Bailing out who??

07/31/2008


BAILING OUT WHO?

The congress has passed, and the president signed in to law, an act to help out the troubled housing sector, it has some good news for some homeowners who may qualify to stay in there homes, and to help out the Fannie- Mae and The Freddie-Mac and some other banks. One may do well to remember also that the Federal Reserve bank is also a privately owned institution that issues money and gives out loans to banks and other lenders, so it may also be assumed that if some banks and mortgage institutions fail then the Federal Reserve Bank could lose some of that imaginary money that they had printed out on behalf of its owners.

You can think of a dollar in whatever terms you like, and assign it what ever value, but there are two kinds of dollars, ones that the Federal Reserve “creates” and then prints them out or adds the zeros to a particular bank account, it is the money in circulation, the other dollars are the ones that the US Treasury obligates its self to, this the debt of the United States, that the government promise to take from her citizens and pay back to the Federal Reserve. Since the US Treasury it self does not have any money and can not issue any money it hawks the future of the United States and her citizens to the Federal Reserve. So as if the Federal Reserve were to demand a payment from the United States the government will have to sell first the government property then the property of its citizens and then may be her citizens them selves.

So each time a bank or a mortgage company is about to fail and the Federal Reserve Bank is about to “lose” some of its imaginary money, the treasury of the United States is stepping in to take over the loss (buying up worthless paper from the Fed), adding to the national debt and promise the Federal Reserve a cut of its future income ( tax revenue) in the form of an interest payment. The fraud will continue until the American public will wake up and understand they are being sold out.