Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

The "Independent" Fed Admits The Truth
The Market Ticker ^ | 1/22/2011 | Karl Denninger

Posted on 01/23/2011 7:21:37 AM PST by FromLori

It is not independent, it is an arm of Treasury.

Everything you were told was a scam and a lie - yet another time for

But the new rules have slowly begun to catch the attention of market analysts. Many are at once surprised that the Fed can set its own guidelines, and also relieved that the remote but dangerous possibility that the world's most powerful central bank might need to ask the U.S. Treasury or its member banks for money is now more likely to be averted.

The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability.

Got it?

Independent monetary authority my ass.

Function follows form. Anyone who believes that The Fed is independent after this charade, which incidentally it did on its own (and that, by itself, is cute - The Fed's "balance sheets" would never have passed examination under GAAP) has rocks in their head.

The simple fact of the matter is this - The Fed is out of bullets and they know it. They've driven rates to zero but still can't get beyond the premium demanded for loans, and the fact that cash flow is insufficient to meet service requirements. This is why the shift has taken place to the Government, which (thus far) has been able to keep borrowing and borrowing, since nobody is (yet) questioning whether the government will be able to meet the cash flow.

The key there is "yet."

Treasury, for its part, is worried too. They should be.

In his January 6, 2011 letter urging that Congress act to protect America’s creditworthiness by increasing the statutory debt limit, Secretary Geithner made clear that any default on legal debt obligations of the U.S. would be unthinkable. In response, Members of Congress of both parties have indicated agreement that the United States must honor its obligations. However, Treasury disagrees with suggestions by some that Congress could somehow evade this responsibility by passing legislation to “prioritize” payments on the national debt above other legal obligations of the United States.

Uh huh.

Guess what Timmy? Most of what The United States spends money on is not a legal obligation.

Oh sure, some of it is. Salaries for our servicemembers, for example. They worked, they're owed. Legally. That's a legal obligation. Debt service (interest) is a legal obligation.

Social Security and Medicare are not. Nor are farm subsidies, Department of Education meddling, and, incidentally, while your salary Timmy is for work you've already done, Congress can de-fund your position and reduce your salary for future work to one penny.

If they did, you'd be overpaid.

The simple solution to the "Debt Ceiling" is to spend only what you take in via taxes.

That means no more debt is required.

And yes, I'm well-aware that it also means a 43% (roughly) immediate cut in Federal Spending.

I assert that such a cut can be made without impinging on one dollar of actual legal obligation of The United States.

Stop lying Neal, and tell your boss Timmy that we know he's lying too.


TOPICS: Business/Economy
KEYWORDS: debt; denninger; fed; interest; printing; ticker
Navigation: use the links below to view more comments.
first 1-5051-100101-118 next last

1 posted on 01/23/2011 7:21:42 AM PST by FromLori
[ Post Reply | Private Reply | View Replies]

To: FromLori

Related thread

Accounting Tweak Could Save Fed From Losses

http://www.freerepublic.com/focus/f-news/2661476/posts

Related story

Treasury: Proposals to “Prioritize” Payments on U.S. Debt Not Workable; Would Not Prevent Default

http://www.treasury.gov/connect/blog/Pages/Proposals-to-Prioritize-Payments-on-US-Debt-Not-Workable-Would-Not-Prevent-Default.aspx

Related comment

“Negative interest owed to Treasury” means losses owed to FED by Joe Taxpayer. Thank you Hanky Panky Bernanke!”


2 posted on 01/23/2011 7:24:37 AM PST by FromLori (FromLori">)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori
It is not independent, it is an arm of Treasury.

It's not privately owned? LOL!

3 posted on 01/23/2011 8:14:11 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori
The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability.

It's an excellent solution.

4 posted on 01/23/2011 8:17:14 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Toddsterpatriot

I’m sure they’ll get right on it!


5 posted on 01/23/2011 8:37:01 AM PST by PSYCHO-FREEP (Patriotic by Proxy! (Cause I'm a nutcase and it's someone Else's' fault!....))
[ Post Reply | Private Reply | To 4 | View Replies]

To: PSYCHO-FREEP

Get right on what?


