Monetary Looting

The United States has historically bragged about its free and transparent markets. But what the Fed is doing today is pulling a dark curtain around the financing of this so-called free and transparent market. The public has no idea which Wall Street firms have received this $3 trillion or why they can’t borrow it elsewhere. This kind of obfuscation by the Federal Reserve could actually stimulate distrust in the U.S. banking system. The Fed admitted as much in its most recent Federal Open Market Committee (FOMC) minutes, writing that participation in the Fed’s loan program “could become stigmatized.”

Wall Street on Parade: Is the Fed’s $3 Trillion in Loans to Trading Houses on Wall Street Legal?

The business model of Wall Street is fraud.
– Bernie Sanders

Financial services as currently structured is the most pernicious, predatory and corrupt industry on earth. Moreover, it’s the deliberately complex and opaque nature of the industry which then limits public debate when some problem arises and governments and central banks are called upon to take emergency measures to “save the system,” which is just a euphemism for enormous sums of corporate welfare being funneled to people and institutions who couldn’t survive otherwise.

It is systemic looting on a massive scale and the primary patrons of this ongoing and seemingly endless scheme are central banks. In the U.S. this means the Federal Reserve, which recently came back into the “market” with enormous new interventions in both the repo market and via renewed balance sheet expansion. I’ve read many of the smart takes on the repo crisis and still don’t feel confident I know precisely what’s going on. This is intentional.

One of the main reasons big finance is able to pull off scam after scam in plain sight relates to the complexity, opacity and esoteric jargon associated with the industry. Repo is a perfect example. The market had a spasm in September and the Fed immediately rushed in with billions to bring the rate down without offering any transparency or a credible explanation of what was going on. Meanwhile, as the crisis continued over subsequent months and the central bank response grew larger and larger, we actually seem to be learning less with each passing day.

Instead of providing the public with the transparency it deserves, Fed officials run around pretending to be financial surgeons called in to perform an unexpected emergency operation on a patient after a freak accident. In reality, central banks are merely pumping billions into an already dead body while enriching connected and powerful individuals and institutions in the process. They know exactly what they’re doing and we need to stop pretending otherwise.

While I’m grateful to those who’ve spent time trying to thoughtfully explain the mechanics of the repo crisis and why it happened, I think that’s a sideshow at this point since nobody who really knows what’s going on is talking. Instead, we should focus on the absurd and unconscionable lack of transparency with regard to Federal Reserve actions. As far as I know, we have no idea which parties are taking up this expanded central bank funding. Think about how criminally insane that is. We have no idea if it’s driven by a troubled institution like Deutsche Bank, hedge funds with over-leveraged trades, treasury issuance, a combination of these factors, or something else.

We don’t know because they don’t want us to know, and they don’t want us to know because they don’t want the public thinking or talking about it. It’s at times like these when the totalitarian nature of central banking comes into crystal clear focus. What we have is government via unelected, unaccountable bankers. It’s the opposite of self-government, and understanding this simple fact blows apart all the myths about our so-called democracy and freedom. Nothing of the sort exists in reality, and when push comes to shove, you’re just a peasant living in an imperial oligarchy.

This should be the real takeaway from the Fed’s recent actions both in the repo market and via its rapid balance sheet expansion. The public’s not allowed to know anything about what’s really happening, and similar to the post-financial crisis period of a decade ago, the central bank comes in and conducts significant public policy to the tune of hundreds of billions of dollars with zero public debate.

How is it that we’re accepting this? Why isn’t the inequality obsessed left commenting more aggressively on the central bank mechanism of upward wealth transfer, which is precisely what’s been happening for so long? Why push for a wealth tax while leaving the primary instrument of upward wealth transfer (central banking) completely unchecked?

It’d be one thing if the Fed came out and detailed exactly what the problem is and told us specifically who’s using the funds and why. Then we could actually have a conversation about whether this is appropriate or, more likely, a gigantic moral hazard financially rewarding various unscrupulous industry players.

Don’t think for a moment that huge sums of money aren’t being made from these Fed actions. When the spigots come on out of nowhere to the tune of hundreds of billions of dollars someone is benefitting tremendously and it’s not you.

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– Michael Krieger

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20 thoughts on “Monetary Looting”

  1. As a long time reader of Pam and Russ Martens’, Wall Street on Parade, it is great to see you open your article with their work!

    Michael, you ask the question, “How is it that we’re accepting this?”

    I would answer that we are accepting this by the fact that the overwhelming majority of voters cast their ballots for the two party duopoly in Congress every voting cycle that is an even numbered year.

    The Federal Reserve Act, which established the Fed in 1913, was set with a twenty year charter. This was the same length of time that Congress gave to the First Bank of the United States in 1791, and then in 1816 to the Second Bank of the United States. Congress did not renew the charters for both of these banks.

