The Emporer Has No Clothes
As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (aka Financial Regulation), yesterday, the Federal Reserve was forced to provide information on their dealings during the Financial Crisis. The results, 2 years late for some transactions, are stunning.
During the Financial Crisis, the Fed made $9 trillion in loans to banks and Wall Street firms in order to prop them up and shore up their balance sheets. Did that $9 trillion come through the cogs of the democratic process or from the coffers of government savings? Of course not—that currency came from straight through the powers of currency creation bestowed on the Federal Reserve.
Nine trillion dollars is a stunning amount of currency that makes the $750 billion Troubled Asset Relief Program passed by U.S. Congress look like a drop in the bucket. While The Federal Reserve has taken steps to be more transparent—their release has only proven that they will service this broken system until it no longer exists.
It’s a sad state of affairs when the citizenry of a nation carry more concern over government finances than the government itself—but it makes sense—those same citizens will soon have to foot the bill. But the Federal Reserve and its minions still act as if nothing happened. They act as if our monetary system is safe and secure, financial disaster has been averted, and there is nothing to worry about. Smart citizens, it seems, are the only ones who realize that emperor really has no clothes.
http://wealthcycles.com/blog/2010/12/02/the-emporer-has-no-clothes
