You won't believe this:
The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets.
Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools.
IIRC, the Constitution provides that only the Treasury can issue currency; I don't know about bonds and notes...
HT: Ritholtz
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2 comments:
This is very scary stuff.
Constitution? We don't need no stinkin' constitution!
Dad, I'm beginning to think you only point out things can go wrong..oh wait, I guess that is in your posts about the government...nevermind!
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