The audacity of the Fed

...the TBTF banks that compose the Fed started donating major resources to re-elect their favorite whores, errr, I mean, politicians to Congress and the WH...
The idea being bankers bribe the federal government officials that control the Fed that regulates the bankers. Sounds like a problem with corrupt officials and bankers, not the Fed.

1. They dont have to actually hand out bribes as the corporations they dominate will do that for them. The Fed can just share inside knowledge of what it is going to do with those who support them, which they are known to do.

2. Genrally, with bribery, isnt the problem as much with the one offering the bribes as it is with the one who takes the bribe? That is my understanding, but then again, I am not so well versed in these sorts of legalities.
 
Alan Greenspan:

The Federal Reserve is an independent agency and that means, basically, that there is no other agency of government that can over-rule actions that we take.
The big multi-national banks and banking agencies that the OWS people are protesting are also private businesses.
Why does BoA and other banks get regulated to death but the Fed gets a free pass?

Somebody here said that "we" don't get the OWS protestors.
They're right, in my case. I don't.

Why aren't they protesting the Fed offices and branches?



Can someone, while we're at it, explain how the Fed maneuvered itslef between taxpayers and our government?
I mean, you can't just go to the Fed and take out a mortgage.
They're not your typical corner bank.
They get our tax dollars while we bitch and whine and moan about bailing out the other banks.


I'm sure I'll have further questions, but I'll see how this goes.

Dumbass.

The fed is independent so no one party has control over the monetary supply when they get in power. The fed follows set guidelines, even the "extraordinary actions" taken by the fed were following legal guidelines. The fed mostly acts to stabilize prices. The image of the fed as an entity that just prints money and causes inflation is ridiculous. Instead, it just lends to banks and allows their depositors to access money they already have rather than just injecting money into the economy. Its policies on interest rates should by the books. Usually counter cyclical. Raise rates in boom times to allow higher returns, lower rates during downturns to ease credit.

Theres nothing nefarious about it. People that dont understand it fully just run away with this simplistic notion that federal reserve just prints money and creates inflation.
 
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The ridiculous idea that the recession has something to do with inflation is a fantasy of the right. The people that cry inflation are the same as the ridiculous bond doom-criers.

CUUR0000SA0_106001_1322238192934.gif



Where exactly is this giant spike in inflation?
 
Alan Greenspan:

The Federal Reserve is an independent agency and that means, basically, that there is no other agency of government that can over-rule actions that we take.
The big multi-national banks and banking agencies that the OWS people are protesting are also private businesses.
Why does BoA and other banks get regulated to death but the Fed gets a free pass?

Somebody here said that "we" don't get the OWS protestors.
They're right, in my case. I don't.

Why aren't they protesting the Fed offices and branches?



Can someone, while we're at it, explain how the Fed maneuvered itslef between taxpayers and our government?
I mean, you can't just go to the Fed and take out a mortgage.
They're not your typical corner bank.
They get our tax dollars while we bitch and whine and moan about bailing out the other banks.


I'm sure I'll have further questions, but I'll see how this goes.

Dumbass.

The fed is independent so no one party has control over the monetary supply when they get in power. The fed follows set guidelines, even the "extraordinary actions" taken by the fed were following legal guidelines. The fed mostly acts to stabilize prices. The image of the fed as an entity that just prints money and causes inflation is ridiculous. Instead, it just lends to banks and allows their depositors to access money they already have rather than just injecting money into the economy. Its policies on interest rates should by the books. Usually counter cyclical. Raise rates in boom times to allow higher returns, lower rates during downturns to ease credit.

Theres nothing nefarious about it. People that dont understand it fully just run away with this simplistic notion that federal reserve just prints money and creates inflation.

Good Lord. You present yourself as so authoritative and get the most basic facts wrong, for example the Fed does create inflation, and quite deliberately so that it can avert deflation by having room to lower interest rates. I think annual 2% inflation is their goal.

And also, not all things illegitimate are also illegal. The Fed seems to be using its legal authority in ways that were never intended like their currency exchange desk, if I recall correctly, their buying Treasuries which effectively monetizes our debt, and their insider trading by passing along information on closed meeting to those they consider allies.

None of this is imagined by paranoids.

Also, your next post denies any relationship between inflation and recession, and that is simply ill informed, as they are inversely related, and low amounts of inflation are considered by most Keynesianists to be a hedge on deflation and thereby recession.

I dont think the pople on this thread are as stupid as you seem to think that they are.
 
Alan Greenspan:

The big multi-national banks and banking agencies that the OWS people are protesting are also private businesses.
Why does BoA and other banks get regulated to death but the Fed gets a free pass?

Somebody here said that "we" don't get the OWS protestors.
They're right, in my case. I don't.

Why aren't they protesting the Fed offices and branches?



Can someone, while we're at it, explain how the Fed maneuvered itslef between taxpayers and our government?
I mean, you can't just go to the Fed and take out a mortgage.
They're not your typical corner bank.
They get our tax dollars while we bitch and whine and moan about bailing out the other banks.


I'm sure I'll have further questions, but I'll see how this goes.

Dumbass.

