Villain or Savior?

Bloomberg’s lengthy report this week that the U.S. Federal Reserve secretly gave the big U.S. banks trillions of dollars, not the billions that were reported publicly at the height of the GFC, was shocking.  Even worse, the congressional oversight committees didn’t know about it.  So, this band of unelected know-it-alls and their Wall Street cronies, the very ones who got us into the mess, dramatically increased the exposure of U.S. taxpayers without reference to the elected officials responsible for their supervision.

Today, the news is that the Fed is pumping more money (billions) into Europe.  If that’s the public line, we must now question the magnitude of the real amount(s).  The press isn’t helping; CNNMoney offered this ‘reassurance’,

“It’s important to note — the Fed’s funding does not come from U.S. taxpayers, and is independent from the federal budget.”

So, where does it come from?  Oh wait, I know, they’re just doing a lot of creative accounting, which cannot be the answer to the unprecedented mountains of unpayable debt around the globe.  Something’s got to give, and I’m afraid that it may be ugly in the extreme.

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