The GENIUS OF THE FEDERAL RESERVE!

[Neubarth]

Because I have never studied economics, I am not compelled to support any economic school of theory, all of which seem crazy to me. They babble and quibble and banter their arguments all over the place, and one would think that supposedly genius level people would all agree on fundamentals of their science. The only problem is, it is all THEORY! There is no science to it.

Now, knowing that all of those geniuses all say the other side is crazy or worse I ask this.

Since it has been established that we can borrow from our mythical bank (The Fed) at ZERO interest and have been doing so for almost a hundred years, why in the hell are we borrowing from Japan and China. We have to pay those countries (and private investors in those countries) interest on our notes!

We go through the token gesture of paying the interest to the FED, and the FED puts the money directly in the US Treasury. (i.e. We give it to them and they give it right back.) All of our debt should be financed by the FED. Considering that it costs us absolutely nothing to borrow, our debt can be astronomical and it would not matter.

Some economist the other day was trying to say that when the FED cashed in those bonds and notes, that would put too much money into the system and the dollar would inflate. Again, he was babbling and quibbling and bantering all over the place when I stated that, "The FED does not have to cash in those bonds! They could hold them as security forever while we borrowed endlessly. That is what we have been doing with most of our FED held debt for decades now."

He went away mumbling to himself.

How come it is so easy for me to see it and all of those economic educated geniuses can not understand?

We have proven that my "theory" works for almost a century now. I suppose we should be prudent, but in reality, we have unlimited cash to spend. Right?

 

[georgephillip]

Do you think it's accurate to say our National Debt comes from paying interest on the money we borrow from the Federal Reserve?

Why can't the US Treasury spend new money into today's economy the way Lincoln spent Greenbacks to win the First American Civil War?

 

[Neubarth]

Do you think it's accurate to say our National Debt comes from paying interest on the money we borrow from the Federal Reserve?

Totally wrong.

Why can't the US Treasury spend new money into today's economy the way Lincoln spent Greenbacks to win the First American Civil War?

The Treasury prints our money and mints our coins. If they print too much money, we have inflation. That is not too bad if it is four percent a year. IF it gets above six percent a year we start having problems. .

 

[Mr.Fitnah]

Do you think it's accurate to say our National Debt comes from paying interest on the money we borrow from the Federal Reserve?

Not all of it ,the Government does pay the fed to use its money , This is why we were warned against a central bank.

 

[georgephillip]

Neubarth:

The Treasury mints coins and issues interest bearing debt instruments which the Fed "buys" with "money" created from thin air.

If it's true the US dollar has lost 95% of it value to inflation since 1913, why not merge the Fed and Treasury and SPEND new money directly into circulation?

Treasury and Fed working like the two hemispheres in our brains.
Treasury holds the capital or what we now call the "reserves" currently held by the Fed.
Fed/Central Bank does business as usual with no requirement for capital reserves.
Treasury can issue dollar$ that are debt free--just like the Bank of North Dakota.
Treasury doesn't compete with commercial banks but is there to help like the BND.

 

[Neubarth]

Neubarth:

The Treasury mints coins and issues interest bearing debt instruments which the Fed "buys" with "money" created from thin air.

If it's true the US dollar has lost 95% of it value to inflation since 1913, why not merge the Fed and Treasury and SPEND new money directly into circulation?

Treasury and Fed working like the two hemispheres in our brains.
Treasury holds the capital or what we now call the "reserves" currently held by the Fed.
Fed/Central Bank does business as usual with no requirement for capital reserves.
Treasury can issue dollar$ that are debt free--just like the Bank of North Dakota.
Treasury doesn't compete with commercial banks but is there to help like the BND.

Total insanity! Remember the whole purpose of the FED is to create the illusion of a Bank that we can borrow from if we can not borrow elsewhere. As it is, we are using the FED quite effectively right now. Not to have it would mean total economic collapse.

Ron Paul and his idiot crowd are too fucking stupid to understand how the FED has kept the United States going for the last seventy years. If we were on the Gold standard, we would have totally collapsed years ago.

Money out of thin air is essentially overspending by Congress. That is the creation of the need for spending cash. As the song Chantilly Lace by the Big Bopper goes, "I ain't got no money, honey." That is the reality for Congress. Thus we need the FED. The FED does not create the debt, our congress does, often at the request of the President. The debt is a product of Congress, not the FED.

The whole purpose of the FED is to create that money out of thin air when we do not have the tax revenue to match our spending. That way we can fund emergency spending as is now the case, or as was the case in the 1930's.

THAT is a good thing. With that money out of thin air, the FED can buy our debt when nobody else will, as is happening now.