6 posted on 01/23/2011 8:54:56 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: FromLori

This was written before this news came out.

Prescient.

“The theme here is simple enough: If and whenever the circumstances justify a major response, existing rules will be changed, altered, bent, or broken.”
http://www.chrismartenson.com/blog/dont-worry-theyll-just-change-rules/50568

We have entered an Age of Lawlessness.
Bailouts for them, major losses for all the rest of us. Period.


7 posted on 01/23/2011 9:30:57 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TruthConquers
Thanks for the link. Just a few problems with it.

But big banks? They get a free pass to go along with free money

Free money? The TARP wasn't free. Neither are loans from the Fed.

I would absolutely love the opportunity to borrow money from the government at a low rate and lend it back to the government at a higher rate, but that program is not available to me.

Which program do you (or Chris) imagine allows a bank to do that?

Small, regional banks without access to unlimited and essentially free capital from the Fed are now forced to compete with big national banks that have been granted an unlimited backstop by the Fed.

Free capital from the Fed? I think he's a bit confused about what capital means.

8 posted on 01/23/2011 9:59:38 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Toddsterpatriot

Oh, the pro bank troll.

Let’s see. You ask questions, nit pick the answers and then you LOL.

Here is my question to you, before I will even pretend to answer your questions.

Do you deny that the tax payers are going to pay for TARP?


9 posted on 01/23/2011 10:07:04 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 8 | View Replies]

To: FromLori
Paging Ron Paul.
10 posted on 01/23/2011 10:08:17 AM PST by mad_as_he$$ (V for Vendetta.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TruthConquers
You ask questions, nit pick the answers and then you LOL

It's true, when I see nonsensical claims, I try to get the claims clarified. When the poster can't or won't answer and squeals about it, I often have to laugh at them.

Do you deny that the tax payers are going to pay for TARP?

The TARP is a Treasury program. The funds used were borrowed. If the TARP is not fully repaid, the losses will have to be covered by the tax payers.

11 posted on 01/23/2011 10:11:53 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: FromLori
The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability.

And what if the "future profits" fail to equal the liability? How many seats are left in this game of musical chairs? Look in the mirror to see who pays.

12 posted on 01/23/2011 10:17:16 AM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oatka
And what if the "future profits" fail to equal the liability?

They keep allocating profits until it does.

13 posted on 01/23/2011 10:22:09 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Toddsterpatriot

“The funds used were borrowed.”

BUT those funds were borrowed under fraudulent lies.
AND taxpayers WILL be expected to pay for it.

The FED is changing the rules for themselves and others to profit from this whole scheme.
The rest of us and our children will be paying for it.
There will be trouble when the sheeple wake up.

As to your questions you posted, I only posted a link.
I am not going to play that game with you.


14 posted on 01/23/2011 10:25:55 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Toddsterpatriot
And what if the "future profits" fail to equal the liability?
They keep allocating profits until it does.

What is the time frame? The probability is that they never catch up. I hope your point is the same as mine - never.

15 posted on 01/23/2011 10:27:01 AM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Oatka

“And what if the “future profits” fail to equal the liability? How many seats are left in this game of musical chairs?”

The FED is going to win at the cost of the rest of us. Period. Laws, rules and rule of law be damned.

“Look in the mirror to see who pays.”
You have got that right.

The laws of physics don’t apply anymore, Scottie. /s


16 posted on 01/23/2011 10:30:17 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 12 | View Replies]

To: TruthConquers
BUT those funds were borrowed under fraudulent lies.

Really?

AND taxpayers WILL be expected to pay for it.

Yes, if the TARP isn't repaid, taxpayers are on the hook.

As to your questions you posted, I only posted a link.

Yes and I only posted some of the things the author was wrong or confused about.

I am not going to play that game with you.

I didn't expect you to contribute to the discussion.

17 posted on 01/23/2011 10:30:43 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Oatka
What is the time frame?

