Admittedly, not a financial guy and have very basic understanding of the markets and Wall St. That doesn’t make me a bad guy or an idiot as some on this page would automatically assume. I could have went the Wall St/banking route like many of friends, I chose not too. That being said.....
Can someone explain, in layman’s terms, what this means and how the Fed seems to be, once again, playing a game to enrich itself and its cronies on Wall St, and the taxpayer will end up footing the bill if it all sh*ts the bed?
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?
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.
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.
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I remember long ago hearing interview with the author of a book called “The Creature from Jekyll Island” about the creation of the Federal Reserve. The takeaway line I remember from the interview was that the you hear the phrase “Federal Reserve” this “banking cartel”, because that’s what it is and that’s who it serves.
If you’re not a financial guy, don’t make the first thing you read about the Fed be a paranoid conspiracy theory.
The sole purpose of the Federal Reserve is to transfer wealth from the people to banks and corporations. That is all.
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.