Equedia Letter

The Ultimate Bailout: The Fed’s True Plan12 min read

Comments (15)
  1. sherwin says:

    do not be a piker…………in january 2017…….three trillion amnesty for all student debt

  2. jrj90620 says:

    So,when will the abused Dollar and other junk,fiat currencies collapse?

  3. Cougar Jon says:

    Johnathan Swift has got nothing on us. We’re living the Lillopusion dream. It’s hard to believe over 7 billion souls collectively share the same willful blindness. For example world debt now exceeds its GDP. Debt (money) is created on the premise that the principal will be paid back with interest. To meet this interest additional debt has to be created in order for the money supply to cover the earlier interest. It’s a Ponzi Scheme. If total debt does not continue to grow the structure collapses. AND THIS IS ONLY JUST ONE FACT BEING IGNORED! The whole humanitarian disaster that is Syria is all about moving Persian Gulf natural gas into Europe. Our numbers are exceeding the capabilities of our institutions and resources.

    1. BearMan says:

      You are 100% correct. But how many people play into a Ponzi scheme even when they know it is a Ponzi scheme? Greed overcomes common sense. The world is due for a revolution. Bankers will be hanging from the lamp posts.

  4. Ell says:

    The sad thing is that this didn’t have to happen. Until we imported the federal reserve bank and turned over our money to the papermongers, exited the gold standard, abandoned the idea of a freedom, and began growing government and stifling the economy with regulations, taxes and lies like global warming, the world was our oyster, and everything was possible. It was the banksters and the socialists that created this problem, and it won’t go away until we start being truthful, and doing things the way the founders set our society up to work; with freedom and sound money.

  5. Lee says:

    We are definetly overleveraged over the 1929 era. This on derivatives.
    How long the FED will be able to buy U.S. Treasuries being dumped by foreigners to buy gold ,is a key factor.
    WE ARE ON THE 100 YRS CYCLE (1914) and it must be played out somehow. things will get better in 2018 as per this cycle rotation

    Invest in hardcore companies with hard core assets (railways) per Warren Buffet.

    Another precious stone that no one talks about that is super manipulated , controlled is DIAMONDS.

    Two years ago I intuitively predicted the Euro at 1.20.
    So my prediction for oil to stabilized in the low 40’s as this is 50% + 1/8 correction. (1.612) ratio repeated so often. If so than Oil should reach a top of $70’s range wave.

    SO MUCH FOR PREDICTIONS WE ALL HAVE. IF ONLY WE HAD A CRYSTAL BALL then again there would be no markets to invest in. Best is to go with the TREND. as this is the most predictable forecaster.

    ENJOY YOUR DAY NO MATTER WHAT… There is always a tommorow

  6. Myron Bevans says:

    One quote from your letter stood out for me: “Eventually, the Fed will have to begin winding down its assets, which means there will be a lot of bonds to soak up.” My question is, Why will the Fed EVER have to wind down its assets? Who or what is going to make this happen? Why can’t the Fed hold onto its assets, valuing them at book or even add more as the need arises, on into infinity? The whole investment world knows the score and happily goes along with it, regardless of the obvious absurdity. The entire global financial community has a stake in its continuation, I believe. What is your answer?

    1. admin says:

      Great question. The simple answer is you’re right, the Fed doesn’t have to sell. Buying and selling is their way of controlling interest rates through the money supply; selling raises the interest rates, and buying decreases it. And there is a possibility – as the Fed has already mentioned – that it could and will buy more assets if necessary.

      History shows us the goal of the Fed is to control. With the massive amount of bond purchases by the Fed over the last seven years, the Fed has effectively taken full control of the U.S.

      Without getting into further details, the last time the Fed didn’t have its way, it contracted the money supply in the U.S. and the country fell into a deep recession.

      So, no, the Fed doesn’t have to sell its bonds, but there does come a time, when – as Bill Gross put it – zero-based (and in some cases negative yields), fail to generate sufficient economic growth. While such yields almost automatically result in higher bond prices and escalating P/E ratios, their effect on real growth diminishes or in some cases, reverses.

      When you push the limits beyond what is acceptable, other global economies will eventually retaliate, leading to a very strong possibility of war via the shifting balance of financial assets. This could be an all-out attack on the dollar, which the Fed does not want.

      The unwinding of bonds by the Fed – likely at a very, very slow pace – is simply a way to keep some sort of perceived balance.

      Thanks again for your comments; it’s great to see there are those out there that are educated enough to see what is going on.

      -Ivan

  7. No JOJO says:

    two things that would put a fix
    A) Pass a law USA military not go beyond it’s borders
    B)Put a law that if the media or Law makers lie on any issue–Jail time until convicted and beyond

    Biggest problem America and the west, is the governments and media are hi jacked by a sinister evil religious group.

    1. Karamer S says:

      Sorry, while your intentions may be good, its clearly out of whack.

      Passing more laws re: jail time will just allow them more control by putting in jail any journalists or reporters that report on a story they don’t like

  8. Mike says:

    Bit of speculation here:

    If all currencies fail the blame can be leveled at the failure of governments and banks and men. If the failure is bad enough the the world will demand financial salvation at almost any price. That salvation will be offered. I would suspect something on the order of a world scale Bitcoin, which can be “regulated” to insure the financial of all. Draw your own conclusions.

  9. hp says:

    Hasn’t a precedent already been set? That reporting on this remarkable ACHIEVEMENT is scarce to none only serves to accentuate the efficacy.

    I’m referring to, of course, Iceland.

  10. jon says:

    what is really going on reaperishere.weebly. com

  11. Coyote says:

    Here is humanity’s #1 problem, summed up:

    The International Jew by Henry Ford

    “Wikispooks.com 9/11 Israel Did It”

    http://www.bibliotecapleyades.net/sociopolitica/secretsoc_20century/secretsoc_20century03.htm#CHAPTER%206

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