10 Things Every American Should Know About The Federal Reserve

[FaninAma]

BTW, the Federal Reserve and other world central banks are the biggest creditors in the world. They currently own a huge portion of the government debt and mortgage backed debt of most nations around the world. So essentially they weild a tremendous amount of economic power over you, me and our children. Burying your head in the sand doesn't make the situation better.

http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve

[SoonerorLater]

Hey we don't have anything to worry about. Paul Krugman says its all cool and he has a Nobel Prize.

http://krugman.blogs.nytimes.com/2012/10/12/on-the-non-burden-of-debt/

[FaninAma]

Paul Krugman is like any other egomaniacal, self-proclaimed genius. He would rather go down in flames than admit the philosophy that has created his inflated self-image is wrong.

Do you understand the comparison he is trying to make? The most glaring error in his comparison and the Keyensian theory of economics is that they never imagined the excess of voter greed for self-gratification or the political class' greed for control of power that would lead to the vast amount of deficit spending to which their economic model would ultimately lend itself (pun intended).

The only reason the debt isn't crushing us through total currency devaluation and inflation is because the Fed and central banks are artificially keeping interest rates low and because they have help from their member bankers in the markets through price manipulation via the use of vast supplies derviatives.

The upper class will benefit immensley from this system but the lower class will grow more impoverished through wider and wider income gap distribution and increasing stealth inflation(inflation not acknowledged by the government or media.)

The Fed and their government cohorts will attempt to fill this income distribution gap by engaing in income redistribution but as the number of those in poverty increases and inflation erodes the purchasing power of our currency the process will only increase in scope and speed culminating in an apocolyptic debt collapse. We are about 4 to 6 years away at most. 2008 was just a pre-earthquake tremor.

[Chuck Bao]

BTW, the Federal Reserve and other world central banks are the biggest creditors in the world. They currently own a huge portion of the government debt and mortgage backed debt of most nations around the world. So essentially they weild a tremendous amount of economic power over you, me and our children. Burying your head in the sand doesn't make the situation better.

http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve

I don't get the criticism of the US Federal Reserve. That article linked is just so stupid and it didn't take me long to figure that out.

I'm no expert on the workings of the Fed, but I do know something about the central banks in Asia and how they operate. I've arranged countless meetings with senior bankers/economists with the Bank of Thailand for more than 20 years or about half of my life. And, I have never heard such rubbish as mentioned in that article.

In Thailand, the Minister of Finance is political, like the Treasury Secretary in the US, and his/her administration is the foot on the gas pedal. The Bank of Thailand, like the US Federal Reserve, is the brake with the overriding concern being inflation in setting interest rate policy. They wouldn't ever be enticed out to give comentary about deficit spending because that is in the political sphere (go back and blame your reps in Washington.

It is just too funny that some people with nefarious agendas want to say that the US Fed are againsts a free market in some way. It is only a little more acceptable that some poeple are blaming the Fed for low interest rates, although I still don't buy into the rants because, oh yeah, our economic environment is appropriately timed for an interest rate reversal. [alice in wonderland].

[SicEmBaylor]

It's a criminal syndicate. End of story.

[FaninAma]

I don't get the criticism of the US Federal Reserve. That article linked is just so stupid and it didn't take me long to figure that out.

I'm no expert on the workings of the Fed, but I do know something about the central banks in Asia and how they operate. I've arranged countless meetings with senior bankers/economists with the Bank of Thailand for more than 20 years or about half of my life. And, I have never heard such rubbish as mentioned in that article.

In Thailand, the Minister of Finance is political, like the

Treasury Secretary in the US, and his/her administration is the foot on the gas pedal. The Bank of Thailand, like the US Federal Reserve, is the brake with the overriding concern being inflation in setting interest rate policy. They wouldn't ever be enticed out to give comentary about deficit
spending because that is in the political sphere (go back and blame your reps in Washington.

It is just too funny that some people with nefarious agendas want to say that the US Fed are againsts a free
market in some way. It is only a little more acceptable that some

poeple are blaming the Fed for low interest rates, although I still don't buy into the rants because, oh yeah, our economic environment is appropriately timed for an interest rate reversal. [alice in wonderland].

