Federal Reserve Chairman Donald Trump? POTUS Could Save America

connecting the dots eraoflightdotcomPresident Trump could be pulling off a major move that has the potential to save America and its economy as the nation faces one of its most difficult periods in recent history. In the face of the COVID-19 pandemic and all of the health, economic and societal fears that come with it, President Trump might come out of the chaotic situation a hero.

A Bloomberg opinion article and written by Jim Bianco explains how “the federal government is nationalizing large swaths of the financial markets.”

“The Fed is providing the money to do it,” the author states. “This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.”

How could this happen?

Essentially, the Federal Reserve has created multiple new programs lately that serve a slew of purposes.

Bianco lists the following programs and their intended functions:

CPFF (Commercial Paper Funding Facility) – buying commercial paper from the issuer. PMCCF (Primary Market Corporate Credit Facility) – buying corporate bonds from the issuer. TALF (Term Asset-Backed Securities Loan Facility) – funding backstop for asset-backed securities. SMCCF (Secondary Market Corporate Credit Facility) – buying corporate bonds and bond ETFs in the secondary market. MSBLP (Main Street Business Lending Program) – Details are to come, but it will lend to eligible small and medium-size businesses, complementing efforts by the Small Business Association.

“The Fed isn’t allowed to do any of this,” he continues. “The central bank is only allowed to purchase or lend against securities that have government guarantee. This includes Treasury securities, agency mortgage-backed securities and the debt issued by Fannie Mae and Freddie Mac. An argument can be made that can also include municipal securities, but nothing in the laundry list above.”

So if the Fed “isn’t allowed” to conduct the above-mentioned operations, how is any of this happening?

Each acronym program listed will be connected to a special purpose vehicle (SPV) financed by the Fed.

Next, the Treasury will make an equity investment in each SPV, meaning they, not the Fed, purchase the securities and backstopping of loans and the Fed is acting as a bank providing financing.

“The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury,” Bianco writes.

“In effect,” he says, “The Fed is giving the Treasury access to its printing press.”

This is revolutionary because America’s Founding Fathers granted the power to print coin to Congress and Congress only.

Article I Section 8 permits Congress to coin money and to regulate its value and Section 10 denies states the right to coin their own money.

Article I, Section 8, Clause 5 specifically grants Congress power to “coin Money, regulate the Value thereof, and of foreign Coin.”

Therefore, the framers clearly wanted the national monetary system to rest in the hands of America, not a private consortium of foreign banks, AKA the Federal Reserve.

This move appears to undo, at least partially, what former President Woodrow Wilson did in 1913, which was surrender Congress’ money-regulating powers to the privately-owned Federal Reserve.

Has Trump managed to take back control of America’s currency amid the greatest U.S. crisis since 9/11?

*Stimulus bill includes provision essentially merging the Fed and Treasury into one organization.

» Source » By Kelen McBreen

3 Replies to “Federal Reserve Chairman Donald Trump? POTUS Could Save America”

    1. Shelley J. Forste

      HERMAN R. HERRERA…Are you kidding me? I guess you dont know the definition of a prophet. Turn on BYU channel. You’ll see a prophet ordained by God.

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