Posted on 12/30/2018 10:11:53 AM PST by MNDude
The Fed was born in secrecy.
Without it, they would die.
Why do you think the Fed, as an institution controlling multiple trillions of dollars, refuses to be audited?
Sounds good, except when you remember the Fed refuses to be audited.
So you don’t really know what happens to anything the Fed counts in numbers.
There’s always a price to pay for lying. No exceptions. The Fed will pay theirs.
You have to go back to Teddy Roosevelt, the forgotten Republican progressive, and the Panic of 1907 to find the genesis of the Fed.
The US Government used to ask JP Morgan’s bank to save the economy when panics occurred. But the 1907 panic was really big and Morgan knew that the economy was getting too large for his ad hoc bank rescue team to continue to do this.
So Morgan pushed for the formation of the National Monetary Commission to study the problem and their recommendation was the Federal Reserve System. It basically reproduced what Morgan and his allied banks were already doing, but it brought in the Treasury Dept and some government input and did it all on a larger scale. I doubt that the name was intended to deceive- it was “federal” because it consists of 12 regional reserve banks- “federal” means a union. And it is the reserve system for commercial banks, their lender of last resort.
When Wilson ran for President he opposed the original Aldrich plan which was much more centralized and had even less government control.
This is just too easy:
“There’s always a price to pay for lying. No exceptions. The Fed will pay theirs.”
It seems that you might have more to worry about than the Fed. It isn’t making unfounded accusations.
The Fed refuses to be audited?
Huh. Yet another ill-informed conspiracist tries to spread yet another tall tale about the Fed.
Contrary to your no-doubt fervent belief, the Fed System BoG and all 12 Fed district banks are audited annually. This actually happens despite any feverish imaginations you may have otherwise.
Here, try this link:
https://www.federalreserve.gov/aboutthefed/audited-annual-financial-statements.htm
If that’s not enough for you, try poking around on the Fed site. They get audited 10 ways from Sunday by everybody and their brother. Mostly by Inspectors General from whatever agency. And there’s a lot of them with a newly discovered “interest.” Especially since 2008.
While you’re at it, try this also:
https://www.fms.treas.gov/dts/index.html
It’s the DAILY (if you want it) Treasury report on all sorts of interesting stuff, including a ton of info from the Fed. I find a lot of useful investment info there. YMMV.
Seems that you’re a little out of date on your tin-foil hat Fed theories, like, say, “they refuse to be audited.” I’ve heard this nonsense from many people for 15 years and it’s NEVER been true.
That sort of rubbish is, however, very popular. The evil Fed is out to get everyone. Always and everywhere, no matter what or who you are.
Nonsense. It’s nothing but the usual government screwing everything up as they always do. Makes for a great excuse for failure, huh? It’s a grand conspiracy!
It sounds a bit like a few tax protestors I ran across maybe 5 years ago. For quite a while, they’ve either been in prison or wondering when they’ll get there or be hit with final civil judgments for taxes due as none of their legal “claims” or “theories” ever went according to plan in court.
Believing any conspiracy theory has to be a terrible way to go through life.
“Why is the Fed so secretive? From the beginning? What are they hiding?”
They aren’t hiding much. They’ve issued weekly reports basically forever. Maybe if you had read Barron’s or the WSJ once in a decade you would have stumbled over it.
Makes for real fun reading; here’s a start:
https://www.federalreserve.gov/monetarypolicy/bst_fedsbalancesheet.htm
https://www.investopedia.com/articles/economics/10/understanding-the-fed-balance-sheet.asp
bumpmark
Exactly.
I always wondered why a bunch of conspirators would go to Jekyll Island to cook up a way to get the federal government more revenue.
For later
I've come to realize that the term "audited" means something very obscure to Fed conspiracy theorists.
No matter how often you point them to the reports the claim of no audits persists, so they must have something else in mind.
I'd love to know what they want.
