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What happens to the Fed's liabilities?
How does it make sense for the Treasury to hold Treasuries?
Like I said the Fed's liabilities aren't real liabilities.
According to who?
According to the fact that outstanding Federal Reserve Notes are paid back to the bearer with... Federal Reserve Notes. IOUs paid back with IOUs.
Yet I can exchange it in the economy for goods and services, so clearly it exists.
Correct but that's neither here nor there; we're talking about the US gov's repayment obligations in regards to outstanding USDs not the value of USDs as a medium of exchange.
The bulk of the remaining liabilities are written off with the MBS assets just as easily as they were created out of thin air.
The Treasury would hold Treasuries in reserve so that they can sell them in times of emergency e.g; if we had to engage in a legitimate war.
The Treasury can't "hold" Treasuries anymore than you can hold a debt to yourself.
The Treasury has the sovereign authority to do whatever it wants with its own debt securities.
Like I said the Fed's liabilities aren't real liabilities.
According to who?
According to the fact that outstanding Federal Reserve Notes are paid back to the bearer with... Federal Reserve Notes. IOUs paid back with IOUs.
Yet I can exchange it in the economy for goods and services, so clearly it exists.
Correct but that's neither here nor there; we're talking about the US gov's repayment obligations in regards to outstanding USDs not the value of USDs as a medium of exchange.
The Treasury would hold Treasuries in reserve so that they can sell them in times of emergency e.g; if we had to engage in a legitimate war.
The Treasury can't "hold" Treasuries anymore than you can hold a debt to yourself.
The Treasury has the sovereign authority to do whatever it wants with its own debt securities.
I understand that these aren't the easiest concepts to wrap your head around. It's even harder trying to explain them. This is a really good essay that might help to put things in the proper perspective:
Why China must buy US Treasuries with her Trade Surplus Dollars
Face it....You have neither common sense nor any fucking idea what you're babbling about.
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Please enlighten us as to how the profits of the Fed can pay off the debt when the Fed makes less money per year than the U.S. rings up in deficit.
it would appear to violate basic arithmetic, so please, explain (I know you can't, but I'm asking anyway).
Being anti-Fed has taken on the status of religion, like global warming to the Left or something. If you don't support their bizarre theories then you are either stupid or "one of them."
Please enlighten us as to how the profits of the Fed can pay off the debt when the Fed makes less money per year than the U.S. rings up in deficit.
it would appear to violate basic arithmetic, so please, explain (I know you can't, but I'm asking anyway).
Being anti-Fed has taken on the status of religion, like global warming to the Left or something. If you don't support their bizarre theories then you are either stupid or "one of them."
Mr Dumb Ass, Sir:
Could it be because centralized planning don't work? Could it be because we hate depressions? Could it because we hate uncertainty?
.
Being anti-Fed has taken on the status of religion, like global warming to the Left or something. If you don't support their bizarre theories then you are either stupid or "one of them."
Mr Dumb Ass, Sir:
Could it be because centralized planning don't work? Could it be because we hate depressions? Could it because we hate uncertainty?
.
There were depressions before the Federal Reserve.
Mr Dumb Ass, Sir:
Could it be because centralized planning don't work? Could it be because we hate depressions? Could it because we hate uncertainty?
.
There were depressions before the Federal Reserve.
There were limited depressions all of them related to federal involvement in the economy.
.
There were depressions before the Federal Reserve.
There were limited depressions all of them related to federal involvement in the economy.
.
All depressions are limited.
And its funny you would claim the Panic of 1825 had something to do with federal involvement considering it started in England.
You're literally just making shit up.
Can you explain how the Panic of 1857 was caused by federal involvement - without making stuff up?
The Long Depression was partially caused by federal involvement - federal involvement in embracing the gold standard, causing the very kind of deflation that Paul advocates.
Ron Paulites - please explain - how do we end the fed?
In particular, what happens to the Fed's assets and liabilities?
Ron Paulites - please explain - how do we end the fed?
In particular, what happens to the Fed's assets and liabilities?
There were limited depressions all of them related to federal involvement in the economy.
.
All depressions are limited.
And its funny you would claim the Panic of 1825 had something to do with federal involvement considering it started in England.
You're literally just making shit up.
Can you explain how the Panic of 1857 was caused by federal involvement - without making stuff up?
The Long Depression was partially caused by federal involvement - federal involvement in embracing the gold standard, causing the very kind of deflation that Paul advocates.
The Fed came about largely because JP Morgan died in 1913. There was no one else to take his place.
Yes, there were actually many more downturns prior to the Fed.
Anyone who knows how banking works."OohPooPahDoo
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Quote: Originally Posted by justaluckyfool
All loans will require 100% deposit backing.
If a bank is required to keep 100% of a deposit in their vault, there's nothing left for them to loan out, moron. "
What "moron believes lenders lend the money they have in deposit?
