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September 17th, 2012 
FAKE NEWS for the Zionist agenda
Michael Snyder
Economic Collapse Blog
September 17, 2012
The mainstream media is hailing QE3 as a great victory for the U.S. economy. On nearly every news broadcast, the “talking heads” are declaring that Ben Bernanke’s decision to pump 40 billion dollars a month into our financial system is definitely going to help solve our economic problems. The money for QE3 is being created out of thin air and this round of quantitative easing is going to be “open-ended” which means that the Federal Reserve is going to keep doing it for as long as they feel like it. But is this really good for the average American on the street? No way. Despite two previous rounds of quantitative easing, median household income has still fallen for four years in a row, the employment rate has not bounced back since the end of the last recession, and new home sales have remained near record lows. So what have the previous rounds of quantitative easing accomplished? Well, they have driven up the prices of financial assets. Those that own stocks have done very well the past couple of years. So who owns stocks? The wealthy do. In fact, 82 percent of all individually held stocks are owned by the wealthiest 5 percent of all Americans. Those that have invested in commodities have also done very nicely in recent years. We have seen gold, silver, oil and agricultural commodities all do very well. But that also means that average Americans are paying more for basic necessities such as food and gasoline. So the first two rounds of quantitative easing made the wealthy even wealthier while causing living standards to fall for all the rest of us. Is there any reason to believe that QE3 will be any different?
Of course not.
This time the Federal Reserve is focused on buying mortgage-backed securities. Yes, the same financial garbage that helped cause the last crisis. The Fed plans to gobble up tens of billions of dollars of that trash every month from now on.
But will the Fed pay true market value for those mortgage-backed securities? If you believe that, I have a bridge to sell you.
So this is going to be a huge windfall for some people, and that does not include us.
Not a single penny of this 40 billion dollars a month will go directly into our hands. The theory is that it will “filter down” to us eventually.
But that hasn’t happened with previous rounds of quantitative easing.
So where does the money go?
A recent CNBC article discussed a very interesting report from the Bank of England about the effects of quantitative easing….
It said that the Bank of England’s policies of quantitative easing – similar to the Fed’s – had benefited mainly the wealthy.
Specifically, it said that its QE program had boosted the value of stocks and bonds by 26 percent, or about $970 billion. It said that about 40 percent of those gains went to the richest 5 percent of British households.
Many said the BOE’s easing added to social anger and unrest. Dhaval Joshi, of BCA Research wrote that “QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it.”
Wow.
Who benefits from quantitative easing?
According to the Bank of England, it is “mainly the wealthy” who benefit.
As I noted the other day, Donald Trump said essentially the same thing when he told CNBC the following….
“People like me will benefit from this.”
As I already discussed above, a lot of quantitative easing money gets into the financial markets where it pumps up the prices of financial assets.
But not all of it goes there.
We were told that the whole idea behind quantitative easing was that it was supposed to get banks lending again, but this has not happened. Instead, banks are sitting on unprecedented amounts of money. Just look at how the first two rounds of quantitative easing have caused excess reserves being held by banks to explode from close to zero to over 1.5 trillion dollars….
Of course one of the biggest problems is that the Federal Reserve is still paying banks not to lend money.
Yes, you read that correctly.
The Federal Reserve is paying banks to park money with them. So instead of risking their money by lending it out to us, the banks can just park it at the Fed and make risk-free profits for as long as they want.
Must be nice.
If the Federal Reserve really wanted banks to start lending again, all the Fed has to do is to stop paying banks not to lend money.
But of course if more than 1.5 trillion dollars suddenly started flooding into our economy (especially after you consider the multiplier effect) we would be dealing with nightmarish inflation unlike anything we have ever seen before.
So if you want to know why inflation was not even worse after QE1 and QE2 it is because more than a trillion and a half dollars is being parked with the Fed.
So did QE1 and QE2 do any good for average Americans?
Let’s go to the charts.
This first chart shows that the percentage of working age Americans with a job has stayed extremely flat since the end of the last recession.
Does it look like QE1 and QE2 made a difference to you? I don’t see any difference….
Okay, but what about new home sales?
Did QE1 and QE2 help them?
Nope….
