Perhaps I should start with a disclaimer of sorts. Yes, I realize that the
people working at the Federal Reserve, as well as the other central banks
around the world, are just people. Like the rest of us, they have egos,
fears, worries, hopes, and dreams. I'm sure pretty much all of them go home
each night believing they are basically good and caring individuals, doing
important work.
But they're destroying America. They might have good intentions, but
they are working with bad models. Ones that lead to truly horrible outcomes.
One of the chief failings of central banks is that they are slaves to an
impossible idea; the notion that humans are free to pursue perpetual
exponential economic growth on a finite planet. To be more specific:
central banks are actually in the business of promoting perpetual exponential
growth of debt.
But since growth in credit drives growth in consumption, the two are
concepts are so intimately linked as to be indistinguishable from each
other. They both rest upon an impossibility. Central banks are in
the business of sustaining the unsustainable which is, of course, an
impossible job.
I can only guess at the amount of emotional energy required to maintain the
integrity of the edifice of self-delusion necessary to go home from a central
banking job feeling OK about oneself and one’s role in the world. It
must be immense.
I rather imagine it’s not unlike the key positions of leadership at Easter
Island around the time the last trees were being felled and the last stone
heads were being erected. “This is what we do,” they probably
said to each other and their followers. “This is what we’ve always
done. Pay no attention to those few crackpot haters who warn that in
pursuing our way of life we're instead destroying it.”
The most compassion I can drum up for central bankers right now is to
observe that they really do have an impossible job; and their training has
been simply too narrow and dogmatic for them to detect the gaping, obvious
flaws in their world views. They never studied energy resource issues.
Nor did they have to take any behavioral psychology classes that would have
explained to them how deeply unfair economic practices are socially corrosive.
Nor any history classes that would expose how such actions proved ruinous
when they were applied in previous societies.
But here we are. The fact that the central bankers are either accidentally
ignorant or purposely too lazy to explore the wider world of ideas is not one
you can ignore any longer. Real consequences are coming and there’s no
ducking them. We’re
all in this big canoe of life together and the Fed and our political officials
are exhorting us to paddle faster towards the roaring falls ahead.
You need to understand this. If you want to have any chance of navigating
the future successfully, you have to understand what they are doing, how they
are doing it, and why it will fail. If you don't take the time to sort
out the mechanisms and implications...well, good luck. You’re going to
need it.
For those who prefer to rest their future prospects on Knowing
instead of (misplaced) Hoping, read on.
How The Fed Gives Billions Of US Taxpayer Money To Foreign Banks
Out of many truly maddening sins committed by the Fed, perhaps the most
glaring of late is its practice of handing billions and billions of dollars
of US taxpayer money to big foreign banks.
I explain the process in this short video:
The summary of the video is this: the Fed is now paying interest on so-called
‘excess reserves’ held at the Fed. Those 'excess reserves' include a huge
chunk of money held there by foreign banks who are only too happy to receive
1% on their holdings from the Fed given that their own central banks are
paying 0%, or even negative rates.
The money that the Fed pays these foreign banks is deducted from the
amount remitted to the US Treasury at the end of each fiscal year.
It’s this simple: US foreign banks are being paid billions of US taxpayer
dollars and not one single person in the US got to vote for or approve of
that action.
Let me repeat that: billions and billions of US taxpayer money is
being sent to boost the profits of foreign banks. And
there’s not a single thing a voting citizen can do about it.
The decision to do this has been made unilaterally by unelected people for
reasons they are under no obligation to either share or even have audited by
the public. I wonder if Detroit wouldn’t mind getting several billion
dollars to use however it wishes, courtesy of the Federal Reserve? Or
the permaculture movement? Or jobs training programs?
I’m 100% certain any of these -- or a thousand other candidates -- would
be a better use than handing foreign big banks more US taxpayer money.
What The Heck Else Is The Fed Up To?
I'm going to guess that very few of you were aware of the Fed's
multi-billion annual giveaway to foreign banks before you watch the video
above. If you're like me, once you learned what's going on, it's hard not to
start wondering: What the heck else is the Fed doing that I don't know
about?
We here at PeakProsperity.com are particularly concerned about closely
monitoring our central bank's next actions, as we believe their policies are
creating the greatest wealth transfer of all time -- from the hard-earned
savings of the public, and into the pockets of an elite few. (More on our
conclusions can be read here).
As I said above, if you want to have any chance of navigating the future
successfully, you have to understand what they are doing and how they are
doing it.
Which is why PeakProsperity.com is producing the upcoming webinar, The
End of Money, which will bring together David Stockman, Axel Merk, G.
Edward Griffin -- experts on the Federal Reserve, global currencies and
financial markets. During this 3-hour event, you'll hear
their latest intelligence and forecasts and be able to ask each speaker
questions directly. It all takes place on June 7th, and those interested can learn
more about the webinar here.
But, even before the webinar's revelations, there's plenty of worrisome
recent activity by the Fed you need to be aware of, right now.
In Part 2: Understanding The Fed's Endgame Is Key To
Protecting Your Wealth, we reveal the additional clandestine steps the
Fed is performing in the shadows to separate the American people from their
hard-earned wealth, and place it in the pockets of the bankers and their
cronies. In most instances, it's a case of doing exactly the opposite of what
it is publicly promising.
As with the above video, very, very few people are aware of what the Fed
is truly up to. But it's critical we learn, as the knowledge we gain
explains a lot about both the failure of today's bubblicious asset
prices to sell off, and about just how worried the Fed actually is about
draining cash from the financial markets lest it create a cascading meltdown.
It's only by developing an understanding of the endgame currently in play
that the concerned investor can make informed choices for protecting their wealth.
Click here to read the report (free executive
summary, enrollment required
for full access)
