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After Raising Rates Once During The Obama Years, The Fed Promises Constant Rate Hikes During The Trump Era

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janet-yellen-public-domainNow that Donald Trump has won the election, the Federal Reserve has decided now would be a great time to start raising interest rates and slowing down the economy.  Over the past several decades, the U.S. economy has always slowed down whenever interest rates have been raised significantly, and on Wednesday the Federal Open Market Committee unanimously voted to raise rates by a quarter point.  Stocks immediately started falling, and by the end of the session it was their worst day since October 11th.

The funny thing is that the Federal Reserve could have been raising rates all throughout 2016, but they held off because they didn’t want to hurt Hillary Clinton’s chances of winning the election.

And during Barack Obama’s eight years, there has only been one rate increase the entire time up until this point.

But now that Donald Trump is headed for the White House, the Federal Reserve has decided that now would be a wonderful time to raise interest rates.  In addition to the rate hike on Wednesday, the Fed also announced that it is anticipating that rates will be raised three more times each year through the end of 2019

Fed policymakers are also forecasting three rate increases in 2017, up from two in September, and maintained their projection of three hikes each in 2018 and 2019, according to median estimates. They predict the fed funds rate will be 1.4% at the end of 2017, 2.1% at the end of 2018 and 2.9% at the end of 2019, up from forecasts of 1.1%, 1.9% and 2.6%, respectively, in September. Its long-run rate is expected to be 3%, up slightly from 2.9% previously. The Fed reiterated rate increases will be “gradual.”

So Barack Obama got to enjoy the benefit of having interest rates slammed to the floor throughout his presidency, and now Donald Trump is going to have to fight against the economic drag that constant interest rate hikes will cause.

How is that fair?

As rates rise, ordinary Americans are going to find that mortgage payments are going to go up, car payments are going to go up and credit card bills are going to become much more painful.  The following comes from CNN

Higher interest rates affect millions of Americans, especially if you have a credit card or savings account, or want to buy a home or a car. American savers have earned next to nothing at the bank for years. Now they could be a step closer to earning a little more interest on savings account deposits, even though one rate hike won’t change things overnight.

Rates on car loans and mortgages are also likely to be affected. Those are much more closely tied to the interest on a 10-year U.S. Treasury bond, which has risen rapidly since the election. With a Fed hike coming at a time when interest on the 10-year note is also rising, that won’t help borrowers.

The higher interest rates go, the more painful it will be for the economy.

If you recall, rising rates helped precipitate the financial crisis of 2008.  When interest rates rose it slammed people with adjustable rate mortgages, and suddenly Americans could not afford to buy homes at the same pace they were before.  We have already been watching the early stages of another housing crash start to erupt all over the nation, and rising rates will certainly not help matters.

But why does the Federal Reserve set our interest rates anyway?

We are supposed to be a free market capitalist economy.  So why not let the free market set interest rates?

Many Americans are expecting an economic miracle out of Trump, but the truth is that the Federal Reserve has far more power over the economy than anyone else does.  Trump can try to reduce taxes and tinker with regulations, but the Fed could end up destroying his entire economic program by constantly raising interest rates.

Of course we don’t actually need economic central planners.  The greatest era for economic growth in all of U.S. history came when there was no central bank, and in my article entitled “Why Donald Trump Must Shut Down The Federal Reserve And Start Issuing Debt-Free Money” I explained that Donald Trump must completely overhaul how our system works if he wants any chance of making the U.S. economy great again.

One way that Trump can start exerting influence over the Fed is by nominating the right people to the Federal Open Market Committee.  According to CNN, it looks like Trump will have the opportunity to appoint four people to that committee within his first 18 months…

Two spots on the Fed’s committee are currently open for Trump to nominate. Looking ahead, Fed Chair Janet Yellen’s term ends in January 2018, while Vice Chair Stanley Fischer is up for re-nomination in June 2018.

Within the first 18 months of his presidency, Trump could reappoint four of the 12 people on the Fed’s powerful committee — an unusual amount of influence for any president.

By endlessly manipulating the economy, the Fed has played a major role in creating economic booms and busts.  Since the Fed was created in 1913, there have been 18 distinct recessions or depressions, and now the Fed is setting the stage for another one.

And anyone that tries to claim that the Fed is not political is only fooling themselves.  Everyone knew that they were not going to raise rates during the months leading up to the election, and it was quite clear that this was going to benefit Hillary Clinton.

But now that Donald Trump has won the election, the Fed all of a sudden has decided that the time is perfect to begin a program of consistently raising rates.

If I was Donald Trump, I would be looking to shut down the Federal Reserve as quickly as I could.  The essential functions that the Fed performs could be performed by the Treasury Department, and we would be much better off if the free market determined interest rates instead of some bureaucrats.

Unfortunately, most Americans have come to accept that it is “normal” to have a bunch of unelected, unaccountable central planners running our economic system, and so it is unlikely that we will see any major changes before our economy plunges into yet another Fed-created crisis.

 
  • aldownunder

    Hmmm…that sounds a lot like the optimism which surrounded the December 2015 rate hike.
    But it didn’t quite work out like that.
    Instead, we got plenty of ‘we’ll just hold off until next month’ crap — until next month turned out to be 12 months later.
    They are really only moving rates so they have somewhere too go when TSHTF maybe next year but probably sometime before 2020 who knows

    • socalbeachdude

      All interest rates that matter in the US economy are entirely keyed off the yields in the US Treasuries markets which are a $13 trillion a year market where more than $7 trillion each year of new US Treasuries are issued. The Federal Reserve only sets 3 interest rates and they simply follow the yields set in the US Treasuries markets.

      • Mark

        So what. That is irrelevant to the interest rate manipulation that the Fed has been implementing for so many years along with other world central banks. Treasuries can be manipulated to fit their agenda so it’s irrelevant. The Fed prints and buys. Bank of Japan owns close to 50 of investment assets so they do have a major role on how economic outcomes. That is not a free market.

        • socalbeachdude

          That is not at all how the $13 trillion a year US Treasury markets work at all and they are the largest bond markets in the world, and I would suggest you learn about those markets at:

          http://www.TreasuryDirect.gov

      • retired22

        You keep evading the main issue,…the US government & it’s Treasury Department doesn’t need the Central Bank.
        America’s greatest economic expansion occurred in the 35 years after the Civil War & was done without any Central Bank,…only a Treasury Department!

        • socalbeachdude

          Absolutely false.

  • Liberty First

    Most Americans have little to no clue about what the FED even is.

    • Lennie Pike

      That would include socaldude -and that is a fact.

      • socalbeachdude

        Laughably false. I would suggest you learn about the Federal Reserve at:

        http://FederalReserve.gov

        • Mark

          All you do is google some stats that would support the nonsense you write. Everything you had written was copied and pasted that supports central banking. You obviously do not understand economics the the horrible effects that the Fed and World Central banks have done to sovereign countries. Also you support globalism which is another big lie.

          • socalbeachdude

            Even more laughably false. Why are you putting up such nonsensically and totally bogus assertions? The Federal Reserve does not OWE ANY MONEY TO ANYONE and has no responsibility for running up a single penny of the $64 trillion of debt in the US economy, of which $19.6 trillion is federal government debt. That is entirely the RESPONSIBILITY OF THE US CONGRESS AND THE WHITE HOUSE for signing that egregious and profligate spending into law in the US.

          • Mark

            It prints money out of thin air and manipulates short and long term interest rates and inflation. I does create debt and inflation by creating cheap money that has find nothing but artificially inflate prices such as stocks but never did what they intended to do which is stimulate. You can never stimulate with debt.

          • socalbeachdude

            I would suggest you learn about the Federal Reserve at:

            http://www.FederalReserve.gov

          • retired22

            If there was no Central Bank Reserve System that allowed margin investing & huge amounts of leverage there would not been WW1,the Great Depression & the subsequent WW2.
            There would have been no large scale warfare for at least the last 100 years.
            This is because large scale warfare is modern warfare & modern warfare is impossible to finance without leverage.
            WW1 might have ended after a few months since the combatants would have been financially bankrupted paying for the war,…..that is,without the unlimited I.O.U.’s they borrowed from the bankers.
            These gigantic debts bankrupted the Germans after the war & led to the Great Depression which led to the Nazis which led to WW2.
            And WW2 Germany went to war with military might that was financed,in large part by the financial markets in the “City of London Financial District” & Wall Street!

          • Mark

            You are 100% right and agree which I why we need to end the FED.

          • socalbeachdude

            What utter nonsense.

          • socalbeachdude

            The so-called “Great Depression was actually just a VERY MINOR AND SHORT-LIVED BLIP.

            The Great Depression itself was really nothing more than two separate periods of recession the first of which started in August 1929 two months before the stock market crash of 1929 and which lasted only until March 1933. Then there was a recovery which lasted 4 full years with positive growth in GDP until May 1937 when the economy dipped into another very short recession which only lasted until June 1938.

            http://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.html

            This time around the Grand Global Depression is likely to last considerably longer and actually started in August 2007 and will be with us last least out through the end of 2020. The affects of the GGD are being masked by huge government deficits without which GDP would be decisively negative and by such programs as food stamps which are the modern equivalent of soup kitchens for 50 million Americans.

        • Lennie Pike

          Is that a fact.

      • socalbeachdude

        False.

    • socalbeachdude

      The Federal Reserve is the official central bank in the United States established by the Federal Reserve Act.

      • retired22

        Which was an illegal act against the U.S. Constitution!

        • socalbeachdude

          Nope. There is nothing even slightly “illegal” or “unconstitutional” about the Federal Reserve system.

          • retired22

            It gets irritating listening to your garbage,
            Are you a breathing creature or a recorded message?

          • socalbeachdude

            What I put up is 100% true, accurate, and fully correct. It is YOU who is making totally bogus and false assertions.

          • retired22

            You are a damned fraud & shoe shine rag for bankers who have done more indirect harm to the world then Hitler,Stalin or Mao,..They murdered hundreds of millions
            while the central bankers have financed their regimes!

          • socalbeachdude

            Laughably false and extremely bogus and inane assertions. I love all of my bankers especially my wonderful Private Client bankers at JPMC who sent a lovely Christmas card this year!

          • retired22

            Did it have a wick & matches to go along with it?

          • socalbeachdude

            Huh?

    • retired22

      Most Americans have no clue as to what anything is!

  • Mike Smithy

    Now that President Zero is on his way out the door, the much politicized Federal Reserve can’t wait to start raising rates in an effort to sabotage Trump and marginalize his supporters. The NWO establishment and their media lapdogs now have their “fall guy” to blame for their controlled demolition of what’s left of our hollowed out and farcical eCONomy.

    • socalbeachdude

      Absolutely false. The Federal Reserve has nothing whatsoever to do with partisan politics.

      • Mark

        True True True. The federal Reserve, central banks and Wall Street needs to be eliminated along with the Rothchilds.

        • socalbeachdude

          Ludicrously false assertions.

      • Mike Smithy

        The evidence is quite clear to the contrary. During Yellen’s press conference yesterday, she repeatedly declared that the USA was at “Full Employment” and yet there are 95 million able bodied adult American’s out of the labor force. In addition, I find the timing of her rate hike disingenuous at best. Undoubtedly, she gets her talking points from President Zero’s Administration and will do everything in her power to sabotage Trump.

  • Bill

    Would rates still be going up if Hillary had been elected? Will the government debt cripple the government as rates rise?

    • socalbeachdude

      All interest rates that matter in the US economy are set in the US Treasuries markets and those have been moving sharply upwards ever since July 2016 and would have moved upwards regardless of who was elected as the US President in November 2016.

  • Bill

    Breaking…..Trump Tower on lock down?

  • T-Man

    The light has about reached the TNT

  • max gon

    I Totally agree with Michael, Trump must shut down The Federal reserve.

    • Mike Smithy

      Yep. It’s a big swamp to drain and Janet Yellen is one fugly swamp creature.

      • socalbeachdude

        False. The Federal Reserve is a fine central bank and is one of the most conservative central banks in the world.

        • Mark

          You are the false one. Lie Lie Lie.

          • socalbeachdude

            Laughably false assertions.

          • Mark

            Sad but true.

        • BS1986

          The federal reserve is a plague that must be stopped with violence if necessary.

          • socalbeachdude

            Laughably false and utterly bogus assertions from you.

          • BS1986

            AH you are their slave.
            You up vote your own comments? Does that make you feel important?

          • socalbeachdude

            Huh? Slave to what?

          • BS1986

            The FED you Muppet.

          • socalbeachdude

            The Federal Reserve does not do retail business with anyone in the US and is merely a wholesale central bank.

          • BS1986

            I know that puppet, I’m saying they paid you off to be their cheerleader.

          • socalbeachdude

            Laughably false.

          • BS1986

            Yeah deny away……..

      • Mark

        Mike,

        Do not listen to this liberal loon SOCIALBEACHDUDE. He used to be another person called D Patel who is nothing more than a paid liberal troll working for HiLAIRy or Obozo the President clown. This moron was on the CNBC blogs and this blog trolling liberal BS with nonsense stats. He’s a fraud.