Explain why it matters.

The probability is that they never catch up.

Catch up to what?

18 posted on 01/23/2011 10:31:40 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Toddsterpatriot

“I didn’t expect you to contribute to the discussion.”

Hahahahahaha!

And neither did you.


19 posted on 01/23/2011 10:33:05 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 17 | View Replies]

To: Toddsterpatriot
A liability to the Treasury? Shouldn't that say "a liability to the US taxpayer"? That's what it is after all.

More "privatize any profits, socialize any losses". I can't wait to see these Central Bankers dancing at the end of ropes.

20 posted on 01/23/2011 10:34:02 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Lurker
More "privatize any profits, socialize any losses".

The Fed just privatized $78.4 billion of profits to the Treasury last year. Bastards!

21 posted on 01/23/2011 10:38:19 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Toddsterpatriot
The Fed just privatized $78.4 billion of profits to the Treasury last year. Bastards!

Then why are they talking about transferring liabilities to the US taxpayer in the future? I don't give a crap what they did last year. Why do they feel the need to do this this year?

22 posted on 01/23/2011 10:40:18 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Lurker
Then why are they talking about transferring liabilities to the US taxpayer in the future?

If interest rates rise, the value of long dated bonds falls. If the Fed has to "mark to market" their positions, but still pass along all interest to the Treasury, their capital will be reduced.

I don't give a crap what they did last year.

You mean when they didn't privatize a gain and socialize a loss.

23 posted on 01/23/2011 10:45:59 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Toddsterpatriot

“The Fed just privatized $78.4 billion of profits to the Treasury last year.”

But they are liars!!!! Enron accounting tricks at the FED. The whole country has been ENRONIZED

“May 6, 2010, the day of the flash crash, the New York Stock Exchange stepped in and arbitrarily drew a line above and below which trades that day were ‘broken’ or canceled (effectively treating them as if they had never happened). The move to break trades was historically unprecedented. “

They are going to continue of break the LAW until they are either stopped or they are d**d.


24 posted on 01/23/2011 10:48:22 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Toddsterpatriot
If interest rates rise, the value of long dated bonds falls. If the Fed has to "mark to market" their positions, but still pass along all interest to the Treasury, their capital will be reduced.

That would be too bad. It would be shocking, shocking I tell you, to expect a private institution like the Fed to be treated like any other investor.

Most everybody else has to 'mark to market' their positions. If it's good enough for everybody else, it's good enough for the Fed.

25 posted on 01/23/2011 10:50:52 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: TruthConquers
But they are liars!!!!

How's that?

Enron accounting tricks at the FED.

Enron fabricated earnings. How is the Fed doing that? Why would they?

The move to break trades was historically unprecedented

I don't think that's true. But so what? The flash crash was historically unprecedented as well.

They are going to continue of break the LAW

What law was broken when the trades were canceled?

26 posted on 01/23/2011 10:53:29 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 24 | View Replies]

To: Lurker
Hush!

You're supposed to agree! All is great and fantastic under the Obama Administration's handling of this economy. The Bailouts were brilliant! The Fed is making a “profit” for us, although greatly lacking evidence and facts!

Never mind that the Fed gave 5 Trillion Dollars to foreign Banks a year and a half ago without Congress. (That we will never see dime of again.) Never mind that the Fed also gave out 3.3 Trillion dollars secretly to US Corporations, and some of that “78.4 billion” supposedly being paid back comes from those secret loans. (At .05% interest.)

Never mind that you are completely wasting your time talking to trolls with one track minds. Rule #1. The Troll is ALWAYS right! Rule #2., If the Troll is proven wrong, refer back to rule number 1!

27 posted on 01/23/2011 10:55:17 AM PST by PSYCHO-FREEP (Patriotic by Proxy! (Cause I'm a nutcase and it's someone Else's' fault!....))
[ Post Reply | Private Reply | To 22 | View Replies]

To: Lurker
It would be shocking, shocking I tell you, to expect a private institution like the Fed to be treated like any other investor.

