Financial Scam of the Century

Quick lesson on the scam of the century:

Underlying issue: Zero % interest rates

1.) Treasury Bonds (debt created by the government to be paid when matured in the future at various year intervals) are sold to a select group of financial institutions.

2.) Federal Reserve bought them back by printing cash through the QE program for years, inflating the available cash supply (thereby decreasing the value of each dollar in existence.) This fuels bank balance sheets, but due to extremely low interest rates for lending, a majority of that goes into speculative profits from stocks, real estate, and other risky investment vehicles since those yield more profit than loans (to small businesses and individuals like you and I.) This is where the term, "free money" has derived its meaning from.

3.) The result? Little to no benefits are seen on the main street economy, while wall street reaps the benefits of "free money" from the government to do as they please. In other words, when all the headlines were reading that the stock markets were hitting all time highs a year ago, it was really a huge wealth redistribution upwards. While wages remain relatively the same (stagnant), record bonuses were paid to Wall Street exec's based on their annual stock performance.

Ever since Nixon took us off the gold standard in '71, all currencies in the world (which were pegged to the USD) became free floating currencies backed by nothing but the confidence and faith in the government issuing it.

I'd say confidence in the worlds governments is at an all time low now a days wouldn't you agree? Coupled with a stagnant economy, a currency depreciation war around the globe as various countries (Japan and EU) continue their QE programs, and mounting debt spending, who are the central banks trying to fool when they say they'll ever be able to raise interest rates without toppling the house of cards?

Post your thoughts.