Billions created out of thin air.

It’s estimated that the Federal Reserve bail outs have cost them 314 billion dollars. You as an American citizen have to be wondering, where did this money come from, correct? Did it come from your taxes? Not exactly, but I am sure you will be feeling the taxation of these bail outs.

What has happened is the Federal Reserve has offered Bear Sterns, Freddie, Fannie and AIG a credit line. This isn’t exactly “real” money. It’s money, but it’s money that they are going to release into the market. The Federal Reserve has put 314 billion dollars into the market out of thin air. What happens in a situation like this is that the Federal Reserve has defaced the dollar more with creating money out of thin air to bail out these four companies. What does this mean to the average American citizen?

With  more currency in the market, there will be inflation. Inflation is an indirect tax upon the citizens because something that costs $1 today may cost $1.25 tomorrow. It’s unfair to the Average American that a quasi-public institution can create more money out of thin air and inevitably make the citizens pay for a corporation’s downfall.

If you can’t follow what I’m saying then have a look at Zimbabwe. They are currently in a state of hyper inflation and there is little they can do to stop their “recession”. The most a citizen of Zimbabwe can withdraw from a bank is the equivalent of $1 USD and that will barely pay for their bus fare to the bank.

I can only hope that is not the dark path that the US is following. If I had my way I would make the Federal Reserve fully open to the public, with MAJOR oversight by the House Financial Committee. This would be until we are out of the 9 trillion dollars in debt, and afterward the Fed. Reserve would be dismantled.

If I was elected president in November, I have an 8 year plan to get us out of the debt. However, it would mean that the government in its entirety would need to live within its means.