The Fed’s Dangerous New QE Addiction

From Birch Gold Group

A Fed policy called quantitative easing, once thought highly risky and unconventional, could soon be making a comeback — possibly as soon as 18 months from now. Here’s what to expect if and when it happens.

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Is the Fed Hooked on the Drug It Created?

In the midst of our last major financial crisis in 2008-09, the Federal Reserve essentially created money to buy up massive amounts of various assets, with the ultimate goal of increasing the money supply and boosting the economy.

The technical term for this activity is quantitative easing (QE), and its history is relatively short. The Fed used it for the first time after 2008, and some analysts worried about its long-term consequences — primarily because it was completely untested.

Put simply, quantitative easing is like a drug… It makes things feel better right now, but it’s easy to become dependent on it, and hard to get off of it.

QE’s primary intended effect is to inflate asset prices. But some argue that QE does more harm than good because it actually hurts employment and economic activity.

With all the negative side effects, you’d think that it would be better to avoid taking the drug at all. But apparently, for the Federal Reserve, that’s not an option anymore. They’ve already used QE, and now they’re hooked.

Recent comments from Boston Fed President Eric Rosengren prove it. The Boston Globe reports:

The next recession is likely to force the Federal Reserve to once again buy up large amounts of assets to boost the supply of money and stimulate the economy, a move that nearly a decade ago was considered drastic and unconventional, according to Boston Federal Reserve president Eric Rosengren.

“During a speech Wednesday at Bard College in New York, Rosengren said that such purchases — called quantitative easing — will probably become a go-to tool for the Federal Reserve in dealing with recessions. Low inflation, limited productivity growth, and an aging population “may necessitate more frequent use of large-scale asset purchases during recessions,” he said.

“A longstanding inflation-fighting method — lowering interest rates — may no longer be enough, he said. The Fed raised the key benchmark rate by a quarter percentage point last December and then again in March, but rates remain historically low and are likely to stay that way for a long time. That will give the Fed less room to lower interest rates enough to stimulate the economy in the event of another economic downturn, Rosengren said.

If Fed officials are already talking about more QE, how soon can we expect to see it? Well, some say as soon as 2019, or whenever the next round of problematic circumstances rolls around for the U.S. economy — which could be even sooner than that.

Some are speculating that the Fed is raising rates now so it can slash them and give the illusion of “doing something” later. Perhaps the Fed is doing the same with QE, priming us now so we’re prepared when it makes a reappearance.

The Good and Bad News About More QE

Let’s get the bad news over with first: More QE will likely inflate our currency, cause asset bubbles, and threaten the long-term safety of the economy — and all in the name of a quick and easy fix.

But there is an upside to the Fed’s new taste for QE…

Whenever the Fed steps in with these overtly interventionist policies – especially when those policies may devalue the dollar – gold and silver usually rise.

When QE was introduced in 2008, precious metals thrived, and gold continued to power through its biggest bull run in years.

And if QE were to come back, it wouldn’t be surprising to see a repeat of that scenario. So if you haven’t secured your position in gold, this may be the perfect time to do so.

Birch Gold Group helps Americans protect their savings with physical gold and silver. Clients can purchase precious metals for physical possession, or move their IRA or 401(k) into a Precious Metals IRA. To learn more, request a free Info Kit on Gold – there is zero cost and zero obligation to you. All you need to do is enter your details at www.birchgold.com

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7 Comments
BL
BL
April 30, 2017 12:31 pm

Better buy some food and other essentials while you can still afford it. Gold won’t fill your stomach but it is a great tailhedge.

Not quite sober
Not quite sober
April 30, 2017 1:34 pm

I did not realize this article was a gold commercial.

Michael Keane
Michael Keane
April 30, 2017 2:42 pm

The intentionally-mislabeled, “Federal Reserve”, has ruined itself, NOT, the American People.

When the time comes, the criminal, English-based, Central Bankers intend to use the Brexit to pull the rug from under the phony, manipulated, stock markets…

At this point, only a fool believes the “market” hasn’t been manipulated, since, at least the first attack on the Trade Centers, under Clinton. Read pgs. 308-313 of Dr. Brown’s, “The Web of Debt”. Dr. Brown, in her book, enlists the testimony of John Crudele to explain the “Plunge Protection Team” and “Counter-party Risk Management Policy Group”. http://nypost.com/2015/03/25/us-stock-market-is-just-way-too-riggin-easy/

If you are less than half-daft, you also realized, ages ago, that gold has been held at an artificial low to conceal the fact the intentionally-mislabeled, “Federal Reserve” and the English-based, criminal presence, as parasite- within, has destroyed itself.

Their criminal behaviors, of over a century, wherein they have robbed the US of benefit of its own currency (bills, bonds and notes), has run its course.

The trigger is primed and the banks more than “insolvent”. Iceland has shown the way and America must duplicate their efforts ten-fold.

General
General
April 30, 2017 7:09 pm

Actually, the Federal Reserve has caused immense damage to the United States while making a small group of people fabulously wealthy.

They have also captured the legal system making it impossible to prosecute them for their crimes.

The more that I think about it, the more that I am convinced there is only one real solution to deal with them.

Michael Keane
Michael Keane
  General
April 30, 2017 10:07 pm

HSBC bank- a Chinese – English hybrid proves, in my post, below, a criminal laundry. The elements of “Law Enforcement”?, within my post, prove Treasonous behavior. HSBC is referred to, among banking as the English, “Crown Jewell”, even as they are corrupt to the bone. Our country is now and for some time, in thrall to an international, criminal, cartel, that is “English-based”. You may wish to disagree; so be it. In my post you may learn the British Finance Minister, George Osborne compelled American “Law Enforcement”?, to commit Treason, in order to conceal the behaviors of the “English Crown Jewell of Banking”. Our politicians have sold US all, on the cheap, to an international Scam that centers on “Mortgage Fraud”… of that, there is absolutely zero doubt.

