The Federal Reserve is creating hundreds of billions of dollars out of thin air and using that money to buy U.S. government debt and mortgage-backed securities and take them out of circulation. Since the middle of 2008, these purchases have caused the Fed's balance sheet to balloon from under a trillion dollars to nearly four trillion dollars. This represents the greatest central bank intervention in the history of the planet, and Janet Yellen says that she does not anticipate that it will end any time soon because "the recovery is still fragile". Of course, as I showed the other day, the truth is that quantitative easing has done essentially nothing for the average person on the street. But what QE has done is that it has sent stocks soaring to record highs. Unfortunately, this stock market bubble is completely and totally divorced from economic reality, and when the easy money is taken away the bubble will collapse.Nothing has its own interests more firmly in mind than our ruling financial and political class continually moving to protect themselves. When that bubble collapses, you can rest assured they will not suffer the consequences of their actions: we will. On top of suffering the effects of Obamacare. This is no different than when the housing bubble burst and millions lost their savings while the few profited, when Wall Street was bailed out, etc. Enough is enough - but even if all else fails in trying to force our politicians to listen to their constituents, we have the option of using the Liberty Amendments to work around them through the states.
Friday, November 15, 2013
Time for a new topic, though it continues on the theme of Big Government interfering with American prosperity. This from the dude over at Economic Collapse Blog. While not a journalist, he knows the Fed.