The FedRes Hasn’t Solved Anything… All It’s Done Is Set Up an Even Bigger Crisis
- The FedRes, ECB, BOE, BOJ, IMF … and practically all central banks are privately owned Illuminist corporations. The owners are the Satanic bloodlines, chiefly the Old Black (as in Evil) Nobility of Europe headed by the British Monarchy.
– - Their objective isn’t world peace, prosperity and love for all people. Their endgame is to lay the foundation for the coming of the Anti-Christ to lead the Luciferian New World Order, World Government, Global Supra-National Central Bank –> ‘666’
– - Why is the FedRes setting the world up for an even bigger collapse? That is the plan: global economic, financial and monetary collapse; and WW3! At the end of which, a Man of the Hour, son of perdition, fake messiah, the Anti-Christ, the bringer of false peace, the white horseman of Revelation 6 will appear and “save the world”.
- The FedRes Hasn’t Solved Anything… All It’s Done Is Set Up an Even Bigger Crisis
by Phoenix Capital Research, www.zerohedge.com
The 2008 Crisis was caused by too much debt/ leverage, particularly in the form of illiquid derivatives (mortgage backed securities get the most attention, but the derivatives market was well over $800 trillion at the time of the crisis). To combat the financial crisis, the Fed did three things:
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1) Cut rates to zero.
2) Abandon accounting standards.
3) Engage in Quantitative Easing/ QE.
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None of these policies represented “solutions” to the crisis. In fact, you couldn’t even accurately argue that they represented “containment.” What the Fed did was permit the very cancerous securities that nearly imploded the Wall Street banks to spread beyond from the private sector onto the public’s balance sheet.
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You cannot cure cancer by letting it spread from one area of the body to the next. You cannot solve a termite problem by letting the termites move somewhere else in a house. So how could one argue that you could solve a financial crisis by letting the problems spread elsewhere in the financial system?
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Consider mere leverage levels. Going into the 2008 crisis, the investment banks sported leverage levels in the 30-40s. Lehman was leveraged at 31 to 1. Morgan Stanley was leveraged at 30 to 1. Merrill Lynch peaked out in the low 40s.
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Today, the Fed’s has $57.6 billion in capital and $4. 4 TRILLION in assets. That represents a leverage level of 75 to 1.
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The Fed will argue that this leverage does not matter because it can print money to increase its leverage levels. This is technically true, but doesn’t alter the fact that the Fed has backed itself into a corner by buying up over $3.5 trillion worth of stuff… which the Fed has no idea how to exit.
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read more.
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