Authored by Mike Shedlock via MishTalk,
The Fed is robbing the middle class once again…
For the third time in 20 years, the Fed has targeted the middle class for the benefit of the wealthy.
Don’t believe Fed lies. Its bailout of risky debt including junk bonds helps investors, not employees.
Once again, the Fed Punishes Prudence.
The Fed will deploy more than $1.45 trillion in support of investors in leveraged assets—more than double the size of the 2008 Troubled Asset Relief Program, and over $7,000 for each working-age American. That includes $750 billion to purchase recently downgraded junk bonds and bond exchange-traded funds—an unprecedented intervention in the private credit markets.
Pumping trillions of dollars into corporate credit and even high-yield debt will further distort markets already shaped by a decade of easy-money policies. This is no abstract concern. The result will be an acceleration of two economy-wide transfers of wealth: from the middle class to the affluent and from the cautious to the reckless.
The transfer from the middle class to the wealthy continues a trend begun in the wake of the 2007-09 financial crisis.
But bankruptcies among highly leveraged businesses often pose surprisingly little risk to employment. More often than not, creditors choose to keep businesses staffed even when restructuring to retain value for the long-term. By preventing these bankruptcies, the Fed is doing more for equity holders and junior creditors than for employees.
Almost Spot On
Authors Sam Long and Alexander Synkov are almost spot on.
What did they get wrong?
This trend did not begin in the wake of the 2007-09 financial crisis.. Rather it’s been an ongoing process.
Importantly, this is the third major acceleration in the process.
- The first major acceleration began in the wake of the dot-com bust when the Fed bailed out the lenders who made loans to worthless companies. Housing prices soared to the moon as the Fed stood by and watched. Bernanke denied there was a bubble. The transfer of wealth to the likes of companies like Countrywide Financial was massive.
- The Second acceleration was in response to the bust. For the second time, the Fed held rates too low to long. Asset prices went to the moon and speculation surpassed that of the housing bubble and the dot-com bubble.
- This preposterous entry into Junk bonds and other bailouts is the third major acceleration and the Fed had to bend some rules to do so. Buying junk bonds is illegal under its actual mandate.
Pole Vaulting the Boundaries
Some claim the Fed pushed the boundaries by buying junk bonds.
I suggest When you take illegal actions and enter numerous uncharted territories on balance sheet expansion, junk bonds, and bond ETFs you are not “pushing” the boundaries, you are pole vaulting over them.
Too Big to Fail
Note my post earlier today: Carnival Deemed Too Big to Fail, Rescued by the Fed.
Carnival needed money. The Fed became the lender of last resort.
Carnival could easily file for bankruptcy reorganization and reschedule debt payments. One of my friends commented “This is just a play to save the equity, who are Trump’s friends.”
OK but why would the Fed do this?
“Because he has appointed a ball-less group of wimps. It largely does what he wants. Particularly on a petty issue like this,” replied my friend.
The transfer of wealth from the middle class to the wealthy just accelerated.
What constitutes “too big to fail” keeps getting smaller and smaller.
Why Rob the Middle Class?
Some may be wondering why the Fed has targeted the middle class.
Because as Willie Sutton once replied when asked why he robbed banks, “Because that’s where the money is.”
The poor do not have any assets or money left to setal.
There Are No Temporary Measures, Just Permanent Lies
Under guise of virus support, the Fed Will Buy Junk Bonds, Lend to States to the tune of an additional $2.3 trillion in additional aid.
Dear Jerome Powell, please tell the truth. This is not virus support, it’s stock market support.
This new junk bond “tool” is now permanent.
Always remember, There Are No Temporary Measures, Just Permanent Lies.
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After the inevitable violence that will consume the country in the near future, if things go correctly there will no longer be a Federal Reserve and I also hope no Federal Government when relative calm returns.
Whatever gov’t that remains should be prodded to claw back every cent of all the bail out moneys in the last 20 years. If that means nationalizing corporations like GM and Carnival, then so be it till their assets can be sold off.
The working people of the country need to demand an end to this bullshit currency system that benefits the largest corporations and a pile of billionaires along with gov’t by allowing them to purchase votes.
Yes, but. What do you have if you claw back fiat, besides jack shit? In a new monetary regime we should have a Gold Standard.
What you claw back is anything and everything that was purchased with that jack shit currency. The really wealthy have most of their assets in what cash purchased, not in cash itself. Take it all.
One of the articles I recently posted on TBP was to have a gold standard and how to create on.
Excellent point. Loot the Looters. Can you imagine the looks on their faces if we carted off their swag? But, but, but, we went to Hahvaaad!
I’m certain that the chain of ownership of what the looters have gotten will include the $23 Trillion the military has absconded with over the last 20 years.
Grab it all and make the bastards work at hard labor till they drop dead.
Sounds like a plan I read about in Mein Kampf.
Good point. Unless the Chinese pounce and take advantage of our pussification. Maybe a Chinese/Russian collusion of another kind? Americans are such fucking pandered free shit army pieces of shit sheeple. Wait, I got 1200, am I one of them.? I look at it as I got back some of the stolen money at the point of a gun that they took from me over the years.
