Posted on 12/30/2018 10:11:53 AM PST by MNDude
Why is everything they do such a secret?
Secrets are the product of lies.
Why did they have to start out having that stupid, ridiculous island meeting. What’s so special about the Fed that they have to keep everything secret?
Doesn’t sound so special to me. Sounds the opposite of anything good.
It doesn’t take brains to lie on reports, or to get your cronies to audit you.
All it takes is a deficit of morals.
It doesn’t take a genius to know you have to have a neutral party do the auditing.
Not auditors who guarantee ahead of time the subject of their audit will come out looking clean.
So who exactly would you want to do this audit?
You’re a fool and a dishonest one at that.
Aren’t they paid a percentage of what they print?
Pick a random name out of the phone book and we’d get a more honest audit than we do from the crony system.
Honest people are plentiful. They’re just not prominent.
You think the way they’re doing it is okay?
Being audited by cronies and crooks?
I see.
YOUR STATEMENT -
“The Fed has zero control over the velocity of money. That is a factor entirely in the hands of the public at large, and our willingness to spend or hold on to our money.”
The sum of what you have just said, is that neither when, nor how much paper money the Fed prints, has any impact on liquidity/lending/ or spending of money -
Really!
Furthermore, in determining money (”paper”) liquidity, You are saying the decisions the Fed makes regarding interest rates, and OMO (which have defied logic and technically went negative a few times after “0” took office - as in who would purchase any bond or treasury with a guaranteed negative interest rate), and lending to commercial banks, and Fed lending to the US Government have no affect on spending and economy!?
Which commercial or investment bank would by a bond or treasury with sub-performing or even negative interest rates?
They won’t, unless they are bailed out by debt monetisation/ultimately paid by the tax payer.
Out side of debt monetisation, the banks simply cannot and will not!
This is why the Fed, the ECB, and other central banks were buying bonds and treasuries themselves, multiple times between the end of 2008 and 2014, so they could keep the value of the Dollar and Euro somewhat stable, not freeze up liquidity, and not implode the entire global financial system!
WOW dude. That’s pretty fundamental.
No cause and effect...?
Using your argument, in the centrally controlled Keynsian economic model, (which fundamentally depends on the expansion of credit/debt for the expansion of economy), using your argument, there was no reason for Quantitative Easing (QE), for interest rate determined fluctuation, the sale of any treasury, or bonds, and no effect on lending and spending.
Come on Pelham...
Just throwing it out there -
Monetization and Monetisation are both in the lexicon and synonymous.
However, I could not get my spell check to accept Monetization for some reason. That’s a bit weird.
The Federal Reserve Bank is paid for the (bogus) money they print and mint. The FRB is owned by private investors. We don’t know who they are or how much profit they earn from the banks endeavors.
You almost perfectly illustrate my point.
You don't want an 'audit' in the sense that anyone else comprehends the word - those are conducted regularly.
What you seem to want is someone to tell you that all of your misconceptions about the Fed were right all along but you can't even figure out who that would be or how they would come to that conclusion.
It would be nice to know if they personally profit from choices... The most money made in the world today is from currency trading...
The word “seem” in your post illustrates precisely what you don’t know. And in this case, what you don’t know is of great magnitude.
Given the manner in which the Fed has presented itself and the way it conducts its business, there is no reasonable path to deem it an honest, or an honorable, enterprise.
Think carefully about the meaning of an audit.
And about how the goal of an audit is adversely positioned relative to the goals of the entity being audited.
This line of thinking will lead you to necessary conclusions about who should be doing the auditing.
“The sum of what you have just said, is that neither when, nor how much paper money the Fed prints, has any impact on liquidity/lending/ or spending of money -Really!”
Well that’s your spin, not mine. Individuals decide whether to save their money or spend it quickly. That’s what velocity is. The Fed can’t make you decide what to do.
The Fed injected its greatest liquidity ever post 2008 via TARP and QE and velocity didn’t go up. In the ‘70s velocity was very high due to inflationary expectations.
” You are saying the decisions the Fed makes regarding interest rates, and OMO (which have defied logic and technically went negative a few times after “0” took office - as in who would purchase any bond or treasury with a guaranteed negative interest rate), and lending to commercial banks, and Fed lending to the US Government have no affect on spending and economy!?”
No, that’s apparently your own confused interpretation. I said that the Fed cannot control anything other than their own Fed funds rate which happens to be true. The market determines interest rates other than that.
The Fed never resorted to negative interest rates although other countries have. The lowest the Fed funds rate ever got was 0.25 in 2008. You evidently have no understanding of why central banks resort to negative rates-
“Negative interest rates may seem ludicrous since why would an individual buy a government bond with a negative yield, but this is what a central bank would like you to think. The central bank’s goal is to incentivize agents to shift investments away from government bonds to something more productive economically, thus stimulating the economy.”
This line of thinking will lead you to necessary conclusions about who should be doing the auditing.
The Federal Reserve has formed and created its own image. The Fed’s signature portrait of secrecy and lurking in the shadows is of their own making.
The fruits of secrecy are the obliteration of credibility, the demise of reliability and the death of integrity.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.