By Jerry Robinson
Follow the Money Daily
Wednesday was a rough day in the financial markets.
- The Dow Jones Industrial Average fell nearly 280 points, which was the biggest point decline since June 4, 2010.
- The U.S. factory sector — which has been a growing bright spot in the U.S. economy — reported its biggest monthly slowdown since 1984.
- The U.S. unemployment outlook is becoming more dismal with May's official report expected to be released this Friday.
- U.S. housing prices have fallen by 5% since last year, while pending and existing home sales numbers are weak.
- And growing turmoil in the Eurozone is continuing to create global financial instability.
This is unacceptable to the powers that be. The last time that the U.S. central bank had so much real grassroots opposition was back in the 1830's. In those days, President Andrew Jackson singlehandedly destroyed the Second Bank of the United States (the 1830's version of the "Federal Reserve") due to its obvious fraud and corruption.
Today, however, both Republicans and Democrats do little more than give lip service to bringing down the destructive policies of the Fed.
Get Ready for QE3
The press portrays the Fed as a conflicted institution. It shows Bernanke as a man who is wringing his hands in angst on what to do next to "save" the U.S. economy. Its all a charade. Its how the game is played. The Fed needs to be perceived as if it is on America's side.
However, what the Fed actually desires is for the economy to take a nice dip. You don't need a doctor when you are healthy. You only need one when you are sick. And the Fed can only get its claws deep into the U.S. economy when it is "needed."
Since the last round of QE (QE2), the U.S. economy has buoyed. QE2 has not been able to mitigate the rise in U.S. unemployment or the stagnancy and decline in housing prices. However, the money pump has created a wealth effect in a few key areas: retirement plans, investment portfolios, commodities, etc. So there is some semblance that the Fed has "helped."
A few weeks ago, the Fed would not have dared utter the words "QE3." Why? It helps if you think of the Fed as a drug pusher. Pushers don't "market" their drugs. Instead, they rely upon the addicts to come crawling back for more. The Fed doesn't need to push QE3 on the public. This would only bring more attention to its true intentions. Instead, the Fed will let the public demand it.
Start paying attention to the headlines as we near the end of June and as we move into the summer. Note the mainstream media inspired "debate" on whether QE3 is necessary. "Should we or shouldn't we?" will fill the airwaves.
But it is all a game. The pusher knows that you will be back for more because you can't get enough. The Fed does too. All you have to do is ask.
US Federal Reserve mulling third QE? - BusinessWorld Online
Obama's re-election bid shadowed by unemployment, shaky economy - USA Today
High U.S. jobless claims add to slowdown concerns - Reuters
Rep. Paul to Fed: Tell Us Everything, or Else - FOX Business
Moody's warns US gov't on possible debt downgrade - AP