Wednesday, September 10, 2014

Preparing To Asset-strip Local Government? The Fed’s Bizarre New Rules

Click here to access article by Ellen Brown from her blog Web of Debt.
The rule change may not have much effect in a crash, but where it will have a major effect is on the cost of credit, which will increase for municipal governments and decrease for corporate and financial institutions. The result will be to further shift power and financial resources from the public sector to the private sector.
I spent about an hour looking for mainstream financial analysts to address this development, and I found nothing. There were a couple who suggesting dumping municipal bonds, but for other reasons. I also could find nothing to suggest that municipal authorities were at all concerned. However, I cannot see any reason to disagree with the logic of Brown or the Martens on this issue.