Monday, May 04, 2009

All Hail The Power of the Printing Press

The Federal Reserve is now buying debt that is not explicitly government backed. Which means they have uninhibited power to print money. This is why the market is rallying. The Fed and its controllers have unlimited power to rally the market to whatever level they wish. Right now they need to restore confidence so that they can actually keep their power. (Otherwise the Fed will likely lose the power it has usurped.) I dont know how many different ways I have to say it for it to sink in: the Federal Reserve System has taken complete control of our monetary system, and has usurped the power given only to Congress by the Constitution. The Fed can now levy taxes any way it wishes via its control of the money supply. They can buy all the toxic assets, creating trillions out of thin air. By doing this they can pump the markets to whatever level they wish, be it DOW 2000 or 20,000.

The only problem is that the Fed cannot print barrels of oil or tons of coal, iron, aluminum, etc. But that only matters to those on the bottom rung of the economic ladder. And those on the bottom rung cant comprehend this stuff so they will lay blame on whatever demon the media wishes. The economy is firmly in the grasp of the occult ruling class. It will not matter how poor most Americans become. The Fed cannot make everyone rich. But the Fed CAN inflate the money supply and blow bubbles and push up corporate earnings and thus push up the markets. What's good for Wall Street is not what is good for Main Street, but they know that and they really couldn't give a damn. There is no political opposition as long as about 10% of the population gets to share in the wealth at the expense of the other 90%. This has been the foundation of American economics for 30 years and there is no reason to think it will change now that they have even more power. It wont matter until perhaps 50 million Americans are living in tent cities.

It is absolutely possible for the DOW to be at 15,000 even when 50 million Americans are living in camps. I think most intelligent contrarions are having trouble understanding how that is possible.

Karl Denninger describes the process of uninhibited printing as "Bernanke inserting a gun into his mouth". No that is not what he is doing. He is sticking a gun in some random poor person's mouth, and pulling the trigger. And repeating it a million times. I dont know why people like him cant understand that there is a very clear difference. The bond market wont call Bernanke's bluff, because the bond market loves it whenever he caps off another "useless eater". The Fed has the power to bail out the whole damn bond market now, even if it has to buy all the junk bonds on planet earth. But Bernanke cannot print loaves of bread and heating oil. So you tell me who is getting the shaft here, and who has the financial means and motive to alter this trajectory? Simply put, this is what this system is designed to do: transfer wealth to the rich in such a sophisticated manner that only a small percentage of the population can comprehend it, and then rely on systemic bribery and corruption to pacify that small percentage. My god, it works beautifully doesnt it? Hell, the primary opposition (Limbaugh, Beck, etc) was cheerleading all this for years, and they will cheer it again once the republican buttcheek is back in power. (Republicheek?) Sometimes you have to marvel at the sheer precision; the almost machine-like systematic nature of our destruction.