The Giant Money Spigot

While the main stream media is so concerned with Trump and the pending impeachment process the Fed meanwhile continues to funnel money to Wall Street to the tune of $ 690 Billion a week. Either the media is in collusion with the Fed to keep this information from reaching the general public or they are too preoccupied with Trump, international affairs and then again they could very well be just too blind to see what is actually happening to the economy.

The New York Fed is currently loaning $ 120 Billion a day to Wall Street Securities trading firms. Before they were just loaning $ 75 Billion a day. But, as of October 24 of this year they have increased it by $ 45 Billion a day. And, will continue to loan these Securities firms that amount every day unless they are forced to stop or the whole US economy collapses.

It is quite interesting to note that these Wall Street Firms are getting these loans being continually being rolled over. So, effectively they are permanent loans. The irony is that this is exactly what happened during the 2007-2010 Financial Crisis. Some Wall Street firms at that time {let's call them what they actually are Wall Street Casinos} received individually over $ 2 trillion in cumulative loans that were rolled over for two and a half years. Today, as it was done in 2007 these loans are without the authorization or even the awareness of Congress or the American public. One bank, Citicorp received over $ 2.5 Trillion in Fed loans at interest rates below 1%. This at the time when it was insolvent and couldn't have obtained loans in the open market.

This latest news from the Fed follows it's October 11th announcement that it is launching a program to buy up $ 60 billion a month in US Treasury bills for the next year and a half. It all comes down to this: what the New York Fed is doing is unprecedented in US history. Still, there is no mention of this on any front page of any newspaper. No Wall Street crisis has been announced to the public, quite the contrary. There has been not one hearing held before Congress to explain these massive loans and Treasury buybacks. Not one elected official has authorized these loans. Today, as it was doing in 2007 the New York Fed is using highly questionable tactics and could be illegal activity when not one officially elected official has even been contacted or authorized these actions by the Fed.

Another major point of concern is the fact that these loans are not being offered to commercial banks which by the way could re-loan the money to stimulate the US economy. In fact these loans are going to the New York Fed's primary dealers which are stock and bond trading houses on Wall Street who by the way count hedge funds among their largest borrowers. Many of the primary dealers are units of …