This is a fascinating read by Joseph Stuber which I linked to in a previous post. After reading it in more detail, it’s certainly worthy of more attention. Stuber does a nice job of exposing the contradiction between the Federal Reserve’s stated policy with the facts as measured in the real economy. He goes on to explain his evolving view of what the Fed is really up to, why AIG was bailed out with its counterparties made whole, and why you should be concerned. After some careful consideration and analysis of the Federal Reserve’s treatment of the banks during the last 5 years, Stuber seems to have an epiphany…
“The biggest mistake I have made in the last 15 months is to assume the Fed would lose control of the markets at some point. I no longer believe that to be true. In fact I am convinced at this point that all technical and fundamental analysis is totally useless in terms of forecasting the next crash.
The next crash – in my opinion – will come about at such point in time as the Fed and those who control the Fed decide the time is right and not a day sooner. I am also convinced that the next crash will be even more devastating than the last 2 crashes of this century and will vest even more power and control in these global elitists.”
“The evidence over the years supports Lindbergh’s position in that we have had 20 recessions since the passage of the legislation that authorized the Fed back in 1913. That works out to about one recession every 5 years on average as reflected by the gray bars on the Dow Jones (DJI) chart below. You can argue that the Fed just lost control each time and their motives were always to support the middle class. I would suggest another possibility – their motives have always been to enrich the banks just as Lindbergh said they would.”
“The bold effort the present (central) bank had made to control the government … are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it. I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.” – President Andrew Jackson
Stuber highlights the swelling cash stockpiles at our major financial institutions and corporations as evidence that the Fed’s true interests lie not with the people of the United states, but the wealthy elite. If these charts are not indicative of your own bank account, there’s a reason for that. Trickle-down monetary policy is a complete sham.
Cash Assets At Large Banks
Corporate Checking Accounts
Take a long, hard look at this chart. Does it suggest that corporations are confident in the current state of the economy? If so, why are they hoarding cash, buying back their own shares in many cases? What are they preparing for?