The Federal Reserve is at the doorstep of its 100th anniversary. As most everyone by now knows, it is a private institution, not a government entity. Yes, it maintains some charade of being accountable, but in the end, it is independent and serves a small group of financiers. Its goal is to perpetuate the illusion of prosperity while keeping markets stable and orderly, and the populace passive. Who benefits the most from this? Those with tremendous financial resources.
Many Americans still think the U.S. Constitution is the guiding document. Nope! It has slowly been replaced by all the thousands of laws and statutes passed by Congress. Don’t forget the thousands of Executive Orders signed by the various presidents. The recent NSA expanded surveillance was based on a 1979 ruling by the Supreme Court. See: http://www.bloomberg.com/news/2013-12-18/nsa-phone-plan-could-land-in-supreme-court-over-1979-precedent.html The use of a secret court has allowed circumvention around the constitutional rights of citizens. Once you open Pandora’s box, there is no closing it. You then must tell lie upon lie until the illusion is so massive, it will pop. Back then, the only cell phones were found in wealthy peoples’ automobiles. They cost about $300 per month plus a healthy per minute charge. You and I did not have the privilege to ride around and talk on the phone. Back then, most communication was face-to-face and the court case focused on the recording of the phone numbers, not the content, and that we should not expect privacy. Huh? I thought they called our phone lines “private lines” back then… versus “party lines”. For those younger among us, “party lines” were phone lines back in the 1950’s where several customers were connected to the same phone line service. If you wanted to use the phone, you picked it up to see if anyone was talking. If so, hang up and wait a few minutes. It was cheaper than a “private line”. Those were the telephone company’s nomenclature for the two types of service. I guess the private line was not so private after all. It was simply an illusion of privacy.
Gold and silver continue to be suppressed. This is another reality most everyone knows about in the financial arena. The only real question one should ask is how much longer can those in power suppress the price. For those of you who bought gold at $850 per ounce, the current price of $1,194.50 isn’t a bad return on investment. Those who bought above $1,200 should just be patient and know that the perpetual printing of money will ultimate cause a Great Reset and you will wake up one morning to a notable appreciation of your investment. China knows it, Russia knows it, and the Fed knows it. It is simply a matter of time.
The Interest Rate market continues its illusion as well. The multi-trillion dollar derivatives market is the ultimate digital casino. It is unregulated by an outside entity. They regulate themselves thus if an issue arises, they simply rework the rules to maintain orderliness while the destructive power keeps building.
The Federal Reserve has begun its tapering by only printing $75 Billion versus $85 Billion. However what they don’t tell you is their other means of stimulating the market may offset this reduction. They have the ability to loan anybody any amount of money at any interest rate they want. If you are on the “inside”, you could borrow money at 10 basis points below the market and buy government securities and use them as collateral without any other recourse. You make 10 basis points without any risk. The U.S. Treasury completes its auction without issue. Since the Fed has no requirement for transparency, no one is the wiser. Pass the popcorn, this NFL game is getting more interesting! Who cares about all of these shenanigans? Just keep my TV cable streaming more entertainment and we will all be happy.