Letters to the Editor

Federal loans

November 27, 2011

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To the editor:

Last year, Congress ordered the Government Accountability Office to audit the Federal Reserve. The final GAO report released last summer revealed that between December 2007 and June 2010, the Federal Reserve created $16 trillion (not billion, trillion!) in virtual money and secretly lent it to American and European banks to prop up their reserves.

These banks have paid back only a small portion of the zero-interest loans. The Federal Reserve is essentially a private institution controlled by private banks. Six of the nine governors of the Federal Reserve of New York are elected by private banks. Why are private banks allowed to make public policy concerning our economy?

Comments

Ron Holzwarth 3 years, 9 months ago

Clipped from the above article: "the Federal Reserve created $16 trillion (not billion, trillion!) in virtual money and secretly lent it to American and European banks to prop up their reserves."


Clipped from 'The Washington Times', Monday, February 14, 2011, so a bit outdated: http://www.washingtontimes.com/news/2011/feb/14/debt-now-equals-total-us-economy/

"Mr. Obama’s budget projects that 2011 will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by Sept. 30, the end of the fiscal year."

Conclusion:

Pass a Federal Law that ALL of the money must be paid back within ONE year! The Federal Debt problem will then be solved!

Ron Holzwarth 3 years, 9 months ago

I can hear it now:

"But, but, but, we're broke! We don't have all that free money you gave us, because we spent it all!"

headdoctor 3 years, 9 months ago

It never ceases to amaze me how tax payers and politicians voice concern about the 15 trillion debt when our actual debt is currently hovering around 120 trillion. That includes on budget, off budget and inter government loans.

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