Black People : Federal Reserve's new ponzi scheme, that we will pay for

Discussion in 'Black People Open Forum' started by Ankhur, Nov 9, 2010.

  1. Ankhur

    Ankhur Well-Known Member MEMBER

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    They call it Quantitative Easing,

    actualy it is easing chedda from our pockets intop the pockets of the knuckas that got bailed out, heres the con;

    The private non governmental concern called the Federal Reserve, will gove the banks 600 billion which they will pay back to the reserve at 3%

    and we wind up covering the interest
     
  2. Ankhur

    Ankhur Well-Known Member MEMBER

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    On Wednesday, the Federal Reserve said it will pump $600 billion more into the US economy and keep interest rates at historically low levels. The short-term impact of the Fed’s move, known as quantitative easing, has been a jump in stock prices across the globe, but many nations have accused the US of waging a currency war by devaluing the dollar. Brazil’s president-elect Dilma Rousseff said, quote, "The last time there was a series of competitive devaluations, it ended in World War II."

    China has accused the US of uncontrolled money printing. By devaluing the dollar, the Fed is cheapening the price of US exports and making foreign imports more expensive. In addition, the low interest rates are encouraging US corporations to make massive investments overseas, cheaply buying up foreign real estate, natural resources and stock.

    AMY GOODMAN: Our next guest, Michael Hudson, says finance has become a new form of warfare. Michael Hudson is Distinguished Research Professor at University of Missouri, Kansas City. A former Wall Street economist, he is the author of many books, including Super Imperialism: The Economic Strategy of American Empire.

    Michael Hudson, welcome to Democracy Now!

    MICHAEL HUDSON: Thank you.

    AMY GOODMAN: Why warfare?

    MICHAEL HUDSON: Well, the object of warfare is to take over a country’s land, raw materials and assets, and grab them. And in the past, that used to be done militarily by invading them. But today you can do it financially simply by creating credit, which is what the Federal Reserve has done. It’s created $600 billion. It hasn’t gone into the economy. The head of the Fed is known as "Helicopter Ben" because he talks about dropping money into the economy. But if you see helicopters, they’re probably not your friends. Don’t go out and wait for them to drop the money, because the money is all going electronically into the banks.
    And the Fed has said, we want to give the banks so much money that they will lend it out so you can begin to bid up prices on real estate again and pull the banks out of the real estate negative equity that it’s in. So the purpose, according to the Fed, is to raise the price of real estate, to inflate asset prices. But that’s not happening. The actual banks have lent less today than they did in 2007. So the money is going abroad. And it’s going abroad not really to buy foreign companies so much, but to speculate in currency.

    Now, the Fed and the Congress, two weeks ago, said, "We want China to raise its currency by 20 percent." This would create billions and billions of dollars of bonanza for Wall Street banks, and it would enable them to earn their way out of debt by essentially looting the China central bank, the Brazilian central bank, the Turkish central bank and the other central banks, because you can now borrow money in America at one percent. So you’d put down, let’s say, a billion dollars of your own—a million dollars of your own money, borrow $99 million of the bank’s money—that’s $100 million. You would buy Chinese currency, RMB, for $100 million. You then say, "Raise your currency by 20 percent," which is what the Fed has asked them to do. That means that your million dollars now has turned into a $20 million gain, because $100 million is now worth $120 million. You’ve made a 200 percent profit. And for Wall Street, they deal in billions, not millions. And so, this would enable the banks to make up their money by buying out, essentially, foreign currency. They’re doing the same in Australia. It’s currency gamble.

    JUAN GONZALEZ: Well, and meanwhile, the impact, because obviously this decision was made the day after the elections at the Fed meeting, they saw what the political landscape was. There wasn’t going to be any kind of stimulus coming from Congress, so they had to come up with a stimulus for Wall Street the day after the elections. But the impact on the American people of maintaining these historically low interest rates—you know, as we were talking earlier before the show, if you have a little bit of money in a savings account right now, you’re getting virtually no interest. So you’re, in essence, being pressured to end up going into the stock market to be able to get any kind of return on your money—those who still have savings. The same thing with the pension funds. What’s happening to the American people as a result of this same kind of policy?

    MICHAEL HUDSON: Well, if they have money to put in pension funds or savings, they’re only able to get about one percent, if they keep it safe. Otherwise, they’re taking a risk in the stock market. But the key is not simply lowering interest rates.
    The idea is to flood the economy with credit so the banks will lend out more debt. And if the Fed’s policy works, then housing prices are going to go back up so high that most consumers are going to have to pay 40 percent of their income for housing. They’re going to have to pay more money for credit card debt. The purpose is to help the banks make money at the expense of the economy. It’s not to help the economy at all. That’s the really important thing.
    When they say the economy, they mean—the Fed means its constituency: the banks. And the banks’ product is debt. And that’s what they’re trying to produce.



    www.democracynow.org
     
  3. Bxblasta

    Bxblasta Well-Known Member MEMBER

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    What the federal reserve is doing is simply underminding the currency which we use, the dollar. The bailout Obama approved did all that it could do, so why would the central bank oops I mean the federal reserve pump another 600 billion into the economy? Easy! Further deflate the value of the dollar, which simply means it will take more of our money to buy food, water, and gas, and other common essentials. The name of the game is control and power, isn't that the European way?
     
  4. Ankhur

    Ankhur Well-Known Member MEMBER

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    Like you say the central banks!!!!
    and they are all based in Europe

    more reason for at least some economic form of Black Nationalism
     
  5. Bxblasta

    Bxblasta Well-Known Member MEMBER

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    Truthfully i dont see black nationalism happening anytime soon. Mental disease is rampant among our people, European imperialism has made sure we stay divided at every crossroad. The small groups of us that know how these central banks work will be the ones to advance in this new age, a majority of our people will fall for the okey doke because of our collective lack of knowledge and viral ignorance.
     
  6. Ankhur

    Ankhur Well-Known Member MEMBER

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    No you are right Black Nationalism will not happen soon, however regarding the collective mentality, i stand to differ fromthe mindset of youth who realy didnt give a ph, to young men and women who are hardon their children about school and homework, are not drinking the Washington okie doke, or the Jay Z Illuminati proselytization,
    to the mindset of very conservative Blacks on fire in support of the Fredom party,
    at least that is what I see here in NYC.

    What is imperative is a small form of at least economic Black nationalism to be established

    Now I have seen with my own eyes how those of African descent act in an emergency.

    During the black out a few years back here in NYC, haters crimies, churchianity folks, street people, squares, crack heads, winos, and gangstas, dropedd all of their baggage for 3 days and nights and the aspects of slave mentality practicialy vanished as Crown Heights, and Bed Stuy,

    and during the darkest hours turned into the model of the African village without leadership
    with each and every working together with unconditional love to help each other and make sure that the children and elderly were safe and comfortable.

    It was something to see and experience

    As far as knowledge and groups, here in BK

    "Zeitgiest" is an underground classic and is as popular with grassroot folks as Tyler Perry movies.
     
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