You misunderstood me there friend.
Of course the interest rates are announced. They are leaked even in advance, most of the time.
I was referring to the interconnectivity - of our exchange rates, and the daily LIBOR rate between New York and London, and the impact of non-market based bias and manipulation of the Fed Board of governors and Fed beneficiaries (stockholders) around the world. They do meet, and they do make credit decisions. Markets can and certainly do weigh into the “calculus” as well.
They make the decisions to loosen or tighten the credit/debt/money supply portion of the equation, which then impacts the massive money markets and currency markets.
As big as the markets are, they are not alone in determining direction and value, credit/debt rates, or velocity of money. They impact each other.
Gold held in select repositories around the world is also exchanged periodically, between central banks. And this is also very much related.
The Fed and the banking entities which influence it, which are CONUS and OCONUS, run the Fed.
Neither Congress nor the President meet to determine interest rates, or meet to determine the daily inner workings, and selling or purchasing of securities which the Fed is involved. Anyone who believes that is just plain dumb and naive.
Another significant strategy the Fed uses to manipulate interest rates is OMO, where the Fed determines to buy or sell Treasury bonds on the open market.
This increases or decreases available money supply and is done precisely to affect interest rates.
Again, this is another way the Fed manipulates interest rates as well as the free market, period.
This is precisely one of their well used tools to manipulate or intervene in the free market.
Are you, or anyone else you know privy to when, and to what extent they will do this. This is not something they always announce even after the do it.
And this does tie directly to M0-M4 money supply and the velocity of money.
Let me rephrase to make this more accurate -
“The Fed runs the Fed, and the banking entities which influence it, are CONUS and OCONUS.”
“the impact of non-market based bias and manipulation of the Fed Board of governors and Fed beneficiaries (stockholders) around the world”
I’m pretty sure that Fed stockholders are only banks operating inside the U.S. And Fed stockholders don’t have an actual beneficiary interest, it’s compulsory membership rather than ownership. Some would prefer not to belong because it ties up assets and restricts some of their freedom of action.
The Fed can set only its own Fed funds rate. That can influence other rates but the market gets the last word. Anyone who watched the Fed get beat up on a weekly basis by the Bond Vigilantes back in the ‘70s knows who wields more power.
The Fed has to play a game of anticipation concerning how much credit to supply the banking system. The size of the money supply is ultimately decided by thousands of loan officers in local banks via the magic of fractional reserve lending. Too much easy credit and you can feed an inflation. Too little and you can stall the economy. The Fed’s job is like steering a supertanker but without knowing exactly what course they need to take to avoid hitting something. They have less control than people like to imagine.
And as you mention in your post there is the added complexity of what other central banks are doing, because the Fed isn’t working in splendid isolation. What other central banks are doing can counteract or amplify the Fed’s policies. Someone asked Alan Tonelson if we could return to a Bretton Woods arrangement but with SDRs as reserve currency instead of the dollar. It would provide some link with gold and other currencies. He doubts that it is possible, he believes that we are pretty much stuck with the ‘dirty float’ exchange rates as now exist.
Who's manipulating the governors?
And since all of the Fed's profits go to the US Treasury which stockholders benefit?
“Another significant strategy the Fed uses to manipulate interest rates is OMO, where the Fed determines to buy or sell Treasury bonds on the open market. This increases or decreases available money supply and is done precisely to affect interest rates.”
Of course in the 1970s this didn’t work for the Fed at all. On Thursday evenings if the money supply numbers increased the bond vigilantes sold their own bonds and drove interest rates even higher, the exact opposite of what the Fed wanted. This continued until Paul Volcker brought credit growth to a dead halt which ultimately killed the inflationary expectations of the public.
“And this does tie directly to M0-M4 money supply and the velocity of money.”
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.
Thank God.
No, we’re talking about a real audit. Not being audited by cronies.
We might as well get Bill to audit Hillary!
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