Why the Federal Reserve is Turning the Dollar into Monopoly Money through Quantitative Easing

posted by chadhovind
           Here is a phrase that you don’t hear much but will soon dominate the news:  quantitative easing. What does that mean? In layman’s terms, one might say, “I’ll rob Peter to pay Paul” or “I’ll pay off one credit card by putting it on another one.” When you say it that way, it sounds like an unwise, short term solution, not a sustainable plan.
            America has bad credit. Terrible credit. We are over 15 trillion dollars in debt and we are continuing to spend more than we make. How are we able to do that? Most American citizens do it with the use of credit cards and lines of credit. The same is true for governments. The U.S. borrows money from other nations. However, when someone is a good credit risk – meaning they make good financial decisions and have a good chance of paying the bill in an agreed-upon time frame – they are offered a lower credit rate by the bank. When a person has bad credit or is making continual, habitual, bad decisions, the bank wants a higher interest rate to compensate them for the riskier loan.
              China is our bank. America is a bad credit risk. China is not impressed with our credit score and current trajectory, so they are refusing to keep lending to us unless we clean up our financial house. They also want us to raise the interest rate we give them for enabling our bad behavior. The U.S. Treasury doesn’t want to do either. So what does a government do who can’t find a new credit card, won’t stop spending, and refuses to compensate the lender for taking a risk?
            Quantitative Easing. What? Yes. This is the solution. The government loans money to… itself?! The U.S. becomes its own credit card. Instead of borrowing from its citizens like we did in World War 2 and paying them back later, the government just borrows from itself. How does that work? In short, it doesn’t. That’s why gold surged again recently to historic levels. The only way to borrow from yourself is to print money off the government printing press. Why is this a problem? It causes inflation which leads to rising prices. Look at gold. Look at the price of oil. Look at the rising costs in your grocery store bills.

            By borrowing from itself, the government is playing monopoly against itself. Do you remember the last time you played monopoly with one of your kids or friends? At some point one of them ran out of money, but wanted to keep playing. You first let them give you an IOU in hopes that one more time around the board might lead to some revenue. When that didn’t work, they sold you their property. Pretty soon, they didn’t have any property left for others to land on -so there was no hope of ever paying you back. Imagine your son is in that situation, but offers a solution, “Mom, it’s okay, I’ll write you another IOU for my IOU?” Huh? Your son continues, “My left hand is going to give a loan to my right hand. So even though my right hand has no money, my left hand is good for it.” You ponder this ingenious childish thinking and ask, “Does your left hand have any money?” He protests, “No, but I feel really good about the chances that it will soon.”
           That is quantitative easing. It is nonsense. It stands in opposition to God’s commands. The irony is that the excessive printing is done to provide beneficial programs to help the poor and needy. The unintended consequences are ironic. The more you print and spend; the more you’ll need to print and spend. As the printing press saw blade spins, the prices for supplies go up. The more prices go up, the more you need to print more money. The cycle continues. This is a way of stealing from the public, like John Keynes told us, without the public ever seeing how it was done. The government is able to steal the citizens’ prosperity right under their noses.

           The best way to destroy the capitalist system is to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. ~ John Keynes

            This is why God said that dishonest scales are an abomination to the Lord. A just weight or standardized weight in our monetary system is a consistent value. That consistent sound money is God’s delight. God cares about money. Sound money is about helping not only the poor, but everyone. It’s about honest and impartial transactions. God has a lot to say about it:

Leviticus 19:35-36 You shall do no injustice in judgment in measurement of length, weight, or volume. You shall have honest scales and honest weights, an honest ephah… I am the Lord your God, who brought you out of the land of Egypt.

Deuteronomy 25:13 -16 13 You shall not have in your bag differing weights, a heavy and a light. 14 You shall not have in your house differing measures, a large and a small, You shall have a perfect and just weight, a perfect and just measure, that your days may be lengthened in the land which the Lord your God is giving you. For all who do such things, all who behave unrighteously, are an abomination to the Lord your God.

             If our government doesn’t stop playing monopoly with our money, it’s the middle class that will see their savings and wallets turned into funny money. The government will then blame businesses for raising prices rather than looking in the mirror.
For a free 30-minute session of Godonomics, visit:  http://www.godonomics.com/watch-session-1

Comments read comments(3)
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Nalliah Thayabharan

posted May 21, 2012 at 9:46 am

In 1811 the charter for the Illuminati Ashkenazi Khazar Rothschild owned Bank of the United States which

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peggy neilson

posted August 23, 2013 at 7:05 am

This was a massive and well put together explanation, but without credentials and citations for at least some of the most important points, it lacks the credibility that it should get. I’m not refuting you on this post, but encouraging you. It was good. Do you have a bibliography of sources for this and if so would you be willing to share it with me? Thanks!