The greatest advantage of the mythical FED is that they do not need the interest payments that the foreign countries expect from our bonds and notes. I say stop selling the bonds and notes to foreign countries and their citizens and start selling exclusively to the FED.

The system will work as long as we want it to. The Treasury prints the money. The Fed has another purpose and that is to keep the country running. Praise God for the FED!

 

[Neubarth]

When I have gone around the country speaking, I have pointed out that the FED has made it possible to build our fantastic national infrastructure. Our highways, our entire way of life is the result of government being able to spend more than they take in from tax revenue. The FED made it all possible.

Now that the FED is a solvent reality in the eyes of the country, we can continue to borrow from them to fund all future expenditures. It is a never ending free source of money as long as they do not ask for interest on our loans. Of course they won't, because we created them.

Only total complete flaming idiots would dare attack the system. The FED is our money tree.

 

[Baruch Menachem]

They can't do the job they were made for well, so they keep on running around doing other things.

Milton Friedman believes it was deliberate incompetence on the part of the Fed that took the mild recession of 1929 and turned it into the great depression. And since then we have added several other agencies to backstop it because it keeps goofing off or goofing up.

 

[Neubarth]

They can't do the job they were made for well, so they keep on running around doing other things.

Milton Friedman believes it was deliberate incompetence on the part of the Fed that took the mild recession of 1929 and turned it into the great depression. And since then we have added several other agencies to backstop it because it keeps goofing off or goofing up.

Milton is another one of those economic shit heads who does not have a clue. Remember as far as controlling the economy, the only input that the Fed has directly is controlling the interest rate that they lend money to the banks. The FED does not set government regulations. Idiots like Friedman seem to think that the FED can legislate. What a damn stupid buffoon he is.

The FED can set interest rates and that is usually at the request of the government in power. If money was too tight, the printing of money by the Treasury would be the issue, not the interest rate the FED charges banks for the overnight rate.

I can not believe that people are so stupid as to believe the crap that Friedman puts out. It is about as crazy as the crap that Ron Paul puts out. Somebody needs to tie a toe tag on that stupid son of a bitch.

 

[georgephillip]

Why do the words at the top of the $20 bill in front of me read:

FEDERAL RESERVE NOTE?

Instead of: TREASURY NOTE??

 

[Neubarth]

Why do the words at the top of the $20 bill in front of me read:

FEDERAL RESERVE NOTE?

Instead of: TREASURY NOTE??

Why not. It is the Federal Reserve that has managed to keep the United States Solvent since 1930. The fact that we are still here in spite of all of the corrupt politicians is a badge of honor to the FED.

 

[georgephillip]

That was how Texas congressman Wright Patman described the Federal Reserve's "independence" from government. The Fed was designed to be shielded from the corrupting influence voters and greedy private interests with one notable exception: the bankers.

"The Fed was never independent in any real sense. It's power depended on taking care of its one true constituency in banking and finance."

William Greider, author of Secrets of the Temple, offered the above quote in his article "Dismantling the Temple" @The Nation.com (July 15, 2009)

He goes on to call the Fed "...the black hole of our democracy--the crucial contradiction that keeps the people and their representatives from having any voice in these most important public policies."

Anyone seriously interested in cleaning up our financial mess should start at 33 Liberty Street, New York, NY.

 

[Oddball]

The Fed is a joke, in the poorest of taste.

The Creature From Jekyll Island

 

[Fenris Wolf]

Because I have never studied economics, I am not compelled to support any economic school of theory, all of which seem crazy to me. They babble and quibble and banter their arguments all over the place, and one would think that supposedly genius level people would all agree on fundamentals of their science. The only problem is, it is all THEORY! There is no science to it.

Now, knowing that all of those geniuses all say the other side is crazy or worse I ask this.

Since it has been established that we can borrow from our mythical bank (The Fed) at ZERO interest and have been doing so for almost a hundred years, why in the hell are we borrowing from Japan and China. We have to pay those countries (and private investors in those countries) interest on our notes!

We go through the token gesture of paying the interest to the FED, and the FED puts the money directly in the US Treasury. (i.e. We give it to them and they give it right back.) All of our debt should be financed by the FED. Considering that it costs us absolutely nothing to borrow, our debt can be astronomical and it would not matter.

Some economist the other day was trying to say that when the FED cashed in those bonds and notes, that would put too much money into the system and the dollar would inflate. Again, he was babbling and quibbling and bantering all over the place when I stated that, "The FED does not have to cash in those bonds! They could hold them as security forever while we borrowed endlessly. That is what we have been doing with most of our FED held debt for decades now."

He went away mumbling to himself.

How come it is so easy for me to see it and all of those economic educated geniuses can not understand?

