HOW TO RESOLVE THE CREDIT CRISIS: CREDIT WHERE CREDIT IS DUE

HOW TO RESOLVE THE CREDIT CRISIS:
CREDIT WHERE CREDIT IS DUE
Ellen Brown, January 11, 2009
www.webofdebt.com/articles/creditcrunch.php


--------------------------------------------------------------------------------

Letter to the bank –

Dear Sirs, In light of recent developments, when you returned my check marked “insufficient funds,” were you referring to my funds or yours?

Economist John Kenneth Galbraith famously said, “The process by which banks create money is so simple that the mind is repelled.” If banks can create money, why are we suffering from a “credit crunch”? Why can’t banks create all the money they can find borrowers for? Last fall, Congress committed an unprecedented $700 billion in taxpayer money to reversing the credit crisis, and the Federal Reserve has already fanned that into $8.5 trillion in loans and commitments.1 But the bank bailout has proven to be no more than a boondoggle for a handful of lucky Wall Street banks, without getting credit flowing again.