Know The Real Purpose Of The Federal Reserve?

[Grumblenuts]

It's not what you think. Michael Hudson explains in no uncertain terms:

The Federal Reserve and Debt

Ralph does a deep dive into the real purpose of the Federal Reserve and other aspects of the American economy with progressive economist, Michael Hudson. Plus, our resident constitutional scholar, Bruce Fein, joins us to talk about the elected official from New Mexico, who got removed from office be

www.ralphnaderradiohour.com

Ralph Nader: Let me ask you this question. It occurred to me reading your materials, Michael Hudson. What is your message or messages to your economists who are your peers? The professors who are teaching economics and the business economists? You might have separate messages for both.

Michael Hudson: No, I have no message for economists. I don't talk to economists. I talk to thinking people. I talk to foreign government people. I talked to politicians, I talk to many people, but I've stopped talking to economists.

Ralph Nader: What if you were invited to an auditorium full of economists and you had to address them, what would you say?

Michael Hudson: I'd say there's a COVID epidemic, I'm afraid I really can't come. What's the point of talking to them?

Yez. Yez. Quite so. Why talk to pigdogs?

 

[basquebromance]

from 1913 to 2008 the Fed increased the money supply from 5 billion dollars to 850 billion dollars. this happened slowly, in a gently uprising slope. from 2008 till 2010, it printed 1.2 trillion dollars. it printed 100 years worth of money in 2 years

 

[basquebromance]

nothing increases the wealth gap more than the fed printing money

 

[Toddsterpatriot]

It's not what you think. Michael Hudson explains in no uncertain terms:

The Federal Reserve and Debt

Ralph does a deep dive into the real purpose of the Federal Reserve and other aspects of the American economy with progressive economist, Michael Hudson. Plus, our resident constitutional scholar, Bruce Fein, joins us to talk about the elected official from New Mexico, who got removed from office be

www.ralphnaderradiohour.com

Yez. Yez. Quite so. Why talk to pigdogs?

Lender of last resort.

 

[Grumblenuts]

Lender of last resort.

Said the lost soul who still listens to economists.

 

[Toddsterpatriot]

Said the lost soul who still listens to economists.

Says the guy who is listening to a Marxist economist. DURR

 

[Grumblenuts]

from 1913 to 2008 the Fed increased the money supply from 5 billion dollars to 850 billion dollars. this happened slowly, in a gently uprising slope. from 2008 till 2010, it printed 1.2 trillion dollars. it printed 100 years worth of money in 2 years

That's nothing compared to the debt created now due to bailing out the worst banks back then instead of just taking them over.

So if this doesn't appear in the money supply itself; it's all done technically in a swap agreement where the bank will make, let's say, a takeover loan. And how does it get the money without reserve? Well, it'll take its packaged mortgages, or its credit card loans or whatever, or its junk mortgage loans, and deposit them with the Federal Reserve, and it'll use the Federal Reserve deposit and it will be as if a regular depositor walked into the bank and lent them enough money to make the loan. So it's all done with a technicality that the Federal Reserve is very careful not to explain to people how the system works and it's not really taught in the monetary textbooks. You really have to work in the field to follow it day by day.

There are some sites that follow it, like Wall Street On Parade (A Citizen Guide to Wall Street wallstreetonparade.com) goes into the nitty-gritty. And Randy Wray at the Levy Institute did a whole study of quantitative easing where he actually subpoenaed and got access to the $29 trillion worth of loans that the Fed kept making. And what the Fed did in 2008, as a result of the junk mortgages and of the wave of financial fraud, Citibank was broke. It was insolvent. And yet the Federal Reserve, through Tim Geithner, who was a protégé of the Citibank's head, Robert Rubin, who had been Secretary of the Treasury under Clinton, made sure that the most crooked banks were kept in business by the Fed—Citibank, Bank of America, Countrywide—these were the worst offenders and the government could have taken them over, bailed out all of the insured depositors, and turned them into public banks that would have enabled Citibank and others to make loans for the kind of thing that you just mentioned, for public infrastructure.

Ralph Nader: At lower prices too.

Michael Hudson: Yeah, that’s the whole point.

 

[Toddsterpatriot]

That's nothing compared to the debt created now due to bailing out the worst banks back then instead of just taking them over.

What debt was created to bail them out?
Why do you feel less debt would have been created by taking them over?

 

[Toddsterpatriot]

That's nothing compared to the debt created now due to bailing out the worst banks back then instead of just taking them over.

the government could have taken them over, bailed out all of the insured depositors, and turned them into public banks that would have enabled Citibank and others to make loans for the kind of thing that you just mentioned, for public infrastructure.

LOL!
That'd have been an awesome fucking idea.
Public banks always make better lending decisions than private banks.
DURR

Just what we need, a bank lending tax dollars to build public infrastructure.