I think the reason this thread is so active and well contributed to right now is that we, having been trading long enough to see, know the Fed will burn everything down in the name of banks and I guess the stock markets (if they can). But they will burn it all down. And we are here, interested in how they will burn it down and when. Allowing the US dollar to burn will hasten this by leaps and bounds. But, they probably will try to convert us over to a "completely controlled" digital currency. At that time I will be living in another country and using another currency. They really didnt see bitcoin coming. It came from japan because Japan is well further down this road. The posts in this thread about Japan are SPOT ON.
The Fed is an essential part of money management, banking regulation, transaction clearing, international commerce, foreign exchange, and many other functions. A Nation can not function without a Central Bank anymore than it can without a Treasury. Without either one of these critical agencies -- they are really one agency made to look like two to protect monetary policy from too much political tampering -- you do not have a modern nation; you are back in the 19th century, with one banking panic after another, and people lugging sacks of gold around. .
Not only that, but how can these municipalities afford the increasing interest rates with the deficits they're seeing and will probably continue to see? What did the budget for? I'm clearly missing the long term picture, because this is headed down a scary path if we don't start fixing our finances. 2.2% on the 5 year is going to be bloody from what i've been reading. This has everyone scratching their heads. They will be the last to scream fire since they have so much skin in the game. True
So the Fed doesn't do anything in transaction clearing? That whole fedwire thing that's literally responsible for every wire in the U.S. is a figment of our friend @piezoe's imagination? I'm trying to figure out if you once applied for a job at the Fed and got rejected so you're bitter, or if you really don't understand what the Fed does?
Here is something we should all think about and be grateful for. Because day to day banking transactions are processed through bank reserve accounts by the Fed, you do not need to have the slightest concern about the solvency of the bank you write a check on. So long as you have deposited funds to cover your check it will ALWAYS clear regardless of the solvency of your bank. That wasn't always the case before we had a federal reserve banking system. How much is it worth to you not to have to be concerned whether your own bank is well run and solvent. It doesn't matter. Your checks will always clear and your deposits will always be secure, because of the Fed system and FDIC! * *Tid bit of useless knowledge-- check clearing used to be handled , at night!, in the basement of the Dallas Fed Branch, maybe it still is, electronically of course.