FacebookTwitterRedditEmail

The New Federal Reserve as Garbage Can for All Capitalist Debt

Yesterday, the Federal Reserve crossed its latest liquidity free money Rubicon. It announced it will provide unlimited credit–and assume the bad debts, not just of banks, shadow banks, and wealthy investors but for what it called ‘Main St.’

But by ‘Main St.’ it doesn’t mean consumers or households. It means that virtually any capitalist financial enterprise that has bad debt it can now dump it on the Fed. In today’s announcement of its latest ‘lending facility’, as it is called, the Fed declared it would ‘support’ small business loans, student loans, auto securitized loans, and credit card debt. But that does not mean the Fed will ‘support’ consumers and assume their loans. Oh no! It means it will support the financial lenders making such loans for students, auto purchases, credit cards and small businesses.

It means these lenders can now dump their bad, defaulted, or otherwise non-performing debt from credit cards, auto loans, student or small business loans on the Fed. The Fed will eat it for them, and add it to the Fed’s own $4 trillion plus indebted balance sheet–soon to rise to $8 trillion or more.

I propose therefore we erect a new Statue of Money Capital on the steps in front of the Federal Reserve building in Washington D.C. A companion to the Statue of Liberty in the New York harbor. And on it we should inscribe the following motto:

“Give me your busted financial speculators, your bankrupt businesses, your huddled hedge funds yearning for guaranteed high yield. The wretched of your banking system. Send me your former millionaires with now empty accounts and I will make them whole again. I lift my greenback lamp beside my free money door. Come in and get what you want!”

More articles by:

Jack Rasmus is author of the recently published book, ‘Central Bankers at the End of Their Ropes: Monetary Policy and the Coming Depression’, Clarity Press, August 2017. He blogs at jackrasmus.com and his twitter handle is @drjackrasmus. His website is http://kyklosproductions.com.

bernie-the-sandernistas-cover-344x550
Weekend Edition
March 27, 2020
Friday - Sunday
Rob Urie
Bailouts for the Rich, the Virus for the Rest of Us
Louis Proyect
Life and Death in the Epicenter
Paul Street
“I Will Not Kill My Mother for Your Stock Portfolio”
Jeffrey St. Clair
Roaming Charges: The Scum Also Rises
Pam Martens - Russ Martens
Stimulus Bill Allows Federal Reserve to Conduct Meetings in Secret; Gives Fed $454 Billion Slush Fund for Wall Street Bailouts
Jefferson Morley
Could the Death of the National Security State be a Silver Lining of COVID-19?
Ruth Hopkins
A Message For America from Brazil’s First Indigenous Congresswoman
Kathleen Wallace
The End of the Parasite Paradigm
Anthony DiMaggio
Misinformation and the Coronavirus: On the Dangers of Depoliticization and Social Media
Andrew Levine
Neither Biden Nor Trump: Imagine Cuomo
David Rosen
God’s Vengeance: the Christian Right and the Coronavirus
David Schultz
The Covid-19 Bailout: Another Failed Opportunity at Structural Change
Evaggelos Vallianatos
In the Grip of Disease
Edward Leer
Somebody Else’s World: An Interview with Kelly Reichardt
Robert Fisk
What Trump is Doing in the Middle East While You are Distracted by COVID-19
Daniel Warner
COVID-19: Health or Wealth?
Thomas Klikauer – Norman Simms
Corona in Germany: Hording and Authoritarianism
Ramzy Baroud
BJP and Israel: Hindu Nationalism is Ravaging India’s Democracy
Richard Moser
Russia-gate: the Dead But Undead
Ron Jacobs
Politics, Pandemics and Trumpism
Chris Gilbert
Letter From Catalonia: Alarming Measures
Richard Eskow
Seven Rules for the Boeing Bailout
Jonathan Carp
Coronavirus and the Collapse of Our Imaginations
Andrew Bacevich
The Coronavirus and the Real Threats to American Safety and Freedom
Peter Cohen
COVID-19, the Exponential Function and Human the Survival
César Chelala - Alberto Luis Zuppi
The Pope is Wrong on Argentina
James Preston Allen
Alexander Cockburn Meets Charles Bukowski at a Sushi Bar in San Pedro
Jérôme Duval
The Only Oxygen Cylinder Factory in Europe is Shut down and Macron Refuses to Nationalize It
Neve Gordon
Gaza Has Been Under Siege for Years. Covid-19 Could Be Catastrophic
Alvaro Huerta
To Survive the Coronavirus, Americans Should Learn From Mexicans
Prabir Purkayastha
Why the Coronavirus Pandemic Poses Fundamental Challenges to All Societies
Raouf Halaby
Fireside Chatterer Andrew Cuomo for President
Thomas Drake
The Sobering Realities of the American Dystopia
Negin Owliaei
Wash Your Hands…If You Have Water
Felice Pace
A New Threat to California’s Rivers:  Will the Rush to Develop Our Newest Water Source Destroy More Streams?
Ray Brescia
What 9/11 Can Teach Us About Responding to COVID-19
ADRIAN KUZMINSKI
The Covid-19 Opportunity
John Kendall Hawkins
An Age of Intoxication: Pick Your Poison
Kollibri terre Sonnenblume
The Propaganda Virus: Is Anyone Immune?
Nicky Reid
Fear and Loathing in Coronaville Volume 1: Dispatches From a Terrified Heartland
Nolan Higdon – Mickey Huff
Don’t Just Blame Trump for the COVID-19 Crisis: the U.S. Has Been Becoming a Failed State for Some Time
Susan Block
Coronavirus Spring
David Yearsley
Lutz Alone
CounterPunch News Service
Letter from Truthdig’s Editor-in-Chief Robert Scheer to the Publisher Zuade Kaufman
CounterPunch News Service
Statement From Striking Truthdig Workers
FacebookTwitterRedditEmail