IT'S NOT JUST THE OBAMA ADMINISTRATION FLOUTING THE LAW, SO IS THE FED—PART ONE

By now everyone knows that the Obama administration is deliberating choosing to disregard some laws, most notably Obamacare and immigration statutes, among others. By contrast, the Fed’s extra-legal moves have gone almost completely unreported by the press.

For example, the Fed recently issued its annual report. Some news stories focused on the big unrealized loss ($53 billion) in its securities portfolio, but none noted the illegal way in which the Fed created this loss.

One story described Republican critics of the unrealized loss as “unsophisticated… primitive… [holding] childlike beliefs about monetary policy.” Don’t they know that the Fed contributed $79 billion to the Treasury last year, a sum larger than the unrealized loss and a big help for the federal deficit?

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