Fed EXpands Debt by One Trillion Dollars and No One Cares

The Federal Reserve Bank bought one trillion dollars of public debt, in effect moving a trillion dollars from one coat pocket to the next and nobody knows it. This is unprecedented. While we're arguing back and forth about a $165 million bonus package for fifty swells at the country club, Obama, Inc. is devaluing the currency and looking to spark some heavy inflation.

Pay no attention to that man behind the curtain...

http://www.theglobeandmail.com/servlet/story/LAC.20090319.IBFED19/TPStory/Business

ohio county wrote:The Federal Reserve Bank bought one trillion dollars of public debt, in effect moving a trillion dollars from one coat pocket to the next and nobody knows it. This is unprecedented.

Well "Yes", between the Federal Reserve Bank and the US Treasury that is.

But not between the Internal Revenue Service and the US Treasury.

Those newly created Federal Reserve Bank IOU's payable to the US Treasury will be placed in that same "lock-box" in the Bureau of Public Debt in Parkersburg that contains all those US Treasury IOU's payable to the Social Security Trust Fund.

If anyone remembers, that is what I was trying to get hammered into Keith Septic's
thick skull about the Social Security Trust Fund when I was telling him "the Government can not loan money to itself" because that was the same as taking it out of one pants pocket and putting an IOU in the other pocket just before they spend it.

The other example I used was: A husband can not loan his wife any money if she has no other means of income ....... because he would have to give/loan her additional money so that she could re-pay her loan from him.

But now the really big question concerning all this new debt that Obama has created and is in the process of creating …….. is how he is going to pay it off, ….. aka: decrease the Budget Deficit, ……. since this recession of increased expenses and loss of jobs will surely and drastically decrease the Tax Revenues collect for Fiscal 2009, 2010, etc. Less income and more expense ……. means less taxes owed.



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Chairman Bernanke said during the 60 Minutes interview that aired a week ago he blamed the Federal Reserve for the Great Depression because they didn't increase the money supply. That is his answer to the recesssion. He thinks he can manufacture money to get out out of this mess.

We are so screwed.

This is a verdict on the failed policies of the last eight years that said

that we should strip away consumer protections, let the market run

wild, and prosperity would rain down. Step one was a rescue package

that means making sure taxpayers get their money back. The

middle-class need a rescue package. That means tax cuts for the

middle-class. It means help for homeowners. It means we are helping

state governments set up projects that keep people in their jobs.

We’ve got to fix our health care system, we’ve got to fix our energy

system. You’ve got to have somebody in Washington who is thinking

about the middle class and not just those who can afford to hire

lobbyists (bangs dais/shows anger).

OK. Are you banding that dias and showing that anger with a lisp, or with a vodka & tonic posing as water? I'm just trying to figure out who you are.

We are the President. Look, this is the economy we inherited. We didn't

come here to spend and tax and increase the deficit. This is what my

predecessor left me with. You don't like what we're doing? You should

speak to Mr. Bush.

We don't often drink liquor here in the White House. When we do we

favor a very dry vodka martini. We have not indulged since we served

up that $100/lb steak...

Oh yeah, but you're the guy who admitted he inhaled. OK. Sometimes it's difficult to keep you all straight.

Stephanie wrote: I'm just trying to figure out who you are.

One (1) good guess ought to solve your problem.

Course I could be wrong.

"Look, I understand Congress' frustrations," he said on "The Tonight Show with Jay Leno." But he suggested that legislators were being more vindictive than constructive.

Everybody's angry... but I think that the best way to handle this is to make sure that you close the door before the horse gets out of the barn. And what happened here was the money's already gone out, and people are scrambling to try to find ways to get back at them," he said.

http://online.wsj.com/article/SB123750431956789767.html

Isn't this the guy who signed the bill that contained the loophole that allowed AIG to pay the bonuses? Wasn't he also the guy that starting demagoguing the issue? Is it too much to ask that he show some leadership on the issue by doing his Constitutional duty, promising to veto this ex post facto bill and work harder at it next time?

This is what you get when you elect an individual with limited experience who preferred in previous offices to vote "present" on important legislation to the White House. He requires extensive on the job training. The audacity is we're all hoping he gets a clue before unemployment rates reach Depression era levels.

It will be interesting to see how many bills he allows to become law without his signature.