In March, Yahoo was the first to report about the merging of the Federal Reserve and The US Treasury. “The Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.”
“In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades. This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.”
Does this mean that Trump has took the power of the Federal Reserve bank away from the aristocrat bankers that has profited off America’s debt since 1913? “The U.S. Federal Reserve, under close scrutiny from president Donald Trump, has made the historic move to pump a staggering $6 trillion of liquidity into the economy since the coronavirus pandemic began” according to Forbes. “What we’re witnessing here is nothing less than the death of capitalism and birth of something new,” said Mati Greenspan, the founder of analysis and advisory firm Quantum Economics. “It’s quite fascinating, really.”
The death of capitalism? What’s so fascinating about that? Let’s dig deeper. Wallstreet Parade says, “According to the U.S. Treasury, as of February 29, 2020, there was $16.9 trillion in marketable U.S. Treasury securities outstanding. Of that amount, at the end of February, the Federal Reserve held $2.47 trillion or 14.6 percent – making it, by far, the largest single holder of U.S. Treasuries anywhere in the world.”
“By this past Friday, the Fed’s ownership of the Treasury market had increased to $3.12 trillion. It had grown by an unprecedented $650 billion in one month’s time. And on March 23, the Fed announced that it would buy unlimited amounts of both Treasury securities and agency mortgage-backed securities “to support smooth market functioning.” According to Counterpunch, The federal reserve was just nationalized, meaning, “The Federal Reserve will be picking up the tab for this bonanza, at least to start.”
So the Federal Reserve, as of March 2020, owned 14.6% of the US Treasuries (bonds) and Trump just forced them to buy up more. Not just a few billion but, unlimited. What does this mean? It appears that Trump is forcing the Federal Reserve to buy up all of the bad loans that are out there and own the debt under stocks through BlackRock’s trading. This forces the Federal Reserve to hedge for the economy and not against.
If the Federal Reserve owns more than 15% of America’s debt, it can play it safe and exit at any time, but if they owned, let’s say 50%, their decision to keep this bad investment comes into play. Owning half of the largest economy’s debt may force the Federal Reserve to either declare bankruptcy or ask to be bought out. Or, they may be forced to stop playing games with our politics and pull out their paid opposition. Either way, it’s good for Americans. And the real reason we are seeing crisis after crisis is that fact that Trump has been taking the power away from the elite for the past 3 years. The moment they shut down our economy, Trump backfired with this unprecedented move. Now you know why he was investigated, impeached, pandemic’d, rioted and possibly civil war’d. All for power.