The fed is independent so no one party has control over the monetary supply when they get in power. The fed follows set guidelines, even the "extraordinary actions" taken by the fed were following legal guidelines. The fed mostly acts to stabilize prices. The image of the fed as an entity that just prints money and causes inflation is ridiculous. Instead, it just lends to banks and allows their depositors to access money they already have rather than just injecting money into the economy. Its policies on interest rates should by the books. Usually counter cyclical. Raise rates in boom times to allow higher returns, lower rates during downturns to ease credit.

Theres nothing nefarious about it. People that dont understand it fully just run away with this simplistic notion that federal reserve just prints money and creates inflation.

Good Lord. You present yourself as so authoritative and get the most basic facts wrong, for example the Fed does create inflation, and quite deliberately so that it can avert deflation by having room to lower interest rates. I think annual 2% inflation is their goal.

And also, not all things illegitimate are also illegal. The Fed seems to be using its legal authority in ways that were never intended like their currency exchange desk, if I recall correctly, their buying Treasuries which effectively monetizes our debt, and their insider trading by passing along information on closed meeting to those they consider allies.

None of this is imagined by paranoids.

Also, your next post denies any relationship between inflation and recession, and that is simply ill informed, as they are inversely related, and low amounts of inflation are considered by most Keynesianists to be a hedge on deflation and thereby recession.

I dont think the pople on this thread are as stupid as you seem to think that they are.

No where in that post did i say that the fed doesnt create inflation. I said the paranoid image of the fed wildly printing money and destroying the dollar are simplistic and exaggerated.

Idk what your even talking about after that....you seem to ramble on based on what you think im going to say
 
Dumbass.

The fed is independent so no one party has control over the monetary supply when they get in power. The fed follows set guidelines, even the "extraordinary actions" taken by the fed were following legal guidelines. The fed mostly acts to stabilize prices. The image of the fed as an entity that just prints money and causes inflation is ridiculous. Instead, it just lends to banks and allows their depositors to access money they already have rather than just injecting money into the economy. Its policies on interest rates should by the books. Usually counter cyclical. Raise rates in boom times to allow higher returns, lower rates during downturns to ease credit.

Theres nothing nefarious about it. People that dont understand it fully just run away with this simplistic notion that federal reserve just prints money and creates inflation.

Good Lord. You present yourself as so authoritative and get the most basic facts wrong, for example the Fed does create inflation, and quite deliberately so that it can avert deflation by having room to lower interest rates. I think annual 2% inflation is their goal.

And also, not all things illegitimate are also illegal. The Fed seems to be using its legal authority in ways that were never intended like their currency exchange desk, if I recall correctly, their buying Treasuries which effectively monetizes our debt, and their insider trading by passing along information on closed meeting to those they consider allies.

None of this is imagined by paranoids.

Also, your next post denies any relationship between inflation and recession, and that is simply ill informed, as they are inversely related, and low amounts of inflation are considered by most Keynesianists to be a hedge on deflation and thereby recession.

I dont think the pople on this thread are as stupid as you seem to think that they are.

No where in that post did i say that the fed doesnt create inflation. I said the paranoid image of the fed wildly printing money and destroying the dollar are simplistic and exaggerated.

I agree with that mostly, though the quantitative easing combined with monetizing debt sounds like about as close to 'wildly printing money' as one can get.

Idk what your even talking about after that....you seem to ramble on based on what you think im going to say

I was looking at your next post, but if I misunderstood you, my apologies.
 
Good Lord. You present yourself as so authoritative and get the most basic facts wrong, for example the Fed does create inflation, and quite deliberately so that it can avert deflation by having room to lower interest rates. I think annual 2% inflation is their goal.

And also, not all things illegitimate are also illegal. The Fed seems to be using its legal authority in ways that were never intended like their currency exchange desk, if I recall correctly, their buying Treasuries which effectively monetizes our debt, and their insider trading by passing along information on closed meeting to those they consider allies.

None of this is imagined by paranoids.

Also, your next post denies any relationship between inflation and recession, and that is simply ill informed, as they are inversely related, and low amounts of inflation are considered by most Keynesianists to be a hedge on deflation and thereby recession.

I dont think the pople on this thread are as stupid as you seem to think that they are.

No where in that post did i say that the fed doesnt create inflation. I said the paranoid image of the fed wildly printing money and destroying the dollar are simplistic and exaggerated.

I agree with that mostly, though the quantitative easing combined with monetizing debt sounds like about as close to 'wildly printing money' as one can get.

Well we should make a distinction between printing money and inflation. Does printing money always equal inflation? No, it does not.

The feds qe1 and qe2 bought assets from banks so the asset side of the balance sheet didnt shrink too much in relation to its liabilities. A more realistic way to look at it, is that it just allowed depositors to access the money they already have. As opposed to allowing them access to more which would be inflationary.

The fed could cause inflation by suddenly cutting rates from very high to low, thereby increasing the credit banks extend and raising aggregate demand. But that isnt happening here.

so QE wasnt exactly inflationary. Wheres my graph....
 
CUUR0000SA0_106001_1322238192934.gif


This should make it clear. I can only see one way by which QE causes inflation, and thats if the fed massively overpays banks for the assets it purchases.
 

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