The Shell Game - How the Federal Reserve is Monetizing Debt
by Chris Martenson
August 25, 2009
Snip:
Replacing private credit with public credit
Our entire monetary system, and by extension our economy, is a Ponzi economy in the sense that it really only operates well when in expansion mode. Even a slight regression triggers massive panics and disruptions that seem wholly inconsistent with the relative change, unless one understands that expansion is more or less a requirement of our type of monetary and economic system. Without expansion, the system first labors and then destroys wealth far our of proportion to the decline itself.
What fuels expansion in a debt-based money system? Why, new debt (or credit), of course! So one of the things we keep a very close eye on over here at Martenson Central, as they do at the Federal Reserve, is the rate of debt creation.
One of the big themes in the current credit bubble collapse is the extent to which private credit has been collapsing and the corresponding degree to which the Federal Reserve has been purchasing debt and the federal government has stepped up its borrowing. In essence, public debt purchases and new borrowing has attempted to plug the gap left by a shortfall in private debt purchases and borrowing.
That's the scheme right now - the Federal Reserve is creating new money out of thin air to buy debt, while the US government is creating new debt at the most fantastic pace ever seen. The attempt here is to keep aggregate debt growing fast enough to prevent the system from completely seizing up.
How are they doing? Continue here for the full report
The Dollar is in Trouble
Everyone should keep an eye on the dollar because it keeps sinking in value around the world.I'm a goldbug for 20 years now and I think people should move out of the dollar to be safe.The dollar is very fragile and could collapse very quickly.It's better to be safe than sorry.
Debt settlement is a common
Debt settlement is a common negotiation strategy though it is not right for everyone. The intent of debt settlement is a way to avoid bankruptcy. It is an honorable way to pay back your debt when you simply don't have enough money to pay it back under the original terms. Housing shortage can be a cause also of debt since you are going to rent to have another home. Debt settlement relief helps you feel good.
Remember When Grayson Asked Bernanke About Currency Swaps
I think this may have been where the questioning was headed. Recall how Benanke looked scared to death at those questions. This may be the key that unlocks a rapid currency crisis. If private foreign investors begin moving fast, like over night fast, the central banks likely could not hold the line. This is likely why China is unloading it T-Bonds as quickly, but as quietly, as posibble by acquiring real assets for them.
Stromberg, California
El Dorado
Gold....
China has most recently allowed, and is encouraging it's people to purchase Gold. Hmmmm...I wonder why? Actually most of us here, especially goldbugs already know.
The plot thickens
Debt for debt swaps, debt for equity swaps, debt for nature swaps have been going on for decades. Hey, I've got an idea! Let's audit the Fed and expose their crimes! Whose with me? Let's goooooo!!!
It is catching up to the Fed
Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine
question is, how many of us are they going to kill off to take heat away from themselves?
Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine
The R3volution requires action, not observation!!!!
wow!
Onward!
http://www.meetup.com/RP2012GrandJunctionCO
It's not just the Fed...
Remember, it is the Congress that can't control spending and who needs the Fed to continue the charade. The Fed is most certainly evil; however, our 'representative' Congress is the creator and enabler of the Federal Reserve System.
Looks like we crashed his server
Looks like we crashed his sever. Sorry, Chris! That's what happens when you write a great article!
Alternate link at Seeking Alpha
http://seekingalpha.com/article/158330-how-the-federal-reser...
great read, well researched.
great read, well researched.
"OUR entire monetary system"???
"Our entire monetary system, and by extension our economy, is a Ponzi economy in the sense that it really only operates well when in expansion mode." Chris Martenson, August 25, 2009
Speak for yourself Mr. Martenson as the term "our" does not apply to any American. Americans are paid in lawful gold and silver dollars and use them to purchase goods and services. Americans laugh at the poor fools/U.S. Citizens/chattel property/institutional units/goyim/slaves/collateral on the international debt/human resources for continuing to use debt instruments and for eroneously referring to said instruments as "dollars" or "money". You can't pay a debt with a debt.
Here's the Link for Full Article
This takes you straight to the article without having to sign in for the full report.
http://seekingalpha.com/article/158330-how-the-federal-reser...
OWNERS ?
The article is certainly correct , but it goes beyond that..The Perpetual entity has no owners ..The President nominates the dictator & the dictator confides in the President..They cut out Congress from the process....WE the People supply the funds to perpetuate their progressive agendas.Therein lies square one , taxation without representation. Prior to the TEA PARTY
Then they tax us, with representation.
Good people do Good deeds
and are no respecter of person
that was the best article
that was the best article i read in a while.
thank you for clarifying.
Fascinating and disturbing
Fascinating and disturbing exploration of the FED. All of us should read this at least once and take some mental notes.
Monetizing debt is an attempt to overturn basic economics and common sense. In the contest between Fraud and Free Market, bet on the Market.
