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"The Federal Reserve plans to offer an $85 billion bridge loan to the American International Group in return for control of the ailing insurance giant..." Nice
by aston 18y ago
"The Federal Reserve plans to offer an $85 billion bridge loan to the American International Group in return for control of the ailing insurance giant..."
Nice redefinition of AIG.
- mtw 18y ago$85billion!!! where do the Reserve get the money? do they print it? gold reserves? next year's taxes? asia?
- nazgulnarsil 18y agoall of the above.
- quasimojo 18y agowhere does the treasury and fed get the money? THEY PRINT IT a 1982 law lets treasury notes be redeemed with CREATED accounts, as in one of the partner banks of the reserve simply creates a new account by punching in the digits, and they assign it to you once again, this is law since 1982 this is why US treasuries have 100% certainty inside the USA while the US dollar still exists
- azharcs 18y agoWouldn't that increase inflation.
- albertcardona 18y agoInflation is yet another form of taxation. A subtle, criminal one, that undermines your savings while you sleep.
- corentin 18y agoPrinting money is by definition inflation (so, yes).
- steveplace 18y agoThat's why they fudge a little bit when they report CPI and PPI data.
- nradov 18y agoYes it will increase inflation, but not enough to overcome the deflation currently under way due to credit destruction. Real inflation is a monetary phenomenon driven by the availability (or lack thereof) of cash and credit. Most lenders have been withdrawing credit at rapid pace.
- huherto 18y agoDo you know for a fact that they will print it? I would imagine they would have other alternatives.
- gills 18y agothey get it FROM YOU.
- bart111 18y agotrue. Through printing press though. This is additional 85bln usd in circulation. We will all pay at the gas pump and groceries. Socialism for the rich. Communistic China would not do that. It is sad to see the USA becoming parody of this what it used to represent.
- deleted 18y ago[deleted]
- netcan 18y agoWhy is this for the rich? I've seen that remark thrown around several times & I don't understand it. From what I understand, this sort of a move is basically done by inflating the dollar causing anyone who has savings to lose out (the people without savings only lose if their wages don't catch up).
- nuclear_eclipse 18y agoBecause only the rich, the people who own/control these mega-corps, are the only ones receiving gigantic funding "bailouts" from the government, meaning they don't face the fallout of their stupid mistakes. It's basically a free ticket to steal money from the American public, but only if you can afford to set up a mega-corp and let it fail while you "earn" multi-million dollar salaries every year regardless of performance...
- netcan 18y agoAre the people who own mega-corps richer then those that own regular corps? Generally speaking, stock is not owned exclusively by the super rich. The lower end of the spectrum (those that also have no savings) do not own stock. Anyway, haven't they lost most of their money already? On top of that this isn't for the shareholders. It's to keep a financial system from collapsing. You can argue that it wouldn't have collapsed. That this makes it more likely to collapse etc. Sure.
- pageman 18y agoit's "fiat money" - more on this by Gary North - http://www.lewrockwell.com/north/north652.html http://www.lewrockwell.com/north/north652.html