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From This Day Forward, We Will Watch How The Stock Market Performs Without The Fed’s Monetary Heroin

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Money - Public DomainMark this day on your calendars.  The Dow is at 16974, the S&P 500 is at 1982 and the NASDAQ is at 4549.  From this day forward, we will be looking to see how the stock market performs without the monetary heroin that the Federal Reserve has been providing to it.  Since November 2008, the Fed has created about 3.5 trillion dollars and pumped it into the financial system.  An excellent chart illustrating this in graphic format can be found right here.  Pretty much everyone agrees that this has been a tremendous boon for the financial markets.  As you will see below, even former Fed chairman Alan Greenspan says that quantitative easing was “a terrific success” as far as boosting stock prices.  But he also says that QE has not been very helpful to the real economy at all.  In essence, the entire quantitative easing program was a massive 3.5 trillion dollar gift to Wall Street.  If that sounds unfair to you, that is because it is unfair.

So why is the Federal Reserve finally ending quantitative easing?

Well, officially the Fed says that it is because there has been so much improvement in the labor market

The Fed’s language, however, did suggest that they were getting more comfortable with the economy’s improvement. It cited “solid job gains,” citing a “substantial improvement in the outlook for the labor market,” as well as pointing out that “underutilization” of labor resources is “gradually diminishing.”

But that is not true at all.

The percentage of Americans that are working right now is about the same as it was during the depths of the last recession.  Just check out this chart…

Employment Population Ratio 2014

So there has been no “employment recovery” to speak of at all.

And as I wrote about yesterday, the percentage of Americans that are homeowners has been steadily falling throughout the quantitative easing era…

Homeownership Rate 2014

So let’s put the lie that quantitative easing helped the “real economy” to rest.  It did no such thing.

Instead, what QE did do was massively inflate stock prices.

The following is an excerpt from a Wall Street Journal report about a speech that former Fed chairman Alan Greenspan made to the Council on Foreign Relations on Wednesday

Mr. Greenspan’s comments to the Council on Foreign Relations came as Fed officials were meeting in Washington, D.C., and expected to announce within hours an end to the bond purchases.

He said the bond-buying program was ultimately a mixed bag. He said that the purchases of Treasury and mortgage-backed securities did help lift asset prices and lower borrowing costs. But it didn’t do much for the real economy.

Effective demand is dead in the water” and the effort to boost it via bond buying “has not worked,” said Mr. Greenspan. Boosting asset prices, however, has been “a terrific success.”

Moving forward, what did Greenspan tell the members of the Council on Foreign Relations that they should do with their money?

This might surprise you…

Mr. Greenspan said gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.


It almost sounds like Greenspan has been reading the Economic Collapse Blog.

Since November 2008, every time there has been an interruption in the Fed’s quantitative easing program, the stock market has gone down substantially.

Will that happen again this time?

Well, the market is certainly primed for it.  We are repeating so many of the very same patterns that we saw just prior to the last two financial crashes.

For example, there have been three dramatic peaks in margin debt in the last twenty years.

One of those peaks came early in the year 2000 just before the dotcom bubble burst.

The second of those peaks came in the middle of 2007 just before the subprime mortgage meltdown happened.

And the third of those peaks happened earlier this year.

You can view  a chart that shows these peaks very clearly right here.

The Federal Reserve appears to be confident that the stock market will be okay without the monetary heroin that it has been supplying.

We shall see.

But it should be deeply troubling to all Americans that this unelected, unaccountable body of central bankers has far more power over our economy than anyone else does.  During election season, our politicians get up and give speeches about what they will “do for the economy”, but the truth is that they are essentially powerless compared to the immense power that the Federal Reserve wields.  Just a few choice words from Janet Yellen can cause the financial markets to rise or fall dramatically.  The same cannot be said of any U.S. Senator.

We are told that monetary policy is “too important” to be exposed to politics.

We are told that the independence of the Federal Reserve is “sacred” and must never be interfered with.

I say that is a bunch of nonsense.

No organization should have the power to print up trillions of dollars out of thin air and give it to their friends.

The Federal Reserve is completely and totally out of control, and Congress needs to start exerting power over it.

The first step is to get in there and do a comprehensive audit of the Fed’s books.  This is something that U.S. Senator Ted Cruz called for in a recent editorial for USA Today

Americans are seeing near-zero interest rates on their savings accounts while median incomes are falling, and millions of people are facing higher gas prices, food prices, electricity prices, health insurance prices. Enough is enough, the Federal Reserve needs to open its books — Americans deserve a sound and stable dollar.

