Ellen Brown showed that QE2, the $600 billion created by the Fed to salvage the economy, failed because the money ended up overseas, mostly in European banks. Would it surprise anyone, then that the entire credit downgrade and ensuing market nosedive is a legal means of extortion to wrestle another round of quantitative easing from the Fed?
Mon August 8, 2011 the stockmarket took a 635 point dive after the US credit rating downgrade. The next day, as the Fed issued a statement to keep interest rates stable through mid 2013, it soared back up 429 points. Wednesday, after Bernanke's Fed statement failed to announce QE3, the market crashed again. Why then did it nosedive back down 520 points? TV news report it tanked on doubts about a possible downgrade of France's credit rating. Not!
On Friday Aug 5th, the day of the credit downgrade, Swiss fund manager Marc Faber said it straight out. He told Bloomberg, "Now we'll see if Mr. Bernanke is a true money printer or an amateur money printer. If he is a true money printer, he's going to start printing soon... I can smell QE3, QE4 and many more'.
WTF! I hate rioting, but I sense people understand what's going on.
The privately owned Fed's moves aren't overseen by Obama or anyone else in the executive or legislative branches, so financiers can spread the wealth to each other while they cite gov't deficits as an excuse to impose austerity measures on the world at large. As Ellen Brown keeps pointing out, local and state governments can also get into the banking business and fend for themselves, in public/private partnerships with private banks. Unfortunately, governance at the federal level is too deeply compromised to affect 'change we can believe in'.
