Unholy Alliance: The Federal Reserve and the Treasury
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By Cassandra Anderson
June 14, 2012

UnholyAllianceThe Federal Reserve and the Treasury are running a scam that funnels freshly-printed money from the Fed into the Treasury, using Freddie Mac and Fannie Mae as the pipeline.  Freddie Mac and Fannie Mae were taken over by the government and put into conservatorship in the 2008 bailout.  Freddie Mac and Fannie Mae are companies that bundle mortgages and then sell them to investors.  At the end of 2012, the Federal Reserve committed to spending $40 billion per month on Freddie Mac and Fannie Mae mortgage backed securities, creating an artificial market.



This system is troubling for the following reasons:

  • Unchecked money-printing (quantitative easing) causes massive inflation

  • As the Federal Reserve buys more mortgages on people's homes, it could eventually own the majority of the real estate market through mortgage purchases, and become America's landlord

  • Real wealth (land ownership/mortgages) is being transferred into bankers' hands in exchange for paper fiat money created from nothing

  • A new housing boom has been created that will end in a bust


The Treasury is using the $40 billion/month paychecks to bridge the federal debt and make Obama look good.

Shareholders in Freddie Mac and Fannie Mae are suing the US government for bailing out and taking possession of the companies in 2008.  The shareholders are angry that the Treasury is pocketing all  of the "profits" that Freddie Mac and Fannie Mae are generating.  But the profits are an illusion as the Federal Reserve is propping up the companies.

The Treasury received a $95 billion payment, record "profits" from Freddie Mac and Fannie Mae in April, however, none of the money was applied to the principal of the bailout debt estimated at $317 billion. 

This scam was planned years ago when the Federal Reserve lowered interest rates to an irresistible level and subprime loans were made to people who did not qualify for them, creating the real estate bubble and burst.  Then, the US government stepped in an took possession of Freddie Mac and Fannie Mae after using taxpayer money to bail them out.  Freddie Mac and Fannie Mae guaranteed half of the nation's mortgages worth $5 trillion and Wall Street pressured Congress to step in and save them. 

The bottom line is that the Fed merely is using this method (among others) to create money out of nothing and hand it over to the government, its trustworthy partner-in-crime. That's why Congress will never do anything to offend the Fed. They could not continue their plunder without them.

Sources:

http://useconomy.about.com/od/criticalssues/a/Fannie-Bailout.htm

http://useconomy.about.com/od/criticalssues/tp/Fannie-and-Freddie.htm

http://www.cnsnews.com/news/article/true-cost-fannie-freddie-bailouts-317-billion-cbo-says

http://www.cnbc.com/id/100806300

http://www.ibtimes.com/shareholders-freddie-mac-fannie-mae-weak-legal-ground-lawsuit-against-us-government-1305175#

http://therealdeal.com/blog/2012/09/13/fed-to-purchase-40b-in-agency-mortgages-a-month/


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Comments  

 
-1 #1 STEWART CAMPBELL 2013-06-14 17:41
Outstanding article!!! I have never been able to determine precisely what MBS are being purchased and from whom!!! I fear the taxpayer is purchasing "TOXIC ASSETS" that Hank Paulson conned Congress into when promoting TARP; the greatest "BAIT & SWITCH FRAUD EVER CONCEIVED"!!!

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-2 #2 STEWART CAMPBELL 2013-06-14 17:47
STEWART CAMPBELL EMAIL ADDRESS CORRECTION

 
 
-1 #3 Amerikagulag 2013-06-28 06:35
The IRS is the collection arm of the Federal Reserve. The Federal Reserve is the collection arm of the Rothschilds.
Their banking scam has been successfully and continuously destroying the US since 1913.
 
 
0 #4 Suzanne 2014-03-23 03:09
Whoa! This blog looks exactly like my old one! It's on a entirely different subject but it has
pretty much the same layout and design. Great choice of colors!
 
 
0 #5 all you need to 2014-03-28 05:07
An interesting discussion is definitely worth
comment. I do think that you should write more about
this subject matter, it might not be a taboo subject but
typically people do not speak about these subjects.
To the next! Many thanks!!
 

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