The Fed isn't a private institution.

Most everybody else has to 'mark to market' their positions. If it's good enough for everybody else, it's good enough for the Fed.

They should mark their gold at the market price. $350 billion instead of $11 billion.

28 posted on 01/23/2011 10:56:31 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: PSYCHO-FREEP
Never mind that the Fed gave 5 Trillion Dollars to foreign Banks a year and a half ago without Congress. (That we will never see dime of again.)

The Fed didn't give money to foreign banks. They swapped dollars for foreign currencies. The swaps were unwound (the Fed got the dollars back and returned the foreign currency) profitably.

29 posted on 01/23/2011 10:59:02 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: TruthConquers

Thanks and for those who don’t get it this is what it means

” the Fed has changed the rules and any losses by the Federal Reserve banks can be denoted as liabilities on THE TREASURY!”


30 posted on 01/23/2011 11:01:23 AM PST by FromLori (FromLori">)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Toddsterpatriot

Wikileaks says otherwise...


31 posted on 01/23/2011 11:01:48 AM PST by Minus_The_Bear
[ Post Reply | Private Reply | To 29 | View Replies]

To: Toddsterpatriot

So, if the Fed is so “Profitable” and competent as you say, then why is there a 14.3 Trillion Dollar deficit and why have they monetized our currency?

Oh, I forgot, refer back to rule #1.


32 posted on 01/23/2011 11:03:28 AM PST by PSYCHO-FREEP (Patriotic by Proxy! (Cause I'm a nutcase and it's someone Else's' fault!....))
[ Post Reply | Private Reply | To 29 | View Replies]

To: Minus_The_Bear

Show me...


33 posted on 01/23/2011 11:06:40 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 31 | View Replies]

To: PSYCHO-FREEP
So, if the Fed is so “Profitable” and competent as you say, then why is there a 14.3 Trillion Dollar deficit

Congress spends more than $78 billion will cover.

why have they monetized our currency?

Why have they turned our currency into money?

Oh, I forgot, refer back to rule #1.

That must be the one that shows you don't know what you're talking about.

34 posted on 01/23/2011 11:09:09 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 32 | View Replies]

To: Toddsterpatriot

You’re right, feeding the Trolls is a pointless waste of time. Expect no further responses from me.

All the proof of what I am saying is already material evidence known as the US economy and the Dollar. It’s out there, up front and center for everyone to physically see. No further need to support the facts. They speak for themselves no matter how Trolls like you try to spin them.

One thing for sure, It’s a sure win to do the very opposite of what every you say.


35 posted on 01/23/2011 11:16:52 AM PST by PSYCHO-FREEP (Patriotic by Proxy! (Cause I'm a nutcase and it's someone Else's' fault!....))
[ Post Reply | Private Reply | To 34 | View Replies]

To: Toddsterpatriot
What is the time frame?
Explain why it matters.

Well, at some point, the world's financial community says, "Hey, the Emperor has no clothes!"

The probability is that they never catch up.
Catch up to what?

The liabilities keep growing faster than the "future profits", leading to the exclamation above.

36 posted on 01/23/2011 11:18:59 AM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
[ Post Reply | Private Reply | To 18 | View Replies]

To: PSYCHO-FREEP
You’re right, feeding the Trolls is a pointless waste of time.

So is trying to correct idiots.

Expect no further responses from me.

Run away.

37 posted on 01/23/2011 11:26:14 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 35 | View Replies]

To: Oatka
The liabilities keep growing faster than the "future profits", leading to the exclamation above.

If the Fed remits zero to the Treasury and ends the year with $50 billion in mark downs, why does it matter?

38 posted on 01/23/2011 11:27:58 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: Toddsterpatriot
The Fed isn't a private institution.

In post 3 you said it is. Which is it? Can I buy stock in it?

39 posted on 01/23/2011 11:33:30 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Lurker
In post 3 you said it is.

No I didn't.

Can I buy stock in it?

No.

40 posted on 01/23/2011 11:34:40 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 39 | View Replies]

To: Toddsterpatriot
No I didn't.

