Even the fed is out of cash!

[teacherone]

http://www.msnbc.msn.com/id/26763689/

Credit crisis is starting to tax even the Federal Reserve’s deep pockets

WASHINGTON - Where does Uncle Sam come up with huge sums of money during a financial emergency? Like the rest of us, the government taps its reserves and borrows if it needs more.

The federal government has pledged eye-popping amounts — more than $600 billion in the past year — to bail out, or help bail out, some of the biggest names in American finance. The latest was American International Group Inc.

Now the credit crisis is starting to tax even the Federal Reserve's deep resources.

On Wednesday, the central bank took the unprecedented step of asking the Treasury Department to sell debt on behalf of the Fed. The first of those auctions raised $40 billion, and two more to raise an additional $60 billion are scheduled for Thursday.

 

[Truth Warrior]

Did the Fed run out of "thin air"?

 

[Lafayette]

Did the Fed run out of "thin air"?

you know its bad when the FED is running out of air.

 

[acptulsa]

I would say thank heavens they're not printing like crazy and devaluing the dollar even more, but of course this just means the national debt is skyrocketing. When the Fed needs the Treasury's help borrowing...

The hampster looks like it's getting tired of turning that wheel and the rubber band is so ready to snap.

 

[Truth Warrior]

E-cash!

 

[Thrashertm]

Fire up the printing presses!

*Thwap* *thwap* *thwap* *thwap* *thwap* *thwap* *thwap* *thwap* *thwap* *thwap* *thwap* *thwap* *thwap* <- Helicopter Ben coming in for a landing.

 

[Truth Warrior]

It got so bad in Germany in the 1920s that they began to only print marks on one side, in order to save time, pumping out the cash.

 

[Bruno]

On the Morning Joe, they are talking about how the Fed should cut rates to spur on further lending. Geez.

"You didn't notice, Joe, that oil went up $10 in two days. The normal person wasn't even watching that (OR THE HIGHEST 1-DAY GOLD INCREASE IN HISTORY) because we haven't even been covering it."

Where's a face palm pic when you need it?

 

[Johnnybags]

Issuing special treasuries

and raw printing of money now for the bailouts. Even Lehman was back door bailed out with 85 billion in "clearing trades" funds. Everyone and their brother will go to the FED now on purpose because cost of funds publicly is nearer 10 percent or closer to the real inflation rate. No more subsidized money from the private sector so its Uncle Ben or bankruptcy for virtually all companies that need debt financing. GE is broke as well and will be hat in and soon enough. When they are forced to issue long term bonds the rates will soar. Thats why they are merging with banks, to get access to depositors capital which they will piss through fast causing the complete nationalization of the banking industry with pseudo megabanks pretending to be public.

 

[Truth Warrior]

The End of the Gold Standard:

"The theory on which the Federal Reserve Board is supposed to govern its discount policy, by reference to the influx and efflux of gold and the proportion of gold to liabilities, is as dead as mutton. It perished, and perished justly, as soon as the Federal Reserve Board began to ignore its ratio and to accept gold without allowing it to exert its full influence, merely because an expansion of credit and prices seemed at that moment undesirable. From that day gold was demonetized by almost the last country which still continued to do it lip-service, and a dollar standard was set up on the pedestal of the golden calf. For the past two years the United States has pretended to maintain a gold standard. In fact it has established a dollar standard; and, instead of ensuring that the value of the dolalr shall conform to that of gold, it makes provision, at great expense, that the value of gold shall conform to that of the dollar. This is the way by which a rich country is able to combine new wisdom with old prejudice. It can enjoy the latest scientific improvements, devised in the economic laboratory of Harvard, while leaving Congress to believe that no rash departure will be permitted from the hard money consecrated by the wisdom and experience of Dungi, Darius, Constantine, Lord Liverpool, and Senator Aldrich…" -- John Maynard Keynes

 

[Truth Warrior]

The best way to destroy the capitalist system is to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
John Maynard Keynes

 

[Pete]

This video demonstrates how te Fed will actually run out of cash:

http://www.youtube.com/watch?v=as3AYVzWmOI

This announcement today portends tight money coming up next on our economic buffet.

 

[123tim]

Did the Fed run out of "thin air"?

Yes! Studies indicate a rapid decline in this commodity. The Federal Reserve Planning Commission has posted this urgent question concerning air availability on WikiAnswers. The question is directed toward the Meteorology professions and is very urgent:

http://wiki.answers.com/Q/Is_it_possible_that_the_air_on_earth_will_run_out


The printing of extra funds will slowly be ramped down until a definitive answer is received concerning this issue.




OK. This really isn't true. I just Googled "Will the air on Earth run out?" and this is the best that I found.

 

[FindLiberty]

Yea, they're outta air! Makes sense to me %-)

. . . $->

. . . . . . . . :-[

. . . . . . . . . . . . . . . R.I.P. (...after war)

 

[Truth Warrior]

"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." -- John Maynard Keynes

 

[Chester Copperpot]

http://www.msnbc.msn.com/id/26763689/

Credit crisis is starting to tax even the Federal Reserve’s deep pockets

WASHINGTON - Where does Uncle Sam come up with huge sums of money during a financial emergency? Like the rest of us, the government taps its reserves and borrows if it needs more.

The federal government has pledged eye-popping amounts — more than $600 billion in the past year — to bail out, or help bail out, some of the biggest names in American finance. The latest was American International Group Inc.

Now the credit crisis is starting to tax even the Federal Reserve's deep resources.

On Wednesday, the central bank took the unprecedented step of asking the Treasury Department to sell debt on behalf of the Fed. The first of those auctions raised $40 billion, and two more to raise an additional $60 billion are scheduled for Thursday.

Hey Paulson, mother fucker.. Why dont you just issue some US NOTES instead???

enough with the debt.

 

[Chester Copperpot]

"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." -- John Maynard Keynes

Thanks to the internet I suspect that 1 out of a million ratio is coming down quite drastically.

 

[MsDoodahs]

"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." -- John Maynard Keynes

<shudder>

 

[Truth Warrior]

Thanks to the internet I suspect that 1 out of a million ratio is coming down quite drastically.

Well Ron got 1.2 million votes. I'd say the ratio is not coming down quite drastically or soon enough.

 

[angelatc]

On Wednesday, the central bank took the unprecedented step of asking the Treasury Department to sell debt on behalf of the Fed. The first of those auctions raised $40 billion, and two more to raise an additional $60 billion are scheduled for Thursday.

These people are bleeding every freaking dime they can out of the system! Who in the hell can justify adding a layer to a house of cards even as it is collapsing?