C
Yes and it worked too. That’s why Roosevelt, Churchill, and Stalin joined forces to destroy him and his country on orders from Rothchild Inc.
If you took your nose out of the Marxist Manifesto you would know that.
The FED, which should be disbanded by any means including employment of the gravest extreme, is not a bank. It is the Sheriff of Nottingham. It represents not monetary policy but rather the policy of stealing opportunity from the most competent and qualified (based on performance, not Ivy League pedigree) in order to continue the failed and flawed economic leadership of the Ivy League shithead.
The refusal to subject the bigs to the same bankruptcy and forfeiture laws and laws of math and economics as the rest of us has resulted in a boiling cauldron of animus and revolution.
I still don’t understand why people pooh pooh the idea of taxing the shit out of the rich.
Because it it their money? How Marxist of you.
Don’t be stupid.
I’ll tell you why. Because it usually winds up being something like “You have a job. You’re rich.” Few if any of us can afford to hire a tax attorney let alone employ one or two or three. They get a loophole, we get sodomized. Everyone with few exceptions who says tax the rich is lying about who they intend to squeeze dry.
So, after an article JUST TOLD YOU how wealth is being transferred fraudulently, you’re still a cuck?
Quit yer bitching cuck.
Donk, you’re obviously not a student of history, or you could have easily answered your own question. The illegal and onerous income tax was only to be levied on those with the highest incomes and then only to be a small percentage ( 1% on income over $3000 ) – to begin with. Unfortunately, since we have also adopted most of the planks of the communist manifesto, thanks to our Jewish overlords, a heavy “progressive” and graduated income tax became our future. When you allow your enemy free access to your country and then allow them to print the currency and make the rules, you lose. Don’t worry, though, be happy.
Everyone here should quit any more bitching about anything government or financial related. Who and what rules you cucks? Sing to your hearts content for the status quo.
The tax code has been used for how long now, the pound you straight in your asshole?
Turn it around bitches. You act like YOU are the rich. Paleeeez.
Define rich. For Obama it was $60K. This mantra of ‘taxing the rich to redistribute to the poor’ is a scam and a sham. Recall that the income tax was originally created to ‘soak the rich’ and rich was anything over $3,000 and said income tax was to be temporary. The government grabs taxes but those taxes can’t begin to finance the massive government debt, hence the Fed’s printer go Brrrrr all the time. The middle class is squeezed and sucked dry because the poor aren’t taxed and they get the freebies, the rich also get freebies in the sense that they can afford the loophole finders, create limited partnerships, headquarter out of the country and use other forms of tax dodges.
Taxation in this day and time isn’t just about needed money, it’s about control. Look at what the IRS can do to destroy you, what powers they have and what they can seize of yours. Ever been audited? Apple claimed Ireland as it’s headquarters. Now they claim Jersey (Isle of) Wonder why? That claim saved the company 138 billion dollars in taxes it didn’t have to pay.
When you look at how the government wastes TRILLIONS of dollars on pork and stupid shit, who can blame anyone for wanting to dodge taxes? Explain how congress vermin start poor and become multimillionaires?
“The previously undisclosed story of Apple’s search for a new tax haven and its use of Jersey is among the findings emerging from a cache of secret corporate records from Appleby, a Bermuda-
based law firm that caters to businesses and the wealthy elite”
“U.S. multinational firms are the global grandmasters of tax avoidance schemes that deplete not just U.S. tax collection but the tax collection of most every large economy in the world,” said Edward D. Kleinbard, a former corporate tax adviser to such companies who is now a law professor at the University of Southern California.
https://www.nytimes.com/2017/11/06/world/apple-taxes-jersey.html
Try telling me something I don’t already know.
Who owns the Fed? Why did Ron Paul not address this fundamental question when he wrote his book “End The Fed”? Answer that question and you have gained insight into who rules over us. Correctly diagnosing the problem is a critical first step in solving the problems that are plaguing the western world. Focusing on the symptoms and ignoring the elephant in the kitchen is a huge waste of time.
Too cryptic. Please elaborate.
WDG.
You’re right, but identifying symptoms for years on end allows them to bullshit themselves and each other and pretend to be concerned. Nothing but chickens here. They are so well cowed they won’t even mention the name of their owners whom they love so much.
The majority of small businesses in the US have less than 20 employees, but as a whole they employ 54 million workers. As these businesses fail you can add most of them to the millions who are now jobless .
That alone is enough to tank our country with every bit of damage as you could imagine a war would bring on our population.
No bailout for these business owners while the megacorps will have massive helicopter deliveries. The invisible war where the usual suspects kill off the last remnants of competition and population to suit their need to gain everything while Satan checks off their souls as belonging to him. What have they gained? May these bastards fry in hell and the government lackeys who allow this to happen as well.
Keep watching Netflix while you can still afford the cable bill, it’s only money.
