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Fed`s Quantitative Easing Violates the Rule of Law

Politics / US Politics Nov 16, 2010 - 06:06 PM GMT

By: David_DeGraw


Best Financial Markets Analysis ArticleThe Federal Reserve represents global banking interests who have overstepped their legal authority. Their Quantitative Easing program is an explicit violation of the Constitution. By deliberately devaluing the dollar and causing the price of basic necessities to rise, the Federal Reserve is, as a matter of strategic policy, sacrificing a significant percentage of the US population for the benefit of a few global bankers. In the process, they are also igniting a global currency war that threatens the security of the American people. In clear terms, the Federal Reserve’s actions represent a declaration of war against the people of the United States.

Now that comedians like Glenn Beck, Jon Stewart and Stephen Colbert have demonstrated the ability to rally thousands of Americans, don’t you think it’s time to have a serious rally to restore the rule of law and the Constitution?

How much longer are we going to remain passive while global banking interests rob us of our national wealth and destroy the fabric of our society. Our nation has become a banana republic where the rule of law has become a farce and clearly doesn’t apply to one-tenth of one percent of the population. Anyone who has been paying attention realizes that an organized criminal operation has taken over the United States.

The collapse of the housing market was the result of organized criminal activity, from top to bottom. The people who committed the largest financial crime in the history of the United States were rewarded with trillions of dollars in national wealth, and continue to be rewarded as this criminal activity continues unabated.

In an attempt to drive the final nail into our coffin, five members of the Supreme Court have blatantly proven that they are beholden to these interests by ruling in favor of unlimited spending on political campaigns, which allows for a grotesque abuse of power and firmly entrenches the banking interests that have seized our nation. These banking interests have paid-off, or legally [sic] bribed, the majority of our elected officials and leaders of both parties, leaving 99% of the American population without representation.

The longer we allow them to get away with it, the more emboldened the global banking cartel is becoming. Let’s look at their latest scam…

Quantitative Fleecing: The Backdoor Bailout & Hidden Tax

On top of the many crimes already committed, their latest swindle is the Federal Reserve’s Quantitative Easing (QE2) program. QE2 is a money printing scheme that is in direct violation of the Constitution. The Constitution explicitly gives fiscal authority to Congress. The Federal Reserve, as a group of unelected global banking interests, cannot enact this policy without the direct approval of Congress. Therefore, Congress must take immediate action to stop this illegal activity, yet they remain completely silent on this usurpation of power.

As Hussman Funds president John Hussman politely put it:

“Given that fiscal authority is enumerated by the Constitution as the sole right of Congress, and spending is prohibited by the Constitution without explicit appropriation, it seems clear - regardless of how the Federal Reserve Act is written - that monetary operations involving anything but Treasury securities contain unconstitutional ‘fiscal component,’ unless they involve repurchase agreements that would make the Fed whole even if the underlying securities were to fail. It is doubtful that when Congress drafted the Federal Reserve Act to allow the use of mortgage-backed securities, it ever dreamed that the Fed would purchase these securities outright when the issuer was insolvent. Until this issue is clarified in legislation, Bernanke will continue to see it as ‘perfectly sensible’ for the Fed to make ‘money financed gifts’ that substitute his own personal discretion for those of a democracy.

Equally disturbing is that Bernanke apparently has no problem confusing fiscal policy with monetary policy when it suits him.”

The Federal Reserve tells us that they are doing this QE2 program to stimulate the economy and create jobs. Any serious economist will tell you that this is a blatant lie. We know from a basic understanding of economics and the results of QE1 that this program is completely ineffective in accomplishing their stated goals. The Federal Reserve is deliberately devaluing the dollar to enrich a small group of a global bankers, which will cause significant harm to the people of the United States and severe ramifications throughout the world. Their actions are igniting a global currency and trade war that is endangering the security of the United States. The Department of Homeland Security should take immediate actions to protect us against these acts of financial terrorism, and that’s not a joke.

The Federal Reserve’s actions are already causing the price of food and gas to increase and will cause hyperinflation on most basic necessities. This is happening at a time when we have a record 52 million Americans living in poverty, 42.4 million on food stamps and 77 percent of the population now living paycheck to paycheck. By deliberately devaluing the dollar and causing the price of necessities to rise, the Federal Reserve is, as a matter of strategic policy, sacrificing a significant percentage of the US population for the benefit of a few bankers - bankers who have already been experiencing all-time record high bonuses over the past two years. This is why we now have the highest and most severe inequality of wealth in US history. Not even the robber barons looted the economy as effectively as these banksters have.

Bill Gross, the head of the world’s largest mutual fund PIMCO, has said he expects the Fed’s QE2 program to cause a 20% decline in the value of the dollar. That may sound like an exaggeration to you, but many analysts are predicating an even more severe decline in value, and given the current global economic environment, with currency wars escalating, the very existence of the dollar is threatened like never before.

