The Federal Reserve announced Wednesday it would buy $300 billion of long-term Treasurys over the next six months. The Fed also announced plans to buy an additional $750 billion in mortgage-backed securities.
To those of you who don't understand, the Fed is not a government institution. It's a private bank controlled by the world's wealthiest. No I'm not talking about Bill Gates or Warren Buffet. I'm talking about the really wealthy; folks that kept guys like J.P. Morgan to run errands. Families that endowed institutions to train the likes of Bernake and Geithner from pups.
So what do you think our friends, these international banksters, are up to? Think about it.
They “buy” $300 billion of Treasury Bills with money they create out of nothing. Their cost? Nothing. We will eventually pay them $300 billion plus interest. This will come from taxes on us. In time, the $300 billion will increase the money supply, through the magic of fractional reserve banking, by some $2.7 trillion.
Albeit, given the inflation it will cause, $300 billion, even with interest, won't be worth what it is today. So what. Whatever it's worth, it's more than the nothing they paid.
Oh, but that's not the end of it. They're also going to buy $750 billion of Freddie and Fannie's dubious mortgages. Wow are these guys ever stupid, huh?
What will they pay for 'em? Right, nothing. As the cash roles in, again, it's all profit. And the Fed doesn't even have to pay taxes. And Freddie and Fannie can now go out and make the loans to get the pyramid going again.
You're catching on now. Right - that $750 billion, again through the magic of fractional reserve banking, will eventually increase the money supply another $6.7 trillion. More and more money chasing the same old goods and services. The essence of inflation.
But get this. According to the Congressional Budget Office, the forthcoming Obama deficits will require another $9 trillion in the years to come. It will either come from taxes or borrowing.
Which do you think it will be?
With the money supply already spiked by some $8 or $9 trillion (more than a 50% increase) What will the interest rates have to be to borrow the trillions to come? And who will collect the interest? Take a wild guess.
Let's be generous and assume the administration finds the political will to cover a third of the deficits by raising taxes on the rich. That is truly generous given their current inclination to open the Treasury to the aristocracy.
This would mean $6 trillion will be borrowed from, guess who? Right again, the international banksters at the Fed, who will repeat their old trick, money from nothing and the checks are free.
That $6 trillion could conceivably increase the money supply to three times its current size.
And our children, grandchildren, and their children and grandchildren and their children and grandchildren will be paying it off with interest to the Rothschilds, Rockefellers, Warbucks, Loebs, Schiffs, et al... probably forever.
But you say, at least we stuck 'em with those toxic assets !
Really? As inflation works, the underlying asset's price inflates. While a house will always be a house, and even if it's market price today might only be 60% of the mortgage, soon enough the mortgage will be 60% of the market price. Pretty clever, huh?
And anyway, not only didn't they pay anything for the mortgages to begin with, they're collecting the lion's share of the interest on probably six to nine times the money they printed. Wow ! It's beyond clever. Now I know why these guys get the big bucks.
And when a homeowner fails to pay the mortgage because they don't have a job, foreclosure, auction, and someone new will be paying the mortgage or rent.
Who gave these guys control of the money supply anyway?
And when “stagflation” has us by the throat; when we haven't got twenty bucks for a loaf of bread, and even if we had a job, couldn't afford the gas to get to work, they'll trot out the final solution, their brave new world government.
"Blessed by god from the beginning; a new order for the ages."
Of course it will be controlled by the banksters, just like this one.
