So where is all this money coming from that the Fed is spending and therefore adding onto the already frightening national debt?
We are of course borrowing it from the central banks of Japan and China, and from other investors the world over. And, as investors around the world become ever more reluctant to buy our treasury notes -- at the interest rates being offered -- our own Federal Reserve is loaning money to the Treasury Dept by buying those notes (i.e. treasury certificates and bonds). In other words the US government is loaning money to the US government! This boggles the mind of any sane person because what this amounts to is that the US has started to simply create a kind of 'magic' money out of thin air -- which means that the value of the dollar must continue to fall internationally as investors around the world become ever more reluctant to buy US Treasury certificates and bonds -- which means that interest rates will have to rise in order to get people to buy them -- which means that interest rates, generally, will rise (on mortgages, auto loans, business loans etc., which in turn means that businesses will be ever more reluctant (at those high interest rates) to borrow money for new equipment, employees and expansion, which then means ever higher unemployment rates and ever lower wages.
"In 2008 and 2009, 50 separate Federal programs offered $23 trillion in loans, grants, or asset guarantees to the financial sector." This statement was buried in paragraph 11 of 12 paragraphs in a joint statement that California Senator Barbara Boxer and Virginia Senator Jim Webb issued demanding taxing TARP monies executives used to compensate themselves. That's more than 30 times more than the official $700 billion that Congress authorized to bail out the big banks and failed Wall Street financial houses. The $700 billion figure tossed out quickly became etched in financial stone. President Bush, President Obama, Congress, Wall Street and the banking industry, and every financial pundit, duly cited the $700 billion payout as the maximum that taxpayers would be stuck with. Now, almost as an afterthought, Webb and Boxer casually toss out the $23 trillion number. What kind of sleight of hand is going on here?
The agencies that seem to have shoved vastly more money to the banks than widely disclosed, were known as early as April, 2009. In testimony before the House Oversight and Government Reform Committee Tarp's Inspector General listed the agencies and the projected dollar amounts.
Federal Reserve -- 6.8 trillion
Treasury Non-Tarp -- 4.4 trillion
National Credit Union, Veterans Affairs, the Government National Mortgage Assn, the Federal Housing Administration, Federal Housing Finance Agency -- 7.2 trillion
Federal Deposit Insurance Corp (FDIC) -- 2.3 Trillion
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