Why does the government collect taxes when it can just create its own money and loan it to itself? Everyone wins by doing this. (just imagine if the Fed stopped extending this debt to the treasury. )
This is about as clean as the FICA trust fund.
Of course congress specifically the House must pass a bill spending that money loaned to it (the gubment). But I guess they work for O.
They need to quit free trade policies with low wage countries and get our jobs back. Without fixing that core structural problem, stimulus is unlikely to work and may actually fund the continued off shoring of our jobs.
So, the Fed is buying $40 billion in mortgage-backed bonds per month and now it’s adding $45 billion in treasuries per month. A cool trillion and 20 billion per year. Why, that will only leave a few hundred billion for all those eager buyers of our tresuries which finance our trillion plus annual deficits now.
Or maybe those eager buyers of our treasuries aren’t so eager any more. How much of this is so-called stimulus and how much is the Fed possibly being the only way left to finance the ridiculous Obama deficit spending?
The effect is an effective 6% tax increase on everyone by means of the price of gas and food etc. The MBS buying means also that trash mortgages, held by banks are being transfered to the US tax payer, a continuing bailout of the banks (TARP at 800 billion was chump change). The QE programs make the bailout closer to 6 trillion plus.
It also means the government can continue to deficit spend money it does not have in by way of this hidden tax, in addition to any tax increases. None of this actually helps employment. The continued low interest rates penalize savers and the elderly, genuinely putting granny by the curb.
Gee, more stimulation from the Fed.... This will make a real mess instead of resolving the problem. Gov’t spends too much money and needs to go on a budget diet !
More stimulus TILL WE bust is more like it.
"..oh wait, it’ll all be done with plastic.."
A mark in the forehead or wherever... and not so far away now.
The Council on Foreign Relations was incorporated … on July 29, 1921. Founding members included Colonel House, and "...such potentates of international banking as J.P. Morgan, John D. Rockefeller, Paul Warberg, Otto Kahn, and Jacob Schiff...the same clique which had engineered the establishment of the Federal Reserve System," according to Gary Allen in the October 1972 issue of "AMERICAN OPINION."
During the 1920's, America enjoyed a decade of prosperity, fueled by the easy availability of credit. Between 1923 and 1929 the Federal Reserve expanded the money supply by sixty-two percent. When the stock market crashed, many small investors were ruined, but not "insiders." In March of 1929 Paul Warburg issued a tip the Crash was coming, and the largest investors got out of the market…
Curtis Dall, son-in-law of FDR and a syndicate manager for Lehman Brothers, an investment firm, was on the N.Y. Stock Exchange floor the day of the crash. In "FDR: My Exploited Father-In-Law," he states: "...it was the calculated 'shearing' of the public by the World-Money powers triggered by the planned sudden shortage of call money in the New York Market."
Within the CFR there exists a "much smaller group but more powerful...made up of Wall Street international bankers and their key agents…
Louis McFadden, Chairman of the House Banking Committee declared: "It was not accidental. It was a carefully contrived occurrence...The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all."
What must be remembered is that this is not some lunatic- fringe group...these are members of one of the most powerful private organizations in the world: the people who determine and control American economic, social, political, and military policy. Members' influence and control extends to "leaders in academia, public service, business, and the media," according to the CFR 1993 "Annual Report."
Most members are one-world-government ideologists whose long- term goals were officially summed up in September 1961 State Department Document 7277, adopted by the Nixon Administration: "...elimination of all armed forces and armaments except those needed to maintain internal order within states and to furnish the United Nations with peace forces...by the time it (UN global government) would be so strong no nation could challenge it."
Which leads to Agenda 21…
This is BS. The Fed will keep buying bonds to monitize Federal debt “forever,” and will buy mortgage debt until all of the banks who own true crap mortgages, plus Fannie, Freddie, and the FHA have unloaded all they have for cash to the Federal Reserve.
The fed will not buy bonds that are not issued because there is a new debt ceiling that restricts borrowing to current ceiling levels.
Just keep buying gold folks.