It's called Seigniorage. Central Banks and other entities all over the world have done this for 5000 years. It is by no means the exclusive domain of the U.S. Federal Reserve Bank. Given the known rules of the game there are no conspiracies...only incompetence.
you are starting to piss me off your posts make it seem like FED is the best kind of American financial system we can have Bullshite
"best" is always subjective. There is no perfect system. Be thankful we're not at 30% unemployment nationally. This is not rocket science: we had some bubbles and a decade of good years: the markets need to correct for that. Wealth needs to transfer. Take a Xanax and chill out.
The argument is not whether a central bank is necessary. The argument is I'd rather have an incompetent PUBLIC and transparent central bank audited by the GAO than a opaque privately owned incompetent central bank. Where did all those Trillions in TARP funds go? funny how Bernanke himself has no clue.
you meant the Federal Reserve System aka "the fed" ? What does "the fed" have to do with TARP? http://www.treas.gov/press/releases/hp1292.htm With ET's collective IQ dropping every day soon we'll have to learn how to interpret posts made in grunts and groans.... wha....who.....what?!
Huh? This is a release by the Treasury stating that they have made a decision to allocate some TARP funds to TALF, which is a program administered by the Fed. Quite apart from the fact that it answers the very silly (maybe rhetorical?) question you're asking in the first place, doesn't it make it abundantly obvious that the decisions made regarding the TARP allocations are made by the US Treasury Dept, rather than the Fed?
the rules governing the asset backed securities market is made by "the fed". The TRILLIONS the TAX PAYERS will eventually have to pay off ( if not recovered by the treasury) were funneled through the treasury into a private playground of fed banks with zero oversight or transparency over the entire process. Let's call this the Grand theft. For petty theft, the same setup was used to funnel cash into GS ( a fed bank component) coffers by bailing out AIG. In essence GS was not penalized like it should have been in a free market. Free markets exist only to screw those who live outside this little cosy "the fed" sandbox. And why does the congress, ie the representatives of the people who will foot the interest bill, have to force "the fed" to answer simple questions of where the money went? http://rawstory.com/08/news/2009/07/21/kucinich-is-the-fed-paying-banks-not-to-loan-money/ Is English your second language?