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Bank Borrowing From Fed Already Exceeded Bailout Total
in Last Week
$700 billion figure means nothing
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U.S. banks borrowed $188 billion per day on average in the latest
week from the Federal Reserve, meaning that the Fed loaned out
more money than the Treasury's proposed bailout in just one week,
still barely managing to keep the economy afloat.
Federal Reserve data showed on Thursday the total
amount banks borrowed nearly quadrupled the previous record of
$47.97 billion per day notched just the week before, Reuters
reports.
$188 billion per day on average over the course of five days
means that the total amount borrowed from the Fed in the week
ending the 24th September stood at $940 billion - a figure that
easily eclipses the proposed $700 billion bailout.
As we have already reported, the $700 billion number
was simply pulled
out of thin air by the Treasury.
The Treasury’s fact
sheet about the bailout states, “The Secretary
will have the discretion, in consultation with the Chairman of
the Federal Reserve, to purchase other assets, as deemed necessary
to effectively stabilize financial markets.”
(Article continues below)
This gives the government and the Federal Reserve carte blanche
to do whatever they want to long as it is done in the name of
stabilizing financial markets, they can nationalize any company
or industry and use taxpayer money, above and beyond
the initial $700 billion, for whatever purpose is deemed necessary,
without any oversight. Paulson’s bailout plan is also unreviewable
by any court, it will remain in perpetuity.
Paulson’s draft bailout plans says: “The Secretary’s
authority to purchase mortgage-related assets under this Act shall
be limited to $700,000,000,000 outstanding at any one time.”
As Chris
Martenson writes, “This means that $700 billion
is NOT the cost of this dangerous legislation, it is only the
amount that can be outstanding at any one time. After, say, $100
billion of bad mortgages are disposed of, another $100 billion
can be bought. In short, these four little words assure that there
is NO LIMIT to the potential size of this bailout. This means
that $700 billion is a rolling amount, not a ceiling.”
If the bailout bill passes it is just the beginning of something
much larger. $700 billion is a meaningless
figure that will do nothing
to shore up the economy. It is not a bailout, it
is a giveaway that will allow insiders to purge themselves of
bad bets and leave them free to continue where they left off.
The real reason for the bill is the unprecedented
transfer of power to the Executive Branch and into
the hands of the global corporate elite.
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