I'm not sure what the derivatives position of worldwide financial institutions has to do with fractional reserve banking of depository institutions. Perhaps you can explain that to me, or will you instead just call me uneducated and stupid and at best post a link to a video of some other idiot explaining it?Dear Moron ,please explain have the worldwide financial institutions have $800 trillion in derivatives (confirmed by OCC $235 of which is US based financial institutions?
Oh,I would guess you don't have the slightest idea (read: knowledge).
You may however call me a fool,maybe even a bigger fool for posting something that requires a little knowledge to debate on this site.
Ron Paulites - please explain - how do we end the fed?
In particular, what happens to the Fed's assets and liabilities?
Well I wouldn't be as nice as paul, I would arrest its owners
., and take what they have stolen from us and the world, then start over based on the Constitution
The Fed isn't constitutional, its owned by the money men our Founders fought but with new friends. They are part of the AAE, who has funded our enemies, created the wars, and offered solutions to their evil, like the UN. They have stolen from us in to many ways to count and at the top, believe they are gods on Earth, and we the people are only here to serve them. They plan to kill most of us off, and poison and down grade us than lest than human, through devices at their hand now.
There is evil in the world, and it rules the world. But one day they will hide in caves...one day.
They haven't stolen anything from us. In fact they send billions to the Treasury every year.
Yeah, that's actually a big part of it.All depressions are limited.
And its funny you would claim the Panic of 1825 had something to do with federal involvement considering it started in England.
You're literally just making shit up.
Can you explain how the Panic of 1857 was caused by federal involvement - without making stuff up?
The Long Depression was partially caused by federal involvement - federal involvement in embracing the gold standard, causing the very kind of deflation that Paul advocates.
The Fed came about largely because JP Morgan died in 1913. There was no one else to take his place.
That's not true.
They haven't stolen anything from us. In fact they send billions to the Treasury every year.
And we owe it back to them with interest.
Yeah, that's actually a big part of it.The Fed came about largely because JP Morgan died in 1913. There was no one else to take his place.
That's not true.
Morgan died in May 1913. The Federal reserve act passed in December the same year. Morgan had been instrumental in quelling the panic of 1907. Once he died there was no one of his stature to influence markets.
Obviously that isn't the only factor, but the ability to smooth out panics and provide liquidity is a big plus for the Fed.
Your response,"Anyone who knows how banking works."OohPooPahDoo
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Quote: Originally Posted by justaluckyfool
"All loans will require 100% deposit backing."
YOUR RESPONSE-
If a bank is required to keep 100% of a deposit in their vault, there's nothing left for them to loan out, moron. "
Justaluckyfool, " What "moron believes lenders lend the money they have in deposit?
OohPooP...."I'm not sure what the derivatives position of worldwide financial institutions has to do with fractional reserve banking of depository institutions. Perhaps you can explain that to me, or will you instead just call me uneducated and stupid and at best post a link to a video of some other idiot explaining it?Justaluckyfool,"Dear Moron ,please explain have the worldwide financial institutions have $800 trillion in derivatives (confirmed by OCC $235 of which is US based financial institutions?
OohPooP....,"Justaluckyfool,"Oh,I would guess you don't have the slightest idea (read: knowledge).
You may however call me a fool,maybe even a bigger fool for posting something that requires a little knowledge to debate on this site.
Justaluckyfool's Response,"
Hi,Wow , Moron,Idiot,stupid,infant can understand,even a caveman,Wow
you blow my mind because you have posted 3158 times and you are still allowed,Wow !
I will explain to you what is and how fractional lending is and does.Then re read your comment " if you give your money to deposit in a bank, and they put all of it in a bank vault and keep it there until you need it, none of it is available to lend out. That's just common sense. "YOU SHOULD BE SO HUMILIATED THAT YOU WOULD NEVER WRITE A POST AGAIN,but we both know that's not going to happen,one needs some self-esteem to do that and anyone that calls people "stupid,moron,etc., just don't have any.
FRACTIONAL RESERVE BANKING.
Money on deposit is shown as an entry on a depository receipt.The holder shows that they are storing that amount for you.
At the beginning of banking people would put their gold (or what ever currency) they used in a "place for safe deposit", to store it and have available when it was needed.
That money was available to them "on demand"
The friendly banker realized that the money was just sitting there doing nothing most of the time and even at that the depositor never all came at one time to "demand" their total deposit.
The really smart friendly banker had a great idea,he could lend out 90% of the money on deposit ,thereby getting that "doing nothing but sitting there money to work for him.
All the storer had to do is write a receipt for 90% of what is stored because that is the amount that is usually ALWAYS left there.LEND THAT "newly created money (gold) work for him.
What a super ,super deal .Money the banker didn't even own,he could lend out and make a gain of 10% a year. I mean these guys were no dummies,money was so needed for trade , etc., they were able to charge 10%/year and had people in line for that money.
