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Now, on the other hand, they have this cute little trick called "quantitative easing", in which the feds flood the money supply with new cash to purchase old debt so they can keep borrowing and replace it with new debt. In other words, each time they do that, they devalue each and every hard-earned dollar you make.
And they do this because the Fed buys the bonds from brokers (who in turn make profit) and then the banks who get this money at 0% interest make insane profits and turn around and invest it back into the Fed.
it's really a total shakedown and it's why the government is not really in any rush to pay down the debt and why they continually downplay the short term effects of it.
They are simply buying time off of the middle and lower classes backs.
I read all of the posts in this thread, some of which are truly informative and eye-opening. Because the Feds control so much of the nations assets (I read 38% of the nations banks are in the Federal Reserve but that 38% has most of the nations wealth), are they capable of borrowing money from public-banks to purchase treasury bonds or better yet borrow cash from public-institutions to eliminate foreign debt? I think the Federal Reserve was intended for good purposes but its just abusing its power now; maybe Congress and the President need to create a few laws so they have some power over the Federal Reserve. Its ridiculous how free they seem now, it seems like they can (specifically Ben Bernanke) is so powerful to the point where he decides which way the global economy can sway.
Also can someone explain where the US Treasury plays a roll in everything? And do we have two central banks as it seems we do?
the irony... These banks involved with the treasury, rely on loose regulation and a favorable economic policy-driven environment by the federal government, just as much as the federal government relies upon the federal reserve to continue to borrow 40% of their annual budget. A bit of a conflict of interest, eh?
Just wait for the day there are no buyers into our treasury, that is the "cliff", and the buyers are harder and harder to find.
To your question: They do borrow from the domestic banks, mainly to decrease the money supply which increases interest rates. And the treasury manages the revenue, taxes and so fourth. They are also, in part, responsible for selling US treasury bonds and notes.
the irony... These banks involved with the treasury, rely on loose regulation and a favorable economic policy-driven environment by the federal government, just as much as the federal government relies upon the federal reserve to continue to borrow 40% of their annual budget. A bit of a conflict of interest, eh?
Just wait for the day there are no buyers into our treasury, that is the "cliff", and the buyers are harder and harder to find.
To your question: They do borrow from the domestic banks, mainly to decrease the money supply which increases interest rates. And the treasury manages the revenue, taxes and so fourth. They are also, in part, responsible for selling US treasury bonds and notes.
I guess the Feds aren't concerned about ever running out of investors for Treasury Bonds, huh? The solution to this problem seems so simple, yet so complicated. From what I understand the Federal Reserve basically has the resources itself to pay down the US Debt because of its tremendous assets, but I know its not its job to do that. It seems like the Feds are essentially con-artist, they sell bonds with absolutely nothing backing them and tell those who invested in them that they will get their money back and then-some but that doesn't happen. So eventually investors will have to realize they won't be paid back, right?
Quote:
Originally Posted by JamesGTAIV
Once you start looking into the Fed, you start learning things you're going to HATE. Before you know it, you get so far into the conspiracy (it is one) that you realize London is a corporation and not a city!
I'm not sure if you're being sarcastic or not, but I've always felt that London is really the head-honcho of the world, plays a huge role in the economic sector, and seems to have a underground network of financially tied individuals and corporations. Is London really just a corporation as I've always assumed? Of course its a city, but it seems like it really has a dark side to it regarding the financial sector.
I guess the Feds aren't concerned about ever running out of investors for Treasury Bonds, huh? The solution to this problem seems so simple, yet so complicated. From what I understand the Federal Reserve basically has the resources itself to pay down the US Debt because of its tremendous assets, but I know its not its job to do that. It seems like the Feds are essentially con-artist, they sell bonds with absolutely nothing backing them and tell those who invested in them that they will get their money back and then-some but that doesn't happen. So eventually investors will have to realize they won't be paid back, right?
Uh oh, I think you've cracked the case.
That is why it is a Ponzi scheme. It was a currency with an established value based upon nothing. The only way to maintain the value is to continuously grow our economy. The only way to continuously grow a consumer/service base economy, is to subsidize it via debt spending. (note, a fiat currency could, in theory, work in a production based economy with reasonable spending habits)
And the ONLY way to perpetuate this entire mess is to rely upon an ever-increasing base of investment. Luckily for the US, our dollar is so intertwined with the world economy, they are forced to invest so as to mitigate damage to their own economy.