        • socalbeachdude

          What utterly bogus nonsense. I was a major supporter of Donald Trump.

          • LIZ THE SHIZ

            and he has a cut copy paste program just like the Snodt or whatever paid troll name it’s using here and on zero hedge and other sites , but anyone with half a brain can see through this BS

          • SnodtBlossom

            Oh no Shizhead, I’m no bot.
            Impeach President PigBastard T.Rump!!!

          • Pig Farmer Bill

            For what? He’s not even in office yet fool?

          • pelprint

            bad form to vote oneself up

        • Lennie Pike

          A Patel? Oh reeeeealy? From India? Where the government is going cashless and limiting gold ownership as we speak? This guy sounds like a bigger globalist totalitarian than his countryman and not so accomplished paid liar anti-American and freedom hater Fareed Zakaria of CNN.

          The tricky part is that these one world goverment types can sound very Constitutional on all other issues not related to central banker tyrrany – proven by none other than Mayer Rothschild’s most famous and telling quote about not giving a rat’s a$$ about who is elected as long as “they” control the “money”

          This socal dude isn’t even American then – an I.T. worker probably that was given an American’s job by some traitor globalist company like Disney probably – which has replaced all of their American I.T. employees with Indians so to pay half the wages.

          And they are lecturing us on why being free as individuals is wrong. Get the hell out of the U.S.A. while the getting is good fuzzy little foreigners. Fuzzy and cowardly in the mind and spirit due to fear. Control freaks control due to fear – of life in general. Jeez – I wonder what makes them that way?

          • Mark

            I could not have said it any better. You are totally right about this guy and globalism.

          • SnodtBlossom

            Impeach President PigBastard T.Rump!!!

          • Mark

            How can they impeach him when he has not been enaugerated yet????? However, we know two things….One…..HiLAIRy will not be president and two HiLAIRy aka Hitlery will be in jail by next year behind bars while l I b t a r d s such as yourself are crying yourselves to sleep. You wouldn’t happen to be related to D Patel or Socalbeachdude??? Hummmm?????

            Oh, how much does the DNC and Communist Party USA pay you to be a troll??? A penny??? I would think a penny is entirely to much to pay an incompetent person or persons like yuz.

          • SnodtBlossom

            How’s that job search going Mark?

          • Mark

            I have a real job unlike you that is a paid troll on conservative websites representing the DNC aka Communist Party.

          • SnodtBlossom

            I’m working at an engineering company tho I’m waiting for the car at the shop today.. Did somebody hire you as a part time kung fu instructor again?

          • Mark

            It’s not Kung Fu. It is Taekwondo and Hapkido. Korean martial arts. I have degrees in marketing & economics and a masters MBA. I’m in sales/project mgt. Martial arts is a hobby.

          • guest

            I thought you were going to Canada to drive a garbage truck.

          • socalbeachdude

            There is no such word as “enaugerated” and the correct word is “inaugurated” which will happen for Donald Trump as the 45th President of the United States on January 20, 2017.

          • stluyjuy

            Could we get back to the subject of the Fed’s rate policy?

          • socalbeachdude

            Nobody in the banking and financial industries give the slightest bit of a hoot of about that little absurdly overpriced fungible junk commodity called gold which is merely in the process of reverting to its mean of $456 per ounce on the downward path that has been in process for the past 5 years since September 2011 from which it has fallen in price more than 40% from its preposterous speculative high.

            Ides of December Sees Gold continue its precipitous plunge..

            Gold 1,130.30 -33.40 -2.87%

            While US Dollar Soars to New 15 Year High…

            DXY Index 103.06 0.86 0.84%

          • Mark

            Thanks to manipulation with the paper and Comex. And yes the Central banks, US. Treasury ESF, and Wall Street have been suppressing it to keep the mirage that everything is ok but in reality a big lie. Stock market is the big lie and over valued by an estimated 60%.

          • socalbeachdude

            There is no “manipulation” whatsoever regarding COMEX and it handles only about 10% of gold transactions and then only for the FUTURES MARKETS. The primary price quoted for gold is the SPOT PRICE of gold which is GOLD FOR IMMEDIATE DELIVERY and which has nothing to do with COMEX or the futures markets.

            Gold is a preposterously inflated little niche fungible commodity with a wildly volatile price history ever since 1971 and is currently on a move than 5 year downward move which has seen its price plunge by around 45% to $1,136 per ounce from $1,927 per ounce which was its high on September 5, 2011 and it is in the process of reverting to its mean of $456 per ounce and then headed even lower.

          • Lennie Pike

            “No Come manipulation” – is that a fact.

          • Lennie Pike

            COMEX!!!!!!!!!

          • socalbeachdude

            There is no “manipulation” of anything on COMEX which is a COMMODITIES FUTURES MARKETS filled with speculators better on the future prices of all kinds of commodities and indices.

          • bc

            I am amazed at the number of lies you have told here. You are an imbecile who needs his keyboard taken away/

          • socalbeachdude

            Everything I have stated is 100% true, accurate, and correct and can easily be verified by simply googling each issue. What exactly that I stated do you in any way disagree with or think is not 100% accurate and correct?

          • Pig Farmer Bill

            You killing a hog this weekend? Drink it’s blood!

          • Pig Farmer Bill

            You are a paid troll who is full of scheit.

          • socalbeachdude

            Absolutely false and very stupid assertions.

          • Pig Farmer Bill

            Aw, get your feelings hurt snowflake.

          • Pig Farmer Bill

            It is a lie, the American economy is fragile. Most folks are clueless as to how easy it could collapse. Imagine if there were no gasoline for 6 weeks in America? Think about it.

          • Mark

            True. Gasoline in PA is $2.50/gal. Starting Jan.1 PA is adding 8 cents per gallon tax on top of the 50 cents per gallon we already pay in taxes. Everything is going down the s h ! t t e r.

          • socalbeachdude

            I would suggest your seek help for your endless array of clueless and false delusions which you just exhibited.

          • Lennie Pike

            You are wrong yet again – they are theories based on probabilities. They are not facts like you are accustomed to.

          • socalbeachdude

            What I stated is 100% true, accurate, and fully correct.

        • Pig Farmer Bill

          There are so many trolls here, clones too.

      • jim b

        could not have said it better!!!

    • socalbeachdude

      Laughably false. The Federal Reserve is not even part of the problem in the US. The Federal Reserve rebates more than 94% of its profits each year to the US Treasury and is now the largest single entity contributor to US government revenues. The big problem is that the federal government has run up a $19.6+ trillion debt – most all of which has been run up just since 1981 – and that debt increased by more than $1.4 trillion in fiscal 2016.

      • Mark

        I see you changed your identity from D Patel to social beach dude. You are nothing more than a liberal left wing loon that spews nonsense. You come up with these fictitious stats as propaganda to spread your ridiculous ideologies such as how the wonderful the Fedeak Reserve is with us a load of
        B u l s h ! T.

        • socalbeachdude

          What ludicrously false assertions. I am actually quite conservative politically, and the information I have provided is 100% true, accurate, and fully correct.

          • Mark

            Shut down the Federal Reserve and the world central banks. They are destroying the world economies D Patel.

          • socalbeachdude

            And what would that accomplish but for crashing the entire functioning of the global financial system?

          • Mark

            Good. We need to shut the whole system down and then take the Rothchilds and Rockafellars to the execution chambers and rid them too.

          • Lazarovic

            I get it; you’re a Nazi. We already defeated you people. Keep advocating violence and leaving an electronic trail, dummy. The FBI will catch your treasonous butt.

          • Mark

            And you are a left wing progressive Marxist loser. That ridiculous picture which looks like a commie should be a picture of Stalin’s @$$. You are the dummy since you support globalism and what these $ C U M have done to the global economy. They have destroyed the freedom and sovereinty of many countries including my country. I guess you love Rothchilds so much you have fantasies of blowing him you freak. Anyone who defends the criminal Rothchilds is a low life and you are a low life. The FBI is to busy investigating HiLAIRy for her crimes so I doubt very much that my statement is a top priority. You must be another liberal troll that needs to go back in you Marxist Stalinist hole.

          • Lennie Pike

            What did he say that caused you to accuse him of being a Nazi? And also please define and explain what a Nazi is. A Nazi by your definition wouldn’t be anyone who is against those in control the federal reserve and the rest of the criminal western banister criminal cartel mafia by any chance would it? – since pretty much everyone in control of it is a satanic fake Jew who obviously hold a huge grudge against Nazis. Yes? Well that doesn’t mean that all who are against bankster criminals are Nazis. Patriotic Peaceful (until now) Freedom Loving Americans can also be against them. As a matter of fact – the entire world is against them and have grown weary from their abuse.

            Hopefully, for everyone’s sake, another Hitler will not be the solution that is attempted.

          • Lennie Pike

            Hopefully, also, the solution (for now) won’t be the antichrist and his mark necessary to buy or sell which could be needed in a cashless system.

            The U.S. Constitution enforced is the solution. What a wonderful and fair form of government. Only a criminal, and abuser of their fellow man could be against it – and are they ever.

          • Mark

            True very true. I agree 100%.

          • Lennie Pike

            Make that – the CIA will catch him – looks like the global government is not yet fully in charge of the FBI.

          • Lennie Pike

            Mark is the traitor for what he said?

            You just proved yourself to be what you are. Go and hide now.

          • Lennie Pike

            Ahhhhhh…….I get it now – it was the term “execution chambers” that set off your simple mind.

            The use of an execution chamber doesn’t make one a Nazi. In the U.S. the gas chamber (a type of execution chamber) was used for executions, and the executioners were not Nazis, and the executed were not strictly “Jews” – so your accusation was not valid – or fair.

            What was actually your problem with what was said then – come on – be truthful here – is it that the Rothschild are “jews”?

          • socalbeachdude

            The Rothschild family has nothing whatsoever to do with the US banking system and only operates a small wealth management boutique bank in the US.

          • retired22

            What do they call the Rothschild holdings,the City Of London financial district?

          • socalbeachdude

            Absolutely false.

          • retired22

            The Rothschild’s have everything to do with every banking system in the world,
            Who do you think George Soros fronts for?

          • socalbeachdude

            Laughably false.

          • retired22

            It is going down anyway,The EU & it’s Euro are on the way to collapse.
            & the global economy cannot pay all of the leveraged debts run up by the Fed’s little children in the financial markets.
            All of these Derivatives & leveraged debts will end in global default.
            And the Central Banks will no longer matter.Why should the general public fight to the last to save the international bankers from the bankruptcy they richly deserves!

          • socalbeachdude

            No, the EU and EZ and Euro are not about to “collapse” at all but you will soon see the Euro at parity with the US dollar and headed somewhat lower.

          • retired22

            All the people I read,Mike Shedlock,Tyler Durden,Doug Casey,Peter Schiff,Marc Faber,Charles Hugh Smith,Chris Martenson & ,a few others that I can’t recall,are telling me what I am telling you.
            And you are saying the opposite & I am supossed to believe you?

          • socalbeachdude

            That is a very lost batch of delusionals!

          • Mark

            I would assume you get most of your stats from the BLS Mr. Patel???

          • socalbeachdude

            Where do you come up with the bogus Patel nonsense?

          • retired22

            Can you tell me what the Federal Reserve Bank can do for America…..that the Treasury Department can’t also do without the added expenses of middlemen?

          • socalbeachdude

            The Federal Reserve web site explains that very clearly at:

            http://www.FederalReserve.gov

          • bc

            U sound like a freaking schizophrenic !

          • socalbeachdude

            How so? What I have stated is 100% true, accurate, and correct. Don’t you comprehend those actual facts?

        • CASTIEL

          He is a complete moron….he upvotes all of is own coments and he comes here barking like some Genius of economy…..Just ignore that stupid donkie……

          • Mark

            Very True..You make a good point.

            Have a good one.

          • GSOB

            I like him. I pray for him too. You also

    • David

      then trump better have a security detail better than the most notorious cocaine traffikers in columbia!
      JFK tried & you see where he & his brother are.

    • wolf359

      it will never happen!!

      • socalbeachdude

        Obviously not, as that would be enormously detrimental to the banking system in the US.

  • Mr.Cipher

    The message is clear. Vote Democrat or we will punish you deploribles.

    • socalbeachdude

      False. The Federal Reserve merely follows the interest rates set in the US Treasuries markets as to the only 3 interest rates they do set – none of which matter a hoot in the US economy. Moreover, the Federal Reserve has no political agenda whatsoever and steers clear of partisan politics.

      • SmallerGovNow2

        Hello American Patriot from Marketwatch…

        • socalbeachdude

          Hello, SGN!

      • Mr.Cipher

        Troll block button activate.