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Nalliah Thayabharan

posted January 31, 2014 at 2:59 pm

U.S. economy is struggling and the U.S. government is absolutely drowning in debt. Unfortunately, the Federal Reserve has decided to recklessly print money out of thin air, and in the short-term some positive things have come out of it. But quantitative easing worked for Gernany almost 100 years ago.. At first, more money caused economic activity to increase and unemployment was low. But all of that money printing destroyed faith in German currency and in the German financial system and ultimately Germany experienced an economic meltdown that the world is still talking about today. This is the path that the Federal Reserve is taking the USA down, but most Americans have absolutely no idea what is happening.

It is really easy to start printing money, but it is incredibly hard to stop. Like any addict, the Federal Reserve is promising that they can quit at any time, but they refuse to even start tapering their money printing a little bit. Federal Reserve seems to be convinced that any “tapering” could result in the bursting of the massive financial bubbles that it has created. Federal Reserve beleives as the market seems not to, that the current “recovery” could not survive without continuation of massive monetary stimulus. Federal Reserve is usually very careful not to do anything which will hurt the short-term interests of the financial markets and the big banks. If Federal Reserve continues to pump, the financial bubbles that it has created will get even worse. If Federal Reserve stops, those bubbles will burst. But it is inevitable that these financial bubbles will burst at some point one way or another. The Federal Reserve is trapped and can’t end tapering or else the bond and stock markets will blow up. The longer this continues the bigger the inevitable burst. While the Federal Reserve has been recklessly printing money out of thin air, household incomes have actually been going down for five years in a row… The employment to population ratio fell from about 63% before the last recession down to underneath 59% at the end of 2009 and it has stayed there ever since. So if quantitative easing has not been good for average Americans, who has it been good for? The wealthy, of course. This is fantastic for every rich person – This is the biggest redistribution of wealth from the middle class and the poor to the rich ever.
The implication of the Federal Reserve’s policy is that the rich will spend their wealth and create jobs—essentially betting on “trickle-down economics.” But it hasn’t worked for five years. We have now entered a money printing spiral from which there is no easy exit. Federal Reserve has “crossed the Rubicon” and we are now “in the End Game”… If tapering even $10-15 billion per month from $85 billion month quantitative easing programs would damage the economy, then we’re all up you know what creek without a paddle. Here we are, five years after 2008, and the Federal Reserve is stating point blank that the economy would absolutely collapse if it spent any less than $85 billion per month. This admission has proven just how long ago we crossed the Rubicon. We’re already in the End Game. Period. Most Americans don’t really understand what quantitative easing is, and most don’t really try to understand it because “quantitative easing” sounds very complicated. But it really isn’t that complicated. The Federal Reserve is creating gigantic mountains of money out of thin air every month, and the Federal Reserve is using all of that newly created money to buy government debt and mortgage-backed securities. Over the past several years, the value of the financial securities that the Federal Reserve has accumulated is greater than the total amount of publicly held debt that the U.S. government accumulated from the presidency of George Washington though the end of the presidency of Bill Clinton…

US dollar supply is beginning to grow at an exponential pace. So far, complete and total disaster has not struck, so most people think that everything must be okay. But it is not.
It is simply not rational for other nations to continue to lend USA money at less than 3% a year when reckless money printing by the Federal Reserve threatens to greatly accelerate the devaluation of our currency.

Right now, the Federal Reserve is buying roughly half a trillion dollars worth of U.S. Treasuries a year, but the U.S. government issues close to a trillion dollars of new debt and must roll over about 3 trillion dollars of existing debt each year. If the Federal Reserve eventually decides to buy all of the debt, then interest rates won’t be a major problem. But if the Fed goes that far our financial system would be regarded as a total joke by the remainder of the globe and we would reach hyperinflation much more rapidly. If the Federal Reserve stops buying debt completely, the financial bubbles that they have created will burst and we will rapidly be facing a financial crisis even worse than what we experienced back in 2008. The Federal Reserve is systematically destroying what was once the strongest financial system in the world, and in the end we are all going to pay the price

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