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I am not sure how Wiki and timber will handle the truth. This...

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    I am not sure how Wiki and timber will handle the truth.  This from my Daily Reckoning reading today.  And it is not Professor Hoff saying this.  It is Central Bankers.  Wiki and timber's mates.

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    The Fed’s multiple QE programs were credited with saving the world. With imitation being the best form of flattery, Japan and Europe followed suit and rolled out their own QE programs.

    The Fed publicly stated QE was meant to provide banks with liquidity to once again begin lending to Americans.

    Wrong.

    Former Federal Reserve official Andrew Huszar made this frank admission in the Wall Street Journal (emphasis is mine):
    The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

    Was this the ranting of a disgruntled former employee? No.

    Richard Koo, Chief Economist at the Nomura Research Institute (and one of the main architects of Japan’s QE program) said (again, emphasis is mine):
    In a sense, quantitative easing is meant to benefit the wealthy. After all, it can contribute to GDP only by making those with assets feel wealthier and encouraging them to consume more.

    QE is an enabler for the wealthy to become even wealthier. It does nothing for the man in the street.
    The wealthy don’t necessarily consume more. They tend to accumulate more.

    Which is why the Wall Street Journal ran a headline recently saying the US recovery was the worst in 70 years, in spite of trillions of dollars being printed to aid recovery.

    QE is a fraud.

    The more kindly amongst you may think this was an honest mistake by the Fed.
    No.

    The Fed and Wall Street deliberately misled the public on the real intent of their actions. It was all about saving the insiders. Creating currency (a pool of deposits) for commercial banks to then lend to borrowers was a complete furphy, and they knew it.
    Last edited by danhoff: 29/08/15
 
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