Let’s be clear what this is. It’s a bailout of the entire corrupt banking system– up to $17T in essence. US finance capital burned through over 10 years of free money (unlimited 0% Fed loans) and there is NOTHING to show for it. That’s what so many big bank balance sheets reveal when it’s tax season.
Washington, D.C., U.S., June 22, 2022. REUTERS/Elizabeth Frantz
The money all ended-up offshore (much through crypto) and into Swiss bank accounts, or into the Ukraine where it aids neo-Nazis at war, ISIS, etc. All this is to be paid for by increased exploitation of all wage workers & those who pay taxes– unless we organize under an international socialist banner and establish an international socialist banking system run by democratically-elected workers. It’s not a pipe dream, it’s economic & social science in revolutionary action.
Most people still fear socialism, but they can’t rationally say why? Money is so emotional & class is so fundamental. Anyway, the ‘Fed put’ is in effect for crypto (hence the latest bitcoin bounce) and all it’s financial partners. Working people must put an end to the Fed, otherwise we will be paying for crypto for the rest of our lives. The Federal Reserve & the bond market is the real power behind phony Democrat-Republican politics.
Update: Wed 15 Mar 2023 04:49 PM CDT
The US Federal Reserve’s Bank Term Finance Program will make US taxpayer-backed loans available to FDIC-banks. “These assets will be valued at par,” means these devalued treasury bonds all the banks are holding will be re-inflated to face value as collateral, instead of current market price. Convenient, huh? The Fed tells us these are one-year loans, which is a blatant lie, since it’s likely every bankrupt lender that gets a BTFP bailout will default. The “Powell put.”
FYI: As interest rates go up, bond prices go down– they move inversely. That means in 2022 when the Fed started raising interest rates above zero for the first time in ten years, it was predicable that bond yields would slide. Such rampant short-sighted greed & outright criminality (FTX, etc) has run the global banking system into the ground– again. The question of questions is: Are the working people & youth going to pay for ANOTHER bailout to the parasitic ruling elite?
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