Credible Argument for Keeping the Fed

[Toddsterpatriot]

Other then your neosocialist opinion on the Federal Reserve serving to protect the Banking Cartel from the population do you have a reason to keep the current monetary system?

Banking cartel? Please elaborate.

******* look in a dictionary for the definition of those two words dipshit. Its pretty descriptive already.

There is no Fed banking cartel, moron.

 

[Toddsterpatriot]

Thank you that is all I needed to know.

No, as I said earlier I have no problem with fractional reserve banking. Money has to come into the money supply somehow.

Can you please describe the workings of a fractional reserve system that is not based on debt-issue currency?

Do some research on the greenbacks. That is a plan that will work well.

Ill backpedel on the 'fractional reserve banking' and replace it with fiat currency. No, I dont think any private institution has the right to create money from nothing and then charge interest for it. Its counterfitting.

Private institutions don't create money from nothing and charge interest for it, dipshit.

 

[Jos]

Can you please describe the workings of a fractional reserve system that is not based on debt-issue currency?

Do some research on the greenbacks. That is a plan that will work well.

Ill backpedel on the 'fractional reserve banking' and replace it with fiat currency. No, I dont think any private institution has the right to create money from nothing and then charge interest for it. Its counterfitting.

Private institutions don't create money from nothing and charge interest for it, dipshit.

the Fed can create new bank reserves as well as money. The primary way the Fed does so is by buying and selling U.S. Treasury securities on the open market. For example:

* When the Fed buys $10 million of Treasury bills on the open market, it credits the selling banks' reserve accounts for $10 million.
* Since the reserves didn't come from another bank, one could say they were created out of “thin air.”
* The initial expansion of deposits and reserves will lead to an expansion of 10 times $10 million because each dollar of reserves will support roughly 10 times that amount in deposits.

How the Fed Creates Money | Publications | National Center for Policy Analysis | NCPA

 

[Toddsterpatriot]

Do some research on the greenbacks. That is a plan that will work well.

Ill backpedel on the 'fractional reserve banking' and replace it with fiat currency. No, I dont think any private institution has the right to create money from nothing and then charge interest for it. Its counterfitting.

Private institutions don't create money from nothing and charge interest for it, dipshit.

the Fed can create new bank reserves as well as money. The primary way the Fed does so is by buying and selling U.S. Treasury securities on the open market. For example:

* When the Fed buys $10 million of Treasury bills on the open market, it credits the selling banks' reserve accounts for $10 million.
* Since the reserves didn't come from another bank, one could say they were created out of “thin air.”
* The initial expansion of deposits and reserves will lead to an expansion of 10 times $10 million because each dollar of reserves will support roughly 10 times that amount in deposits.

How the Fed Creates Money | Publications | National Center for Policy Analysis | NCPA

The Fed isn't a private institution.

 

[Uncensored2008]

Private institutions don't create money from nothing and charge interest for it, dipshit.

I'm not sure I agree. When the Fed buys T-Bills, what basis for the introduction of capital is there other than "out of thin air?" Now if you argue that it is the treasury that creates money from nothing, I'll agree. However, the Fed still reaps the reward of charging interest on it.

Also, how is that Federal Reserve NOT a cartel? They control the amount of product (currency) and the price charged (interest) of that product. Last I checked, that is the text book definition of a cartel.

 

[Jos]

Private institutions don't create money from nothing and charge interest for it, dipshit.

the Fed can create new bank reserves as well as money. The primary way the Fed does so is by buying and selling U.S. Treasury securities on the open market. For example:

* When the Fed buys $10 million of Treasury bills on the open market, it credits the selling banks' reserve accounts for $10 million.
* Since the reserves didn't come from another bank, one could say they were created out of “thin air.”
* The initial expansion of deposits and reserves will lead to an expansion of 10 times $10 million because each dollar of reserves will support roughly 10 times that amount in deposits.

How the Fed Creates Money | Publications | National Center for Policy Analysis | NCPA

The Fed isn't a private institution.

