Ponzi Was an Amateur, Compared to the Federal Reserve! (Constitution Club Scoop!)

Swindler’s List

Bernanke’s Fed is saving Obama’s election the economy by flooding it with money borrowed from taxpayers’ grandchildren. $40 B per month is being scooped out of the air and poured into Fannie Mae, Ginnie Mae and Freddie Mac to fund cheap mortgages, i.e. mortgage loans at low interest rates to folks with uh, less than prime credit. Some may remember as far back as 2007 when that policy collapsed the real estate market. But it’ll get the loot out into the folks’ hands–in theory, anyway–and it won’t create a new collapse by early November and that’s all that matters. Fed Floods Cheap Mortgage Money into Real Estate tells all about it.

But that’s the same-old, same-old here; there’s another side to this that simply isn’t important enough to be reported anywhere. So here it is and after reading this, you’ll be able to say honestly you read something here that the Mighty Media haven’t told you: the Constitution Club has a scoop!

Pensions are a huge, current problem because there isn’t enough money in so many pension funds to pay the pensions they’re obligated to pay as present workers retire. Now few would care except that nowadays, the only folk who still get pensions are laborers in government vineyards, a big chunk of whom are teachers. City and state pension funds are almost universally in trouble. Why is that? There are two reasons; first, you may remember that pension funds are supposedly invested conservatively in bonds and thanks to the Fed’s squatting on interest rates, nobody has figured out how to get a decent enough return on bonds to fund pensions. Yeah, the Fed has created the pension plague and the longer it holds rates artificially low, the worse the pension problem gets. And then of course, politicians steal pension money.

In New Mexico, the teachers’ unions are fighting a move by the state to force teachers to up their pension contributions to help relieve the money shortage in their funds. This is getting headlines while the accompanying portion of this prescribed cure, additional funds from taxpayers…isn’t.

So, the big bad wolf at the door of state and local governments is pension funds short of enough money to pay the obligated pensions because the Fed’s low interest rates keep them from earning enough on their investments. The fun part is, that $40 B per month the Fed is spending to hold rates low just now, will be repaid by future taxpayers…plus interest…AND the current taxpayers and workers will pay more NOW to re-fund the pension funds back to solvency. Yeah, how about that! The taxpayers and workers get to pay now and their kids get to pay again plus interest for the borrowings that make it necessary to pay now! There’s a grift that no swindler in history can beat!

And we”re about to reelect the grifters that have pulled it off…

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Categories: Debt, Domestic Policy, federal debt, Federal Reserve, Financial Decline of America, Fiscal Responsibility

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5 replies

  1. And future generations will curse our names for not doing something to stop the evil that inhabits the white house right now. Add to that US, that’s right US, because we have allowed it all to go on for so long. Obuttman the inept is the big FAT CHERRY ON TOP. And obuttman getting 4 more years won’t be the sprinkles folks, it will be the collapse of the United States of America. HE IS TELLING US RIGHT NOW IN BILLY BOY CLINTONS AD, HE WILL REBUILD AMERICA FROM THE BOTTOM UP. Romney Ryan 2012

  2. Well…the roots of all of this started in the first Clinton Administration,actually, when Janet Reno strong-armed the banks into giving mortgages to people who had no business with a mortgage. Once those “assets” could no longer be floated on balance sheets, the fed picked them up.

    It’s a big, nasty circle that started with bad business practices forced on the banks by government. More on this later.

    • Well, I blame the 1913 unholy arrival of the Fed, too. But you’re on the money! . Perhaps I’d give Congressthieves Chris Dodd and Barney Frank billing along with the Reno; they were at it longer than she had…

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