By Clint Siegner
The Federal Reserve has printed trillions of dollars without generating runaway price inflation through the use of a neat trick.
The privately owned bank cartel shovels the bulk of the money to Wall Street banks and not to the public at large. Instead of millions of Americans rushing out to bid up prices on consumer goods, a relative handful of bankers is using the free money to bid up asset prices and then pay themselves huge performance bonuses.
It’s quite the racket. Fed officials have been able to point at stock prices as “proof” of how they successfully engineered an economic recovery.
Wall Street is the true beneficiary of all the largesse and Main Street doesn’t ask too many questions as long as the stock market is roaring higher.
Things have to be good, right?
Except now Americans noticing that Fed policy is horribly unfair. The distribution of recent stimulus funds from the Fed and Congress is so lopsided it’s outrageous. Politicians printed and borrowed roughly $6 trillion – the equivalent of $30,000 for every adult in the US.
How much of that cash did people actually see? About $1,200 if they were eligible for assistance.
And since Congress borrowed 100% of those funds, Americans are expected to pay it back. They’ll have to add it to their tab.
The pro-rata portion of the U.S. debt for each adult is already more than $110,000.
The trillions the Fed created were injected to buy Treasuries, lend into the repo markets and to make bond purchases. In theory, these funds will have to be paid back too. Since the Fed is never audited and doesn’t have to provide detail on Fed loans, we have to take their word for it.
See: 177 Different Ways to Generate Extra Income
We aren’t the only ones covering the ridiculous gap between what the Fed and Congress will spend to support bankers versus the rest of us. Wall Street on Parade has been watching the malfeasance for years.
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The British government wants to start spending the money earned in taxes from frozen assets of late Libyan leader Muammar Gaddafi. Professor Richard Wolff insists it’s the Libyan people who should get their money back.
British lawmakers proposed handing over £17 million earned in taxes from the frozen assets to the victims of the Irish Republican Army (IRA) attacks. This follows a parliamentary report disclosure last month that the UK Treasury took millions of pounds in tax over the past three years from £12 billion of Libyan assets linked to Gaddafi.
While lawmakers are trying to clarify if it’s legal to receive money in taxes from the frozen funds of another state, Professor Richard Wolff says the money belongs to the Libyan people and must be returned.
“They deserve every bit of the wealth they created and they ought to have that wealth available to them as soon as it possibly can be turned over… because that’s how we run this world. We don’t give over to other countries the wealth produced in our country,” the economist and co-founder of ‘Democracy at Work’ told RT.
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Billions missing from frozen Gaddafi accounts in Belgium – reports
According to him, the “British should be the most sensitive to all of this because they had the British Empire which for a century or more and in some cases for several centuries ripped off the wealth of vast parts of the world – India, Africa, and so on.”
Wolff said “they [the UK] should not be doing this again, especially since they have been involved in some of the political maneuvers that overthrew Gaddafi in Libya, and that threatened the government in Venezuela.”
He says there is no way to justify Britain or the United States making decisions for other nations like Libya and Venezuela.
“Money should not have been taken. We don’t learn the lesson when one government goes and takes the wealth of people in another society. Give the money to the people while it’s clearly their money,” he said.
Wolff also warned Britain that “if you get in the habit,
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