  • socalbeachdude

    DISGUSTED DEMOCRATS EXPOSED LYING DEMOCRATS…

    EXCLUSIVE: Ex-British ambassador who is now a WikiLeaks operative claims Russia did NOT provide Clinton emails – they were handed over to him at a D.C. park by an intermediary for ‘disgusted’ Democratic whistleblowers

    Craig Murray, former British ambassador to Uzbekistan and associate of Julian Assange, told the Dailymail.com he flew to Washington, D.C. for emails

    He claims he had a clandestine hand-off in a wooded area near American University with one of the email sources

    The leakers’ motivation was ‘disgust at the corruption of the Clinton Foundation and the ’tilting of the primary election playing field against Bernie Sanders’

    Murray says: ‘The source had legal access to the information. The documents came from inside leaks, not hacks’

    http://www.dailymail.co.uk/news/article-4034038/Ex-British-ambassador-WikiLeaks-operative-claims-Russia-did-NOT-provide-Clinton-emails-handed-D-C-park-intermediary-disgusted-Democratic-insiders.html#ixzz4StaCrAaL

  • socalbeachdude

    The FEDERAL RESERVE SIMPLY MATCHES THE FEDERAL FUNDS RATE TO THE YIELD ON THE 3 MONTH US TREASURY RATE and that has been the case for the entire 100 years of operation of the Federal Reserve.

    Obviously, the Federal Reserve will continue to TIGHTEN as it has been doing for the past year and will raise the only 3 interest rates that they set – not that it matters a hoot – on December 14, 2016.

    The Federal Reserve these days has nothing left that it can do except to push on limp noodles and there’s not much result with that.

    The Federal Reserve DOES NOT SET ANY INTEREST RATES THAT MATTER IN THE US ECONOMY NOR DOES IT EVEN INFLUENCE INTEREST RATES IN THE US ECONOMY TO ANY SIGNIFICANT EXTENT AT ALL.

    Changes in the Federal Funds Rate ALWAYS MATCH THE YIELD ON 3 YEAR US TREASURIES WHICH ARE THE KEY INTEREST RATE THAT ALWAYS LEADS WHERE THE FEDERAL RESERVE SETS THE FEDERAL FUNDS RATE and as Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

    Open market operations are TOMO (Temporary) and POMO (Permanent) and were ESSENTIALLY RENDERED IRRELEVANT AND USELESS WITH THE FEDERAL RESERVE VERSIONS OF QE which were POMO ON STEROIDS.

    The BANKS ARE NOW SO AWASH IN VAST EXCESS RESERVES as a result of selling securities to the Federal Reserve with QE that the banks in the US now have MORE THAN $3.5 TRILLION IN EXCESS RESERVES compared to the historical norm of around $25 billion in excess reserves in their accounts at the Federal Reserve.

    The Federal Discount Rate only applies to member banks BORROWING DIRECTLY FROM THE FEDERAL RESERVE AT THE FEDERAL DISCOUNT RATE which is presently 1.00% which is 200% of the top 0.50% range of the Federal Funds Rate at which banks can borrow from each other.

    Banks can only borrow with the Federal Discount Rate on a fully collateralized basis for very short terms (typically overnight) STRICTLY FOR LIQUIDITY PURPOSES and THEY LITERALLY NEVER BORROW FROM THE FEDERAL RESERVE DIRECTLY as that has always carried a stigma and is now 200% of the cost for them to borrow from each other at the Federal Funds Rate. The Federal Reserve Discount Window has always been a LAST RESORT BORROWING MECHANISM for banks with sudden severe liquidity problem and has rarely ever been utilized hardly at all.

    RESERVE REQUIREMENTS are also TOTALLY IRRELEVANT THESE DAYS as banks are AWASH WITH VAST HUMONGOUS EXCESS RESERVES FAR IN EXCESS OF WHAT THEY ARE REQUIRED TO MAINTAIN AS RESERVES AGAINST BANK CUSTOMER DEPOSITS.

    The current loans outstanding utilization rate against customer deposits at banks is a RECORD LOW 67% and the maximum amount banks could lend if there were demand assuming a 3% reserve requirement would be 97%.

    Banks presently have MORE THAN $3.5 TRILLION IN EXCESS RESERVES in their excess reserves accounts at the Federal Reserve, so the “reserves requirement tool is also TOTALLY IRRELEVANT.

    Essentially, the FEDERAL RESERVE HAS NO TOOLS WHATSOEVER IN THEIR “TOOL BOX” AT ALL ANYMORE.

    • Mark

      You love to cut and paste Patel. Do you work as a Federal employee or for the FED??? You live the Fed don’t YOU!!!!!

      • socalbeachdude

        What utter nonsense. I have written everything that I do post except that which I quote from superb sources and have long posted as socalbeachdude. And, no, I do not work for the Federal Reserve or federal government.

        • Mark

          And who are your quote sources???

          • socalbeachdude

            They vary and any direct quotes are fully stated with sources.

          • retired22

            Your quotes are indirect?
            What in Hell is an indirect Quote?

      • retired22

        He puts in a lot of effort,got to give him credit for that.
        But can he keep it up & still do his day job?

        • Mark

          He is probably collecting welfare and food stamps. No need to work. Lol

          • Lennie Pike

            Yes, benefits are being distributed to any foreigner who is allowed into the U.S. (anyone and everyone) for the purpose of destroying America by invasion. I’d say Patel falls into that category for sure.

            Enjoy Patel – for the time being. You should be able to tell that the patience, kindness, and charity of Americans has reached it’s limit. You should begin formulating a plan to deal with that now – it’s called leaving.

          • socalbeachdude

            Huh?

          • Lennie Pike

            How does a “Huh?” get an upvote?

          • Mark

            True, my brother is a DEA agent and has told me many times they have arrested Mexican and PR drug gangs 10 to 15 at a time on the east coast. Many are illegal or are collecting gov’t benefits. They even get a public defender at trial and if convicted are put in two years. All paid for by the tax payer. Very disturbing.

          • Lennie Pike

            Unbelievable this is going on and our country has come to that!!!

          • Mark

            Unfortunately this is very true and is getting worse. This s why I am so frustrated with all the BS that is going on in this country and world. Especially those far left wing loons that want to demoralize our country.

        • Lennie Pike

          This is his day job – and he’d better keep it.

          • retired22

            I get irritated with this guy,after a while, because his lies are so obvious that I feel offended when reading them.
            Also he must be an Indian,as someone on this site said, because the way he presents himself seems to be the way I have heard other Indians present themselves.
            His obsequious & fawning ‘Oh Sahib’ routine gets to be annoying.His presentations get under my skin!

          • Lennie Pike

            I agree. An awful lot of Indians have been given the I.T. jobs of Americans. I have heard they produce less than half the amount of work than their American counterparts due to inferior educations, but are paid more than half of what Americans are paid – a net loss.

            This Patel guy is the perfect example – he was taught how to cut and paste but not how to think. Also, not being an American – he sure ain’t no John Wayne or Charlton Heston either. Probably hates the 2nd Ammendment and the rest of It.

          • socalbeachdude

            Huh? Are you really that lost in your mental swamp of extreme delusions and utter fantasies? Really? Seriously?

          • Lennie Pike

            It’s called an educated guess which is based partly on information gained from a highly credible source (Mark), and also on deductive reasoning – the rhythm and cadence of your speech is more similar to that of an Indian than any other. Also as someone from India, you are very hard to anger and you are always very, very, very polite – (I was making that sound that Indians make with the R’s in those “very’s). So it is just about impossible for you to be insulted isn’t it Habib? So maybe I’m not as “mental” as one might think at first glance – or delusional. I’m always willing to go out on a limb anyway.

            Also – it may be very difficult to tell – but I love all people’s and races of the world, except those who I suspect being literally children of satan, so don’t take what I said as beingbigoted. Foreigners from the third world are being allowed by Satan’s followers to invade developed nations. You use your power of reasoning to conclude why.

            It would be better for everyone if they remain in their own countries and fought against the powers of evil there so to bring about real change for the better.

            It ain’t gonna work out too good very well for you here.

          • Lennie Pike

            Typo – should have written “satan” with a lower case “s”.

          • socalbeachdude

            Huh? Are you really that clueless as to the actual facts?

          • Lennie Pike

            Way polite – I rest my case.

          • socalbeachdude

            Everything I have stated is 100% true, accurate, and correct.

          • retired22

            You are like a parrot repeating pre programed messages!

          • socalbeachdude

            What I have stated is consistently true, accurate, and correct. I would suggest you attempt to learn from my comments as to the actual facts regarding our excellent Federal Reserve System.

  • socalbeachdude

    The Federal Reserve makes fully independent decisions which are made by consensus of the 12 member FOMC which is comprised of the 7 members of the Federal Reserve Board of Governors and 5 of the 12 regional Federal Reserve bank presidents.

    The Federal Reserve FOMC is extremely TRANSPARENT and has clearly stated that the only 3 interest rates they set will be raised between 2 to 4 times this year in 2017 – which they failed to do in 2016.

    The only 3 rates that the Federal Reserve is involved with setting are:

    1) Federal Discount Rate – currently 1.50%

    2) Federal Funds Rate (which it influences) – currently in the range of 0.50% to 0.75%

    3) Federal Reserve IOER (Interest On Excess Reserves) – currently 0.75%

    The IOER (Interest On Excess Reserves) interest rate does have an immediate beneficial impact for banks as it is the interest paid to banks on their excess reserves accounts inside the Federal Reserve and those accounts now have more than $2.5+ trillion sitting in them.

    The FOMC voted to raise the only 3 interest rates set by the Federal Reserve on December 14, 2016 and indicated that it will raise those only 3 interest rates by about 0.75% in 2017 – but that will remain well behind the yields (interest rates) set by US Treasuries which is what really sets all interest rates that matter in the United States economy.

  • Thomas D Guastavino

    Its simple. If rates go up the government will have to pay more in interest payments which will give Trump the excuse he needs to cut spending and he can blame the fed, Obama and the Dems for borrowing so much. If “blame Bush” was legitimate for the Dems then “blame Obama” should be easy.

    • socalbeachdude

      The only 3 interest rates set by the Federal Reserve have NOTHING WHATSOEVER to do with the interest rates that the US government has to pay on its $19.6 trillion debt which increased by more than $1.4 trillion in Fiscal 2016.

      All of those yields (interest rates) are set in the US Treasuries markets which have been soaring upwards in yield (interest rates) since July 2016. That matter has nothing whatsoever to do with the Federal Reserve which merely sets the only 3 interest rates it sets based on the US Treasuries markets where the rates are determined by yields at auctions for more than $7 trillion a year in new US Treasures.

  • socalbeachdude

    Dollar surges after Fed raises rates, signals faster rate hike pace

    The U.S. dollar hit its highest level against a basket of major currencies in nearly 14 years on Wednesday after the Federal Reserve raised interest rates for the first time this year and signaled a faster pace of increases in 2017.

    The dollar index hit 102.350, its highest level since early January 2003, after the U.S. central bank raised the target federal funds rate by 25 basis points to between 0.50 percent and 0.75 percent and projected three rate hikes next year from two as of September.

    The index, which gained about 1.3 percent, measures the dollar against a basket of six major currencies. The Fed’s last hike was a year ago, when it increased rates from the zero lower bound reached during the 2007-2009 financial crisis.

    http://www.reuters.com/article/us-global-forex-idUSKBN14303I

  • billtheguy

    I’ll bet old Yeller has her investments lined up for the crash. At least ready at the push of a button. People who have that much manipulation of the economy should not be. It should be considered “insider trading”.

    • socalbeachdude

      Huh?

  • XSANDIEGOCA

    Golly! One might think the Deep State and the Fed have it in for Trump!! Let’s see. If interest rates go up 3% from where they are now, I calculate another 600 Billion additional per year just in interest on 20 trillions of Debt (and growing). Where is that going to come from? Bear in mind, Trump would like to prime the pump with 1 trillion dollars. Looks like he will have a hard time getting it, which is exactly what the Deep State has in mind.

    • socalbeachdude

      Once gain, the only 3 interest rates set by the Federal Reserve have NOTHING WHATSOEVER to do with the interest on the federal debt, and that is entirely set by the yields (interest rates) in the US TREASURY AUCTIONS which have been soaring since July 2016. The Federal Reserve merely FOLLOWS THOSE YIELDS. What is so difficult for you to comprehend about that? Donald Trump certainly CANNOT CONTINUE MASSIVE FEDERAL DEFICIT SPENDING at a time when the federal debt is more than $19.6 trillion and increasing by more than $1.4 trillion a year.

      • XSANDIEGOCA

        Well… I guess the Federal Reserve has no impact at all on the Economy. Why don’t we get rid of it?

        • socalbeachdude

          The Federal Reserve handles all of the INTERBANK CLEARANCE OF TRANSACTIONS through its 12 regional branches in the United States without which all banking would come to a screeching halt in the US. The least important thing the Federal Reserve does is set the only 3 interest rates they do set none of which matter a hoot.

          • XSANDIEGOCA

            I don’t think so. Otherwise, no one would care but…they do, don’t they?! I think the Fed has such enormous impact that the Fed Chair is widely regarded as more powerful than the President. If that was all the Fed did, I think those functions could and should be handled directly by Congress. Don’t you? They do a whole lot more than just fiddle with 3 interest rates.

