TV News LIES

Sunday, Jul 13th

Last update07:26:19 AM GMT

You are here News Economy THE FED HAS SPOKEN: NO BAILOUT FOR MAIN STREET

THE FED HAS SPOKEN: NO BAILOUT FOR MAIN STREET

E-mail Print PDF

The Federal Reserve was set up by bankers for bankers, and it has served them well. Out of the blue, it came up with $12.3 trillion in nearly interest-free credit to bail the banks out of a credit crunch they created. That same credit crisis has plunged state and local governments into insolvency, but the Fed has now delivered its ultimatum: there will be no “quantitative easing” for municipal governments.

On January 7, according to the Wall Street Journal, Federal Reserve Chairman Ben Bernanke announced that the Fed had ruled out a central bank bailout of state and local governments. "We have no expectation or intention to get involved in state and local finance," he said in testimony before the Senate Budget Committee. The states "should not expect loans from the Fed."

So why isn’t the Fed open to advancing this cheap credit to the states? According to Mr. Bernanke, its hands are tied. He says the Fed is limited by statute to buying municipal government debt with maturities of six months or less that is directly backed by tax or other assured revenue, a form of debt that makes up less than 2% of the overall muni market. Congress imposed that restriction, and only Congress can change it.

More...


Most Recent Related Stories...


Trump announces 30% tariffs on Mexico, European Union

Pres. of MexicoPresident Donald Trump will slap a 30% tariff on all imports from Mexico and the European...

US dollar has worst first half in more than 50 years amid Trump tariffs

Dollar fallsThe US dollar has had its worst first half-year in more than 50 years, as the...

Trump hits Canada with 35 percent tariff

Canada hit with 35% teriffTrump posted a letter sent to Canadian Prime Minister Mark Carney in which he outlined the...

Fed would have cut US interest rates by now if it weren’t for Trump’s tariffs, says Jerome Powell

Jerome Powell Federal Reserve chair Jerome Powell said earlier this morning that the central bank would likely have...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!