The Fed is privately owned. Its shareholders are private banks

Unlike the U.S. Treasury, which took over Fannie Mae and Freddie Mac the week before, the Fed is not a government-owned agency. Also unprecedented was the way the deal was funded. The Associated Press reported:

"The Treasury Department, for the first time in its history, said it would begin selling bonds for the Federal Reserve in an effort to help the central bank deal with its unprecedented borrowing needs."2

This is extraordinary. Why is the Treasury issuing U.S. government bonds (or debt) to fund the Fed, which is itself supposedly "the lender of last resort" created to fund the banks and the federal government? Yahoo Finance reported on September 17:

Who Owns The Federal Reserve?

 

[8537]

Private institutions don't create money from nothing and charge interest for it, dipshit.

I'm not sure I agree. When the Fed buys T-Bills, what basis for the introduction of capital is there other than "out of thin air?" Now if you argue that it is the treasury that creates money from nothing, I'll agree. However, the Fed still reaps the reward of charging interest on it.

Also, how is that Federal Reserve NOT a cartel? They control the amount of product (currency) and the price charged (interest) of that product. Last I checked, that is the text book definition of a cartel.

The Fed does not control the price charged for money. It sets a rate for money that it loans directly, which is its prerogative as the lender. all other rates impacted by the Fed occur in open market operations.

 

[Toddsterpatriot]

How the Fed Creates Money | Publications | National Center for Policy Analysis | NCPA

The Fed isn't a private institution.

The Fed is privately owned. Its shareholders are private banks
Who Owns The Federal Reserve?

Can a bank sell it's shares? Buy more?
What do they get for their shares? Do they get to keep the Fed's earnings?
Does a bank with twice as many shares get twice as many votes?

 

[8537]

How the Fed Creates Money | Publications | National Center for Policy Analysis | NCPA

The Fed isn't a private institution.

The Fed is privately owned. Its shareholders are private banks
Who Owns The Federal Reserve?

How many private institutions are required to send their CEO before congress every 6 months, send all interest after operating costs to the Treasury, have most of their officials appointed by congress or other public bodies and have a mandate that makes their own fiduciary responsibility subservient to employment and inflation?

 

[Toddsterpatriot]

Private institutions don't create money from nothing and charge interest for it, dipshit.

I'm not sure I agree. When the Fed buys T-Bills, what basis for the introduction of capital is there other than "out of thin air?" Now if you argue that it is the treasury that creates money from nothing, I'll agree. However, the Fed still reaps the reward of charging interest on it.

Also, how is that Federal Reserve NOT a cartel? They control the amount of product (currency) and the price charged (interest) of that product. Last I checked, that is the text book definition of a cartel.

The Fed isn't a private institution.
I'm pretty sure the dipshit wasn't calling the Fed a cartel, but our banking system.
Yes, the Fed can create money out of thin air. Not the Treasury.
The Fed doesn't reap the reward of charging interest, most (in the 90% area) of their earnings are turned over to the Treasury each year.
The Fed could, I guess, be said to control the amount of FRNs, because they can order more to be printed, but they don't control the money supply.
Except for overnight rates, they don't control interest rates either.

 

[Uncensored2008]

The Fed does not control the price charged for money. It sets a rate for money that it loans directly, which is its prerogative as the lender.

You are attempting to make a distinction that doesn't exist.

The Fed sets the interest rate as a matter of monetary policy.

all other rates impacted by the Fed occur in open market operations.

Much as the price of gasoline is set by individual stations, but no one will accept that the price of crude is not the key element. The Fed rate determines the cost of money.

 

[Toddsterpatriot]

The Fed does not control the price charged for money. It sets a rate for money that it loans directly, which is its prerogative as the lender.

You are attempting to make a distinction that doesn't exist.

The Fed sets the interest rate as a matter of monetary policy.

all other rates impacted by the Fed occur in open market operations.

Much as the price of gasoline is set by individual stations, but no one will accept that the price of crude is not the key element. The Fed rate determines the cost of money.

Overnight money only. All other rates flaot.

 

[Jos]

Jewish bankers own the Federal reserve bank

 

[Uncensored2008]

The Fed isn't a private institution.

The Federal Reserve is a classical example of a fascist institution, i.e. the merger of private and governmental power structures. The Fed is neither a private nor a public institution, but a hybrid of both.

