Kucinich on U.S. Bailout of European Banks: We Cannot Continue to Throw Money Down the Bank Hole
Congressman Dennis Kucinich (D-OH) today released the following statement in response to reports that the Federal Reserve has committed U.S. dollars to the cash-strapped European Central Bank:
“The Fed has found trillions and trillions of dollars for banks through TARP and Quantitative Easing Episodes 1, 2 and 3. Now they figured out a way to bail out yet another set of banks - this time in Europe. But they can’t seem to figure out a way to help out the American people who are still suffering from this recession by creating jobs repairing our infrastructure. This is a clear window into priorities - Government of the banks, by the banks and for the banks.
“Bailouts and austerity packages have made no difference at best, and ‘the markets’ just cannot be satisfied. We cannot continue to throw money down the bank hole.
“Our Constitution gives the government the right and the responsibility to address these problems, but what have we done with this powerful tool? We have handed it over to the private, for-profit banking system.
“What do banks do with this privilege? Do they use this essential power to fund things we need, like fix our crumbling bridges, repair our schools, and make health care available for all?
“The answer is no, not if they cannot find a way to make a profit first. Instead, banks use the privilege we have voluntarily handed to them to create money to speculate and to goad others into speculating: on worldwide financial markets, on the price of oil, on the price of food, or on the price of homes,” said Kucinich.
Legislation Congressman Kucinich will soon introduce provides the economy with a permanent money supply that is unencumbered by debt and adjusts to meet the real needs of the economy. Unlike banks, the U.S. Government can issue money into the economy without debt.
The National Emergency Employment Defense (NEED) Act of 2011 would allow the federal government to directly fund badly-needed infrastructure repairs and fund education systems nationwide by spending money into circulation without increasing the national debt or causing inflation.