The Truth About QE2

By Michael Pennington © Copyright 2010 Pennco Coins

I have done my best to avoid the entire mortgage foreclosure fiasco. The amount of greed and incompetence is beyond comprehension. Years from now, when history books are written about this age, readers will have a hard time believing what we’ve been living through. Regardless, the only thing you need to realize is that every big bank in America is insolvent – bankrupt –kaput. Several officials from the FDIC were begging the administration to pull the plug on Bank of America and others. Yet the financial elites are so good at deception, these banks continue to operate daily as if nothing is wrong. The FED has already saved them from a complete collapse in 2008 with their bailout. In practical application, the FED gave these banks taxpayer money to avoid their meltdown, and in so doing, covered up the many crimes of bank officers and government officials who masterminded and implemented the biggest swindle in the history of the world. In the meantime, over 400 “smaller” banks have gone under and have been taken over by the FDIC – approximately 5 -10 banks every week. During the interim the big banks were “given” money by the FED (who loaned them money at 0% so they could buy Treasuries at 3%). The banks used this “free” money to perpetrate additional frauds on the American people like the foreclosure debacle currently being exposed.

The Truth is, the banks have dug themselves a nice little grave.
That is… until Bernanke bails them out with our money again. That’s what QE2 is all about.
Unfortunately, he’ll never learn that banks are basically run by mental midget con men who keep thinking up new ways to cheat Americans out of their money — most likely because he’s one of them. (PLEASE READ THE WILLIAM K. BLACK VIDEO BELOW).

It’s difficult to determine what will be more “frightening” this week, Halloween. Election Day or the FED’s announcement on QE2. Now before, we go further, let’s establish what QE2 is – it’s the FED sending billions or perhaps trillions to its PRIMARY DEALERS. The FED hopes the PRIMARY DEALERS will spend the money on one or more of their profit making activities. By so doing, they will inject new money into the system, thereby creating “needed” inflation or in other words, dollar devaluation. Of course this effort is needed to help repay and huge debt with cheaper dollars.
Here is a list of the PRIMARY DEALERS that the FED will just “give” this money:
BNP Paribas Securities Corp.
Banc of America Securities LLC
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets Corporation
RBS Securities Inc.
UBS Securities LLC.

If you noticed some of the best FED friends that have already been bailed out once, you’re very astute. If you discern that most of these banks are insolvent and need added capital to survive another day, you are very astute. Is there any oversight on how these PD’s will spend the QE2 trillions? Of course not. Will the CEO’s use some of this money to pay huge executive bonuses?
They have before, why wouldn’t they again? Will the QE2 money revive the economy like the administration promises? Of course not. QE1 didn’t work and neither will QE2. The money is going to the crooks who stole it initially. Will unemployment continue to rise? Of course. Will inflation start to accelerate? Of course.
But this is why I took you on this journey. Will Gold and Silver prices continue to rise? If you can’t answer that question by now, please go back and re-read this article.

In conclusion, it’s obvious the Fed has absolutely no confidence in its actions, and, more importantly, no confidence in how its actions will be perceived by the market which is why it is not only telegraphing its decision to the bankers, but is having its decision be dictated by them. This is an act so unconstitutional it would be seen as treason in any non-Banana republic! This is the last straw confirming that the only ones left trading the market are the Fed and the PDs, passing hot potatoes to each other, and the HFTs, churning everything else to pretend someone is still trading.

And the saddest result is that this is the definitive end of US capital markets: not only is the Fed’s political subordination a moot point, but the Fed, and the middle class’ purchasing power via the imminent dollar destruction that is sure to follow, as the PDs seek to obliterate their underwater assets by raging inflation, is now effectively confirmed by the actions of Bernanke. GOT GOLD?

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About Pennco Coins

Pennco Coins
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