The Feds Creation of Bubbles Is Epic

However, it can and does get worse. Much of the misperception of individuals in this regard comes from the completely false notion that the federal reserve is an agency of the USGovt. It is not. This has been well-documented ad nauseum and we’re not going to go out and prove the case once again. The not-so-USFed is a private bank. A corporation. And corporations have one main legal and fiduciary objective and that is to increase shareholder value. Who exactly are the shareholders of the federal reserve? Its member banks. They hold the preferred shares of the federal reserve and receive a 6% per annum interest payment on those shares. If the bank were truly a government entity, as many falsely believe, then the USGovt, NOT member banks (which are private entities themselves) would own the shares. It is a very cozy setup and is wrought with conflicts of interest:

1) The federal reserve makes money vis a vis interest payments on the USGovt debt it holds, yet it has been allowed to have a huge influence over interest rates at both the short and long ends of the yield curve. So it can, in effect, determine how much money it will be paid in interest by the American taxpayer. This conflict of interest grows categorically larger as the central bank accumulates more and more bonds through its quantitative easing (monetization) scam. And yes, it is a scam.

2) The federal reserve, through its oligopoly control of interest rates in the US, can induce individuals and businesses to borrow from its member banks with ‘cheap’ rates, thereby using its influence to enrich its shareholders.

3) As a corollary to #2, the federal reserve, through its absolutely pathetic performance (largely intentional) with relation to its stewardship of the dollar’s value has caused more and more people to have to resort to debt. Obviously, those people borrow from member banks.

In case you’re not following the direction of this line of economic progression, we are quickly moving into a state of neo-Feudalism. We have debt slaves in America today although nobody in the bank-owned press will ever say it. What about the folks trapped in underwater mortgages, stuck with illiquid properties? Are these not nothing more than fancy debtor’s prisons? Their liberty of free movement has been curtailed if not eliminated altogether. Granted, most of these folks helped bring their current state of misery on themselves through various degrees of greed. To be fair, however, our ‘system’ here in America has become predatory over the last several decades. And government is complicit in that predation. The average person, both through blind trust and a lack of personal responsibility, has not sensed this change.
The terms that people would readily connect with unpleasant periods in history have been dropped down the memory hole and replaced with idiotic substitutes. We now say ‘kinetic military action’, ‘quantitative easing’, and ‘WIC/SNAP’ instead of war, debt monetization, and bread line.

Getting back to the not-so-USFed and its ownership of $2T + worth of government debt. It doesn’t end there. This outfit (and I’m being polite) also owns another trillion plus of various other assets such as your mortgage. Where did the money come from to purchase all this debt? You guessed it. From nothing. That is why it is called fiat currency. It’s worth what we say it is. That is value by fiat. We don’t have money anymore. We have units of currency that fluctuate in value by the minute. There are no benchmarks anymore.

Treasuries held by not-so-USFed

Most pundits would scoff at this observation, wondering what difference it makes if Bank of America owns your house or the federal reserve owns it. It is all about consolidation, folks. Like it or not we are moving towards a one-world style monetary and debt system. This is nothing more than another Tower of Babel, being built to stretch toward a one-world utopia. The steps are small; incrementalism at its finest, but the progression is unmistakable, especially when you analyze larger periods of time.

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