The Fed's Hidden Financial Coup: A System Rigged for the Banks, Paid by the People
We are witnessing the greatest financial crime of our lifetimes unfold right before our eyes, and yet, no one seems to care. The Federal Reserve, in league with commercial banks, has engineered a heist so cunning, so audacious, that the average American has been made to pay the price without even knowing it.
Since 2008, the Fed has been bailing out banks, keeping their balance sheets artificially inflated and their pockets lined with profit. How did they do this? By creating liquidity out of thin air, not to save Main Street, but to prop up the very institutions that crippled the economy in the first place. Banks got richer, and the American taxpayer footed the bill. This isn't just a bailoutâitâs institutionalized theft.
In the latest chapter of this scandal, the Fed didnât even bother to pretend to be acting in the public interest. When Silicon Valley Bank collapsed, instead of increasing assets during a period of so-called "quantitative tightening," they concocted another scheme. They ramped up $400 billion in Reverse Repo liabilities and loaned it back to banksâa direct line of lifeline dollars, not for you, not for the small business struggling to survive, but for the banks. The very institutions that hoard their reserves and refuse to lend to the real economy.
It is the same story we've heard over and over again: the Fed creates the problem, and the banks profit from the solution. This time, it came at the expense of a collapsing financial system held together by smoke, mirrors, and taxpayer-funded band-aids. Banks should be lending to the real economy, yet instead, they are paid handsomely by the Fed to sit on their reserves and do nothing.
You think thatâs outrageous? Itâs worse than you imagine. The Fedâs rapid interest rate hikes over the past year have decimated banksâ balance sheets, creating massive unrealized losses on government bonds that these banks canât unload. The very institutions that should be the backbone of economic growth have become zombiesâdead inside but propped up by government crutches.
This is financial tyranny, plain and simple. And itâs all happening under the guise of monetary policy. The truth is that the Fed, in its rush to counter inflation, wrecked the very banks it now pays to keep on life support. Every dollar that goes into these rescue packages and liquidity injections isnât saving the real economyâitâs feeding a system designed to enrich financial elites while the public suffers the consequences.
Where is the outrage? Where are the Congressional hearings to call out this fraud? We have a central bank that no longer serves the interests of the people but exists to protect the profits of commercial banks. The American economy is starved while the Fed plays God, handing out favors to the financial class.
The Fedâs practice of paying interest on reserves must end immediately. It is a hidden tax on economic growth, siphoning resources from the productive economy and rewarding financial parasites. The time has come to expose this criminal collusion between the central bank and commercial banks, to put an end to the backdoor deals that leave the taxpayer holding the bag.
If we donât stop this now, we are headed for a financial reckoning far worse than anything we saw in 2008. The system is rigged, and the cost of maintaining this corrupt structure is going to come out of your pocket, your future, and the very foundations of our economy.
Itâs time for a revolution in how we think about money, banking, and the role of the Fed. Maybe itâs time to consider a return to real, hard moneyâa gold standard that could finally strip these institutions of their unchecked power. The era of financial engineering, of propping up banks at the expense of the people, must end. The Fedâs reign of economic terror must be stopped.
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