must, by definition, come crashing down.
We've seen it time and time again, of course. Zimbabwe cranked its currency into hyperinflation and then collapsed. So did Argentina. Chile. Peru. Weimar Germany, too:
In 1922, the largest denomination of the Papiermark was 50,000. A year later it was 100 Trillion. This means that by December 1923, the exchange rate with the US Dollar was 4.2 Trillion to 1. It is estimated that by November 1923, the yearly inflation rate was considered 325,000,000%.
Yugoslavia: "...during the height of hyperinflation (December 1994), inflation was increasing by a rate of 100% per day."
Peru: "Peruvian government decided again to replace the currency, this time with the Neuvo Sol, at a rate of 1,000,000,000 to 1."
Zimbabwe: "In August 2008, the government removed ten zeros from the currency, and 10 Billion ZWD became equal to 1 New ZWD, with an estimated annual inflation rate of about 500 quintillion (18 zeros) percent, with a monthly rate of 13 billion percent."