The bottom line is that this QE2 program amounts to a 20% tax increase for all Americans. They are not only taking an additional 20% of our annual salary, they are also taking 20% of all the money that we have in the bank. This is a backdoor bailout, a hidden tax, a way for working Americans to pay for the crimes of Wall Street. A way to cover the fraudulent toxic debt that they created in their casino Ponzi scheme that destroyed the economy in the first place.

This is the essence of taxation without representation.

We let them get away with the corrupted bailout. We let them get away QE1, which already stole 10% of our money last year. So now they are back at it, getting even bolder in their disregard for the American people and the Constitution.

The Federal Reserve represents global banking interests who have overstepped their legal authority and explicitly violated the Constitution. In clear terms, their actions represent a declaration of war against the people of the United States. The Federal Reserve Bank and their primary dealers are officially enemies of the state.

Make no mistake, Ben Bernanke is Public Enemy #1.

He represents the interests of the people who have brought overwhelming poverty and economic hardship to our doorstep. When are we going to hold him accountable for his actions?

All elected officials, civil servants and US military service members have swore an oath to uphold and protect the Constitution against all enemies, foreign and domestic. If Congress does not act, they will be derelict in their duties and we will have the legal authority to defend our rights. As American citizens we have a duty to protect the interests of the American people.

I am not calling for anyone to break the law. I’m demanding actions to restore the rule of law. I’m exercising my first amendment right to publicly point out that in the absence of political representation, we have an obligation to take non-violent direct action to restore the rule of law and the Constitution of the United States.

The Road Ahead…

The looting of the US economy that has occurred over the past two years is unprecedented in American history. You don’t have trillions of dollars looted from the economy and go on living business as usual. Most Americans have only a vague understanding of the collapse that we have been set up for. If you think the past two years were bad, and obviously they were, they were just a warm up to what is coming our way. After analyzing the policies in place and the current political environment, I can assure you that the next two years will be worse than the previous two.

As scary as it is to admit, I must conclude that we are only in the beginning phase of our decline. Millions more will be driven into poverty and unemployment. As this prolonged crisis continues the social safety-nets, like unemployment insurance and food stamps, the social safety-nets that have held our society together, will breakdown. Cuts to these vital social programs are going to be severe across the board. Draconian measures are just beginning to be rolled out in state after state across the country.

If you want to know where we are headed, a recent Boston Globe article by James Carroll shined a light on our dark future by revealing a well-established recent trend:

“… as federal corrections budgets increased by $19 billion, money for housing was cut by $17 billion, ‘effectively making the construction of prisons the nation’s main housing program for the poor.’ State budgets took their cues from Washington in a new but unspoken national consensus: poverty itself was criminalized. Although ‘law and order’ was taken to be a Republican mantra, this phenomenon was fully bipartisan.”

We already have more citizens in prison than any other country in the world. Our per capita incarceration rate is now on par to the darkest days of the Soviet Gulag.

What do you think is going to happen when the 52 million Americans already living in poverty can no longer afford to get the food that they need to live?

Unless there is a major shift in political policy, riots and social upheaval are coming. The mainstream media created bubble of reality that we have been all comfortably living in is about to burst. You need to prepare yourself for it.

Until we stop being so naïve and passive and realize that our country has been taken over by a financial terrorism network, until we demand that the rule of law is actually applied, our living standards will continue on the downward spiral that has only just begun.

You may think I’m be overly pessimistic or extreme, but I’m not. Open your own eyes, it doesn’t take much intelligence to see what is happening around us, it just takes some time to do the research and connect the dots. Turn off your TV set. Go online and look at what is happening throughout the world. People are taking to the streets and fighting back all over the world, and I’m not talking about in some backwoods country that you’ve never even heard of. Look at Europe, people are storming their government offices and departments of finance. They understand what is happening and they are defending their future. When will we?

Americans across the country are waking up completely broke, in debt they will never get out of and their job prospects are dire. The wrecking ball came through once and drove 50 million Americans into poverty. It is about to swing back again and take with it another 50 million of us. Our country has been attacked, looted and burnt to the ground economically.

We need to understand that we are in an all out economic world war right now, and we are being viciously attacked without forming any resistance.

The people attacking us are only one-tenth of one percent of the population. If we can recognize this fact and organize on common ground, we can win this war.

Are you ready to fight back?

I’ve made my decision. See you on the frontlines!

By David DeGraw

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David DeGraw is a frequent contributor to Global Research.  Global Research Articles by David DeGraw

© Copyright David DeGraw, Global Research, 2010

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


16 Nov 10, 20:04
Federal Reserve QE2 Initiative

The Fed's QE2 program was apparently crafted with the goal of devaluing the dollar so as to buttress the nation's exporters. Moreover, this action would simultaneously aid in maintaining the current lid on interest rates. Regrettably, one of the side effects from such a massive bond purchasing initiative could do no other but to cause a boost in the cost of living.

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