The only barrier to this scheme (a scheme that will enable the banksters to end up with both the cash and the assets) is that the Fed might soon become insolvent itself if it too much aids and abets the banksters who run it, in this siphoning off of the national wealth. Many think that the Fed is close to insolvency now, because they can't unload all of the trash they have overpaid for without taking a terminal hit themselves. But of course that notion is mistaken because the Fed has the ability to simply create all the money it needs out of thin air.
Will fiscal reality ever force the Fed to quit acting as a conduit to help the big banks loot the Treasury? Or will banksters forever look for new accounting tricks to hide their insolvency as they double-down on the looting? It remains to be seen.
When the Fed makes a profit over and above its operating expenses, it must by law remit these profits to the Treasury. That was a condition of the Feds creation; otherwise they could simply create 100 quadrillion dollars and grow fat off of the interest. So they are not supposed to profit from such an obvious misuse of their currency-issuing authority. However, they have found subtle ways of doing exactly that.
Under a new rule change, losses will not count as losses. Instead they will be called "negative liabilities.' That is to say, they will be counted as a credit against future profits that they would have to, in theory, turn over to the Treasury. So now the Fed can "lose' a trillion dollars a year (to their friends the banksters) for the next two decades, but as long as they create enough money out of thin air to pay operating expenses, they are technically still solvent. Brilliant, no? Meanwhile incestuous personnel move back and forth, as employees, between the Fed and the banks that employ the banksters. And how corrupt is that?!
So here we have an absurd accounting fiction that will enable the Fed to sell back the toxic assets to their bankster buddies at bargain basement prices. That's what's coming next. And who is going to compete with the big banks in buying those bargain assets? Not Americans, as we are starved for cash out here in the heartland. No, our securities, mortgages and other debt, will be bought up by the banksters who essentially stole from us the money they are now using to buy us out. Foreigners like the Chinese will be the only ones able to bid against them, and it's people from both these groups who will likely be our future masters. It is written that the Borrower is Servant to the Lender. And barring the miracle of some kind of mass awakening (in time), that is going to be our fate.
Andrew Jackson ended the pillaging by the central bankers of his generation . . by ending the central bank -" just as Ron Paul wants to do today. The American people will find and turn to a new Andrew Jackson, or they will slide into a debt slavery from which they will not emerge for many decades.
"How could we have possibly known what was going to happen?!"
According to a recent report in the N.Y. Times, Citigroup executives conceded that they had paid little attention to mortgage-related risks. Executives at the American International Group were found to have been blind to its $79 billion exposure to credit-default swaps, a kind of insurance that was sold to investors seeking protection against a drop in the value of securities backed by home loans. At Merrill Lynch, managers were "surprised' when seemingly secure mortgage investments suddenly suffered huge losses.
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