Thursday, November 22, 2012

Smoke and mirrors economy – 47 percent of the members in Congress are millionaires. 67 percent of Senators. Fed and Treasury money close to $7 trillion.

The Federal Reserve is really deep into uncharted territory.  In no other time in history has the Fed been so intricately involved in the overall economy.  The Fed balance sheet has expanded to an incredible level under very little scrutiny by the public or elected officials, many who have a vested interest in keeping the status quo.  The banking system has been bailed out but the working and middle class still struggle

 There is an interesting narrative going on in the press.  Since Wall Street is on the mend and hefty banking bonuses are once again making the rounds, every corner of the country is now somehow celebrating in this same process, at least in theory.  That is simply not the case in actuality.  The system has been decoupled internally.  Profits are made globally with local banking subsidies.  The public is left holding the bag on massive speculation and is shifted out of any prosperity.  It is odd what passes for good news.  The fact that Congress acknowledges that they will deal with the fiscal challenges facing our nation is applauded even though this is their job and most are already millionaires.  The Fed is still deeply intertwined in the current economy.

Fed and Treasury Total Money

There is an interesting chart examining all Fed and Treasury Money out in the economy.  The Fed has introduced a historic amount of measures to bailout the current market.  In 2008, this mixed bag of funding was at $1.5 trillion.  Today that figure is near $7 trillion:

fed balance sheet