          • socalbeachdude

            False perceptions and hopium are what are running dominant on Wall Street these days. The Federal Reserve only sets 3 interest rates and none of those 3 interest rates matters a hoot in the US economy where all interest rates that do matter are set in the US Treasuries markets. Moreover, the Federal Reserve simply matches those 3 interest rates to the yield (interest rate) on 3 Month US Treasuries and that has ALWAYS been the case. The mere thought of Congress running anything is beyond frightful.

      • Mark

        Thanks to Obozo spending 10 trillion in 8 years on nonsense programs such as alternative energy which was a big flop. Thanks to the Frderal Reserve for printing money out of thin airbwhich was about 4 .5 trillion added to the debt. Ya, there’s nothing left for Trump to spend because there was nothing to spend in the first place PATEL.

        • socalbeachdude

          The Federal Reserve does not OWE ANY MONEY TO ANYONE and has no responsibility for running up a single penny of the $64 trillion of debt in the US economy, of which $19.6 trillion is federal government debt. That is entirely the RESPONSIBILITY OF THE US CONGRESS AND THE WHITE HOUSE for signing that egregious and profligate spending into law in the US.

          • Stuey

            Oh yeah, that is right, China and Japan are buying all those US bonds and funding US debt. NOT

          • socalbeachdude

            China owns less than 7% of the outstanding US Treasuries and Japan owns about the same 7% with each owning about $1.3 trillion in US Treasuries for a total of around $2.6 trillion of the more than $19.6 trillion outstanding in total US Treasuries.

            The largest single holder of US Treasuries is the US GOVERNMENT ITSELF with around $6 trillion of US Treasuries owned by its various agencies with the largest holdings being by the Medical and Social Security Trust Funds.

            The Federal Reserve only owns about $2.5 trillion in US Treasuries which is less than 13% of the outstanding total.

            For a full breakdown in ownership of US Treasuries, see:

            http://www.TreasuryDirect.gov

          • Stuey

            Exactly…..China has been net sellers of bonds over the last 4 years and Japan only a slight increase in their holdings. So apparently from what you are saying, the US Govt. is buying it’s own bonds and financing it’s own debt with SS funds.

          • socalbeachdude

            China’s holdings of US Treasuries are BARELY CHANGED AT ALL over the past 4 years and the amount they hold has only fluctuated between $1.2 to $1.3 trillion in US Treasuries.

            The US government has long been the largest holder of its own US Treasuries through its various agencies and it is REQUIRED BY LAW to only invest in US Treasuries by those agencies.

          • Stuey

            Yes…….that is what i just said, duh. If the US Treasury can issue bonds they can issue their own currency and stop the Federal Reserve from “printing” so called US dollars which are really just Federal Reserve NOTES.

          • socalbeachdude

            No, the Federal Reserve Act prohibits Congress from doing any such thing, and Federal Reserve Notes are the only LEGAL TENDER in the United States.

          • Mark

            They print money and devalue/manipulate currencies.

          • socalbeachdude

            Absolutely false.

    • Lennie Pike

      Like the true criminals that they are, this Deep State will not give up without being physically forced to – it’s the reason Police Officers have guns.

  • Mark

    Everyone,

    Please listen to me. This SOCIALBEACHDUDE is a paid troll that used to come under the name D PATEL. He is very good at cutting and pasting stats from government agencies to argue his agendas and most likely is a paid troll. He used to be on other blogs such as the CNBC websites. I know his writting and he did lean to the far left. He says he is conservative but do not believe this FALSE PROPHET. He is copying and pasting information to support the Federal Reserve. Remember we are in turbulent political times and the progressive leftist and the government are infiltrating conservative sites or truthful alt media sites with propaganda. They are also trying to shut down the alt media so I would be aware of trolls such as this guy.

    • Lennie Pike

      I am still waiting for him to tap-out from the submission hold I have held him in since many ECB articles ago – the very last comment of the Italian vote article. He can not reply due to being as you claim – a liar basically.

      • Mark

        Very True. Sometimes you have to laugh at the nonsense.
        Have a good one.

        • socalbeachdude

          I would suggest you learn about the Federal Reserve and start dealing with the actual facts rather than making more laughably false and utterly bogus assertions.

          • Mark

            I understand what the Federal Reserve does and their function. You do not understand the toxic economic affects on the macro and micron economies. Ex. Interest rate manipulation leads many negative economic outcomes. Controlling inflation and devaluing the dollar is another.

          • socalbeachdude

            Laughably false. The Federal Reserve is an outstandingly excellent central bank and one of the most intelligent and conservative central banks in the world and the US economy is by far the largest and most stable single country economy in the world today.

          • socalbeachdude

            There are no “toxic economic affects” whatsoever with the Federal Reserve.

        • Lennie Pike

          There was the tap. Your laughter ending very soon is next.

          • Lennie Pike

            Sorry Mark, that comment was meant for socal dude – a bad mistake on my part – sorry.

      • socalbeachdude

        Huh? Are you really that clueless?

        • Lennie Pike

          That’s it? That is not an escape.

    • socalbeachdude

      Totally false and utterly inane assertions. What I have stated regarding the Federal Reserve is 100% true, accurate, and correct, and I would suggest you learn about the Federal Reserve and what it does at:

      http://www.FederalReserve.gov

    • Bill G Wilminton NC

      BLOCK HIM !!

      • Mark

        This socalbeachdude is a globalist shill. Hard to ignore the idiotic propaganda. However, your probably right.

        • socalbeachdude

          Laughably false.

  • Mark

    Everyone,

    Listen to me. This SOCIALBEACHDUDE person is a paid troll that used to be under a different name called D PATEL. He used to comment on the this site and CNBC. I believe he is nothing more than a paid troll working for the establishment or progressive left. He says he is conservative but I do not buy it since D Patel was a liberal loon. I am very familar with his writing style and it is the same sentence structure as D Patel. He is very good at cutting and pasting government stats to fit his agendas. Do not listen to the FALSE PROPHET for he only brings words of deception. Anyone defending the CorruptFederal Reserve is nothing more than a globalist with an evil agenda.

    • billtheguy

      socalbeachdude must be wicked fast with the mouse. It makes for easy reading on this site. I just pass all of it up.

      • Mark

        You are probably right but when I started reading his nonsense I put two an two together so I had to speak out.
        Have a good one.

    • socalbeachdude

      Absolutely and laughable false and utterly bogus assertions in every respect.

    • Paul Patriot

      I agree with you, I don’t even pay attention to his endless dribble.

      • socalbeachdude

        Ignorance of the facts is a very sad thing to see.

      • Mark

        True..Your right…It’s endless dribble.

        • socalbeachdude

          What I have stated is clearly 100% true, accurate, and correct and I would suggest you learn to comprehend the actual very straightforward facts.

          • Mark

            You are only looking at the orange peel and not the fruit. All the examples you present are actions which effect other actions which effect outcomes.

          • socalbeachdude

            Huh? I am looking at the actual facts, which is something you are failing to do.

          • Mark

            I read the facts too. You need to stop being a propaganda tool for the corrupt FED.

          • socalbeachdude

            There is nothing even slightly “corrupt” about the Federal Reserve.

          • Mark

            Maybe in your mind but reality says different.

          • socalbeachdude

            Nope. Reality says you haven’t got the slightest bit of a clue as to your assertions.

          • Mark

            You wouldn’t happen to be the boyfriend of the ugly old hag snodtblossom or maybe it is you snodtblossom he/she itself. Hummmm. Very interesting. Your giving yourself away using bold letters. D Patel, snodtblossom, and socalbeachdude all wrapped as one big propaganda package trolling conservative sites. Very interesting. How’s Florida these days????

          • socalbeachdude

            I would suggest you seek help for your delusions and stop making utterly bogus and false assertions.

          • Mark

            Ha Ha Ha Ha Ha.

          • Bill G Wilminton NC

            MARK Stop debating with this fool just BLOCK BLOCK BLOCK socalbeachdude!!!

        • Bill G Wilminton NC

          Block im

    • Bill G Wilminton NC

      Mark tell everyone to put a BLOCK on this nut !!!

  • horn blower

    “…….forgive our debts and forgive our debtors” End the Fed’s shackles upon our Nation.

    • socalbeachdude

      The Federal Reserve did not run up a single penny of the $19.6 trillion of US government debt which increased by more than $1.4 trillion last year.

      • horn blower

        Correct, our debts came from our stupid people in the government that believes in growing the government, BUT the Fed still must go. Our Congress should get back to coining our own money. Putting us back on the ‘gold’ standard is a good start, using the Fed’s ‘fake’ money is NOT.

        • socalbeachdude

          America long ago moved well past “coins” into FULLY ELECTRONIC MONEY and the Federal Reserve is a superb central bank which will do very well for America and Americans over the coming 100 years. As to the “gold standard” that was a very brief 60 year failed experiment in America from 1873 until 1933 when it was totally ended for domestic purposes and the total amount of gold of around 180,000 metric tonnes in the world is a tiny speck of dust worth less than $7 trillion against the around $800 trillion in global assets. Gold has no financial relevance and never will ever again anywhere in the world.

          • horn blower

            It is clear to me to have no clue in the problems we have created for ourselves when we stopped coining our own money. Nixon took us off the gold standard, because of the debt we created in getting ourselves involved in the Vietnam war, allowing the Fed to continue printing fiat money (money that has no value because it’s not backed up by gold). This was to be temporary, but never returned to the gold standard since. This has made our money worth less over the decades, devaluing it to nothing. We are headed for high inflation, no value to our dollar as more and more of our money returns to us because no one wants to carry our huge debts. Get ready ‘beach dude’ to enjoy scrounging for crabs and clams in the tainted waters off southern California because you and everyone here will be feeling the pain in our pockets soon. Keep pushing their narrative as we know you will. End the Fed!

          • socalbeachdude

            The Federal Reserve was established by CONGRESS and the FEDERAL RESERVE ACT in 1913 and has served the US extremely well throughout its 103 years of existence and will do the same over the next 100 or 200 years or more.

            All currencies in the world are fully backed by the current and future labor and productivity and assets of the citizens of their issuing governments. And that is the core problem that the world is now facing as most governments around the world have ESSENTIALLY RENDERED INSOLVENT THE NET WORTH OF THEIR CURRENCIES BY VASTLY OVERSPENDING BEYOND THEIR MEANS and there are severe consequences for doing so.

            The US dollar, like all currencies, is backed by the current and future assets and labor and productivity of the citizens of the issuing government which is VASTLY MORE VALUABLE than some little junk commodity such as gold or silver.

            The so-called “gold standard” was a very brief 60 year experiment from 1873 until 1933 which proved to be a VERY STUPID AND ABYSMAL FAILURE at which point it was thrown into the garbage bin of the most stupid notions in the history of the world and incinerated.

            The gold standard was TOTALLY DISCARDED DOMESTICALLY BACK IN 1933 as that brief 60 year failed experiment was an exercise in utter absurdity and the US economy had totally outgrown any use whatsoever for a little thingy commodity such as gold in relationship to its currency.

            Little niche collectible fungible commodity metals such as gold and silver have NO FINANCIAL RELEVANCE whatsoever in today’s modern electronic currencies and economies.

            The US long used a “silver standard” until that was discarded around 1870 and briefly replaced with the so-called “gold standard” which was totally discarded domestically in the US in 1933 as an entirely failed experiment. No currency can be limited to the production of some irrelevant “thingy” commodity such as gold or anything else when the population of that currency’s country is vastly expanding as was the case of the US by the 1930s.

            Nixon did not “abandon gold” at all. Nixon merely ended the Bretton Woods currency fixed exchange rate agreement which had been in force from 1944 to 1971.

            Nixon had nothing to do with the “gold standard” in the US which had long ago been TOTALLY DISCARDED BY THE US DOMESTICALLY back in 1933 and only a tiny shred of gold nonsense was even left in the form of international bank transaction convertibility which is what was discarded in 1971.

            Artificially constraining the growth of money supplies while the population is growing substantially CAUSES DEPRESSIONS and causes countries to fail economically.

            The most EGREGIOUSLY INSOLVENT COUNTRY IN THE WORLD TODAY IS JAPAN with government debt at around 250% of the GDP of Japan while the ratio in the EU is around 100% and in the US around 105%.

            Are you not aware that the total value of all gold ever mined is less than $7 trillion which is less than 1% of the world’s total assets of around $800 trillion? And of that total $7 trillion in currently absurdly elevated value for gold around 70% of all gold exists in the form of JEWELRY widely dispersed around the world leaving less than 30% of it even available theoretically to be used in any financial capacity and most of that is OWNED BY PRIVATE PARTIES leaving practically nothing available in the way of gold in relationship to any currencies anywhere in the world.

            Gold has NO FINANCIAL RELEVANCE whatsoever and never will ever again and the total value of the entire 180,000 or so metric tonnes which exist of the stuff are worth less than 1% of the the total assets in the world.

          • socalbeachdude

            The Federal Reserve is a superb central bank and one of the most conservative central banks in the world.

  • John Michael Tate

    The Fed is the drain stopper of the swamp.As long as they hold the reins America will NEVER be FREE!

