Question on the $630 billion

[olivegreen]

Well here's some probably stupid questions: Yesterday the Feds i gather injected $630 billion into the system to prop things up. My questions are; Where did this money come from? Isn't it suspiciously near the $700 billion they were asking for on the bailout bill that was not passed... Did they spend the money before they had it?

Those are my stupid questions.

OG

[jtabeb]

Re: Question on the $630 billion

Well here's some probably stupid questions: Yesterday the Feds i gather injected $630 billion into the system to prop things up. My questions are; Where did this money come from? Isn't it suspiciously near the $700 billion they were asking for on the bailout bill that was not passed... Did they spend the money before they had it?

Those are my stupid questions.

OG

Read between the lines. The fed and treasury can pretty much do what ever the hell they want at this point, the measure before congress was window dressing for the public to provide for the "appearance" of a "process". There is no process, really just arbitrary decisions on what to do. (You know, make it look like congress matters so that the "folks" don't get too upset)

[Supercilious]

Re: Question on the $630 billion

Well here's some probably stupid questions: Yesterday the Feds i gather injected $630 billion into the system to prop things up.

If you refer to the recent expansion of the swap lines by the Federal Open Markets Committee that is more like an increase in the credit limit on your visa and it is separate from the bailout. The old credit limit was about $290b and it was increased yesterday with another $330 bil.

My questions are; Where did this money come from?

That money was created out of thin air. Or to put it better and in delicate terms, it came out off one of the excretory sphincters of a certain official from the Federal Reserve Bank

Olivegreen, you have to understand that modern banking is based on something that is considered to be illegal for ordinary people like you and me (we would go to jail if we were doing something similar). A good point to start learning about modern banking is a great little documentary/presentation called "Money as Debt":

http://www.itulip.com/forums/showthread.php?t=1139

Watching, "Money as Debt" can bring you a revelation similar to that shocking and disappointing moment when your firm reality was shattered by being told that: "Santa doesn't exist!" . Please don't fell depressed or bad about you after watching "Money as Debt", because a lot of people working in banking and finance don't know about that either.

After you feel comfortable to accept what was presented in "Money as Debt" (please watch it several times if needed) the next step would be to watch the Zeitgeist section that deals with Federal Reserve bank:

Part 1
http://youtube.com/watch?v=_dmPchuXIXQ

Part 2
http://youtube.com/watch?v=lBZne09Gf5A

Part 3
http://youtube.com/watch?v=SjUrib_Gh0Y

Part 4
http://youtube.com/watch?v=_BVNN1wqw3k

Part 5
http://youtube.com/watch?v=VPPFgHF9VR4

Isn't it suspiciously near the $700 billion they were asking for on the bailout bill that was not passed...

The numbers are merely a coincidence, but your general intuition is correct, they are trying to use any loophole and any excuse to flood the markets with treasuries.

I'm looking at it as a Problem-Reaction-Solution scenario they are applying to us. I tried to explain my views here:
http://www.itulip.com/forums/showpos...9&postcount=30

(I have to warn you that not everybody on iTulip agrees with my views, so others may have other answers to your questions)

Did they spend the money before they had it?

After you take time to go through all the links you will be able to answer that question for yourself. If you still can't answer for yourself, go again through "Money as Debt" and the Federal Reserve section of Zeitgeist until you do.

Those are my stupid questions.

These are not stupid questions and a lot of economists and banking "experts" never thought of asking questions like that.

Actually, I believe that getting to the point where you thought necessary to ask that kind of questions means you are doing pretty well.

About the current stage of the Grand Theft Bailauto crisis, I believe we are this stage:

[olivegreen]

Re: Question on the $630 billion

Thank you gentlemen.

$#*, I suspect watching these videos will help me immensely given that reading The Wealth of Nations is making me crazier than normal. Thank you. And I will watch them and learn. Hopefully.

I'm already getting paranoid, might as well give myself some ammunition to justify this paranoia... Or at least to relabel the paranoia to reality-based suppositions...

Thanks

OG

[Spartacus]

Re: Question on the $630 billion

Read between the lines. The fed and treasury can pretty much do what ever the hell they want at this point, the measure before congress was window dressing for the public to provide for the "appearance" of a "process". There is no process, really just arbitrary decisions on what to do. (You know, make it look like congress matters so that the "folks" don't get too upset)

I disagree. IMHO this was part and parcel of Bernanke coming up with new ways of capitalizing the system

...
WHILE TRYING TO AVOID inflation.


I've posted this before - he's trying anything he can think of short of creating new money.

IMHO, that's what this rescue plan intended - a rescue that would not be added to any of the existing monetary bases.


Insiders may have seen what Bernanke's trying to do & used him - delivering a "plan" that seemed to match his goals - to support their plan to award Wall St.