The Federal Reserve is a wealth transfer machine, skimming wealth from the productive many
and transferring it to the parasitic few.
Today I launch a series entitled "The Rot Runs Deep" that examines the moral and financial
rot at the core of American finance, politics and culture. We have reached a unique
junction of American history: the confluence of Big Lie propaganda, neofeudalism and
the worship of false financial gods.
The Big Lie propaganda machine of corporate media and the Central State has perfected
Orwell's nightmare vision of centralized media and a fascist centralized State
which turn lies into self-serving "truth."
Since the Federal Reserve is once again expected to "save" a crumbling, exploitative
Status Quo, let's use the Fed as an example. The propaganda machine would have us
believe that the Federal Reserve, the privately owned central bank of the U.S., has
"saved" the Status Quo from financial ruin on numerous occasions by "smoothing out" the
business cycle (credit expands and contracts) and by "stimulating aggregate demand"
by lowering interest rates and pumping money into the economy (quantitative easing).
We are constantly prompted to worship the Federal Reserve's supposedly god-like
powers to rescue a corrupt and venal Status Quo from the black hole of recession and collapse,
and this Big Lie masks its real nature:
The Fed is nothing but a parastic
wealth transfer machine, skimming wealth from the many and transferring it to the few.
In effect, the Fed is the "enforcer" of neofeudalism in America: the feudal Lords of
Finance control the for-sale political system and skim tribute from the 99.5% toiling
in the fields below their castles. The Fed enforces this parasitic transfer of wealth
by manipulating interest rates to enrich the banks and provides "free money" to the
Financial Lords which is then used to buy assets and lend at interest.
The mechanisms of the Fed's parasitic transfer of wealth are well-known. Here's one:
the Fed "loans" money to the Feudal Lords at 0% interest. the Lords then loan this free
money out to peasants, students and other debt-serfs at high rates of interest. The
interest "earned," courtesy of the parasitic Fed, is theirs to keep.
If they can't find enough debt-serfs who can pay more interest, they can always deposit the
free money back at the Fed and earn interest from the Fed itself.
Here's another: the Fed "loans" free money (0% interest) to the Financial Lords,
who then buy low-risk long-term U.S. Treasury bonds paying 3%. When the Lords spot
a better skimming opportunity, they sell the bonds to the Fed, who buys the bonds
from the Lords as part of its "Operation Twist."
By Stephen L. Bernard and Vincent Cignarella: Feijoada, the traditional black bean stew and
national dish of Brazil, will soon replace fish and chips as the cuisine
of choice among currency traders. 
