Is The Fed Reserve Running Out Of Time?

[jackflash]

Former congressman Dr. Ron Paul has a chat with a Kitco News anchor about the viability of the fed reserve. Everything from corruption to debt spending(devaluation of purchasing power), foreign dependency on the fed notes, congre$$, & even the pentagon/military Industrial Complex & the endless wars abroad are brought up & discussed as time allows. With .999 gold bullion approaching $3000.00 for one troy ounce there is currently concern about the both the short term & long term viability of the fed reserve.

 

[P F Tinmore]

The constitution gives congress the authority to create our own money. This is at no cost. There is no money to pay back and no interest to pay.
So then, why do we borrow money to be repaid with interest?

 

[wamose]

Ron hated the Fed forever. I'm not crazy about it either. Hopefully Elon and Vivek can downsize our government enough to start paying down our debt but then will the Fed lower rates to compensate for lower employment? And will that further devalue our dollar? And maybe it's the Fed's meddling that ultimately causes monetary instability. Tricky stuff.

 

[P F Tinmore]

No problem paying off the debt. Whenever a bank gets a Federal Reserve note, it sends it back to The Fed.

Then the government replaces it with a United States note.

Problem solved. The Fed gets their money back.

 

[P F Tinmore]

FYI

 

[ZestolPastilevsky]

Yes, but not as fast as people think. That said, anyone telling you that the debt, "doesn't matter" or is, "under control" is at best a dullard, and at worst a liar. If it was under control it wouldn't have skyrocketed. A 600% increase since the start of the century is not, "under control." And the notion that we can just get away with that sort of financing forever is nonsensical. It simply defies common sense. HOWEVER, doomsday prophets claiming that the US will officially declare bankruptcy anytime soon (next 10 years or so) are likely misguided. The problem is, of course, further exacerbated by de-dollarization that is slowly but surely taking place everywhere across the globe.

 

[Blaster]

I own precious metals.

 

[kyzr]

The constitution gives congress the authority to create our own money. This is at no cost. There is no money to pay back and no interest to pay.
So then, why do we borrow money to be repaid with interest?

...so we don't have to use a wheelbarrow to carry that money to buy a loaf of bread.

 

[kyzr]

Yes, but not as fast as people think. That said, anyone telling you that the debt, "doesn't matter" or is, "under control" is at best a dullard, and at worst a liar. If it was under control it wouldn't have skyrocketed. A 600% increase since the start of the century is not, "under control." And the notion that we can just get away with that sort of financing forever is nonsensical. It simply defies common sense. HOWEVER, doomsday prophets claiming that the US will officially declare bankruptcy anytime soon (next 10 years or so) are likely misguided. The problem is, of course, further exacerbated by de-dollarization that is slowly but surely taking place everywhere across the globe.

Crypto-currency will keep the Fed on its toes, the Fed can't just print money anymore. Congress and the Fed need to work together to get the $35T and $1T in interest on a "sustainable" path. I hate when Chair Powell says congress' spending is on an "unsustainable path" and congress ignores him and keeps increasing spending and borrowing.

 

[ZestolPastilevsky]

Crypto-currency will keep the Fed on its toes, the Fed can't just print money anymore. Congress and the Fed need to work together to get the $35T and $1T in interest on a "sustainable" path. I hate when Chair Powell says congress' spending is on an "unsustainable path" and congress ignores him and keeps increasing spending and borrowing.

You say "can't." I think you mean to say, "shouldn't." As you yourself pointed out, Powell says its unsustainable...and then keeps doing it. I'm not really sure about crypto-currency. In fact, I'm very skeptical. It's more like a share in a company than a currency. How many people spend it? Why would you spend something which might be worth twice as much tomorrow? People just buy and hold it, like a stock. The problem is that it's a stock in a company that doesn't do anything, and has no assets.

Another issue with fixing this problem is that I think people are very used to things being the way they are now, not realizing that what we have now is financed by a completely bunk method of financing. Imagine running the country the way you run your own personal finances. You earn. And you spend less than you earn, leaving some for a rainy day. It's nice, and safe. But the general public wants to see BIG GROWTH, HUGE GAIN$, MA$$IVE PROFIT$, not realizing that the reason they see that is because we've basically taken out an enormous loan. It's the difference between some guy earning $20 for an hour's work, and a guy going to a loan shark, borrowing $100, and then acting like he made $100 in 20 minutes.

 

[luiza]

concern about the both the short term & long term viability of the fed reserve.

If the people ever do take on the Fed Reserve that could be the Deep State's last stand .

I find it hard to envisage, particularly since the new Jewish President, Mr Trump , will not want to antagonise his blood brethren, the International Settlement Bankers, who rule all of us .

