Monday, November 24, 2008

American Challenge $7.4 TRILLION .. an amorphous blob gobbling up all available money for any purpose

Here is your presidency, Mr. Obama. Just as 9/1 defined George Bush's world so this defines yours, unless the mass murderers set off a nuke. Nothing else you do in the next four years matters compared to whether or not you do something to hinder recovery or destroy it.
The schwehrpunkt of this mess is American consumer confidence. Engender that and this nation and then the world will recover. To do that the great mass of Americans will have to be convinced that not only will there be a paycheck next week, but that the entire economy will not be surprised by some unforseen disaster caused by greed, lack of oversight, well meaning social stupidites, ideologies, or incompetence. In other words, confidence the government works.
So be sure what you propose CAN achieve it's purpose, and be prepared to throw everyone under the bus until whoever runs your little expeiments will ensure they carry through to success.
Anything else and you have failed before you have begun.
Be lonely, ruthless, and most of all, have no fear of failure, but instead substitute the readiness to do the next thing when failures begin to occur.
No Hamlet, Barack.

Fed Pledges Top $7.4 Trillion to Ease Frozen Credit (Update1)

Nov. 24 (Bloomberg) -- The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department's $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis.

When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight. Now, as regulators commit far more money while refusing to disclose loan recipients or reveal the collateral they are taking in return, some Congress members are calling for the Fed to be reined in.

"Whether it's lending or spending, it's tax dollars that are going out the window and we end up holding collateral we don't know anything about," said Congressman Scott Garrett, a New Jersey Republican who serves on the House Financial Services Committee. "The time has come that we consider what sort of limitations we should be placing on the Fed so that authority returns to elected officials as opposed to appointed ones."

In 2007 the public debt was 60% of the national GDP.

We are about to add SEVEN TRILLION PLUS in the span of a few months in an unanticipated, unbudgeted fashion.

Six months ago, nobody had any plans for this. This is not just this admin, the federal reserve has been around for a while

Who has a clue?


Pastorius said...

Forgive my ignorance, but this article says "the Fed" is pledging to make this money available, and that Congress is calling for the Fed to be reined in. How is it that "The Fed" is able to make decisions independent of the Executive, Legislative, and Judiciary?

Reliapundit said...

the gop warned the congress that fannie mae would cause this and the dems in congress blocked reform.

fannie mae collapse is chickenfeed compared to our medicare/soc sec pledges.

as for the 5:

it ain't bad, really.

people buy homes several times the amount they earn each year - that's why mortgages are for 20-30 years.

we can pay off this new d ebt.

one day we will.

the thing that scares me is imagining what obama will spend his trillion on.

what will it be?

useful stuff or crap top lefties like acorn?

obama one had 160 million to give away to help the chicago schools.

he gave it to lefties and the schools went on sucking bigtime.

remeber: this entire collapse is due to fannie mae and fannie's collapse is entirely due to the ems in congress and the leftwing/socialist plan to force banks to give homeloans to people who couldn't afford them.

Epaminondas said...

Pasto- The fed was given the authority by congress.
Funny how everyone in north america missed that one, huh?

As far as how much is being spent....

Lehman Bros was Sept 15th

Who KNOWS what's coming?

Anonymous said...

The Federal Reserve Bank is a consortium of twelve private banks which are not part of the United States Government.

These private banks purchase paper notes from the U.S. mint for printing cost or simply enter digital money into their computer then lend back the money plus interest to the people through member banks. The profits go into the share holders of the bank's pocket's, the U.S. public receives no benefit.

The Primary Owners of the Federal Reserve Bank Are:
1. Rothschild's of London and Berlin
2. Lazard Brothers of Paris
3. Israel Moses Seaf of Italy
4. Kuhn, Loeb & Co. of Germany and New York
5. Warburg & Company of Hamburg, Germany
6. Lehman Brothers of New York
7. Goldman, Sachs of New York
8. Rockefeller Brothers of New York
All the primary owners are branches of European establishments. Foreigners, almost entirely Jewish, control the United States Money supply. They literally own exclusive rights to the dollar and simply enter dollars into their banks books to make money which they then lend back to us at a profit. For them money does not grow on trees, it is simply a data entry into their account. Clearly the private ownership of the U.S. Dollar is by far The Greatest Crime of the Century. The owners of this bank have been responsible for instigating all the major wars and depressions in the last 100 years. They own the bank, they own the dollar and they own all the major media channels, the military industrial complex and most politicians, judges and cops.

Sometimes the bank pays an arbitrary 'franchise fee' to the U.S. government to keep the politicians paid off.

The first two private National Banking Systems lasted about 20 years before being eliminated. The current Federal Reserve Bank private National Bank has lasted nearly 100 years.

In Producer Aaron Russo's must see Movie "From Freedom to Fascism", when interviewing Congressman Ron Paul, Aaron asks: "So the Federal Reserve is actually an illegal entity functioning within the Federal Government?" Ron Paul's response: "It's illegal. And what we have given to this so-called agency is the authority to counterfeit money."

The cost of this system to the U.S. public is hundreds of billions of dollars every year while holding the nation and people in a constant state of debt.

There have been assassination attempts on every President who attempted to eliminate these private National Banks. The privately held Federal Reserve Bank has not once been audited and never pays any income tax on their astonishing income.

The bank is supposed to bring stability to the economy, however, almost every major marked crash and war can be attributed to the Federal Reserve Bank, including the Great Depression, WW I, WW II, the Gulf War etc.

In 1913 in exchange for paying for his Presidential campaign, President Woodrow Wilson signed the Federal Reserve Act handing over the U.S. currency to twelve regional private banks. In 1933 Roosevelt confiscated citizens gold and handed it to these private banks.