Spartacus
09-25-08, 04:57 PM
It will be the only way, right? I assume Bernanke et al brainstormed many, many ways to do this rescue in a non-inflationary way privately/secretly.
Despite his "helicopter Ben" appellation, IMHO Bernanke is paying lots of attention to inflation and all the programs from the FED to date have been carefully contrived to be "rescue <b><big>lite</b></big>" - all the rescue, minus the inflation
After all this jockeying by the Bernanke FED to find alleged "inflation-free" ways to save the FED's hedge fund masters,
if the Paulson plan fails, the FED will just have to go the normal route - rule 23 exemptions, buying more treasuries, "short term" loans to troubled hedge funds - the FED will have to buy "normal" treasuries, not specialized treasuries that don't count towards "the m's" (m1, m2, m3 ...)
aka NY banks
UPDATE: I listened to one of the "Ron Paul educates Bernanke", where RP asks Bernanke where the US FED gets the authority to create infinite money, & Bernanke says congress delegated that power to the FED.
Despite his "helicopter Ben" appellation, IMHO Bernanke is paying lots of attention to inflation and all the programs from the FED to date have been carefully contrived to be "rescue <b><big>lite</b></big>" - all the rescue, minus the inflation
After all this jockeying by the Bernanke FED to find alleged "inflation-free" ways to save the FED's hedge fund masters,
if the Paulson plan fails, the FED will just have to go the normal route - rule 23 exemptions, buying more treasuries, "short term" loans to troubled hedge funds - the FED will have to buy "normal" treasuries, not specialized treasuries that don't count towards "the m's" (m1, m2, m3 ...)
aka NY banks
UPDATE: I listened to one of the "Ron Paul educates Bernanke", where RP asks Bernanke where the US FED gets the authority to create infinite money, & Bernanke says congress delegated that power to the FED.