    • Jamarcus

      You are absolutely correct John. The Fed is the slave master and we all are on the plantation. END THE FED-NOW !

      • socalbeachdude

        Without the Federal Reserve the entire US banking system would cease to function.

        • retired22

          A short period of time until new management was arranged,…minus the FED.

          • socalbeachdude

            You totally fail to even begin to comprehend the scope of the US money and banking system as it exists today.

          • retired22

            We need to be rid of the current financial sector to survive, call it financial surgery to remove the monetary cancer!

          • socalbeachdude

            What inane and laughable nonsense.

    • socalbeachdude

      Laughably false. What you are describing is CONGRESS which is the most egregiously profligate mess in the history of the United States and is solely responsible for running up the federal debt from $1 trillion in 1981 to more than $19.6 trillion in 2016.

    • retired22

      it is like an allegory about a village along a river that has gotten it’s needed water for hundreds of years from the river,…it is their water,it is their river,..always has been.

      Along come some bankers who cheaply buy up the land on both banks of the river & erect a dam across the river that shuts the flow of water off past the dam.

      The villagers complain to the bankers that they have cut off their needed water & the bankers tell the villagers that they will sell their water to them in bottles.
      The villagers are outraged,…why,they ask,should we pay you bankers for our own water that we formerly received for nothing?
      The bankers tell the villagers that of course that is all true,but they are not charging the village for the water…
      They are merely seeking reimbursement for the money they laid out building the dam

      • socalbeachdude

        Huh?

  • jakartaman

    Mark and socialbeachdude
    GET A ROOM!

    • Mark

      I’m straight…lol

  • Black

    Mr Yellen just wants his stinky pu$$ygrabbed

  • Taos61

    Well,it looks like the rubes have been duped again.Tump said he would”drain the swamp” but he has just restocked it with alligators.Being a billionaire is the first prerequisite in being chosen for his cabinet.Trump supporters have fallen for the well worn line that they are the “job creators”.Seem they are looking more for a father figure to make things alright again.Good luck.An IQ test should be mandated for all voters.Those who haven’t the ability to make rational decisions should just be watching wheel of fortune.The Dunning-Kruger is alive and well.

  • whitez

    Those who voted for Trump should bombard him with million of correspondences requesting him to disband the criminal Federal Reserve.

  • alan

    If I was captain of the Titanic I would raise the anchor.

  • jj

    The fact is rates have been too low for too long. Pension funds are in trouble all over the US because there is no yield. On top of this savors and retirees who would spend a great deal of their funds on the real economy are getting decimated causing the wealth gap. You simply cannot take this much capital out of the economy and have it grow. That is why the GDP has been so low. The FED knows all of this and they had to act not only to save their credibility but to start normalizing rates. This has been telegraphed for 3 or 4 months and markets were expecting it. You cannot compare raising rates from today’s extremely low to them normalizing to historical rates going up from 7 to 8% to 18.5% like Volcker did to fight inflation. We have not had rates this low before and it has been a total disaster.
    This will be very good for the economy the quicker they go to normal rates. The stock market knows this and this is one reason why it is going to 20,000 then on to 23,000. If the market breaks the 19970 level at Decembers close the market will take off. If it doesn’t break this level this would indicate a normal correction, (not a collapse), and then we move upward again. Most traders want the correction so they can buy on the cheap. This is all to do with international capital flows flooding into dollar based assets like the Dow and the dollar with again record strength. This is why all those who have been predicting a dollar and Dow collapse for the last 3 years have been wrong. To follow markets you must have computer models that track this flows and then make forecast on financial markets showing reversal levels.
    That old saying is true today as it was in the past, “Follow the money”!

    As I watch price movement the Dow is at 19929. All caused by capital flows.

    • jj

      Forgot to add. The Federal Reserve is owned by the 12 FED branches and these are owned by the banks in the branches jurisdiction. By law all profits of the FED must flow to the Treasury Department and they do make payments which is to the taxpayers. There is so much incorrect nonsense posted on the web it has become as bad as the MSM!

      • retired22

        And just what does the Central Bank do for America that the Treasury Department can’t do!

        • socalbeachdude

          I would suggest you learn about what the Federal Reserve is an all it does at their excellent web site at :

          http://www.FederalReserve.gov

          • Stuey

            You didn’t answer his question.

          • socalbeachdude

            Congress and the US Treasury have no facilities to do the vast scope of things that are presently done by the Federal Reserve and creating those facilities would cost vastly more than doing those things through the Federal Reserve.

          • Stuey

            The US Treasury could “print” the currency, no? That way instead of printing a “note” which is an instrument of debt the US could actually make it’s own currency and create no debt. Then there would be no need to issue bonds and go in debt. Let the Federal Reserve do all the other things that are needed for the banking system, that’s fine. BUT stop their control over the making of “US dollars” which aren’t really even US dollars they are Federal Reserve NOTES.

          • socalbeachdude

            No, the US Treasury cannot just “print” currency at all. And no country can just “print” currency willy-nilly unless they want consequences like what is happening in Venezuela today.

          • Stuey

            Who says? YOU? Any and every country can print their own currency is they so choose. The US Constitution states the US Treasury is suppose to be over producing “coinage”. You ever heard of the GREENBACKS. What do you think they were? They were US currency printed by the US Treasury during the Civil War. For you to say that no country can make their own currency is the dumbest thing I have ever heard you say on here.

          • socalbeachdude

            Nope. I would suggest you read the Federal Reserve Act in its entirety at:

            https://www.federalreserve.gov/aboutthefed/fract.htm

          • retired22

            The Federal Reserve Act was illegal!

          • socalbeachdude

            There is nothing even slightly “illegal” or “unconstitutional” about any part of the Federal Reserve Act.

          • retired22

            There was an old comedy skit where some guy asks his wife “Who do you believe,.me or your lying eyes”?
            I believe my lying eyes
            & as far as you are concerned,…if you were to tell me that it was raining outside,..I would go outside to check for rain drops!

          • Lennie Pike

            Is that a fact.

          • retired22

            As long as they control the price & flow of credit they will be stealing from us!

          • socalbeachdude

            The Federal Reserve does no such thing at all as you erroneously assert.

          • retired22

            Just what do they then do?
            Work for charity,to enrich their souls?

          • Lennie Pike

            Is that a fact.

          • retired22

            Nothing would cost more then what America has paid in blood,misery & wealth for the last 100 years by allowing the Fed to control America’s finances!

          • socalbeachdude

            What utter nonsense.

          • retired22

            Are you a comedy act?
            I am laughing as I type!
            You are saying that I should check with the
            Feds official site to find out if the Fed is worthwhile.
            This is funnier then the old Abbot & Costello routine about ”Who is on second,no he is on third & what is on second”

          • socalbeachdude

            The Federal Reserve web site is superb and the best source of information and data regarding the Fed4eral Reserve and you would learn a great deal if you actually took the time to read and attempt to comprehend it.

      • Lennie

        Why not an audit then?

        • socalbeachdude

          The annual financial reports of the Federal Reserve are always fully independently audited each and every year and those highly detailed reports which typically run about 500 pages each and are signed off by their independent auditor each and every year.

          Those reports are at:

          http://www.federalreserve.gov/publications/annual-report/

          • Lennie Pike

            Is that a fact.

          • socalbeachdude

            Yes.

          • Lennie Pike

            If you didn’t see a question mark in my comment, then who are you speaking to.

          • retired22

            Al Capone had a star witness in his trial for criminal activities who swore that Al Capone was innocent of all charges!
            The name of this star witness happened to be Al Capone

      • socalbeachdude

        Correct, but the Federal Reserve is actually owned by its around 6,200 member banks and rebates more than 94% of its annual profits each year to the US Treasury.

        • retired22

          What became of the other 6%?

          • socalbeachdude

            The other 6% of annual Federal Reserve earnings is paid out as a dividend to the around 6,200 member bank shareholders of the Federal Reserve.

          • retired22

            Why pay the 6% for services the Treasury Dep’t can render for free!

          • socalbeachdude

            There is no such thing as “free” and in the case of the federal government if it tried to take over any part of what the Federal Reserve does it would be VASTLY MORE COSTLY by orders of magnitude than the tiny amount of dividends that the Federal Reserve pays out to its member bank shareholders. You seem to forget that the Federal Reserve is the largest single entity CONTRIBUTOR EACH YEAR TO US TREASURY REVENUES and rebates nearly $100 billion a year to the US Treasury and its taxpayers.

          • Stuey

            And keeps 6 billion for themselves, at least that is all they claim, who knows since they won’t allow an independent audit by Congress.

          • socalbeachdude

            There is NOTHING even slight “secret” about the Federal Reserve which is TOTALLY TRANSPARENT AS TO ITS BALANCE SHEET which it reports in full to Congress and the American public each year and is fully independently audited each and every year by a top 4 accounting firm in the US as is clearly stated in its preface. Each annual report runs about 500 pages of highly detailed information and they are all available for all to see at:

            http://www.federalreserve.gov/publications/annual-report/

            Once again, more than 94% of the annual profits of the Federal Reserve each year are REBATED TO THE US TREASURY by the Federal Reserve.

          • Stuey

            When an accounting firm audits the Fed that is called “the fox guarding the hen house”

          • socalbeachdude

            Laughably false nonsense.

          • Stuey

            You should know, you are full of nonsense.

          • socalbeachdude

            Hardly!

          • Stuey

            Audited by accounting firms, that is called “the fox guarding the hen house”

          • socalbeachdude

            The top 4 accounting firms in the US are the only ones with the resources, staff, and knowledge to do extensive and complex audits and obverse high standards of excellence and a very high level of accuracy. They are responsible for ALL MAJOR AUDITS IN THE US for public corporations.

          • Stuey

            Nope, you are wrong again.

          • socalbeachdude

            I am obviously 100% correct.

          • Stuey

            WRONG! now say you are correct again and i will say you are wrong again…….ditto ditto ditto

          • socalbeachdude

            In your world, exactly WHO would be qualified to audit corporations and the Federal Reserve?

            Congress can’t even produce its own budget and doesn’t release GAAP General Ledger financial statements and has never ever done so.

          • Stuey

            Let’s have an open congressional hearing where the Federal Reserve opens it books for ALL to see.

          • socalbeachdude

            Each and every year, as has been the case for 100 years, the Federal Reserve issues FULLY INDEPENDENTLY AUDITED Annual Financial Statements which are extremely detailed and run around 500 pages each year. They are fully publicly available for you and anyone else who is interested in them to fully read and review at::

            http://www.federalreserve.gov/publications/annual-report/

            I would suggest you LEARN ABOUT THE FEDERAL RESERVE rather than making wrong, ignorant, and clueless assertions about it. The best way to do that is to go to their web site at:

            http://www.FederalReserve.gov

            Have you read them? What more do you want to know?

            While I am certainly no fan of Fauxcohontas, even she finds further audits unnecessary and meddlesome.

            Senator Elizabeth Warren Fires Back at Rand Paul

            Sen. Elizabeth Warren (D., Mass.), a member of the Banking Committee and an outspoken critic of the Fed’s oversight of big banks, said she does not support Mr. Paul’s proposed legislation, which she said could have “dangerous” implications for monetary policy.

            “I strongly support and continue to press for greater congressional oversight of the Fed’s regulatory and supervisory responsibilities, and I believe the Fed’s balance sheet should be regularly audited – which the law already requires,” Ms. Warren said in an emailed statement. “But I oppose the current version of this bill because it promotes congressional meddling in the Fed’s monetary policy decisions, which risks politicizing those decisions and may have dangerous implications for financial stability and the health of the global economy.”

            http://reason.com/blog/2015/02/11/elizabeth-warren-wont-back-rand-pauls-au?utm_campaign=naytev&utm_content=54db9c42e4b0e5bac528e567&fb_ref=Default

          • Stuey

            I don’t believe anything that is on the Federal Reserve’s own website.

    • socalbeachdude

      Interest rates in the US economy are set by the US Treasuries markets and prices in those markets are falling causing yields (interest rates) to soar upwards with the benchmark 10 year Treasury rapidly moving towards 3.00%. Stocks in the US are preposterously overpriced and will be falling significantly as earnings continue to plunge as they have been doing for the past 14 months and as the US dollar soars upwards in value and as interest rates continue to increase in the US Treasuries markets.

  • Richard O. Mann

    Trying to do away with the Federal Reserve, is the same as placing a target on one’s back, and a sign that says “shoot me.” It is big and powerful, and if you get in it’s way, it will kill you. There are so many people and groups lining up wanting to take a shot at Trump. His security people are going to be busy.

    • retired22

      Trump,with his powers as president,can see to it that the financial system that the Fed.represents fails to make the profits it needs to sustain the financial sector,….Drastically curtailing international finance can make the Fed. impotent.
      P.S.Trump will be safe in his fortress in Trump Towers,..the Bush clan won’t be able to shoot him like they shot president Reagan.

