Thursday, December 2, 2010, AM | Leave Comment
The U.S. Congress requested the Federal Reserve Bank to quit working in secrecy and explain how much money the Feds had given to private companies such as Morgan Stanley and Merrill Lynch.
The Feds got busy and started to look for secret documents that it had hidden from the public eyes [as if the American public cares] under a pile of approximately $9 trillion.
Low and behold it found the documents that showed how much it had given to the investment firms. If I say approximately $9 trillion, that means rounding it to the nearest whole number.
In elementary school, we used to do rounding. The teacher would tell us to round, lets say, 5.4 and lower to the nearest whole number. Our result most of the time was 5. Sometimes the result would be different, but considering the fact that we were imitating grownups, the teacher would understand and politely correct us. For 5.5 and greater, I remember it was 6.
What if the Federal Reserve did the rounding. $9.4 trillion or less would be $9 trillions and $9.5 trillion or greater would become $10 trillion. But rounding $9.4 trillion chews up $400 billion and that’s no small change by any means. That’s more than many African country’s yearly budget combined. Well, I am just guessing.
So when the Feds said it had given approximately $9 trillion to some investment firms as loan, it may have chewed up many countries’ combined yearly budget. Poor countries! Poor babies! The loan was largely at interest rates below 1 percent. Rich companies! Rich babies!
By the way, in one program alone the Fed doled out the nearly $9 trillion in funds to borrowers. [I don’t know what one program means but it was in the news.] This program involved overnight loans. I know what that means. At least, I know something. Hey! I am the American public. I ain’t as dumb as the Government thinks I am.
The American public may not care how much money the Feds doled out to these firms. But it must care why it was given in the darkness of the night so secretively instead of in the light of the day in front of the American public.
The United States is supposedly a democracy, right? Well, you might not agree but let’s pretend it is. In a democracy, everything should be out in the open. Congress itself sometimes hold meetings behind closed doors. I think I better stop writing.
My question is…
Shouldn’t the nearly $9 trillion have been invested in the national economy to help create jobs, probably millions of jobs?
The money was given out at less than 1 percent in two years, 2007 and 2008. If it did not create jobs and obviously it didn’t, was it a waste? I believe it was. But then again everybody is different.
Waste occurs frequently when there is no accountability. Any nation cannot be a true democracy if there is no accountability.
My son borrowed my credit card and charged $20 on it. I asked him what for? Shouldn’t someone in this nation of ours have asked similar questions? Wait, I am sorry. The Feds had hidden the monthly bill under the pile of nearly $9 trillion. My mistake! Sorry. I am the American public. What do I know? I keep making mistakes. “I don’t know nothing about nothing.”
In a Nutshell
If some people think America is a democracy, then why the big secrecy?
If the people had been told at the time the money was being doled out, the Feds should not have been too worried about the American public.
What could the people have done? Nothing much. Like some other third world nations, they have increasingly adapted, over the years, the characteristics of no hear, no see, no speak. As long as the government is run in secrecy, it can never be a true democracy.Facebook.com/doable.finance