Courtesy of Pam Martens
By Pam Martens and Russ Martens
Shhh! Don’t tell Congress that the Federal Reserve is back to electronically creating money out of thin air to throw at a liquidity problem (of an, as yet, undetermined origin) on Wall Street. And be sure not to mention that the Fed’s balance sheet has shot up in a period of just 42 days by $253 billion. And, of course, don’t remind Congress that before the last Wall Street crisis was over the Fed had secretly, with no oversight from Congress, piled up a $29 trillion tab to bail out Wall Street — a fact it fought years in court to keep under wraps.
On September 4, 2019, the Fed’s assets on its balance sheet stood at $3.761 trillion. As of October 16, that figure is $4.014 trillion, edging closer to the $4.5 trillion peak it reached in 2015 following the worst Wall Street crash since the Great Depression.
Here’s the simple and accurate way to look at this: the Federal Reserve Bank of New York is the regulator of the Wall Street bank holding companies which have never stopped functioning as casinos since the crash of 2008 because Congress did not have the guts to write legislation that would genuinely reform Wall Street. The Fed was a failed regulator in 2008 and it’s an even bigger failed regulator in 2019. To compensate for its own hubris, the Fed simply pumps out electronically created money to prop up a banking structure that is as doomed today as it was in 2008.
Corporate media is part of this hubris by failing to put on the front pages of newspapers the fact that the Federal Reserve is back to bailing out Wall Street – which is the only way to get the attention of the public and Congress.
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