Bernanke's latest desperate article gets completely destroyed.

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The Fed is a fraud!

The Federal Reserve Becomes the ‘Buyer of Last Resort’

November 29, 2009 – While the debate continues whether inflation or deflation will be the dollar’s eventual fate, the Federal Reserve is pursuing a pernicious policy that is insidiously debasing the dollar. This policy has generally been met with indifference, if it has even been noticed at all.

The inflation/deflation debate focuses only on the ‘quantity’ of dollars and completely fails to address an equally important monetary facet, the ‘quality’ of the dollar. The Federal Reserve is debasing the dollar by purchasing inferior assets of poor quality. These assets are mortgage-backed securities issued by federal agencies like the insolvent and for all practical purposes bankrupt, Fannie Mae.

These are assets neither the banks nor other investors want. If there was a demand for these assets, the Federal Reserve would not need to buy them. Instead of acting in its historical role as the ‘lender of last resort’, the Federal Reserve has on its own expanded its mandate to become the ‘buyer of last resort’.

By purchasing mortgage-backed securities, the Federal Reserve is debasing the dollar. Just how pervasive – and therefore serious – this debasement has become is apparent from the following chart prepared by BusinessInsider.com.

(SEE THE GRAPH AT LINK!)

According to its latest report, the Federal Reserve now owns over $1 trillion of mortgage-backed securities, which is 45.6% of all assets owned by it. One year ago mortgage-backed securities were only 0.6% of the Federal Reserve’s total assets.

The Federal Reserve is very highly leveraged, much more than most banks. It is carrying $2,157.0 billion of debt on $52.8 billion of capital, giving it a leverage of 40.8-times more debt than capital. The mortgage-backed securities it owns are 19-times greater than the Federal Reserve’s capital, meaning that if the true value of these assets is less than 5.3% of their book value, the Federal Reserve’s capital is depleted, effectively making it another insolvent institution.

More:

http://www.fgmr.com/federal-reserve-buying-mortgage-backed-s...

blaming a 'strawman' for the Central bankers who 'front' them. Its the Federal Reserve Act itself that ought to be seriously looked at here, not Bernake. As anyone can see their whole damn 'communistic system' is a black hole and it would have to be because it is attempting to 'harness' a free market.

Problem is, their whole damn 'fake' economy is parasitical and monopolistic with a handful of people 'at the top' pretending they are 'the invisible hand', only they are 'manipulating' things and NOT 'allowing' the market to do what it naturally needs to do according to the 'intelligence' of needs and supplies.

I wouldn't get all bent outta shape with Bernake. I would put much more examination and study into the 'charter' that Congress supposedly 'transferred' to the Fed despite not having the actual power or provision to do so. So the whole damn thing is completely illegal, 'irrational', but mostly immoral and of course, criminal racketeering!!!

http://www.mngop54b.org/

http://www.mnlg.org

http://www.therootsofchange.com

http://www.cc2009.us

He will be just another little piece of history.

Healthnut4freedom

"Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge Him, and He shall direct thy paths." Proverbs 3:5,6

Debra Medina for Texas Governor 2010!

Rand Paul for US Senate in Kentucky!

Ron Paul 2012, Join or Die!

DONT TREAD ON ME

AN APPEAL TO HEAVEN - WASHINGTON'S CRUISERS

you're goin down.

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"When I despair, I remember that all through history, the ways of truth and love have always won. There have been tyrants and murderers and, for a time, they can seem invincible, but in the end they always fall. Think of it... always."
~ Mahatma Ghandi

I love it!

...

The Last Hope Trader
Forensic Trading For Times of High Crime

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"Blessed are the peacemakers, they shall be called the children of God." - Matthew 5:9

My liberty-minded home base of thought:

www.ponderthis.net

Thanks for the post!