“Federal Reserve Steals From the Poor and Gives to the Rich”
|November 29, 2013||Posted by Staff under Financial|
This 2013 excerpt of Monex, Nov 18, is by ex US Presidential candidate Ron Paul.
Janet Yellen, nominated to become Federal Reserve Board Chairman, indicated that she would continue the Fed’s ‘quantitative easing’ (QE) polices, despite QE’s failure to improve the economy. Coincidentally, two days before the Yellen hearings, Andrew Huszar, an ex-Fed official, publicly apologized to the American people for his role in QE. Mr. Huszar called QE ‘the greatest backdoor Wall Street bailout of all time.’
It is increasingly obvious that the Fed’s post-2008 policies of bailouts, money printing, and bond buying benefited the big banks and the politically-connected investment firms.
It would be a mistake to think that QE is the first time the Fed’s policies have benefited the well-to-do at the expense of the average American. The Fed’s polices have always benefited crony capitalists and big spending politicians at the expense of the average American.
By manipulating the money supply and the interest rate, Federal Reserve polices create inflation and thereby erode the value of the currency. Since the Federal Reserve opened its doors one hundred years ago, the dollar has lost over 95 percent of its purchasing power — that’s right, today you need $23.70 to buy what one dollar bought in 1913!
The creation of new money does not impact everyone equally. The well-connected benefit from inflation, as they receive the newly-created money first, before general price increases have spread through the economy. It is obvious, then, that middle- and working-class Americans are hardest hit by the rising level of prices.
Ed. Notes: Businessmen who make their money in oil or whatever then go on to start a bank — the Rockefellers started what is now Chase — and the banks go on to collude, creating a central bank that controls currency and credit, such as the Federal Reserve, which actually is a corporation. The cycle gets its start from one man getting to keep the “rent” for a natural source. The cycle gets its fuel to keep running from banks getting to keep the “rent” for land that’s bundled up in mortgages. Bankers know this even if the rest of the population — those paying out the nose — don’t see how it’s done to them. Maybe geonomics should be a required course!