Sematary
10-01-2008, 05:59 AM
This story finally put it all in perspective for me - about how the fed was creating money out of thin air to prop up wall street. Some excerpts:
In fact, the trillions of dollars that have been lent to the banks in the last few weeks were created out of nothing by the privately-owned Federal Reserve. When the Federal Reserve "lends" money to a bank through repurchase agreements (repos), credit auction or other method, it is not actually lending out money from its vaults. It is simply creating the money it "lends" out as electronic credits created in the recipient banks account. It is literally money out of thin air.
NOW, it's beginning to make sense.
That the general public is on the hook for this money created out of nothing is not an exaggeration. It is paid for in a dimly-understood mechanism often known as the "inflation tax."
That part I knew.
Why, then, is the public not furious about this stealth bailout, now taking place at the blistering pace of nearly $1 trillion a week, and all to the taxpayer's detriment?
He has the answer here:
The obvious answer is that the media is not whipping the public into a frenzy about it, instead focusing its attention on a $700 billion program and allowing the public to feel like they scored a blow against Wall Street when the program gets rejected. If so, it's time the public got wise to how the system is really being run by and for the benefit of private bankers and at the expense of the average taxpayer.
He gets it a little wrong here. It's not just the average taxpayer but every single person who purchases ANYTHING because inflation hits even those who don't pay income taxes.
http://www.corbettreport.com/articles/20080930_bailout_by_stealth.htm
In fact, the trillions of dollars that have been lent to the banks in the last few weeks were created out of nothing by the privately-owned Federal Reserve. When the Federal Reserve "lends" money to a bank through repurchase agreements (repos), credit auction or other method, it is not actually lending out money from its vaults. It is simply creating the money it "lends" out as electronic credits created in the recipient banks account. It is literally money out of thin air.
NOW, it's beginning to make sense.
That the general public is on the hook for this money created out of nothing is not an exaggeration. It is paid for in a dimly-understood mechanism often known as the "inflation tax."
That part I knew.
Why, then, is the public not furious about this stealth bailout, now taking place at the blistering pace of nearly $1 trillion a week, and all to the taxpayer's detriment?
He has the answer here:
The obvious answer is that the media is not whipping the public into a frenzy about it, instead focusing its attention on a $700 billion program and allowing the public to feel like they scored a blow against Wall Street when the program gets rejected. If so, it's time the public got wise to how the system is really being run by and for the benefit of private bankers and at the expense of the average taxpayer.
He gets it a little wrong here. It's not just the average taxpayer but every single person who purchases ANYTHING because inflation hits even those who don't pay income taxes.
http://www.corbettreport.com/articles/20080930_bailout_by_stealth.htm