Whether you agree with Ted Cruz on other issues or not, this is one issue that all Americans should be able to agree on.

If you study any of our major economic problems, usually you will find that the Federal Reserve is at the heart of that problem.

So if we ever hope to solve the issues that are plaguing our economy, the Fed is going to need to be dealt with.

Hopefully the American people will start to send more representatives to Washington D.C. that understand this.

  • Erik Bergum

    We definitely need and should hold the Federal Reserve Officials Accountable of course!!!!!

    • Fannie

      We should. But, you don’t have enough jails for the culprits…spread the wealth to your rich friends…they’re all guilty of this crime… and they will protect each other from doing any time….

  • Bill

    What happens next is anyone’s guess but be certain there will be big changes and the truth will still be elusive.

    • Fannie

      I have been following the seven year cycle. My guess is a big crash, like the dot com bust and 2008, all rolled into one.

  • durango

    The fed says it intends to keep interest rates low. How can they do this? They have to buy bonds to do that. The rates must rise, first in junk bonds, then in the rest.

    • Jane the Plummer

      9 meals to anarchy. The average American has 3 days of food on hand. If interest rates rise, commodities will skyrocket.
      Tick-Tock goes the hyperinflation clock…

  • Wizard of Aus

    I fear that things are going to get worse. Welcome to Depression 2.0.

    • Kim

      Depression on steroids

  • K

    Remember how many were surprised when the Government announced they were closing down HAARP. Turned out they had found a better way to control the atmosphere using lasers. They are stopping QE just before an election? An attempt, to throw some of us a bone? Have they found a better less obvious way to manipulate the market? Or have their rich friends mostly exited the market? All I know is, I do not think they suddenly came to their senses.

    • Kim

      I agree. there is something else up their sleeves

      • James K

        not a bad 1st day off the heroin!
        keep trying Michael. you are very smart guy but TPTB a bit smarter. this is fixed so badly they can do this forever

    • Fannie

      As a matter of fact, you are right on one point. Their rich friends have exited the market. I think it was less than a month ago that George Soros dumped his stocks, remember that? The article listed who else did and the question was asked, “What do they know?”….hahahaha…plenty! So, I expected this. And, it all works into the “Shemitah” or the 7 year cycle…we are due for a tremendous crash this next year. We are getting ready for it now, as we speak!

      • Mike Smithy

        Now that the Fed has allegedly reached an end of QE3, a couple of questions remain.
        1) Will the markets throw a “taper tantrum” and if so, when?
        2) Will there be a QE4 and what type of shenanigans will it entail?

  • losermagnet

    I really think the fed should step up with bucket list loans, bundle them up, and sell them, around the world. That might pump things up, now that the easing has stopped. My guess, we will see a laundry system develop, within countries controlled by the fed, to keep it going.

  • The Machinist

    Buy Guns.

    • Mike Smithy

      Buy Lead.

    • Priszilla

      Yes. Guns need ammo and printers need ink. Printers are free these days it’s the ink that provides the profit.

      • Jackie Milton

        Brass and lead are a much better investment than gold and silver. They will be the precious metals that are valuable to our future.

    • Mike

      Silver is cheaper.

    • energizedmortal

      no need, there will be plenty on the ground from the KIA

  • Mondobeyondo

    It’s going to perform the same way a heroin addict performs when he/she doesn’t get their drug fix.

    Yup. The implications are scary.

  • Undecider

    While we’re at it, let’s pull out the U.S. government’s drug money laundering.

  • Firstgarden

    “No organization should have the power to print up trillions of dollars out of thin air and give it to their friends.”

    Trick or Treat?

    • Private banks are responsible for 90%+ of our money supply. The Fed, a public-private partnership, is nothing more than first among equals that helps to ensure the smooth operation of the entire system.

      We need to move to sovereign money, created by an independent board in the Treasury and spent out by Congress TO THE PEOPLE, not to the banks.

      • Anenome Ofglobalgov

        And bring back Glass-Steagall (the separation of real banks from the casino investment banks that take the deposits and gamble with them)

        • Better yet, eliminate the shadow banking system and ban banks from purchasing financial assets on margin, or (equivalently) lending out money that they have already lent out. This would ensure that the equity market, for example, into which banks place much of depositors’ money, is linked more closely to reality and does not swing wildly.

      • Karl McGaugh

        “The Fed, a public-private partnership,” The only thing public about the fed is its ability confiscate our tax dollars as interest on the public debt. The entire system is a Ponzi Scheme where debt creates loan money but not the interest money to pay off the bank. It will collapse when out of work people quit paying the taxes it requires.

