tl;dr
- COVID-19 is being used as an excuse to generate trillions of dollars in profit for the private shareholders of the Federal Reserve and other central banks around the world
- YOUR money is NOT in the bank like you think it is
- The “economic disaster” is not an unfortunate side-effect of the response to COVID-19, it is the intended effect
- You were bribed with your own money to gain compliance
This is not an accident
Economic disaster has been on the horizon for a long time. COVID-19 is simply an opportunistic scapegoat to blame for the upcoming massive depression, as well as an excuse to push through an otherwise blatantly obvious wealth grab by private banks.
And by private banks, I am referring to the Federal Reserve and its secret shareholder banks, which profit directly from money they invent out of thin air.
Let’s look at the actions taken by the Federal Reserve since the beginning of the COVID-19 “emergency” in the United States:
- March 3 — An emergency 0.5 percentage point interest rate cut.
- March 15 — Another 1 percentage point rate cut, taking the Fed’s benchmark for short-term lending down to near zero.
- March 15 — At the same time as the second rate cut, the Fed lowered the rate for banks to borrow at the discount window by 1.5 percentage points and cut the reserve requirement ratio for banks to zero.
- March 17 — In the first of a slew of measures aimed at keeping credit flowing through the financial system, the Fed said it would start buying commercial paper, or the short-term unsecured debt that businesses rely on for operational cash.
- March 18 — Another facility providing credit to keep money markets functioning properly.
- March 19 — A new operation focused on currency swaps aimed at other institutions in need of dollar-denominated assets.
- March 20 — An operation headed by the Boston Fed to buy municipal debt.
- March 23 — An expansion of the Fed’s originally announced asset purchases, which were supposed to max out at $700 billion but now are unlimited depending on the need to support markets and the economy. The purchases already have expanded the Fed’s holdings on its balance sheet by more than $2 trillion.
- March 23 — In addition to the next leg of quantitative easing, the Fed also announced a $300 billion credit program for businesses and consumers. The initiatives include two credit facilities for large employers, an expanded Term Asset-Banked Loan Facility for businesses and consumers through the Small Business Administration, and an expanded money market facility that includes municipal debt and certificates of deposits.
- April 6 — An announcement that the Fed will provide support to the Treasury’s Payment Protection Program aimed at incentivizing businesses not to lay off employees during the coronavirus-induced shutdown.
- April 8 — A modification for the asset restriction it has placed on scandal-plagued Wells Fargo to allow the third-biggest U.S. bank to participate in the business lending programs.
- April 9 — The coup de grace, a $2.3 trillion lending program that will extend credit to banks that issue PPP loans, purchase up to $600 billion in loans issued through the Main Street program to medium-sized firms. The moves also involve secondary corporate credit facilities that will allow the Fed to buy corporate bonds from “fallen angels” that have slid into downgrades, and a $500 billion program to buy bonds from state and municipal governments.
*Source:
Let’s look a little closer at a few key items and break down what they mean:
The Federal Reserve cut the reserve requirement ratio for banks to ZERO
Typically, banks are required to maintain 10% of their total balance in “reserve” at the end of each day. Meaning, of all the money DEPOSITED in banks (the deposits of bank customers. YOUR money) the bank only has to keep 10% IN THE BANK. The other 90% can be loaned out or invested for profit.
By lowering that requirement to 0%, this means that banks have NO requirement to keep ANY money in the bank for YOU to withdraw.
*Source:
To put it even more bluntly:
The banks don’t have your money. They gave it all away.
Obviously, lowering the requirement doesn’t mean they have all DONE this, but for those of you that were taught about “bank runs” during economic crises in the past, this means that there’s nothing to run to. There’s no money at the banks.
Most people these days live largely on digital money (credit cards, debit cards, checks, Venmo, etc.), and this is the ultimate goal of the world’s banks. A full transition to a digital currency that THEY control. More on that in another topic. Back to COVID-19…
The Federal Reserve is buying commercial debt
The Federal Reserve has the “power of the printing press”, meaning it has been given sole permission by the United States federal government to create currency. These days, that rarely involves ACTUALLY creating the paper dollars you think of as “money”.
