The Federal Reserve’s Cycle of Monetary Insanity (and Treason) - Jeff Nielson
In 2008; the central bankers of the West went berserk with their monetary crimes. Interest rates were driven to near-zero. Money-printing was driven to near-infinity, as represented by the Bernanke Helicopter Drop.
As a condition for engaging in monetary policies which were more insane (i.e. more criminal) than anything ever done in our economies; the central bankers promised an immediate Exit Strategy , in early 2009: the normalization of interest rates and the normalization of money-printing. Through the middle of 2016 ; we’re still waiting.
The question, never asked by media drones, and never answered by the criminal central bankers is this. If near-zero interest rates (and now “negative” rates) along with exponential money-printing make our economies stronger, why weren’t we doing this 100 years ago? Why haven’t we always engaged in such policies, like we permanently engage in such policies now? It’s because you cannot build any economy through monetary chicanery.
Economies are built exclusively upon sound fiscal policies, and the first and most important principle of sound fiscal policy is that monetary policy can never be allowed to dominate fiscal policies . Look again at the Bernanke Helicopter Drop above. Look at all the decades (starting at the far left) when the U.S. economy was genuinely prosperous. The money supply was a flat line. Monetary policy was only a minor influence on the economy.
Now look at the decades immediately before the Bernanke Helicopter Drop, the decades immediately after the last vestige of our gold standard was assassinated by central banker, Paul Volcker . The U.S. economy began that period still somewhat healthy. However, ever since the Golden Handcuffs were removed from the central bankers, and they were free to pursue their monetary voodoo (and crimes) without restraint, their monetary policies have steadily usurped fiscal policy, and hijacked the U.S. economy.
At first, this trend was somewhat gradual, as we see by the gradually increasing slope of the curve. But (as with any exponential function) the size and scope of the Federal Reserve’s monetary “policies” exploded, to the point where this monetary insanity now totally drowns out not only all fiscal policy, but all of the fiscal fundamentals of the U.S. economy. Year after year; as the Federal Reserve’s monetary dominance of the U.S. economy grew at an exponential rate, the U.S. economy has gotten weaker and weaker – with ever more-outrageous statistical falsifications used to hide this economic cancer.
The Fed’s near-zero interest rates and excessive money-printing make the U.S. economy weaker and weaker . This is no surprise. Excessive monetary policy, in any form, always weakens economies. There has never been an exception to this principle in economic history, because it is mathematically impossible. Infinitely expanding monetary policy is just as obviously suicidal as the Keynesian doctrine of infinitely expanding debt.
This brings us to the conclusion (in the title) that the Federal Reserve’s present monetary insanity can only be a program of intentional economic treason. The Federal Reserve has promised over and over and over to raise interest rates “as soon as the economy is strong enough” to do so. However, if the Fed’s policies make the economy weaker and weaker, when will the economy be “strong enough” for the Fed to keep its promise to raise interest rates? Obviously the answer to that question is never.
Einstein’s definition of insanity: doing the same thing over and over but expecting a different result. If someone claims to be going on a diet by eating one cheesecake after another, when will that person be “thin enough” to fit into their new bathing suit? Obviously the answer is never.
The excessive and criminal monetary policies of the Federal Reserve must continue to make the U.S. economy weaker and weaker. Thus when these Criminals vow to continue their crimes until the U.S. economy “strengthens”, what this really means is that they will never discontinue those crimes – not until their destruction of the U.S. economy has been completed. Unless the monetary criminals of the Federal Reserve wish to “plead insanity”, deliberate treason is the only other logical verdict.
We also reach this conclusion by looking at the acts of malice of these financial criminals: the endless, serial lies. The Federal Reserve lied when it promised to immediately normalize interest rates in 2009, and it has been lying month after month, year after year ever since.
We know this, because beginning in 2009, B.S. Bernanke has serially boasted about the supposed “wealth effect” he was creating with his 0% interest rate, and near-infinite, pedal-to-the-metal money printing. You can’t create a “wealth effect” by pursuing an Exit Strategy. The two policy goals are mutually exclusive. Engaging in one policy (and continually boasting about it) means that you were never serious about the other.