        • True indeed. I was using public-private partnership in the perjorative sense, as applied to the banana republics that have converted their roads, rails, infrastructure to public-private partnerships in which foreign private investors get the most benefit.

      • Karl McGaugh

        The private bank is kind of a misnomer. Banks have an exclusive legal privilege of creating debt based on the capital reserve requirements dictated by the FED. The 10% reserve is a joke because the Fed allows banks to claim assets they don’t have unless they foreclose on good loans and derivative notes. Pawn brokers are the real private banks.

        • Also there are many ways around the reserve requirement through the shadow banking system. It’s meaningless for all intents and purposes and I did not mean to imply a 10% reserve requirement with my statement.

      • jox

        In the US it exist an organization that works for monetary reform and sovereign money, such as Positive Money in UK?

    • Firstgarden

      A trick for us and a treat for them.

    • James K

      not a bad 1st day off the heroin!
      keep trying Michael. you are very smart guy but TPTB a bit smarter. this is fixed so badly they can do this forever!!!!!!!!!!

      • FreeYourMindinSC

        Let’s see what it looks like in six to nine months. This should be interesting to watch.

        • James K

          been saying next 3,6,9 months for years!!!
          let it go.we aint collapsing.

          • FreeYourMindinSC

            If you think there’s a world outside Wall Street, or that there’s more to life than economic numbers … it’s already collapsing.

          • AS55423

            It was close in 2009. I thought that was it. Nothing goes on forever I’m sure the Romans thought the same thing Rome would last forever to.

      • Born Again

        Agree with you 100%.
        They can do this forever they call shots.

        • Lennie Pike

          Agree with you 100% – only “they” will be calling them with the Yuan (as planned) not the Dollar, and our individual freedoms that we once deserved will be 100% gone.

          Evil people take over when good people do nothing to stop them or become just like them. At the very top of their leadership are those whose primary goal is the same as that of Christians – ownership of your soul.

      • Lennie Pike

        TPTB can keep doing it until whichever country holding most of the World’s gold backs it’s currency with it. It just so happens though that TPTB are allied with this country. Everything is a huge theatrical production to pull your own wool over your eyes to herd you into a totalitarian society. Where is our manufacturing? Where is our gold? We’ve got a few months before the dollar’s value is cut in half overnight and Americans are betrayed and ready for the slaughter house. Those in the know in the precious metals “markets” know this is coming very soon.

        How ironic it is that ex- KGB spy Putin is the only major world leader not allied with these satanic totalitarians, and the only one loyal to his own citizens – the very reason he is being provoked and the only one speaking and acting in a reasonable and civilized manner. He has an 80%+approval rate from the Russian People. How many Western leaders have even 30%?

        From a freedom loving American Patriot: PUTIN 2016!!!! Too bad it will be too late.

        • Seeker

          Agree with YOU, Lennie, 100%, on Putin and your thoughts on what’s really happening with the country. God help us.

    • Hahaha

      Michael to your disappointment market is crazy today. DOW +221 points.
      Gold is going in the toilet.
      You have no clue about anything, gloom and doom BS like many of your followers.

      • El mico

        Sounds more like that final burst of adrenaline a dying animal has.

        • FreeYourMindinSC

          Uh-huh. Or irrational exuberance on steroids.

      • AzDi

        Just wait till next week.

  • About time that we jubileed all debt and financial assets, replacing the principal with newly issued sovereign money from the Treasury. Thereafter we need to ensure a more stable credit market, for example by moving home, farm, auto, and small-business loans under the control of banks owned by the several states. The remaining parts of banks should be moved to credit unions owned by the depositors.

  • Kim

    the FED and its wall street buddies are parasites literally sucking the blood out of the middle class until there is no more to give.

  • Not me.

    Funny, Ron Paul wanted to audit the fed but the sheeple voted for hope and change. No one said the change was going to be for the better.

    • I’m not in favor of most of Ron Paul’s policies but I would certainly support him if his main policies were to (1) replace bank money with sovereign money from government, free of debt and (2) wind down our empire in a controlled fashion. In turn would follow a raft of necessary changes needed to improve the health of our environment and people, including desuburbanization and reduction in unnecessary debt-capitalized expenditure.

    • Jane the Plummer

      Ron Paul? The 33rd degree Freemason and quite possibly the grand master himself? I think I need a drink…

      • Mike

        With that statement, I would say you’ve had enough already.

