By Moe Bedard
Of course we all know trillions of taxpayer dollars have been spent and will be spent on bailing out banks and major corporations. Reports on major news networks and newswires carry a number of traditional stories about the various government aid plans: (1) it’s not enough aid; (2) it’s too much aid; (3) it’s going to the wrong people; and (4) some companies are simply too large to fail (AIG). Few reports I’ve read really describe the strings attached to government aid. Bloomberg ran a story today on The Vice Fed Chair Donald Kohn’s ideas about the continuance of continued Fed and Government bailout aid. Again, this report was somewhat of the traditional type indicating in typical “fed speak” that eventually aid must end for continued economic growth in the US. The most surprising comments weren’t about aid eventually drying up but the Vice Fed’s comments on their exit strategy. Honestly, his remarks are some of the most frightening things I’ve heard from anyone in a position of power to set monetary policy:
“The Federal Reserve must be prepared to exit from its various programs when the time is right,” he said. The Fed “would benefit from new tools that would allow it to drain reserves from the banking system.” (emphasis added)
Kohn said the Fed and Treasury are seeking such tools from Congress. One possibility is that the Fed issue its own securities, or “Fed bills.” Another would be for the Treasury to issue special bills, and put the cash on deposit at the Fed.
“It is important to get either of those tools exempt from the debt ceiling so that the Fed could have the power to absorb all the reserves it wanted to,” Kohn said in response to a question. “We can’t go into this without knowing how we are going to get out again.” (emphasis added)
Source:Bloomberg
I’m not an economist. I’m not a master of comprehending “Fed Speak” either. But for the love of God…shouldn’t we be concerned about people in control of monetary policy hell bent on draining reserves from our banking system? The Fed is specifically indicating that it’s seeking more power over the American people and if we as citizens don’t do something to stop it the Fed’s grasp over the banking system, I assume our government and the collective body of American citizens will no longer control our banking system…the Fed will.
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They already do and have for a long time. This entire mess was a conscious effort to take control of the banking system. The fed is responsible for lending money to the other banks and they knew what the underwriting criteria was when they lent the money. They knew that some of it would not be paid back, but lent it so they could gain more control over the system as a whole. Totally planned.
The federal reserve is a den of homosexuals and Ben Bernanke is Bear in Chief.