I have been delving into Lew Rockwell, the Mises Institute and Murray Rothbard for sometime and although it is well known that the Fed is privately owned and an instrument of plunder and destruction, no one to my knowledge ever addresses the issue of who exactly owns the Fed. This is a most basic question yet it is never asked…at least to my knowledge. I would be pleased to be shown a reference that I am in fact wrong in my assessment. But why would this most fundamental of questions not be asked? Jim Quinn writes excellent articles but never seems to get at the root of the problem, focusing instead mostly on symptoms. So could we please have a discussion on who owns the Fed because this would provide a lot of insight into why the owners remain unknown and perhaps what their agenda is. Do Americans not have the right to know who is directing and benefitting from the most evil and sinister institutions on the face of the earth – central and fractional-reserve banking?
Wdg.
There is a list of the actual owners of the Fed and all other Rothchild owned central banks and I linked it here twice. However, being digitally inept with no incentive to change that shortcoming this late in life, I erased it when I tried to clean up my laptop. It is available even on Joogle because they know nobody will believe it. Aside from a few Rothchild/Rockefellers most of the names of board menbers and stockholders are typically obscure “Old Money” names with pedigrees of Nobility but ultimitely goes back to the one Cabal to rule them all.
.
Yet no one spoke openly of him for fear of the Jews -John: 7:15.
My main interest right now is to expose the Jews. This is a lot bigger that me. They’re not just persecuting me. This is not just my struggle. I’m not doing this for myself. This is LIFE and DEATH for the world. These God-damn Jews have got to be stopped. – Henry Ford, quote from his book, The International Jew.
Gee, too bad we didn’t listen when there was still a chance to save our nation from the blood-sucking parasites that have bled this nation white, while destroying the moral fabric, culture and heritage that was the bedrock of this country’s origins.
And remember this, “all that it takes for evil to prosper, is for good men to do nothing.” What have you done to spread the word, or further the cause? Keep tilting at windmills and participating in circular discussions that solve nothing. The next time someone tells you that “they” are going to do this, or “they” are going to do that, just remember that you were told who they were countless times over, but you stubbornly and steadfastly refused to consider the TRUTH. May God have mercy on our wretched souls.
The Federal Reserve is a member of a consortium of global banking concerns. Hearken back to Jekyll Island and that secret meet, who were the parties in attendance? The Federal Reserve is a creation of the bankers, by the bankers and for the bankers. Those are your owners. Those are the real government. The little flunkies and preening fossilized congress vermin are all controlled by those bankers and financiers.
“In November 1910, six men – Nelson Aldrich, A. Piatt Andrew, Henry Davison, Arthur Shelton, Frank Vanderlip and Paul Warburg – met at the Jekyll Island Club, off the coast of Georgia, to write a plan to reform the nation’s banking system. ” They met on an island that was the reserve/preserve for the millionaires and financiers of the time. “From its inception in 1886, the Jekyll Island Club included in its elite membership the nation’s wealthiest families, among them the Rockefellers, Pulitzers, Vanderbilts, and Morgans. Far from the hectic northern cities where the members tended their fortunes, this private island refuge off Georgia’s coast offered the wealthy a tranquil change of pace.”
“The individuals listed below owned banks which in turn owned shares in the FED. The banks listed below have significant control over the New York FED District, which controls the other 11 FED Districts. These banks also are partly foreign owned and control the New York FED District Bank. (Reference 22)
First National Bank of New York
James Stillman National City Bank, New York
Mary W. Harnman
National Bank of Commerce, New York
A.D. Jiullard
Hanover National Bank, New York
Jacob Schiff
Chase National Bank, New York
Thomas F. Ryan
Paul Warburg
William Rockefeller
Levi P. Morton
M.T. Pyne
George F. Baker
Percy Pyne
Mrs. G.F. St. George
J.W. Sterling
Katherine St. George
H.P. Davidson
J.P. Morgan (Equitable Life/Mutual Life)
Edith Brevour T. Baker
Under the Federal Reserve Bank Act, the bankers control our economy. The FED controls interest rates and the amount of money in the economy. These factors determine either economic prosperity or the lack thereof. Bankers are now pushing for a one world government and a cashless society. Why cashless? .What a cashless society really means is the banks can now control you. Today you fear the IRS. In a cashless society, if you disagree with the bankers’ political goals, you’ll find your money gone via computer error. (For additional information on a cashless society, read Reference 13, P. 174; Reference 3; Reference 14, P. 9-12; Reference 15, P. 136; Reference 25, P. 216).
https://www.facts-are-facts.com/news/the-federal-reserve-is-privately-owned
https://www.bing.com/search?q=who+met+on+jekyll+island&cvid=65049508e9494b73859dd53dc2903378&FORM=ANNTA1&PC=U531
You mean a private bank that has most of the population hoodwinked into believing it’s a government agency bank with all the citizens best interest as its number one objective , well wake the fuck up MIDDLE AMERICA !
The federal reserve bank screwing average Americans at an ever accelerating rate since 1913 !
They have lied cheated started wars that you or your children suffer or die from to maintain their anonymity and continued theft of value from the many and transfer of wealth from many to the few !
Now they do it again & again !
This must end badly
Wood chippers with rusty FUCKING blades badly, yes I agree:)