Central banking, dishonest money, and big bank bailouts. Earlier this week we referred to these as a trifecta of depravity. We also noted how through the Fed’s mechanism of mass money creation financial assets – overwhelmingly owned by the wealthy – are floated up on a sea of debt.
The general public has been well aware for some time now that the Federal Reserve borrows money into existence and loans it to the Treasury. That secret’s been out of the bag for a while. What’s more, it’s espoused as an integral monetary policy. Manipulating interest rates down is supposed to stimulate demand and boost the economy…its actual effect has been to boost asset prices.
But if you were still under the supposition that the stock market is a last bastion of free market capitalism, unhindered and unfettered by central bank intervention, we must apologize. For we must forever end your bliss. You see, central banks the world over are creating money from nothing and using it to buy stocks. Continue reading
