On Wednesday, stocks were hammered after economic data showed that the US and global economies were headed for a major slowdown. By mid-day, the Dow was down 460 points before clawing its way back to minus 173 points. It looked like the market was set for another triple-digit flogging on Thursday when the Fed stepped in and started talking-up an extension to QE3. That’s all it took to ease investors jitters, stop the meltdown and send equities rocketing back into space.Whitney provides solid evidence and arguments to prove that the recent turn-about in Wall Street stocks was engineered by the Fed to keep Wall Street afloat for the benefit of the ruling capitalist class.
The Fed, of course, is owned literally by banks which, in turn, are owned by the capitalist class. By creating money, known by their quaint jargon as quantitative easing (QE), the Fed artificially props up Wall Street which benefits only the big-time investors who borrow this cheap money to play the market.
Meanwhile, money that is created in a stagnant economy causes inflation which, in turn, depreciates the value of money earned by workers. Also, remember that money created by the Fed is debt money, or money that is owed to the Fed by the entire nation. It is our sovereign debt (now nearly 18 trillion dollars) which is paid back by taxes levied disproportionately on working people. Can it be any clearer that this 1913 institution was a marvelous stroke of genius of, by, and for the ruling capitalist class?