I'm pretty sure the dipshit wasn't calling the Fed a cartel, but our banking system.

I didn't read it that way.

Yes, the Fed can create money out of thin air. Not the Treasury.

It's pretty much the other way around. The Treasury floats the bonds that provide the capital the Fed operates on. The Fed cannot expand the money supply without Treasury Securities to back it.

The Fed doesn't reap the reward of charging interest, most (in the 90% area) of their earnings are turned over to the Treasury each year.

Given that T-Bills are the basis of currency, that would be expected. My memory was that the Fed retained 3-4% of interest, not 10%.

The Fed could, I guess, be said to control the amount of FRNs, because they can order more to be printed, but they don't control the money supply.

Only about 10% of M2 is in hard currency. We live in an electronic age. Printing money isn't the major issue. But the Fed absolutely controls the money supply, expanding and contracting in reaction to the business cycle and the goals of the Treasury.

Except for overnight rates, they don't control interest rates either.

Of course they do. The Fed rate controls interest rates just as surely as the price of Crude Oil controls the price at the pump. Neither is directly set, but both are undeniably controlled.

 

[Toddsterpatriot]

Jewish bankers own the Federal reserve bank

Of course they do.
They're under your bed as well.

 

[8537]

The Fed does not control the price charged for money. It sets a rate for money that it loans directly, which is its prerogative as the lender.

You are attempting to make a distinction that doesn't exist.

The Fed sets the interest rate as a matter of monetary policy.

...in the same way that GM sets the price of cars: Open market operations. The only rate the Fed sets is the discount rate. It influences the fed funds rate with open market operations - but it's not always successful.

all other rates impacted by the Fed occur in open market operations.

Much as the price of gasoline is set by individual stations, but no one will accept that the price of crude is not the key element. The Fed rate determines the cost of money.[/QUOTE]

No really - the Fed rate doesn't even determine the basis rate for the cost of many 30 yr mortgages.

 

[Toddsterpatriot]

The Fed isn't a private institution.

The Federal Reserve is a classical example of a fascist institution, i.e. the merger of private and governmental power structures. The Fed is neither a private nor a public institution, but a hybrid of both.

I'm pretty sure the dipshit wasn't calling the Fed a cartel, but our banking system.

I didn't read it that way.


It's pretty much the other way around. The Treasury floats the bonds that provide the capital the Fed operates on. The Fed cannot expand the money supply without Treasury Securities to back it.



Given that T-Bills are the basis of currency, that would be expected. My memory was that the Fed retained 3-4% of interest, not 10%.

The Fed could, I guess, be said to control the amount of FRNs, because they can order more to be printed, but they don't control the money supply.

Only about 10% of M2 is in hard currency. We live in an electronic age. Printing money isn't the major issue. But the Fed absolutely controls the money supply, expanding and contracting in reaction to the business cycle and the goals of the Treasury.

Except for overnight rates, they don't control interest rates either.

Of course they do. The Fed rate controls interest rates just as surely as the price of Crude Oil controls the price at the pump. Neither is directly set, but both are undeniably controlled.

1)Yes, the Fed is a hybrid.

2)He said, "the Federal Reserve serving to protect the Banking Cartel" He's talking about 2 different things. The Fed doesn't need capital from the Treasury. The Fed can expand the money supply without Treasuries. They did it when they bought MBS.
The amount the Fed retains varies based on earnings. Higher earnings means a smaller % of earnings to cover their expenses (and paid in capital).

3)The Fed can influence but cannot control money supply. I just borrowed $10,000 the money supply increased by $10,000...the Fed had no say in my decision. I just paid it back, once again, the money supply changed outside control of the Fed.

4)Of course the Fed doesn't control rates. They wish they did, but they don't. Have mortgage rates moved over the last 6 months? Over the last year? How is that possible? The Fed Funds rate and the Discount rate remain unchanged over that time frame.

 

[Uncensored2008]

Jewish bankers own the Federal reserve bank

Go away mad.

 

[Jos]

Jewish bankers own the Federal reserve bank

Go away mad.

Come back Happy?