Political Ramblings

[kstaven]

The Fed actually is an organization of member banks. It is not really a government entity, but a quasi governmental agency. Getting rid of it is pretty much impossible.

What I object to is the Fed fiddling with the money supply for political purposes. They run the interest rate down so low that people who save cannot make enough money to cover the cost of inflation. And then they have to pay taxes on what little they do earn. No wonder no one saves anymore.

When the Fed sets the discount rate so low to stimulate the economy, China borrows the money cheaply and then uses it to buy our industries. Those jobs then go overseas to China. Not only did we lose jobs, the Fed stimulated the economy of China, not the US.

Remember, Bank of America loaned it's tarp money out to China.

Just wait until china lets all that money float on the markets. It will devalue far enough they will pick up the whole country at fire sale prices. And the people indirectly allowed this to happen because they lost control of the government and establishments they where supposed to control. Every one of us is guilty of allowing it to happen to some degree. Earlier generations because they didn't nip it sooner and where blinded by the good times in the economy and us now because we believe we can't take control our own system and direct the government to work for us.

 

[hemet dennis]

The Fed actually is an organization of member banks. It is not really a government entity, but a quasi governmental agency. Getting rid of it is pretty much impossible.

What I object to is the Fed fiddling with the money supply for political purposes. They run the interest rate down so low that people who save cannot make enough money to cover the cost of inflation. And then they have to pay taxes on what little they do earn. No wonder no one saves anymore.

When the Fed sets the discount rate so low to stimulate the economy, China borrows the money cheaply and then uses it to buy our industries. Those jobs then go overseas to China. Not only did we lose jobs, the Fed stimulated the economy of China, not the US.

Remember, Bank of America loaned it's tarp money out to China.

Is there a link to BOA loaning the TARP money to China ?

What makes you think the FED is fiddling with the money supply for political reasons ?

 

[rufus]

I think it is because politicians sold everyone on the lie that other people have it better than them. There is a large portion of the populace that harbors a lot of envy and greed.

The politicians told them they could live well and let someone else pay the bills. We just don't have enough wealthy people to bleed.

Eventually, even the most skillful liars have to deal with the truth.

 

[rufus]

Is there a link to BOA loaning the TARP money to China ?

What makes you think the FED is fiddling with the money supply for political reasons ?

http://www.councilforamerica.org/news/obama-taxpayers.html

There it is, fourth paragraph down.

And don't you think that the Fed fiddled with the rate to improve the re election chances for Obama?

 

[hemet dennis]

Quote:
China only owns about 8% of our public debt. Not enough to do damage to us they would do more damage to themselves and lose a lot of money.

 

[kstaven]

Did they fiddle with it all out of greed or where they applying bandaids to keep the illusion of prosperity alive and try to keep the whole thing from blowing to bits and watching us all go down? Personally I think it is a bit of all the above. We live under a false economy and still try to hold onto the illusion of eternal growth and prosperity in a finite world. If you really look at what it would take to stop the spiral world wide it is frightening. Everyone out there from corporations to government workers, politicians, right down to the general public would have their standard of living severely down graded. There are realities to the end product none of us want to deal with because it would impact everything we want to believe and shatter our way of living.

 

[hemet dennis]

Quote:
BOA didn't loan money to China, they bought a Chinese bank for $7 billion.

And no I don't think that. If you remember the FED started there QE's before Obama was President. At this time do you think it would be best for the country to do the opposite of what the FED is doing ?

 

[hemet dennis]

Does everyone here know what the FED's job is ? And I mean the people posting now.

 

[kstaven]

China only owns about 8% of our public debt. Not enough to do damage to us they would do more damage to themselves and lose a lot of money.

Do you remember the hunt brothers and their cornering of the silver market? How their actions effected the market as a whole at a time period when silver was a small fraction of international trading and far less than the 8% you speak of. Toppling the dollar with their current diversification would just allow for the buy out of more resources. Yes .. they would take it on the chin for a short period. But like the above example in the end they would come out owning even more.

 

[kstaven]

They are supposed to control extreme swings in the currency. What I am saying is that the system itself is one that is not self sustaining and anything they do is a band aid measure.


The primary responsibility of the Board members is the formulation of monetary policy. The seven Board members constitute a majority of the 12-member Federal Open Market Committee (FOMC), the group that makes the key decisions affecting the cost and availability of money and credit in the economy. The other five members of the FOMC are Reserve Bank presidents, one of whom is the president of the Federal Reserve Bank of New York. The other Bank presidents serve one-year terms on a rotating basis. By statute the FOMC determines its own organization, and by tradition it elects the Chairman of the Board of Governors as its Chairman and the President of the New York Bank as its Vice Chairman.
The Board sets reserve requirements and shares the responsibility with the Reserve Banks for discount rate policy. These two functions plus open market operations constitute themonetary policy tools of the Federal Reserve System.
In addition to monetary policy responsibilities, the Federal Reserve Board has regulatory and supervisory responsibilitiesover banks that are members of the System, bank holding companies, international banking facilities in the United States, Edge Act and agreement corporations, foreign activities of member banks, and the U.S. activities of foreign-owned banks. The Board also sets margin requirements, which limit the use of credit for purchasing or carrying securities.
In addition, the Board plays a key role in assuring the smooth functioning and continued development of the nation's vast payments system [see Fedwire and Payment System Risk Policy].
Another area of Board responsibility is the development and administration of regulations that implement major federal laws governing consumer credit such as the Truth in Lending Act, the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act and the Truth in Savings Act [see Consumer Informationand Community Development].


Obama is just the current man on the stage. This whole issue has built for decades.