We have proven that my "theory" works for almost a century now. I suppose we should be prudent, but in reality, we have unlimited cash to spend. Right?

This is about the most absurd thing I've ever read. Where do I begin?
Well for starters the Federal Reserve is a private bank, not a government agency, and this goes against the Constitution. Our government has basically outsourced the Treasury to a private company, and not for a bargain.
Almost all of our government's debt is to the Federal Reserve and not to foreign counties, this has been a lie to cover the fed's asses. Our country has had most of it's economical hardship since the inception of the federal reserve in 1913. Never before in American history have we had the turmoil like the Great Depression and yet it's close to happening again.
They have been slowly yet surely usurping more and more power to control the economy which should be the job of congress. Don't you find it kind of odd that a private bank has the authority to manipulate our economy instead of the government? With little or no oversight it would be easy to game the system to profit themselves. Another thing that some of the other posters were close to, but never hit on the head is the fact that the federal reserve prints the currency for the U.S. Treasury and in turn charges them interest for this service. Now, if you are paying interest on money that is based on nothing, how can you ever pay that back at full without printing more money from nothing yet again, since you are essentially borrowing more money than is ever made? Now I hope you see just how the fed is the greatest money trapping scheme ever executed on American soil.
They are as low down as to fund the American government in it's efforts in WW2, while at the same time funding Adolf Hitler.
Constitutionally we are not intended to have a gold standard, but a silver standard in which gold can be used but as a floating currency that only adds value to our system.
You certainly are not versed in economics, what the argument in question pertained to was that if all individuals cashed in on bonds the government would not have enough cash in print to cover these promised notes and would have to print more money via the federal reserve which equals more interest that drives us deeper in the hole. This can cause inflation because it induces more money to be printed that is based solely on the value of a dollar internationally, and since supply equals demand, well you do the math.

 

[Fenris Wolf]

Another point that I had failed to mention is that the Federal Income Tax was created with the sole purpose of paying back the interest to the Federal Reserve, however it has become a slush fund to expand the size of government and to justify entitlement programs. It is widely speculated that if our country were to eliminate the Federal Reserve and adopt a silver standard we would not need to tax Americans so heavily. Severing our ties with the federal reserve could also lead us closer to paying off the deficit, which would certainly give us a higher status in the world and could possibly in turn bring jobs back to our country, because we would once again be a prosperous nation.

 

[georgephillip]

Fenris Wolf:

Do you have any idea how much of last year's Fed profits ($46,100,000,000) was returned to Treasury versus how much wound up in private accounts?

Considering the way the Fed arrived on the scene in 1913, like the proverbial thief-in-the-night, do you think public banks modeled on the Bank of North Dakota offer a viable alternative?

 

[georgephillip]

According to Harper's Index (April 2010 print edition) the Fed reported profits of $46, 100,000,000 last year.

Any idea how much of that money was returned to Treasury and how much wound up in private accounts?

What's your take on public banks modeled on the State Bank of North Dakota?

A Democratic gubernatorial candidate in Florida, with a PhD in Economics, claims:

"State and local government budgets will balance without higher taxes when BSF (the Bank of the State of Florida) cuts interest costs. 6% BSF credit cards will save people billions per month, money that stays in Florida instead of going to the big banks--and the state will make huge profits on that too.

"Saving billions in interest costs will create millions of jobs without subsidies just by keeping those billions circulating in Florida. Eventually the state will earn enough to reduce and eliminate state and local taxes while every Floridian has economic security in a recession-proof Florida."

 

[Douger]

I learned economics from my grandfather.
If you see something you want , look in your metal box. If there isn't enough money there, you can't have it.

 

[georgephillip]

Sorry about the double post...it's too damn early to think straight.

 

[Fenris Wolf]

Fenris Wolf:

Do you have any idea how much of last year's Fed profits ($46,100,000,000) was returned to Treasury versus how much wound up in private accounts?

Considering the way the Fed arrived on the scene in 1913, like the proverbial thief-in-the-night, do you think public banks modeled on the Bank of North Dakota offer a viable alternative?

45 billion, but it turned in far less in the last 20 years, but how can that be a bargain if our government still owes interest on the money they are giving back? We will always be in the red no matter who pays what. It's nothing more than passing money back and forth for the sake of PR.

No private bank offers a good alternative. Our treasury department and our congress should be handling the job as the constitution and our forefathers intended. Our government officials are doing half the job and getting twice the pay. I know that the fed was supposedly created to keep special interest groups from getting to congressional members, but that is all the more reason for people to be aware of what their politicians and their money are doing. With more people aware, because it is their duty as a citizen, it would bring a greater amount of accountability back to the elected officials in charge.

That's my opinion for what it is worth.