The Great Fed Financed U.S. Dollar Decline and Stock Market Rally of 2009

By: Prof_Rodrigue_Trembl

Stock-Markets
Best Financial Markets Analysis ArticleThe liberty of a democracy is not safe if the people tolerate the growth of private power to the point where it becomes stronger than the democratic state itself. That in its essence is fascism — ownership of government by an individual, by a group or any controlling private power." Franklin D. Roosevelt (1882-1945), 32nd and longest-serving US president “This great and powerful force—the accumulated wealth of the United States—has taken over all the functions of Government, Congress, the issue of money, and banking and the army and navy in order to have a band of mercenaries to do their bidding and protect their stolen property.” Senator Richard Pettigrew, Triumphant Plutocracy, 1922 'I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered..' Thomas Jefferson, (1743-1826), 3rd US President, 1802

The U.S. national debt clock [http://www.usdebtclock.org/] is clicking and it is fast approaching the $12 trillion mark, all the while the Fed (less a central bank than the banks' Bank) is printing new money like crazy and lending it to its client banks at close to zero interest rates (i.e. at negative interest rates). What is wrong with this picture? It simply means that most Americans are losing big at this game, but a handful of mega-banks and their affiliates are raking in tremendous amounts of money in easily made profits.Indeed, the Federal Reserve’s balance sheet has more than doubled since August 2007, going from $870 billion to more than $2 trillion. It is expected to keep growing as banks avail themselves of the cheap funds the Fed made available to them. The Fed, indeed, has the unique ability to create new dollars (paper currency) for the accounts of assets (good or bad) that it buys from banks, the Treasury, or other entities. This increases the monetary base (the sum of currency plus total banking reserves), and banks through their lending can expand this money supply even further. [http://www.federalreserve.gov/releases/h6/Current/]