Former Official Reveals the Fed’s “Dirty Little Secret”

Voodoo monetary policy. It doesn't matter what the dollar's worth. If the value of the dollar is cut in half because there's double the number of them, the total dollars still have the same combined buying power they had before. If the increased number of dollars were evenly distributed across the population, the net effect would be zero. The dirty little secret is that impact of inflation is not evenly distributed, and so it really is a redistribution of wealth. The losers are those on fixed income and those who do not have ready access to the increased supply of dollars. Big banks, who have virtually unlimited access due to zero-interest loans from the Fed, are the winners. It also helps the government because the real value of their debt is diluted. Retirees, the unemployed, and workers in corporations in low-growth market segments are the losers. So, basically, the aristocracy gets richer and the general population gets screwed. That's the dirty little secret.

Don't you think it is interesting how the government tries to get you to believe they want you to save while what they really want is for you to go further in debt. That is why they are offering historically low interest rates. They reward the debtor while the saver is penalized. They are encouraging you to go into debt so you will help prop up the economy at your expense. Senior citizens can't live on a retirement fund that is paying 1%. Is anyone hearing their cry? Come on Bernanke, how about all the Senior Citizens that can no longer make ends with the erosion of their monthly income checks?

so the fed and the gov deliberately are screwing us over

You mean the Fed only has one dirty little secret?

During the Vietnam war we had enough of government @#$%. So, what did we do, we marched on Washington and DEMANDED changed or else. Is our present society too obese, busy with video games, drugs, booze and a non caring mentality? Wake up people, their taking everything from us.

Audit the Fed and use the audit results to shut them down. They have never been effective at preventing the cyclical ups and downs of our economy.

Works great so long as you aren't importing 70% of what you consume and you have to sell debt to foreign governments.

That doesn't fit in Bennies algorithms.

Currency depreciation is not a secret. Polices has been in effect since '70. Plan was to depreciate one dollar to about 10 cents in life span of twenty years. Anyone who took Econ 101 should know this 'dirty secret'.

The irony is that the low rates that are hurting seniors are forcing them back into the job market ( which hurts employment). Baby boomers can forget about retiring which also hurts employment
(they have to stay in their job which excludes the next person in line). Low rates mean high unemployment and high inflation. STAGFLATION.

"They don't mind some depreciation"

"The trick is to generate some depreciation but not a lot."

From time to time, the truth trickles out.

Their mandate may be "Price Stability" but what they are clearly concerned with is "Inflation Stability". Prices have been increasing year over year for the past 100 years. Price stability is nowhere to be found. Their mandate is a farse.

"They don't mind some depreciation" is a lie. In fact, they *seek* some depreciation every year. Why? Because, thats where bank profits come from. Increased borrowing/debt necessarily requires increased money printing ( which results in currency depreciation) which necessarily leads to a greater amount of interest charges which leads to greater bank profits. That's how it works and that's why our debt always grows. It's designed that way. Without ever revolving debt, interest payments could not be met, and banks would not generate a profit. Inflation isn't something that just happens on its own. It's a byproduct of a very poorly designed system. Not for them mind you. For them, it's a fantastic system.

Bernanke's QE 2 and money printing policies have wiped out the life savings of tens of millions of Americans and push them into poverty. While the "saver class" is being destroyed the "speculator class" is making a fortune in the stock market!

Fed Reserve Bank not owned by we the people. It's high time that it is!!

The very mechanism by which the Fed functions, ie creating money out of thin air to add liquidity vs removing it from the banking system to remove liquidity (the latter of which NEVER happens...) essentially guarantees a progressive decline in the value of our currency. In the 50 years before the Fed was brought into existence, the value of the dollar barely budged. What a dollar bought in 1870, it bought in 1910.
Since the Fed was chartered in 1913, the dollar has lost 97% of its value. What a dollar buys now, 3 cents used to buy (consider the Hershey bar...).
This will continue to the benefit of the large banks and to your detriment until the Fed is shuttered.

He talks about them as if he had no hand in the deceit. How noble.

We have got to rid ourselves of this private bank, run by private rich bankers, for the bankers, and by the bankers, designed to steal the wealth from the people to give to the rich. It got Kennedy killed and no one since then has the %(#^^ to stand up to them. Oops, forgot, they were ordained by the bankers. Time to dust off the powder horms.

Feels nice to be vindicated a bit, does it not my fellow "Neo-Con" "Tin Foil Hat" "Conspiracy Theorist"? This has been their, central banks, tool for HUNDREDS of years. To quote the Matrix guy, "Do you believe now Trinity?". To those who think the Constitution and our forefathers ideals are "outdated", their wisdom and foresight is still SPOT ON today.

If ignorance is bliss, then slap the smile off my face. - Rage Against the Machine

Thanks TT, nice to see the light shine at the top of the page for once.

Didn't anyone learn anything from Greenspans minor oversight of leaving rates too low for too long?

The Federal Reserve serves no purpose and has no benifit to the United States. Why do we let this private company destroy our purchasing power? Why do we let a private company create our currency then charge us interest on the currency they create? Abolish the Federal Reserve so that our government can create the currency.

these guys are IDIOTS. I'm ready for a real Change.. Tired of the Smoke and Mirrors these fools keep spreading..

If the dollar goes down in value doesn'i that mean our goods are cheaper for other countries to buy ? does this mean we will sell more products overseas? How does this hurt the "little man"?(ha ha!). Now think hard on this!!!!! AND about inflation......Why do you think your house value went up so high????did this make you feel so good??? now i"m on social security,haven't had a raise in 2 years, I understand inflation. Have all the congressmen and administration workers in washington and throughout america been awarded raises??????What a mess the working class is in with greed from our politicians and corporations and our super rich!!!!!!!! you do know there is no way to siop them???? please help,someone!!!!