But those days are soon over, the developing world caught on.
And they do this because the Fed buys the bonds from brokers (who in turn make profit) and then the banks who get this money at 0% interest make insane profits and turn around and invest it back into the Fed.
it's really a total shakedown and it's why the government is not really in any rush to pay down the debt and why they continually downplay the short term effects of it.
They are simply buying time off of the middle and lower classes backs.
The federal reserve is the biggest scam ever. Look back into our the US history... theres a reason people like Andrew Jackson and Thomas Jefferson fought so hard to destroy it, because they knew it was a complete scam that stole money from every american citizen.
Soundbite version (based on the law, etc)
[] A dollar (unit) was defined in the Coinage Act of 1792, as a silver coin
[] An eagle (gold) was defined as a coin with approx. 1/2 ounce gold $10 . 1 oz. coin was a "double eagle" $20
[] A "Dollar Bill" is an IOU, denominated in dollars. Until 1933, it was redeemable, on demand, for "real money"(coin)
[] In 1933, the U.S. government went bankrupt, ceased redeeming its notes, and stole the privately held gold money. FDR and Congress criminalized the possession of constitutional gold coin by "free" Americans.
[] Nixon only told the foreign holders of "dollar bills" that the US would no longer redeem them with coin.
(Suckers...)
[] Since 1933, the U.S. has operated under "emergency rules" that allowed the government to bypass the USCON - by your consent - via FICA. (Contracts can not be impaired by "law", remember?)
[] Title 22 lists the Federal Reserve as the fiduciary agent for the World Bank, IMF, etc, etc, and the U.N. (Surprise!).
[] The Secretary of Treasury is also U.S. governor of the IMF, World Bank,etc, etc, etc - and he shall NOT be paid by the U.S. government (22 USC Sec. 286). He shall be paid by the Fed Res. (oops!)
IMHO, it appears that the Congress and President are stooging for the "creditor", whose fiduciary agent is the "Fed Res". But I may be mistaken. You should read law for yourself - I may have made a mistake.
PS - the debt is impossible to repay, being that it is denominated in dollars, not dollar bills (worthless IOUs). BUT the debt cannot be challenged, pursuant to the 14th amendment, clause 4.
Yup. We're [expletive deleted] !
The Federal reserve system does not belong to US, it should rather be seen as a private entity( the creditor). However, the U.S. government has a certain influence on this structure. The Federal reserve board is appointed by the U.S. President with the approval of the Senate of the Congress. Under U.S. law, the President also has the right to dismiss any managing the FRS, although it should be noted that this provision has never been applied. You should also consider that the fed is a joint stock company, i.e. neither the capital nor share it does not belong to US.
The government borrows from the Federal reserve system, performing the function of the Central Bank of the United States. Instead of money the FRS receives from the US bonds and sells them on the market. But if these bonds are not in demand in the market, they remain under the authority of the FRS and it turns out that the United States in an indebted for themselves, and, moreover, and with percents.
The economy of the country was productive when it is focused on production. 18% of the US GDP belongs to industrial production and agriculture, the main part, which is more than 76% of service sector. And as American producers cannot meet the demand of its own, a huge number of goods imported to America from abroad.
there's always a solution - cut military spending. Here it is necessary to consult with the Ministry of defence. Fleet reduce U.S. impractical. Land army? perhaps you should make the army 75 percent of the professional. That was an element of patriotism in the professional army. Whatever the competitive selection. After 2-3 years from the 25 per cent-you can dial professionals for further service in the intelligence, special forces, police special forces in any law enforcement or intelligence agencies. In America there will always be 25% of young men willing to dedicate themselves to the military profession-even ignoring the fact that their the training manual will be lower than the professional parts. This will reduce military expenditures for the United States as a whole - and raise the combat capability of army. There is another way-war... economic health by this moment is not perfect... not sure that is needed...
you are not surprised at all that all countries in debt to someone ? The banking system in the world based on the FRS sucks States of World all the juices and then unleashes a war. Rating of debtors USA there are about 4-m ten. Leader of Japan... it's pretty Weird.
Last edited by Mihaike; 09-25-2013 at 01:17 PM..
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