When they made the loan they DEPOSITED THEIR BANK CHECK into the borrowers account,
an entry on that account saying that this borrower has the right to use that amount of money that is in his account in the amount of 90% of that initial deposit.
How MAGICAL,how great is that !
The smart banker just created money,money it is getting paid interest on,money it does own, or will ever own until the borrower paid off the loan.
Lets do the numbers;
STEP ONE.
Mr A deposits $100,000 in the BIG BANK.Mr A is a total moron,stupid,caveman type, he believes it has no value to BIG BANK because it will sit there and do nothing.Mr A just can not believe his GOOD fortune the stupid Big Bank is going to give him 2% interest on his deposit and Big Bank must be some kind of double idiot because he his safeguarding that money FREE OF CHARGE!
STEP TWO.
BIG BANK makes a deposit for Mr B at one of it's branches for $90,000 and holds a note on its ledger for a bank asset for $90,000 at 10% for 7.2 years that calls for a payment of
$2931 per month (86 of them) for a total return of $180,000.
Big Bank makes a MAGICAL $90,000 profit from money he never even had.
NOT TRUE,he has to pay 2% to Mr A if his money is still in the Big Bank.
BUT NOT TO WORRY,
STEP THREE.
BIG BANK is really cool and knows how he can really "make money"
Remember that $90,000 asset that his bank holds ,you know,the note for 86 payments of $2931 for the loan of $90,000.
DID WE MENTION HE WAS ALLOWED TO LOAN UP TO 90% of assets (money in his care.
DAMN,he calls Mr. C and let's him know that "His friendly banker" will honor him with a loan for $81,000 at 10% for 7.2 years.JUST COME IN AND SIGN UP.
Big Bank does even better on this loan because he DOESN'T EVEN HAVE TO PAY MR A
2%,because Mr A does not have to increase his deposit,so he only gets paid once.
BUT NOT TO WORRY
STEP FOUR.
BIG BANK advertises.COME ON DOWN LOANS AVAILABLE STARTING AT $72,900
etc.,etc.,
Such is "Fractional Reserve Banking" with a 10% RESERVE!
"The Best way to Rob a Bank,Is To Buy one"( William Black)
BUT NOT TO WORRY.
IT GETS BETTER.
BIG BANK meets BIGGER BANK and they make a way to to get paid half those tremendous gains in ninety days and leverage the total amounts over again.They discover that they can package all kinds of loans and sell them.GET PAID TODAY, PART OF WHAT WOULD BE THE FUTURE PROFIT.
Numerical explanation: Put together 5 Loans, give them a fancy alphabet soup name (MBS, etc)
sell them to the BIGGER BANKS worldwide.
Loan One: $90,000 has a full value of $180,000
Loan Two: $81,000 has a full value of $162,000
Loan Three;$72,900 has a future value of $145,800
Then throw in two no "doc" loans that may,might,could be consider A quality or lower
Loan Four and Five for $100,000 which has a future value of $300,000 (HIGHER RATE)
...and you have a package value of $787,800.
BIGGEST BANK IS WILLING TO GIVE YOU "A CERTIFIED BANK CHECK FOR $709,100 TODAY.
Giving you a profit of $365,200 on money that you never owned or had.Now imagine if we add THREE ZEROS: Package value $787,800,000 gets you a check for $709,100,000 in 90 days.
WOW,why would they care if you paid or not.They borrower and the lender knew at a point where so much money was created that it was physically impossible to pay back but because they were paid up front,they did not care.(The real cause of the 2008 collapse was "the rapid acceleration of private and corporate debt needing to be ever increased to support itself. After it reached a point where there were no longer "new fools" to fuel there greed,the bubble burst.
HOW WAS THIS POSSIBLE ?
Leave the masses believe that they are in a benevolet society,keep them ignorant until they are totally in servitude.Banks and financial institutions by using fractional reserve banking and compound interest are using "the most powerful force in the universe" to gain all of the universe.
It may be time to ..
"
"Believe nothing merely because you have been told it...But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings -- that doctrine believe and cling to,and take it as your guide."-- BuddhaGautama Siddharta (563 - 483 BC), Hindu Prince, founder of Buddhism
: CHALLENGE, VERIFY, IMPROVE, THEN CLING TO IT!
Don't END THE FED,AMEND THE FED!ADDED BONUS,ZERO INCOME TAXES. .justaluckyfool.word.press.
Face it....You have neither common sense nor any fucking idea what you're babbling about.LOL! Only if the annual profit of the Federal Reserve System met or exceeded the annual deficit. Duh. Again, common sense.
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Please enlighten us as to how the profits of the Fed can pay off the debt when the Fed makes less money per year than the U.S. rings up in deficit.
it would appear to violate basic arithmetic, so please, explain (I know you can't, but I'm asking anyway).
