The Fed

[g5000]

Tax expenditures are DOUBLE all our welfare programs put together.

 

[progressive hunter]

Yes, sooner or later, you thieves blame the poor for our problems. That's what you have been taught to do.

It never fails.

I am one of the poor,, I just dont take from others for my existence,,

 

[progressive hunter]

Tax expenditures are DOUBLE all our welfare programs put together.

people that pay into the system are taking more than people that dont put in and only take out??
thats some crazy shit right there,,

 

[BluesLegend]

You can thank Trump and all the presidents before him.

Ah, yeah and all prior congresses captain obvious.

 

[BluesLegend]

I've done it, balanced the budget plus a huge surplus...we just need to convince all Democrats to migrate to Canada!

 

[Toddsterpatriot]

Just to give an example of how deeply corrupted our system of government is, here's a question about the fed that opened my eye's several years ago.

The US constitution grants the congress the authority to create money without interest. So why does it borrow from the Federal Reserve, with interest. This was a question a 12yr old asked a politician several years ago. It's on Youtube. I've spent over and hour trying to find it. But it's either buried or they've removed it.
Update: I think this is the girl. (She's Canadian. But their system is about like ours)

The US constitution grants the congress the authority to create money without interest. So why does it borrow from the Federal Reserve, with interest.

It borrows from anyone who buys a T-bill, T-note or T-bond. At interest, of course.

Printing instead of borrowing would make Bidenflation look like nothing.

 

[BluesLegend]

people that pay into the system are taking more than people that dont put in and only take out??
thats some crazy shit right there,,

Dems desperately try to justify government confiscating OUR money. If they had their way everyone would be limited to a government mandated max income.

 

[Toddsterpatriot]

But what we could do, is just stop borrowing from it, unless there's an actual emergency.

How much do we borrow from the Fed? How much do we borrow in total?

 

[Toddsterpatriot]

It allowed banksters to create money out of thin air, lend it out, then collect interest on that which cost them nothing to create.

Banks create money when they loan out deposits.

Every loan is fully funded.

 

[gipper]

Biden got an infrastructure bill passed, and it is already creating a lot of jobs. Manufacturing jobs are exploding.

The great real estate mogul Donald Trump failed to achieve that promise.

And yes, I blame every American citizen for our debt. See my post about tax expenditures.

You demand GDP growth and let our politicians get away with achieving it by spending more. Government spending is a significant part of GDP.

And look who radically increased government spending as a percentage of GDP, BEFORE Covid, and then crowed about GDP growth:

I knew your partisanship would reveal itself. Duopoly dupes are the dumbest people, except for warmongers.

 

[bendog]

Keynes said a government should be REDUCING debt during prosperity and only increase debt during downturns.

No one follows that advice. Not for a very long time.

In fact, our politicians have figured out the easiest way to boost GDP is to spend more money and get us deeper and deeper into debt.

That's what Trump did, that's what Obama did, that's what every president going way back has done.

Rather than do the heavy lifting to grow our economy the right way, they cheat. They spend like drunken sailors and then crow how great they are at growing the economy.

It's all a big con, and will one day destroy us.

Yeah, well the pt I tried to make is just that having politicians control interest rates would be insane, because we can see how they manage debt. I didn't want to derail the thread with a fed reserve discussion, but I see the thread was derailed anyway.

As for the fed reserve banking system, it does not ... at least in theory ... buy treasury bills invest in US debt. Rather, when it "buys" treasury bills, it increases the amt of M2 (or money) in circulation which causes interest rates to fall, because banks face a "borrowers' market" for loans (because more lenders want to lend).

Conversely, when the fed reserve system "sells" treasury bills, it decreases the amt of M2, because investors ... in theory ... buy the tbills with their money, and that causes rates to go up, because there's less money in circulation because the fed banks took investor money for tbills. So more people compete for loans.

IF there was no fed reserve system, AOC and Bernie and Mike "Jesus And Trump chose Me cause I'm special" Johnson would control taxes, spending, interest rates we pay on debt and how much money is in M2. If one doesn't like the fed reserve system, that's fine. But find a better idea first, and having pols in charge before elections is NOT a good idea.

AOC's theory of banking has some simplistic sense. If we have inflation, it's because there's too much M2. (that's indisputably true). So, AOC would simply RAISE TAXES ON THE RICH .... which would reduce M2, if the new taxes went to reduce a budget deficit. (that too in indisputedly true). But we all know the dems and gop would SPEND IT.

But as a college professor (extreme lib and gay, who also toted an M-1 in Africa and up Italy) told me in the 1970s, Marx was a helluva an economist, but a shitty judge of human nature. LOL

 

[g5000]

Yeah, well the pt I tried to make is just that having politicians control interest rates would be insane, because we can see how they manage debt.

