The U.S. Federal Reserve Board is not really giving free money to Europe but making more dollars available to lend at a lower interest so the other central banks borrow from the Feds and then in turn they can lend to their banks at a lower interest so the banks can also lend at a lower interest so the borrowers pay less interest and that is supposed to benefit businesses and consumers.
By the way, The Federal Reserve does not borrow money. The step taken today do not increase the deficit. The only one allowed to issue federal bonds – that is borrowing – is the U.S. Treasury Department. The Feds on the other hand, are independent from the federal government and they print money so when they do the money supply increases.
That could lead to inflation if the economy takes off but I think you’ll all agree with me that there no danger of a takeoff for now – we are kind of stagnant. And the current crisis overrides any fear of inflation.
What the central banks are trying to prevent is a panic if the euro fails because then everybody puts their money under the mattress and in that case we have a Depression – with a D.
Thus I do support the move although, believe me, I am part of the 99% and closer to 99 than to the single digits.
The systematic approach to dismantle the static sites of protest has been successful so far and the Occupy movement must shift tactics; short of making a stand Tahir Square style, it must become more mobile and prioritize its causes.
In my opinion, the main protests should be in Washington, right in front of the U.S. Supreme Court, which bears the ultimate responsibility for the flood of money corrupting our political process.
One has to identify the core of the problem and focus on it. Treating symptoms produces relief but does not lead to a cure.
The infrastructure of New Jersey is falling apart and needs billions in investment, just to keep up with the ever increasing vehicular traffic. At the same time, we are relying on the automobile as much as ever. The combination of these two factors do not augur well for the future.
Either we invest a lot of money in roads and bridges or we undertake a mass exodus to a mass transit system that, for the most part, does not exist. Corporations do not settle in a state with a crumbling infrastructure.
I believe that the future resides in both. We must invest and and we also must develop more rail, light rail, and tramways. Let’s not forget that the price of fuel will continue to increase, even though the current recession has dampened that climb.
Governor Christie took $1.8 billion from the PA of NY and NJ, which at least partially contributed to the toll increases, but still is a drop in a bucket. However, to have money, we must reform the government and that is not something that this governor, or any governor of either party will entertain.
Very timely move as credit is tightening and numerous nations , including the U.S. depend on borrowing. Without readily available credit, any chances of growth are null.
At the core of the issue is that Chinese banks are also hoarding cash under orders of the government to reduce leverage and the money supply. The Chinese are worried about inflation.
In Europe, numerous banks are over-exposed with large holdings of sovereign debt. Just yesterday numerous banks were downgraded, including all the major American banking institutions.
Then investors do not trust sovereign bonds any longer, not after they lost 50% of their loans to Greece. The German 10 years notes offered last week received cool reception even though Germany is viewed as the most stable economy in the E.U.
The possible way out I see at this point is to further the union of Europe, democratizing the E.U – so that member of the European parliament are elected by the people – and establishing a supranational control system for national budgeting and eurobonds. The question is whether European political leaders can move fast enough or achieve those goals at all.
The Senate has rejected the Udall amendment which would have stripped the defense bill of the sections dealing with the capture and handling of suspected terrorists.
Handling of those persons arrested will be up to the Defense Department rather than the Justice Department, according to the new rules.
The decision on who is a terrorist would be left to the President of the United States; the current and future ones.
This is a sad day, when the senate chooses to institutionalize tyranny. Not since we interned Japanese American during WWII there has been such an assault on our civil liberties. An unlike WWII, this is an endless war according to neo-cons and other hawks.
This legislation will be used to repress dissent at home.
Those marked could be held indefinitely without charges or trial.
The Senate may finish the bill by the end of the week.