I'm working for Congressman Alan Grayson as his senior policy advisor.
Congressman Alan Grayson needs your help to find $1.2 trillion of Federal Reserve money. Since September 1, 2008, the Federal Reserve balance sheet has expanded from $800 billion to $2 trillion, or $4000 for every man, woman, and child in America. Where did this money go? No one except Fed officials know.
Now, one of the neat things about being a Congressman on the Financial Services Committee is that you get to ask Fed officials questions. And yesterday, Donald Kohn, Vice Chair of the Federal Reserve Board of Governors testified before the House Financial Services Committee and refused to tell my boss where the Fed has put $1.2 trillion of Federal Reserve money. Watch this grilling.
We need your help. About a half hour after this hearing, I got a call from the VP of Public Policy for a major bank, who assured me that they have taken no capital aside from ordinary discount window financing from the Fed.
Where do you think this money went? What kinds of questions should we pursue?