While the United states Armed Forces (private mercenaries) are stationed at 737 bases, in 130 nations around the world, defending “all freedom-loving people everywhere in the world,” the Bernanke Doctrine continues: Benjamin S. “helicopter Ben” Bernanke, Chairman of the Federal Reserve Board of Governors (a Federal agency) that oversees the privately owned Federal Reserve System of (central) Banks, announces the creation of the Money Market Investor Funding Facility, for the purpose of providing 540,000,000,000 “dollars” to the nation’s uninsured money market funds. The unusually large volume of redemption requests during the Great Recession caused money market funds to radically reduce their lending to private banks.
NOTES:
- This is an illegal action as the FRSB are required by their charter (the Federal Reserve Act of 1913) to make only collateralized loans. Mutual funds are not backed by tangible assets, only promissory notes.
- This is the further realization of plank number five of the “Communist Manifesto” by Karl Marx.
[added 6/6/2021] Thanks to Jim Lorenz and Freedom’s Phoenix for this entry.
Subsequent Events:
References:
A Year in Bank Supervision: 2008 and a Few of Its Lessons
www.fdic.gov/regulations/examinations/supervisory/insights/sisum09/bank_supervision.html
FRB: Board approves two interim final rules in connection with its initiative to provide liquidity to markets by extending loans to banking organizations to finance their purchases of high-quality asset-backed commercial paper (ABCP) from money market mutual funds.
www.federalreserve.gov/newsevents/press/monetary/20080919c.htm
Dead Banks Walking – Doug French — Mises Institute
mises.org/daily/3507
Fed Attempting To Prevent “Great Depression II”
huliq.com/1/71229/fed-attempting-prevent-great-depression-ii
Fed Prepared to Prop Up Money-Market Funds – washingtonpost.com
www.washingtonpost.com/wp-dyn/content/article/2008/10/21/AR20081021006/15.html/?hpid=topnews
Subprime crisis impact timeline – Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Subprime_crisis_impact_timeline
A Year in Bank Supervision: 2008 and a Few of Its Lessons
www.fdic.gov/regulations/examinations/supervisory/insights/sisum09/bank_supervision.html