Now, Off Book Borrowing to Expand

It is bad enough that the government has mortgaged your future to the hilt. In fact, the borrowing has become so disconcerting to the lenders, the government has decided, not cut back on borrowing...move some of the borrowing off the government's balance sheet and onto the Federal Reserves. Yes, they think you are that stupid:

The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets.

Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools.

Fed officials have approached Congress about the concept, which could include issuing bills or some other form of debt, according to people familiar with the matter.

As for the government's response: "Here's a puppy, now shut up."

(Thanks to the folks at for sending this tidbit our way.)

posted at 00:42:40 on 12/10/08 by clearpolitics - Category: Economics - [Permalink]

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