As for the fed reserve banking system, it does not ... at least in theory ... buy treasury bills invest in US debt. Rather, when it "buys" treasury bills, it increases the amt of M2 (or money) in circulation which causes interest rates to fall because banks face a "borrowers market" for loans (because more lenders want to lend).

Conversely, when the fed reserve system "sells" treasury bills, it decreases the amt of M2, because investors ... in theory ... buy the tbills, causes rates to go up, becuase there's more competition from loans.

IF there was no fed reserve system, AOC and Bernie and Mike "Jesus And Trump chose Me cause I'm special" Johnson would control taxes, spending, interest rates we pay on debt and how much money is in M2. If one doesn't like the fed reserve system, that's fine. But find a better idea first, and having pols in charge before elections is NOT a good idea.

Exactly.

"Perfect is the enemy of good."

 

[g5000]

I knew your partisanship would reveal itself. Duopoly dupes are the dumbest people, except for warmongers.

That's all you got? You can't refute the facts. Too bad.

 

[ThisIsMe]

Exactly what would the government do if there was a run on a bank?

The Federal Reserve exists as a backstop for banks.

You know who the backstop was during the 1907 panic?

JP Morgan. A private individual.

The government never performed the job the Federal Reserve does.

But isn’t that what the fdic was created for? I mean, the cotus says that the government has the power to coin money and regulate it. I’ve not seen an ammendment to the cotus that says they can give that power to someone else.

 

[g5000]

But isn’t that what the fdic was created for?

No. The FDIC serves an entirely different purpose.

I mean, the cotus says that the government has the power to coin money and regulate it. I’ve not seen an ammendment to the cotus that says they can give that power to someone else.

Federal Reserve Act - Wikipedia

en.wikipedia.org

The Panic of 1907 proved the need for a central bank.

 

[bendog]

Exactly.

"Perfect is the enemy of good."

Thanks, just trying to keep it real. Oddball is correct that during the Quantative Easing, the Fed was buying A LOT of debt. Economists - not "liberal" economists - were concerned the fed had expanded its mission.

"
On 19 June 2013, Ben Bernanke announced a "tapering" of some of the Fed's QE policies contingent upon continued positive economic data. Specifically, he said that the Fed could scale back its bond purchases from $85 billion to $65 billion a month during the upcoming September 2013 policy meeting.[49][50] He also suggested that the bond-buying program could wrap up by mid-2014.[51] While Bernanke did not announce an interest rate hike, he suggested that if inflation followed a 2% target rate and unemployment decreased to 6.5%, the Fed would likely start raising rates. The stock markets dropped by approximately 4.3% over the three trading days following Bernanke's announcement, with the Dow Jones dropping 659 points between 19 and 24 June, closing at 14,660 at the end of the day on 24 June.[52] On 18 September 2013, the Fed decided to hold off on scaling back its bond-buying program,[53] and announced in December 2013 that it would begin to taper its purchases in January 2014.[54] Purchases were halted on 29 October 2014[55] after accumulating $4.5 trillion in assets.[56]

March 2020: QE4.

Further information: Economic impact of the COVID-19 pandemic
Increase in US Federal Reserve assets in response to COVID-19 pandemic[57]
The Federal Reserve began conducting its fourth quantitative easing operation since the 2008 financial crisis; on 15 March 2020, it announced approximately $700 billion in new quantitative easing via asset purchases to support US liquidity in response to the COVID-19 pandemic.[58] As of mid-summer 2020 this resulted in an additional $2 trillion in assets on the books of the Federal Reserve.[59]

We should have just taken "the haircut" back in 2013. The fed's balance sheet is around 8 trillion, but it is falling .... but I'm not sure we'll get that monkey back in its cage.

 

[gipper]

That's all you got? You can't refute the facts. Too bad.

What facts?

 

[ThisIsMe]

No. The FDIC serves an entirely different purpose.

Federal Reserve Act - Wikipedia

en.wikipedia.org

The Panic of 1907 proved the need for a central bank.

Sure I get it…but are you suggesting we can just make “acts” to go around the cotus?

Fdic was created by congress to insure people’s deposits. It’s supposed to be there to assist people in the event of a panic. Your money is insured, which means, at least up to $250,000?..that it will be there

 

[Lesh]

Sure I get it…but are you suggesting we can just make “acts” to go around the cotus?

Fdic was created by congress to insure people’s deposits. It’s supposed to be there to assist people in the event of a panic. Your money is insured, which means, at least up to $250,000?..that it will be there

The Fed has a much more macro purpose

 

[The Sage of Main Street]

Lol. Who demands more? The MIC?

You now blame average Americans for the national debt. Lol. Don’t you know anything about income inequality?

Americans don’t even have HC. How about higher education? How about quality infrastructure?

Yet trillions have been spent.

Serfs Up!

Taxing away all inheritances over $100,000 would cover both the military and the infrastructure without the 99% having to pay anything for it. This worship of richkids is totally against what America used to be all about. Being a loyal peasant groveling before an HeirHead master is not the American Way.