Title: It's Time to Find the Courage to Admit that the Idea and Purpose of the US FED has Gone Very Wrong. The FED is Now Counter Productive to America's Future.
Author: Andrew M Molchan
Date: Mon September 10th, 2012
Sept 10th 2012. ANDY'S UNPOPULAR INSIGHTS. It's Time to Find the Courage to Admit that the FED is a Counter Productive Failure - And Worse.
Today's Wall Street Journal Headline is, "Investors Corner Fed." The headline is wrong, it should be, "Fed Corners Investors." Or, more accurately, "The Fed is Long-Term Screwing ALL Average Stock Holders to Make the Carry-Trade Gordon Gekkos Richer, and the Corporate Plunderers Richer."
The FED has made two groups very rich. (1) The "Carry Trade" Gordon Gekkos, who borrow FED money at 1/2 of 1%, and then Buy Corporate AAA Bonds (that are insured against non-payment) that Pay 3% interest. The "Bond Carry Trade" between borrowing at .5%, and then buying 3.0% Bonds with the money is Five Hundred Percent (500%) Gross Profit.
It's 3rd Grade Math: it's Not 2.5% percent profit, it's 500% gross profit on your expenses. Not bad if Gordon starts by borrowing 50 billion dollars.
The second group ( group 2), that the FED had made ever richer are the big Corporation Plunderers who have been, and still ARE, raping the companies they manage. They borrow a lot of money from the FED, or the Gordon Gekkos who are getting it from the FED. Then they pay themselves multi-million dollar, or multi-billion dollar salaries and/or bonuses because, "The Corporation has so much cash from good management."
Sure the publically traded, big corporation CEO's pay tax - so what? If they want a hundred million dollars, they have the corporation they control give them a bonus for two hundred million. They pay 100 million in tax - and they have the 100 million they wanted.
Most of the "investors" who are the theoretical owners of the Corporations are only holding the stock for a few minutes. They could give a flying f**k about what happens to the Corporation in five years. Most "investors" are ONLY interest in what's going to happen to their stocks in the next five minutes.
The US Federal Reserve is a totalitarian dictatorship. Nobody ran for office. Nobody stood for election by the people. The US FED is North Korea.
The FED was deliberately made a dictatorship so that when things get tough (like NOW), the FED would supposedly have the "dictatorship protection" to do the HARD and Painful things necessary to get the economy back on track. A standard historical idea, however, like most dictatorships the FED in the real world has gone VERY wrong.
Rather than have the "Guts," and the "True Grit" to do the HARD THINGS while being protected by dictator status. The FED has turned into an ass-kissing, c**k-sucking, collection of faggot whores.
Congress, the President, the total Federal Government are now COVERED by the FED faggot whores. NOBODY in the Federal Government has to make any hard decisions about anything. There hasn't been a Federal Budget in years, but who cares? A simplified new tax? Why bother? Tort reform? Why bother? Cutting stupid expenses and stupid wars? Why bother? Corporate and social law reform to start a 2nd American industrial revolution? Why bother? When any part of the Federal Government has a money problem - it's No problem. Call up the FED faggot whores for another Trillion Dollars of Queer Money and it will be in your bedroom in an hour.
So, have the "Investors Cornered the Fed" like the WSJ says? Or has the Fed made its Whore House America's new home? We know the answer. The sign over the New York Stock Exchange should really be: "Queer-R-US And We're Lovin' It."
Will this happy land of FED Queer Money gayety last forever? Absolutely - just keep telling yourself that this time is different.