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Friday, October 19, 2012

Flushing the money away

Today as of 3:30p, the Dow is -200 or so..  Nice to see QE3 working, yes?

Guess $40 billion a month for infinity along with finishing up the $45 billion a month as part of Operation Twist 2, doesn't buy as much for the buck as it used to..

This is something we like to keep pointing out to the pro investing people out there;  On Sept 12th, the Dow closed at 13,333.  This was right before the QE3 announcement.  At the moment, the Dow is at 13,356.

Maybe it will spring up higher in the next 90 minutes... But as it stands, after 5 full weeks of trading, and all that precious money that could/should be used for better things (and better people), the Dow as of this moment has gone up only 23 pts.   Wowwie~

Now let's break down $40 billion,   We know the following isn't anything super-original to do, but its important to understand how deeply Evil the Federal Reserve is (and why neither candidate has uttered one word on them in 3 debates incl. the VP debate is beyond logic) and equally important to understand how their pro-bank/pro-Wall St actions hurts the rest of the nation.
So, in the last month $40 billion was spent on QE3.  We won't focus on the other $45 billion spent via Twist 2, as mentioned previously...  Let's break the figure down..  BTW, it looks like this:

$40,000,000,000

Every dollar the Fed spends, is created from thin air... it is new public debt.  In other words, it prints the $$, spends it, then the American people re-pay it because what they spend is added to the overall National Debt.  And the more pieces of paper the Fed prints, the less valuable the pieces of paper in your wallet, purse or billfold are.

There are 310 million Americans living today.   If every person to receive a cut of the $40bill when divided up equally, the share would be $129 per person.  Now some will say, 'Hmm, that's not much is it?'   Certainly not much if you were planning on buying a home or automobile with your cut of the pie.

But if you think of it differently.. like how much you personally spend on food.. Or specifically to fill your gas tank monthly?  Or what you pay for your cell phone/wireless plan... or cable TV.. or utilities, etc... then receiving $129 is nothing to sneeze at...  And its monthly.
However that $$ was to be used, no matter how practical or impractical its purposes, it would be circulating through the US economy, local/state governments would be able to collect sales tax revenue from it, and it would be benefiting Every Single American in some way.

Instead, the money goes to overpay for worthless toxic mortgages to be taken off banks' balance sheets which then pumps $$ into the stock market allowing the financials and Investors more money for speculation and investment risk.

And so few understand what's going on because the media and leaders really do not want you to understand...  And so outside of occasional gripes from people here and there, you have no collective outpouring of anger or expressions of frustration toward these policies.

You know, its funny.. not 'ha ha' funny but pathetically sad-- If you think about the TV show Saturday Night Live and all the Presidents, politicians and news makers they've satirized, characterized, degraded and viciously skewed, they've Never Ever made fun of the Fed Chairman...  Not one joke.

No mocking and disparaging of Alan Greenspan during his time in power and absolutely nothing on the current chairman Bernanke though he deserves it so mightily.
And this is even though Bernanke has done more to hurt this nation irrevocably than any elected leader ever could through his policies of artificially pumping the stock market and continually devaluing (weakening) the US dollar while trying everything humanly possible to create inflation (everything costs more)!

That's how ignorant we as a nation are of the Federal Reserve and how the economy functions:  SNL won't take the time to mock and lampoon those we collectively know nothing about.  Not worth their time to teach us who the truly evil are.  SNL is about getting laughs so they rather make fun or word mis-pronunciations and behavioral mannerisms.

This stock market will not maintain its artificial highs.. What goes up Must go down, even when rigged, and even with QE3 and 4 and 5, it will go down because the global economies are either in official recession or close to being declared as such... and that means more downsizing... more deleveraging..

And all that precious money that could be put to so much good to help people and bolster the real, everyday economy instead is just flushed away... flushed down that toilet known as Wall St.  And few people know or understand enough to care.