Is the Federal Reserve Out of Control?

Tuesday, April 28, 2009 13:46     Author: KButler

Or, an alternated title – hasn’t our government been acting like Enron?

I know Ron Paul, a congressman from Texas, sounds like a lunatic quite often to most, but I believe he and others have said that the Federal Reserve is unconstitutional. Since the constitution says that congress has the purse strings it seems kind of odd that “The Fed” is outside of direct government control. Especially with what it is now doing.

To finance all of the debt spending by the government the Treasury is selling massive amounts of notes – like selling more common stock in America and thereby diluting what we think we already own – to finance the debt. And, it has been reported on the news numerous times that since China appears to be slowing down on buying our debt IOU’s “The Fed” has been buying them. Does that make sense? How can The Fed “print money” to finance our own debt IOU’s? Isn’t that like one division of Enron buying assets of another division so the assets look like they are worth more on their books?  What happens if The Fed stops buying them does the cost of our debt go up now instead of later?

So, aren’t we leveraging the country even more by having The Fed buy our own debt? This sounds also like how the financial system got into this mess – by securitizing debt and selling it to multiple institutions over and over. This appears to be setting the groundwork for severe hyper inflation in coming years.  No wonder China wants to stop using the American dollar as the “world currency”. And, if the borrower is slave to the lender aren’t we becoming slaves to ourselves and our debt?

And, The Fed is also giving money left and right to various institutions outside of the TARP and related programs without any transparency to us the owners of what they are doing – and without any authorization from the United States Congress or the President of the United States.

Maybe the Federal Reserve system is unconstitutional.

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Levitra online Or, an alternated title – hasn’t our government been acting like Enron? I know Ron Paul, a congressman from Texas, sounds like a lunatic quite often to most, but I believe he and others have said that the Federal Reserve is unconstitutional. Since the constitution says that congress has the purse strings it [...]

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Posted in category Politics

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Posted in category Politics

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