Posted on 09/20/2019 11:35:56 PM PDT by Yosemitest
what conspiracy theory is that? I was asking for an explanation on what the Fed is doing now, in simple terms. I don’t need anyone to tell me about the derivatives market and all that other Wall St bullsh*t and then accuse me of wearing tinfoil hat.
And thinking that they big banks, the Fed and Wall St are screwing us over, isn’t a conspiracy, in any shape or form.
The Fed’s employees are paid a fraction of what they would make doing similar jobs in the private sector and all the net profits the Fed earns from its operations are refunded to the American people’s Treasury, averaging about $100 billion a year in recent times.
Raise your hand if you believed the big banks were not under collateralized.
I believe the FED is planning to engineer a market downturn for next year’s election just like they did last year.
The Fed prints all money out of thin air then lends it to us at interest. All US dollars are debt from inception. Thats the problem. Trump knows this.
The sole purpose of the Federal Reserve is to transfer wealth from the people to banks and corporations. That is all.
Two very long articles filled with good information and then you come up with a conclusion that makes no sense.
“...to operate a floor system with the minimum level of reserves necessary to permit the efficient and effective conduct of monetary policy:
“minimally ample reserves” for short.”
The Fed controls short term rates AND dictates overnight bank holding requirements. TWO different things.
Increasing or decreasing reserve requirements is meant to provide liquidity, prevent a “run on the bank” and goes hand in hand with a “tight or loose money” stance. With inflation low there is no reason for “tight money” now.
This is a return to normalcy from Keynesian insanity of the Obama years.
“10 percent overnight? Wow.”
That’s 10% annualized. Overnight they got 1/365th of 10% thanks to a short term situation.
Not so Wow.
Well yeah it is compared to 1/365th of 2.5 percent.
I’d say 4 times more is wow.
Are you kidding? I have it on very good sources that this is all part of a brilliant plan to destroy the FED. Heard it on X22 report (yes-I’m serious). You see-Trump hires Powell to destroy the Economy so the FED would take the blame and the country will be smart enough to know that this disaster is not Trumps fault-but the Fed’s. Yes-seriously.
So you’re a fan of a central bank, that nowhere in the Constitution states that there should be one? You’re a fan of a group of people that can manipulate our economy however they want?
When you say its employees are paid a fraction of they would make doing similar jobs, feel free to provide an example. Not that I give a damn what any of them get paid.
It is a private bank that has no accountability to the American people. When talk of an audit is brought about folks get worried. I wonder why.
But, then again, entrusting our economy to the likes of Waters, Pelosi, AOC, Omar, Tlaib, Pressley, Schumer, Sanders, Harris, Warren and a whole slew of Republican’s is absolutely frightening.
not according to fellow commenter, babble-on. He/she apparently thinks the Fed is wonderful.
I've got some FRNs in my wallet, no one ever came looking for interest from me. Who do you pay? How much? Where do you mail the check?
The jump in overnight rates was an extremely brief spike that coincided with a tax payment deadline for large corporations, and a holiday in Japan which meant that normal borrowing there wasn’t available so it went here.
This article is making a big deal out of nothing.
Thank you for the insight.
The Fed can’t “enrich itself”. All income above salaries and normal expenses goes directly to the US Treasury. It’s been that way since day one.
The Fed began as a compulsory association of all nationally chartered American banks. You have to join, it’s not voluntary. It’s not a commercial bank. It’s job is to provide liquidity to the banking system to prevent a system collapse. All of the buying and selling of bonds it engages in is for adjusting the money supply available to commercial banks.
“I understand completely how the Fed has taken over our banking system and they set the rates for loans, credit cards, etc. So, if the Fed disappeared tomorrow and the banks were forced to set their own rates, how does that happen and what would it mean for us?”
We would go back to what existed before. Presidents would have to run hat in hand to the biggest money center bank and beg them to do something to keep the American economy from collapsing. Back then it was JP Morgan’s bank. So you’d go from our current system, which has some gov’t input, back to the days when there was no gov’t involvement at all. And you better hope that the big banker is another patriot like Morgan or you’re in a world of trouble. Today you’d likely be begging some Saudi prince or Chinese apparatchik for help.
“I think it’s pretty obvious that the Fed and Big Banks act in collusion to screw over their captive audience, all of us, every chance they get to make more and more money, while we get left holding the bag.”
The illusion that guarantees an endless audience for conspiracy theories.
“not according to fellow commenter, babble-on. He/she apparently thinks the Fed is wonderful.”
That’s what happens when you read the history of the Panic of 1907, the Aldrich-Vreeland Act, the National Monetary Commission, and other dull stuff like the issuance of Clearinghouse receipts as emergency money.
Conspiracy stories are much more entertaining and I highly recommend them instead.
History, logic and facts have no place in a discussion of the evil Federal Reserve.
“Repeal the 16th amendment!!!”
That made the income tax legal. Didn’t have anything to do with the Federal Reserve, which was created by an act of Congress.
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