American Taxpayer: You Owe Federal Reserve Inc. $1,000,000,000,000 Plus Interest.
The privately owned Federal Reserve Bank is about to wave its magic wand and create,with just a few keystrokes, over one trillion dollars. This money will be lent to the Bush Junta, at interest of course, in order to solve the crisis currently engulfing US financial institutions. What is happening, in summary, is that a few CEO's made billions of dollars on shady deals, and now a private company called the Federal Reserve is going to own your great-grandchildren.
www.henrymakow.com/the_fed_is_making_a_killing_on.html
The purchase price for the mortgage lenders, Bear Stearns and AIG is
over $300 billion. Now the assumption of the bad loans held by the
banks may cost an additional trillion dollars.
If the US Treasury created its own money, this might be bearable. But
last I heard the system of money creation has not changed.
I'm not an economist but it seems that the Fed is making a killing on
our banking woes. The Fed is creating this "money" out of thin air and
using it to buy US Treasury Notes and Bonds. The Treasury (i.e. US taxpayer)
are on the hook for these securities plus interest.
over $300 billion. Now the assumption of the bad loans held by the
banks may cost an additional trillion dollars.
If the US Treasury created its own money, this might be bearable. But
last I heard the system of money creation has not changed.
I'm not an economist but it seems that the Fed is making a killing on
our banking woes. The Fed is creating this "money" out of thin air and
using it to buy US Treasury Notes and Bonds. The Treasury (i.e. US taxpayer)
are on the hook for these securities plus interest.
by Richard C. Cook
Where did the banks get this credit? The answer is that they simply
cranked it out through their fractional reserve privileges derived from
their government charters. In fact the only way money comes intoexistence in this day and age is through a loan from a bank which must
be repaid with interest. The loan is secured by the borrower’s
collateral or promise to pay. But the cumulative interest load on the
economy grows exponentially. As a part of the federal budget, for
instance, interest on the national debt is around $500 billion a year
and growing.
