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According to the Fed Flow of Funds report, the Fed has absorbed about $40 billion per year of Treasury borrowings over the last five years. The $30 billion interest is actually a net loss to the Treasury, since they paid out about $35 billion in interest to the Fed (the difference is the cost of operating...
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Central banks perform a number of functions; basically they act as the government's own bank, holding the government checking accounts and collecting tax receipts, facilitating the issuance of bonds, etc. They are also frequently given regulatory functions, such as the enforcement of fractional reserves...
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I've long been convinced that the real threat Iraq and Iran pose is to the hegemony of the dollar. See: http://en.wikipedia.org/wiki/Iranian_Oil_Bourse Now read this, but skip all the 'whereas'es and read what it specifically calls for: http://www.govtrack.us/congress/billtext.xpd?bill=hc110...
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In the midst of our economic slowdown, the U.S. Treasury Dept has issued what they are calling the "Blueprint for Financial Regulatory Reform". The highlights, as given by an article on Yahoo!'s website , are as follows: --designate the Fed as the primary regulator for market stability...
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Good question. The New York Fed does not lend money to major securities dealers; it buys securities and pays for them with a check. These securities do not always have to be Treasuries. Last year, the Fed bought mortgage-backed securities. If the number of securities remained constant, there would indeed...