For the Federal Reserve, “printing money” is as simple as typing numbers into a computer.
Imagine you could log into your bank account and simply edit your bank balance to add an extra million dollars. Sounds crazy?
Yeah, they can do that.
And you know what is MORE crazy? Despite the name, the Federal Reserve is not a government entity. IT IS A PRIVATE BANK. A business. That is allowed to invent money for itself and buy things with it.
What kinds of things? In this instance, when they say “debt”, they are referring to several kinds of debt. “Unsecured debt” is like credit card debt. It’s money that is given out without collateral, which is something of actual VALUE to back it up.
When you buy a car or a house, those items are collateral against the loan you take out. If you don’t pay the loan, they take the car or the house to recover the money owed.
So for some businesses, buying their debt means that if someone OWES that business money, the Federal Reserve has just invented new money to give that business, and now those debtors owe the Federal Reserve that money. Including the interest owed.
Additionally, the Federal Reserve buys “collateralized debt obligations”. Meaning they also buy debt that is “secured” by the stuff that was purchased with the loaned money.
The largest category of debt purchased by the Federal Reserve is mortgage-backed securities. That’s a fancy name for a bunch of mortgages wrapped up as an investment.
Currently, the Federal Reserve holds upwards of $1.7 TRILLION dollars worth of mortgages.
*Source:
https://www.investopedia.com/articles/economics/10/understanding-the-fed-balance-sheet.asp
This makes the Federal Reserve the largest holder of real estate in the world. With money it simply typed into its own bank account.
The Federal Reserve is buying your future taxes
By adding municipal and state bond buying to the existing federal bond buying program, the Federal Reserve now has a claim to TRILLIONS of dollars of your future taxes.
*Source:
https://www.nytimes.com/2020/03/23/business/economy/coronavirus-fed-bond-buying.html
“How do bonds equal taxes?” you might be wondering. Bonds are simply IOUs given out by the government. If you give $20 to the government for a bond, they promise to pay you back WITH INTEREST in the future.
So how does the government pay for things? With tax money! The government doesn’t actually EARN money or PRODUCE anything of value. It relies on private industry to do that, and then taxes everything it can. Including YOU.
So to break this down:
- The Federal Reserve invents money and gives it to itself
- The Federal Reserve uses that invented money to buy bonds
- YOU pay back the Federal Reserve WITH INTEREST through taxation
- The private shareholders of the Federal Reserve profit from the money paid back
Starting to get the picture?
Your consent only cost $1,200
Of the $2.3 trillion in the “stimulus” package passed by the federal government, only $300 billion went to the infamous “stimulus checks” that were given to citizens. That’s 13%.
If you include unemployment and “other” payments, it’s still only $600 billion, or about 25%.
That means that 75% of the stimulus package (paid for by YOUR future taxes, and paid to the Federal Reserve who funded it) went directly into the pockets of government bureaucrats, or was extended as LOANS to businesses.
*Source:
https://www.visualcapitalist.com/the-anatomy-of-the-2-trillion-covid-19-stimulus-bill/
And YOUR future taxes will be required to pay the bill.
Legalized Fraud and Theft
What all of this means when you add it up is that the Federal Reserve, a private bank that pays a mandatory dividend to its secret shareholders, has been given permission to INVENT over $6 TRILLION, that it has then turned around and loaned out to be PAID BACK WITH INTEREST, or simply used to buy up houses and other real estate through collateralized debt.
And the United States taxpayer (of which the government is NOT a member) is going to be the one forced to pay every single dime.
And this is just the United States. Central banks all over the world are taking very similar actions in response to this “emergency”.
So when someone asks you, “Why would anyone intentionally try to make COVID-19 seems worse than it actually is, and cause all of this damage?”
You can now tell them you know of a few trillion reasons…
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