“Between Oct. 1, 2013, the first day of fiscal 2014, and Nov. 14—which was less than a month after Congress agreed to temporarily suspend the legal limit on the federal debt—the Treasury was forced to issue more than $1 trillion in new debt.
During that time, according to the Daily Treasury Statement, the Treasury issued $1,014,215,000,000 in new bills, notes, bonds and other securities.
The government needed this $1,014,215,000,000 to cover government obligations and expenses that exceeded the $255,080,000,000 it raked in through tax revenues during the same six-week period.
Where did that combined $1,014,215,000,000 in newly borrowed money and $255,080,000,000 in new tax revenues go?”
Via CNS News
“The Federal Reserve is creating hundreds of billions of dollars out of thin air and using that money to buy U.S. government debt and mortgage-backed securities and take them out of circulation. Since the middle of 2008, these purchases have caused the Fed’s balance sheet to balloon from under a trillion dollars to nearly four trillion dollars. This represents the greatest central bank intervention in the history of the planet, and Janet Yellen says that she does not anticipate that it will end any time soon because “the recovery is still fragile”. Of course, as I showed the other day, the truth is that quantitative easing has done essentially nothing for the average person on the street. But what QE has done is that it has sent stocks soaring to record highs. Unfortunately, this stock market bubble is completely and totally divorced from economic reality, and when the easy money is taken away the bubble will collapse. Just look at what happened a few months ago when Ben Bernanke suggested that the Fed may begin to “taper” the amount of quantitative easing that it was doing. The mere suggestion that the flow of easy money would start to slow down a little bit was enough to send the market into deep convulsions. This is why the Federal Reserve cannot stop monetizing debt. The moment the Fed stops, it could throw our financial markets into a crisis even worse than what we saw back in 2008.”
“Douglas Holtz-Eakin, the former head of the President’s Council of Economic Advisers, says that if Republicans and Democrats can’t agree on a budget with significant spending cuts, “spending just keeps going up in an uninterrupted fashion as far as the eye can see. By 2016, all you can see is unending red ink.”
He added that he has little confidence that the congressional budget committee meeting officially for just the second time on Wednesday will be able to agree on a budget for the rest of the fiscal year that puts the federal government on an economically sustainable course by the December 13th deadline.
“I don’t think they will come to an agreement. They’re very far apart – $100 billion- on discretionary spending,” Holtz-Eakin, now president of the American Action Forum (AAF), told CNSNews.com. Earlier this year, the Senate passed its first budget in four years, but it’s $91 billion higher than the House version.”
Via CNS News
“”It’s not just the Fed, it’s central banking,” Jim Rogers exclaims to Reuters in this brief clip, “this is absolute insanity.” As the world’s central banks, for the first time in history “try to debase their currencies,” simultaneously, Rogers cautions, “the world’s floating around on a huge artificial sea of liquidity.” Rogers goes on to explain that he doesn’t expect Bernanke to taper and fears that Yellen won’t either but hopes that she “knows that this is going to cause problems when they stop producing so much money.” His ominous warning, eventually “it’s going to dry up.. and when it dries up, we’re all going to pay the price for this madness.””
Via Zero Hedge
“A banker named Andrew Huszar that helped manage the Federal Reserve’s quantitative easing program during 2009 and 2010 is publicly apologizing for what he has done. He says that quantitative easing has accomplished next to nothing for the average person on the street. Instead, he says that it has been “the greatest backdoor Wall Street bailout of all time.” And of course the cold, hard economic numbers support what Huszar is saying. The percentage of working age Americans with a job has not improved at all during the quantitative easing era, and median household income has actually steadily declined during that time frame. Meanwhile, U.S. stock prices have doubled overall, and the stock prices of the big Wall Street banks have tripled. So who benefits from quantitative easing? It doesn’t take a genius to figure it out, and now Andrew Huszar is blowing the whistle on the whole thing.”
“We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street.
I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.
Five years ago this month, on Black Friday, the Fed launched an unprecedented shopping spree. By that point in the financial crisis, Congress had already passed legislation, the Troubled Asset Relief Program, to halt the U.S. banking system’s free fall. Beyond Wall Street, though, the economic pain was still soaring. In the last three months of 2008 alone, almost two million Americans would lose their jobs.
The Fed said it wanted to help—through a new program of massive bond purchases. There were secondary goals, but Chairman Ben Bernanke made clear that the Fed’s central motivation was to “affect credit conditions for households and businesses”: to drive down the cost of credit so that more Americans hurting from the tanking economy could use it to weather the downturn. For this reason, he originally called the initiative “credit easing.”
My part of the story began a few months later. Having been at the Fed for seven years, until early 2008, I was working on Wall Street in spring 2009 when I got an unexpected phone call. Would I come back to work on the Fed’s trading floor? The job: managing what was at the heart of QE’s bond-buying spree—a wild attempt to buy $1.25 trillion in mortgage bonds in 12 months. Incredibly, the Fed was calling to ask if I wanted to quarterback the largest economic stimulus in U.S. history.”
Via Zero Hedge
“Since President Barack Obama took office in 2009, the amount of outstanding federal student loan debt owed to the government has skyrocketed, increasing by 463 percent. The balance owed currently stands at $674,580,000,000.00 compared to $119,803,000,000.00, where it stood in January 2009, according to the Financial Management Service’s latest monthly treasury statement.”
Via CNS News
“In part one of this article, we defined usury as the lending of money at interest. We examined the history of usury and how it was considered morally reprehensible for thousands of years, prior to becoming the sand foundation modern economies. We also examined the mastery of usury, how they create money out of nothing and use it as a silent weapon for control of humanity.
Here, we examine the crimes and iniquity made possible by usury; and practical solutions.”
Via Activist Post
“The debt of the federal government, which is normally subject to a legal limit, jumped by $409 billion in the month of October, according to the U.S. Treasury.
That equals approximately $3,567 for each household in the United States, and is the second-largest one month jump in the debt in the history of the country.
In the continuing resolution deal sealed by President Barack Obama and the Republican congressional leadership last month, the legal limit on the federal debt was suspended until February 7 of next year.
The single greatest one-month increase in the federal government’s debt came in October 2008, when Congress enacted the Troubled Asset Relief Program to bail out the financial industry.”
Via CNS News
“Usury is the lending of money with interest.
Historically, many cultures regarded the charging of interest for loans as sinful. Some of the earliest known condemnations of usury come from the Vedic texts of India. Similar condemnations are found in the religious texts from Buddhism, Judaism, Christianity, and Islam. At times, many nations from ancient China to ancient Greece to ancient Rome have outlawed loans with any interest. Though the Roman Empire eventually allowed loans with carefully restricted interest rates, the Christian church in medieval Europe banned the charging of interest at any rate.
Usury has been denounced by a number of religious leaders and philosophers in the ancient world, including Moses, Plato, Aristotle, Cato, Cicero, Seneca, Jesus, Aquinas, Martin Luther, Muhammad, Gautama Buddha.
The ancient Israelites called usury “a bite.” It is like the slow poison of a serpent: “Usury does not all at once destroy a man or nation with, as it were, a bloody gulp. Rather, it slowly, sometimes nearly imperceptibly, subverts the victim’s constitution until he cannot prevent the fatal consequences even though he knows what is coming.””
Via Activist Post