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June 14, 2015

How Fed Scams 93% of American Households

Sprott Money News     

There was some particularly astute observation and analysis from Zero Hedge, concerning recent, stunning revelations from the Federal Reserve. What was “stunning” was not the content of those revelations. As Zero Hedge noted; it only told us what “we knew already”. No, what was so shocking was that the Federal Reserve was (finally) prepared to obliquely admit its real “policy”: rob-from-the-poor to give-to-the-rich.
Monetary policy currently implemented by the Federal Reserve and other major central banks is not intended to benefit one segment of the population at the expense of another by redistributing income and wealth. Any decisions regarding redistribution are considered to be the province of fiscal policy, which is determined by elected policymakers. However it is probably impossible to avoid the redistributive consequences of monetary policy-making. [emphasis mine]
There are numerous observations to be made concecerning this very slippery mea culpa. We start with the fact that while the Fed now openly admits the wealth-redistribution effect of its (insane and criminal) policies, it refuses to identify who is on the receiving end of this gravy train. Let’s stipulate this, in more precise terms.
The rich are still getting richer…and everyone else is getting hosed.
Pew’s latest data looked at how American households have fared since the depths of the recession.
The richest 7% of American households—8 million with more than $836,000 in net worth—did quite well from 2009 to 2011.
Their average net worth rose from $2.5 to $3.2, a 28% jump.
The other 93% of American households, meanwhile, lost out.  [emphasis mine]
There we have it, the exclusive beneficiaries of the Federal Reserve’s monetary policies: 7% of the population; 8 million “haves”, 310 million “have-nots”. Of course its common knowledge that within this privileged 7% that the wealth of the Top-1% has been soaring – and at an unprecedented rate. They now “have” more than the other 99% of us, combined.
But note how these wealth-thieves try to get themselves off the hook, as they steal for their Masters:
Monetary policy…is not intended to benefit one segment of the population at the expense of another by redistributing income and wealth…However it is probably impossible to avoid the redistributive consequences of monetary policy-making.
They weren’t trying to make the Top-1% wealthier, and at a rate never before seen in history; it was merely “probably impossible” for them to do anything else. In criminal law; this distinction (even if we believe the Fed-heads) is the difference between convicting someone of murder, or ‘merely’ convicting them of manslaughter.
And let’s be explicit here: a crime has been committed. The Federal Reserve also acknowledges that, “Any decisions regarding redistribution are considered to be the province of fiscal policy, which is determined by elected policymakers.” Only our elected officials are legally allowed to engage in wealth-redistribution, while (supposedly) representing us. When these unelected, private bankers do so; they are committing a crime: robbing-from-the-poor to give-to-the-(very) rich.
However, we learn later that the Federal Reserve’s claim that this massive wealth gravy-train for the Top-1% is accidental is nothing but a thinly veiled lie. This part of the revelation comes in two parts. First the Federal Reserve acknowledges that its high-inflation monetary policies will always benefit those at the top.
One could also argue that, in the long run, the redistributive consequences of monetary policy might average out. In other words, if the same type of households that tend to gain…during economic expansions also tend to lose…during recessions, then over the time the average effect could be wash.
Understand what is really being said here. Inflation benefits the top-7% (and mostly the top-1%), and deflation benefits the Little People, i.e. the bottom-93%. But going back to (at least) 2002; the Federal Reserve has been on-the-record, on a near-daily basis, vowing to try to make sure we never experience deflation, as expressed in this speech from none other than B.S. Bernanke himself.
Deflation: Making Sure “It” Doesn’t Happen Here
What is “it”? Seeing life actually get better for the Little People. According to the (now) confessed criminals of the Federal Reserve; it’s not good enough just to steal from the Little People and give to the Top-1% most of the time, they want to steal from us all of the time.
Note, also, how this finally/belatedly echoes what has been said in previous commentaries. It is deflation, not inflation that provides both genuine healing for economies and genuine prosperity for the people – everyone except for the Thieves at the top. And this is what the Fed criminals vow to prevent.
Let’s summarize the confession to this point. We first have the criminals themselves acknowledging that with respect to their high-inflation monetary policies it’s “probably impossible to avoid” those policies benefiting the Top-1%, at the expense of nearly everyone else. We also have them publicly stating, again and again, that they will do anything in their power to make sure this ‘accident’ continues in perpetuity.
We’re not trying to steal from the Little People to give to the Top-1%. We will just do anything and everything in our power to make sure it’s “probably impossible” for anything else to happen, ever.
If this new confession was the limit of our “case” against the Federal Reserve criminals, a prudent prosecutor may hesitate before initiating criminal proceedings. However, we have much more evidence of guilty (i.e. criminal) intent: years and years of deliberate deceit, as the Fed-heads try to hide this ‘perpetual accident’.
First we have the Federal Reserve (via the absurd statistics which it concocts in collusion with the U.S. government) asserting that inflation is “low”, when very obviously it is extremely high. With both food costs and housing costs spiraling higher at the fastest rate in our lifetime (the two largest cost-components of most household budgets); obviously in the real world we have double-digit inflation.
But this is only ½ of the Federal Reserve’s inflation lie. The second, and even more-odious half of their lying is the claim that this double-digit inflation is “too low”. To understand the evil behind this lie; we must assemble our puzzle-pieces with precision.
First of all; inflation is the economic equivalent of cancer. Even the Federal Reserve now admits this, although it frames it in terms of parasitism: its high-inflation policies benefit the top-7% and blood-suck the bottom-93%. Thus it is impossible for inflation to ever be “too low”. This is a deliberate, malicious lie, especially in conjunction with their serial lies concerning the inflation rate.
Now let’s return to the original confession. We have the Fed-heads now admitting that inflation benefits the Privileged Class (the top-7%, and primarily the Top-1%) and harms everyone else: it robs-from-the-poor and gives-to-the-rich. Ergo, the higher the rate of inflation, the faster the Fed robs-from-the-poor and gives-to-the-rich (something else we already knew). But we also have the Federal Reserve on record, again and again and again, expressing their frustration that inflation is “not high enough”.
It’s not enough for these criminals to be deliberately engaging in stealing from the Little People and giving to the Top-1%. It’s not enough for them to do everything in their power to perpetrate this stealing all of the time. They have also made it clear that they want to steal as much as they can, all of the time.
However, there is one further, important facet to the Federal Reserve’s confession: it’s not alone.
Monetary policy currently implemented by the Federal Reserve and other major central banks is not intended to benefit one segment of the population at the expense of another… [emphasis mine]
In other words; it’s not only the Federal Reserve which is engaged in this policy of ‘accidentally’ stealing as much as it can from the Little People, all of the time, and giving the proceeds of this crime to the Top-1%. Other central banks belonging to the Western crime cabal are also engaged in (and equally culpable for) the same ‘accidental’ stealing in their own regimes.
The Top-1% are stealing from nearly all of us, all of the time – and they have now stolen most of our wealth. Their primary tools in this systemic theft of wealth are their lackeys in the central banks. And now the lackeys have confessed to the crime.
Courtesy Sprott Money News        
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