      • socalbeachdude

        False. The Federal Reserve has nothing to do with international finance and 94% of the profits of the Federal Reserve are rebated to the US Treasury for the benefit of its taxpayers and those rebates are now nearly $100 billion a year.

    • socalbeachdude

      Laughably false.

  • noah

    The jews own the federal reserve. I know you guys want to believe is BS but Hitler wasn’t some CRAZY CRAZY jew hater and everyone followed him. The German people want the Jewish Central Banks out!!! Thats it. Makes sense huh? 911 who made money A JEW LARRY SILVERSTEIN! Jealous of our freedom! LOL WAKE UP EVERYONE!

    • socalbeachdude

      Absolutely false. Cut your nonsensical and hateful Anti-Semitic nonsense.

  • noah

    Goldman Sacks owns the federal reserve. Turns out Churchill was bought by the Jews and tricked americans into getting into it. Those jews!

    • socalbeachdude

      Absolutely false. Goldman Sachs certainly does not “own the Federal Reserve” which is owned by its around 6,200 member banks in the United States. Moreover, the Federal Reserve rebates more than 94% of its profits each year to the US Treasury and was created by an Act of Congress and is controlled by Congress which has the power to amend the Federal Reserve Act at any time.

  • BS1986

    AH and here comes our “punishment” for voting Trump into office, NOW they can release the economic depression they have been holding off on under Obozo the clown.
    Get ready, its going to get interesting.

  • noah

    Trump picks for the cabinet don’t show you he was bought an paid by the jews!!!!! Trumps a fraud!!!

    • socalbeachdude

      Donald Trump’s lovely and charming wife, Melania, is Jewish and so is his son-in-law Jared who is from an orthodox Jewish family and his wife, Ivanka, converted to Judaism when she married Jared. Donald Trump’s son Baron is also Jewish because of his Jewish mother. Jewish people are very fine folks and are very much part of the American family of citizens.

      • LIZ THE SHIZ

        I don’t think so Melania’s relatives were probably Nazi collaberators during WW2

        • socalbeachdude

          What does that have to do with anything?

  • The American Horror Story

    “We are supposed to be a free market capitalist economy. So why not let the free market set interest rates?”. You used one word twice in those two sentences which unfortunately no longer apply to america(ns): “Free”. Though, what’s even more alarming to me, as Carlin once brilliantly pointed out: “….And no one seems to care, no one seems to notice; the big red, white, and blue d**k being jammed up their as*.”

    So I say mush on. There are those who will hoplessly remain cognitive dissonant out of “fear” and those who have properly planned (And no, I’m not talking about bunkers, beer and bullets).

    • socalbeachdude

      The “free market” does set all interest rates that matter in the US economy and that specific “free market” is the $13 trillion a year US Treasury markets where more than $7 trillion a year in new US Treasuries ranging in duration from 1 month to 30 years SETS ALL INTEREST RATES THAT DO MATTER IN THE US ECONOMY.

      The only 3 rates that the Federal Reserve is involved with setting are:

      1) Federal Discount Rate – currently 1.50%

      2) Federal Funds Rate (which it influences) – currently in the range of 0.50% to 0.75%

      3) Federal Reserve IOER (Interest On Excess Reserves) – currently 0.75%

      The IOER (Interest On Excess Reserves) interest rate does have an immediate beneficial impact for banks as it is the interest paid to banks on their excess reserves accounts inside the Federal Reserve and those accounts now have more than $2.5+ trillion sitting in them.

      The FOMC voted to raise the only 3 interest rates set by the Federal Reserve on December 14, 2016 and indicated that it will raise those only 3 interest rates by about 0.75% in 2017 – but that will remain well behind the yields (interest rates) set by US Treasuries which is what really sets all interest rates that matter in the United States economy..

  • noah

    The Jews won WW2 not America. The only places without jewish central banks are wait for it wait for it “cuba, syria, Iran, Sudan and Libya. WAKE UP. Your pride makes you believe your programing!!!

    • retired22

      Ah,the Joooooos, that needs to be the reason we won WW2,what else could it be?
      The only confusion I have is,…are these Jooooos the real kind that live on Earth,or are they the Jooooo demons that rattle around in the cavity you have between your ears?

  • noah

    Im sorry to tell you but money is the reason for everything! WW2 was found to get the Jewish banks out of Germany. Hilter wasn’t some crazy jew kill stupid!!!! Your pride stops you from seeing truth!!!

  • noah

    The jews suck the blood out of a baby genitals. Its not rape in america its JEWS! GREAT JEWS! Stupid goy!

  • Joltin Joe

    Trump should just Abolish the FED, print REAL money with no interest attached. (Well as real as fiat currency can get anyway)

    • socalbeachdude

      REAL MONEY in the United States is the US DOLLAR and it has been soaring upwards on the DXY and is now over 102 on the DXY and the US dollar is and will remain the only LEGAL TENDER currency in the United States.

      As to that little niche fungible speculative commodity gold that stuff has been PLUMMETING ever since September 2011 and is now down nearly 45% in value since its manic speculative high back then.

      • Joltin Joe

        You might want to look up fiat currency 🙂 nothing ‘real’ about it

        • socalbeachdude

          What currency do you use to pay your bills, shop at stores, or invest in the US?

          Obviously, the US DOLLAR.

          • Lennie Pike

            Is that a fact.

            Unless he earned his pay in another country’s currency, converted it into dollars, and then paid his bills – right Habib?

            Like I said – Indians are not taught how think in Indian Universities, so they say make a lot of stupid statements. They all seem to have been subjected to a lot of pressure to conform into being the same and have not developed into distinguishable individuals.

            Unfortunately U.S. Universities are now the same – must be a major reason Indian graduates are acceptable now to U.S. companies.

          • socalbeachdude

            Huh?

          • Joltin Joe

            That doesn’t mean is worth anything. People used to use sea shells as currency.

          • socalbeachdude

            Not to mention beaver pelts, bird feathers, and glass beads. Do you really want to go back to such crude barter methods versus the US dollar? Really?

          • Joltin Joe

            No, I want our government to print the money, not pay the FED to print it and have us pay interest.

          • socalbeachdude

            The Federal Reserve rebates 94% of their annual profits each year to the US Treasury which means that all of their holdings of around $2.5 trillion in US Treasuries is essentially INTEREST FREE to the US Treasury. The Federal Reserve not only does not cost US taxpayers a single penny, but is the single largest source of US government revenues with the rebate of around $100 billion a year to the US Treasury.

            As to interest charges in the economy, all money has a TIME VALUE and that time value is codified into INTEREST when loaned to anyone. NOBODY WOULD LOAN A SINGLE CENT TO ANYONE – OBVIOUSLY – WITHOUT CHARGING INTEREST.

            There are 3 components to interest rates.

            Interest rates are comprised of:

            1) real rate (typically around 3% historically)

            2) inflation adjustment (now correctly at zero)

            3) risk of default (now rising astronomically)

            The risk of DEFAULT is higher than ever and will continue to rise.

            All interest rates that matter to the US economy are SET BY THE US TREASURIES MARKETS which are a $13 trillion a year market. The reason that yields (interest rates) are so low there is because DEMAND FOR US TREASURIES IS AT RECORD HIGH LEVELS and the greater the demand the lower the yields (interest rates) as prices of bonds are inverse to their yields.

          • Joltin Joe

            You must work there, I’m done talking to you about this! You must be the propaganda arm of the FED

          • socalbeachdude

            Nope. Just a highly informed observer!

          • Joltin Joe

            I believe that banking institutions are more dangerous to our liberties
            than standing armies. If the American people ever allow private banks to
            control the issue of their currency,
            first by inflation, then by deflation, the banks and corporations that
            will grow up around [the banks] will deprive the people of all property
            until their children wake-up homeless on the continent their fathers
            conquered. The issuing power should be taken from the banks and restored
            to the people, to whom it properly belongs.
            Thomas Jefferson, (Attributed)
            3rd president of US (1743 – 1826)

          • socalbeachdude

            Where on earth do you come up with such utter nonsense?

            Thomas Jefferson NEVER MADE ANY SUCH STATEMENT and that quote is TOTALLY BOGUS as has been clearly established by the Monticello Foundation and many others. The terms inflation and deflation didn’t even exist back then.

            http://www.monticello.org/site/jefferson/spurious-quotations

            http://www.monticello.org/site/jefferson/private-banks-quotation

            Moreover, are you not aware that Thomas Jefferson was one of the most fiscally profligate DEBTORS in the US at the time of his death and that he died owing $107,000 which was a MASSIVE DEBT at the time when his entire Monticello plantation was worth only $4,500 and that he stiffed creditors to the tune of more than $100,000?

            “Because Jefferson died more than $107,000 in debt, his daughter Martha Jefferson Randolph and her son and financial manager, Thomas Jefferson Randolph, found it necessary first to sell nearly all of the contents of Monticello and then to sell the plantation itself. In 1827, the furniture, animals, farm equipment, and slaves were offered at an executor’s sale. In 1831, James T. Barclay, a local apothecary, purchased the home and 552 acres for $4,500, less the value of his own home.”

            http://www.monticello.org/site/house-and-gardens/monticello-house-faq

            Little Tommy was the VERY EPITOME OF FRAUD AND CORRUPTION and was the most BANKRUPT and FISCALLY IRRESPONSIBLE PERSON IN AMERICA at the time of his passing.

          • Joltin Joe

            Why do you Thumb every comment you make up? That’s lame dude

          • socalbeachdude

            Why not? What’s “lame” is you putting up refuteably false assertions.

          • Joltin Joe

            Lame is being the only up-vote on all your comments. You enjoy ‘patting yourself on the back?’ Good boy, haha

  • David

    the left is trying so hard to keep Trump out of the white house. few avenues to achieve this are: Electoral College electors Betraying Trump & his constituents. special session of congress on Jan, 6, 2017. disruption of the inauguration Jan, 20, 2017. If all of this fails & Trump gets to sit in the Oval Office like the X22 report has said: Brace for Impact!!

    it’s sad the rest of us has to suffer financially at the hands of the Fed
    while they play their Geopolitical Games.

    • socalbeachdude

      Nobody is “suffering at the hands of the Fed” at all and the Federal Reserve is the single largest entity contributor each year to US government tax revenues as it rebates more than 94% of its profits each year to the US Treasury and its taxpayers.

  • LIZ THE SHIZ

    good, let them rebalance the economy to a normal balance between higher interest rates and a moderate curb on inflation , the last 8 years where an aberration where the TBTF Banks and elites controlled the economy to only benefit themselves , but still we must be wary of the Fed because their mission is to make interest on our GDP , I hope someday we take back and control our own financial system.

    • socalbeachdude

      The most irresponsible entity in the United States is the US Congress – who you want to have total control – and is exclusively responsible for running up the federal debt from $1 trillion in 1981 to $19.6 trillion in 2016. And that federal debt – due to grossly profligate and irresponsible spending – increased by more than $1.4 trillion last year.

      • LIZ THE SHIZ

        and provided with cheap interest rates from your friends at the Fed

        • socalbeachdude

          False. The Federal Reserve does not loan funds to anyone other than member banks (at the very high Federal Discount Rate and then only for overnight purposes on a fully collateralized basis) and has little to do with actual interest rates in the US economy all of which are keyed off the yields (interest rates) on US Treasuries.

  • Dave Russell

    The Fed raising interest rates and OPEC announcing a cut-back on production (causing oil prices to rise) are both intended to destroy any chance of Trump being able to “fix” anything. Everything comes in threes, so expect at least one more thing to further erode Trump’s chances of getting the economy going.
    Problem is, most citizens are completely out of touch with reality and just wait for that gov. check to arrive each month.
    We must keep telling ourselves that, in the end, God is still in control.

    • socalbeachdude

      False. The Federal Reserve only sets 3 interest rates and none of them matter a hoot in the US economy. All interest rates that do matter a directly keyed from the yields in the US Treasury markets and that has always been the case. Interest rates presently are a tiny fraction of normal historical interest rates and need to move back up to a normal 5.25% and the sooner they do that – as a result of yield increases in the US Treasuries markets – the better.

      • Dave Russell

        I understand what you’re saying about “natural” levels of interest-rates. But I’m talking about the TIMING of all of these decisions.
        I appears the oil prices are dropping again (mainly due to the rise in the value of the $US) so I doubt if any of these actions will work the way they’re supposed to.
        It seems, these days, that most individuals in the positions to make these changes aren’t as smart as they think they are. They seldom see the unintended consequences of their actions, which, although it is usually to the detriment of our society, this time they may be to benefit society.
        I pray to God to protect Trump from the assaults that he will face over the next four years.

        • socalbeachdude

          The Federal Reserve has only increased the 3 interest rates they set TWO TIMES over the past 10 years and should have promptly moved them back up long ago – but for the yields in the US Treasury markets dictating that they not be increased.

          There are 3 components to interest rates.

          Interest rates are comprised of:

          1) real rate (typically around 3% historically)

          2) inflation adjustment (now correctly at zero)

          3) risk of default (now rising astronomically)

          The risk of DEFAULT is higher than ever and will continue to rise.

