Under Bernanke’s direction, the Federal Reserve has completely rewritten its mission.
the charts below tell that story, and it is truly amazing.
The situation is not easy to sort out
partly because of the piecemeal way the actions were taken, but also probably due to a desire by the Fed to avoid public scrutiny and criticism.
the Fed’s balance sheet reveals
the complete change of composition and direction of the Fed.
is that they have doubled the size of their assets and liabilities
The balance sheet started with $800 billion of mostly reliable assets and now has about $250 billion of unencumbered Treasuries.
The important conclusion is that the paper dollars are now issued by a far less soundly structured Fed, an organization that is more interested in bailing out the financial community than defending the dollar.
Nothing like this has ever been done before by the Federal Reserve. In time, the consequences in terms of confidence in the dollar will be bad.
clipped from: www.whiskeyandgunpowder.com 
