Review of the Ben
Bernanke Quantitative Easing Policy!
How the Federal Reserve Provides Welfare for Billionaires!
Analysis of Federal Reserve's Policies Under Chairman Benjamin Shalom Bernanke
The United States Federal Reserve converted the worldwide financial collapse of 2007 - 2008 into a welfare program for billionaires. This policy was confirmed by past Federal Reserve Chairman Alan Greenspan who said they expected the policies that made bonds and stocks soar would trickle down to the economy. Well, that certainly did not happen.
Historical Fact:
The worldwide economy started to collapse because Federal Reserve Chairman Benjamin Shalom Bernanke raise the Feds discount rate to 6 percent.
Result: Home owners who were allowed to obtain home mortgages with zero down payment and adjustable rate mortgages. These homeowners quickly defaulted on the mortgage and the home was dumped on the market in foreclosure. This chain of events cause home prices to plummet and new defaults to soar.
The Federal Reserve was dumber than a plumber because they did not have a clue about the homeowner debt bubble.
Benjamin Shalom Bernanke's First Action in 2008:
The Federal Reserve plunged the discount rate to 1/4 of one percent, essentially zero.
Results: Bond prices soared. The net worth of billionaires holding these bonds also soared. This policy was a massive welfare program for billionaires.
Common people suffering from the collapse were punished by this policy. Anyone with a bank saving account saw their income plunge to zero. Senior citizens had their interest income cut to zero. This policy sucked massive amounts of money out of the economy.
Benjamin Shalom Bernanke's Second Action in 2008:
The Federal Reserve began to buy massive quantities of long term U.S. bonds off the open market by simply printing Federal Reserve notes. The program generally amounted to 85 billion U.S. dollars per month.
Result: The billionaires holding the U.S. bonds were paid the largest price in history. This policy was the second massive welfare program for billionaires. The Federal Reserve caused the bond prices to soar in the first action and they bought these bonds from billionaires at the maximum price in U.S. history.
Ordinary and people who had lost jobs during the collapse received absolutely zero benefit from this second action in the same way that they received zero benefit from the first policy.
The billionaires invested the quantitative easing money into the stock market sending stock prices to soar to historical record highs even though the earning of these companies was zero and virtually stagnant. This policy was the third massive welfare program for billionaires.
Ordinary citizens received no benefits from the soaring stock market. No new jobs were created as the U.S. economy remained in stagnation.
Summary:
The policies and actions of the Federal Reserve caused the worldwide financial collapse that started in 2007 and continues to this day, January 29, 2014. The net worth of the ordinary citizen in the United States has collapsed, but the net worth of billionaires has soared to record levels. The percentage of people in the middle-class has continued to shrink and the people in poverty has exploded. The result is a stagnant economy while 40% of population must apply for food stamps in order to eat. Obviously, the actions of the Federal Reserve under the direction of Alan Greenspan and Ben Bernanke has been an historical disastrous failure unprecedented in world history.
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