Sunday, May 9, 2010

Fed Set to Go Nuke to Help Bailout Europe

The Federal Reserve has announced that it will re-establish the temporary U.S. dollar liquidity swap facilities with the Bank of Canada, the Bank of England, the European Central Bank (ECB), and the Swiss National Bank that it first implemented in the early part of the financial crisis.

Further details on these arrangements will be available shortly. It appears, though, that for all practical purposes, the Fed has agreed to bailout the world. Essentially, foreign central banks will print up any amount of money they want  in their currency and the Fed will print up an equal amount of dollars that they will then loan to the foreign central banks (against the foreign banks newly printed money)who will then  loan the funds to the banksters  who will  use as collateral the securities of the PIIGs, to gain the dollars.

Needless to say this is complete and utter madness. It is potentially extremely inflationary on a global scale.What's more, outside of banksters, no one in America will benefit from this move.  Every one in America could suffer from the potential inflationary consequences.

The size of these swaps must be watched very closely.  It does not appear that these funds will be stored as excess reserves. This means they will be out in the system. Every $100 billion added to the system in this manner (unless somehow sterilized by money drains elsewhere) will mean an immediate increase of 1.16% in M2 money supply. But this $100 billion would be high powered money. This means the  final impact would be a multiple of the initial Fed money creation.

Given that the U.S. financial situation is delicate, and the Fed is likely to be called on to bailout the Treasury Department within a short-time, for the U.S. to be a major player in the bailout of Europe is sheer madness. It's the taller drunk holding up the shorter, eventually they will both collapse.

Bottom line: The Federal Reserve bank is on the edge of pushing the financial nuclear button, and print money in reckless abandon. Even if this were done for Americans it would be a terrible policy, but to do this for foreigners, where there would be little benefit for Americans reflects the extraordinary madness of the elite bankers.

The full Fed statement is in the EPJ vault, here.


  1. Wenzel, why would the Fed bailout the Treasury Department. I do not understand.

  2. Probably by buying Treasuries at auction, would be my guess. To keep the interest on T-bills from going too high.

    I'm guessing, though.

  3. All part of this administration's diabolical plan toward a NEW WORLD ORDER. WE ALL BECOME ONE -- NO MORE 'AMERICA' -- ultimate planned outcome by the most evil administration EVER in the history of this (once) great country.

  4. Due to political expediency and being the easiest move,all nations will be bailed out,all states will be bailed out and currencies will lose.
    This may sound old,but what can be better than gold?

  5. Its all a set up to start the permanent market crash soon. The United States declared Bankruptsy in 1933; how soon we forget. We as Americans became assets for the case and are biological property unknown to most Americans.

    -Colonel Edward Mandel House to Woodrow Wilson found in Wilson’s personal diary/logs

    “Very soon, every American will be required to register their biological property (that's you and your children) in a national system designed to keep track of the people and that will operate under the ancient system of pledging. By such methodology, we can compel people to submit to our agenda, which will affect our security as a charge back for our fiat paper currency. Every American will be forced to register or suffer being able to work and earn a living. They will be our chattels (property) and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions. Americans, by unknowingly or unwittingly delivering the bills of lading (Birth Certificate) to us will be rendered bankrupt and insolvent, secured by their pledges. They will be stripped of their rights and given a commercial value designed to make us a profit and they will be none the wiser, for not one man in a million could ever figure our plans and, if by accident one or two should figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debts to the registrants in the form of benefits and privileges. This will inevitably reap us huge profits beyond our wildest expectations and leave every American a contributor to this fraud, which we will call "Social Insurance." Without realizing it, every American will unknowingly be our servant, however begrudgingly. The people will become helpless and without any hope for their redemption and we will employ the high office (presidency) of our dummy corporation (USA) to foment this plot against America."

  6. Do you have a source for that quote? If it was in Woodrow Wilson's logs then it should be publicly available somewhere.

    But, if it was a meeting, I dont think Wilson would be writing down what House was saying unless the conversation went like, "Ok, House, monologue to me and I'll write down everything."

    He also had dyslexia, right?

  7. Money doesn't mean a thing, it is the strength of the national economies which presents the value.

    It is just money and lets hope that in 5-10 year everything is back on track: employment, tax income and national GDP.

  8. @Anonymous (May 10, 2010 9:10 AM): This is the culmination of the precedents established by decades of preceding administrations. Obama and his clique are continuing and building on the evil done during the two Bushes, Clinton, Reagan, et al. This has been going on for a century now.

    I agree, though, that Obama's is the most evil of a evil lot. Of course, that has been true with each new administration. I shudder to think what the next one will be like!

    Still, a McCain administration may have had somewhat different priorities, but they would have been just as bad. The GOP and the Democrats are two sides of the same coin.

