Huge: Did President Trump Just Make Himself Federal Reserve Chairman?

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(Tea Party 247) – President Donald Trump may have just quietly pulled off a major move that could rescue our nation as we know it from the precipice of one of the greatest crises in recent history.

As we grapple with the COVID-19 pandemic and all the logistical and financial trials our nation now faces, President Trump may very well come out of this situation even more of a hero than he’s already been for the America First agenda.

According to a Bloomberg op-ed penned by Jim Bianco, “the federal government is nationalizing large swaths of the financial markets.”

“The Fed is providing the money to do it,” he writes. “This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.”

Hold up. How can this be?

Newswars explains that, “Essentially, the Federal Reserve has created multiple new programs lately that serve a slew of purposes.”

Bianco points to the following programs and their intended purpose:

CPFF (Commercial Paper Funding Facility) – buying commercial paper from the issuer. PMCCF (Primary Market Corporate Credit Facility) – buying corporate bonds from the issuer. TALF (Term Asset-Backed Securities Loan Facility) – funding backstop for asset-backed securities. SMCCF (Secondary Market Corporate Credit Facility) – buying corporate bonds and bond ETFs in the secondary market. MSBLP (Main Street Business Lending Program) – Details are to come, but it will lend to eligible small and medium-size businesses, complementing efforts by the Small Business Association.

“The Fed isn’t allowed to do any of this,” he continues. “The central bank is only allowed to purchase or lend against securities that have government guarantee. This includes Treasury securities, agency mortgage-backed securities and the debt issued by Fannie Mae and Freddie Mac. An argument can be made that can also include municipal securities, but nothing in the laundry list above.”

So how is any of this happening if the Fed “isn’t allowed” to conduct the aforementioned operations?

Each program listed will be linked to a special purpose vehicle (SPV) financed by the Fed.

Then, the Treasury will make an equity investment in each SPV meaning that they, not the Fed, are in charge of purchasing the securities and backstopping of loans and the Fed is acting as a bank by providing financing.

“The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury,” Bianco writes.

“In effect,” he says, “The Fed is giving the Treasury access to its printing press.”

Newswars explains:

This is revolutionary because America’s Founding Fathers granted the power to print coin to Congress and Congress only.

Article I Section 8 permits Congress to coin money and to regulate its value and Section 10 denies states the right to coin their own money.

Article I, Section 8, Clause 5 specifically grants Congress power to “coin Money, regulate the Value thereof, and of foreign Coin.”

Therefore, the framers clearly wanted the national monetary system to rest in the hands of America, not a private consortium of foreign banks, AKA the Federal Reserve.

This move appears to undo, at least partially, what former President Woodrow Wilson did in 1913, which was surrender Congress’ money-regulating powers to the privately-owned Federal Reserve.

Has Trump managed to take back control of America’s currency amid the greatest U.S. crisis since 9/11?

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