Posted on 05/04/2010 3:35:37 AM PDT by Tolerance Sucks Rocks
When the mainstream media told the American people that the Federal Reserve was going to "help" the housing industry by buying up hundreds of billions of dollars worth of toxic mortgage backed securities, very few people probably even stopped to wonder where all of that money was going to come from. Well, the truth is that it did not come from anywhere. It was made up out of thin air. In fact, a total of 1.3 trillion dollars was just "printed into existence" so that the Fed could soak up these problematic securities (and help their buddies down on Wall Street in the process who were desperate to dump them). During a recent Joint Economic Committee hearing on Capital Hill, U.S. Representative Ron Paul directly confronted Federal Reserve Chairman Ben Bernanke about this 1.3 trillion dollars. As Ron Paul described how this 1.3 trillion was just created out of thin air, all Bernanke could do was nod his head. Why? Because it was the truth.
Of course we all know that the Federal Reserve creates money out of thin air all the time, so that is not new, but what is new is the recklessness and openness with which they are going about doing it.
Need to help your buddies down on Wall Street by buying up a tsunami of bad mortgage securities?
Just zap another trillion dollars into existence!
Need to bail out the mortgage giants Fannie Mae and Freddie Mac?
Just get the magic money printing machine ready!
Wouldn't it be nice if the rest of us could create money out of thin air? It would make life so much easier.
A video clip of the exchange between Ron Paul and Bernanke at this hearing is posted below.
(Excerpt) Read more at theeconomiccollapseblog.com ...
The penance for this act is coming.
Talk about anti-environment, how many trees died to print up all that money?
Not to be a ‘godbug’ but, if you find a 1650’s Dutch Republic gilder, it’s in gold and worth something. It still has value. What if you find a note from that era? Nada, zip.
What we are seeing in Greece is a tax strike. The citizens don’t want to pay the amount of taxes for the larger, growing, lousy government. The Greek Mafia, Socialist, thieving or just plain plantation government now can not even get outsiders to give it money, so they have suckered the EU. Basically threatened the EU lying thieving government. Loan us( yeah, right ) or we will pull you down too.
Real capital, labor, machine, workers, business are hiding their capital from the thieves, whom we are told are almost Temple like deities that with out government theft organizations, the sun won’t shine, farmers won’t farmer, manufactures make and all sorts of stuff.
What will happen is that legions on welfare, and legions of government clerks, form fillers, shufflers, interferers , stand abouts, coat holders, floor waxers will all be out on the street.
Nothing worse than a mirror image train wreck. ;~>
And that was probably what he had in change after buying the meal. :-)
Now that’as monetary policy you can believe in!
I think you’re right!
RE post 5. Well said.
Yes..The inflation which will put an end to the American way of life is almost inevitable as a result of this. Printing money is nothing but counterfeiting because it is stealing the value of everyone’s dollar. Why do our government agencies get away with crimes which would be punished to the full in the private sector? Is it any wonder Glen Beck is calling Washington D.C., CRIME, INC.?
In fact, just a small fraction of US dollars are actually printed for circulation. Most of the money used for market transactions is electronic data. The only paper it ever sees is tally sheets. This 1.3 trillion was created with the push of a button. Hopefully it will someday be eliminated the same way...
save
Smoke and mirrors!
Step right up ladies and gentlemen, see the collapsing economy and the invisible hand.
http://www.youtube.com/watch?v=d0nERTFo-Sk
This sums up the differing world views. I am a Hayek fan.
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