Brain Damage – And, Uh, QE Is Working (I’ll Explain)!

“If QE is about the economy and jobs, why is more than 50% of the money being printed going to – and sitting in – the Fed bank account held by the U.S. subsidiaries of foreign-owned banks?” – Quote

• Brain Damage – And, Uh, QE Is Working (I’ll Explain)! 
  by http://truthingold.blogspot.sg/ 
  The Fed has lost control of the markets and Wall Street economists, media analysts and most blog writers suffer from tragic and terminal mental disabilities.
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  First off, I’d like to say that I’m really quite amazed at the degree of “surprise” over the FOMC policy statement yesterday.  Anyone who understands the nature of QE and why it’s being done knew back in May when Helicopter Ben first mumbled the word “taper” that the Fed wouldn’t reduce QE.  Given the response reflected by the media and the fact that 100% of Wall Street’s brain trust expected a $10-15 billion “taper,” I’d say that every single Wall Street economist is brain damaged.  What he hell are they getting paid for when they get their forecasts so egregiously wrong every god damn week?  Seriously.
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  And now I’m seeing articles which are reporting that now the big debate is the timing of an eventual taper.  Einstein is credited with attributing insanity to the act of making the same mistake repetitively.  I guess Wall Street, and the media who regurgitates Wall Street’s vomit, must not only be brain damaged, but they all must be insane as well.  Analyze this you brutes:   Ben Bernanke said – almost verbatim – that the Fed will reduce its stimulus policy when the unemployment is below 6.5%.  He specifically said that  “we are tied to the data, we don’t have a fixed calendar schedule” and that a low interest rate policy will be in effect until unemployment goes below 6.5%.  The Fed is tied to the data not the calendar.  Bold, italics, underlined.  If you know how to use google you can find the exact quote from Bernanke’s mouth.  If Wall Street’s overpaid finest – and paid with taxpayer largesse, I might add – wants to figure out when the Fed will “taper,” then they should spend their time figuring out what it will take to get unemployment below 6.5%.  Here’s my call:  we won’t see that number in our lifetime.
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  Now I’ll explain for Zerohedge, CNBC, Fox Business, Bloomberg News and ALL the severely mentally challenged Wall Street analysts exactly why the Fed is printing money.   Follow the f#cking money.
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  The Fed is printing money in order to keep the banks – both the domestic too big to fails AND the foreign too big to fails – from failing.  That’s the policy.  In fact, I believe that in the whirlwind of wealth transfer in 2008 – led by the Obama Government – that Congress may have even legislated into law the too big to fail idea.
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  If QE is about the economy and jobs, why is more than 50% of the money being printed going to – and sitting in – the Fed bank account held by the U.S. subsidiaries of foreign-owned banks?  Here’s the money trail.   Since “QE” began, the Fed has printed up roughly $2.8 trillion dollars.  I’ve gone through this exercise in past posts, but here’s the updated numbers.  Of that $2.8 trillion,  roughly $2.3 trillion is sitting in the banks’ “excess reserve” account at the Fed.  Of that $2.3 trillion, $1.193 trillion has gone to U.S. banks charted in this country.  However, $1.225 trillion has gone to the foreign banks with operations in the U.S.  You can find these numbers in the Federal Reserve Board report on Assets and Liabilities in the United States, Table H.8 – here’s the pdf for you:  LINK
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  read more!

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