Paper Fiat turned into Real assets: How the Fed Cartel Just got paid from the long housing manufactered crisis.

Paper Fiat turned into Real assets: How the Fed Cartel Just got paid from the long housing manufactered crisis.  By jonkirby2012.wordpress.com
Sept. 22 2012

 

This Video Confirms my Article written in Sept!!!!

Oct 9, 12
The FED elite bond holders are printing paper and getting ALL US MORTGAGES
But What I didn’t Know is the Elite then are going to make Dirivatives out of ALL
of them like what they did with MERS!!!

 

 

I abhor having money in the bank for anyone who listens to Max Keiser or most of alot of economist the big thing now is when is the Big Crash coming. When our debt based money is worth nothing the answer is that it already is and always has been worth NOTHING. It use to be worth something when you could go down to the local bank and redeem your dollar for Gold or Silver but That President got Shot by these same guys.. There has been a slight of hand trick this week that no one seems to be talking about. I explain that shortly. You see I was sort of forced out of the job market in the silicon valley as a design engineer and my passion in 1999 up to that time but when I went to college not much I gleemed there outside of math formula’s per say but One thing an Engineering Math teacher use to say over and over again that has served myself quite well and that when faced with enormous adversity to a problem ” Think it though” yes simple but i will say it again ” think it though” You see the Bad guys use this ALL the time and give us the housing crises or depressions (they buy) Inflations (they sell) Yes the FED Money makers know “Think it though” I won’t go to much into my story but If you Totally think a problem though You can get rich I know I did it! I had 2000
dollars in my name 12 years ago and today I have about 500,000 of assets.
If you were wondering how?? I invested in raw land buying an selling then moved on to building houses in which I still do this today. Think it through applies because your need to see it all the way to fruition.

So You want to be in assets whether gold silver or land or housing anything but paper. Now for the fed slight of hand trick after years of a housing crises
the FED These Guys: Just PRINTED  a BUNCH of PAPER fiat paper!!! and received ASSETS!! they didn’t buy anything basically they STOLD.

The real owners  of the Federal Reserve and the Federal Reserve System are:

a) Rothschild Banks of London and Berlin;
b) Lazard Brothers Bank of Paris;
c) Israel Moses Seif Banks of Italy;
d) Warburg Bank of Hamburg and Amsterdam;
e) Lehman Brothers Bank of New York;
f) Kuhn, Loeb Bank of New York;
g) Chase Manhattan Bank of New York;
h) Goldman Sachs Bank of New York; and
i) Approximately three hundred people, known to each other and/or relations of the “owners,” who hold stock in the Federal Reserve System. They comprise an interlocking, International Banking Cartel of wealth beyond comprehension.

And received ALL of the Mortgage backed securities (ASSETS)that the media would have you believe is junk and gave their receiving banks their buddies a bunch of paper money to help them get whole!?

so the members of this cartel above have just completed the largest swindle in history or  just one of them Taking our Gold in’29 was pretty good. While they have all of us thinking about Circulation and Economy, hyperinflations, Collapes  etc.

They are taking our ASSETS at a Tune of $40,BILLION a Month. from their agents the big banks that took title ..Our titles their Scam.

BUT That’s just the latest SCAM Here from wikipedia we see LOOK how much  TOTAL they been GRABBING Titles from the Manufactured Housing Crisis in the USA!

The US Federal Reserve held between $700 billion and $800 billion of Treasury notes on its balance sheet(FED PROFIT)  before the recession.(This means this is the “FED’s” PRIVATE BOND HOLDERS  MONEY THEY COLLECTED IN INTEREST OFF OF US!! FOR PRINTING and USING THEIR PAPER) not bad for a printing company!!!

In late November 2008, the Fed started buying (TRADING THE WORTHLESS PAPER) for (REAL ASSETS) of $600 billion in Mortgage-backed securities (MBS).[43] By March 2009,FED TOTAL PROFIT it held $1.75 trillion of bank debt, MBS, and Treasury notes, and reached a peak of $2.1 trillion in June 2010. Further purchases were halted as the economy had started to improve, but resumed in August 2010 when the Fed decided the economy was not growing robustly.(YEAH THEY GOT ALL THE MONOPOLY MONEY) After the halt in June holdings started falling naturally as debt matured and were projected to fall to $1.7 trillion by 2012. The Fed’s revised goal became to keep holdings at the $2.054 trillion level. To maintain that level, the Fed bought $30 billion in 2–10-year Treasury notes a month. In November 2010, the Fed announced a second round of quantitative easing, or “QE2”, buying $600 billion of Treasury securities by the end of the second quarter of 2011. PROPPING UP

A third round of quantitative easing, or “QE3,” was announced by the Federal Reserve in September 2012. The third round includes a plan to purchase US$40 billion of mortgage-backed securities (MBS) per month. Additionally, the Federal Open Market Committee (FOMC) announced that it would likely maintain the federal funds rate near zero “at least through 2015  (AGAIN RESTARTING THE BUYING OUR PROPERTY TITLES WHILE PROPING UP THE DOLLAR TO 2015.