    On 25 February 1927, Congress passed the McFadden Act. This gave the Fed immortality and took away the need for Congress to renew the charter in 1933. But like a horror film, there is a silver bullet or a wooden stake that can be driven through the heart to kill the beast. Unfortunately, it will take an Act of Congress to “dissolve” the Fed, “… or until forfeiture of franchise for violation of law.”

    I would urge readers to look at page 11 of the Act to see for themselves how the Fed will continue on. That is unless we voters change Congress from only consisting of Democrats and Republicans. Otherwise, there is no hope as Congress consists of bought and paid for puppets who do the bidding of Military-Financial-Surveillance Complex.

    Thank you Mr Krieger, and Happy Holidays to all.

    Reply
  2. This article points fingers in so many directions it is not funny. From the very nature of money being created as interest bearing debt all owed to a select group of people called bankers, that have been given the right to counterfeit and take ownership over almost all the nations of this world money supply. To the criminal actions of this money creation owning class now engaged in the final looting act as they can see their greed and lust for power and control will yet again bring down a totally flawed monetary system, taking everything in its path with it. The blame is to placed elsewhere, Brexit, populous political parties/platforms. Anywhere but where that blame should be squarely placed. These owners of OUR money supply do plan ahead. With each new reset, like Bretton Woods I and II, they further centralize their authority by further extending their control over the omnipotent power of the creation of money. The fact that these lords of finance have declared a financial warfare on the democracy loving peoples of the west and elsewhere should come as no surprise to any student of where these monsters wish to take the entire world population. This under their multi polar NWO. China, India and Russia are not the enemy, they are the model and the American Congress is a redundant and superfluous institution foisted as a gross misrepresentation of republican democracy. The only way forward is for the people to quickly educate themselves on what is being done and then to act locally, perhaps creating their own debt a
    how money presently works: https://www.youtube.com/watch?v=2nBPN-MKefA

    how bankers and banks have decreed total immunity from criminal prosecution and are now engaged in the looting phase:

    https://www.youtube.com/watch?v=WbtjcCDGKnQ&list=PLQHblmvsYn0lq_W6G8S96pccZ_U68vtyb&index=7&t=2s

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  3. Totally agree that the bankers are by far the biggest villains in our world today. We’re ignoring them because we’re in the Age of Outrage™ and public anger is directed elsewhere.

    For red teamers, you’re supposed to be upset at Muslims, the Chinese, women, abortion, Millennials, and of course the blue team. The conspiratorial nature of Wall St does bother them some, but a continuous stream of news keeps their anger stoked at other targets.

    For blue teamers, they are supposed to be fixated on a hierarchy of victimhood. There are a million ways to play this, but the main ones involve race, gender, age, orientation, religion, linguistics, etc. Red teamers are trying to oppress all of these groups, so focus on them (and the Russians, for some reason). The inequality bankers represent does grate, but they’re a tough nut to crack and it’s easier to help all the other “unprivileged” people now!

    There are wealthier red/blue teamers who are sometimes a bit smarter than this, so they are sold on the idea that all of this debt is fine and things will magically work out in the end. After all, if the whole game collapses, they would be complicit and that would be too awful to imagine.

    So it’s not that Americans like bankers, it’s that they are strongly encouraged 24/7 to dislike each other more. It’s dumb, but it works.

    Reply
    • Yes, money lending at interest has been a scourge on human kind since its inception. Now with the massive computing power available bankers can inject digits wherever and whenever needed and no one is the wiser as no true accounting is available. This is why the collapse that should have already taken place never comes and will not until these owners of the human economy give the nod. What appears as markets are in fact computer generated markets with objectivity such as price discovery being a total illusion from resource extraction to the final sale of a finished product….or the forerunner of a true Technocracy. This while they keep the present system limping along as they are readying their next monetary iteration to be slipped into place seamlessly on the heels of the departing paradigm as the solution to the old unworkable. That old unworkable that in truth has worked very well for the financial predator class.

      Money can come in any form but the secret is that it must be injected into the human economy debt and interest free and issued in the correct Quantity so that inflation or deflationary forces do not flood the system. Then money will be the benefactor of humanity allowing the people to ;lead a virtuous life instead of the opposite which is what we now have. If you want to accumulate wealth in our present absurd reality, fake scarcity and starvation in the midst of abundance, then you have check your morals at the starting position and be prepared to cut throats in clawing you way upward….

  4. the tide is washing away the foundation of lies, and the house of cards is beginning to fall! As much as I want peace I think things are going to turn violent. The oligarchs and anyone subscribing to this current madness is underestimating the fury that is building.

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  5. We’re not allowed to know who owns the Federal Reserve banks – it’s classified information. That’s because the Fed is owned by the investment bankers who formed it; they print money and lend it to themselves. In addition to the value they steal as counterfeiters, the interest they pay on the loans as investment bankers goes back to them.

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  6. Excellent expose Michael, thank you. But is anyone listening or do they even care? Your Tweets and mine gather little notice and although I have emailed hundreds of PDFs of my book, ‘The Financial Jigsaw,’ the response in quantity has been small, but the quality is definitely cloud 9.

