No, it's not, and we have an existence proof that it isn't. The plain fact is, life under the Fed has been extremely good for a very very long time, so either the Fed is doing something right, or the Fed just isn't that important in a US-like system of governance.
Again, you're wrong. If you read the auditor's statement and Note 4, you will realize that. Firstly, the audits are conducted in accordance with the standards of the Public Company Accounting Oversight Board. Secondly, the differences between the guidelines provided by the FRB Board of Governors (FAM) and GAAP relate to presentation of SOMA holdings and other technical concerns. Moreover, guidelines set forth in the FAM are a matter of public record. Please do refrain from talking about things you don't even want to try to understand. As I keep asking you, what specifically do you want to know that you don't already? At any rate, we'll never agree on this, 'cause you don't understand what I am trying to tell you. I urge you to consider that your tax-paying ability is also collateral for whatever future borrowing you might want to do. Are you happy to raise your own long-term borrowing rates, just because you have a conspiracy theory? Read Wayne Angell's excellent argument for why it makes sense to restrict some aspects of the Fed's function. I repeat you don't understand basic economics. Moreover, you don't understand how the money mkts work. Currency "under the Fed" doesn't come with anything attached. Money creation is not necessarily through debt, 'cause nominal GDP is, obviously, not constant. I don't need to research anything, 'cause, guess what, I trade in this mkt. I know how money circulates in the system. Your comments tell me you have no clue. At any rate, let's stop this useless back 'n forth. You have a political agenda, so there's nothing I can say that you will actually be willing to listen to. Let's just choose to respectfully disagree.
If everything is above board and so rosy, why is the world in such a financial mess? Perhaps the truth is we are all imbeciles and what we don't understand is the fact that we are quite simply stupid and therefore unable to comprehend why everything is just fine the way it is.
It's not all above board and rosy... When did I ever say that? The only thing I keep saying is that it's silly to accuse the Fed of single-handedly causing all the world's ills. We're collectively to blame for the mess we got ourselves into. We all benefited, in one way or another, on the upside. We will all pay on the downside. How these costs get distributed is what we're all debating, 'cause, guess what, nobody wants to pay and blames "the other guy". Generally, unlike Misthos and Anaconda, I choose to believe that the system we have, just like our other institutions, is flawed, but fundamentally suits modern society best. I don't want to tear it down, 'cause I believe it's a bloody process. All I want is to fix the flaws in the system to make it more robust, so that it can survive the shocks it's subjected to. On that note, after another painful day, I'm outta here. Peace.
No worries about tearing it down. If you haven't noticed, it's collapsing (slow motion mostly, at other times fast) on its own. And something new will emerge. That's when we have to roll up our sleeves and make sure it's an equitable and sustainable system.
I appreciate your sentiment and ofcourse just like anybody else, you are perfectly entitled to your beliefs. However from where I'm standing, I tend to consider that the current system requires just a little bit more than a few tweaks here and there to make it workable, for the majority to be contented. Although the topic of the thread revolves around the Fed, I don't personally blame for Fed for everything and I agree that we are all to blame here, and I would also suggest that some people have benefited a lot more than others. If we need a government to direct us, then surely this government must at the very least maintain financial integrity. Peace out.
You have no idea what I know or what I don't know. Frankly, your comments are laughable, yet entertaining, but that is besides the point. I made certain comments regarding money creation under the current system and you fail to address them, you just make insults. I asked a simple question regarding money creation under the central bank scheme which dominates the world and has a very long history. You can explain at any time that money is not created as a debt instrument, although I think that will be quite hard when the paper version of the currency states quite clearly that it is a Note of the Federal Reserve, not just a US dollar bill of the U.S. Treasury. Your whole take on the audit is funny, simply because I am approaching the issue from the standpoint of an angel investor looking at a company. The standards & guidelines in the Fed audits are big time red flags. I'm not even sure how you start to equate the forced and highly excessive taxes as some kind of benefit to the people to borrow easily. I do not even want to get into the hidden inflation tax which is set by this trend. But listen, you're the expert because you trade the Treasury market, and if that is the qualifications required, then I guess you hit the mark, while I have no clue. And that's fine, you stick to the elaborate PR...oops..documentation by the Reserve Banks and I will keep to looking at the obvious.
I laughed at this as well. So tell me then, oh almighty intellect. If the creation of this money is not through debt then what is it? Fairy dust? Some secret dragon hoard that the federal reserve doesn't want us auditing? The mere fact that you say "I don't need to research" just makes your idea ever more laughable. If they didn't want us to know what's going on then what are the Federal Reserve so afraid of exactly, I'm very convinced that they simply don't want us to know what their exact figures and holdings are because it could well be almost 0. Why do you think that the U.S have been cozying up to China so much lately and Obama has been in negotiations with them. The U.S owes almost over a trillion dollars in debt to China from what I remember so as far as I'm concerned realistically the U.S government and Federal Reserve has no money of its own.
Whatever, gents (I mean Anaconda and Lethn)... As I keep saying, there's no point in arguing with someone who is not willing to listen to what you're saying. I keep telling you something that is blindingly obvious, at least to me. In response you give me generalities that, clearly, make a lot of sense to you, but, to me, are completely irrelevant. So fine, I am happy to have entertained myself and you folks. If I have inadvertently insulted, I apologize, as that is not my intent. It was solely because I was getting impatient. Peace to y'all.
I admittedly haven't read much of this thread, but there are many ways to create money/wealth outside of debt. Debt is just the easiest. For the obvious you just need to look to basic macroeconomics: how does the economy grow when a new worker is born? It's not via taking a loan on that new worker's lifetime salary...