Chuck, I wouldn't expect you to bite the hand that feeds you.

What interest rate reversal are you talking about? The Fed has already stated interest rates will remain low until at least 2015?

So you think it is a good thing that the Federal reserve will have balance sheet assets equal to 40+ % of the GDP by 2015? silly me, I had always been taught that monopolies that control this much of our economic system were bad. Somebody rewrite the history books
and tell Standard Oil and AT&T we were wrong about them.

And can you comment about the havoc the Federal Reserve policy is doing to the value of our currency as well as savers and those on fixed incomes?

And you are the one that is stupid if you buy into the Fed
propaganda that inflation is under control. Please don't tell me you think that deficit spending funded by the Fed and other central banks is a good thing? Are you really so brianwashed that you think prosperity is created by devaluing the nation's currency and living on an endless supply of credit?

Watch what happens to Japan and the value of the Yen in 2013. It is about to get ugly. In fact we are seeing the beginning of a global currency war that will make the trade wars of early 1930's look like a slap fight.

[SoonerorLater]

Paul Krugman is like any other egomaniacal, self-proclaimed genius. He would rather go down in flames than admit the philosophy that has created his inflated self-image is wrong.

Do you understand the comparison he is trying to make? The most glaring error in his comparison and the Keyensian theory of economics is that they never imagined the excess of voter greed for self-gratification or the political class' greed for control of power that would lead to the vast amount of deficit spending to which their economic model would ultimately lend itself (pun intended).

The only reason the debt isn't crushing us through total currency devaluation and inflation is because the Fed and central banks are artificially keeping interest rates low and because they have help from their member bankers in the markets through price manipulation via the use of vast supplies derviatives.

The upper class will benefit immensley from this system but the lower class will grow more impoverished through wider and wider income gap distribution and increasing stealth inflation(inflation not acknowledged by the government or media.)

The Fed and their government cohorts will attempt to fill this income distribution gap by engaing in income redistribution but as the number of those in poverty increases and inflation erodes the purchasing power of our currency the process will only increase in scope and speed culminating in an apocolyptic debt collapse. We are about 4 to 6 years away at most. 2008 was just a pre-earthquake tremor.

I thought the sarcasm was apparent but I should know well by now it doesn't always translate to the written word very well. Krugman is a partisan hack.

[FaninAma]

I thought the sarcasm was apparent but I should know well by now it doesn't always translate to the written word very well. Krugman is a partisan hack.

I knew you were being sarcastic but I took the opportunity to opine about that blowhard Krugman. I bet he has never ran a business or done anything but pontificate from atop his ivory tower.

[SoonerorLater]

If I could rid this country of only one entity public or private, it would absolutely, positively, in a landslide, be the Federal Reserve. How anybody in their right mind would think turning a monopolistic money creating franchise over to a private club of corrupt financiers is a good idea is beyond comprehension. This country will never be free again until we are rid of these parasites.

[FaninAma]

It appears that multi-naionals are now using the fed monopoly money to issue their own low-intereest corporate bonds hurting fixed income earners and pensioners even more. Bernanke is a Robin Hood in reverse:
http://finance.yahoo.com/blogs/the-exchange/bernanke-easy-money-moves-crucial-reality-162336906.html

I really think the low interest rate environment is a huge obstacle to the Fed's goal of reinflating the economy. The prolonged low interest rate policy has killed the income of those who invest heavily in bonds and money market instruments/CD's(retired people) . This group is usually the most prosperous segment of our society and tend to spend the profits from their interest bearing investments. Well, there has been no interest so now they are cannibalizing their original capital just to pay bills. This policy also encourages banks(all of whom are now in the investment business) to avoid making loans which pay a crappy rate of interest and instead encourages them to plough it into the stock market.

I think we will look back at this current Fed policy and wonder what the F* they were thinking.

