Skip to comments.Everything you ‘know’ about the Fed is wrong
Posted on 04/24/2013 12:04:20 PM PDT by Ernest_at_the_Beach
It fixed the plumbing and are now trying to incentivize animal spirits to pump water through the pipes. The debate has now migrated to exit strategies and whether the accumulating side effects of exceptional monetary accommodation outweigh incremental benefits. Read Minyanvilles The Givers and Takers of the Boston Bombings.
(Excerpt) Read more at marketwatch.com ...
The FED was designed by robber barons and rammed down the throat of the government. They caused the depression and now they are making questionable deals. The profits go to world banks. If we did not have the FED our incomes would be at least 15% higher.
“Few would still argue against the assertion that the Federal Reserve has been central to the financial stabilization and economic recovery from the 2008 crisis. “
Extreme smelly bodacious bull Obama.
Those of us who actually have an education argue quite the opposite.
Our current financial condition of non-improvement coupled with the upcoming collapse caused by the future tax rates will prove us correct.
” By Mark Dow “
Ya can’t make this stuff up : )
As some have said here, they cause a collapse, then pump us back up to a worse position and wait for us to keep paying them in perpetuity. Sorta like vampires. It's no where in the Constitution, but there it is anyway.
When Obama says our debt doesn't matter, maybe he's right because we never pay it back, the inflation eats away at our income, and it insures the power elite stay's in power forever. Americans have inflated away almost $5000 a year since Obama was president, yet we don't blame them. If he raises taxes, we gripe, but inflation goes unnoticed. A saver gets nothing for his life savings and begs at the alter of government to bail him out. It's like heroin or something. The only hope is to cut government. Fat chance.
The government didn’t want the Treasury to print money, so a cartel of large private banks established the Fed to create money out of thin air and then lend it to the treasury, who would pay them back with interest with newly borrowed money and taxes.Pretty nice racket.
I wish a trusted/informed Freeper would explain what’s going to happen when the Chinese start to balk at buying US T-bills at .25% interest rates and demand 3.50% or 5.0% instead? Doesn’t this gigantic bubble the Fed has created burst like we’ve never seen before?
What happens to the Fed’s Balance Sheet under those circumstances?
That’s what I worry about.
Here's the argument: by offloading the responsibility of maintaining the value of the currency to a private entity Congress gains a fall-guy for bad/unpopular monetary policy; moreover, conflating the government and private-but-govt-sponsored-business like the Federal Reserve allow for intermingling of business and government (a hybridized fascism) thus increasing the leverage/power of those in the government.
A bunch of stupid red herrings. The Fed is literally printing money (electronically) and giving ti to politicians to spend on some bridges and politically favored projects. That misallocates resources and holds back the economy, The politicians hand out some of the money which creates a bit of inflation which will only get worse. Finally the certainty that the t-bill market will crash means the Fed can’t withdraw which means the dollar can’t be healed which means the economy can’t recover.
The Fed will print more money and buy more themselves.
Yes poor Bush had to sell the debt to China.
In the Era of Baraq, we just transfer it electronically to the Fed.
Presto! So much easier.
Pretty good piece. The sooner people understand that “printing money” does not necessarily always create inflation the better off they will be. The fed has been involved in s supply side monetarist policy and doing exactly what is necessary to fight DE-flation.
Chinese haven’t bought US Treasuries for quite some time. In fact, I believe they’ve been selling for a long time.
Almost all Treasuries are being bought by the Fed, and at pretty much whatever interest rate the US Treasury Department tells them to buy at. As a consequence, the market for bonds in general has been so distorted no one has a clue as to what a bond is really worth or what interest rates should be.
The Fed can’t keep playing this game forever. It’s like a game of musical chairs. Pretty soon when the music stops, there won’t be any chairs to sit in at all.
China’s still buying: