The bankers have their cake and eat it up, there’s going to be nothing left for us!

Are you swallowing the story that  the most recent Fed/JP Morgan action to acquire Bear Stearns, along with the other recent market ‘stimulations’  have been “successful”? Then, may I ask that you check again.

The current crisis is so severe, it has already forced the Fed to reach into its own balance sheet so deeply, that a very legitimate question arises, and the question is this: when the Fed ploughs all the way through its own balance sheet and gets to the bottom of the barrel, who will bail it out?

It easy…..

You will.

And so will I, and every other American. Isn’t that nice of us?

And how will we do that?

You will bail out the Fed because, once the Fed burns through its balance sheet of US treasuries with its current Term Securities Lending Facility (TSLF), it can only get more treasuries onto its balance sheet by having Congress allow the Treasury to borrow more money from the Fed than the Treasury really needs.

We are talking monetization of the debt on steroids, here! Mega-steroids, that is.

An article just came out in the Wall Street Journal an hour ago at the time of this writing (actually, make that a “notice” since it has all but two very short paragraphs) that states the following, verbatim:

WASHINGTON — The Federal Reserve is considering contingency plans for expanding its lending power in the event its recent steps to unfreeze credit markets fail.

Among the options: Having the Treasury borrow more money than it needs to fund the government and leave the proceeds on deposit at the Fed; issuing debt under the Fed’s name rather than the Treasury’s; and asking Congress for immediate authority for the Fed to pay interest on commercial-bank reserves instead of waiting until a previously enacted law permits it in 2011.

No moves are imminent because the Fed still has plenty of balance sheet.

What amazing banker wunderkind came up with the idea that the Fed would ask Congress for authority to issue debt UNDER ITS OWN NAME rather than under the name of the Treasury!!

Just take that in for a second.

The Fed bankers, whose progenitors have already bribed our Congress to un-constitutionally turn over Congress’ exclusive power to “coin money” back in 1913, are now trying to persuade Congress to turn over its borrowing power to them as well, thus allowing the Fed to virtually borrow money from itself and issue itself IOUs for that debt.

It is difficult for me to do the gravity of this new idea justice, so as to correctly and adequately imprint upon your conscious mind the sheer and absolute fiscal insanity of such a proposal. Congress might as well turn its entire legislative function over to the Fed, because that’s pretty much what it amounts to.

Once The Fed has the power to borrow from itself and leave Americans on the hook for the loan, it can literally dictate to Congress what laws to pass. (Not that it doesn’t have that power already, but it will be far more obvious then – and it will be too late for you and I to do anything about it.)

Still think the crisis is over or like me are you starting to worry?Now, let’s make this easier to understand. When Congress allows the Fed to thus put Congress into its debt, where do you think Congress gets the money to pay the Fed “back” what the Fed has thus decreed as necessary to have Congress “borrow” from it?

From you.

This entire farce would represent perfect, divine justice if Congress told the Fed, “Yeah, sure. You borrow money from yourself – so go ahead and pay yourself back, as well. Don’t ask us to pay you for what you ‘borrow’ from yourself!”

But, you already know that Congress doesn’t have enough grits in its collectiv(ist?) brain to come up with an idea like that. No, Congress will simply lie down and tell the Fed bankers to have their way with it – and via Congress, with you and me.

The proverbial ‘fleecing of the flock’ has just gone into overdrive, except that now, you will not only be fleeced, but the ‘shepherd’ has suddenly discovered a newfound fondness for bestiality. You know what I mean.

This is the utter and complete raping of the American public – and guess what? Americans by and large are going to go along with it. Are you?

Single Post Navigation

← Older Entry

Newer Entry →