But the mainstream media is still buying the baloney the Fed is pushing.
The mainstream media is promising us that home sales will soon rise and that lots of new jobs are on the way.
Sadly, the truth is that things have steadily gotten worse for average Americans over the past 4 years despite all of the money printing the Fed has been doing. If you doubt this, just read this article.
But this is all that Ben Bernanke seems to have left. When printing money doesn’t work, his answer is to print even more money.
QE3 is likely to cause agricultural commodities and the price of oil to rise even further.
So unless you can convince your employer to give you a corresponding raise, this is going to mean that your paychecks are not going to go as far as they did before.
And so that means a lower standard of living.
In a recent article, Bruce Krasting issued an ominous warning….
Higher inflation expectations in the US will filter around the globe. Post the extraordinary steps Ben took yesterday, people will be stocking up on “stuff”. Things like rice, flour, cooking oil, soy, wheat and sugar. If you can eat it, buy it now. It will be more expensive in a month. While your at it, fill up the gas tank, the price is going up next week and every week for the next few months.
In addition, the policy of the Federal Reserve of keeping interest rates as low as possible is absolutely crippling the finances of many retirees. Even the former president of the Federal Reserve Bank of Atlanta, William F. Ford, recognizes this….
One of the overlooked consequences of the Federal Reserve’s recent rounds of monetary stimulus is the adverse impact those policies have had on the interest income of savers. The prolonged and abnormally low interest-rate structure put in place by the Fed has made life particularly difficult for retirees and others who depend on conservative interest-sensitive investments. But the negative effects do not stop there. They spillover into the overall performance of the economy.
Just about everything that the Federal Reserve does these days is bad for ordinary Americans.
But the Fed is not going to stop. The Fed is addicted to money printing now, and as a recent article by Peter Schiff explained, the Fed is just going to “up the dosage” until it gets what it wants….
The Fed will try to conjure a recovery on the backs of currency debasement. It will not stop or alter from this course. If the economy fails to respond to the drugs, Bernanke will simply up the dosage. In fact, he is so convinced we will remain dependent on quantitative easing that he explicitly said he won’t turn off the spigots even if things noticeably improve.
This is complete and total incompetence by Ben Bernanke and his cohorts over at the Fed.
Economist Marc Faber believes that Ben Bernanke should resign, and I agree with him….
“If I had messed up as badly as Bernanke I would for sure resign. The mandate of the Fed to boost asset prices and thereby create wealth is ludicrous — it doesn’t work that way. It’s a temporary boost followed by a crash.”
And yes, a crash is coming.
Bernanke can try to put it off for a while, but every action he takes is just making the eventual crash even worse.
And some in the financial community clearly recognize this. For example, credit rating agency Egan-Jones downgraded the credit rating of the United States to AA- on Friday.
The primary reason they gave for the downgrade was QE3.
Ben Bernanke and the Federal Reserve are destroying the U.S. dollar and destroying our financial system for a short-term economic sugar high.
It is utter insanity.
That is why we desperately need to get the American people educated about the Federal Reserve system. It is at the very heart of our economic problems and yet neither major political party is willing to blame the Fed for the problems that it is causing.
A bunch of unelected bankers that are not accountable to the American people are running our economy into the ground and the American people do not even realize what is happening.
Please share this article with as many people as you can. Hopefully we can get the American people to understand that more money printing is definitely not the solution to our problems.
8 Responses to “How QE3 Will Make The Wealthy Even Wealthier While Causing Living Standards To Fall For The Rest Of Us”
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An interesting book that goes into the details and names several of the puppets that are involved in the international Banksters having the Zionist desire to own the planet. If it were not for the puppets at work to push the NWO agenda it would surely fail.The book “The Judas Goats” written by Micheal Collins Piper.Our 2 party power system could care less about standing in soup lines or creating the worst unemployment numbers since the Great Depression . Or just so extremely excited about going to war. They will not pick up a rifle , they are not on patrol, their children or grandchildren wont die for dollars.
How much does the economic terrorist group, the Federal Reserve, pay the U.S. Mint for $40 billion….at most 4 cents on the dollar, but probably less….
