History does not always repeat it’s self but it gives us a funny sense of déjà vu. Was 2008 so long ago that we have forgot what caused the collapse of Lehman Brothers, a sprawling global bank, in September 2008 almost brought down the world’s financial system. It took huge taxpayer-financed bail-outs to shore up the industry. Even so, the ensuing credit crunch turned what was already a nasty downturn into the worst recession in 80 years. Massive monetary and fiscal stimulus prevented a buddy-can-you-spare-a-dime depression. GDP is still below its pre-crisis peak in many rich countries, especially in Europe, where the financial crisis has evolved into the euro crisis. The effects of the crash are still rippling through the world economy. The FED used modern day wizardry and created money out of thin air and they used two clever words to describe the con job Quantitative and Easing.
- The term quantitativerefers to a type of information or data that is based on quantities obtained using a quantifiable measurement process. In contrast, qualitative information records qualities that are descriptive, subjective or difficult to measure.
- The term Easing refers to make (something unpleasant, painful, or intense) less serious or severe.
DEFINITION of ‘Quantitative Easing’
An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes.
If the central banks didn’t print the money to buy the securities where did they get it?
I know that’s a great question. So no, the Fed is not printing money. In fact, the Fed is doing much worse than that. In allocating $4 trillion borrowed from banks, it’s supporting the very government spending and housing consumption that got us into trouble to begin with. More to the point, the Fed is financing ongoing economic hardship through its expanded borrowing of bank reserves. In total the Fed balance sheet grew at light speed from $800 billion to $4.5 trillion. This explosion happened in 6 years from 2008-2014.
The Fed with its titanic sized balance sheet meant it was overleveraged this was very bad news because they only had a slim margin in reserve in case any serious problems in the financial system like another major bank going down. The Fed started talks of tapering and QE came to an end in October of 2014. So why is the Fed’s balance sheet increasing. Yes it just increased by $28.5 billion. Guess what they purchased? You got it mortgage-backed securities. The same toxic assets that caused the great 2008 meltdown. So here we are with the Fed balance sheet over $4.5 Trillion. The Fed has not tapered at all and they have no real margin for “safety”. So what do we have a government that is $18 Trillion in debt the FDIC is on record stating they are not prepared for the next financial crisis and the Fed has no margin for error and is pretty much insolvent. This means one thing your money is not safe in banks and we are watching a ticking time bomb of a total financial meltdown and we don’t know how much time is left on the clock of the bomb that is going to blow up the entire system. History does not always repeat but it gives us a great forecast of what is going to happen. It’s time you start getting your real money out of the system before there is not system to get money out of. It’s time to put your money into real money that has transcended time. Gold and Silver have been real money since history has been written and it was money when history was passed down by word of mouth. When things break there are warning sings before they break but when they break they just break. Like a paper clip if you bend it enough times it will break if you bend it back and forth quickly you get a warning sing that it’s going to break because it get hot but you don’t know which bend is going to cause it to break. The point is the paper clip of this fiat system has been bent many times over and over again and it’s ready to break it’s up to you to prepare for when it does break so you are not going to be in the herd of sheeple who lose everything, but be a smart investor and protect your assets with real assets.
But don’t take my word for it.
In a recent announcement, the FDIC tells us how banks have grown far larger and even more complex since 2008, and that “
The FDIC goes on to suggest that its current tools and business model are “not sufficient to mitigate the complexities of large institution failures.”
But even though they’re not equipped to handle it, they’re not entirely sure what to do.
That’s why the FDIC is “seeking comment on what additional regulatory action should be taken. . .”
In other words, they’re asking the public for suggestions about how to handle a major US bank failure. Hardly encouraging.
Bottom line– your bank is potentially in the same boat it was in 2008. The FDIC is worse off. And the federal government is totally insolvent
The Bottom Line
There is a major shift under way, one the U.S. mainstream media has left largely untouched even though it can, and will, negatively impact our economy and reduce this country’s importance in the world. ‣ Global Abandonment of the Petrodollar ‣ Increased Turmoil in the Persian Gulf ‣ A Banking System Fraught with Trillions in Risk Laden Derivatives ‣ 18+ Trillion Dollars in Government Debt ‣ 200+ Trillion Dollars, Including Entitlement Programs Are you confident your portfolio can handle the looming crash? The walls are starting to crumble, so you can either choose to watch your assets disintegrate, or do something about it now! Our monetary system is a house of cards based on paper debt. Isn’t it time you start protecting your hard earned money with Gold?