          All interest rates that matter to the US economy are SET BY THE US TREASURIES MARKETS which are a $13 trillion a year market. The reason that yields (interest rates) are so low there is because DEMAND FOR US TREASURIES IS AT RECORD HIGH LEVELS and the greater the demand the lower the yields (interest rates) as prices of bonds are inverse to their yields.

  • tacoma

    This is the perfect time for Trump to End The Fed.

    There are two federal agencies that run themselves, accountable to no elected politicians. They anchor the Deep State. One is the Fed. The other is the MSC – military/security complex. They get their trillion dollar funding no matter what.

    Sit back and reflect on the damages they did to the U.S. and the word. Fed – production of economic bubbles, crashes, foreclosures, industrial blow up, destruction of savings, 1% oligarchy. MSC – production of wars for profit, war of religion, neo-colonial conquest; production of global terrorism as a result of military interventions into other people’s land.

    The Deep State will fight Trump, perceived as the outsider traitor, with everything they got. Their survival could be at risk. And if this war within the government spread to become full blown national civil war, why let it be.

    Be warned. Be prepared.

    • socalbeachdude

      The Federal Reserve is not a “federal agency” at all and does not cost US taxpayers a single penny but rather rebates 94% of all of its annual profits to the US Treasury which now amounts to a nearly $100 billion a year revenue source for the US government and its taxpayers.

      • winrob

        Wonderful satire. And there are fairies in the White House flowers!

        • socalbeachdude

          I would suggest you learn about the US Treasuries markets in bills, bonds, notes, and TIPS at:

          http://www.TreasuryDirect.gov

          • winrob

            So the owners of this private bank run it as a charity? That’s why our government ALWAYS installs a central bank in each country we conquer like Iraq? More charities? That’s why we borrow money from China and Japan and pay them billions in interest instead of getting the money returned to our Treasury? Right.

          • socalbeachdude

            Huh? The US has nothing to do with central banks in other countries and the total amount of US Treasuries owned by China and Japan amount to only about 13% of the total outstanding US Treasuries of more than $19.6 trillion.

      • Stuey

        who gets the other 7 billion?

        • socalbeachdude

          US Treasuries are issued by the US government for durations ranging from 1 month to 30 years and most of those are very short term durations (less than 10 years) and the proceeds from around the $5.5 of the $7 trillion of new US Treasuries issued year are are used to pay the holders (owners) of US Treasuries in full at maturity of the US Treasuries they own.

          • Stuey

            No….i meant the other 7 billion in profit that you admitted the Fed Reserve makes. 107X94%=100.5……so where does the other profits go(actually 6.5 billion but i just rounded it up).

          • socalbeachdude

            Around $6 billion of the annual Federal Reserve earnings (profits) are paid to its around 6,200 member banks as a DIVIDEND on their investment share holdings in the Federal Reserve.

          • Stuey

            Oh OK……..now we are getting some where. You finally admit that the Federal Reserve is making a profit for all it’s member banks. 6 billion…..not bad.

          • socalbeachdude

            That is a very modest dividend.

          • Stuey

            The US Treasury could do it for free.

          • socalbeachdude

            The “free” federal government services are precisely why we now have a $19.6 trillion federal debt increasing by around $1.4 trillion a year. Helllooooooo?

          • Stuey

            You are being obtuse on purpose. If the US Treasury printed their own currency there would be NO national debt.

          • socalbeachdude

            But in its place there would be a TOTALLY WORTHLESS US CURRENCY versus the US dollar which is soaring upwards in value.

            No government can ever spend an unlimited amount of funds and all governments must operate with fiscal responsibility or face the consequences.

          • Stuey

            Oh yeah right, the fiat federal reserve note has so much intrinsic value. When the US Treasury starts making real US dollars people will turn their backs on the federal reserve notes.

          • socalbeachdude

            Currencies do not need any “intrinsic value” as they are CURRENCIES used as a MEDIUM OF EXCHANGE and their value is established in the FX markets relative to other currencies. The FX markets are a $5.3 trillion a day market. Other assets that you can hold “intrinsic” value in such as collectibles including metals such as gold ARE NOT CURRENCIES and have no relevance to currencies other than as specific assets which can and do vary wildly in prices – unlike currencies.

          • Stuey

            Any person can use any thing they choose as a medium of exchange. It doesn’t have to be currency.

          • socalbeachdude

            Only a currency can be used as a medium of exchange and anything else is merely BARTER transactions.

          • Stuey

            When you barter you are using the items as medium of exchange. We don’t need your Federal Reserve Notes.

          • socalbeachdude

            And just how are you planning to do that in the $18 trillion a year US economy that mostly operates with electronic digital money transactions?

          • Stuey

            The US Treasury is going to start printing REAL US dollars. In the meantime, there is an entire segment of the economy that currently going on through barter. But elites like yourself would know nothing about that.

          • socalbeachdude

            When pigs fly!!!

          • Stuey

            Yeah, you and your banker friends hope so. We will see.

          • Stuey

            When the US Treasury starts printing it’s own currency, lets see what currency the American people choose and what they think is worthless. If you have so much confidence in your Federal Reserve Notes then you should have no problem with a little competition from the US Treasury.

          • socalbeachdude

            That is obviously not going to happen.

          • Stuey

            We will see.

          • Stuey

            The free govt. services you speak of have no relation to the US Treasury printing it’s own currency for free which I mentioned. You are off in left field some where.

          • socalbeachdude

            The US Treasury is not allowed to create any currency other than printing physical US dollars for the Federal Reserve.

          • Stuey

            That can and will be changed with the appeal of the Federal Reserve Act.

          • socalbeachdude

            Can and will are two entirely different things.

          • Lennie Pike

            Then you admit that your previous “factual” statement that The Fed doesn’t cost Americans one cent was laughably false.

            Just since 2008, the cost has been over $28 trillion. We will never know the actual figure.

          • socalbeachdude

            The Federal Reserve DOES NOT COST TAXPAYERS OF THE US A SINGLE PENNY. The 6% dividend to member bank shareholders COMES FROM PROFITS GENERATED BY THE FEDERAL RESERVE AND HAS NO COST WHATSOEVER TO TAXPAYERS WHO GET MORE THAN 94% OF THE PROFITS OF THE FEDERAL RESERVE EACH YEAR REBATED TO THE US TREASURY. What is so difficult for you to comprehend about that.

            The total size of the Federal Reserve balance sheet is around $4.4 trillion and the Federal Reserve has not run up a single penny of the US government debt but rather holds /owns about $2.5 trillion of that debt which is INTEREST FREE TO THE US TREASURY and its taxpayers. There is NO COST AT ALL TO THE US TAXPAYERS from the Federal Reserve but rather nearly $100 billion in revenues to the US Treasury.

          • Lennie Pike

            Go back to India please. That will be a fact sooner or later.

      • tacoma

        Of course you’re right but I don’t want to get formal. The Fed is a quasi-agency owned by the biggest and most elite of America’s private banks. It’s job is to produce profits for private banks, bail them out of troubles. The Fed was given 2 mandates by Congress – promote economic grown and promote employment. It has the power to issue money out of thin air to an infinite amount. It even can give this ‘fiat’ money to the Treasury to run the government, instead of taxation. The Fed balance sheet is top secret, unavailable even to Congress. The Fed runs without interference from presidents and Congress. If the Fed ‘fails’ in any matter, nothing happens. That’s because itself defines success/failure, and no one knows its numbers. But if the Fed do not yield enough profit for its shareholders, the member banks who staff the various ‘district’ Fed chairs will vote to replace the Fed chair.

        Now contrast the above with central banks of other major democratic countries. Let’s take Canada for example:

        – The Bank of Canada is own 100% by the government, supervised and report to the Minister of Finance. The Finance minister can look into the Bank’s balance sheet and other details, can fire the governor.
        – The BoC has only one mandate given by Parliament – maintain currency stability within a small range of 2% inflation. It has no role to promote growth or employment – which is the done by the Finance ministry and private sector. (And this is why you don’t see out of control monetary bubbles in Canada.)
        – If the BoC fails significantly in 2% dollar inflation, the governor will be fired.
        – The BoC can issued fiat money like the Fed. This money must be issued to member (called chartered) banks 100% backed by real assets. It cannot use the money to finance government expenses – which the Fed have done to a few trillion dollars.
        – It cannot bail out banks – it only job is to de-certify failed banks. Failing banks will fail.
        – The BoC does not make a profit for anybody. It is pure public service.

        A country up North so close in many way, yet so different in many fundamental national philosophy. But the BoC model is used by just about all western banks. No other country use the Fed model. Nor the U.S federal government model.

        • socalbeachdude

          The Federal Reserve cannot and does not ever “give” any money to the US Treasury and the only way that any funding of the US Treasury ever takes place with the Federal Reserve is when it purchases NEWLY ISSUED US TREASURIES and it only purchases about 8% of new US Treasuries each year to replace matured US Treasuries in its portfolio.

          There is NOTHING even slight “secret” about the Federal Reserve which is TOTALLY TRANSPARENT AS TO ITS BALANCE SHEET which it reports in full to Congress and the American public each year and is fully independently audited each and every year by a top 4 accounting firm in the US as is clearly stated in its preface. Each annual report runs about 500 pages of highly detailed information and they are all available for all to see at:

          http://www.federalreserve.gov/publications/annual-report/

          Once again, more than 94% of the annual profits of the Federal Reserve each year are REBATED TO THE US TREASURY by the Federal Reserve.

  • HeyAHuman

    A quick, unnatural economic pop from the Trump buzz and they’re gung ho about jacking the interest rates. I swear they’re trying to crash the system again.

    • socalbeachdude

      All the Federal Reserve is doing is moving towards matching the only 3 interest rates they set – which are of no importance whatsoever in the US economy – with the yields (interest rates) set by the US Treasuries markets which have been soaring upwards ever since July 2016.

      • Stuey

        why do people on Wall St. even pay any attention to what the FED does then?

        • socalbeachdude

          Many people on “Wall Street” are extremely stupid and pay no attention at all to facts and fundamentals which is precisely why the markets have soared upwards which earnings have continued to plummet over the past 14 months and while bonds have been crashing in value ever since July 2016 – which is where all interest rates that do matter in the US economy are keyed from.

      • Mark

        The Fed can raise interest rates more than 3 times. They can raise them a Zillion times if they want to.

        • socalbeachdude

          So what? The only 3 interest rates set by the Federal Reserve have NO IMPACT WHATSOEVER in the US economy and it really wouldn’t matter if they raised the Federal Funds Rate and Federal Di9scount Rate to 1000% as they are PRACTICALLY NEVER EVEN USED.

          • Mark

            Disagree….The Fed manipulated short term interest by entering in open market operations and adjusting reserve requirements. This results in manipulation of inflation. As you stress all the time about treasuries the corrupt Fed uses open market policies by buying or selling Treaury bonds. This results in an increase or decrease in money supply. They can also adjust banks reserve requirements and have specific amounts of cash or deposits. One manipulating tool is influencing market perception by influencing investor’s perceptions such as Yellen going public and BSing investors saying for instance the economy is growing to quickly or that inflation is rising to quickly.

            Now they are manipulating the credit market by expanding these markets by encouraging lending institutions to lend in spite of bad or declining economic conditions such as credit markets.

            Again it’s manipulation and corruption to get an outcome that is not created by the free markets.

          • socalbeachdude

            There is practically 0% INFLATION in the US these days and we are in an extremely DEFLATIONARY ENVIRONMENT in the US and globally.

            The Federal Reserve is currently TIGHTENING THE CREDIT MARKETS, not expanding the credit markets.

            Given the huge amount of excess reserves in the banking system consisting of more than $2.5 trillion and the extremely low outstanding loans to customer deposits ratio, the Federal Reserve has no tools whatsoever left in toolbox to contract the money supply through either POMO or TOMO.

  • socalbeachdude

    Axiomatically the US dollar strengthens and its purchasing power increases as the prices of goods and services fall as they do in a depression.

    • Seen2013

      Read the Wiemar Agreement.
      Or to summarize:
      Bismarkian Policies catalyst of public-private partnerships were not sustainable due to the debts incurred by Germany after World War I leading to the Wiemar Agreement who agreed to maintain Bismarkian Policies the debt would have to be paid off rapidly through debased currency or compel the debts to be repudiated as a result of debased currency.
      The payments were effectively refused and was not repudiated leading to increasing inflation rates via monetary policies that ignited Germany’s Hyperinflation.

      • socalbeachdude

        That has nothing whatsoever to do with the United States. The only similarity of that situation in the 1930s in Germany would be to what is happening in Venezuela today.

        • Seen2013

          Do you deny that Republicans promote public-private partnerships through wealth effect, and Democrats promote public-private partnerships through wealth redistribution?
          Do you further deny that public-private partnerships are dependent on deficit to debt spending?
          Do you further deny old school measurements estimate deficit to debt spending accounts for over 80% of GDP?

          Your response states that you do.