SO WHEN DOLLAR CRASHES They will be safe in PROPERTIES. Land DEEDS.

Here is Ellen Browns Latest Newsletter Article and see if you can pick out what I said that just transpired.

Reposted : The Circulating Money Supply:
Why QE3 Won’t Jumpstart the Economy—and What Would

By Ellen Brown
Global Research, September 21, 2012
her website Web of Debt

The economy could use a good dose of “aggregate demand”—new spending money in the pockets of consumers—but QE3 won’t do it. Neither will it trigger the dreaded hyperinflation. In fact, it won’t do much at all. There are better alternatives.

The Fed’s announcement on September 13, 2012, that it was embarking on a third round of quantitative easing has brought the “sound money” crew out in force, pumping out articles with frighting titles such as “QE3 Will Unleash’ Economic Horror’ On The Human Race.” The Fed calls QE an asset swap, swapping Fed-created dollars for other assets on the banks’ balance sheets. But critics call it “reckless money printing” and say it will inevitably produce hyperinflation. Too much money will be chasing too few goods, forcing prices up and the value of the dollar down.

All this hyperventilating could have been avoided by taking a closer look at how QE works. The money created by the Fed will go straight into bank reserve accounts, and banks can’t lend their reserves. The money just sits there, drawing a bit of interest. The Fed’s plan is to buy mortgage-backed securities (MBS) from the banks, but according to the Washington Post, this is not expected to be of much help to homeowners either.

Why QE3 Won’t Expand the Circulating Money Supply
In its third round of QE, the Fed says it will buy $40 billion in MBS every month for an indefinite period. To do this, it will essentially create money from nothing, paying for its purchases by crediting the reserve accounts of the banks from which it buys them. The banks will get the dollars and the Fed will get the MBS. But the banks’ balance sheets will remain the same, and the circulating money supply will remain the same.

When the Fed engages in QE, it takes away something on the asset side of the bank’s balance sheet (government securities or mortgage-backed securities) and replaces it with electronically-generated dollars. These dollars are held in the banks’ reserve accounts at the Fed. They are “excess reserves,” which cannot be spent or lent into the economy by the banks. They can only be lent to other banks that need reserves, or used to obtain other assets (new loans, bonds, etc.). As Australian economist Steve Keen explains:

[R]eserves are there for settlement of accounts between banks, and for the government’s interface with the private banking sector, but not for lending from. Banks themselves may . . . swap those assets for other forms of assets that are income-yielding, but they are not able to lend from them.

This was also explained by Prof. Scott Fullwiler, when he argued a year ago for another form of QE—the minting of some trillion dollar coins by the Treasury (he called it “QE3 Treasury Style”). He explained why the increase in reserve balances in QE is not inflationary:

Banks can’t “do” anything with all the extra reserve balances. Loans create deposits—reserve balances don’t finance lending or add any “fuel” to the economy. Banks don’t lend reserve balances except in the federal funds market, and in that case the Fed always provides sufficient quantities to keep the federal funds rate at its . . . interest rate target. Widespread belief that reserve balances add “fuel” to bank lending is flawed, as I explained here over two years ago.

Since November 2008, when QE1 was first implemented, the monetary base (money created by the Fed and the government) has indeed gone up. But the circulating money supply, M2, has not increased any faster than in the previous decade, and loans have actually gone down.

Quantitative easing has had beneficial effects on the stock market, but these have been temporary and are evidently psychological: people THINK the money supply will inflate, providing more money to invest, inflating stock prices, so investors jump in and buy. The psychological effect eventually wears off, requiring a new round of QE to keep the game going.

That is what happened with QE1 and QE2. They did not reduce unemployment, the alleged target; but they also did not drive up the overall price level. The rate of price inflation has actually been lower after QE than before the program began.

Why, Then, Is the Fed Bothering to Engage in QE3?