 

[kyzr]

You say "can't." I think you mean to say, "shouldn't." As you yourself pointed out, Powell says its unsustainable...and then keeps doing it. I'm not really sure about crypto-currency. In fact, I'm very skeptical. It's more like a share in a company than a currency. How many people spend it? Why would you spend something which might be worth twice as much tomorrow? People just buy and hold it, like a stock. The problem is that it's a stock in a company that doesn't do anything, and has no assets.

Another issue with fixing this problem is that I think people are very used to things being the way they are now, not realizing that what we have now is financed by a completely bunk method of financing. Imagine running the country the way you run your own personal finances. You earn. And you spend less than you earn, leaving some for a rainy day. It's nice, and safe. But the general public wants to see BIG GROWTH, HUGE GAIN$, MA$$IVE PROFIT$, not realizing that the reason they see that is because we've basically taken out an enormous loan. It's the difference between some guy earning $20 for an hour's work, and a guy going to a loan shark, borrowing $100, and then acting like he made $100 in 20 minutes.

1. Powell keeps printing money because he has to to cover the Budget Deficit that the stupid pols keep making. What options does he have? Print money and create inflation or borrow money and create inflation.

2. I heard "experts" discussing crypto as an alternative to the dollar to keep the Fed honest. The Fed would be required to keep a basket of crypto like they hold gold in Ft. Knox. It is a "currency" because there is no asset value. Businesses are starting to use it as a hedge in borrowing contracts, as a form of collateral. Borrow 10% more from us, we buy crypto and in 4-years we cash in.

3. I'm hoping that Elon and Vivek straighten out the countries' finances. If they cut $2T from the Budget, and cut the size of government down to the "right size" that should help get the finances on the right track. Better than seeing the interest on the Debt exploding upward.

 

[P F Tinmore]

...so we don't have to use a wheelbarrow to carry that money to buy a loaf of bread.

A dollar is only worth a few cents now. With the Fed.

 

[Toddsterpatriot]

The constitution gives congress the authority to create our own money. This is at no cost. There is no money to pay back and no interest to pay.
So then, why do we borrow money to be repaid with interest?

The constitution gives congress the authority to create our own money. This is at no cost.

The Fed creates money at no cost.

There is no money to pay back and no interest to pay.

What money do you have to pay back?

So then, why do we borrow money to be repaid with interest?

I have loaned the government money. The government has to pay me back with interest.

 

[Toddsterpatriot]

No problem paying off the debt. Whenever a bank gets a Federal Reserve note, it sends it back to The Fed.
View attachment 1045213
Then the government replaces it with a United States note.
View attachment 1045215

Problem solved. The Fed gets their money back.

You pay more interest on the Federal Reserve Note than you pay on the United States Note?

How much interest do you pay? Who collects it? How?

 

[Toddsterpatriot]

1. Powell keeps printing money because he has to to cover the Budget Deficit that the stupid pols keep making. What options does he have? Print money and create inflation or borrow money and create inflation.

2. I heard "experts" discussing crypto as an alternative to the dollar to keep the Fed honest. The Fed would be required to keep a basket of crypto like they hold gold in Ft. Knox. It is a "currency" because there is no asset value. Businesses are starting to use it as a hedge in borrowing contracts, as a form of collateral. Borrow 10% more from us, we buy crypto and in 4-years we cash in.

3. I'm hoping that Elon and Vivek straighten out the countries' finances. If they cut $2T from the Budget, and cut the size of government down to the "right size" that should help get the finances on the right track. Better than seeing the interest on the Debt exploding upward.

Powell keeps printing money because he has to to cover the Budget Deficit that the stupid pols keep making.

Recent balance sheet trends

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

Powell has been reducing the balance sheet for about the last 18 months.

 

[22lcidw]

The Federal Reserve is privately owned, and the owners are rich. The politicians though create the debts to stay in power. Fiat currency has great highs. And great lows. Supposedly in good times governments should have a balanced budget. In downturns deficit spending greases the wheels to spur the economy. Then when the good times return keep the government politicians should make sure it is balanced. They do not anymore. Not an easy thing as there is a lot of tits to suckle off of and a lot of corruption with it.

 

[Toddsterpatriot]

The Federal Reserve is privately owned, and the owners are rich. The politicians though create the debts to stay in power. Fiat currency has great highs. And great lows. Supposedly in good times governments should have a balanced budget. In downturns deficit spending greases the wheels to spur the economy. Then when the good times return keep the government politicians should make sure it is balanced. They do not anymore. Not an easy thing as there is a lot of tits to suckle off of and a lot of corruption with it.

It's part of the US government.
There are no private owners.

 

[sparky]

I own precious metals.

I own guns & livestock...... ~S~

 

[sparky]

It's part of the US government.
There are no private owners.

Sorry Todd, but it's neither federal, nor a reserve......~S~