EURO, ECB, DOLLAR, FED - All Must Go!

The dollar issued by the privately owned Federal Reserve will fall from its status since 1944 as the global reserve currency. The big Wall Street banks will fail. The U. S. federal government will collapse into insolvency. Congress, the Executive Branch and Judicial Branch have been complicit in financial fraud, economic and political suppression, and international aggression which will produce these cataclysms, and will not prevent them. Should we discuss it?

No Exit from Fed’s Balance Sheet

          Addressing first the financial and economic issues raised by mainstream analysts, the U. S. dollar cannot be saved. The Federal Reserve has no practical path for removing nearly $4 trillion admittedly added to the monetary base since mid-2008. The same is true of about $1 trillion in Treasury securities purchased by the Fed in off-shore proxy accounts located in Belgium, Luxembourg, Ireland, Switzerland and the Caribbean.

          The Fed has bought about $3.5 trillion of Treasury debt at par, monetizing federal debt as essentially the only buyer maintaining the market for those securities. The Fed’s prospects for selling those securities at prices close to par, while at the same time leaving the Treasury market to other buyers, are nil.

          The same may be said of the Fed’s prospects for removing monetary base created to purchase $2.5 trillion in mortgage securities. Especially this is so if conditions include a return to market interest rates amid collapses of the dollar, the economy and the federal government.

          Reports indicate the U. S. has exported to the Bank of Japan, at least temporarily, the Fed’s QE obligations for monetizing Treasury debt. The apparently clandestine U. S. actions have complicated relations between the two governments. The largest Japanese retirement fund of about $1.2 trillion is reportedly now invested in Treasury securities rather than Japanese bonds, which brings risk of collapse upon default of U. S. debt and the same “no exit path” dilemma the Fed has created for itself.The dollar issued by the privately owned Federal Reserve will fall from its status since 1944 as the global reserve currency. The big Wall Street banks will fail. The U. S. federal government will collapse into insolvency. Congress, the Executive Branch and Judicial Branch have been complicit in financial fraud, economic and political suppression, and international aggression which will produce these cataclysms, and will not prevent them. Should we discuss it?

No Exit from Fed’s Balance Sheet

          Addressing first the financial and economic issues raised by mainstream analysts, the U. S. dollar cannot be saved. The Federal Reserve has no practical path for removing nearly $4 trillion admittedly added to the monetary base since mid-2008. The same is true of about $1 trillion in Treasury securities purchased by the Fed in off-shore proxy accounts located in Belgium, Luxembourg, Ireland, Switzerland and the Caribbean.

          The Fed has bought about $3.5 trillion of Treasury debt at par, monetizing federal debt as essentially the only buyer maintaining the market for those securities. The Fed’s prospects for selling those securities at prices close to par, while at the same time leaving the Treasury market to other buyers, are nil.

          The same may be said of the Fed’s prospects for removing monetary base created to purchase $2.5 trillion in mortgage securities. Especially this is so if conditions include a return to market interest rates amid collapses of the dollar, the economy and the federal government.

          Reports indicate the U. S. has exported to the Bank of Japan, at least temporarily, the Fed’s QE obligations for monetizing Treasury debt. The apparently clandestine U. S. actions have complicated relations between the two governments. The largest Japanese retirement fund of about $1.2 trillion is reportedly now invested in Treasury securities rather than Japanese bonds, which brings risk of collapse upon default of U. S. debt and the same “no exit path” dilemma the Fed has created for itself.

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