Fed Refuses to Name Recipients of $2 Trillion. (updated)

Is this what our government calls: "Accountability?"

Apparently, leading Republicans and Democrats are indicating that's the case.

There it was (and still is as I write this), buried near the bottom of this morning's Bloomberg.com "Breaking News" list of stories: Fed Defies Transparency Aim in Refusal to Disclose.

There's more...

Is Bernanke endorsing Obama?

The Wall Street Journal thinks so. Check it out.

The question is: Is Obama endorsing Bernanke? Last July the candidate said this:

"I think that chairman Bernanke was handed a pretty tough hand and I think some of the decisions he's made have been the right ones."

Of course, things have changed a lot since July.

Under The LobsterScope

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Danger - Ben and Henry at Work

Masters Hossein & Noureddine are at it again in the Asia Times. Good stuff, the hard stuff on what a catastrophically bad idea it is giving Henry a trillion of your dollars to play with. (Admit it's also nice they confirm everything I've been ranting about in my last 15 or so diaries.) The atimes title is priceless: Danger - Ben and Henry at work. Read the whole thing, but here are some important excerpts on Ben and Henry's bailout and what's really going on:

THE ECONOMIC CONSEQUENCES

To a previously projected 2009 record deficit of $500 billion, the bailout's $700 billion price tag combined with $200 billion for Fannie Mae and Freddie Mac and $85 billion for AIG, the fiscal deficit would explode to about $1.5 trillion. [And we] should also ask after this $700 billion is spent, what will Congress say to another request say of $300 billion to save the day?

And so on into the future. . . .

As with past and recurring deficits under the Bush administration, the financing of such a monumental deficit can only be achieved through monetization, inflation and exchange-rate depreciation. This will considerably widen external deficits and aggravate food and energy price inflation. . . .

Economic growth will without a doubt be curtailed by a considerable fall in savings and a significant decrease in real government and private expenditures; real government spending will diminish because most of the expenditures will consist of buying worthless financial papers at the expense of spending on social and economic programs. Rapid food and energy inflation will erode real incomes and reduce private spending in real terms, and contribute to rising unemployment, further aggravating already deteriorating trends in the unemployment rate.

CREDIT & LIQUIDITY ARE FINE

. . . contrary to Paulson's claim, credit is not frozen, the US banking system is still lending significantly to the economy, as clearly demonstrated by the Fed's data, with bank credit still expanding at a high rate of 9% per year as of July 2008. Certainly, banks have become more prudent, matching the maturities of their assets and liabilities better, and are no longer replaying the speculative mania that led to the present subprime loan meltdown. . . .

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IMF to investigate Bernanke, Fed, Chimpy

In my efforts to shed light on how differently developments within the U.S. economy are being covered outside of the United States (MSM), versus what we're hearing inside the country, I provided a diary earlier discussing, among other things, The Bank for International  Settlements' ("BIS") just-published (in the past 24 hours) 78th Annual Report. It is brutally frank. It is very scary stuff. It is considered to be rather beyond reproach, in terms of its credibility, too. You may read the story about this here:"The central bankers' bank renews fear of second depression..."

But, perhaps even more underreported is what's happening over at the International Monetary Fund over the past few days, as far as their investigation into U.S. economic policies are concerned.

"The world" has just decided that Ben Bernanke, the Fed, and Chimpy's other rob-from-the-poor- and-provide-welfare-to-the-rich henchman must now face a general investigation by the International Monetary Fund. Read about it right here, "The Shrinking Influence of the US Federal Reserve."

There's more...

Diaries

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