Change We Can Believe In: Another Banker Bailout

Since Ben Bernanke’s proclamation that the Fed will embark on a plot to purchase $40 billion in mortgage-backed securities each month, the mainstream media has called it the beginning of “QE3”, but if you ask me, its nothing less than another banker bailout in disguise.

Many have justifiably attacked the Federal Reserve’s policy of printing money as a band-aid which does little to solve the economy in the long term, and this new move has little to do with solving any economic problems at all.  Instead, the policy announced yesterday will merely see the Federal Reserve use our (taxpayer) money to purchase more BAD debt in the form of junk mortgage-backed derivative based securities that have been sold over and over and over again!

This has very little to do with moving the economy forward and will only serve as yet another gigantic wealth transfer from the middle class to the elite who have already stolen billions from the public trust under the guise of saving our nation’s economy.  

Its been reported that banks are already sitting on over a trillion and a half in excess reserves, and just like with QE1 & QE2, most of the cash was put on the shelf and not injected into the middle class. 

Let’s hop in the Delorean for second and take a trip back in time to 2008 and the dire situation we found ourselves in thanks to pure incompetience from the Bush administration’s handling of the economy after their corporatist interests tanked the economy with fraud and of course not to mention… WAR. WAR. WAR.

Because of our dire economic situation we were sold something called, TARP.  In TARP, the fed paid the banks to withhold loans, because the bailouts have never been about saving the economy for Americans like you and I.  TARP and each measure of Quantitative Easing which followed, has been about propping up stocks for the rich while the real economy average Americans live in everyday goes to hell. 

QE1 and QE2 did little if anything to rescue the economy, it simply maintained power to the life-support system which helps our country breathe.  That’s right, since 2008 the United States has had a breathing tube stuck down its throat.  As long as the breathing tube stays in, the elite continue to prosper and the cancer they view on their way of life (the middle class, you and I), well we slowly die off.

Since Quantitative Easing began, the unemployment rate in this country has remained largely unchanged and job numbers are again stagnant, with the latest numbers pointing to even more Americans giving up on looking for work.  Additionally, the “wealth gap” has immensely increased.  This again illustrates how Quantitative Easing has very little to do with helping you and I get back on our feet.

As the George Washington Blog points out, “This is just another bailout for the big banks. (If the government had instead given money directly to the consumer, we would be out of this economic slump by now).”

“Bernanke claims that the main justification for QE3 is to boost employment. This is slightly ironic, since Bernanke’s policies are largely responsible for creating high unemployment in the first place. The real justification is to try to artificially prop up asset prices. But that approach has been proven to be an absolute failure.”

Indeed, the Fed admitted that its new program would do little to alleviate the suffering of jobless Americans.  I’m SHOCKED. 

“I want to be clear — While I think we can make a meaningful and significant contribution to reducing this problem, we can’t solve it. We don’t have tools that are strong enough to solve the unemployment problem,” Bernanke said yesterday.

The fact that we haven’t seen massive inflation since the start of the Fed’s so-called quantitative easing policies illustrates how the money is not even being pumped back into the economy.  The only real inflation has been in the luxury sector because the rich are getting richer and spending more while the poor continue to live on or below the poverty line.

QE3 is merely another massive wealth transfer and a tool of waging economic warfare on the poor and middle class, another manifestation of neo-feudalism to destroy America and have the global bankers pose as the saviors.

What I find most disturbing in the wake of all this, are my progressive friends who continue to tell me I should be casting a vote for President Obama in November because he’s on the side of the middle class.  Well, if you think the evidence I’ve presented above makes a strong case for him, then I’ll be happy to point you in the direction of middle class neighborhoods all over this country where you can help him spread the message.  Just use this article for your talking points, I can’t see there being a problem.