Fed to Buy U.S. Debt, Saying Recovery Has Slowed

The New York Times ^ | August 10, 2010 | The New York Times

[John W]

Acknowledging that the recovery has slowed, the Federal Reserve announced Tuesday that it would use the proceeds from its huge mortgage-bond portfolio to buy long-term Treasury securities, The New York Times’s Sewell Chan reports from Washington.

By buying government debt, the Fed is taking an unmistakable step to maintain the large amount of money that it pumped into the economy, starting in 2007, to prop up the financial and housing markets.

[wendy1946]

No way ordinary people should be in the market any time soon at all. Our entire system at present is being governed by manipulation rather than causality and the manner in which the manipulation works is usually counterintuitive by design.

Aside from everything else, there's no way to figure any publicly traded company has a future due to some brighter idea when looking like a bright prospect automatically makes a company a target for bear raids and short selling by the Warren Buffets and George Soroses of the world.

[wendy1946]

I tried four or five times to explain our money system to the guy and all I got was name-calling. I’ve never understood why people take such pride in being idiots, I’d be ashamed to be an idiot myself.

[Toddsterpatriot]

Wendy, and another idiot named Ellen Brown, thinks every state should run their own bank. They both think that this will somehow save money and allow these states to spend a lot more money, for free.

[Toddsterpatriot]

Poor Wendy, tell me again how a single deposit of $100 allows more than $90 in loans.

[Fingolfin]

Do you believe there is any linkage between the state-owned Bank of North Dakota and North Dakota’s excellent financial position?

Are you afraid that an increasing number of Americans are waking up to the debt money and private central bank scam?

[Toddsterpatriot]

Do you believe there is any linkage between the state-owned Bank of North Dakota and North Dakota’s excellent financial position?

No. If every state had sober, conservative politicians, a state owned bank could work. And by work I mean it wouldn't allow states to "leverage" their tax revenue to spend multiples of that revenue "because everyone knows that banks create fee money".

Are you afraid that an increasing number of Americans are waking up to the debt money

As opposed to what kind of money?

and private central bank scam?

What's a private central bank scam?

You mean the Fed giving over $47 billion to the Treasury in January, up from nearly $32 billion last January?

[Toddsterpatriot]

"because everyone knows that banks create *free* money"

[meyer]

OOPS If you want to ((break)) change a system you have to break it first.

I might be a little crazy, but I think it made sense the first time. It seems like everything the left has done has been like a series of "breaks".

[popdonnelly]

Given the federal government’s insistence that lenders make bad loans, how much are the Fed’s mortgage securities really worth?

[popdonnelly]

This crap will only end when we reduce the liberals to political impotence.

[Fingolfin]

No. If every state had sober, conservative politicians, a state owned bank could work.

Well, lets let the states experiment: the reckless will fail and the wise will succeed, then we'll all emulate the successful. That is after all the intended nature of our Republic.

As opposed to what kind of money?

Permanently circulating, government-issued fiat is one method.

What's a private central bank scam?

When bankers usurp a Constitutional government's ability to create money and instead force the government to borrow it from them. Whether the owners directly make money off the central bank is not the issue, because the issue is power. $47 billion is a small price to pay for control of a nation. Its like the Bible says: "the borrower is slave to the lender".

A similar situation is the phenomena of billionaires (Soros, etc.) we see promoting Socialism... its seems paradoxical until you realize the goal is power.

[Repeat Offender]

Now that’s funny. It is like cutting a board three times but not understanding why it is still too short.

[Toddsterpatriot]

Well, lets let the states experiment: the reckless will fail and the wise will succeed,

Who pays back the depositors when the reckless state loses billions on their loan portfolio?

Permanently circulating, government-issued fiat is one method.

Our current money isn't like that? Why not?

and instead force the government to borrow it from them.

How does the Fed force the government to do that? You think the government borrows FRNs? For what?

$47 billion is a small price to pay for control of a nation.

How does returning all their income after expenses give the Fed control? Sounds like the government controls the Fed.

Its like the Bible says: "the borrower is slave to the lender".

The slave is getting $47 billion in free money from the lender. You're more confused than usual.

[TornadoAlley3]

http://www.daylife.com/photo/0aQ0aEFaSi476?q=obama

[Mase]

Are you the one who keeps posting those articles by Ellen Brown? If so, both you and Ellen desperately need a basic course in money and banking.

[Mase]

Havoc is back?

Gotta be Havoc!

[Toddsterpatriot]

Could be Havoc. Bad and math while claiming to be a math major.

[Toddsterpatriot]

Bad *at* math

[Fingolfin]

Who pays back the depositors when the reckless state loses billions on their loan portfolio?

The state could put up state-owned assets, such as land. For example, I live in Pennsylvania, which has state-owned liquor stores. If those were privatized and sold, people are estimating the state could earn hundreds of millions of dollars. Instead of squandering it on nonsense, we could use it as the deposit basis for a state bank that makes loans to the state for infrastructure, which is crumbling here. Infrastructure that would support further economic activity, enabling the loans to be repaid and the money extinguished.

Our current money isn't like that? Why not?

Our FRNs only appear to circulate permanently because the government bonds backing them never get repaid and continue to be rolled into new loans.

The slave is getting $47 billion in free money from the lender.

Its a pittance and an illusion, and only comes at the expense of a multi-trillion dollar, unpayable national debt.

[Soothesayer9]

Good stuff. I especially liked the well-timed organ piece whenever he hit that “common sense” part of the sermon. But I guess common sense today isn’t so common after all.