The Fed and QE2 – It’s Probably Not What You Think - Christian Economics, Biblical Economics, Christian Finance, Biblical Finance, Biblical Wealth, Christian Mortgage, Christian Mortgage Advice, Christian Mortgage Consulting

Investors will again be sitting on pins and needles this week, as they await the verdict from “on high” that will be announced Wednesday by the Fed.

We’ve been hearing rumors for a number of weeks that the Fed will initiate a new round of monetizing, affectionately known as QE2 (the second round of “Quantitative Easing”).

We’re being led to believe by mainstream media that this new round of money printing might actually get our stalled (actually deflating) economy moving again. They’re very wrong. In fact, they’re so wrong that they can only be wrong for two reasons:

1) A complete lack of understanding of what money even is, and therefore a lack of knowledge regarding how it operates in our economy, or

2) A complete understanding of what money is, and how media propaganda can be used to get the citizenry to repeat the mantra of “inflation” and “it’s the government’s fault for all of this” in order to gain more power and filthy lucre.

I think we are able to see a lot of both positions. In fact, there IS a lot of blame that can be focused in the government’s direction. However, the Federal government is running scared right now. You might even say they’re terrified. All of the centralization of power that they have been building upon for decades is at a great risk of spinning apart into a more decentralized model.

The citizenry of our nation has a really bad habit. Most can’t remember historical events that happened more than a week ago. Some people realize that there actually was a first round of “quantitative easing” by the Fed, but very few could actually describe what it consisted of. Therefore, let us revisit recent history from 2008.

Quantitative Easing Round One (Federal Reserve Announcement)

The first round of quantitative easing consisted of the New York branch of the Fed purchasing $200 billion of “agency debt” (primarily Fannie Mae and Freddie Mac mortgage loans), as well as $500 billion of Mortgage-backed securities (securities backed by home mortgages and owned by international banks).

The public reaction to quantitative easing consisted of everyone running around in fear of major inflation – or even hyperinflation. In other words, they not only bought the propaganda that the banks and media were selling, but they become the chief mouthpieces to help propagate it out to the masses.

We must ask ourselves a question. What happened to that $700 billion of new money that the Fed printed in order to buy all of that mortgage debt? Was it added to the overall money supply in our nation, such that it is now circulating and driving up prices?

No.

Folks, what I’m about to explain is very, very important towards understanding what is going on in our economy – and I’m not aware of anyone else writing or talking about it. The Fed produces a weekly balance sheet statement known as the H.4.1 report. Here is a link for the one issued on October 21, 2010.

I call your attention to page 3 of the report. You’ll see a table at the top of the page with the following information at the end of the table:

The numbers are expressed in millions of dollars. Therefore, we see that the international banks are holding over $992 billion dollars in their “excess reserve” accounts at the Fed. The Fed is paying the international banks interest on those holdings. Do you see what’s happening?

ALL of the money that was printed as a result of QE round 1 is simply sitting at the Fed. The international bankers exchanged mortgage securities with the Fed for dollars that are just sitting there. Why is this?

It’s because those mortgage securities were only worth about 35 cents to the dollar. The banks sold them to the Fed (which is run and controlled by these same banks) in exchange for the full 100 cents on every dollar. Meanwhile, the Fed is undertaking a systematic transfer of wealth money laundering scheme – the likes of which have never been seen in history. You can read a detailed point-by-point analysis of how this is happening on my web site, NewFamilyEconomics.com:

The Fed’s Ties to Real Estate Fraud

The point I’m attempting to drive home is this. The Fed did not increase the nation’s money supply one iota during the first round of quantitative easing. All of that money is sitting uncirculated at the Fed, in the excess reserve accounts of the international bankers.

QE2 – What the Fed’s Seeking to Hide

Hopefully you have read my articles on MERS, and the mortgage documentation mess that threatens clear title on millions of homes. If not, they are available for free on my web site.

Ask yourself a question. When did you first begin hearing the rumors leak out that the Fed was going to “purchase more assets”?

It began right as the mortgage documentation fraud story was building steam.

Ask yourself another question. What if that mortgage documentation is a whole lot worse than anybody realizes? What happens if the state governments and the courts begin to require the international banks to produce physical copies of promissory notes that don’t exist anymore – or where they have lost their chain of custody?

The banks would be absolute toast.

Here’s a third question. How can the international banks protect themselves from this happening? After all, they can only fight hundreds or thousands of subpoenas for so long!

Think about this possibility...WHAT IF the international banks were to sell a metric ton of their dubious fraudulent mortgages to the Fed? WHAT IF the Fed announced a new round of quantitative easing under the pretense of rescuing a faulty economy – when, in fact, that was just a cover story to bring billions of dollars of documents under their umbrella…documents that should be landing many bank executives in jail for a long, long time?

Do you now see what this is all about? I wouldn’t be surprised to hear the Fed announce $1 trillion dollars of mortgage security purchases after their Wednesday meeting. Why?

What if the state governments and the courts went after those mortgage documents when the Fed has ownership? What is the Fed going to say? They will tell everyone to get lost. They will tell everyone that they are immune to any legal proceedings or audit! The legal process will be stymied!

Guess what? It’s a brilliant plan – and it will work. Not only will it work, but it will be yet more mortgage securities that the Fed can use in their grand money laundering scheme that I wrote about at the above link.

Won’t our Federal government step in and stop the Fed? Won’t they put handcuffs on the international bankers?

Here are my final questions for you. What would you do if you were President? What would you do if you understood the fact that coming against the Fed with an audit would very likely result in the Fed threatening to stop operations at every financial clearinghouse in the nation – and around the developed world? What would you do if you realized that the Fed, run by the international bankers, had the power and capability to shut down the economies of the world if you didn’t let them play their games?

Would you back off and lie to the American people about what’s really going on? Would you try to temper things by spending enormous amounts of new credit, so that you’re running a $1.6 trillion dollar deficit each and every year? Would you care about the kids and grandkids that have had their economic future stolen from them – just so our wicked and perverse generations can live in an alternate form of reality? Would you escape into the pleasures of the world, seeking a temporary buffer from the fate that awaits you?

Or would you fear the living God?

Your comments and questions are welcome…

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