Posted on 02/09/2014 7:58:51 AM PST by Errant
What is their budget. Can we get by without it as Ron Paul said?
The Creature From Jekyl Island is taking its last chomps out of the Republic before the golden goose is dead.
The Federal Reserve CREATES money (actually, debt) out of thin air. They’ve done this under Obama to the tune of $85 Billion Dollars per MONTH for over 4 years. They recently backed this off to $75 Billion per month, but it comes to over a Trillion Dollars a year, created out of thin air.
They take this money and essentially buy T-bills that helps to legitimize the US Debt, and they spend the other ~half on Mortgage Backed Securities (the stock market).
They recently blasted out a brag to the world that they have a $4.3 Trillion Dollar Surplus! Oh Goody! Guess where that $4 trillion came from and what it is comprised of? Yep, the same crap they bought with the money they created out of thin air. They are, in fact, as broke as I am, most of us are.
I’m thinking more “Island of Dr. Moreau”
You don’t need no steenking budget when you can create money out of thin air.
It is owned by the biggest enemies to America.
I have a cousin who works for JP Morgan. The Fed did something like that to them back in 2007, loaned them money they didn’t want or need and required them to buy a few failing banks. It’s seems to be the Fed’s way to absorb failing financial institutions before they publically crash and burn. One of the banks JP had to buy back then they bought for cents on the dollar and it was still way too much, that’s how bad of shape the bank was in - and the public had no clue. It was the same type of weekend assessment - JP went in on a Friday by Sunday they knew it was worth about $2 per share. They acquired it on Monday morning for $12 per share - which was still way below what it was trading at. So JP looks like a vulture to the public that don’t know what went on behind the curtain.
Yes, but I was thinking more of the social experiment gone awry that we are witnessing now.
A lot of people should have went to prison that didn’t. They got massive amounts of money from the government instead. The worse affect of this is the message it sends to the people. When huge bailouts like this happen as a result of a corrupt system, it reduces or removes any inclination your average person may have against taking government handouts or lying here and there to ‘get theirs’.
That’s the REAL ‘moral hazard’ in this. When banking executives and politicians are getting away with it, many folks won’t think twice about doing such things themselves. It’s a downward spiral. When our country loses the ‘Rule of Law’ and the morality of doing the right thing, eventually everything else will go with it.
The Bear Stearns deal might have been the one he was telling me about. The Fed drove it - not JP. Other healthy financial institutions had to do the same thing, absorb failing banks - all at the Fed’s directive.
You’d think the US government could cancel the “debt owed to the Federal Reserve”. Then the feds could stop the quantitative easing and our tangental spiral to financial collapse. Or else it’s debt curve, have we got an asymptote in store for you.
You’d think that, but those T-Bills can’t just be ‘liquidated’. What would other T-Bill holders, many foreign, say? As for the MBSs, well, remember the big bubble and all of those ‘credit derivatives?”
Frankly, touting that $4 Trillion like it is an asset is evil, IMO, especially since it was nothing but unbacked, unsecured credit to begin with.
Ellen is funny. I guess this pays better than her alternative health scam.
Who created the FED? Government. What do you think? Pretty simple answer. Government.
Lol, thanks for chiming in. I was actually trying to remember you handle in order to ping you! ;)
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Who created Government???
This is what happens when a clown, Ellen, does a google search instead of doing original research.
The Fed opened a line of credit for AIG, but the Treasury, through TARP, ended up buying the stock, not the Fed.
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