The title of today’s post is a refrain we’ve all heard countless times in one context or another. When that context pits the government or a pseudo-government agency like the Federal Reserve against you, the taxpayer, the ‘somebody” that pays is always you.
If this story run by the Wall Street Examiner doesn’t make you mad as hell, something is seriously wrong with you. I highly recommend you read this article, but for let me summarize it for you.
First, as you know, the federal government pays the Federal Reserve, with your tax dollars, for all those Federal Reserve notes, aka, dollars that they manage for your benefit. At the end of the fiscal year, The Fed returns to the US Treasury all the dollars paid by you in excess of the Fed’s unaudited expenses; i.e., it’s like the government getting a rebate of some of your tax dollars.
Second, as you know, the Federal Reserve is effectively a private entity that is owned by the big Wall Street Banks and other major foreign banks. Since the 2008 financial crisis, the Federal Reserve has been showering the Wall Street Banks with nearly free magically created money visa a vi their Zero Interest Rate Policy (ZIRP). During these six years, these banks have built up trillions of dollars of what is called “excess reserves” with the Fed. The banks have gotten fat by borrowing at ZIRP rates and
gambling it at the rigged Wall Street casino, aka, stock market “investing” it for quick profits. Well, at least, the Fed isn’t paying the banks any interest on their excess reserve.
Third, what you and I didn’t know, until the Wall Street Examiner informed us, is that the Fed is using another program to give the banks free money. This time it is not magic money. It’s your money.
The Fed has expanded its Term Deposit Operations, moving more spaghetti around on the plate, the plate being the liability side of its balance sheet- aka “money.” The Fed announced that it would do 8 weekly operations with its member banks beginning on May 19. The first 4 are at approximately 26 basis points, then the next 4 at 30 basis points. These deposits are like bank CDs with a term of 7 days.
What this means is the banks can take some of their excess reserves, which earn no interest, and put in these Term Deposit accounts where their money earns a “small” interest rate. That “small” interest rate resulted so far in 69 banks receiving $219 billion. That is $219 billion _ so far _ that will not be rebated to the US Treasury.
The bottom line is that the fat cat bankers will get their multi-million dollar bonuses, which they will use to exercise their generous stock options and, thereby, make even more millions. Somebody is going to have to pay for this! That somebody is you. Are you mad yet?
Well, that’s what I’m thinking. What are your thoughts?
3 thoughts on “Somebody Is Going To Have To Pay For This!”
and then then Eric Holder comes around and fines the banks billions of dollars which gets paid back to the government and goes into Holder’s slush fund which funds the likes of Acorn. Round and round we go, where it stops we all know.
Bunkerville, who do you repeat dumb, silly lies like that?
Guys, we have a choice, we could have a national bank, like most civilized countries, or we could have this private proxy bank we have today. The other choice, no central bank at all, is retarded.
But isn’t this Obama money? You mean it is really our money? 🙂