Covid Reveals How US Economy Functions as a Vast Wealth Transfer System for the 1%

[georgephillip]

"If there has been any positive outcome from the COVID-19 pandemic, it has been that the American people are beginning to take a cold, hard look at how the U.S. economy has been engineered as a vast wealth transfer system for the one percent.

"We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans."

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet

The Fed's Board of Governors currently consists of five unelected individuals overseeing a balance sheet of $6.98 trillion which is 28% of the $25.3 trillion federal debt that's overseen by 435 elected members of the House and 100 elected Senator.

Sure, the politicians spend hours every day dialing for campaign dollars, but the Fed's fealty to the richest one percent trumps every other threat to the 99%.

 

[Toddsterpatriot]

"If there has been any positive outcome from the COVID-19 pandemic, it has been that the American people are beginning to take a cold, hard look at how the U.S. economy has been engineered as a vast wealth transfer system for the one percent.

"We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans."

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet

The Fed's Board of Governors currently consists of five unelected individuals overseeing a balance sheet of $6.98 trillion which is 28% of the $25.3 trillion federal debt that's overseen by 435 elected members of the House and 100 elected Senator.

Sure, the politicians spend hours every day dialing for campaign dollars, but the Fed's fealty to the richest one percent trumps every other threat to the 99%.

"We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans."

Wrong.

 

[night_son]

"If there has been any positive outcome from the COVID-19 pandemic, it has been that the American people are beginning to take a cold, hard look at how the U.S. economy has been engineered as a vast wealth transfer system for the one percent.

"We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans."

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet

The Fed's Board of Governors currently consists of five unelected individuals overseeing a balance sheet of $6.98 trillion which is 28% of the $25.3 trillion federal debt that's overseen by 435 elected members of the House and 100 elected Senator.

Sure, the politicians spend hours every day dialing for campaign dollars, but the Fed's fealty to the richest one percent trumps every other threat to the 99%.

Quick, transition to green communism. Just joking, comrade Chinese sympathizer.

 

[Toddsterpatriot]

Why has the New York Fed run up such a monster balance sheet? It’s because the New York Fed is privately-owned by some of the largest, most dangerous banks in America which, since 2008, have been habitually propped up by cheap money from the New York Fed. Those mega banks include JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley.

That must be why they're lending trillions to the Fed, not borrowing trillions from the Fed.

 

[Toddsterpatriot]

Pam and Russ are funny......and dumb!!!

When we did the math for all 12 regional Fed banks, the bank share owners were responsible for just 1.8 percent of the $6.98 trillion in liabilities that the Federal Reserve has created with the flick of an electronic button. In other words, an institution controlled by five unelected people, with the insane power to create money out of thin air by pushing an electronic button, have put taxpayers (and the next generation) on the hook for $6.85 trillion.

The Fed holds assets of almost $7 trillion. Interest earning assets.

Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1 - April 11, 2024

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

Over $4 trillion in US Treasuries.
$1.6 trillion in mortgage backed securities.
Repos. Central bank liquidity swaps.
Loans to banks.

Every one of those a money maker.
What are their liabilities?

Federal Reserve liabilities

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

Currency...….paper money. And deposits of member banks.

Their liabilities are cash, which they can create at will, and their assets are interest bearing securities.
Why are we worried that "taxpayers are on the hook"?

Morons.

 

[georgephillip]

That must be why they're lending trillions to the Fed, not borrowing trillions from the Fed.

What collateral is the Fed offering in exchange for those "loans"?

 

[georgephillip]

Fed Chair Powell Has Upwards of $11.6 Million Invested with BlackRock, the Firm that Will Manage a $750 Billion Corporate Bond Bailout Program for the Fed

"Most Americans likely assume that Jerome Powell, the Chairman of the Federal Reserve, is an economist, like the prior chairs of the Fed over the past 40 years.

"He’s not.

"Powell is a former investment banker at the Wall Street firm, Dillon Read; a former partner at the controversial private equity and leveraged buyout firm, the Carlyle Group, which has spent over $1 billion over the past decade lobbying the federal government; and a former lawyer at Davis Polk, a Big Law firm that played a key role advising the government and Treasury in the 2008 Wall Street bailout..."

"According to his 2019 financial disclosure, his net worth could run as high as $55 million.

"Much of his investments are with Goldman Sachs (a Wall Street bank that is supervised by the Fed) or with BlackRock and its iShares Exchange Traded Funds (ETFs).

"The government mandated financial disclosures report investment values in a range. The upper value of Powell’s holdings with BlackRock is $11.6 million.

"The upper range of Powell’s holdings with Goldman Sachs is $16.55 million.

"The name Goldman Sachs has been shortened to 'GS' in the disclosure document.

"These would appear to be large conflicts of interest. BlackRock has been selected to manage the unprecedented buying of both investment grade and junk bonds on behalf of the Fed to the tune of approximately $750 billion according to the most recent term sheet from the Fed.

"Even more conflicted, the Fed will allow BlackRock to buy up its own sinking junk bond ETFs using taxpayer and Fed money. (See here and here."

 

[Dick Foster]

"If there has been any positive outcome from the COVID-19 pandemic, it has been that the American people are beginning to take a cold, hard look at how the U.S. economy has been engineered as a vast wealth transfer system for the one percent.

"We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans."

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet

The Fed's Board of Governors currently consists of five unelected individuals overseeing a balance sheet of $6.98 trillion which is 28% of the $25.3 trillion federal debt that's overseen by 435 elected members of the House and 100 elected Senator.

