The Federal Reserve has printed trillions of dollars without generating runaway price inflation through the use of a neat trick.
The privately owned bank cartel shovels the bulk of the money to Wall Street banks and not to the public at large. Instead of millions of Americans rushing out to bid up prices on consumer goods, a relative handful of bankers is using the free money to bid up asset prices and then pay themselves huge performance bonuses.
It’s quite the racket. Fed officials have been able to point at stock prices as “proof” of how they successfully engineered an economic recovery.
Wall Street is the true beneficiary of all the largesse and Main Street doesn’t ask too many questions as long as the stock market is roaring higher.
Things have to be good, right?
Except now Americans noticing that Fed policy is horribly unfair. The distribution of recent stimulus funds from the Fed and Congress is so lopsided it’s outrageous. Politicians printed and borrowed roughly $6 trillion – the equivalent of $30,000 for every adult in the US.
How much of that cash did people actually see? About $1,200 if they were eligible for assistance.
And since Congress borrowed 100% of those funds, Americans are expected to pay it back. They’ll have to add it to their tab.
The pro-rata portion of the U.S. debt for each adult is already more than $110,000.
The trillions the Fed created were injected to buy Treasuries, lend into the repo markets and to make bond purchases. In theory, these funds will have to be paid back too. Since the Fed is never audited and doesn’t have to provide detail on Fed loans, we have to take their word for it.
We aren’t the only ones covering the ridiculous gap between what the Fed and Congress will spend to support bankers versus the rest of us. Wall Street on Parade has been watching the malfeasance for years.