Trump strips US Fed of emergency credit powers in latest scorched-earth move
Nov 20, 2020 16:43:30 #
Ambrose Evans-Pritchard
Fri, November 20, 2020, 7:22 AM CST
The Trump Administration is to shut down the emergency lending powers of the US Federal Reserve, taking extraordinary action to block reserve funds for the incoming Biden Treasury and prevent a Democrat bail-out of state and local governments.
The pre-emptive strike marks a breakdown in the normal co-operation between the US Treasury and the Fed, and comes just as the winter wave of C****-** reaches a crescendo. The services sector is already spiralling back into contraction, with a cliff-edge approaching for jobless support.
“We are in a perilous moment for the economy,” said Jason Furman, the former head of the White House Council of Economic Advisors.
The US Treasury Secretary, Steve Mnuchin, has told the Fed that he will not roll over five of its nine Great Depression powers under the Article 13 (3) of the Federal Reserve Act. There will be a suspension of its lending facilities for companies, local governments, and ‘Main Street’ loans at the end of the year.
“The most obvious interpretation is that the Trump administration is seeking to debilitate the economic recovery as much as possible on the way out of the door,” said David Wilcox, the Fed’s former chief economist, now at the Peterson Institute.
“Circumstances are very tenuous at the moment. If the situation unravels and really goes South this could prove to be a very damaging step. Secretary Mnuchin will go down in history as the man who took away a safety net when it was really needed,” he said.
The Treasury also instructed Fed Chairman Jay Powell to return the unused portion of a $454bn account approved by Congress during the market meltdown in March.
This seed money gave the Fed $4.5 trillion extra lending power under a policy of 10:1 leverage and had an electrifying effect on market confidence – avoiding the errors made in 2008.
Trump will burn this country to the ground out of spite.
Fri, November 20, 2020, 7:22 AM CST
The Trump Administration is to shut down the emergency lending powers of the US Federal Reserve, taking extraordinary action to block reserve funds for the incoming Biden Treasury and prevent a Democrat bail-out of state and local governments.
The pre-emptive strike marks a breakdown in the normal co-operation between the US Treasury and the Fed, and comes just as the winter wave of C****-** reaches a crescendo. The services sector is already spiralling back into contraction, with a cliff-edge approaching for jobless support.
“We are in a perilous moment for the economy,” said Jason Furman, the former head of the White House Council of Economic Advisors.
The US Treasury Secretary, Steve Mnuchin, has told the Fed that he will not roll over five of its nine Great Depression powers under the Article 13 (3) of the Federal Reserve Act. There will be a suspension of its lending facilities for companies, local governments, and ‘Main Street’ loans at the end of the year.
“The most obvious interpretation is that the Trump administration is seeking to debilitate the economic recovery as much as possible on the way out of the door,” said David Wilcox, the Fed’s former chief economist, now at the Peterson Institute.
“Circumstances are very tenuous at the moment. If the situation unravels and really goes South this could prove to be a very damaging step. Secretary Mnuchin will go down in history as the man who took away a safety net when it was really needed,” he said.
The Treasury also instructed Fed Chairman Jay Powell to return the unused portion of a $454bn account approved by Congress during the market meltdown in March.
This seed money gave the Fed $4.5 trillion extra lending power under a policy of 10:1 leverage and had an electrifying effect on market confidence – avoiding the errors made in 2008.
Trump will burn this country to the ground out of spite.
Nov 20, 2020 16:48:45 #
Michael10 wrote:
Ambrose Evans-Pritchard br Fri, November 20, 2020,... (show quote)
No he will not. He is trying to save us. If Biden and the Democrats get away with this thievery we will be lost for all time. No Constitution and at the mercy of the CCP.
Nov 20, 2020 16:51:49 #
Tiptop789
Loc: State of Denial
Michael10 wrote:
Ambrose Evans-Pritchard br Fri, November 20, 2020,... (show quote)
So much for trump caring about Americans.
Nov 20, 2020 16:53:19 #
Tiptop789 wrote:
So much for trump caring about Americans.
