Fed to End Relaxed Capital Requirements for Large Banks (Interest Rates to Rise)

The Associated Press ^ | Friday, 19 Mar 2021 11:46 AM | The Associated Press

[usconservative]

Warren’s idea of bolstering community banks is a ‘nice idea’ but that doesn’t solve the currency instability.

Bolstering community banks does NOTHING (as you know) to solve currency instability.

BTW, I don't know where you live, I'm @ 30 miles Southwest of Shitcago. It's been about 20 years or so since I've seen a community bank anywhere.

Even in Michigan's Upper Penninsula, two hours north of Green Bay where my summer home was, the only bank was Wells Fargo! Go figure.

[Hostage]

Thanks PAR35. Nice to have a Freeper knowledgeable of important details.

I support putting the Big 5 or now Big 4 back in their Wall St. pen and ordering them to stay the hell out of Main Street. Need a new improved version of Glass-Steagall.

Seriously, the Central Banking Banks have done nothing for Main Street except spread their greed and chaos close to where we live and work. We don’t need them on Main Street (homes, farms, businesses, families).

Their lame arguments of “Yeah but ... increased liquidity for local markets blah blam blab!” is irritating and stupid. They can take their liquidity and stick it.

“Yeah but your life will be more difficult without us blah blah!”

Life is always difficult, but stable currency and stable markets bring peace and peace breeds prosperity.

Seriously, Main Street America before 1999 was harmed only by stupid Fed policies and oil regulations. Now there’s a new poison in the neighborhoods, Wall St. Capitalization Schemes.

[desertfreedom765]

“Inflation, by the way, cheapens principal as well, you get to pay back the loan with cheaper dollars. “

While that is true for the government, it may or may not be true for working people.

It all depends on whether your pay rate keeps up with inflation. Workers are usually the last to get pay increases. This is one reason why inflation is so bad for the middle class and working people.

[Hostage]

I agree, killing the oil leases is damn near murderous of the US economy.

They moved, they are moving, they will continue to move until we get aware and do something about it.

All eyes are on November 2022 but if we don’t get back Article II state legislature control of our elections, there’s not much that can be done legally.

This is NOT the Democrat Party that is ‘moving’, this is the Marxist Party using mafia tactics.

[usconservative]

The Democrat party is in bed with the Communist Chinese (CCP) ... I prefer to call this what it is, IMO: TREASON.

Hang 'em all, hang 'em high. I'm at the point IDGAF if they're D's or R's. For so many of the R's there ain't a dimes worth of difference!

Before I get any more spun up today, I have to step away. The anger, frustration and everything else is just too much for me today.

Have a great day, keep up the good fight.

[upchuck]

From the Copyright List (https://freerepublic.com/focus/f-news/1111944/posts):

“All material from the Associated Press must be excerpted regardless of source (very brief excerpts).”

At the time this was instituted, I recall a comment by JimRob that AP articles should be held to 150 words or less, a 50% reduction over normal excerpting.

End of conversation as far as I’m concerned.

[PAR35]

Need a new improved version of Glass-Steagall.

I agree completely with that. Although at this point, the Tech oligarchs are probably a bigger threat than the international banksters. They take their marching orders from the same folks anyway.

[Auntie Mame]

I went to the Fed Treasury website and as of 3/10/21, they post the 10-year treasury is 1.45. As of 3/19/21 it’s 1.74.

Can you tell me like I’m five years old what this means? In real world terms, does it mean borrowing money will become more expensive? Will savers get more interest on their savings accounts? What else does this mean? Are there any other examples in past history that can be looked at to get an idea of what this means?

I hope this is not asking too much of you. Thanks.

[GOP Poet]

bookmark

[Hostage]

Ok thanks but we are in fair-use mode. We are not resellers of their news products.

[MeneMeneTekelUpharsin]

I'll tell you what all of this means and bookmark my post. Interest rates are already going up and when they hit a certain point, the ultra rich will put their money into treasuries, bonds and securities that pay that interest because they have too much to lose and will not take that risk.

The money that goes into to those interest-paying securities will come from stocks. So, YOU tell me, what will happen to the stock markets?

[Auntie Mame]

Thanks for responding. Let me see if I have this right.

When interest rates hit a certain point the ultra rich will take their money out of stocks and put in treasuries, etc?

If they take their money out of stocks the market will go down.

Do I have it?

Is it that simple?

