Fed News Friday: Twist is Putting “The Squeeze on the Banks”

September 30th, 2011

There’s no need to sit here and bore our passionate readers on why the newest plan drawn up by the Federal Reserve is less than a stealth attempt to save the economy. The only beneficiaries of this new policy, conveniently named “Operation Twist”, will actually be the same (so pretty much, not you). OP will perform much like QE and QE2 offering an artificial boost to the stock & bond markets. The euphemism couldn’t be more appropriate, since the Federal Reserve insists on twisting and turning the truth into fabricated reasons for printing more money. Although, the name of this new Fed policy is only a continuation of what some called a failure in the 1960′s. The idea of selling off maturing bonds to purchase up long-terms, the market will find itself back at square one. Does that mean no worse, no less?

The bump in the markets will provide some sort of confidence abroad and here, allowing investors to start financing ventures again…however it is big businesses that will be feeling the majority of this boost, and the fundamental problems with the economy will remain alive and well. For the businesses, individuals, and families that aren’t in bed with the Fed…you’ll be in the same place with a deteriorating dollar, melting away in your hands.

Perhaps the overall shock from OP will be less detrimental than the blatant printing of paper during QE and QE2. This is not to say that OP is good work by the Fed, but who am I kidding I don’t have to convince you of that. I almost wonder if this is a faked attempt to save the economy because the Fed knows its options are up? Are they just buying time? Playing it safe?

Either way, we know that an economy based on debt and an uncapped amount of dollars to create is a recipe for financial catastrophe…for those who are not educated on the topic. I believe another statement will be coming out from the Fed today…I’ll keep my ear to the ground. Until then, if you want the intricate skinny on Operation Twist, with the usual analogy or two, view Schiff’s video report on the Fed’s latest scheme:

Hope you all had a good week getting your “dip” on. See you next week for more news from the Fed. Follow us on Twitter @silvercirclemov for more details.


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