    It is not until the masses feel a real pinch, like shortage of food or switching of their iPhone’s or TVs, will they start to take notice. As long as the FED can kick the can without consequences, our efforts will remain screaming to those without ears.

    All predicted of course in the Bible, so why should I be surprised? I will continue sending out my work – a free PDF is available on request to: [email protected] and plan to publish early next year through Lulu as no publisher will touch it with a barge pole – truth to power and all that.

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  7. A vast river of wealth flows continually toward those that sit atop the banking pyramid. With this enormous power they are able to rule in obscurity, like Zeus of old, creating and destroying nations, installing regimes, starting and ending wars, etc. Once you give them the keys to the castle your fate is sealed.

    “Give me control of a nation’s money supply and I care not who makes it’s laws” – Rothschild

    “We will have a world government whether you like it or not. The only question is whether that government will be achieved by conquest or consent.” – Banker Paul Warburg, Feb 15, 1950 testifies before US Senate

    “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.” – Lord Acton

    “Banking was conceived in iniquity, and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again.” – Sir Josiah Stamp, Former President of the Bank of England

    “Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.” – William Lyon Mackenzie King

    “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency first by inflation then by deflation the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.” – Thomas Jefferson

    “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte

    Reply
    • So, we have established that the banksters are in control – now what? Will it be revolution with hanging from lampposts or a civilised court of inquisition parceling punishments according to their wrongs?

      Or perhaps, forgiveness according to the court of reconciliation per South Africa, Let bygones be bygones and we all live happily ever after.

      I think not; civil war it will be and the outcome is unpredictable. Be prepared for the last battle and the beginning of the final war.

    • I think it will be worse than civil war. Attempting to dislodge the bankers may look more like when France kicked out the monarchs and the church, the church being the true power behind the throne. What proceeded was all of Europe turning on the rebellious french state in order to reverse the revolution.

      Plus, it’s not as easy as the “End the Fed” slogan seems to imply. Take out the battery and gas tank from your car, then see if pushing on the gas pedal will get you anywhere. Without the Fed the US would quickly become just another banana republic, but with nuclear warheads.

  8. When the public is ripped off for the last time , & they realize the unfunded liabilities have consumed their “ sacred pensions “ … perhaps then will we see real anger towards those who have treated the public as “ MUSHROOMS “ ( kept in the dark & fed bullshit) .
    Only then , when confidence in corrupt governments, in bed with evil bankers will hopefully, spur dormancy of the general public into action .
    Until then many of us simply watch the circus, that is “ national news “ , all the while ,coming to terms with the fact that , there is no nut under …. ANY OF THE THREE SHELL’S .

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  9. “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

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    • Hi Steve,
      My take on this is that it was true enough then when Nathan Rothschild said it (after the battle of Waterloo if memory serves me right). But now, the way banks create new money by making loans is readily available on the BoE website and the Bundesbank too, as well as many others I guess.

      The thing is that the financial system has got out of whack with the real energy-based system that underlies all economic activity.
      https://surplusenergyeconomics.wordpress.com/

      The current system worked well enough when the economy had surplus energy available to expand and grow as has been the case for the last 100 years or so thanks to the incredible energy concentration to be found in fossil fuels. One gallon of diesel (12.5Kwh) is equivalent to 125 humans (100watts/hr) in energy output. Imagine how many people it would take to push your car for 50 miles (my Ford Fiesta diesel does 50mpg).

      We have now reached the limit of Energy Returned on Energy Invested (EROEI) in the western world and are now experiencing de-growth. I have written a book about all this and a free PDF is available on request to [email protected]. Or read Dr Tim Morgan’s book:
      https://www.amazon.co.uk/Life-After-Growth-global-economy-ebook/dp/B00F3D8M2C

  10. “Tension strategy exists for the manipulation and control of public opinion: fear, propaganda, disinformation, psychological warfare, agents provocateurs … and false flag terrorist actions. “

    https://www.zerohedge.com/geopolitical/operation-gladio-story-conspiracy

    The quote from the above article that was on Zero Hedge today is as much applicable to the articles intended revelation of the nefarious hand of the CIA in post war Europe as it could accurately be applied to this article and the usurious tactics of all of central bankings history. Compiled with the fact that the general public (myself and you) has been socially engineered over the course of time with millions of hours and trillions of dollars spent, creating what we witness today of a public whom is so confused, irresponsible, irrational, victimized – “should I go on”, I’ll leave the rest up to you.
    The depths to which the hands of the masters of puppets currently prevail over the masses even to those of us trying to understand it is mind boggling. In a positive end, and thanks to Liberty Blitzkrieg, you and me and all the many people awakening to our enslavement, the movement of fact and truth is rising to the critical mass needed for the revolutionary consciousness shift. Perseverance to prevail over our suppression!!!

    Reply

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