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Showing posts from January, 2011

Is the Fed dollar "safe and stable"?

On the website of the Board of Governors of the Federal Reserve System, at the top of the home page, we find the following words:
The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.Flexible? The dollar is a paper fiat currency, backed by nothing.  Its flexibility is virtually infinite. Recently, we've seen how flexible the Fed has been with the American dollar, as Senator Bernie Sanders tells us:
We have learned that the $700 billion Wall Street bailout signed into law by President George W. Bush turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country. Among those are Goldman Sachs, which received nearly $600 billion; Morgan Stanley, which received nearly $2 trillion; Citigroup, which received $1.8 trillion; Bear Stearns, wh…