Friday, March 28, 2008

Federal Reserve Bank Steps from Sidelines For The First Time Since 1930

In a departure from long established prior practice, the Federal Reserve Bank has started to lend money to investment firms . Until now, it had only lent money to conventional banks. This escalated involvement of the Federal Reserve Bank in the financial sector is likely to create important precedents that will redefine its role in future difficulties. Loans are made by the Federal Reserve to prevent failures of financial institutions that would have a detrimental effect on large numbers of people.This is best illustrated by the old saying , "If you owe a million dollars to the bank, that's your problem. If you owe the bank a billion dollars, that's the bank's problem."
Collectively, American workers owe the banks billions and billions of dollars. A financial climate in which jobs are outsourced and the value of domestic labour is depressed with chaotically regulated immigration takes its cumulative toll on the nation's collective financial health. In agriculture and production of raw hmaterials, the government intervenes with tariffs and subsidies to prevent the erosion of commodity prices. The labour of the American worker must be recognised as a commodity of strategic worth to be protected. It is not only seasonal agricultural workers coming in on temporary visas, but computer programmers and other skilled workers are brought in to fill positions that were advertised with absurdly low salaries to show the "good faith" that is required before the government will issue a visa.
Any financial strategy that targets only banks and financial institutions is by definition incomplete. The problems of the American worker must be weighed and addressed in any solution to our current financial crisis.
Copyright 2008. By Magdeburger Joe
Please click on link below to read a background story from the Washington Post.

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