        • Jane the Plummer

          Ron Paul, Alex Jones, Mark Levine, ..whoever. They all play to the same piper, MAKING EVERYONE THINK THAT THE US GOVT IS SOME KIND OF ALL POWERFUL GOD, FEAR TACTICS SELL THEIR MERCHANDISE.
          Obama called Jones “deranged” recently, right on cue. It’s all a mind game. Mix truth with lies. Hell, I just found out that Nina Pham is a CRISIS ACTOR! (nena pham) No wonder she said “party party in Maryland” when arriving at the fake facility. See the vid, look it up.
          Nothing is real. Especially Ron Paul. How can someone in govt be allowed to talk like he does? How can Jones call the President Benito Obama and other derogatory names? They are all in it together. Donald Trump said Obama is a fake citizen, he didn’t go to jail?
          I almost feel sorry for you, almost…

          • Mike

            That’s fine, I do feel sorry for you. Now lay of the rubbing alcohol.

      • Tim

        Ron Paul is a 33rd degree Freemason? Will you please provide support for that claim? I’d like to see it.

        • peace angel

          GOOGLE IT. THERE ARE OVER 200,000 PAGES.

          WHY can people not do their own research?

          Most Republicans are Free Mason or Skull and Bonesmen like Kerry and the Bush men.

          His wife is Eastern Star and his daughters are Rainbow. THEY could not get into those orgs IF he was not Free Mason.

          • No country like USA

            What do you smoke?

          • I don’t know what he smokes but you smoke the opium of the masses: mass media, distorted religion, fake economics, and spectator sport politics. While his comment may be ridiculous you aren’t one to talk.

          • Jane the Plummer

            Peace. The masses are really dumbed down to this stuff. And the elites know it. Too little, too late. Maybe ‘another president, congress..’will save them. Now, about that drink…

      • peace angel

        His wife is Eastern Star and his daughters Rainbow. THEY could not have gotten into these orgs IF he was not Free Mason.

        There are lots of pics of the handshake, BUT I have never seen pics of his ring.

    • Lynn Walker

      Libertarians are just the Aristocracy in another guise. Politics is the arena in which the rich devour the poor and every word spoken is a lie intended to cheat another. Defending one demon is tantamount to defending evil.

  • Lab Rat

    A nice 25 dollar drop so far in the price of gold on this first morning of post QE. Silver chart looks like Niagra Falls. Metal prices are capitulating and sentiment is smashed. A nice little present for the equities market going into this first full day of trading without the fed put, don’t ya think?

    • rand

      $25 drop? What chart are you looking at?

  • Black

    The stock market is and always will be manipulated by the government and the fed.

  • prut

    Before reading this, I thought QE was a bad thing, but now that I know Greenspan opposed it, I’m going to have to rethink it. He’s wrong about everything. Always.

  • jaxon64

    I suspect that we may see an initial period of stability so that they can say, “see…it worked”
    They timed this halt just as the 3rd quarter reports show a 3%+ growth in manufacturing and spending and this will be followed by the holiday hires, spending and added imports of chinese trinkets for the masses for the 4th quarter to finish the year.
    I suspect the shock of the QE end to hit in late january/February as the bills come due for the credit cards, the temp holiday workers are sent packing and all of the seasonal jobs and outdoor construction/roofing/gutters etc are at a snail’s pace.
    Of course they’ll probably blame it on the weather like they did last year……

  • peace angel

    I think all the time, what if the FEDS had bailed out the citizens. THAT would have stimulated the economy. New jobs, new businesses, lots of retail Chinese goods flying off the shelves and more.

    How about an audit of Fort Knox?? Most believe they have been guarding an empty vault for decades.

    • toadsticker

      I believe that it would have been more fair if they had dumped 3.5 trillion out of planes as they flew over the U.S.

      • peace angel

        CHEMTRAIL MONEY—I like it.

    • K2

      Yeah a lot of people asked for this.

  • Richard Mann

    I think the Fed has gotten to be too big of a monster to be taken on by Congress. No one in DC has done anything at this point to strip the Fed of it’s power, and I doubt that any one will.

  • Matt thomas

    Everyone acts like its a bad thing only the failure of america will return our freedom. I’d rather be free in a cave

  • jakartaman

    Skimming through these comments its clear most expect a serious problem around the corner.
    I totally agree and recognize that it has been coming for decades.
    The questions are numerous
    How bad will it be
    How long will it be
    Will the world erupt into wars for resources
    When the smoke settles what will the USA and world look like
    How will the world move forward

    • It will end one of two ways: either the American ruling classes are removed from power by sustained protest and/or guillotined, or we will descend into a mixture of post-Soviet oligarchy and African warlordism. It’s not going to be pretty at all.

