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Old 06-16-2020, 07:35 AM
 
2,600 posts, read 990,345 times
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Quote:
Originally Posted by Hoonose View Post
The money the Fed creates is not taken from the Treasury.
So it’s counterfeit? Counterfeiting is a crime specifically listed in the Constitution.
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Old 06-16-2020, 08:08 AM
 
10,547 posts, read 4,580,802 times
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Quote:
Originally Posted by TimAZ View Post
So it’s counterfeit? Counterfeiting is a crime specifically listed in the Constitution.
Most of our money is created by banks.
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Old 06-16-2020, 08:12 AM
 
Location: Washington Park, Denver
8,082 posts, read 7,505,926 times
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Quote:
Originally Posted by TimAZ View Post
Yes indeed, and in the context of the U.S. Constitution Mr. Bernanke’s boastful quip about digital money might raise some eyebrows:

“No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law;”
(Art 1, sec IX)
Oooooo scary! Let’s take a statement by a guy who hasn’t been on The Fed since 2014 and twist it. Boogey man Ben!
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Old 06-16-2020, 08:52 AM
Status: "Mi amigo es mi fan." (set 3 days ago)
 
2,831 posts, read 799,272 times
Reputation: 4071
Quote:
Originally Posted by SkyDog77 View Post
Oooooo scary! Let’s take a statement by a guy who hasn’t been on The Fed since 2014 and twist it. Boogey man Ben!

2006-2007 - Bernanke - subprime is nothing to worry about.

2017 - Yellen - no new financial crisis in our lifetime.

2019 - Powell - nothing to worry about on the horizon.
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Old 06-16-2020, 08:55 AM
 
Location: Washington Park, Denver
8,082 posts, read 7,505,926 times
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Quote:
Originally Posted by heart84 View Post
2006-2007 - Bernanke - subprime is nothing to worry about.

2017 - Yellen - no new financial crisis in our lifetime.

2019 - Powell - nothing to worry about on the horizon.
Yellen and Powell were speaking specifically about the state of the banking/financial industry. They weren’t wrong.

An economic shock from COVID is not the same as a structural issue in the financial sector that they were talking about. In fact, I would argue that it is BECAUSE the financial sector was relatively healthy that we are not in a panicked state right now.

Understanding the difference between an economic shock and a financial shock is critical.
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Old 06-16-2020, 08:58 AM
Status: "Mi amigo es mi fan." (set 3 days ago)
 
2,831 posts, read 799,272 times
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Quote:
Originally Posted by SkyDog77 View Post
Yellen and Powell were speaking specifically about the state of the banking/financial industry. They weren’t wrong.

An economic shock from COVID is not the same as a structural issue in the financial sector that they were talking about.

Structural liquidity issues were already showing pre-virus. Repo market crisis went from being a "one week" problem according to the Fed to an "indefinite" one last fall into the winter. That is not "normal."
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Old 06-16-2020, 08:59 AM
 
Location: Washington Park, Denver
8,082 posts, read 7,505,926 times
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Quote:
Originally Posted by heart84 View Post
Structural liquidity issues were already showing pre-virus. Repo market crisis went from being a "one week" problem according to the Fed to an "indefinite" one last fall into the winter. That is not "normal."
We disagree on what the repo market issues meant.
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Old 06-16-2020, 09:28 AM
 
2,600 posts, read 990,345 times
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Quote:
Originally Posted by Hoonose View Post
Most of our money is created by banks.
And the Fed, without any legislative backing, recently eliminated the traditional 10% reserve requirement for those money center banks — yeah, that’s close to counterfeiting. Congress could do something, but as Senator Durbin said long ago, “the banks own this place.”
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Old 06-16-2020, 10:22 AM
 
10,547 posts, read 4,580,802 times
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Quote:
Originally Posted by TimAZ View Post
And the Fed, without any legislative backing, recently eliminated the traditional 10% reserve requirement for those money center banks — yeah, that’s close to counterfeiting. Congress could do something, but as Senator Durbin said long ago, “the banks own this place.”
As fractional banking is now passe' this doesn't surprise me.

https://fred.stlouisfed.org/series/EXCSRESNS
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Old 06-16-2020, 11:24 AM
 
Location: Ohio
22,065 posts, read 15,418,972 times
Reputation: 18516
Quote:
Originally Posted by tijlover View Post
Let's see, Argentina has defaulted on their sovereign debt 9X, a tenth time coming, and, from what I understand, people are still breathing, eating, working down there.

Lucky us, we can sell of the Hawaiian and Alaska islands one by one.

I've never worried about our foreign debt.
There is a difference. Their "sovereign debt" was bank loans.

The US sovereign debt is not bank loans, it's treasury securities.

It isn't just semantics.

There is a technical and legal difference between bank loans and securities.

Quote:
Originally Posted by 1ondoner View Post
Obviously you did not read the article and if you did, you definitely did not understand what was written.
I didn't have to read the article, because anyone who mentions "Zimbabwe" in the context of the US totally is clueless.

I notice you didn't have the guts to address the two issues I raised, so your silence is tantamount to tacit agreement.

Why don't you invite your esteemed professor here so I can stomp on him?
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