View Full Version : FLASH: Get The Stocks (For The Fed)

12-10-2008, 02:02 AM
FLASH: Get The Stocks (For The Fed) (http://market-ticker.denninger.net/archives/682-FLASH-Get-The-Stocks-For-The-Fed.html)

There is a flash on the WSJ Newswire (http://online.wsj.com/article/SB122888021757894023.html?mod=testMod) that The Fed has "approached Congress" about issuing its own debt.
"Fed officials have approached Congress about the concept, which could include issuing bills or some other form of debt, according to people familiar with the matter.

It isn't known whether these preliminary discussions will result in a formal proposal or Fed action. One hurdle: The Federal Reserve Act doesn't explicitly permit the Fed to issue notes beyond currency."

No kidding. Then again The Federal Reserve Act doesn't permit buying other than agency and treasury debt as it stands, but that hasn't kept Bernanke from doing so more than once through chicanery and his famous "Maiden Lane LLCs", has it?

Congress (and the FBI!) seem rather adverse, shall we say, toward enforcing the law. Why?

And what would this debt be backed by? Nothing?

Then nobody would buy.

Full Faith and Credit (directly or indirectly by obligating the currency of) United States? That's a problem.

The Federal Reserve, a private bank, is asking for permission to issue debt in the name of the taxpayers of this nation, obligating them to pat it down and cover the interest on same, without oversight as to how the proceeds are used and under what limits and terms it is issued?

You're kidding me, right?

If this report is real and Congress does not immediately disavow this attempt - publicly - we no longer have a Constitutional Republic.

That The Federal Reserve would even discuss such a thing with Congress is, in my opinion, grounds for instantaneous revocation of The Federal Reserve Act of 1913 and a return of the control of our monetary system to Congress where it belongs.

It is my considered opinion that any attempted usurpation of the Constitutional power to obligate the citizens of this nation to pay debt via taxation, which under the Constitution of The United States must originate by specific bill in The House of Representatives (all spending bills must originate in The House), is a blatant attempt to overthrow by chicanery The Government of The United States and must be treated as such by The FBI, The Department of Homeland Security and the citizens of this nation.

Let me be clear. This is not "reflating" or "inflating" or "hyperinflating" or anything of the kind, although I'm sure some people will pipe up and make all sorts of noise in that regard.

In my opinion this "discussion" constitutes an attempted coup - period.

Bernanke must resign.


(Yes, I'm well-aware that such a proposal does not meet the definitions that permit indictment under 18 USC 2385, as violence and/or force is not being proposed - unless you consider destruction of the nation's currency and tax base a violent act, of course. In that case Bernanke has a 20 year long date with someone named "Bubba" in his future. It couldn't happen to a nicer guy.)