Federal Reserve Bails Us Out Again!
The Fed said it will spend $40 billion a month purchasing mortgage debt through the end of the year, and left open the possibility of continuing the program until conditions improve. Additionally, it will continue its bond purchases as well as push back its deadline for raising short-term interest rates from 2014 to 2015 -- another way The Fed's attempted to spur growth through more borrowing and spending. See https://www.pbs.org/newshour/rundown/2012/09/qe3-fed-launches-third-attempt-to-stimulate-economy.html
Forgive me if I am just a little underwhelmed by The Fed’s announcement of a new Quantitative Easement Plan
As I understand it … The Fed (The Federal Reserve Bank) is not part of our United States Government. As I understand it … any and all monies created (printed or digitized) are sold to the Federal Government at full face value for which, in addition, we owe interest. In fact, all monies currently in circulation are a debt the USA owes to the Federal Reserve.
That being said … it then follows that …
When The Fed creates more money … let’s say $40 Billion per month … it increases the National Debt, doesn’t it? That couldn’t possibly ease the financial crisis, could it? But believe it or not, things actually get worse from here. If The Fed buys these mortgage debts and at some point must foreclose on the loans … they get the property and we still owe the original debt. Don’t forget … all monies in circulation are part of the National Debt … and in effect that means those funds can never be paid back as long as they are still in circulation.
So this is how it unfolds. The money is created (again, out of thin air) and we owe that money plus interest. The Fed buys mortgage debt which is backed by hard assets called real estate. In the event of a foreclosure The Fed ends up owning the real estate … not the US Government. So in effect they have no risk, all potential rewards, collect interest on the debt from both sides and if everything goes down the big flush … they get to determine the disposition of the real estate (by buying it themselves or even selling to their rich buddies) … all at bargain basement prices.
The Fed owns all the money. We own no money … just the debt of that money and the interest accrued. And soon the banksters will own all the real estate too. The only thing left … that we can own … is our labor … and that will go toward paying the interest outstanding on the National Debt created … so the banks could foreclose and own all the real estate. Hats off to the people in Washington … they don’t know it yet … but they too will sink with the ship.
Oh, by the way ... there is actually a term for this situation where humans own only their labors against an outstanding debt. Can you say ... “Debt Slaves”?
Oops, I almost forgot … check your watch … is it time to wake up yet?