  • Jeff

    Getting Congress to exert their power over the FED is complete nonsense. The owners of the FED are the ones who “buy” the puppets in DC so the status quo can remain untouched. If there was ever popular support from DC politicians to “control” the FED they would be swiftly replaced, or “disappeared”. In my opinion I don’t think we will see a major sell-off this time around. The FED and puppet masters have had plenty of time to write HFT algos that will keep the markets levitated and heading towards DOW 20k. When a central bank can simply buy and sell shares to itself behind the scenes with digital currency, QE isn’t necessary to keep the markets juiced.

  • John

    They have pumped everything back up & claim that things are booming again, so we can expect a huge false flag
    soon to coverup the planned collapse & blame it on someone else
    besides our politicians & the rest of management that is in bed with
    them – The Too Big Too Jail.

  • rin tin tin

    How can we know for sure the fed stopped?

    • Mike Smithy

      I’m sure Belgium will continue to rescue us. (Sarc)

  • dave

    The title qe3 is just a name,the qe has not ended,just look at the countries buying our debt.They don’t have the economy to buy massive amounts of our debt,we are buying our own deb t.As said the qe will never stop now,it can’t.

  • alan

    QE will stop in name only and something will replace it. We will continue down the slippery slope of collapse, 6+ years and counting. The stock market will stay flat at a minimum forever.

  • jane bobsky

    The more things change…..? The FED is the problem. Won’t be fixed any time soon.

  • TK

    +100 Andrew Jackson is my Hero!!!

    • Cynical Guy42

      Paying off the debt was good, as was the end of national banking. But I’m not thrilled about slaveholding or the way he treated Native Americans.

      • Ace

        This just in: “Andrew Jackson revealed to be imperfect man. Historians dismayed.”

  • mar1950

    What’s to keep the Fed from buying this garbage under the table? They have been doing that all along. Why should they stop now.

  • It’s so unfortunate that Jackson’s legacy was tainted by his slaveholding and Indian removal. He could have been an example for the country.

    • joe oberr

      I agree he could have been an example had he not had those two major faults. But how many U.S. Presidents had true care and concern for the individual citizen? I would not think too many. The vast majority of them, especially for the past 100 or so years were/are crooks. They need money to get elected, hence the bribes called campaign contributions, but most want to get elected because of power, fame & the chance for more money once in office. I am just grateful for whatever authentic good any President can do for the citizens as it is well near impossible to avoid doing some evil, even if not intended upon taking office, as their is a huge amount of pressure, once sworn in, to do the bidding of financial backers who are usually not the most morally upright individuals, to put it mildly.

    • Ace

      He was. He fought a central bank. Why do you have to drag in extraneous aspects of his life? Firstgarden’s comment wasn’t an overview of Jackson’s life.

    • Third Eye

      He was a Great President but he is rightly tainted by his social polies regarding Blacks and Native (Non-White) people. However as a Non-White man I believe in his fiscal viewpoint applied towards everyone. Like the constitution is a great peace of paper but only for the people who benefitted from it at the time of its inception.

    • Frank

      The more pertinent fault barring Andrew Jackson from being a role model against corruption in the financial system, might be associated with his role as founder of the spoils system in US politics.

  • PK

    The Federal Reserve members are the first tier puppets controlled by the masters.

  • rat28

    The stock market has regained all its loss in Oct even QE has ended. The financial markets know that FED will have their backs

  • alan

    BOJ just printed 80 trillion yen, silver is $16.16 an ounce at this moment…Fire sale!

    I don’t understand how it does that, must be deflation?

  • GSOB

    Job 21:13 > 15

  • squashpants

    Michael, I am surprised that the stock market is doing quite well after the news that the Fed is ending its bond buying program. What if we are wrong about our expectations?

  • ron17571

    The problem with numbers put out by the government. Is that people who run out their unemployment go off the books and arent counted. There is all kinds of accounting tricks going on.
    An easy way to see how things are, Just drive around and go to the industrial ares in your city and see all the empty buildings. And for lease signs.
    And anyone that pays attention when shopping can see the smaller packaging at a higher price than it was a while back.
    We call it Obama sized. It isnt all Obamas fault, He isnt a king(well not yet) But Im also for term limits in congress.We need fresh blood/thinking. We need some adults to be in charge. Not these eggheads who have never had a job.

