ok anons tired old lawfag is trying to figure out some complex shit while bithching an moanin about it
Q post was hailed as a big step in restructuring the fed - is it? the article posted gives little guidance and anons celebrated i guess cuz it was after all a Q post.
why i bitching? cuz its a fuking shit house of laws regs history and fuckery that is the finance system of our decrepit an corrupt fed govt - try to find a real answer? yeah right
well the twat Q posted stated ""This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump."
a yahoo finance article was linked - the meat of the article was this:
The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing.
so first this article makes it clear that the TREASURY *thats us folks) is on the hook for all this money - if it dont get paid back TREASURY gets the "first loss." The FED is lending the money - ok the good part? well first by law (already exsiting) the FED gets NO interest on these funds so we got that going for us. Second it is possible that these "SPV's" could be put in default by Treasury (POTUS) w/o effecting the credit of USA since they are in fact indpt. specialty entities - I am spitballing there but it seems like POTUS got some good leverage over the FED.
This ESF fund has LONG been a "slush fund" of the Executive Branch and Treasury and has been used for a variety of purposes - none really good for america IMO - see linked article - but it has never been used to this extent and volume - not even close
BOTTOM LINE IS THIS
ARE TAXPAYERS PAYING FOR THE FED’S EMERGENCY LENDING?
By providing funds from the ESF, the Treasury is agreeing to cover losses on the Fed’s emergency lending. If there are losses, the taxpayers are on the hook
https://www.brookings.edu/blog/up-front/2020/03/24/what-is-the-exchange-stabilization-fund-and-how-is-it-being-used-in-the-coronavirus-covid-19-crisis/
anyway i looked best i could and IMO this DOES NOT IN ANY SERIOUS WAY change or restructure the FED
Sorry I just dont see it - hope Im wrong or this is just a (baby) step in a direction - I dont know for sure but it looks like business as usual to me.