understand the way the FED works

Discussion in 'Economics' started by z32000, Aug 30, 2007.

  1. z32000

    z32000

    I'm just learning how the FED's work and I read an article that said..

    Although the Fed has the power to do so, changing the amount of reserve cash a bank has to have can have dramatic effects on the economy; for this reason, this tool is rarely used. The Fed more often alters the supply of reserves available by buying and selling securities. When the Fed sells securities, it reduces the banks' supply of reserves. This makes interest rates go up. When the Fed buys securities, it increases the banks' supply of reserves. This makes interest rates go down.



    When it says the Fed's sell securities, are they refering to the Fed sell more Treasury bills, notes and bonds? or do they also sell stock?
     
  2. z32000

    z32000

    also question 2,

    it says in order for the FED's to control the money supply, they first buy bank securities and then give them credit. What are bank securities? are they talking about say Bank of America stocks?
     
  3. When the Fed buys/sells securities, it's generally T-Bills, not notes, bonds nor stocks. The P.P.T. buys/sells stocks.
     
  4. The Fed is not federal and does not have much of a reserve, it is privately owned by European families commonly known as central bankers, it is a shameful scam perpetrated on the American public to steal their possessions by inflating and contracting money supply and hold the government to ransom and jack up their debt for peoples taxes
     
  5. The Rothschilds aren't bad people. If it weren't for the Fed, we'd all be living an "Amish" lifestyle.
     
  6. If it weren't for the Fed you would only have capitol gains tax, a steady economy and no debt
     
  7. [​IMG]
     
  8. Edited for accuracy
     
  9. Who are the two eggheads>
     
  10. Where or where do these people come from??? Sheesh...
     
    #10     Aug 31, 2007