Posted on 12/09/2008 11:04:59 PM PST by Vince Ferrer
The U.S. Federal Reserve is considering issuing its own debt for the first time, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Fed officials have approached Congress about the concept, which could include issuing bills or some other form of debt, it said.
(Excerpt) Read more at reuters.com ...
On the other hand, even doing this could crash the dollar, because maybe the federal reserve notes we use as dollars would now be back by the full faith and credit of those bonds.
and if it goes bankrupt, don’t bail it out.
but you know it will. Just like everyone else these days
I'm afraid some of these maroons are going to do serious damage to our economic engine, while they implement their term paper theories and college professor ideas.
People need to understand one basic principle when it comes to our fiat fractional reserve system: "DEBT IS MONEY, MONEY IS DEBT".
The Fed ("bankers") would be able to create all of the money that they wanted, without pesky Congress getting in the way.
The Fed has only done this in an emergency one other time - in 1933!
However, those notes were redeemable for gold. The current Fed debt would be backed by US!
Get your pitchforks and torches ready folks!!!!
The death of the US Dollar.
The Federal Reserve isn’t a private company that can go bankrupt. It’s an organization of banks authorized by Congress, and its earnings come from its holdings of Treasury bonds.Unless the Treasury ceases to pay interest on its debt the Fed isn’t going broke.
Are they not doing that already?
What will this do to the value of the dollar?
Ping!
so it is like freddie/fannie?
However it might be that the very purpose of these new "Ben Bonds" (as Carter Bonds, where Ben Benanke is the current Fed chairman) would be to back newly printed Dollars that are no longer backed by US Treasuries and tax collections, but rather are backed, say, by the pile of financial debt paper crap recently added to the Federal Reserves balance sheet.
Perhaps doing this would allow cutting the Dollar lose from the credit rating of the United States government and its Treasury debt, letting the Dollar sink and perhaps opening the door for a new currency, while not blowing up the soverign debt of the United States (and not blowing up you and me, as might happen if China got too pissed at us if we defaulted on all those Treasuries they are holding.)
Freddie and Fannie issued mortgages of dubious worth. These new Ben Bonds would be used to back newly printed dollars of dubious worth.
These new "Ben Bonds" would be used, as best as I can guess, to issue more dollars, aka "Ben Bucks", which were no longer backed by Treasuries, meaning that the Federal Open Market Committee would make no pretense of soaking up any excess (inflationary) "Ben Bucks" by selling Treasuries.
The Dollar bill would go the way of Mortgage Backed Securities, to worthless paper heaven, along with Confederate dollars, Zimbabwe dollars, and Weimar Deutschmarks.
But the credit rating of the United States government, and the worth of the U.S. Treasury debt it has issued, reclared in some new currency, could remain strong (hah hah).
So actually, this becomes the opposite of Fannie and Freddie paper, which ended up morphing into Treasuries and still being honored by the "full faith and credit" (and IRS tax collections) of US. China held too much Fannie and Freddie paper, so we could not stiff them. Holders of these Ben Bucks and Bonds would be the likely losers in this shell game.
Better exchange your Federal Reserve Notes for gold or silver now...
There are several places one could have ones money (or lack thereof):
In inflationary times, such as much of the last 30 years, debt was a relatively good place to be, as one could pay it off with cheaper dollars. And careers and businesses were valuable most of the time as well - as salaries increased easily paying off the small investment it took to get started.
We are likely at a major inflection point.
I recommend:
Fairly simple. With a crashing domestic and global economies, the NWO’s next 2 steps are to kill the dollar and then issue something like the Euro for the northern western hemisphere. This is needed in order to set up and force into existence the Association of North American United States (ANUS).
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