Where the money will really go, who knows….they lie about everything….and by law, no one can monitor them…..
The Federal Reserve is the second biggest criminal operation of all time, ranking second just below the Federal Government
agentbluescreen Reply:
September 17th, 2012 at 5:19 am
The Tory-Likudnik-Communists and the CIA-Pentagon-Communists are one under the Union of Zionazi Socialist Republics
GetitGotitGood Reply:
September 17th, 2012 at 6:24 am
Yea, and they pay them with what? ………… The worthless Federal Reserve Note.
“The Federal Reserve is the second biggest criminal operation of all time, ranking second just below the Federal Government”
The Fed control the rogue u.s. government. For propaganda purposes they try to appear subservient but they’re pretty much the boss. Soon, if not stopped, they will reveal this… and you think it’s bad now,,, wait!
Queer Expansion of the labor exchange currency supplies only has one purpose. It makes parasitic mortgage-backed junk bond dealers and predatory, incompetent and failed mortgage lenders whole at the expense of every productive business, worker and producer AND thus ALSO freely bestows upon them alone, real, tangible (defaulted) collateral assets (real estate properties) that otherwise would be in public receivership, or have breen seized for unpaid taxes from actually-bankrupt lender-speculators.
In other words it is rewarding and mortgage-loan insuring property flippers who are the principle cause of all domestic inflation in the first place WHILE being funded by (direct criminal monetization) the illicit profits of counterfeiting-inflation of the common labor exchange currency supplies (devaluing currencies) ITSELF!
The Tory-Rothschid central-banksters are now in full fledged counterfeiting and embezzling mode, defrauding the economies of the world with a communist, illegal, illicit mortgage-lender insurance Ponzi-scheme to the tune of a $trillion a year, until it all collapses.
And they end up rich and holding all the collateral property, while we end up working for and producing for bits of toilet paper.
A few days ago this blog said Russia and China was americas worse enemy because they were trying to break away from the Federal Reserve Note.
Now americans have to be “educated” about the Federal Reserve, americas real number one enemy, insinuating it’s dumbsh** americans fault for somehow not controlling the Fed.
No mention of the Feds criminality or u.s. government complicity. Just about everything the Fed is doing now is against the law. When the Fed was set up, none of this bs was to be allowed. Heck they started their printing machines and illegally manipulation of the markets in the twenties,,, then their government buddies passed defacto legislation to make the manipulation legal.
The Federal Reserve along with their charter banks and government collusion have destroyed the Republic, exactly what they set out to do.
Don’t tell me (us) I (we) need educated about the monster that was beset on us. Don’t tell me (us) that Russia and China are our dire enemies because they are desperately trying to dump the FRN,,, something I would like to do myself. If they are our enemies then they are smarter than us.
After reading this blog whine about the eventual collapse of the dollar hegemony, crying that no one will want to buy our debt, (lol) while subtly claiming it’s the fault of uneducated americans and just about every one else excepting the Fed has me convinced you are part of the controlled opposition or terribly mixed up.
americans know the Fed printing will cause inflation. americans know the fed is trading their worthless paper for real assets. americans know their government is using this printed money to buy the machinery and weapons/ammo that will be used to put down their eventual uprising. Explain how americans are to control this monster via a government that has just passed laws to arrest them without warrant and assassinate them upon a whim of the executive. Explain how americans can control what has become the biggest threat to peace in the world,,, their government. Explain how voting for dumb or dumber will handle these problems when both want to expand americas militarism to Russia and China. Explain how americans can eliminate the immoral slimy entity called the TSA and it’s parent the gestapo nicely named Homeland Security. Both parties used their disgusting and vile ‘services’ at their hoopla’s erroneously called conventions. Heck these public tyrants couldn’t even distinguish Russian Navel vessels from u.s. Navel vessels.
No, economic collapse blog,,, many americans know who the real enemies are… so don’t tell us we need edumacated,
Just sayin.
All you really need to fu cking know is the banksters want it. Duh.
And in the end, the gooberment will own it all, and you’ll be serving the Gooberment God of the Universe. East and West of the Euphrates will be all owned by them. Your virgins will serve them upon the alter of Nimrod; ah yes, it will be truly a kinky sight !