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Why QE2 Failed: The Money All Went Offshore

Why QE2 Failed: The Money All Went Offshore

by Ellen Brown

On June 30, QE2 ended with a whimper. The Fed’s second round of “quantitative easing” involved $600 billion created with a computer keystroke for the purchase of long-term government bonds. But the government never actually got the money, which went straight into the reserve accounts of banks, where it still sits today. Worse, it went into the reserve accounts of FOREIGN banks, on which the Federal Reserve is now paying 0.25% interest.

Before QE2 there was QE1, in which the Fed bought $1.25 trillion in mortgage-backed securities from the banks. This money too remains in bank reserve accounts collecting interest and dust. The Fed reports that the accumulated excess reserves of depository institutions now total nearly $1.6 trillion.

Interestingly, $1.6 trillion is also the size of the federal deficit – a deficit so large that some members of Congress are threatening to force a default on the national debt if it isn’t corrected soon.

read more http://www.globalresearch.ca/index.php?context=va&aid=25566

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QE2 failed (assuming we're

QE2 failed (assuming we're talking about failing to create increased prosperity, not simply rob others for the benefit of bankster trash and those in their immediate vicinity) simply because printing money generates no additional wealth. If "America" was destitute before QE2, putting George Washington's face on some paper, does not make it any less destitute.

Where the money "went" etc., is utterly irrelevant from the perspective of how much better off "America" is because of QE2. It would have been even worse if the money all went to treasuries, as the author seem to long for, since the single institution on the planet least deserving of any additional funds is the US government.

Until people realize that the government itself, not someone "evil and greedy" who is "mean to the government", is the problem, period, they'll continue to fall for these kinds of hack jobs.

Our constitution for the united states of america

calls for death by hanging to anyone who issues fiat currency.

A fool and his money are soon parted.

Too Bad That Constitution Expired In 1859, It Didn't Suck

The 1871 Constitution sucks, The 1933 New Deal sucks eggs. The 1999 Constitution, well, they feel up your private parts and say "it's reasonable". What more do you need to know.

We are not operating under that particular Constitution where we get to hang those who sell us out to foreigners (Thirteenth Article of Amendment) or where counterfeiters are hung,

Ancient history, nostalgia.

America fell back into The Bank of England's hands generations ago. Too bad our elders didn't tell us. I think my Grandfather understood what had happened but he was too ashamed to tell me.
He graduated high school in 1929. By then it was too late. The Fed had already worked it's magic and set America up for a fall.

I still think it is good to point out to people that the original Constitution and Coinage Acts (which no longer applies to today's private Corp. U.S.) did indeed have serious penalties for counterfeiting.

A corporation can issue or borrow a fiat currency. The Republic cannot, that is why Wilson abdicated from the Republic Presidency and took the Helm of Corp. U.S. It was a communist/progressive/Fabian socialist takeover.

There is no Republic government to hang anybody. Especially not the crooks at Corp. U. S. It is a private foreign corporation. What does that have to with our abandoned government?

Absolutely nothing.

The Oracle

Qe2 Did Not Fail! It Was Done To Keep The Banks Rolling in Dough

The money was printed and sent offshore, Qe2 was a complete success!

I explained this in another comment. The Fed is essentially just paying the interest on existing loans by creating new currency to give the banks. The banks can't get interest payments unless the money supply constantly expands to create new currency to pay the interest on the loans. So the purpose of QE2 was to just GIVE the banks the interest directly.

So simple.

If the people refuse to create new debt based currency to pay the bankers interest (by going further into debt) then the fed will just create the new currency and give it to their member banks.

The currency to pay the interest on a loan is not created by the loan so more and more currency has to be created later to pay the interest.

That Ponzi scheme collapsed in 2008, so the fed itself is just creating the new currency and blatantly passing it out to their friends, flat out counterfeiting.

The fact that the 1.6 trillion is exactly the amount as is the new national debt is not a coincidence.
Because the people won't sign themselves any further into debt to pay the bankers their interest, the Fed just decided to sell the entire U.S. into bondage 1.6 trillion dollars to pay the Interest!
The U.S. Government will now be tasked with collecting the Banker's tribute collectively from America to make up for lost tribute payments on defaulting loans. They gonna get their tribute payments one way or the other. This just reveals that the entire foreign banking cartel (fed) is just a scam to extract tribute from Americans in the form of interest on fictitious loans.

Why did it all go to foreign banks? Because it is a foreign banking cartel that has been extracting tribute from America for two centuries.
So Bernanke just did his duty when private sector curency expansion failed and sent the tribute payments to his masters directly by printing new currency and giving it to his foreign banking masters.
He just printed the interest/tribute payments himself and passed them out!

Then he sold the entire U.S. Into bondage to pay his masters tribute.

Either you cough up new currency by signing yourself further into debt to pay the interest/tribute to The Crown Bankers and Rome-

Or their Central Banker here will just do it for you by prinnting more currency in your name and drop the charade that you are free. Bernanke has 309,000,000 Americans credit information on file so he can just charge the tribute payments to 309 million Americans accounts at the Fed and print the
tribute payments himself.

Caught in the act.

It doesn't get any more obvious.

The Oracle

Wrong

That's why QE2 failed so slowly. She's still taking on water and sinking the dollar to the bottom of the sea, and we're partying on the upper deck.

Inflation already happened, we just aren't feeling it, yet.

What do you think? http://consequeries.com/