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Quantitative Easing ‘QE’ Entails Buying Bonds, NOT Creating Jobs

The Fed’s Employment-Taper Myth, Big Six Bank Stocks, and Downgrades

In the following video Greg Hunter of USAWatchdog.com goes one-on-one with Nomi Prins, best-selling author of “It Takes a Pillage” and Former Managing Director at Goldman Sachs.

The interview delves into Prins’ latest article while touching on the following:

  • No matter how many articles and politicians claim the Fed is buying Treasury and mortgage-backed securities (MBS) to help the a) economy or b)  unemployed, it isn’t true.
  • The Labor Participation Rate is at 30 year lows despite an increasing working age population.
  • According to the Economic Policy Institute “the unemployment rate is vastly understating weakness in today’s labor market.” True, the official unemployment rate  (called ‘U-3’ on the Bureau of Labor Statistics reports) has inched downward from a high of 10% in early 2009 to 7%. But, that’s because people have dropped out of the hunt for jobs.
  • If those workers were still ‘participating’ in the employment-seeking crowd, the adjusted U-3 unemployment rate would have hovered between 10 and 11.8% since early 2009. It is currently at 10.3%. In other words, it’s still pretty damn high.
  • John Williams’ Shadowstats computes the unemployment rate at Depression levels of just below 23%.

The full interview can be heard at USAWatchdog.com

So basically the Fed is creating $85 billion a month (that we know of) out of thin air (in-debting American taxpayers) to keep the insolvent “Too-Big to Fail/Jail” banks afloat.

More on the Big Banks to come, but for the time-being know that the FDIC does not even come remotely close to covering all deposits in these banks. Also, if you still bank at one of them you may want to take a closer look at your “terms of service”.

According to official papers from the FDIC if you “deposit” your funds in these banks you are not legally a depositor but rather an “unsecured creditor”.  From now on there are to be no more bail-outs but rather bail-ins. Guess where the money for bail-ins is to come from? For a clue, take a look at Cyprus.

I will break this down in more detail in subsequent posts, but ‘wanted to get this interview out there.

Please share this, pass it along, comment and start a conversation.

The entire Nomi Prins article can be found here: The Fed’s Employment-Taper Myth, Big Six Bank Stocks, and Downgrades

Also, much more great work from Greg Hunter at USAWatchdog.com

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