DrEast
09-29-2008, 09:55 AM
The abomination bailout, if it passes, will institute an "Office of Financial Stability" within the Treasury.
"Office of Financial Stability?" That's what the Federal Reserve was always billed as, you hacks.
So, instead of admitting that Keynesian economics is fundamentally flawed and that the central bank of the US was basically designed to just give vast power to bankers, financiers and politicians, the bankers, financiers and politicians have now decided that we need TWO central banks.
The government: If at first it doesn't succeed, do it again!
Edit: Actually, there's a great synergy here. The Federal Reserve will loan banks money so they can buy up worthless inflated paper, thus keeping it inflated, and then the Treasury will give the banks money for the worthless inflated paper, which also helps keeps the price of the paper up so that the Treasury can turn around and sell it... to the banks... for Federal Reserve money...
Phew, bankers dodged a bullet there! Lord knows we need to prevent risk from having consequences or the entire system would go down.
Edit: I just realized there's no time limit on how long the Treasury can sit on this bad paper. Inflation can make a loss look like a profit on the resale, and the entire edifice becomes an elaborate, ongoing method of transferring money from taxpayers to banks.
ETo view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
"Office of Financial Stability?" That's what the Federal Reserve was always billed as, you hacks.
So, instead of admitting that Keynesian economics is fundamentally flawed and that the central bank of the US was basically designed to just give vast power to bankers, financiers and politicians, the bankers, financiers and politicians have now decided that we need TWO central banks.
The government: If at first it doesn't succeed, do it again!
Edit: Actually, there's a great synergy here. The Federal Reserve will loan banks money so they can buy up worthless inflated paper, thus keeping it inflated, and then the Treasury will give the banks money for the worthless inflated paper, which also helps keeps the price of the paper up so that the Treasury can turn around and sell it... to the banks... for Federal Reserve money...
Phew, bankers dodged a bullet there! Lord knows we need to prevent risk from having consequences or the entire system would go down.
Edit: I just realized there's no time limit on how long the Treasury can sit on this bad paper. Inflation can make a loss look like a profit on the resale, and the entire edifice becomes an elaborate, ongoing method of transferring money from taxpayers to banks.
ETo view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.