  • gfmucci

    Please explain the Dow’s performance over the last couple of days (October 30 and 31).

  • noel

    you will see dow 20000 before any big crash.still short the market. pain on my side.

    • Big lie

      Gold at 400 market at 21000 . 50 millon People still on food stamps wow.look around people are lazy and f$@;?ed

  • Jim Clark

    Jackson’s idiotic actions against responsible bankers brought on the Panic of 1837, which lasted 7 years and probably had 25% unemployment

    • “Responsible bankers”? You mean those who used fractional reserve banking to create notes out of thin air just like our banks do now? You mean the same ones who created a monetary system based on debt?

      Personally I am not a fan of specie-based money since it is not scalable to a large industrial economy: however, this does not mean that I accept the current fiat bank-based system. Sovereign money creation free of debt, combined with controlled international exchange rates and a single world currency for world trade (created by a democratically accountable UN), is the way forward. It would be rather similar to the prosperous Bretton Woods era.

      • Lennie Pike

        It is scalable.

        • The only way it is “scalable” while ensuring a stable consumer price index (zero long-term inflation) is to consistently reduce the amount of specie for which currency is redeemable. Total gold above ground has increased by a factor of 7 from 1900-2000, while total world GDP has increased by a factor of 24 in the same period (and has increased a further 20% on top of that since then). International trade, for which gold would be more useful, has increased even more. Gold is not scalable to increasing industrial production: the only way to accomplish international trade is through notes of currency whose value is justified by the value of goods and services they can buy, which is what is most important. Money is not in itself an investment.

          • Lennie Pike

            Did I mention anything about having a currency?
            But even if a currency was going to be exchangeable for physical gold, the amount of gold one received for currency would have to be reduced to prevent massive deflation and not inflation as you stated – that is assuming currency was not being created with out the physical gold to back it. If you are assuming that – why would you? That would not be a money system backed by gold but would be a fiat money system the same as we had in the U.S. before 1971. If everyone then had all at once demanded gold for their paper notes, there would have been no where near the amount of gold available to redeem them – it was a sham from day one. Kind of like the Comex and GLD these days.

            Due the fact that you don’t understand this one basic aspect of gold as money, I am not willing to go on and on with you (but trust me I could) about why precious metals are the only form of money that are viable for the long term health of any economy, even an international one, and for the financial well being of individuals – especially with the technology to assist with it’s implementation that we have today

            I’m not here to argue for the sake of winning an argument. I’m here because no human being can be trusted to be in control of any fiat money system including the one you proposed with the democratically controlled U.N. (WHAAAAAAAT???), in charge of a world currency used for international trade. Many people have been robbed of a large percentage of their labor (the true definition of money) by the thieves who administer fiat money systems, and many have died in the wars that fiat money systems and the assholes that profit from them begin to perpetuate their fiat money systems I am here on their behalf.

            You don’t have to trust me, study up on the subject of money by researching what the true experts through out history had to say about money.

            Sorry about the delay in responding – I didn’t check back, wasn’t expecting any one to put up an argument against fact. Yeah, proponents of fiat money systems royally piss me off as you can tell. Sorry.

    • joe oberr

      Responsible bankers??? ROFL. Those “responsible” central bankers were/are lovers of money who could care less about you or me. They are thieving murderers who will do anything to keep their profits coming, and we are their individual profit-centers – think taxes and inflation for starters. They almost got Jackson, they did get Lincoln and Kennedy for their similar anti-central bank positions.

  • Alwaystomorrow

    Well stocks seem to be fine 2 days following the removing of the “monetary heroin.” Dow up 416 points. I thank God I didn’t go with my gut feeling two years ago and pull all of my wife’s and my money out of our 401K’s. Massive debt and money printing are both wrong and two wrongs do not make a right but they sure did make a hell of a big increase in our 401K’s. These articles are interesting to read and a lot of truths are here but I do not use them to make my financial decisions. How about you? 🙂

  • aedelaossa

    No one making less than $20k should have to file income tax!

    • joe oberr

      No individual should have to pay income tax period – unless he is receiving cash/benefits from the U.S. Gov’t which are legally/lawfully taxable. The Constitution strictly prohibits it:
      “No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken.”
      “Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers…”

      A direct tax is primarily a tax on your labor/work/investments/property that you pay directly to the gov’t. An indirect tax is what you pay on voluntary activity, e.g., a sales tax on food, excise tax on gasoline, liquor etc. that is paid to a third party, e.g., a grocery store that in turn remits to the gov’t.

