Fed Pledges Exceed $7.4 Trillion to Ease Frozen Company Credit

Fed Pledges Exceed $7.4 Trillion to Ease Frozen Company Credit

www.bloomberg.com

The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg.

(visit the link for the full news article)



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Bailout Price Tag: $3.5 Trillion So Far, But 'Real' Cost May be Much Higher!

$7.4 trillion. $7,400,000,000,000. Half of our 2007 GDP. Add on another $300B for tonight's Citigroup bailout.

There comes a point where the numbers just don't mean anything anymore, and I think I just reached my point. I can't fathom nearly $8T. My mind won't wrap around it. In March 2006, our entire national debt stood at $8.2 trillion; in two and a half years we've added another $2.4 trillion to that number, and now we're looking at expenditures of $7.4T + on the economic crisis.

How many generations will it take to pay it all back?

www.bloomberg.com
(visit the link for the full news article)

[edit on 11/24/2008 by anachryon]

reply to post by anachryon


The U.S. dollar is the reserve standard of the world. Since almost the entire world is affected by this financial crisis, the entire world is also buying U.S. dollars. So we do have a considerable advantage when it comes to printing money since the world will essentially be paying us back. And I doubt there will be loss in confidence for the U.S. dollar. It's the safest bet as most of the world recognizes that this government is good at getting its taxes. And if people are out of jobs, it's fairly good at getting them back to work, i.e. FDR's New Deal. When will we not be able to keep printing money that's actually worth something? Either when we lose hope, or when it's taken away from us. Lethargy or war. But otherwise we're pretty near invincible, as long as the rest of the world is suffering also, and that's key.

[edit on 24-11-2008 by cognoscente]

With that much currency floating around the dollar is going to become anemic and inflated to the point of peril. Soon they will have to start recirculating those $500 and $1000 bills, so we can buy bread and milk.

Buy physical gold if you can find it. Sit on that physical gold. That is my only bit of advice. What is happening here is theft from everyone. We will never be able to pay off all of this debt. My only guess is they will invest this money in the form of stocks and when things turn back around sell all the shares and destroy the money. If they dont do that then I dont see how gold wont go to $10,000 an oz.

The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages.

To all of you republicans puking out the "socialism" rhetoric during the campaign...

The real reason the Fed doesn't use this money to help people from losing their homes is because they want to keep people in a constant state of need. Instead, they prefer to pay off their wall street / CEO buddies so they can keep their limos and private jets.

GOD, I'VE HAD IT WITH THIS GOVERNMENT! I wish I could say what I really want, but rules prohibit me from using profanity.

Something needs to be done... now! It's time to storm the castle and take back the country our forefathers originally established... FOR THE PEOPLE.

[edit on 24-11-2008 by mecheng]

Gold at 10,000 an ounce would be great news for the M/E countries that just hedged there oil wealth against billions in bullion.

And of course there's the question of the American Gold..., where has it gone?

Originally posted by mecheng

The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages.

To all of you republicans puking out the "socialism" rhetoric during the campaign...

The real reason the Fed doesn't use this money to help people from losing their homes is because they want to keep people in a constant state of need. Instead, they prefer to pay off their wall street / CEO buddies so they can keep their limos and private jets.

GOD, I'VE HAD IT WITH THIS GOVERNMENT! I wish I could say what I really want, but rules prohibit me from using profanity.

Something needs to be done... now! It's time to storm the castle and take back the country our forefathers originally established... FOR THE PEOPLE.

[edit on 24-11-2008 by mecheng]

Heres the thing. People keep saying its not fair that they are not bailing me out. Forget that I DONT want a bailout. I dont want or need any help. I just dont think that these scumbags in the banking industry, auto industry, oil industry, airline industry, or any of them should get a bailout. Go bankrupt and learn what its like to struggle like the rest of us. Maybe it will remind you of what its like to be an American which is something most of our CEOs have forgotten.

Originally posted by Maxmars
Gold at 10,000 an ounce would be great news for the M/E countries that just hedged there oil wealth against billions in bullion.

And of course there's the question of the American Gold..., where has it gone?

Oh its going to happen. Ive been sliding into physical because of this. There is no way to ever pay off all this money being spent unless they revalue gold and kill our currency.

reply to post by mybigunit


Agreed... 100%

The number is unbelieveable... inconceivable! I honestly can't wrap my mind around this... you COULD pay off HALF the mortgages in this country... unreal. I honestly think the Fed thinks they are playing with monopoly money... oh, wait... they are.

The thing is that throughout the campaign, all I kept hearing about is Obama's policies for socialism... redistribution of wealth... blah, blah, puke.

So I ask those of you belching out this nonsense... WHAT THE HELL DO YOU CALL THIS?

Originally posted by cognoscente
The U.S. dollar is the reserve standard of the world. Since almost the entire world is affected by this financial crisis, the entire world is also buying U.S. dollars. So we do have a considerable advantage when it comes to printing money since the world will essentially be paying us back.

Thats the thing, because the US FED is going along and printing as much as it wants to bailout whom ever it deems fit, confidence in the USD as a global reserve are waning big time. I give it until easter next year and there will be a structure for a new reserve currency that the EU, China and Russia will be buying into.

While what you are saying would have been true a decade ago, confidence in the US, its system of ultra capitalism and the way it does business is worrying the rest of the world. And if the worlds reserve currency is being collapsed because the bank in charge of it is printing ridiculous amounts of it and circulating it, the other big players will be looking for a stable currency with which to do cross currency business with

Also, the world wouldn't be essentially paying you back, it would be paying back the private owners of the FED. You would reap the benefit of a somewhat stronger dollar but nowhere near as much as the FED.

umm . . . sorry for the one liner . . . but why don't we use that money to pay off our national debt?

Originally posted by xxpigxx
umm . . . sorry for the one liner . . . but why don't we use that money to pay off our national debt?

Because that money ($7.4 T) will already have been 'borrowed' with interest. It's like paying off one credit card using another. You're not really 'paying' off the debt, you're just borrowing dollars at the current rate (which is controlled by the Fed anyway) to pay off debt (plus interest at the old rate.)

The U.S. government is going to bail out the car makers as well eventually. Add that to the tab.

The problem with this all is that you have to look back and wonder if the U.S. will ever repay the debt. They won't. So they have to do something. What that something is, I do not know. But they cannot pay it off anymore, it is beyond payable. They will have to inflate the currency perhaps to pay off the debt.