The Fed Has Stepped Up To Save Us: WE’RE DOOMED!

Funny Money!

Today, the Fed went back into the funny-money business to help buy Obama’s reelection. QE III is used by some to refer to it: Quantitative Easing III in Fedspeak; just printing money out of electrons and air in plain English. Like somebody paying you with a thick wad of bills and you don’t notice until you get home later that only the top one is legitimate money; the rest are fake. Only here, it’s not when you get home, it’s after the election that is wanted. Quantitive Easing will bring you up to date.

It works like this: The Fed buys government bonds, Fannie and Freddie mortgage securities just now. Buy a bond is the same as make a loan. The Fed is loaning money to Fannie and Freddie so they can fund or really, re-fund, the real estate market, hoping to hype sales by pumping cheap credit to buyer who otherwise, wouldn’t buy. This is the same process that destroyed real estate in 2008, since it depended upon providing loans to folk who it turned out, weren’t going to repay them, because they couldn’t. Here we go again…slow learners. But the politicians don’t care if we replay 2008 so long as we do it after they’re reelected.

See, the money the Fed is loaning to the mortgage funders doesn’t exist; it’s just entries in a computer. It doesn’t represent any real wealth as does honest money that somebody earned or sold something to acquire. All it represents is government power…when the government says “That’s money!” you are’nt allowed to argue.

The really neat part of all this is, since the Fed ‘loans’ the funny money to the government or its satellites such as Fannie and Freddie, it has to be repaid–with interest, of course–by the government. Which means, by you, the hapless taxpayer, right? So, the Fed isn’t counterfeiting money as it might appear; it’s actually stealing your money and charging you interest on top. Clever, huh? The Fed, I mean; we taxpayers allowing this aren’t so clever, are we?

Ron Paul was right: End the Fed! If yoy can… it’ll have to be done over a lot of Democrat and GOP dead bodies, beginning with Obama and Romney. Maybe we can resurrect the last President who took the people’s side and ended the Fed of his day, the predecessor of our Fed; he was President Andrew Jackson. A Democrat, believe it or not. Meantime, watch the incredibly shrinking U.S. Dollar… now you see it…now you don’t!

About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much)
This entry was posted in Bank Failure, Economics, Fiscal/Financial Responsibility, Inflation, Overspending and tagged , , . Bookmark the permalink.

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