- It seems to have slipped by the American people
- There was no great analysis or commentary about it in the mainstream news
- We questioned the value of the QE3 program
- Bankers should take the money and invest it into the economy
- The Fed will own it all
- In just 3 months or less, the Fed has printed another trillion dollars
- They will use the money to buy U.S. Treasuries
- The dollar will be driven into the ground
- The Fed will have a solution ready to everyone’s problem
The world event we’d like to talk about today is one we’ve already mentioned, but it seems to have slipped by the American people. There was no great analysis or commentary about it in the mainstream news when it happened and it was pretty much ignored by the average person. What we’re talking about is the announcement of QE3 that happened a couple weeks ago. To recap what we talked about before, QE3 is yet another stimulus program to the American economy that is supposed to help with job creation and help the economy.
Since QE1, QE2 and Operation Twist hasn’t helped the economy we questioned the value of the QE3 program. To once again explain what it is – it is the Federal Reserve committing to buying up 40 billion dollars worth of toxic mortgage-backed assets from the banks every month. That’s a lot of money being printed to give to bankers directly in exchange for something that’s being valued at its full-face value when it was produced years ago.
Bankers should take the money and invest it into the economy by making loans, but they won’t. That’s how QE3 could help the economy but it’s not going to happen. Here’s what we see will happen. First, what will the Fed do with all those mortgage-backed securities? It’s important to realize that the Fed will now own your home or your small business loan that’s backed by these securities. Or, shopping centers that were built and the mortgages put into mortgage-backed securities. This is not just properties that are in foreclosure, it’s all of them…all mortgaged homes, shopping centers, commercial property, small business loans backed by a mortgage.
The Fed will own it all. What will they do with these mortgage-backed securities? Will they lock them away in their vaults? Not hardly. The Fed, although this was not disclosed to the public, will be leveraging them by applying fractal reserve banking principles to the tune of 9 to 1 and use them to hedge derivatives. So, they take something that’s falling in value and mark it to face value and multiply the value by 9 and use it to hedge positions in the derivatives market. So, that’s 40 billion dollars a month printed and given to bankers.
The mortgage-backed securities are marked at 40 billion face value and leveraged by a factor of 9. That’s now $360 billion a month the Fed can use to hedge derivatives. That means that in just 3 months or less, the Fed has printed another trillion dollars. The American taxpayer is now on the hook for another $4 trillion in debt over a year’s time.
Secondly, what will bankers do with 40 billion dollars a month? They will use the money to buy U.S. Treasuries because other countries and investors are not buying American debt. The money from the sale of Treasuries is used to pay the interest on the National debt that’s now growing faster by the day due to the “stimulus” scheme between the Fed and the bankers. This is only being done for one reason. That is to keep the dollar afloat as long as possible until the USD has been devalued so much that people can’t even survive on what they make from their jobs to pay for necessities like food and gasoline to get to work.
The dollar will be driven into the ground due to all the new paper printing. This is exactly what the Fed and international bankers want…to destroy the currency to the point where the people will be screaming for the Fed to do something to help them. And that’s when the Fed will collapse the derivatives market, bringing the entire house of cards down, finishing off the dollar.
Conveniently, the Fed will have a solution ready to everyone’s problem. A new currency. A new, worldwide New World Order currency backed by gold and silver. People will be told that this is the answer to all the economic problems and hyper-inflation happening. People will gladly agree to anything that will stop their pain so they can feed their families.
QUESTION: So the Fed is going to print 40 billion dollars per month each month indefinitely to buy mortgage-backed securities from the banks. What does that mean to the person who owns that real estate or business?
ANSWER: They now have the exposure of the Fed using their property as collateral to hedge against derivatives. If the derivatives market crashes, they have lost their property. They are making payments to a bank that no longer has their loan. The bank will say, “We’re sorry, we don’t own your loan anymore. We sold it to the Fed and they gambled it away.” If you own your property free and clear, you won’t have to worry. But if your mortgage obligation became part of a mortgage-back security instrument, the Fed can end up owning it.
QUESTION: Who has the biggest exposure to this as far as citizens go?
ANSWER: The American public, who not only has exposure by having the Fed own their property, but is also on the hook for all the additional debt incurred by the Fed printing 40 billion dollars each month and giving it to bankers under the guise of “stimulating” the economy.
QUESTION: What else will this additional printing of money and then buying up Treasuries affect?
ANSWER: Now that it has a built-in buyer for Treasuries, the Government will keep spending and incurring more debt at breakneck speed.
QUESTION: When will this scheme implode upon itself?
ANSWER: The Fed said they will buy up 40 billion dollars worth of mortgage-backed securities for as long as necessary. Once the dollar has been devalued and inflation is rampant, it will then be when the Fed will crash the derivatives markets around the world. This charade will be able to be kept up for a couple of years before this happens.
QUESTION: What will be the things of value left?
ANSWER: The new currency will be backed by gold and silver. As inflation sets in, gold may double or more from where it’s at now and silver will triple or more. You will see gold and silver rising steadily over the next 2 – 3 years.
QUESTION: Will precious metals be confiscated by the government?
ANSWER: It would be tough to recall gold and practically impossible to recall silver because it has many uses. With so many people holding gold while the dollar declines, there wouldn’t be enough money to buy people’s gold without printing massive amounts more.
QUESTION: What should readers take away from this message today?
ANSWER: That they should be ashamed of not knowing the ulterior motives of international bankers and the Fed and speaking out.
QUESTION: Why is this information timely?
ANSWER: This information is timely because the announcement of QE3 was kind of a boring story that people expected and were told that it was to help create jobs and stimulate the economy. How could that be a bad thing.
QUESTION: How can readers best apply this information to their life right now?
ANSWER: They must realize that the economies of the world are a huge Ponzi scheme that has continued for decades and everything is now being done to uphold the fragile illusion.
CONCLUSION: It’s been said that 87% of the population gets all their news from the mainstream media. What’s worse is that they believe what they are told. Like QE 3 is going to be good for jobs and will stimulate the economy. Didn’t people remember this is what they were told about QE 1 and 2? People are easily fooled and misdirected. It would be hard to sell a plan that said, “We’re going to print 40 billion dollars each month and give it to bankers so they can buy safe investments like Treasuries. Oh, and we’re going to get your property in return for giving them that money. Then, we’re going to gamble those mortgage-backed securities into the derivatives markets and you could lose your property and also be on the hook for all the money we printed to give to the bankers. How does that sound?” People blindly believe and accept without questioning. The 13% who do question and do not blindly accept everything they are told are called conspiracy theory kooks. Shut off your TV and open your eyes to what’s happening to you. You are being herded into the giant squeeze chute and when you come out on the other end they’ll be a banker there waiting to clunk you over the head.