When the mainstream media told the American people that the Federal Reserve was going to "help" the housing industry by buying up hundreds of billions of dollars worth of toxic mortgage backed securities, very few people probably even stopped to wonder where all of that money was going to come from. Well, the truth is that it did not come from anywhere. It was made up out of thin air. In fact, a total of 1.3 trillion dollars was just "printed into existence" so that the Fed could soak up these problematic securities (and help their buddies down on Wall Street in the process who were desperate to dump them). During a recent Joint Economic Committee hearing on Capital Hill, U.S. Representative Ron Paul directly confronted Federal Reserve Chairman Ben Bernanke about this 1.3 trillion dollars. As Ron Paul described how this 1.3 trillion was just created out of thin air, all Bernanke could do was nod his head. Why? Because it was the truth.
Of course we all know that the Federal Reserve creates money out of thin air all the time, so that is not new, but what is new is the recklessness and openness with which they are going about doing it.
Need to help your buddies down on Wall Street by buying up a tsunami of bad mortgage securities?
Just zap another trillion dollars into existence!
Need to bail out the mortgage giants Fannie Mae and Freddie Mac?
Just get the magic money printing machine ready!
Wouldn't it be nice if the rest of us could create money out of thin air? It would make life so much easier.
BATR 2020 Election News
