Bernanke's testimony has hinted at the Fed doing "something" to stimulate the economy. This has engendered thoughts of another round of QE (Quantative Easing) low interest loans to banks becoming a reality. This would be GREAT news fo the Banksters, but not so good for us, the consumers and the unemployed. The problem is, the Quantitative Easing we've seen so far has done little of note other than allowing banks to receive near 0% loans and then using that money to buy $100 BILLION in Treasury bonds (with an interest rate currently of 2.60%--) in one month alone in 2010!
So then what are the banks doing with all their cash?Look at the chart below showing banks have been buying up US Treasury Bonds like crazy in the same time period as mentioned above. In the last month, they have added $100 billion of US Treasury Bonds to their portfolios. If the extent of this bank buying of Bonds is similar to what happened in the 1990s, it is estimated that the buying potential could exceed $1 Trillion. This is an enormous figure.
So instead of lending money to companies and small businesses to grow the economy with the money as it was intended to be for, the banks have used it to further inflate their bottom lines. How do we stop this from happening again as these Bankster Pigs line up at the trough for the next round of Quantitative Easing? I have a simple solution: If a bank wants a low interest loan from the Feds, it must show where an equal amount has been loaned out to business within the last 30 days. Other than that, I think we've Fed the Pigs enough! (Pun intended!)
Another factor that will come into play if Bernanke decides to once again make the near0% interest loans available to Banks: the bad publicity the actions of the banks have generated by borrowing the money and sitting on it, or using it to buy these bonds. If this is done shortly before the 2012 November election, he could swing the votes towards Romney as public perception will be that this is something that President Obama somehow endorses. To be certain, the Romney camp will certainly do their best to spin it this way in order to capitalize on the anti-banker resentment that has swept the Nation since they crashed the economy. With little of the low-interest Fed loans tickling through the Banks fingers to Main Street, it would be viewed as just another bailout to those who need it the least--the Bankster millionaires...
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