Posted on 12/24/2013 1:45:23 PM PST by Errant
The Democratic Party gained prominence in the first half of the nineteenth century as being the party that opposed the Second Bank of the United States. In the process, it tapped into an anti-state sentiment that proved so strong that we wouldn't see another like it until the next century.
Its adversaries were Whig politicians who defended the bank and its ability to grow the government and their own personal fortunes at the same time. They were, in fact, quite open about these arrangements. It was considered standard-operating procedure for Whig representatives to receive monetary compensation for their support of the Bank when leaving Congress. The Whig Daniel Webster even expected annual payments while in Congress. Once he complained to the Bank of the United States President Nicholas Biddle, “I believe my retainer has not been renewed or refreshed as usual. If it be wished that my relation to the Bank should be continued, it may be well to send me my usual retainer.”
(Excerpt) Read more at marketoracle.co.uk ...
Here’s a question. If China (or any foreign CB) purchases treasury bonds. What currency does it use to do so? US dollars right?
They don’t publicly reveal their loans to individual banks because that sort of information is useful to shortsellers and can also result in bank runs.
Early in Fed history the Treasury held two chairs on the Open Market Committee and while that is no longer the case the Treasury should have access to the Fed’s internal numbers.
Those swaps were all unwound in late 2008, early 2009.
What's not true about that?
All of it. You deposit $1000 into a bank. They loan $900 to me. I default. Was anything of tangible value lost?
Tell me when you go to withdraw your $1000 and they only give you back $100. LOL!
Yes. When foreigners buy dollar denominated debt, they use dollars.
I believe we were talking about fed loans and not mine.
They don’t seem to have as much of a problem generating cash as I would. :)
Were do those dollars come from?
Griffin is talking about commercial bank lending, not Central Bank lending.
The Japanese Central Bank, for example, buys dollars from Japanese corporations.
Did the Fed return the interest earned on those loans to the treasury, less expenses?
Not loans, swaps. And yes.
By law there are a number of things they are prohibited from revealing. Transactions with foreign banks being just one. That kind of makes me wonder why that is.
Cutting to the chase, every dollar of debt issued by treasury has to be purchased with dollars generated (at one time or another) by the Fed then?
Ok, swaps. But I still have to wonder about the law which prohibits the Fed from reveling these transactions - even from the Congress. Is the treasury exempt from the law?
Why? The Fed's balance sheet is about $4 trillion. Treasury debt is about $17 trillion.
What law? Link?
Here is another question: For every dollar (Federal Reserve Note) that the Fed generates, how much does the Fed earn for generating that single dollar note from cradle to grave?
Agree, the rest of the 17T being from various other sources. As you said, must use dollars to purchase the debt - no? Since the Fed has the keys to the printing press, there would be no need for them to acquire dollars. But the Fed buying debt is a "recent" development (i.e. QE).
The remainder though (approximately 13T) was purchased using US dollars?
Upstream at Post #53: http://freerepublic.com/focus/news/3105037/posts?page=53#53
You omit that the critters who inhabit the Fed live a gold plated existence prior to all profits being remitted to the Treasury. That member banks get a yearly dividend of 6% on paid in capital stock
http://www.federalreserve.gov/aboutthefed/section7.htm
Anyways the NY Fed is where it all goes down and the largest American banks have stock in and control that pos. The primary dealer banks control the NY Fed that they do biz with every day
http://www.globalresearch.ca/who-owns-the-federal-reserve/10489
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