What's The REAL Reason We Even HAVE A Fed?

Discussion in 'Economics' started by gnome, Nov 19, 2007.

  1. gnome


    It always amazes me how some people get belligerent over the web... like a school kid calling someone a name [a stranger, even] over the phone.

    Oops.. I thought you meant RhinoGG was a bitch... guess I read that too fast.

    Yes, I'm afraid the Fed is here to stay. And between it and the Gummint, the future looks dire for those 40 and younger.
    #11     Nov 20, 2007
  2. plyka


    #12     Nov 20, 2007
  3. You left out the fact the Federal Reserve is a private corporation that charges interest on the money it loans tO the government.

    Note the money is created out of thin air.

    The interest on the loans are paid by the public in the form of personal income tax. Now if that ain't the biggest all time scam I don't know what is.
    #13     Nov 20, 2007
  4. Here is what you can do the make the system work in your favor.

    Make lager camping contributions to the correct state officials, set up a bank charter. Pay an interest on deposits a little higher than everyone else.

    Now you are set to operate in the fraction reserve baking system. that means you can loan out at interest ten times what you have on deposit.

    Joe six pack deposits his check for $2000.00, you can now loan out $20,000. at interest. Man what a racket that is.
    #14     Nov 20, 2007
  5. If the Fed is SUPPOSED to buffer booms and busts, they've sure been doing a damn shitting job of it. The whole point of the Fed is to EXACERBATE booms and busts - so certain individuals can profit - the 'who' and the 'how' I leave it up to you to figure out

    If there was no Fed, gov spending would be limited to 1) the amount of tax revenue 2) and any bonds they are able to convince the public to buy

    With the Fed in existence, gov can float unlimited # of bonds cause Fed is the automatic buyer (using money Fed printed out of thin air)

    Gnome - don't bother explaining this, if they haven't gotten it by now...they just ain't getting it
    #15     Nov 20, 2007
  6. telozo


    It doesn't really work quite that way. The guy who got the loan will use the money in a way, either pay for something, or deposit it with some other bank. Either way, your checks will come back to you for clearance before you get any interest payment on the money, and you will have to make good for them using your reserves or borrow from the fed.
    #16     Nov 20, 2007
  7. That is the fractional reserve banking system. Yes its more complicated than what I posted. But it all boils down to managing your risk.
    #17     Nov 20, 2007
  8. And when you have the ability to use the 10x factor it sure helps in minimizing that risk.
    #18     Nov 20, 2007
  9. RhinoGG

    RhinoGG Guest

    Perhaps you can then use that interest income to buy some vagisil for your mangina.
    #19     Nov 20, 2007
  10. Gee your real funny. and yes you right interest on free cash sucks. Stock market suck, housing sucks. All thanks to the chicken shit fed.
    #20     Nov 20, 2007