[SoonerorLater]

It appears that multi-naionals are now using the fed monopoly money to issue their own low-intereest corporate bonds hurting fixed income earners and pensioners even more. Bernanke is a Robin Hood in reverse:
http://finance.yahoo.com/blogs/the-exchange/bernanke-easy-money-moves-crucial-reality-162336906.html

I really think the low interest rate environment is a huge obstacle to the Fed's goal of reinflating the economy. The prolonged low interest rate policy has killed the income of those who invest heavily in bonds and money market instruments/CD's(retired people) . This group is usually the most prosperous segment of our society and tend to spend the profits from their interest bearing investments. Well, there has been no interest so now they are cannibalizing their original capital just to pay bills. This policy also encourages banks(all of whom are now in the investment business) to avoid making loans which pay a crappy rate of interest and instead encourages them to plough it into the stock market.

I think we will look back at this current Fed policy and wonder what the F* they were thinking.

I knew I shouldn't have responded to this thread. The Federal Reserve gets my blood boiling like not much else politically speaking. IMO the Fed interest rate policy at this point isn't about anything other than trying to obfuscate the insolvency of the American Banking System. Delay, delay delay and hope for a Hail Mary re-inflation of overpriced and near worthless assets. If the lifetime savings of working Americans are wiped out in the process then so be it.

Yet we look to these same thieves to right the economic ship. The Fed has opened the lifeboats for the banker class. Everybody else....well you are on your own.

[FaninAma]

I knew I shouldn't have responded to this thread. The Federal Reserve gets my blood boiling like not much else politically speaking. IMO the Fed interest rate policy at this point isn't about anything other than trying to obfuscate the insolvency of the American Banking System. Delay, delay delay and hope for a Hail Mary re-inflation of overpriced and near worthless assets. If the lifetime savings of working Americans are wiped out in the process then so be it.

Yet we look to these same thieves to right the economic ship. The Fed has opened the lifeboats for the banker class. Everybody else....well you are on your own.

Agreed. But at the rate the Fed is purchasing public and private debt instruments they will never be unable to unwind their positions unless they do it at a discount which will again place a tremendous ampount of deflationary pressure on those assets. Anybody remember the good ol' days during Nixon's first term? I think we are already seeing a return of stagflation.....stagnation of ceretain asset classes like bonds/treasuries as well as labor wages coupled with inflation of vital commodities like energy and food.

The supposed improvement in the housing market is nothing but a dead cat bounce. Once the speculators are through buying properties for the purpose of renting them the prices will again trend down.

Instead of allowing all of the deadwood to be cleared out and a new economic spring to occur the Fed has engaged in policies that insure no real economic growth will take place for decades.

[radio]

It's a criminal syndicate. End of story.

Remember when Greenspan got the Enron Award for Distinguished Public Service?

[MR2-Sooner86]

Before the Fed the value of the dollar grew by 8%. Since the Fed's creation it has fallen over 90%.

CENTRAL PLANNING FTW!!!

[Bourbon St Sooner]

Chuck, I wouldn't expect you to bite the hand that feeds you.

What interest rate reversal are you talking about? The Fed has already stated interest rates will remain low until at least 2015?

So you think it is a good thing that the Federal reserve will have balance sheet assets equal to 40+ % of the GDP by 2015? silly me, I had always been taught that monopolies that control this much of our economic system were bad. Somebody rewrite the history books
and tell Standard Oil and AT&T we were wrong about them.

And can you comment about the havoc the Federal Reserve policy is doing to the value of our currency as well as savers and those on fixed incomes?

And you are the one that is stupid if you buy into the Fed
propaganda that inflation is under control. Please don't tell me you think that deficit spending funded by the Fed and other central banks is a good thing? Are you really so brianwashed that you think prosperity is created by devaluing the nation's currency and living on an endless supply of credit?

Watch what happens to Japan and the value of the Yen in 2013. It is about to get ugly. In fact we are seeing the beginning of a global currency war that will make the trade wars of early 1930's look like a slap fight.

Funny how the media only reports that CORE inflation number the excludes energy and food prices. Yeah, those big screen tv's are getting cheaper but who cares when you can't afford to feed your family any more.

Maybe this is the final great move of the liberal elite to consolidate public dependence on them. The middle class stagnates and gets squeezed by creeping commodity inflation. The political elites blame everything on the bankers and bring everybody into their trap of gov't dependency. The bankers don't care as long as the Fed money machine remains cranked up. This is the new grand bargain to control the masses.