It’s just that nobody is pointing it out – or perhaps because it is an obscure, complicated system, nobody has realized what it actually is.

Let's see, how about March of 2008 -- http://www.cepr.net/...omeone-has-to-pay:

The story of the discount window is straightforward. The Fed is allowing investment banks, who are subject to none of the restrictions or disclosure requirements of commercial banks, to borrow at a government subsidized interest rate. Currently the discount rate is 2.5%.

Oh, but that's just pointing out that they get to use the discount window. How about this one from August of 2009 -- http://www.prospect...._bank_bailout_acc:

The Fed has pressed the short-term interest rate to near zero. This allows banks to borrow directly from the government at a almost no cost and then make loans, including to the government, at interest rates of 3.5 percent (10-year Treasury bonds) and higher.

Baker has been talking about this for about as long as it's been happening. Why none of the major media -- or even their financial channels -- is having him on to talk about it is an interesting question. (Actually, no it's not. I'm pretty sure I know the answer.)