Posted on 05/01/2010 10:33:11 AM PDT by Errant
Our Federal Reserve holds over 7000 tons.
Thats a lot of gold
I'm not sure how much is ours:
More that half the shareholdings in the Federal Reserve Bank arc controlled by large New York City banks, including National City Bank, National Bank of Commerce, First National Bank, Chase National Bank, and Marine National Bank. When Rockefeller's National City Bank merged with J.P. Morgan's First National Bank in 1955, the Rockefeller group owned 22 percent of the shares of the Federal Reserve Bank of New York, which in turn holds the majority of shares in the Federal Reserve System - 53 percent. But who really owns what? Here arc the top controllers of the Federal Rwerve Bank
1. Rothchild banks of London and Berlin.
2. Lazard Brothers Banks of Paris.
3. Israel Moses Seif Banks of Italy.
4. Warburg Bank of Hamburg and Amsterdam.
5. Lehman Brothers Bank of New York.
6. Kuhn, Loeb bank of New York.
7. Chase Manhattan Bank of New York, which controls all of the other 11 Federal Rwerve Banks.
8. Goldman, Sachs Bank of New York.
I agree with you but believe a little diversification into other assets would be wise (i.e. gold, silver, cash, securities and property).
All of it.
More that half the shareholdings in the Federal Reserve Bank arc controlled by large New York City banks
Not true.
Here arc the top controllers of the Federal Rwerve Bank
Banks that hold FR shares don't get a portion of the earnings and don't get to vote on monetary policy.
Indeed - hedge, hedge, hedge. It's best to be prepared for a variety of potential events, or at least the ones that share somewhat higher probability.
Obviously these shareholders are receiving some incentive. Would you care to explain what it might be?
To be a member bank, you must buy shares. The amount you must buy depends on your capital. Shares receive an annual 6% dividend.
A about 250 billion dollars worth. A small fraction of total US obligations and less than 10% of this year's budget alone.
That's a pretty sweet deal. Can't they also borrow from the Fed at a rate of less the 1%?
Thanks for the information.
That's a pretty sweet deal.
Really?
Can't they also borrow from the Fed at a rate of less the 1%?
Yes, they can borrow overnight at the current discount rate. So what?
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Good synopsis on your post. So many small business owners here are so unsure as to what Obama is going to do to them next. Even if they could borrow money, most don’t want to risk it because while he’s so anti-business, he’s also so two-faced and erratic with taxes & business policies. For example, many smaller companies that offer oil exploration support services to the bigger oil companies just got cut off at the knees last week by Obama’s reversal on offshore drilling. Many began to hire some folks and were getting ginned up ... and then Obama goes 180 degrees on offshore oil exploration. That same trepidation is expressed over and over by small business owners — what will Obama do next to damage their ability to be successful? |
Oh nothing. I just thought that if I were a bank, I might look at borrowing at a low rate (< .5%) from the Fed and loan it to the Treasury at around 3.5%. Then I could maybe eventually take those profits and buy more Federal Reserve shares that pay 6% annually at no risk.
No wonder business are having a hard time borrowing money. What bank would want to loan money to risky businesses with all the hassle that entails when you have a sure thing?
We now have an artificial economy with unintended consequences occuring and business having to compete with the government. I don't think this will end well.
What would you buy to do that? If you did that 1 year ago, would you have a profit today?
Then I could maybe eventually take those profits and buy more Federal Reserve shares
You can't just decide to buy or sell Fed shares.
What bank would want to loan money to risky businesses with all the hassle that entails when you have a sure thing?
Sure thing? LOL!
If you could, in greater detail, lay out the steps needed for that sure thing, I'd like to see it. Thanks.
Global Debt Crisis Hits Markets, The Moment of Truth is Upon Us
It seems to me that if you have a rigged game where certain banks can borrow at no limit, because you are allowed to borrow at a discount to buy government securities without regard to a reserve margin ceiling, and invest those borrowed funds at a no risk 3% profit in a down economy you're problably way better off.
I just finished reading SURVIVING THE ECONOMIC COLLAPSE (Fernando Ferfal Aguirre) which was written by a man who lived through the economic collapse of Argentina which happened in 2001 and is ongoing. Argentina experienced inflation, by the way, but that has nothing much to do with the U.S. problems right now except maybe the out of control debt in each situation.
Whether collapse and calamity is brought about by inflation or deflation, this book is very, very useful. I highly recommend it. Even if you are an economic wiz and a survival expert, you do not know what you need to know. Even if you think you are prepared for the worst and you have plenty of resources to make it through, you probably won’t unless you read this book. It’s that valuable. (I have no affiliation with the author and derive no benefit by recommending it.)
It seems to me that you all are missing something. History. In fact at least 3,000 or more years of history. The easy illustration, although there are almost innumerable examples, is Imperial Rome. When Julius Caesar was assassinated in 31 BC the Denarius was gold or silver and bought a commensurate amount of goods for its value in precious metal. By the time of 410 AD, and the sack of Rome by Alaric, the currency had become so debased as to be effectively worthless. It was no coincidence that Rome at that time was dealing with a chaotic and terminal case of collapse of government and the economy.
While the Denarius was being clipped and ultimately the precious metals replaced by common metals, (removing the value backing) the Dollar today has in only 97 years had almost the same decline as the Denarius, in 20% of the time, wildly accelerated by the removal of the gold backing, and opening the flood gates of irresponsible budgetary deficits, and the erosion of the fundamental value of the currency. The tanking of confidence in government, politicians and bureaucrats is in parallel to their usurpation of untrammeled power and suppression of individual liberty! Someone said that they felt a currency that was NOT backed by a gold or other immutable standard could support an economy. The proviso being that the economy was functioning on an even keel, manufacturing, agriculture, and the annual budget of the government being relatively balanced. The critical factor being a relatively balanced system with restraints on government spending – sustainable economic growth – which history teaches is impossible without a solid backing to the nation’s currency. An imposed economic discipline.
Sovereign debt at this point in history is damn near out of control, there being no economic discipline anywhere in the world. Whether there is a continuation of the series idiotic government extensions of entitlements to the growing percentage of indigent and non-productive members of the global society – while the governments (as particularly practiced in the US and UK at present) clamp an ever tighter grip on the diminishing productive elements, is almost certainly going to result in a global Depression and likely a staggering number of deaths from starvation and chaotic civil disorder. The hoped for reduction in human inhabitants of the globe – expressed by Soros, and the various powers largely responsible for today’s crises – is a significant probability. The niceties of economic theory, in conjunction with the issues of legitimacy for the present emperor Diocletian is very likely utterly redundant.
A very interesting discussion - wasn’t until a while ago.
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Please tell me what these no risk government bonds are that you keep talking about. Thanks.
Stopping the banking system from imploding didn't help the consumer?
the Fed bailed out the too big to fail institutions with a trillion and a half dollars of your money
The Fed doesn't loan out your money when they make a loan.
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