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Federal Reserve Plans to Buy Unsecured Short-Term Debt

Tuesday, October 7th, 2008
Posted in Education by Joel Gross

Henry Paulson and his socialist cronies at the Federal Reserve are continuing their plan to take over the world by now trying to put even more US taxpayer money at risk. The Fed claimed that getting more than $700 billion to bailout banks would save the market and that has now turned out to be a lie and the markets have continued to crash. The Federal Reserve has also AGAIN doubled the size of its Term Auction Facility from $300 billion to $600 billion. The Term Auction Facility basically lends money to banks that otherwise would not be getting credit at low interest rates, essentially giving away taxpayer money. In the new proposed program, the Fed will invade private market territory that the government has never before entered- commercial loans.

How does the Federal Reserve plan to continue to pay for all of these giveaways to fat cats on Wall Street who can’t manage their own companies? The Fed is going to keep printing cash at unprecedented rates.

Gee Mr. Economics Professor, what happens when the government continues to print massive amounts of money? Massive inflation. Our good friend President Robert Mugabe of Zimbabwe did this a couple of years ago and saw inflation first go to 1,000 percent (which crippled the rest of his economy, causing over 60% unemployment). Today Zimbabwe’s inflation rate stands at over 11 million percent. Let me write that out for you- an inflation rate of 11,200,000%. A loaf of bread now costs 1.6 trillion Zimbabwe dollars. Zimbabwe was once considered “the breadbasket of Africa”, but they launched a land reform program that stole land from commercial farmers and gave it to random other people (socialism). Nowadays, Zimbabwe is held in a death grip by a vicious dictator (Robert Mugabe).

But Mr. Economics Professor, that will never happen to the United States right? It’s possible. It is the worst case scenario, but it has happened to other developed, modern countries in the last century including Germany. Most people in America say that this is utterly impossible- but those are the same people who said it was impossible that home prices would ever fall. We may be the strongest country in the world, but that does not make us immune from the basic laws of economics.

The Federal Reserve needs to have Henry Paulson and his power-grabbing buddies thrown out. Henry Paulson’s plans to socialize our countries economic system and pay for it by printing dollars that have no value is going to cause our economic system here in America to totally collapse.