It’s distressing to realize that we, proud dollar worshiping Americans have no idea what FED, dollar printing extortion racket, has been actually up to, especially since 2008 crash. I will attempt to confront here all idiosyncratic, unintelligible crapshoot theories of sub-prime securities, derivatives, CDS, MBS etc., coming out of learned tin heads of academia, financial as well mental institutions. None of these deceitful terms mean anything, except they are used to cover up capital crime of XXI century perpetrated with impunity by Wall Street gamblers anonymous.
In order to prevent massive epidemic of apoplexy among normal people trying to think about all this crap, I took on myself duty, as a public service, not to talk financial crap talk here but to clearly illustrate for you exactly what FED did since 2008, in terms understood to everyone with GED.
I urge you to read it before even start arguing about unfairness of idea of debt forgiveness for millions of hard-working Americans duped by Wall Street oligarchs.
The keyword of today is “FED provided Liquidity” (FpL) which amounts to massive, currently $17 trillion, being constantly injected in dead bodies of TBTF bank zombies. A carbon copy of futile Japanese monetary policy incessantly many times repeated over last two decades. The QE series are just additional injections of “FED provided Liquidity” into already bloated banking system, but not into mainstream economy as propaganda wants us to believe. Those are two absolutely different, at this point unrelated, things.
What the hell “FED provided Liquidity” means to average Joe? Should plenty, as below example of injection of liquidity into sorry ass of Joe Broke illustrates.
Joe Broke lost job and is about to lose home, truck, furniture, hunting gear, savings, retirement money, wife etc., since he failed to pay his huge gambling debts.
Is he broke (insolvent) and should go bankrupt or is he just illiquid? I say, it’s up to the FED.
His first problem is following:
He cannot not find any employer to pay him high enough wage for his lazy ass, good for nothing attitude. But If FED, would provide him with a job paying as much as he needs to cover all his expenses, that would make his labor power i.e. variable capital holding, liquid.
His second problem is following:
He cannot find anybody to buy his bad ass, decapitated shack and his junkyard real estate assets, called house for price that covers his multiple mortgages he took to keep up with wife spending orgies and neighbors race for golden Chinese junk. Well, FED could provide liquidity here, and pay double what Joe needs, recognizing private market values of his urinal drawings authenticated by his personal autograph while drunk. That would make his house assets liquid.
Also his 1972 Chevy truck with engine broke and not a tread on its tires, to become liquid if only FED buys it for original purchase price, adjusted to real inflation adding on the top, original body paint, collectible value. The same could apply to all Joe’ ass-ets including his wife which could be made liquid by FED via total makeover so she could finally leak out of his life, and find herself another Joe to whine to.
Now Joe Broke is broke no more through miracle of FED liquidity. He is Joe Rich now, so he can continue to live his bad ass, comfortably lazy, low life, and gamble like there is no tomorrow, knowing that FED’s Mama has his back. Exactly like it was the case of her favorite son, Bob Bankster who was bailed out after 2008 market collapse through the same mechanism of FED buying worthless assets (securities) for nominal or higher than nominal price while market priced them to zero.
As we all know our own valuable material and human assets with high use values for society were left to rot and when pain became unbearable, were picked up on cheap by perpetrators of our desolation, who sucked green fluid from FED Mama’s disgusting teat to satisfy their gluttony.
The FED is just a bailout Mama Vampire who feeds their monstrous litter by liquefying our blood, sweat and tears of our love ones, in her murderous rage. Now, you know all there is to know about the FED.