The Federal Reserve pushed down the interest rate on Treasury Bonds by purchasing $6.5 billion worth on Tuesday. The Federal Reserve is buying huge blocks of US Government debt, there has to be a name for this in con-man slang; double shuffle, bait and switch? (any con-men or bunko cops please feel to enlighten us) They are issuing Federal Reserve Notes backed by the full faith and credit of the United States and using them to buy US bonds because nobody (even China) will buy them at an interest rate we can afford to pay. How much "full faith and credit" does the US really have?
Meanwhile Obama wants to give broad new powers to the Federal Reserve to regulate banks and other companies as it sees fit. Secretary Geithner is facing a skeptical Congress. Republicans broke into their usual chant of "no regulation at anytime, anywhere!" Democrats are skeptical about having the Fed regulate anything since they didn’t use any of the powers they did have to prevent the mess we are in now. Mr. Geithner is well aware of this since his former job was Governor of the New York Fed and it was he who personally who handed out 9 trillion dollars last year to keep the entire financial system from collapsing.
The question is, who are Obama and Geithner working for? The rumor is that giving the Fed new powers will result in new powers for the Congressional Committee that oversees the Fed. But the Bush Crime Family proved that oversight committees aren’t worth the powder to blow them to Iraq. In case anybody hasn’t heard the news, the Federal Reserve is a private banking system controlled by Wall Street bankers. Sounds crazy but it’s true.
Compared to Alan Greenspan, Bernie Madoff was stealing lunch money. There should be wholesale prosecutions. The question is why not? Is Obama afraid of panic or does he lack the power to go after these people. The top 1% own 90% of everything but most of it is paper and it would all go away if the Fed was done away with. The rich whine about paying all the taxes but in reality they are taxing us by their ownership of everything. None of it was acquired by hard work or even shrewd investment but rather by controlling the paper shuffle. They are so unconcerned with the creation of real wealth that they have sold that to China and Japan for more paper. It’s no wonder China and Japan consider us barbarians.