12-20-2008, 01:40 PM | #1 |
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The 'missing' $2 Trillion...
Bloomberg is suing the Fed to know how their balance sheet went from $600B to about $2.2T. Seems Bernanke has been at the computer, "printing money".
http://www.bloomberg.com/apps/news?p...iiM&refer=home RE: the Fed moves - Good? Bad? Necessary? Yet more intra-Wall Street back scratching? RE: Bloombergs request / lawsuit - Should we know? Do we *want* to know? |
12-20-2008, 02:49 PM | #2 |
I must not tell lies
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Absolutely; this is our money. Yours and mine. The government's budget comes from taking from the taxpayer. If they are using our money inappropriately, we have the right to impeach them.
2.2 trillion / 305 million citizens = $7200 per person |
12-20-2008, 03:49 PM | #3 |
Demiurge
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This is FUBAR.
The people in power think they only answer to themselves, they have no concept that sovereignty comes from the PEOPLE. We are going to find out that highway robbery was and is taking place. |
12-20-2008, 04:13 PM | #4 | |
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"The beauty of baseball is not having to explain it." - Chuck Shriver "This is now the joke that stupid people laugh at." - Christopher Hitchens on IQ jokes about GWB. Last edited by il Padrino Ute; 12-20-2008 at 04:16 PM. |
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12-20-2008, 04:58 PM | #5 | |
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12-21-2008, 06:06 PM | #6 |
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I would argue that when the *Fed* is doing this, it's not our money, in the same sense that the actual budget deficit and national debt involves our tax money, directly. What Treasury does involves real money, definitely.
The fed "prints money" to manage the money supply. If the money supply stays stagnant as growth occurs, dollars become scarce, deflation occurs, hence the Fed increases the money supply over time. (This is the same reason the gold standard was abandoned - there is a finite amount of gold.) What the Fed is doing now is taking toxicity out of the economy by printing money (electronically) & putting that money into the economy. What the fed is doing doesn't involve our money directly. immediately, but pumping this kind of money into the economy will provoke inflation, which *does* affect us directly. Bernanke's analysis of the Great Depression indicates he will do whatever it takes to keep the economy flowing, stem serious decline in economic output, and then deal with inflation later. At this point, the estimates I've seen put inflation in the future in the 8-10% range. The question becomes is this a reasonable price to pay - if the choice is unemployment in the 15-20% range vs dealing with deferred inflation, which poison does one choose? I don't think there is much of a choice, personally. I have to trust Bernanke... and soon, Geitner. Last edited by Ma'ake; 12-21-2008 at 06:08 PM. |
01-01-2009, 04:01 PM | #7 | |
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01-02-2009, 01:19 PM | #8 | |
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Interestingly, FDR had the opportunity to make the Fed a government-only entity but, in a nod to private interests, went with the hybrid. |
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