[MeneMeneTekelUpharsin]

Basically, yes. Sit there and think of what YOU would do if you have 500 million dollars and it will come to you. You're not about to risk that money in stocks when interest rates are rising. You ONLY want a little return on your money that is as safe as possible.

When interest rates rise, other instruments begin to give a return on the money suitable for such large sums. When interest rates are super low, the return is not suitable. The little guys (like me), take bigger risks TRYING to get a better return, but usually get burned. Yes, it is really that simple.

[Auntie Mame]

Got it. I was trying to make it complicated. It’s not. Thank you very much!

[Hostage]

I don’t think you’re five years old but I understand how these things are made confusing.

Child Version
A bully child sits in a warm room holding many toys stolen from other children in the room. Mean bad evil monster horrible Uncle Fed turns up the heat in the room, so much that the children want to escape but they can’t get out. Bully child feels the heat too and snarls at Uncle Monster. Uncle Evil says the heat must be turned up because Saint Elizabeth said to do it because she doesn’t like bully child.

Bully child sees ice cream and is willing to give back one of the stolen toys to get the ice cream. But the ice cream now costs two stolen toys. The ice cream is melting and bully child offers two stolen toys to get the ice cream before it melts. Bully child eats all the ice cream and shares none of it with the other children.

Good Witch Elizabeth offers to wave a magic wand and open a window for the children to jump out of. The children agree and jump out the open 2nd story window to the concrete ‘Community’ sidewalk below scraping knees and fracturing bones. Meanwhile bully child is enjoying all the ice scream and still has a lot of stolen toys. The other children are in pain from the fall but it’s Ok because somehow Saint Elizabeth will get Creepy “C’mon Man!” Cornpop Joe to visit them and give them kisses on their boo-boos.

Adult Simplified Version:
Elizabeth Warren and other wonderful incredibly bright morons tell Uncle Fed to turn up the heat on its bully banks because these banks are evil (and they truly are). Thank you Elizabeth! You should be President or something!

Economists sit in a cockpit they designed having meters, gages, digital readouts, switches, breakers and levers. They watch the meters and other stuff and they throw out tarot cards claiming they are predicting their next five of two recessions.

Meanwhile Treasury sells ‘paper’ in the form of treasury bonds, 10-yr, 30-yr and other to Uncle Fed’s bully relatives and these bullies get interest payments which they leverage and lend out at higher interest rates to lowly consumers. The Fed’s bully bank relatives also get increased allowances from their Uncle Fed to buy the Treasury’s paper stuff. But because Useful Twit Elizabeth is pushing Uncle Fed to turn up the heat, the bully banks need ‘Fed cash’ (printed or digitized federal reserve notes created from nothing) to get some air conditioning (and to hell with American deplorables and most Americans in general). To get the cash, bully banks will sell their existing treasury paper at a discount and they won’t buy any more Treasury paper unless Treasury pays more in interest. When Treasury pays more interest to sell their funny paper, well ... where they gonna get the extra ‘cash’ to do that? Um ... taxes going up!

How does this scheme continue to survive?

Because the Fed Dollar is the World’s Reserve Top Dog Currency. How/Why is that? Because it’s the Petro Dollar to the World. And that Petro Dollar is controlled by the Bully Banks who want to take over the world and develop it in their image. Sometimes you will hear them called ‘Globalists’. Problem is China’s CCP doesn’t like that plan and they want their paper to be top dog currency and they’re willing to back their paper with GOLD! But Bully JP Morgan shorts the poop out of GOLD to keep it cheap so that the Fed Dollar flies high and is supreme (Note: CCP owns 90% of UBS Zurich which has 11 underground floors filled with gold safekeeping rooms).

So Bully Banks got to keep GOLD cheap and keep the Fed Dollar as the World’s Petro Dollar.

But but but those red state wildcatters fracking away in the Bakken are creating a miracle of energy independent America! Can’t have that because can’t control these redneck white supremacist domestic terrorist deplorables. So bring in the Climate Change Monster to break their pipes and stuff, stiff them and show ‘em who’s boss now.

Now if you are confused by all this, you should be, it’s normal to be in a dizzy about all this. Good advice would be to find a cave to live in outside Obama’s Urban Gulag Archipelago before brilliant liberal idiots do. Take an ice cream maker with you.

For now, the simple takeaway to make your main mantra is “We Are Screwed” and repeat that while enjoying your ice cream.

There is a way out but that is a story for another thread.