Note the part that I highlighted in blue.
Ron Paul's comments are more than likely striking a chord in the hearts of those who are as outraged over this as I am.
The irony in all this is that the US is effectively bankrupt having a federal government debt burden over $14 trillion and rising with politicians unable to even cut a measley $60 billion without the fools on the left screaming "extremism" and yet here we are loaning money to other foreign banks.
Let's see if I have this right - the Fed prints the money into existence and then the US government goes a begging into the world by issuing gazillions in Treasuries and then turns around and loans that to other banks.
"Oh don't worry", they tell us, "the loans are being repaid".
That's terrific. When I see the US reducing its own external liabilities then I won't worry. Meanwhile the US plunges deeper and deeper in the debt abyss.
Foreign Banks Tapped Fed's Lifeline Most as Bernanke Kept Borrowers Secret
By - Mar 31, 2011 10:19 PM PT
U.S. Federal Reserve Chairman Ben S. Bernanke’s two-year fight to shield crisis-squeezed banks from the stigma of revealing their public loans protected a lender to local governments in Belgium, a Japanese fishing-cooperative financier and a company part-owned by the Central Bank of Libya.
Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.
The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets.
You can read the entire story here if you want to further ruin your day.
http://www.bloomberg.com/news/2011-04-01/foreign-banks-tapped-fed-s-lifeline-most-as-bernanke-kept-borrowers-secret.html
Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.
The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets.
You can read the entire story here if you want to further ruin your day.
http://www.bloomberg.com/news/2011-04-01/foreign-banks-tapped-fed-s-lifeline-most-as-bernanke-kept-borrowers-secret.html
I still don't see what positive effect cutting spending will have. There is no amount of spending cuts that could come remotely close to even hoping to possibly make a iota of difference to the dire fiscal situation. The monetary system is going to crash, 100% guaranteed, and the "fools on the left" are merely trying to protect the base of the economy (people and the environment, NOT dollars), the little guys as long as they can. As I say, why protect the ponzi scheme at the expense of the weak and vulnerable? Isn't that what the bankers want, to keep the scheme going for as long as possible so they can gobble up even more control of the world's assets? Shouldn't we be doing everything we can right now to bring it down as quickly as possible, and this involves spending the monetary system into oblivion?
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