How the US Federal Reserve is printing money~ Mr Moto

Treasury says "the program will consist of a series of Treasury bills, apart from Treasury's current borrowing program, which will provide cash for use in the Federal Reserve initiatives."

Of course, these are not "Federal Reserve initiatives" at all, but a consorted effort. And, as I have stated previously, the above is a blatant violation of the Federal Reserve Act.

We have all read or heard analysts and pundits use the term printing money, when what they really intend is a criticism of loose monetary policy.

The two are not interchangeable: loose monetary policy is not "printing money."

The Federal Reserve is permitted to buy and sell securities only in the open market. The Fed's purchase of securities directly from Treasury, as described above, is the statutory defintion of the illegal act of printing money.

So, we might assume that even the framers of the 1913 Federal Reserve Act were conscious of the probabilities and consequences of a U.S. political administration creating money for itself, by selling debt paper directly to the Federal Reserve.

We might assume, too, that Paul Warburg, et al, obviously preferred that the markets rule, which is obviously no longer the case.

We can also infer that, by making "printing money" a violation of the Act, Warburg and others at Jekyll Island would be in essential agreement with those capitalists among us who say "Let them go under!"

Would Warburg agree with the deregulation and regulatory failures that are much to blame for putting us in the current circumstances? I do not believe so.

James Warburg (son of Paul Warburg) was a staunch supporter of Glass-Steagall, describing a U.S. financial system without such regulatory legislation as a "gambling hell."

Have private and public authorities learned that they should not permit changes to a system that works, and that they themselves should not abuse it? No.

It appears to me that current and planned actions and policies aim in large part to restart the same abusive conduct.

We can have rule of law or rule by decree. The former means the perpetrators must be prosecuted. The latter ensures they will not.

Lastly, I see the Federal Reserve has used the vast majority of the printed money and classified it among loan assets on its balance sheet, but does not mark to market. We should expect that U.S. corporations will be similarly opaque in their accounting.