In less than a month 17 million Americans have applied for unemployment, while the Federal Reserve has focused on bailing out board rooms, billionaires, bankers and builders @ the cost of the enslaved taxpaying people living in the USA?

Jerome Powell’s un-elected US Federal Reserve, in less than a fortnight, has elevated moral hazard to new levels of insanity with the launch of a $2.2 trillion round of bailouts for bankers, billionaires and builders, whom work with human trafficking rings.

As part of this bailout, the US Treasury is providing half a trillion dollars in backstop cash in case some of the Fed’s risky loans explode – which they will.

Powell’s Fed has become nothing more than a gigantic, rogue hedge fund that feels it has a lawful mandate to buy any assets not nailed down.

In Thursday’s surprise announcement, Powell’s Fed will buy corporate debt – including the riskiest corporate debt in existence, junk bonds – as part of another, larger $2.3 trillion rescue package for banks, businesses, builders and municipalities.

Junk bonds are such garbage that pension funds are prohibited by law from purchasing them. In the end, junk bond collateral will fail miserably to “protect taxpayers from losses.”

Bailing out foreign banks is not in the Fed’s mandate, nor is buying municipal bonds, but it continues to do so – the Fed is socializing hedge fund investments gone bad, placing taxpayers at risk.

Not only are we bailing out the rich, but we also won’t even know the details. Buried deep within the nearly 1,000-page CARES legislation is a clause allowing the Fed to shield its bailout activities from all public scrutiny.

These un-elected Fed officials do not want to have to deal with the same public scrutiny, banker bashing and inquiries it stonewalled after the 2008 bank bailouts. CARES allows the Fed to conduct secret meetings without having to keep records of those meetings?

The Federal Reserve has appointed the world’s largest hedge fund, LarryFink’s BlackRock, to manage its new multi-trillion-dollar corporate bond bailout.

Fink was an early promoter of the mortgage products that caused the 2008 crisis, which he then made a fortune helping to clean up. It’s amazing that the Fed now seems to be illegally buying junk bond ETF’s from Fink’s BlackRock.

Maybe the Fed is bailing out BlackRock and hiding it? Makes you wonder what other firms were involved in that tender and what type of conflicts of interest may exist between Blackrock, the Fed and all of the employees of each. Unfortunately, we will never find out.

Debt is never a bad thing if it is used to create organic growth or fund infrastructure development that creates opportunities and employment.

Debt is dangerous when used to develop grotesque weapons of mass financial destruction by structuring synthetic derivative products that use leverage of 300 to 1 or more – meaning that $1 million can control $300 million in assets.

The majority of the US’ massive debt pile was accrued over the last twelve years, when the missteps of the Federal Reserve’s 1998, 2001 and 2008 bailouts took interest rates to zero.

This devastated prudent savers, created the most significant wealth inequality gap in history, and generated the largest pool of Wall Street billionaires before and after each crisis and bailout.

The Federal Reserve bailouts have destroyed capitalism and they have never been held to account. The Fed’s actions have created an adulterated form of capitalism that, as far as financial oligarchs are concerned, has no losers, except taxpayers and future generations.

These bailouts are plunder on a massive scale, enabled by Washington DC’s political class. This is not capitalism or democracy; it is a modified oligarchy.

RT. com / ABC Flash Point News 2020.

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Booby Trap
Booby Trap
Guest
11-04-20 11:18

And again the fitly rich are stealing the people’s money to get a hard on?