  9. You should break this down into layman's terms for people. How money is created is by selling debt through the FED that debt is held as interest-bearing until cashed in and it becomes liquidity in the form of cash to invest or spend, traditionally the only way to get dollars is to do business with the U.S. and to not lose money due to inflation you take treasuries and bonds in exchange for your trade imbalance/deficit or money owed. What has happened is the U.S. economic crisis and the bailouts have dried up all available cash to exchange with other countries to keep the system liquid- funded with cash for trade. So to correct this they will now just PRINT MONEY NON-STOP TO COVER BOTH LIQUIDITY DEFICITS AND TREASURIES/BOND PAYMENTS OR CASH OUTS. World trade will now take off like a rocket because there will no restrictions (due to investment time periods for treasuries/bonds) cash will just be dumped into the system as needed. Globalized corporations, banks, financiers, national governments will all make record money because they will now have instant access to cash capital from this..poor people and the middle class will be crushed by inflation. This is the defacto implementation of a one world currency system and the next barrier to cash flow will be the conversion into foreign currencies and that will be eliminated after the next world downturn so we are looking at the beginning of the dollar becoming the only currency on Earth.

  10. The Fed and Congress create fiat money by a gift of government securities for a line of credit on the accounting ledgers of the Fed. The U.S. Treasury acts as auctioneer to sell the Fed owned securities to make it look like the government is raising money. Actually, it is pulling money out of circulation to reduce the inflationary pressure in the same manner as FOMC does when selling assets. The new money still in circulation then becomes the reserves of commercial banks that are multiplied by the fractional reserve scheme.

    When the securities (bills, bonds, or notes) are given to the Fed, the amount of the principal in the security is created. Every “dollar” in circulation has been created in this manner. The promise is to pay back the principal PLUS the interest. The interest is not created. It does not exist. It is impossible to culminate the contract. Any contract that cannot be culminated is an act of fraud and is void from its inception.

    The only way to pay the interest is to create more principal, but that creates more debt. It is a matter of postponing the inevitable---as in any Ponzi scheme. Perhaps this article may be of interest-----

    Every nation has a similar debt-based economy. They have been imposed by the CIA’s economic exploitation of nations. Ref. CONFESSIONS OF AN ECONOMIC HIT MAN by John Perkins. The plan puts the IMF in charge and the CFR as chief exploiter. Every nation has a Ponzi scheme for an economic system. Every Ponzi scheme terminates when no new patsies can be found.

  11. The Bailout of Lord Jacob Rothchilds Inter-Alpha group of banks along with other British Banks would not be happening if not for Obama's pressuring of Merkel.Tim Geithner along with Larry Summers are also behind the Bailout as they along with Obama are traitors as tools of the U.S.A's mortal enemy the British Empire. Larry Summers is arm twisting Senators to stop Glass-Steagall the only solution to saving the U.S. Down with the Traitors.

  12. this quote has a lot to do with this conspiracy as well as the US planning the Great Depression setting up a coup in 1934 that never happened but would be planned again two more times before 1975. This quote is confirmed whether anyone likes it or not, its the real story in addition to the U.S. government insiders and FDR Administration not only knowing about Pearl Harbor a full 10 years ahead but also helping to plan it.

    March 4, 1939 - Quote from a report of the secret committee by President Roosevelt,;
    “I am making no concessions to business, or for relief. I have a military machine sufficient to stop any organized revolt. I am putting MY PEOPLE ahead of all instruments. I’ll have had a full understanding with Chamberlain, and we will destroy this unemployed condition with a WAR, and a WAR only. To Hell with the American people, as far as a Democracy is concerned. It does not exist. It never did, and we will never let it happen that way. I am going to crush business, infest America with all the aliens possible, and in the last analysis, declare Martial Law, and confiscate everything I need for a true and forceful Dictatorship. My New Deal is a failure, and I know it, but no one else will tell me that I must discontinue my present activities, and program.”

    From the Secret Audience with the Military Appropriation Committee;
    The Ways and Means Committee;
    The Special War Finance Committee;

    This copy was presented to me by mail through Senator Lundeen.” “The Red Fog Over America” by William Guy Carr, 1955.

    In 1841 Clinton Roosevelt published in America “The Science of Government Founded on Natural Laws”, This was nothing more than a plagiarized version of the teachings of Professor Adam Weishaupt of Frankfort University, Germany, the renegade Jesuit priest who arranged for the agenteur of the Illuminati to infiltrate into French Freemasonry in 1776 so “The Secret Power” which directed the World Revolutionary Movement, and the Conspiracy of Satan, at that time could use Freemasonry to further their secret plans and ambitious and at the same time cloak their diabolitical purpose.

    The fact that FDR’s New Deal, his NRA, and other political policies and economic devices fitted perfectly into the “Long Range Plans”, of the Illuminati proved the continuity of the conspiracy from 1841 to 1945. It has been explained that Roosevelt made known his secret plans to establish a dictatorship in American in March 1939 when he gave a secret audience to some of his governments special committee. It has also been mentioned that Roosevelt was kept a virtual prisoner from after Yalta until his death presumably to prevent him telling the truth in the event his conscience troubled him when he realized that he was about to meet his maker.