fed

Who will bail out the FED?

SYNOPSIS: The Fed is asking Congress to allow the Fed itself to determine how much Congress (meaning you) will end up borrowing from the Fed - leaving you on the hook for repaying massive amounts of new debt via new taxes!
Whoever believes that the most recent Fed/JP Morgan heist to acquire Bear Stearns, along with other simultaneous and preceding Fed actions, were ”successful” had better check again.

The current crisis is so severe, and it has already forced the Fed to reach into its own balance sheet grab-bag so deeply, that a very legitimate question arises, and the question is this: when the Fed ploughs all the way through its own balance sheet and gets to the bottom of the barrel, who will bail it out?

Before boring you to tears with the gory details, I can give you the answer right now:

You will.
And so will I, and every other American. Isn’t that nice of us?

And how will we do that?

Not by choice, mind you. Oh no! No one would be this altruistic. Americans may hold some vague notions of emotional attachment to the Fed. They might even see some actual benefit to their economy, which they have long since turned over to be ruled by sort of a softer, more socially acceptable form of tyranny, but foreigners? Fat chance.

So, how will you bail out the Fed, then?

(I wish I had published this article earlier, because I have been playing around with a draft for over a week now. Had I done so, could have bragged about my “prescience.” However, when it comes to the Fed and other corrupt power centers in today’s world (or that of ant day and age), all you have to do is assume the worst case scenario, and you’ll be pretty much on target.)

read more : http://www.gold-eagle.com/editorials_08/wallenwein040908.html