Intentionally Engineering a Financial Crisis?

Can the Federal Reserve be Intentionally Engineering another Financial Crisis?

After reading this rather lengthy report (Here, I only present short excerpts for discussion) you will have many reasons to investigate further to uncover the names and transactions of the individuals involved to carry out the financial policies of the Federal Reserve:

http://research.stlouisfed.org/fred2/data/EXCRESNS_Max_630_378.png
Because the banks continue to build up their excess reserves, instead of lending out money:

http://www.washingtonsblog.com/2013/06/81-5-of-money-created-through-quantitative-easing-is-sitting-there-gathering-dust-instead-of-helping-the-economy.html

81.5% of Money Created through Quantitative Easing Is Sitting There Gathering Dust … Instead of Helping the Economy

“Jim McTague, Washington Editor of Barrons, wrote in his February 2, 2009 column, “Where’s the Stimulus:” “Increasing the supply of credit might help pump up spending, too. University of Texas Professor Robert Auerbach an economist who studied under the late Milton Friedman, thinks he has the makings of a malpractice suit against Federal Reserve Chairman Ben Bernanke, as the Fed is holding a record number of reserves: $901 billion in January as opposed to $44 billion in September, when the Fed began paying interest on money commercial banks parked at the central bank. The banks prefer the sure rate of return they get by sitting in cash, not making loans. Fed, stop paying, he says.”

Shortly after this article appeared Fed Chairman Bernanke explained: “Because banks should be unwilling to lend reserves at a rate lower than they can receive from the Fed, the interest rate the Fed pays on bank reserves should help to set a floor on the overnight interest rate.” (National Press Club, February 18, 2009) That was an admission that the Fed’s payment of interest on reserves did impair bank lending.”

“The next month William T. Gavin, an excellent economist at the St. Louis Federal Reserve, wrote in its MarchApril 2009 publication: “first, for the individual bank, the risk-free rate of ¼ percent must be the bank’s perception of its best investment opportunity.”

The Bernanke Fed’s policy was a repetition of what the Fed did in 1936 and 1937 which helped drive the country into a second depression. Why does Chairman Bernanke, who has studied the Great Depression of the 1930′s and has surely read the classic 1963 account of improper actions by the Fed on bank reserves described by Milton Friedman and Anna Schwartz, repeat the mistaken policy?”

Read full report: http://www.washingtonsblog.com/2013/06/81-5-of-money-created-through-quantitative-easing-is-sitting-there-gathering-dust-instead-of-helping-the-economy.html

Similar report:
The Federal Reserve Is Paying Banks NOT To Lend 1.8 Trillion Dollars To The American People
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5 comments on “Intentionally Engineering a Financial Crisis?
  1. RonMamita says:

    Engineering this for their own private agenda, rather than for the good of the People:

    “The justification for TARP — the Trouble Asset Relief Program that subsidized the nation’s largest banks — was that it was necessary to unfreeze credit markets. The contention was that banks were refusing to lend to each other, cutting them off from the liquidity that was essential to the lending business. But an MIT study reported in September 2010 showed that immediately after the Lehman collapse, the interbank lending markets were actually working. They froze, not when Lehman died, but when the Fed started paying interest on excess reserves in October 2008. According to the study, as summarized in The Daily Bail:

    . . . [T]he NY Fed’s own data show that interbank lending during the period from September to November did not “freeze,” collapse, melt down or anything else. In fact, every single day throughout this period, hundreds of billions were borrowed and paid back. The decline in daily interbank lending came only when the Fed ballooned its balance sheet and started paying interest on excess reserves.” – http://www.washingtonsblog.com/2013/06/81-5-of-money-created-through-quantitative-easing-is-sitting-there-gathering-dust-instead-of-helping-the-economy.html

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  2. RonMamita says:

    http://www.huffingtonpost.com/2009/09/07/priceless-how-the-federal_n_278805.html

    Priceless: How The Federal Reserve Bought The Economics Profession
    10/23/2009
    […]
    The Fed’s Intolerance For Dissent

    When dissent has arisen, the Fed has dealt with it like any other institution that cherishes homogeneity.

    Take the case of Alan Blinder. Though he’s squarely within the mainstream and considered one of the great economic minds of his generation, he lasted a mere year and a half as vice chairman of the Fed, leaving in January 1996.

    Rob Johnson, who watched the Blinder ordeal, says Blinder made the mistake of behaving as if the Fed was a place where competing ideas and assumptions were debated. “Sociologically, what was happening was the Fed staff was really afraid of Blinder. At some level, as an applied empirical economist, Alan Blinder is really brilliant,” says Johnson.

    In closed-door meetings, Blinder did what so few do: challenged assumptions. “The Fed staff would come out and their ritual is: Greenspan has kind of told them what to conclude and they produce studies in which they conclude this. And Blinder treated it more like an open academic debate when he first got there and he’d come out and say, ‘Well, that’s not true. If you change this assumption and change this assumption and use this kind of assumption you get a completely different result.’ And it just created a stir inside–it was sort of like the whole pipeline of Greenspan-arriving-at-decisions was
    disrupted.”
    It didn’t sit well with Greenspan or his staff. “A lot of senior staff…were pissed off about Blinder — how should we say? — not playing by the customs that they were accustomed to,” Johnson says.
    http://www.huffingtonpost.com/2009/09/07/priceless-how-the-federal_n_278805.html

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  3. […] 81.5% of Money Created through Quantitative Easing Is Sitting There Gathering Dust ($1.8 Trillion)… Instead of Helping the Economy. https://ronmamita.wordpress.com/2013/06/28/intentionally-engineering-a-financial-crisis/ […]

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  4. […] are controlling a unstable economy by propping it up with computer generated virtual currency (see: Intentionally Engineering a Financial Crisis?), but risk financial collapse from: rising interest rates, rising oil prices, troubled emerging […]

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  5. […] the policy makers, central planners and money cartel have made a global financial collapse certain. 81.5% of Money Created through Quantitative Easing Is barred from reaching Main Street, as the economy suffers from lack of funds for small business, […]

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