Why, after month after month of extreme hype from the mainstream media and B.S. Bernanke himself, did we see the Federal Reserve engaging in the tiniest cut it could (supposedly) make? Because the crippled U.S. economy is now so frail that even pretending to have “tapered” the money-printing by any significant amount would have detonated all of its various market bubbles.
Indeed, as we observed in 2013; the first six months of talk (alone) caused the interest rate on 10-year Treasuries to practically double. Cumulatively, this had the effect of sucking more than $50 billion per month out of the debt-saturated U.S. economy, in the form of increased interest payments. It was causing such severe economic pain that in September, Bernanke finally confessed there would be no tapering, as the U.S. economy was now a Ponzi-scheme which could no longer afford to pay “market rates” of interest on its debts.
So how do we resolve the (supposed) paradox of being told that U.S. money-printing has since been trimmed – by the tiniest of amounts – while the chart which measures this money-printing continues uninterrupted in its near-vertical line? Because there are two pipes carrying the money-printing of the Federal Reserve (to the vaults of Wall Street), and the Cheap Magician running the Federal Reserve never tells us about what is in the other pipe.
Prior to the era of “QE” funny-money; all of our new “money” was simply borrowed into existence. This meant that our currencies were units of obligation. This is not as good as having gold-backed, real money– i.e. units of value – but it’s better than simply “units”.
This is what has been accomplished through “QE”, but (of course) never explained to the people. All new U.S. dollars (and all of this quantitative-easing funny-money across the Western world) are now neither units of “value” nor “obligation”, simply units. As such, there is now no possible basis to impute any value whatsoever in the U.S. dollar, and it is one of three reasons why the dollar is now already completely worthless.
But all of this discussion still only revolves around one pipe, the “QE pipe”. This is the pipe carrying the units which the Cheap Magician openly/officially discusses and at which he (and now she) points. However there is also a second, (larger?) secret, unofficial pipe leading from the Federal Reserve to the vaults of Wall Street.
This is the pipe which carries the endless gravy-train of so-called “0% loans” from the Fed to the tentacles of the One Bank. Of course, with no interest ever attached to it; these 0% loans create no obligation. Thus these new “0% loan” dollars are not units of obligation, but are also mere units — totally indistinguishable from the “QE” funny-money. Indeed, the “0% loan” is simply a different euphemism for the same thing: utterly worthless currency, from which no possible value could be imputed.
No one knows how many trillions of units flow through the second, secret, unofficial pipe leading from the Federal Reserve. Thus it now becomes apparent how the Fed can pretend to “taper” (with one hand) while it actually continues – or even increases – the actual rate of unit-printing (with the other). This is one of the many reasons why the Federal Reserve obsessively refuses the “public audit” which would be necessary if it were to ever become a legitimate institution: to partially conceal the insane extent of its unit-printing.
All of the lies about “tapering” are nothing but the act of a Cheap Magician. He (she) gestures openly with one hand to distract the Chumps in the audience, while the second, hidden hand performs “the magic”. It is an act which could not possibly deceive an audience of astute 10 year-olds. Yet it is apparently ‘clever’ enough to fool all of the drones in the mainstream media – and all of the slack-jawed Sheep who continue to lap-up this tripe.