If the Fed is doing no more than swapping bank assets, what is the point of this whole exercise? The Fed’s professed justification is that by buying mortgage-backed securities, it will lower interest rates for homeowners and other long-term buyers. As explained in Reuters:

Massive buying of any asset tends to push up the prices, and because of the way the bond market works, rising prices force yields [or interest rates] down. Because the Fed is buying mortgage-backed bonds, the purchases act to directly lower the cost of borrowing to buy a home. In addition, some investors, put off by the rising price of the bonds that the Fed is buying, turn to other assets, like corporate bonds – which, in turn, pushes up corporate bond prices and lowers those yields, making it cheaper for companies to borrow – and spend.

Those are the professed objectives, but politics may also play a role. QE drives up the stock market in anticipation of an increase in the amount of money available to invest, a good political move before an election.

Commodities (oil, food and precious metals) also go up, since “hot money” floods into them. Again, this is evidently because investors EXPECT inflation to drive commodities up, and because lowered interest rates on other investments prompt investors to look elsewhere. There is also evidence that commodities are going up because some major market players are colluding to manipulate the price, a criminal enterprise.

The Fed does bear some responsibility for the rise in commodity prices, since it has created an expectation of inflation with QE, and it has kept interest rates low. But the price rise has not been from flooding the economy with money. If dollars were flooding economy, housing and wages (the largest components of the price level) would have shot up as well. But they have remained low, and overall price increases have remained within the Fed’s 2% target range. (See chart above.)

Some Possibilities That Might Be More Effective at Stimulating the Economy

An injection of money into the pockets of consumers would actually be good for the economy, but QE3 won’t do it. The Fed could give production and employment a bigger boost by using its lender-of-last-resort status in more direct ways than the current version of QE.

It could make the very-low-interest loans given to banks available to state and municipal governments, or to students, or to homeowners. It could rip up the $1.7 trillion in government securities that it already holds, lowering the national debt by that amount (as suggested a year ago by Ron Paul). Or it could buy up a trillion dollars’ worth of securitized student debt and rip those securities up. These moves might require some tweaking of the Federal Reserve Act, but Congress has done it before to serve the banks.

Another possibility would be the sort of “quantitative easing” first proposed by Ben Bernanke in 2002, before he was chairman of the Fed—just drop hundred dollar bills from helicopters. (This is roughly similar to the Social Credit solution proposed by C. H. Douglas in the 1920s.) As Martin Hutchinson observed in Money Morning:

With a U.S. population of 310 million, $31 billion per month, dropped from helicopters, would have given every American man, woman and child an extra crisp new $100 bill per month.

Yes, it would produce an extra $31 billion per month on the nominal Federal budget deficit, but the Fed would have printed the new bills, so there would have been no additional strain on the nation’s finances.

It would be much better than a new social program, because there would have been no bureaucracy involved, just bill printing and helicopter fuel.

The money would nearly all have been spent, increasing consumption by perhaps $300 billion annually, creating perhaps 3 million jobs, and reducing unemployment by almost 2%.

None of these moves would drive the economy into hyperinflation. According to the Fed’s figures, as of July 2010, the money supply was actually $4 trillion LESS than it was in 2008. That means that as of that date, $4 trillion more needed to be pumped into the money supply just to get the economy back to where it was before the banking crisis hit.

As the psychological boost from QE3 wears off and the “fiscal cliff” looms, perhaps Congress and the Fed will consider some of these more direct approaches to relieving the economy’s intractable doldrums.

Ellen Brown is an attorney and president of the Public Banking Institute. In Web of Debt, her latest of eleven books, she shows how a private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Her websites  and Other GREAT articles are at : http://WebofDebt.com, http://EllenBrown.com, and http://PublicBankingInstitute.org.

Bonus..

I want you to watch this video they are discribing what is exactly going on here the focus they give you is money is being printed. Although they show you right out in the open  $40billion dollars of Housing TITLES are being taken by the cartel!!!! they enphasize the fiat money and NOT the receiving of REAL ASSETS tothe FED Cartel. This is standard propaganda to hide in plain site!!!! enjoy.

Do What ICELAND DID!!! AGREED

 HANG THE BANKERS AGREED,

See Front page post  George Carlins answer “Death Penalty”

very Funny and effective!

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One thought on “Paper Fiat turned into Real assets: How the Fed Cartel Just got paid from the long housing manufactered crisis.

  1. so did you catch it! Feds trade paper they print for hard Assets the titles!!! Mortgages
    are backed by real assets.
    then Watch suddenly housing crisis will be over. Prices of housing go up
    and so do THEIR assets. These Guys always think it through!!

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