The Federal Reserve (and other Western central banks) also lied when they promised they would “never copy Japan” . We know this, because all of these deceitful central bankers made this promise, individually and collectively, just before they began copying Japan . A simple allegory illustrates this point of logic.
If someone is caught walking on the grass in a garden where “do not walk on the grass” signs are posted, we have no way of knowing whether this was a malicious act, or merely an accident. However, if someone is caught walking on the grass immediately after promising that they would never walk on the grass, we now have proof of malice. Because the mind of the Liar was already consciously focused upon the “crime” of walking on the grass, any transgression would have to be intentional – i.e. malicious.
The Federal Reserve is a collection of malicious, serial liars, engaging in economic treason. The evidence is absolutely conclusive. However, in building a case for any crime, a central question is always motive. Why has the Federal Reserve engaged in this economic treason, and also engaged in a serial campaign of deceit to hide its economic treason?
Regular readers could answer this question in their sleep. The central bankers of the Federal Reserve, and the central bankers of all of the West’s central banks (and most of the world’s central banks) are all highly valued employees of the banking crime syndicate known as “the One Bank” .
Give me control of a nation’s money supply, and I care not who makes the laws.
- Mayer Amschel Rothschild, banker (1744 – 1812)
What was the reasoning behind the boast of this oligarch of financial crime? It could not be simpler. Control the printing press of a nation, and you can buy all of the politicians . Hand the control of all of our printing presses to a Crime Syndicate, and you create government-by-Crime-Syndicate, aka “fascism”.
Central bankers steal via inflation (for the benefit of their Masters). They have already confessed to the crime , as regular readers are well aware. For the benefit of newer readers, that confession will be repeated one more time.
In the absence of the gold standard, there is no way to protect savings from confiscation [i.e. theft] through inflation .
- Alan Greenspan, 1966
Informed readers already understand that the actual/correct definition of inflation is an increase in the supply of money. The central bankers steal by printing money. The more they print, the more they steal. It is the fundamental equation of monetary crime.
In 2008; the Federal Reserve began money-printing (and thus wealth-stealing) at an unprecedented rate. It has vowed to never stop such stealing until the U.S. economy gets stronger, while its policies must make the economy weaker and weaker. Here the Apologists for these central bankers will interject.
The Federal Reserve has “tapered” its extreme money-printing, claim the Apologists. Thus it has “tapered” the rate at which it is stealing the wealth of all Americans. No, it has not.
As already noted, B.S. Bernanke spent years boasting about how the bubble valuations in U.S. stock and bond markets were a direct consequence of his hyperinflationary money-printing. This Criminal cannot have it both ways. If the Bernanke money-pump created these asset bubbles then turning off the money-pump must cause the bubbles to implode.
The U.S.’s stock and bond bubbles have not imploded, in fact they have grown significantly larger . Ergo, it is mathematically impossible that any “tapering” of this criminal money-printing ever took place. Instead, the Criminals have simply replaced all of their official money-printing of U.S. dollars with unofficial counterfeiting. The Big Bank crime syndicate has been counterfeiting U.S. currency by the $100’s of trillions (if not quadrillions).
As has been explained before; the combination of (fraudulent) “0% interest rates” and ( fraudulent) “fractional-reserve banking” enables infinite counterfeiting . The arithmetic is simple. Just three of the tentacles of the Big Bank crime syndicate could counterfeit nearly $1 quadrillion. Use four tentacles, and the potential counterfeiting increases to $1 quintillion. Use all of its tentacles, and the One Bank could literally counterfeit infinite amounts of U.S. funny-money.
Infinite counterfeiting = infinite money-printing = infinite theft.
The Federal Reserve’s current “monetary policy” is not aimed at stealing merely some of the wealth of the U.S. population. It is aimed at stealing all of the wealth of the U.S. population. And these Criminals have already promised us (again and again) that this crime will never end – not until they are finished.
Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers and investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but with a background in economics and law, he soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.
The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.