Welfare for the Rich

Filed in National by on February 19, 2008

While reading this please keep in mind that unemployment benefits weren’t extended by the Republicans nor were other programs like food stamps in Bush “stimulus” package.

NEW YORK (Reuters) – Banks in the United States have been quietly borrowing “massive amounts” from the U.S. Federal Reserve in recent weeks, using a new measure the Fed introduced two months ago to help ease the credit crunch, according to a report on the web site of The Financial Times

thanks to daveski we hve the original source…but it requires a sign in

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Comments (9)

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  1. jason330 says:

    My blood just ran cold.

    I’ve been thinking that, in spite of everything, total economic catastrophy was probably a long shot.

    Reading “Banks in the United States have been quietly borrowing “massive amounts” from the U.S. Federal Reserve “ just freaked me out.

  2. anon says:

    This borrowing is necessary to support the recent interest rate cuts by the Fed.

    On technical economic grounds, the Fed should be raising rates now, not cutting them, and we should all bend over and take a recession so healthy growth can be restarted.

    What we are going to get now is inflation, low growth, and an even weaker dollar.

    The only possible good news is:
    1. With significant inflation, US consumers can pay down their debts with cheaper dollars. But there has to also be wage inflation for this to work. So everybody go demand a raise.
    2. With cheaper dollars, we may actually start to export manufactured goods again.

  3. Tyler Nixon says:

    Reading things like this makes me wish that Ron Paul’s raising monetary policy and the Fed as campaign issues had caught on in the larger discourse.

    His whole assertion was that the Federal Reserve is a private bank capable of being manipulated by private interests for private gains in an endless and worsening series of boom/bust cycles.

    He said that the flooding of the economy with billions of dollars (e.g. “printing money”) is done in a way that benefits those who get their hands on it first (banks, financial institutions, government deficit-spenders) before the inflationary effect of it sets in and harms the rest of us at the end of the money chain, as all of our dollars are increasingly devalued.

    He calls it a massive wealth transfer from the poor and the middle class to the wealthy.

    He lays it out precisely right here :

    http://www.youtube.com/watch?v=Qfyo7cUevwY

    I know people like to scoff at Ron Paul but someday, possibly sooner than later, we all may realize his sounding the alarm on a privately-controlled runaway monetary policy combined with massive deficit borrowing will ultimately destroy our economy as it has with every nation or empire that has followed this path.

  4. Tyler Nixon says:

    Oops, I meant to say “he sounded the alarm on how…”

  5. David says:

    This cracks me up. Reuters writes an article based on another article and puts quotes around massive amounts. Shoddy journalism.

    Here’s the original article, http://www.ft.com/cms/s/0/66db756a-de5d-11dc-9de3-0000779fd2ac.html?nclick_check=1

  6. jason330 says:

    Gracias David.

    I don’t feel any less freaked out though.

  7. donviti says:

    is it david or nemski?

  8. nemski says:

    nemski . . . i f’ed up on my login.

  9. nemski says:

    Let me just say I don’t understand big time finance . . . I’ll leave that up to Skull & Bones, the Masons and the International Jewish Conspiracy.