With the government budget just being released in New Zealand recently, coupled with the crisis occurring financially in Europe, I have been doing quite a bit of reading of matters economic on the internet over the last couple of weeks.

I found this clip on my wanderings. Very intriguing. I kind of wondered about the US Bailout of the banking industry at the height of the credit crisis. This clip goes part way to answering some of those questions, and highlights just how unstable the whole system really is.

Federal Reserve Bank Chairman Ben Bernanke has admitted that the U.S. central bank created $1.3 trillion out of thin air to buy mortgage-backed securities. Congress Representative Ron Paul pointed out, “Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.”

Bernanke nodded yes.........

Click on the read more clip to see the video, it is quite enlightening. Makes you wonder what else goes on behind the headlines!

There are quite a few really key points that are brought up on the video.

• Economic bailout plan by the G20 for Greece and other failing economies - is there more to come?
• The unstable state of economies within the US like California
• The fact that the US Congress effectively approved the purchasing of mortgage debt no-one else could support nor want