How the FED manipulates the economy.

The manipulation of our economy that led to the election of the Usurper Obama began with the manipulation of the oil price. The graph shows that jacking up the oil price reduced the DOW:

The economy was literarily crashed when the FED changed the accounting system the banks had to use to the so-called "mark to market: system. This allowed the FED to virtually stop money circulation:

and tie up the money in increasing bank reserve requirements. Predictably, the economy went into the tank. Note that GDP growth did not cross into negative terrirory untill AFTER the FED action. The FED continues to manipulate.

Note also that the amount of reserves the banks now have has become very large. How come? Because the FED pays the banks interest (a guaranteed profit without risk). By manipulating the size of this reserve (by increasing or decreasing what it pays to the banks), the FED can keep inflation low as well as manipulate gold prices and keep the economy limping along. Presumably, the FED will push the banks to make loans coming next year in order to spike a sudden increase in employment.

Who gave the FED this authority? No one.

The economy was manipulated because VxM = QxP, where V is the velocity of money, M is the money supply, Q is the GDP and P is prices. By drastically reducing V, the FED crashed Q. Now the FED is manipulating M (by locking it up in bnk reserves in order to keep P from increasing. Keeping a trillion dollars in reserves costs money, but the FED does not care. As long as Obama is in there and the Media is in their pockets, they can keep the scam going. In the long run this will ruin the dollar, but by then the Conspirators hope to convert us into a Marxist-led country.