'My country right or wrong' is like saying, 'My mother drunk or sober'. - G. K. Chesterton
David Companik serves as a REALTOR® in the Greater Houston area. As an avid Ron Paul supporter, David provides a uniquely free market perspective on the economics of real estate. Visit http://davidcompanik.com to learn more!
"The last official act of any government is to loot it"
I feel like we are in the soviet union prior to its collapse. all the oligarchs are looting this country blind.
Fed Reserve was created by whom ?
It is not voter fraud or vote tampering fraud or any public side issue, that creates fraud ..The fraud is in the nomination & candidate selection fraud, that contols the party process...Those who can raise enough funds to campagn receive the funds filtered through Corporations coming down from the FED RES. The ELITE get the funds.
Of course this is pure conjecture ..You decide.
Good people do Good deeds
and are no respecter of person
Baloney
This has been going on since 1914. Ridiculous.
Martenson NOT ONCE mentions private ownership of the fed. Just an endless folly of statistics designed to anger and confuse the reader.
Expose the men who own the fed.
Spend page upon page relating the crime and not a phrase, a word, a whisper of the criminals!
Expose the criminals and end this meaningless chronicling of their crimes.
The role of the law is to define the crime and punish the criminals thus relieving society. What does this say about Martenson ?
Come of folks, let's get out of this media control reality and learn to think for ourselves.
Unify
This Article is Too Important to be Dismissed
The article is clear, self-explanatory, well written and summarized to those who take time to read the whole article and understand it. You don't have to understand everything about monetary issues to get a gist of what he is saying.
This explains why the Fed does not want an Audit and why Geithner is saying "we don't want to go there" - because it would probably speed up the disintegration already in place if everyone knew what was happening - that the Fed has to keep the government in debt (by excessive spending) to keep the economy from collapsing and exactly what they are doing with the Foreign Central Banks to make that happen. It still cannot stand and the sooner it falls and something better rises out the ashes the better.
This article is extremely important - if you don't understand it get someone who does understand it to explain to you and then distribute it like mad. Articles like this do not need to be dismissed, these are exactly the issues we need to be educated about.
IT is a perpetual
IT is a perpetual entity..
No one owns it
IT owns us, it is a wheel.
Good people do Good deeds
and are no respecter of person
WTF?
Did you read the article?
It is self explanatory and you entirely missed the well articulated point.
END the FED before it ENDS US
END the FED before it ENDS US
it's detailed information
it's detailed information on how the fed is operating.
with it, i gain a better understanding, and instead of telling my friends and family "the fed is evil, take my word for it", I can explain.
The fed isn't on the radar of 99% of my friends or family. If I expect them to listen to me and I have some credibility, then I need to understand and convey how the fed is damaging us.
I really don't understand your post.
I will let it rest at that, as I've been on the war path for a few days, and I've got an itchy trigger finger.
Great article
n/t
This is big news...and troubling
What a fine piece of investigative journalism, Dr. Martenson reveals that the Federal Reserve "Custody" Accounts are being used in a deceptive shell game.
"The Federal Reserve has effectively been monetizing US government debt by cleverly enabling foreign central banks to swap their Agency debt for Treasury debt."
END the FED before it ENDS US
END the FED before it ENDS US
Complex, but enlightening
Stick with the article to the end. Read a second time. Truly, a private institution that may end up destroying America. As reckless as the current President and Congress are, the prize for idiocy has to go to those who in 1913 allowed the Federal Reserve, the Income Tax and the 17th Amendment to come into being.
Interesting Point
It really comes down to what you have said - a private international banking cartel is taking down the nation.
I don't think it's overstating to say that financial war is being waged against us and our treasonous government is standing on the sidelines or worse, selling us to debt slavery.
END the FED before it ENDS US
END the FED before it ENDS US
An enemy within
as we were warned.
.
.
YES but they not only create
YES but they not only create money out of thin air, that created money has a cost to the taxpayer up front which then goes to the real scam ..The funding of political candidates who go along with the policy...
Corporations are the laundramat.
They assure funding beyond the average citizen means to promote their agenda candidates. In essence they become the FED. Reserve. Passed on to their ELITE posterity..
Good people do Good deeds
and are no respecter of person
Freedom & democracy have
Freedom & democracy have left us , with the enslavement of the mind. John .Kennedy was shot for this statement , " Ask not what your Country can do for you , but rather ask what you can do for your Country"
These words are counter to our FED RESERVE financial system ..
The funds that are made from the operation of the FED RES go directly to the ELITE who push us into International Agendas.There are no secret private holdings..Only a secret scam.
International agendas & treaties surcomvent our US Constitution.
Ask your past leaders who they work for or view it in the news media..
This of course , is purely my conjecture ..You decide
They NEED healthcare for an excuse..Any one with a brain knows what follows ..How do you (monitor) preventative care ?
Good people do Good deeds
and are no respecter of person