"The Federal Reserve will not monetize the debt." - Ben Bernanke in 2009 while testifying before US congress.
Those that did not believe this were called perma bears and fear mongering lunatics :) (Imagine being that gullible LOL!)
Alot of the ones calling others perma bears and crazies are now saying they knew all along, or that no one could have seen this coming and that they were one of the earliest person to warn us. Pathetic dishonest sore losers. The saddest part is the Dunning-Kruger is so high they probably even believe it. Absolutely pathetic.
What is monetizing the debt? And how is it finessing the law?
First, some context. (If you don't want to wait I explain the process in this idea only screenshot below).
In 1913 was passed the Federal Reserve Act, as described by congress of the time:
"An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes"
(Elastic means which can inflate to adapt to the country gdp - unlike Bitcoin - it does not mean hyperinflate thought)
You might have heard of the panic of 1907, a financial crisis where the NYSE fell 50% from peak in 3 little weeks.
Oh my it's hard to write about this without laughing.
Long story short, bankers got greedy and then got rekt.
From JPMorgan site "The crisis was global. The Bank of England sent $3 million in gold to Alexandria to stop the Egyptian Stock Exchange’s slide, only to find itself short of cash. Banks throughout Japan failed. French investors sold American stocks to buy gold to send home, badly depleting U.S. reserves."
And then J. P. Morgan a rich banker, with his Rockefeller and Rothschild buddies bailed everyone out.
The USA had no central bank since the Bank War of the 1830s, and alot of americans now felt the need of a central bank.
So the FED got created, a private entity, private and separate from government to ensure a government couldn't print whatever they wanted.
Fun fact during the 1929 crash, Morgan again (the bank, not the man he was dead by then) and his buddies were the ones to (try to) buy stocks to save the stock market.
Along the decades the FED power has grown, after each crisis. The USA had alot as they are a country built on massive debt and on being the world reserve currency (and used to be the most promising emerging country due to size geography potential).
In 2009 the FED for the first time monetized the debt, the chairman said it was not the case, which was a big fat obvious lie, and it was supposed to "not be that bad because temporary", but of course they never have been able to liquidate their assets, and all they did was postpone the problem and make a bigger, much bigger one.
Now they are saying they are going to print with no restriction, and are going to be much more aggressive than previously, so we can totally expect tens of trillions, unless it's all bluff to encourage investors to buy?
So, here we have it:
This is it. Germany. Zimbabwe. The US government can now print as much money as they want via their little trick.
Oh btw, US bonds are trash bonds, it's like 2005-2007 all over again.
The only rating agency to downgrade treasury in the 2000s was SnP (other ones were criticized for not doing so), and guess what agency was the only one to get Punished by the government? Yup.
So no one is downgrading government trash bonds now of course. They could be ranked Z it wouldn't matter anyway, the federal reserve is going to buy everything the government prints.
The days of the us dollar as a world reserve currency are over if they continue in this direction.
What kind of idiot would use the german mark as a safe haven?
Money printer go brrrr.
Those that did not believe this were called perma bears and fear mongering lunatics :) (Imagine being that gullible LOL!)
Alot of the ones calling others perma bears and crazies are now saying they knew all along, or that no one could have seen this coming and that they were one of the earliest person to warn us. Pathetic dishonest sore losers. The saddest part is the Dunning-Kruger is so high they probably even believe it. Absolutely pathetic.
What is monetizing the debt? And how is it finessing the law?
First, some context. (If you don't want to wait I explain the process in this idea only screenshot below).
In 1913 was passed the Federal Reserve Act, as described by congress of the time:
"An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes"
(Elastic means which can inflate to adapt to the country gdp - unlike Bitcoin - it does not mean hyperinflate thought)
You might have heard of the panic of 1907, a financial crisis where the NYSE fell 50% from peak in 3 little weeks.
Oh my it's hard to write about this without laughing.
Long story short, bankers got greedy and then got rekt.
From JPMorgan site "The crisis was global. The Bank of England sent $3 million in gold to Alexandria to stop the Egyptian Stock Exchange’s slide, only to find itself short of cash. Banks throughout Japan failed. French investors sold American stocks to buy gold to send home, badly depleting U.S. reserves."
And then J. P. Morgan a rich banker, with his Rockefeller and Rothschild buddies bailed everyone out.
The USA had no central bank since the Bank War of the 1830s, and alot of americans now felt the need of a central bank.
So the FED got created, a private entity, private and separate from government to ensure a government couldn't print whatever they wanted.
Fun fact during the 1929 crash, Morgan again (the bank, not the man he was dead by then) and his buddies were the ones to (try to) buy stocks to save the stock market.
Along the decades the FED power has grown, after each crisis. The USA had alot as they are a country built on massive debt and on being the world reserve currency (and used to be the most promising emerging country due to size geography potential).
In 2009 the FED for the first time monetized the debt, the chairman said it was not the case, which was a big fat obvious lie, and it was supposed to "not be that bad because temporary", but of course they never have been able to liquidate their assets, and all they did was postpone the problem and make a bigger, much bigger one.
Now they are saying they are going to print with no restriction, and are going to be much more aggressive than previously, so we can totally expect tens of trillions, unless it's all bluff to encourage investors to buy?
So, here we have it:
This is it. Germany. Zimbabwe. The US government can now print as much money as they want via their little trick.
Oh btw, US bonds are trash bonds, it's like 2005-2007 all over again.
The only rating agency to downgrade treasury in the 2000s was SnP (other ones were criticized for not doing so), and guess what agency was the only one to get Punished by the government? Yup.
So no one is downgrading government trash bonds now of course. They could be ranked Z it wouldn't matter anyway, the federal reserve is going to buy everything the government prints.
The days of the us dollar as a world reserve currency are over if they continue in this direction.
What kind of idiot would use the german mark as a safe haven?
Money printer go brrrr.
In 10 years or so when the situation worsens dramatically I will watch US officials pretend to be suprized and use a very serious tone and talk about the gravity of the unrest/poverty/suffering etc and I will piss myself.
I am going to get patronized for taking the problem lightly, banned from the internet, some "simple minds" that take themselves so seriously will act all serious and explain to me the gravity of the situation I clearly do not understand.
KID STFU I KNEW ABOUT THIS WHEN YOU STILL HAD NO CLUE.
I knew every thing 15 years before you even first heard of it.
Actually no, I knew my whole life because I understand that history keeps repeating itself no matter what short of morons reproducing.
Human history is a broken record.