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Just Use ‘the Computer’ at the Fed to Give People More Money
Key Excerpts from Article on Website of New York Times
Posted: April 20th, 2020
https://www.nytimes.com/2020/03/21/opinion/-coronavirus-stim...
When this public health crisis first morphed into a financial one as well, the Federal Reserve sprang into action, pouring trillions of dollars into the financial system in less than a week; providing short-term loans to banks; slashing a key interest rate virtually to zero; announcing that the Fed would begin buying $700 billion worth of U.S. government bonds and mortgage-backed securities. The Fed gave itself the authority to purchase up to $1 trillion in commercial paper to support the flow of credit. An eight-second video from 2009 [shows] Ben Bernanke, the Fed chair at the time, explaining how the central bank comes up with the money to pull off these trillion-dollar maneuvers. “It’s not tax money,” Mr. Bernanke explained on “60 Minutes.” “We simply use the computer to mark up the size of the account.” Heads exploded. Many people replying to the tweet complained that we’re ... coming to the rescue of Wall Street instead of Main Street. “If the Fed can do this for the banks,” they wondered, “why can’t we find the money to pay for programs that would improve life for everyday Americans?” When called upon, the same computer that works for large banks is there for Main Street as well. But the Federal Reserve needs specific instructions before typing up dollars for the rest of us. Those instructions come in the form of legislation: When a bill becomes a law, the government is, in essence, telling the Fed how many dollars it is ordering up.
Note: For more along these lines, see concise summaries of deeply revealing news articles on banking corruption and the coronavirus pandemic from reliable major media sources.
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