      This means that the Fed Gov’t is not allowed to tax your cash receipts for labor, property, investments directly. If the FG wants a share of your earnings/property it would have to go to every state’s governor and ask for its proportionate share of the federal budget (California would pay e.g. 20% of the budget and Mississippi would pay 1% – I am guesstimating here). Then the governors, after paying the FG, would have to, in turn, raise the revenue as determined by each state’s constitution. The FG has done this about 4 times in its history.

      The income tax for individuals in the private sector were only 5% of the working population in 1935. The gov’t used WWII as the excuse to start directly taxing individuals

      and by 1945 over 90% of the people were paying unlawful taxes directly to the Fed Gov’t. This is outright theft of an unbelievable magnitude.

      The 16th Amendment did NOT confer new taxing authority/powers on the FG as many claim. The Supreme Court itself has affirmed this. If it did confer new taxing powers on the FG how come it took 30 years before everyone started paying on their private sector salaries? Answer – it did not confer new taxing powers and the D.C. politicians used the war as the excuse for a money grab, now in its 70th year.

  • In 1921 a farmer needed to haul 200 bushels of wheat to the elevator in order to walk across the street and buy a new state of the art Ford pick up.
    He needs 7500 bushels.
    Pure and simple.
    That is how the Fed robs you.

  • Anenome Ofglobalgov

    What a shame the people today have no idea how money is created (out of thin air and interest charged) and that the Federal Reserve was created and is owned by private international bankers. The people have been so dumbed down and the bankers are rubbing their hands in glee as their ‘New World Order’ (One World Government) grows ever closer.

  • joe oberr

    Correction – we don’t need an audit of the Federal Reserve System we need a TERMINATION of it. It is a private entity owned by billionaires in the U.S. and Europe who bribed the Congress in 1913 in order to pass a law giving this PRIVATE business enterprise exclusive rights to loan the U.S. Gov’t currency at interest. What a deal!!!! So instead of the Treasury printing more currency when needed it BORROWS it at INTEREST from these private billionaires. Its called interest bearing money. And guess who is stuck with this bill to repay principal and interest??? We are (the suckers), i.e., the taxpayers and our children and their children etc.
    Of course our “public servants” in DC love this arrangement as they get to spend all this currency which has been created out of thin air so they can buy votes from various constituencies (think welfare, food stamps, military industrial multinationals, TBTF banks etc). But since their is no free lunch the cost is inflation 2 or 3 Xs the official rate which steals life savings from the middle and lower class.
    Just listen to the various podcasts by G Edward Griffin, Eustace Mullins and many others on the web for more of a detailed explanation of our corrupt public servants and their crony corporatist buddies.

    • The Federal Reserve should be nothing more than a bank to transact government and large bank/international business. Currency should be emitted by the Treasury free of debt and spent into circulation by Congress. Home, auto, and other loans for non-business purposes should be conducted by banks owned by the several states, and should be available through all United States post offices. These banks should not directly take deposits but should rather be entitled to use 10% of all national bank deposits.

      The remaining functions of banks should be transferred to credit unions owned by the depositors, and the big five banks broken up into 20 or so new organizations.

  • Ideas time

    Wow the fed lies about everything and if anyone believes the will not create anymore money out of thin air to pump up the stock market, I have a bridge to sell you! In fact the latest run up back to the top is my guess part of the scam to show you that the economy is doing great. Did people forget about the 16 trillion sent to foreign banks in the 800 billion bail out. Ops!~ Why is it that anyone with an iq above room temp believes anything the corporate gv and their partners in criminal agencies and MSM put out? The truth is likely just the opposite.

  • Karl McGaugh

    QE has not stopped and if you believe Janet Yellen, you are a fool. With the amount of government debt, the ability of the US Government to pay the interest is based on the low QE interest rates. A default is coming when interest rates rise.

  • Michael Dubin

    I wonder if there is really going to be an end to QE, or if this is a PR stunt designed to reassure foreign holders of US debt that the Fed is not going to completely debase the currency. Remeber the “taper tantrum” last June when the Fed said it MAY reduce QE in the future? THe DOW dropped by 1,000 points and interest rates spiked. The Fed quickly reversed itself. It’s interesting that when the Fed announced the taper earlier this year, the market kept rising and interest rates remained low. That’s because there was no taper, it was all a PR stunt. This may be the same thing.

  • Bill

    Dated today, I just read a Harry Dent promotion (dated 5/14) that claims gold will go to $250 and the dollar will be king. Is this the latest elite propaganda? Has Harry capitulated to the elite? WTF is going on? My take is that the truth has never been harder to find!!!!! Has Harry been hacked or had?

