Buying $600 Billion in Debt with Debt
by James West
Posted November 4, 2010
HERE IS THE GLARING HOLE IN THE UNITED STATES FEDERAL RESERVE’S approach to what it calls stimulus, and what history will one day categorize as fraud: You can’t use your own debt to purchase more debt when you can’t repay the original debt. The crime is compounded when you know you’re never going to repay the debt. It amounts to treason to intentionally destroy the integrity of the nation’s money. The Federal Reserve’s ability to “purchase” U.S. Treasury Bills is completely dependent on the fact that there is no overseer above the Board of Governors of the U.S. Federal Reserve to call an end to such self-destructive, immoral, and just plain criminal behaviour.
That stock markets rise in reaction to the news is no surprise: that $600 billion will find its way into the pockets of major financial institutions, and will go nowhere near the vast majority of bank accounts owned by people who are out on the street thanks to the collusion, or rather, the subjugation of the government of the United States to the Financial Service Industry. The rise will be temporary, and as this most recent mutation of the disease engulfing certain nations right now, debt addiction is going to suffocate future generations for decades.
The motivation for anointing the Federal Reserve with all the autonomy, secrecy and criminal immunity is completely understandable at this juncture of the collapse of the United States as the leader of the free world. It becomes possible to divorce the culpability of such a group from the history of the nation when such a status is enjoyed. At least, that’s the delusion under which the United States elite seem to operate, given the unilateral destruction and callous disregard for integrity of the world’s financial system emblematic of their conduct.
I feel compassion, to some degree, for the families of such master fraudsters as Ben Bernanke, Larry Summers, Robert Rubin, Timothy Geithner, Hank Paulson, and the rest of the perennial button men who surround them and aid and abet the defrauding of Americans and everybody they do business with through the offices of the Financial Services and Insurance industries. The actions of these criminals will taint the names of their families for many generations as well. The problem with crime on such a huge scale is that it destroys so many lives across generations.
The question is not whether a Republican or Democrat can lead the U.S. out of economic penury. The question is, “who will have the temerity and force of character and intellect to identify the fraud as such, incarcerate the fraudsters, and rebuild the system from the ground up?
Why, even Bill Gross, who heads the world’s largest bond fund, Pimco, has suggested that the United States government is running a ‘Ponzi’ scheme.
“Check writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme. Public debt, actually, has always had a Ponzi-like characteristic,” he said in his November correspondence to investors.