We’ve extensively documented that the Federal Reserve is intentionally locking up bank money so that it is not loaned out to Main Street. Specifically – due to Fed policy – 81.5% of all money created by quantitative easing is sitting there gathering dust in the form of “excess reserves” … instead of being loaned out to help Main Street or the American economy.
And we’ve extensively documented that a large percentage of the bailouts went to foreign banks (and see this and this). (A 2010 Fed audit also revealed that of the $1.25 trillion of mortgage-backed securities the central bank purchased after the housing bubble popped, some $442.7 billion – more than 35% – were bought from foreign banks.)
It turns out that these themes are all connected.
Specifically, most of the Fed-created money which is gathering dust is actually being held by foreign banks….
So what do you think will happen when/if the economy starts turning around based on some “jobless recovery” ? All that paper will be invested in the US infrastructure and that infrastructure will become the property of foreign banks or those that “borrow” from them.