QE3 To Infinity And Beyond
October 1, 2012 by Bob Livingston
Federal Reserve Chairman Helicopter Ben Bernanke stepped up his war on Americans with his recent announcement of QE3 (quantitative easing) to infinity.
QE is Bernanke-speak for debasing the currency. It’s a time-honored practice for stealing the wealth of the middle and lower classes and transferring it to the politicians and banking cabal and supporting perpetual war.
According to the bearded wonder, the Fed is embarking on an open-ended program to buy mortgage-backed securities (MBS) from banks. The plan, he says, is to buy $40 billion in MBS each month ad infinitum, believing this will spur the moribund housing market into action and reduce unemployment. Whether he really believes what he says is open for debate. If he really does, he should be replaced for incompetence. No, let me restate: He should be replaced for incompetence regardless.
The Fed has “bought” more than $1 trillion worth of MBS since 2009, to no avail. Housing prices remain stagnant and unemployment remains above 8 percent (as it has been for almost four years). Yet we are told that all that is needed is more QE — this time, to infinity and beyond.
Few of us realize that most of our money is just a bunch of electronic blips. We talk about our paper money system, but paper money represents only a very small percentage. These electronic blips are what Bernanke is pushing into the reserve funds of banks in exchange for MBS.
Most of our monetary system is electronic; it is created and erased with great care. This means that daily we place our faith in ether, believing that we have money, savings and wealth.
Our electronic money, which we believe is wealth, makes the Dutch “Tulip Bubble” of the 1600s seem sound. People invested their life savings in tulip bulbs, thinking of tulip bulbs as wealth. At least the Dutch of that day could see and feel the tulip bulbs.
Not so our electronic money. We can’t see it, we can’t touch it, nor can we smell it. The government uses electronic money to steal without anyone being aware. They can and do transfer wealth from the American people by massive electronic creation of money. This is subtle depreciation and devaluation of the U.S. dollar. There need be no official announcement. There is no legislative approval. It is silent. It is a stealth system of theft. All modern financial instruments are electronic. Think!
Therefore, the paper money that you have in your pocket is gross deception. We look at it, and it looks the same as always. But it is moving toward worthlessness all the time; few people can see or understand that. This, my friends, is the work of the Federal Reserve, “our central bank.” The dollar has lost more than 95 percent of its purchasing power since the Fed was instituted in 1913.
Do you know that a national central bank came right out of Karl Marx’s Communist Manifesto? Dr. Ron Paul knows it. That’s why he has spent years trying to get rid of it. He knows that there is no such thing as a central bank (Federal Reserve) and honest money at the same time. If others of the political class know it, they aren’t saying so — particularly not the two rubes auditioning for chief puppet to the banking interests and globalists.
“The problem with fiat currency systems is that they lack the self-correcting mechanisms of a gold standard; if prices increase too much, there is no market mechanism to bring them back down. The historical evidence over many centuries and around the world suggests that governments tend to follow fiscal and monetary policies that foster higher prices. In the absence of a gold standard, there is little to restrain them from printing fiat money to excess. All the fiat currencies of the world have lost value over the years, and none is immune from the rot of officially sponsored inflating.” (quoted from AIER.ORG)
Interest rates on savings are at or near zero. This is devastating to savers and those on fixed incomes. Artificially low loan interest rates encourage malinvestment. The influx of QE into the system creates bubbles and temporary, unsustainable spikes in the stock markets. Americans have been deluded into thinking a rising stock market signifies a healthy (or improving) economy. But this is not so when the rise is artificial, sparked by an influx of fake money.
Only some few buy gold and silver to exchange the electronic money system into physical wealth. Unfortunately, it is too few.
We hear every day how costs go up, especially college and university tuition. Well, fancy this reality. There is a website entitled http://www.PridedinGold.com, where we can see that presently those who pay in gold for one year at Yale University will find that it costs about the same as it did in 1900: 1 kilogram of gold.
Gold and silver are permanent money. Get as much as you can as soon as you can, and hold onto it. Thanks to QE3 to infinity, commodities are beginning to rise to infinity. This includes gold and silver.
All dollar assets are evaporating. Only gold, silver, land and commodities appreciate when paper money is collapsing. Paper money is the rot of our land; but politicians, bankers and government love it. It allows them to line their pockets and spread more welfare money to a deceived and dumbed down dependent class. With only one or two exceptions, the political class prefers to keep the present system because they benefit from it.
They create it and perpetuate it as long as they can at all costs, because it is a wealth-transfer system to the government from the middle class. But this time, we are treading where none have before trod.
Look to Greece and Spain to see where we are headed. We would be there already were it not for massive money printing to pay for food stamps and 99-week unemployment benefits. This keeps the people fed, content and distracted for a time. But Greece and Spain show what happens when the money collapses.
What I call the “Great Reset” is coming. Neglect to prepare at your own risk. It will be a tough time for many people.
But once we go through the fire, a system based on sound money and Constitutional principles will be established.