Mechanics of QE & The Destruction of the American Economy

THE MAGICIAN’S DREAM
BUT
AMERICA’S NIGHTMARE

by Dwight at Tpath.org

October 28, 2013 TPATH - We have heard all the terms and all the phrases such as Quantitative Easing, or Monetizing Debt and just plain QE4 (or whatever number they are currently up to).  But how many people, even those in Congress, Wall Street and the banking industry, those who benefit the most from this destructive charade, understand just what it is and how it’s actually pulled off?

The answer is, of course, very, very few.  

TPATH will show in this article how this massive cartel of manipulation, comprised of the Federal Reserve, the government and the commercial banking system, supported by progressives in both parties, go about creating money from thin air, then using it to create more money from more thin air.  A policy which has, every time it’s been implemented, not only devalued the currency in the form of inflation but in some cases, destroyed entire countries.  At the very least the effects of Quantitative Easing are equal to a hidden tax.  Politicians enjoy the power that comes with the money but because the people don’t understand it, they are not held accountable.

The time has come to reveal how this is done and expose those who exploit it.

So if you are more interested in Lady GaGa’s latest display of stage nudity, this article may just bore the pants off you. So to speak.  

Lady GAGA
Moments before 
losing her dress.

But if you want to take a few minutes to digest the steps your government, the Federal Reserve, as well as commercial banks and Wall Street, undertake to create massive wealth from nothing more than a few sheets of paper. Then, read on.

Contrary to popular belief, they are not actually printing money.

The first thing that needs to be made clear is Quantitative Easing (hereafter QE) has nothing to do with printing of money.  Why? Well for one thing the amount of unearned money that QE generates would be impossible to print.  There just wouldn’t be enough time in the work week for them to print that many bills in usable configurations.  And second, just printing bills and dumping them into the Federal Reserve systemwould be too blatant even for these scoundrels.   Besides,  in relation to the amount of fake money QE generates, printing just $85 Billion a month is just child’s play.

The Magical Mechanics of Quantitative Easing.

This step by step description will use several “accounting terms” which are known to most of us who have tried to balance our books in business or home finances.  It’s important to understand that the deception behind QE requires the Federal Reserve (hereafter the Fed) and the government use those terms as cover while bastardizing their true meaning.

Follow along as we show how billions of dollars are created, from nothing.

STEP 1
The government designs a very impressive looking Treasury Note in any amount they desire and then prints it up in impressive font and fancy seals.  There is nothing tangible behind this note except the promise to pay the holder a specified interest for a specified time and a redeemable amount at a specified time.  This bond (Treasury Note) may have its value listed in the amount of $50 Billion, its actual value, is zero.  It was created from nothing.

STEP 2
These bonds are then sent over to the Fed (remember Fed is the Federal Reserve Bank) at the cost of, well nothing.  The Fed does not pay the government one dime at this time.  That would, you see, leave an unbalance on the Fed’s books.  We can’t have that, can we?

STEP 3
The first of the several re-classifications now takes place.  The Fed declares these bonds as“Securities Assets” despite the fact that these assets didn’t exist just hours before.   But now they are an asset which in reality is just more government debt.  Which by the way, your children and their’s will pay for, one way or another.  

continue article at Tpath:

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