Let's see if I can explain this situation in layman's terms.
Me: I need $20, can you give it to me?
You: I don't have $20.
Me: That's OK, I can lend you the $20. As long as you give it to me, and then pay me back with interest.
The Federal Reserve has been granted the right to print money and then lend it to the US government at interest.
The Fed is a private entity, owned by member banks. JP Morgan is the second largest stockholder of the Fed. http://www2.fdic.gov/...
JP Morgan bought Bear Stearns for pennies on the dollar and now are in line to receive $25 Billion in bailouts.
So the government (supported by both parties, btw) borrows $25 Billion from the Fed to give to JP Morgan. Who did the government borrow the money from to give to JP Morgan?
You got it... JP Morgan.
Overall the government borrowed $850 Billion to bail out failing banks, so the government still owes the $850 Billion back to the Fed, plus interest, in many cases to the same banks that are getting the money.
Remember, both the Democrats and Republicans supported this bill. Approximately 90% of Americans opposed this bill. This is not assign blame to one party or the other, they are both complicit in this scheme. While the government considered rejecting this bill, they were threatened that if the bill didn't pass, martial law may need to be declared to prevent the populace from rioting.
http://www.youtube.com/...
But the childlike public would rather focus on where Palin bought her outfits or her glaring lack of geographical knowledge.
This is my first diary entry, the first time I felt compelled to post.