"This is the biggest transfer of wealth in history," as the giant banks have handed their toxic debts from fraudulent activities to the countries and their people.
Even more worrisome, the Federal Reserve Bank is also corrupt. By way of its daily operation, all of us, including our government, are forced (either directly or indirectly) to pay interest on all money that is borrowed from the Fed and spent or loaned out. The Fed creates money out of thin air and uses it to buy Treasury bonds (T-bills) from the U.S. Treasury -- a continuing series of transactions now taking place at the rate of $85 billion per month.
Nobel economist Joseph Stiglitz said in 2009 that Geithner's toxic asset plan (i.e. the Fed's purchase of junk bonds from the biggest banks) "amounts to a robbery of the American people".
As of August, 2014, the Fed holds approximately $2.3 trillion in long-term Treasuries (T-bills), and $1.7 trillion in GSE (Government Sponsored Enterprise) securities (a form of welfare for corporations). According to Richard Fisher, president of the Dallas Federal Reserve Bank, the Fed now holds more than a third of the nation's mortgage-backed securities and nearly a quarter of outstanding T-bills. All three rounds of "Quantitative Easing," as well as the Fed's "normal" open-market purchases (of T-bills from the US Treasury Dept, and junk bonds that our big banks got stuck with during the last financial crisis), were supposed to increase economic activity.
Quantitative Easing: Was It Worth It?
However, instead of creating new money for additional lending for American businesses, the Fed's QE policies have simply expanded the amount of excess reserves in the banking system. In other words, banks have mostly decided to hold onto the cash that the Fed essentially gave them when it executed all those securities (junk bond) purchases. Consequently, it is rather difficult to argue that these Fed policies have done much to expand the economy.
Never forget that the Fed issues all our nation's currency, not the government, and charges interest on each dollar it loans out to our government. Then remember that if the Fed didn't exist, this huge and ever increasing accumulation of indebtedness (on which unconsenting US taxpayers must pay the interest) wouldn't occur because the US government would itself create the money it spent, and would not have to borrow it from the Fed, at interest.
Also, it is the Fed that's the source of quantitative easing (QE) which is principally a means of transferring federal revenue (created out of thin air by the Fed and adding it to our national indebtedness) to the rich.
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