No point in trying to convince people who will not believe.
Nov 20, 2020 17:00:19 #
Carol Kelly wrote:
No he will not. He is trying to save us. If Biden and the Democrats get away with this thievery we will be lost for all time. No Constitution and at the mercy of the CCP.
Biden won by over 6 million v**es honest v**es why is that hard to beleave.
Nov 20, 2020 17:30:44 #
Michael Rich
Loc: Lapine Oregon
Michael10 wrote:
Ambrose Evans-Pritchard br Fri, November 20, 2020,... (show quote)
Yeah...we've heard...everything Trump has done hurts the country.
Nov 20, 2020 22:37:12 #
Nov 21, 2020 07:40:59 #
Don’t worry, Trup knows what he’s doing he cares about our country win or lose. He knows ore about economy &money in his pinky finger than 95% of the rest of us combined. He always has a plan, he won in a historic landslide? This will be proven.
Nov 21, 2020 07:45:36 #
Tiptop789
Loc: State of Denial
Carol Kelly wrote:
No point in trying to convince people who will not believe.
So because he didn't win ree******n, his answer is starve? What a caring SOB, but that's trump for you.
Nov 21, 2020 07:47:49 #
Tiptop789
Loc: State of Denial
Mommam wrote:
Don’t worry, Trup knows what he’s doing he cares about our country win or lose. He knows ore about economy &money in his pinky finger than 95% of the rest of us combined. He always has a plan, he won in a historic landslide? This will be proven.
Yeah he's real smart, just look at some of his defunct businesses, ie, trump airlines, trump Taj Mahal, trump university. Lol, the only successful one is bilking all the suckers out of their hard earned cash.
Nov 21, 2020 07:49:25 #
Mommam wrote:
Don’t worry, Trup knows what he’s doing he cares about our country win or lose. He knows ore about economy &money in his pinky finger than 95% of the rest of us combined. He always has a plan, he won in a historic landslide? This will be proven.
Yea Knows more about Bankruptcy, Any businessman who goes broke running a casino isn't much of a businessman. If you can't sell liquor and gambling and make a profit you can't make money on much of anything. Trump is a conman and conning people out of their money has been his main income.
Nov 21, 2020 08:43:05 #
Michael Rich
Loc: Lapine Oregon
Michael10 wrote:
Yea Knows more about Bankruptcy, Any businessman who goes broke running a casino isn't much of a businessman. If you can't sell liquor and gambling and make a profit you can't make money on much of anything. Trump is a conman and conning people out of their money has been his main income.
Most all of the Atlantic City casinos went bust.
As far as selling booze, those casinos gave free drinks to gamblers.
What have you accomplished in your life that is more lucrative than Trump INC.?
Nov 21, 2020 11:33:28 #
byronglimish wrote:
Most all of the Atlantic City casinos went bust.
As far as selling booze, those casinos gave free drinks to gamblers.
What have you accomplished in your life that is more lucrative than Trump INC.?
As far as selling booze, those casinos gave free drinks to gamblers.
What have you accomplished in your life that is more lucrative than Trump INC.?
There's no way of knowing how lucrative Trump is he won't show his taxes, but I spent 25 years in Government service Then I started a telecommunications business that was very successful employing over 30 people at it's highest. Sold it after 7 years for a little over 3 million and retired. I don't need any more than that.
How about you?
Nov 21, 2020 11:52:57 #
Michael Rich
Loc: Lapine Oregon
Michael10 wrote:
There's no way of knowing how lucrative Trump is he won't show his taxes, but I spent 25 years in Government service Then I started a telecommunications business that was very successful employing over 30 people at it's highest. Sold it after 7 years for a little over 3 million and retired. I don't need any more than that.
How about you?
How about you?
I'm not hurting.
Nov 21, 2020 12:12:50 #
byronglimish wrote:
I'm not hurting.
I'm truly happy for you, truly. To bad much of the rest of the country is hurting and this vindictive action by trump will not help those most in need one bit. His Narcissist actions will help no one except his own ego.
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