View Full Version : Paulson plan failure EQUALS US FED massive balance sheet expansion?

09-25-08, 06:57 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.