Sure, the politicians spend hours every day dialing for campaign dollars, but the Fed's fealty to the richest one percent trumps every other threat to the 99%.

"If there has been any positive outcome from the COVID-19 pandemic, it has been that the American people are beginning to take a cold, hard look at how the U.S. economy has been engineered as a vast wealth transfer system for the one percent.

"We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans."

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet

The Fed's Board of Governors currently consists of five unelected individuals overseeing a balance sheet of $6.98 trillion which is 28% of the $25.3 trillion federal debt that's overseen by 435 elected members of the House and 100 elected Senator.

Sure, the politicians spend hours every day dialing for campaign dollars, but the Fed's fealty to the richest one percent trumps every other threat to the 99%.

Spoken like a true dirt bag that has never done anything or contributed anything so you piss away up your life wishing for something you did nothing to deserve and rightfully belongs to someone else.

 

[Toddsterpatriot]

That must be why they're lending trillions to the Fed, not borrowing trillions from the Fed.

What collateral is the Fed offering in exchange for those "loans"?

Member banks deposit reserves in their Fed account. No collateral involved.

 

[Toddsterpatriot]

Fed Chair Powell Has Upwards of $11.6 Million Invested with BlackRock, the Firm that Will Manage a $750 Billion Corporate Bond Bailout Program for the Fed

"Most Americans likely assume that Jerome Powell, the Chairman of the Federal Reserve, is an economist, like the prior chairs of the Fed over the past 40 years.

"He’s not.

"Powell is a former investment banker at the Wall Street firm, Dillon Read; a former partner at the controversial private equity and leveraged buyout firm, the Carlyle Group, which has spent over $1 billion over the past decade lobbying the federal government; and a former lawyer at Davis Polk, a Big Law firm that played a key role advising the government and Treasury in the 2008 Wall Street bailout..."

"According to his 2019 financial disclosure, his net worth could run as high as $55 million.

"Much of his investments are with Goldman Sachs (a Wall Street bank that is supervised by the Fed) or with BlackRock and its iShares Exchange Traded Funds (ETFs).

"The government mandated financial disclosures report investment values in a range. The upper value of Powell’s holdings with BlackRock is $11.6 million.

"The upper range of Powell’s holdings with Goldman Sachs is $16.55 million.

"The name Goldman Sachs has been shortened to 'GS' in the disclosure document.

"These would appear to be large conflicts of interest. BlackRock has been selected to manage the unprecedented buying of both investment grade and junk bonds on behalf of the Fed to the tune of approximately $750 billion according to the most recent term sheet from the Fed.

"Even more conflicted, the Fed will allow BlackRock to buy up its own sinking junk bond ETFs using taxpayer and Fed money. (See here and here."

"Much of his investments are with Goldman Sachs (a Wall Street bank that is supervised by the Fed) or with BlackRock and its iShares Exchange Traded Funds (ETFs).


Oh for fuck sake. He has ETFs and mutual funds.
He doesn't secretly benefit if BlackRock or Goldman makes a profit.

 

[georgephillip]

Member banks deposit reserves in their Fed account. No collateral involved.

"The $6.98 trillion balance sheet at the Fed is created out of thin air at the electronic push of a button by the 12 regional Fed banks.

"The Federal Reserve Bank of New York (New York Fed) has been pushing that money-creating-button more than all of the other 11 regional Fed banks combined.

"As of last Wednesday, the New York Fed’s balance sheet stood at $3.9 trillion or 56 percent of the balance sheet tally for all 12 regional Fed banks.

"Why has the New York Fed run up such a monster balance sheet?

"It’s because the New York Fed is privately-owned by some of the largest, most dangerous banks in America which, since 2008, have been habitually propped up by cheap money from the New York Fed.

"Those mega banks include JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley.

"If the New York Fed is privately owned by the member banks in its region (as are all of the 12 regional Fed banks) and has run up a $3.9 trillion balance sheet, its share owners should be on the hook for its liabilities, correct?"

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet

 

[Toddsterpatriot]

Member banks deposit reserves in their Fed account. No collateral involved.

"The $6.98 trillion balance sheet at the Fed is created out of thin air at the electronic push of a button by the 12 regional Fed banks.

"The Federal Reserve Bank of New York (New York Fed) has been pushing that money-creating-button more than all of the other 11 regional Fed banks combined.

"As of last Wednesday, the New York Fed’s balance sheet stood at $3.9 trillion or 56 percent of the balance sheet tally for all 12 regional Fed banks.

"Why has the New York Fed run up such a monster balance sheet?

"It’s because the New York Fed is privately-owned by some of the largest, most dangerous banks in America which, since 2008, have been habitually propped up by cheap money from the New York Fed.

"Those mega banks include JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley.

"If the New York Fed is privately owned by the member banks in its region (as are all of the 12 regional Fed banks) and has run up a $3.9 trillion balance sheet, its share owners should be on the hook for its liabilities, correct?"

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet

Thanks, but I already mocked their errors and confusion.
No need to repost their stupidity.

And the Fed isn't privately owned.
You can tell because the US Treasury got $54.9 billion of their annual profit in 2019
and the banks who "own" the Fed got dividends of $714 million.

Federal Reserve Board announces Reserve Bank income and expense data and transfers to the Treasury for 2019

The Federal Reserve Board on Friday announced preliminary results indicating that the Reserve Banks provided for payments of approximately $54.9 billion to the

www.federalreserve.gov

 

[JustAGuy1]

That must be why they're lending trillions to the Fed, not borrowing trillions from the Fed.

What collateral is the Fed offering in exchange for those "loans"?

If you know that answer you shouldn't post in here.