You certainly implied that it is. So which is it, Skippy? Is the Fed a privately owned institution?

41 posted on 01/23/2011 11:37:04 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 40 | View Replies]

To: Toddsterpatriot

“But they are liars!!!! “ So, you want to know how’s that?

So, was Hank Paulson TELLING THE TRUTH when he CLAIMED that their would be martial law if TARP wasn’t passed?

Was he? Why would that be?? Hmmmm??????


42 posted on 01/23/2011 11:39:27 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 26 | View Replies]

To: PSYCHO-FREEP

“It’s a sure win to do the very opposite of what every you say.”

BINGO!!!!!


43 posted on 01/23/2011 11:40:59 AM PST by TruthConquers (Delendae sunt publicae scholae)
[ Post Reply | Private Reply | To 35 | View Replies]

To: Lurker
Is the Fed a privately owned institution?

Post #28.

44 posted on 01/23/2011 1:11:30 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 41 | View Replies]

To: TruthConquers
So, was Hank Paulson TELLING THE TRUTH when he CLAIMED that their would be martial law if TARP wasn’t passed?

I can't predict the future.

45 posted on 01/23/2011 1:15:26 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 42 | View Replies]

To: Bullish; CJ Wolf; houeto; Quix; B4Ranch; Whenifhow; Silentgypsy; blam; FromLori; Lurker; ...
Fed-to-define-debt-as-asset-and-up-as-down ping.

"Economic Holocaust" ping.

Increasing volume ping list watching the slow motion Economic Holocaust.

FReepmail me if you want on or off
The Comedian's "Economic Holocaust" ping list...


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

46 posted on 01/23/2011 1:35:00 PM PST by The Comedian ("Extremism in the defense of liberty is no vice" - B. Goldwater)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Toddsterpatriot; Lurker
The Fed isn't a private institution.

Oh? What would you call it?


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

47 posted on 01/23/2011 1:47:51 PM PST by The Comedian ("Extremism in the defense of liberty is no vice" - B. Goldwater)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Toddsterpatriot

How much gold do they have? Where do they keep it?


48 posted on 01/23/2011 2:00:58 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 44 | View Replies]

To: The Comedian

The Federal Reserve Banks have an intermediate legal status, with some features of private corporations and some features of public federal agencies. The United States has an interest in the Federal Reserve Banks as tax-exempt federally-created instrumentalities whose profits belong to the federal government, but this interest is not proprietary.[73] Each member bank (commercial banks in the Federal Reserve district) owns a nonnegotiable share of stock in its regional Federal Reserve Bank. However, holding Federal Reserve Bank stock is unlike owning stock in a publicly traded company. The charter of each Federal Reserve Bank is established by law and cannot be altered by the member banks. Federal Reserve Bank stock cannot be sold or traded, and member banks do not control the Federal Reserve Bank as a result of owning this stock. They do, however, elect six of the nine members of the Federal Reserve Banks’ boards of directors.[38] In Lewis v. United States,[74] the United States Court of Appeals for the Ninth Circuit stated that: “The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations.” The opinion went on to say, however, that: “The Reserve Banks have properly been held to be federal instrumentalities for some purposes.” Another relevant decision is Scott v. Federal Reserve Bank of Kansas City,[73] in which the distinction is made between Federal Reserve Banks, which are federally-created instrumentalities, and the Board of Governors, which is a federal agency.

So it’s not public, it’s not private, and Congress has only nominal control over it at best.

What could possibly go wrong?


49 posted on 01/23/2011 2:10:58 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 47 | View Replies]

To: Toddsterpatriot
If the Fed remits zero to the Treasury and ends the year with $50 billion in mark downs, why does it matter?

Maybe I'm off, but isn't the debt that much higher? Somebody has to pay it off if the fed doesn't. Wouldn't that debt, and the prospect of more to come turn off foreign investors?

50 posted on 01/23/2011 2:20:37 PM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
[ Post Reply | Private Reply | To 38 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-100101-118 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson