Posted on 05/09/2021 7:03:48 PM PDT by TexasKamaAina
“The real story here is the tension—if not the glaring contradiction—of the Fed’s pursuit of quantitative easing (QE), the aim of which is to lower long-term rates and encourage reach for yield, and their concern that people are indeed reaching for yield,” he told Bloomberg.
The tension arises from the fact that while the stated intention of the ultra-low interest rate regime is to promote greater risk-taking through investment in the real economy—the financing of productive activity, real investment in plant, equipment and technology—the vast bulk of the money is being used to fund speculation in increasingly risky financial assets.
(Excerpt) Read more at wsws.org ...
Isn’t The Fed supposed to be large and in charge of developing and maintaining a stable Financial System for the country?
BiXiden has chosen poorly?
“Isn’t The Fed supposed to be large and in charge of developing and maintaining a stable Financial System for the country?”
No, that was never ever the purpose of the Bankers in the Exclusive Federal Reserve Club.
the financing of productive activity, real investment in plant, equipment and technology—the vast bulk of the money is being used to fund speculation in increasingly risky financial assets.
The Fed is right on top of it aren’t they? We’ve been talking about this since 1997, something about “irrational exuberance”.
One day the money will be turned off. That’s as bad as any WMD.
In the period 1904 to 1907 there was a stock market boom followed by a bust.
Financier JP Morgan was asked to bail the system out. He refused to cough up his money.
The Federal Reserve was created to create easy money so Wall Street (and overly indebted farmers) wouldn’t have to financially stomach those nasty things called busts, hopefully.
Now busts are less frequent, but bigger.
Actually, Morgan did a pretty job of coughing up money(and getting others to do so):
https://en.wikipedia.org/wiki/Panic_of_1907
“I’m shocked, shocked to find that gambling is going on in here!”
Captain Renault in “Casablanca”
Knickerbocker Trust Company
“In 1907, its funds were being used by then-president Charles T. Barney in a plan to drive up the cost of copper by cornering the market. This gamble came undone due to the dumping of millions of dollars in copper into the market to stop a hostile takeover in an unrelated organization. Barney requested a meeting with J.P. Morgan to discuss financial assistance for the bank, but was rejected. The board of Knickerbocker Trust asked Barney to resign after he admitted involvement in the Morse speculations. That afternoon, the National Bank of Commerce announced it would no longer clear checks for the Knickerbocker, triggering a run of depositors demanding their funds back that forced the Knickerbocker to suspend operations....The failure of the Knickerbocker was the keystone of the Panic of 1907, and exacerbated an ongoing decline in the stock market that saw the Dow Jones Industrial Average lose 48% of its value from January 1906 to November 1907. The banking crisis is also seen as the final straw that led Congress to form the Federal Reserve System in 1913.”
https://en.wikipedia.org/wiki/Knickerbocker_Trust_Company
Long ago I listened to a book review on "The Creature from Jekyll Island" about the establishment of the Federal Reserve. The author said when you hear the words "Federal Reserve" substitute "Banking Cartel" and you'll have a pretty good idea what they're about.
Yeah, the Fed’s monetary policy is a major vulnerability. It’s only matched in danger by Congress’s fiscal policy.
They are both major vulnerabilities, but this is not news to anyone with half a brain.
Instead of any more QE, how about a LOT more of QFS.
bookmark
I read, years ago, an article that claimed that world governments had used up most of the tools they had to combat the 2008 crash.
Admittedly, I don’t know if that’s still true or relevant today with the current situation.
[Long ago I listened to a book review on “The Creature from Jekyll Island” about the establishment of the Federal Reserve. The author said when you hear the words “Federal Reserve” substitute “Banking Cartel” and you’ll have a pretty good idea what they’re about.]
Heh, I remember someone once said they were neither “Federal” nor “Reserve”. It’s certainly staffed with a lot of federal employees, though.
Value
What is value.
Performing asset(s)
MBS CDO
Buy-afford
Capital formation-Employment
Dislocations. Territory monetary value.
Turnip effect: 0 down 60 month.
Trading Collar. MBS CDO Bailout TARP
“Reserve”
Socialized Bailout
RICO
I think these type articles dribble out on purpose....AFAIAC, the QFS is movingn into place, and there will be a general currency reset .......once money once again actually means something, with gold backing, many or our financial/monetary problems will be limited....at least I hope so....
Not even that!
It's a private corporation run by a small handful of "bankster cartel" families (Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs; the Rothschilds; Warburgs; Lazards; Israel Moses Seifs). The "chairman" of the FED corporation is on the surface chosen by POTUS, but in actuality, POTUS is given a short list by those families that the POTUS must choose from.
For a really fun time, look up the Grace Commission (under Reagan, 1984). "Not one dime of IRS money goes to the US Gov't" - the IRS collects 1040 money and sends almost all of it to the FED owner families and a few hundred FED shareholders. The rest? To the IRS employees, itself chartered in Puerto Rico.
If you can fathom that, your next project is: "Then, where does the Federal Government get all its money". Enjoy!
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