Fed will launch ‘QE4’ before year-end to stem Street cash crunch.
I have reported on www.alancurrie.com in the past that central bank “Quantitative easing” policy since 2009 has only caused the financial system to become more fragile and the intended purpose of injecting financial liquidity into “main street” has not worked. Because all the money went into Wall Street and Big Banks making the .1% financial elite wealthier.
This is why we have not seen “obvious” inflation or Hyper Inflation because the money did not end up into your pocket, but into the super rich. There has however been huge increases in the average house price in last 10 years and elite assets like paintings, luxury yachts, luxury houses, cars and collectables.
For example a 1962 Ferrari 250 sold for $48.4 Million USD, 1 bottle or rare Scotch Whisky sold for 1.2 million pounds, and Leonardo da Vinci’s Salvator Mundi sold in Christie’s for $450.3-million in NYC. The inequity between the rich, middle class and less advantaged has now become a gapping chasm.
Coming up to Christmas holidays the JetStar employees are on strike asking for a 13% wage increase. You might think that’s excessive until you realise that the JetStar crew get paid $41 per hour but the CEO of Qantas Alan Joyce (Qantas the owner of Jetstar) gets paid $9000 per hour! The Jetstar CEO is only willing to accept a 3% wage increase, however the real cost of living is much higher.
Back to the FED. You may remember that on Christmas eve 2018 there was a sudden 653 point drop on Wall Street – immediately the US Treasury Secretary called all the top 6 Bank CEO’s to make sure the market had enough liquidity, it was a very strange reaction that spooked the markets even more.
Our financial system has become more un-fair, fragile and much of the blame has to rest with Central Banks, easy credit and deep and systemic corruption in our banking system.
Two interesting facts are that 3 versions of a central banks in USA were rejected by the the founding fathers and US Presidents. Today only two countries remain in the world without central banks controlled by the Rothschild dynasty.
After listening to a new book ” Treasure Islands – Tax Havens and the men who stole the world” I have come to realise that most of the worlds global finances flow through international offshore tax havens. The size of the financial flows are incalculable because of all the secrecy and the fact that global banks and governments are involved.
The Australian Government has recently proposed a $10,000 AUD cash ban legislation to supposedly stop the black economy, however the very accounting firms who have suggested this legislation also help financial institutions and corporations to “legally” avoid tax via these offshore jurisdictions.
On 2nd Dec MP Bob Katter introduced legislation into the house “Australian Bank Government Audit Bill” it is worth reading Mr Katter short intro to the bill. This is one short quote “Ernst & Young gave a clean bill of health to Lehman Brothers in July 2008, two months before its bankruptcy precipitated the global banking crash. The New York Attorney-General accused Ernst & Young of helping Lehman Brothers engage in a massive accounting fraud.“
The CEC media report recently posted“Westpac is arguing with the anti-money laundering (AML) authority AUSTRAC over whether responsibility for the bank’s money laundering crimes lies with the board and senior executives, or middle management, according to The Australian on 9 December.“
The Bank of International Settlements BIS in Switzerland has been warning for some time about the fragility of the banking system. The latest BIS Dec 2019 report says “FX trading returned to its long-term upward trend, rising to $6.6 trillion per day in April 2019. Interest rate derivatives trading departed sharply from its previous trend, soaring to $6.5 trillion.”
Warren Buffet once said “In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”
The encouraging sign in all this mess is that the average person is learning the truth of what has been happening and is starting to look for ways to do something about the problem. The global elite are worried and continue to push forward, but my hope is that Freedom will prevail. Our “Trump” card (pun intended) is that the creator and defender of Truth, Justice and Freedom will defend anyone who wants to fight for these principles.
By Alan Currie