  • DJohn1

    If we are going to fix the FED then we have to do something besides sit on our hands while it is done.
    The main cause of the national bankruptcy is not the FED.
    The main cause is unemployment of the majority of middle of the road income people in this country due to policies under at least 4 presidents.
    The FED feeding trillions of dollars into the banking system is mainly a symptom of what is really wrong and an attempt to put a bandage on instead of going for a fix at the basic causes leading up to the biggest depression in history.
    Well this country doesn’t need bandages. It needs major surgery at this point in time.
    How can all those economists be so wrong? Well for one thing they have followed the wrong economist over the years. Spend more money is what they have done and it doesn’t really work IF the basic consumer goods do not support the pumping of more money into the economy.
    What I propose they do is fairly complicated.
    FIX the housing market first. The way I would fix it temporarily is to allow unemployed people to stay in their homes. You do that by adding time to the end of the mortgage. You do that by allowing them to make token payments that cover taxes and insurance. You add the housing cost onto the end of the mortgage solving two problems at the same time. You no longer have a drain on the banks. The banks have to get 2/3rds of the amount of the mortgage in a foreclosure to break even. Instead of foreclosure, you have the alternative of staying in your own home while you get on your economic feet. There has to be a limit put on it. But I suggest 2 years. After which the home has to be sold by the home owner and whatever real estate company they decide to list with. Give them 9 months to sell the property and bring it up to code. The last resort should always be something like foreclosure.
    Exempt all of this from any welfare rules now on the books.
    I figure that will cost less than pumping trillions into an economy thru the banks.
    By doing the above, you have just made buying a home an investment that every person desires over the long term. That puts the housing market back together.
    Start a small business venture. That means a different kind of welfare. Cover anyone starting a new business locally with actual wages to start a business instead of unemployment and welfare.
    Change the rules by which the IRS comes down on small businesses. You make the IRS a silent partner in the venture by free tax accounting for anyone that starts a business and change the rules that discourage people from starting a business so that it conforms with the idea of encouraging enterprise.
    I suggest a free ride on the taxes for at least 5 years while the business gets started. I suggest we gradually bring these businesses into the mainstream with graduated taxes until they are finally completely legitimately able to pay taxes. That amounts to a whole lot less money than giving the banks trillions to keep afloat.
    Revise Obamacare so it is not a tax and it is not penalized for failing to meet those insurance standards. The measure is the ability of someone to pay given their current income and how much it digs into their net income after taxes.
    The entire bankrupt economy is due to the fact that government is reaching into everyday people’s wallets and leaving them broke.

  • chekmate2

    If we do go into a deflationary spiral, gold and silver will not be safe havens since they are not currency. There is no place in the world that has any precious metal as currency. All money today is fiat money. It has value because the government says it does. So, OK… You’ve got gold. What are you going to do when there is nothing to buy with it? Businesses will close. What manufacturing is left will diminish. In my opinion, we will revert to a barter society for the most part. If you have the time, learn a trade that will be worth something to someone else. If you are in a rural area, learn to hunt, have ammunition if you can’t use a bow. Be able to defend yourself and your neighbors/community. Very few believe it, but hard times are coming. My parents lived through the Great Depression (I’m 60) and their parents were able to get by, mainly by barter since no one had money and there was very little to buy. I’m not trying to be an alarmist and if I’m wrong, no harm no foul. But if I’m right, what then? Prepare.

  • makeupdiva

    Sadly I do not think they have ended QE at all

  • Fleendar the magnificent

    Look at the stock market chart for 29′ and compare it to today’s stock market chart. We are at the precipice. The cliff’s edge with our arms spinning in circles to catch balance.

  • Medusa00

    The further centralized control becomes of ANY aspect of our lives, the greater the threat that aspect becomes. The solution is preventing the move toward more and more centralized control/power.

    The individual states were created as individual NATIONS within a greater federation. These nations needed a unified administration to do a very small number of things…so few, you can count them on one hand. The federation was created as an “administrative assistant,” if you will, to these united nation-states. It wasn’t meant to control the nation-states, as it now does. It only does so because every nation in America has allowed it to happen.

    The solution, as I see it, is to unplug and go talk to your neighbors. Build community strength. Build relationships. When the fit hits the shan, those in smaller cooperative groups stand the best chance of survival. Not too big, not too small…just the way our government should be. When the lights DO go out, we’ll have to start over, and go back to the Constitution.

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