The “deferred prosecution agreement” and criminal admissions of HSBC Bank were Booked in Sept 2012.

The agreed-upon, criminal behaviors, in what amounts to a plea bargain agreement, include: (Violations of) “TWEA- Trading With Enemies Act”; “BSA Bank Secrecy Act”; all “AMLs- Anti-Money Laundering Acts”; “IEEPA- International, Economic Emergency Power’s Act”.

The Moore Family of Philadelphia first exposed the DPA and Federal Judge Gleeson wrote the following analysis:

You may read the court document here:
Case 1:12-cr-00763-JG Document 23 Filed 07/01/13

The violations occurred in Brooklyn. Loretta Lynch signed for Brooklyn as Prosecutor on Dec 2012.

Lanny Breuer signed for Eric Holder as Assistant AG on Dec 2012.

So… Holder, Breuer and Lynch all know and 3 months after they conspired through the DPA to conceal their plea bargain, James Comey was placed on the Executive Board of the English – Chinese hybrid, HSBC- “Hong Kong Shanghai Banking Corporation”.

Of course, Eric Holder’s Law Firm, “Covington-Burling”, created the MERS and it has been used for over a decade to counterfeit titles to American Homes.

The counterfeit titles allowed the REMIC Trusts to be violated and Pension Funds to be robbed.

The REMICs- “Real Estate Mortgage Investment Conduits”, are now, instead, REMIFs- “Real Estate Monopolized Insurance Frauds”.

Holder’s MERS allows banks to “pretend” ownership of real estate, on “loans” the Pension Plans have already paid, in-full.

The banks then place the Assets (title to American Homes) in Shadow Trusts in the Cayman Islands (Google Bucketeering).

The banks then sit back and use the 30-day monthly payments to cleanse terror and drug money in the HSBC criminal laundry. Some “loans” are for 20-30 years (of payments, on titles, paid, in-full, by Pension plans, every 30 days).

The banks also use counterfeit title to place “Naked Short Sale Derivatives Bets” that Americans will default (go into foreclosure), so they can collect on the “Derivatives”, as “Insurance Pay-Offs”.

The banks also use counterfeit title to cheat all 3142 county recorders, across 50 US states.

This is one reason why there is zero money for representative government in places where children are poisoned to death because of the lack of fresh water… places like Flint, Michigan.

~Michael Keane 10/7/16

Holder’s law firm created the counterfeit machine that is the MERS- “Mortgage Electronic Registration System”. It is an imposter to lawful, as set by precedent, paper, wet-ink signature, original contracts, entered into county offices, as opposed to electronic, digitized COPY, entered into an electronic, privately-owned and operated, never vetted as legal, computer boutique.

Please contact me directly if you think an electronic copy of a contractual signature is the same as the original- I want to sell you a Babe Ruth-signed, baseball.

Read : http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=3399&context=wmlr

Particularly p. 116. It describes the MERS as a “shell company” used to “pretend” to own American real estate. Read footnote 23, from p.116. R.K. Arnold, the CEO explains it his intention to “capture” every “mortgage” in the country.

(The author, Professor Christopher L. Peterson wrote the MERS critique while a law professor at SJ Quinney Law School, in Utah. He is now the chief counsel for enforcement of the CFPB.)

Arnold and the MERS now claim an “ownership” ability to transfer some 70 million American real estate titles, despite Arnold’s deposition in court he is the sole employee of his company.

Arnold’s claim he is the sole employee is refuted by some millions of rubber stamps he sold for $25.00 a throw that now show any number of mortgage-industry-insiders rubber-stamping forged documents that claim they are, in fact, MERS Employees.

Their position in the company invariably describes these frauds as “Senior Vice Presidents…

To a company the owner claims has no employees.

Holder and Breuer worked 8 Obama years and never prosecuted a single banker. Now, Holder and Breuer are back working for their old law firm, “Covington-Burling”, that created the hopelessly fraudulent MERS.

In fact, Holder’s other creation, “TBTF”, is yet another, intentional lie; read David Dayen, from “Livinglies”: https://livinglies.wordpress.com/…/david-dayen-eric-holder…/ .

https://livinglies.wordpress.com/2016/07/15/david-dayen-eric-holders-longtime-excuse-for-not-prosecuting-banks-just-crashed-and-burned/

Lynch, Comey, Holder, Breuer are all aware of the contents of the DPA as those criminal admissions are given in the name of Clinton’s Criminal Laundry of choice: “HSBC”, “Hong Kong Shanghai Banking Corporation”; a bank that supplied the Clintons 80 million from among a cast of the usual suspects within the banking industry http://www.salon.com/2012/09/14/clintons_no_liberal_hero/

So, 6 months after Two Attorneys General are aware an English-Chinese bank is laundering terror and drug money for known enemies of the US, killing our soldiers, the present FBI Director James Comey is placed on the executive board of that bank. Holder’s wife and Loretta Lynch are sorority sisters and Comey’s brother makes millions as the Clinton’s accountant- just one big, happy family.

~ Michael Keane copyright 10/7/16

all rights reserved

overthecliff
overthecliff
April 30, 2017 9:00 pm

Soon enough no one will by US Treasuries. The politicians will not change the government spending habits. They will print the money instead of borrowing it. That is when we become Venezuela.

Michael Keane
Michael Keane
  overthecliff
April 30, 2017 10:11 pm

That cat has already left the bag. The BRICS central bank will be online in 2018 and US creditors will come calling for the debt the intentionally-mislabeled, “Federal Reserve” has unleashed on the world as debt extortion, after they have fraudulently counterfeit that debt in our name.