Business news without the bullshit

How the Fed picked your pocket

And further impoverished the poor

Subscribe to RealEconTV

Your e-mail address is kept absolutely private
We make it easy to unsubscribe at any time

Chase/Goldman/Citi et. al. uber alles

If your earnings and wealth are in US dollars, the Federal Reserve Bank just redistributed the wealth a bit to the tune of 20% of your savings and income.

Since every commodity on earth - wheat, corn, copper, you name it - is priced in US dollars, the poor of the world have received a haircut at the neck level.

Why was this done?

Because a handful of shareholder owned banks and their bond holders need some quick funny money to pay off their gambling debts.

That's it. That in essence is what's going on.

That said, the ongoing train wreck could hold some an unexpected rally of the US dollar when the manipulations fail and a huge wave of loan defaults incinerates even more dollars than the Fed pumped in. (No one ever said this stuff was easy.)

Massive loan defaults in excess of the new dollars pumped into the system will create a shortage of dollars.