Tuesday, January 25, 2011

Xtranormal Cartoon Explains POMO

What is POMO?

According to the Federal Reserve Bank POMO (Permanent Open Market Operations) is defined as-
      "The purchase or sale of Treasury securities on an outright basis adds or drains reserves available in the banking system. Such transactions are arranged on a routine basis to offset other changes in the Federal Reserve’s balance sheet in conjunction with efforts to maintain conditions in the market for reserves consistent with the federal funds target rate set by the Federal Open Market Committee (FOMC)."

But what does all this have to do with you and I, the American taxpayer? Unfortunately, a lot since it is your money that is being stolen. If you care to learn how the Federal Reserve is transferring your tax dollars to the (to big to fail) banks then I encourage you to watch the video below.

Click to Play