          • socalbeachdude

            Politics has nothing whatsoever to do with the decisions made on a consensus basic by the 12 member FOMC at the Federal Reserve. As to the “deficit to debt” assertion and GDP, your assertion is nonsensical and total US government spending is around $4 trillion in our $18 trillion a year economy and last year’s Fiscal 2016 deficit was about $1.4 trillion.

      • Bill G Wilminton NC

        Seen 2013 Put a block on socalbeachdude…..

        • Seen2013

          I reached the same conclusion. I don’t mind disagreement, but it was hardly a discussion…

  • socalbeachdude

    The biggest concern regarding the Federal Reserve is its SOLVENCY as it vastly more leveraged than Lehman Brothers was at the time of its collapse. The Federal Reserve’s asset / liability portfolio is now around $4.4 trillion as a result of expanding it from $800 billion by around $3.6 trillion to the $4.4 trillion amount. That portfolio on a “mark to market” base is now significantly adversely impacted by the huge increase in interest rates which has occurred in the US Treasury markets and other bond markets this Fall where losses are now pushing $3 trillion on a “mark to market” basis.

    The Federal Reserve has VERY LITTLE CAPITAL / EQUITY due to the fact that it is required by law to REBATES 94% OF ITS PROFITS EACH YEAR TO THE US TREASURY and its present capital / equity basis is only around $55 billion which compared to its assets / liabilities represents leverage of around 80:1. The only way that the Federal Reserve can be recapitalized to lower the leverage amount is through 1) member banks purchasing more shares in the Federal Reserve, and/or 2) the Federal Reserve retaining more of its annual earnings (profits).

  • socalbeachdude

    U.S. Budget Deficit Totaled $136.65 Billion in November

    The U.S. budget deficit widened last month, highlighting the growing mismatch between government spending and revenues.

    The federal government ran a $136.65 billion deficit in November, the Treasury Department said Monday.

    That was more than double the federal budget deficit of $64.55 billion in November 2015, largely because of a quirk of the calendar.

    Economists surveyed by The Wall Street Journal had expected a budget deficit last month of $135 billion.

    In November, total receipts were down about 2% from the same month a year earlier. Total federal outlays rose roughly 25% compared with November 2015, when some scheduled benefit payments had been recorded instead in October 2015 because Nov. 1 fell on a Sunday.

    The Treasury said, adjusting for that timing shift, spending rose about 6% last month from a year earlier and the monthly deficit widened by roughly 21% on the year.

    http://www.wsj.com/articles/u-s-budget-deficit-totaled-136-65-billion-in-november-1481569200

  • WTP

    I used to enjoy reading this site but you have gone off the partisan deep end. The interest rates were kept low under Obama because of how the economy was. Now that it’s getting better, they raise the interest rates. You use to be way more subjective in your reporting but your bias is clearly shining through. I will never read your blog again.

    • WTP

      I mean objective.

    • Seen2013

      The economy never recovered as old school measurements estimating deficit to debt spending accounts for over 80% of GDP, which raising interest rates will derail that contagion will send across the global economy through the fact the global economy is dependent on globalization via promoting and enhancing public-private partnerships, which is the catalyst to both wealth effect and wealth redistribution.

      • socalbeachdude

        The only 3 interest rates set by the Federal Reserve don’t matter a hoot regarding what you are talking about, and all interest rates that do matter in the US economy are SET IN THE US TREASURIES MARKETS where interest rates have been soaring upwards since July 2016.

        • retired22

          And the Treasury markets rates which determine the market come out of the FED.

          • socalbeachdude

            Absolutely false. The yields (interest rates) on US Treasuries are determined by the US TREASURY MARKETS which are the largest bond markets in the world with a vast array of participants and over $13 trillion of transactions a year.

          • retired22

            Hoss droppings!

          • Bill G Wilminton NC

            Just block socalbeachdude

          • socalbeachdude

            Why are so you so afraid of being exposed to the actual facts and attempting to comprehend them?

    • retired22

      The economy is getting better?
      Which economy are you alluding to,…the economy I see is surviving on tricks & life support!
      You say that you are never coming back?
      Can you put that into writing,..we can’t live on promises!
      And as for leaving,…where will you go,..back to Mad Magazine?

      • socalbeachdude

        The US economy is an $18 trillion a year economy which is the largest single country economy in the world by far.

  • Seen2013

    “But now that Donald Trump has won the election, the Fed all of a sudden
    has decided that the time is perfect to begin a program of consistently
    raising rates.”

    Naturally, the Federal Reserve is the lever of the public-private partnership catalyst of wealth effect and wealth redistribution that by old school measurements estimates deficit to debt spending accounts for over 80% of GDP. In other words, when Russo-Sino convinces either Germany or Saudi Arabia to turn against the US Dollar in denominated trade, deficit to debt spending accounting for over 80% of GDP will have to be completely monetized by the Federal Reserve, and this ties directly to Progressive Government maintaining its Big Government Powers without raising taxes tremendously. In short, the whole $15 an hour wage movement is going to face increased tax brackets in the name of attempting to outpace currency debasement aka inflation through increasing purchasing power from much of the country around 2.40 to around 5.00.
    Liberals read that very carefully; minimum wage right now for much of the country has around 2.40 in purchasing power or parallel to that of China’s wages that the wage increase to $15 an hour will only increase to around 5. in purchasing power for less than a year at present inflation rates…

    The catalyst to wealth effect and wealth redistribution is public-private partnerships.
    Public-Private Partnerships especially Too Big To Fail government-banking partnerships who a primarily international in nature are dependent on deficit to debt spending.
    Old school measurements estimates deficit to debt spending accounts for over 80% of GDP.

    It’s simple. These government-banking public-private partnerships are the catalyst that make globalization possible that includes but not limited to Taiwan, Hong Kong, Singapore, Berlin, London, Brussels, New York, and etc. By raising the interest rates, the global economy faces a wallop that Thomas Friedman and Paul Krugman will cry foul of anti-globalization free trade sentiments in addition that it can destroy over 80% of GDP dependent on deficit to debt spending.
    People who are not aware of this will simply blame Trump, and the Reconciled Democratic-Republican Party will blame Trump supporters.
    Meanwhile Russia and China will continue seeking to turn Germany and Saudi Arabia who last I looked chairs OPEC and the Arabian Alliance whose stated ambitions are regional dominance requiring ‘regime change’ in Iran, Israel, and Syria. Why are we relaying on Saudi Arabian interpretations anyway between Israeli-Iranian tensions anyway?

    Isn’t it obvious what the Federal Reserve is doing? It is guaranteeing if Trump turns out to be sincere in reigning in Keynesian Economics, Globalization, and the need to sacrifice rights for security for open border policies that Trump can’t purge the mal-investment with the least negative impact. He would have to do it at once, and this will guarantee mass unrest across the country.
    While I personally don’t think Trump will do this, his selections/appointments suggests he won’t by a factor of 3 to 1, but the Federal Reserves action here pretty much states ‘Progressive domestic-international policies stay or else’.

    • socalbeachdude

      The Federal Reserve has not raised interest rates except twice on the only 3 interest rates they set over the past TEN YEARS and now the timing is based on the very significant increases in yields (interest rates) in the US Treasuries markets which the Federal Reserve always matches the Federal Funds Rate to the yield on US Treasuries but is still far behind the curve on that even with the last increase as the yield on 3 year US Treasuries is presently around 1.40% and the Federal Funds Rate is in the range of 0.50% to 0.75% which is why the Federal Reserve stated they will be doing more interest rate increases on their only 3 rates in 2017.

  • Stuey

    The US Treasury has produced their own currency in the past(Greenbacks during the Civil War) and can do so again any time they choose per the US Constitution. Instead of issuing bonds and creating debt they should print and issue their own currency. Then there wouldn’t be a 19 trillion dollar national debt and the Fed Reserve wouldn’t be profiting 6 billion in profits every year..(which socalbeachdude finally admitted to is their share of the profit)

    • socalbeachdude

      No, the US Treasury most certainly CANNOT do that as it is prohibited from doing so by the Federal Reserve Act. The entire debt problem is VAST PROFLIGATE OVERSPENDING BY CONGRESS and that is unsustainable and has become a catastrophic disaster. Congress NEEDS TO CUT SPENDING dramatically and get its budget balanced.

      As to the tiny little $6 billion a year dividend to its member bank shareholders of the Federal Reserve, that makes very little difference in the big picture of our $18 trillion a year US economy.

      • Stuey

        Oh yeah, right, it is only 6 billion, why worry about that right? The Federal Reserve act does not override the constitution. The US Treasury CAN issue their own currency any time they want. And then the national debt would quit rising and could eventually paid off. I agree the government spends too much money and should not be running deficits.

        • socalbeachdude

          No, the US Congress and US Treasury cannot issue any alternative currency to the US dollar at all and PROHIBITED FROM DONG SO by the Federal Reserve Act, which I would suggest you read and attempt to comprehend. Congress does have the right to amend or repeal the Federal Reserve Act but in the absence of doing exactly that it cannot just “print” another currency, and to even contemplate doing so would be the height of stupidity and would create total havoc in the US dollar markets.

          • retired22

            They can certainly do so,…
            JFK did it back in 1963 through an executive order authorizing the printing of U.S. silver certificates as opposed to Federal Reserve notes!
            was it a coinsidense

          • socalbeachdude

            Absolutely false. JFK did not such thing at all as you assert. Executive Order 11110 was all about REMOVING SILVER CERTIFICATES from circulation.

          • Stuey

            It’s all VERY simple. Just REPEAL the Federal Reserve Act and go back to the US Constitution. The Federal Reserve Act should be ruled unconstitutional anyway. But the people who make the money has the power and makes the rules, kind of a take off on the “Golden Rule” except they don’t have the gold, just the power to print currency. NO independent entity should have the power to produce currency for any country. This is the biggest SCAM EVER preformed on the American people and central banks all over the world are doing the same to the world population.

          • Stuey

            The Federal Reserve Act was passed in the middle of the night while most politicians were out on town on Christmas vacation. The whole thing was a SCAM from the start to gain power of the production of currency. Yeah, there will be some financial havoc when we finally throw the yolk of the federal reserve off from around our necks and i am sure the central bankers will bring down their wrath on us all and cause war, famines and destruction. But they have already made slaves of us all, so this will be the price of freedom.

          • socalbeachdude

            There was no “scam” at all involving the Federal Reserve Act and it is fully legal and constitutional.

          • Stuey

            That’s your opinion. It appears most of the people on this blog agree with me and I would dare say most Americans feel the same way, atleast the ones who even know what the Federal Reserve is. The moneychangers count on most of the public being ignorant so they can continue with their evil plans. That is exactly why they don’t teach anything about the banking system, debt and interest rates in school. One day the people worldwide will rise up and throw the yolk of the moneychangers off and then all the bankers will have to get real jobs and actually produce some real wealth in this world.

          • socalbeachdude

            What I stated are true, accurate, and fully correct facts, not an “opinion” at all. All major colleges and universities have courses in Money & Banking and I was a star student in mine.

          • Stuey

            I know I know, you are a very smart guy and you know it all.

          • Stuey

            Yes, i know you were a star student and your are all knowing.

          • Stuey

            It’s all one BIG SCAM.

          • socalbeachdude

            Nope. It is the US and global financial system run by fine professionals.

          • socalbeachdude

            There is nothing “free” from the federal government and everything it does comes at an ENORMOUS COST to its citizenry and taxpayers. That is precisely why we now have a $19.6 trillion federal debt, nearly all of which was run up from the $1 trillion federal debt in 1981.

            The federal government is spending around $4 trillion a year and last year ran up an additional $1.4 trillion deficit. All federal jobs are extremely costly and it would end up costing vastly more to have the US Treasury attempt to replicate all of the things done by the Federal Reserve.

            Moreover, the Federal Reserve rebates more than 94% of its profits each year to the US Treasury and that now amounts to about $100 billion a year of revenues for the US Treasury for the benefit of its taxpayers. The Federal Reserve not only does not cost US taxpayers a single cent but makes billions of dollars for them each year.

        • Lennie Pike

          6 billion as far as you know – without an independent audit you never will.

          • socalbeachdude

            Each and every year the full books of the Federal Reserve are INDEPENDENTLY AUDITED BY A TOP 4 ACCOUNTING FIRM and that has ALWAYS been the case as each and every one of the reports clearly states.

          • Lennie Pike

            Is that a fact.

        • Bill G Wilminton NC

          Hey Stuey put a block on socalbeachdude it works great

  • Barry Goldwater

    I disagree Michael and I must add we have to return to normalized rates.
    Again I refer you to the 90’s when rates were far higher and the economy was doing much better than it is now.
    If your theory were correct then the boom of the nineties could not have happened.
    All these abnormal conditions have produced is a flood of free money for Wall Street and nothing for average Americans.
    Rising rates mean a return to normalcy and I ask you to remember the conditions which brought us to this point. A patient does not continue to swallow the medicine when he has recovered, this is ridiculous.
    In the meantime if Mom and Pop America can begin to earn a little on their savings that’s a good thing in my book.

    • socalbeachdude

      100% correct, except there certainly has not been a “flood of money for Wall Street” at all and there was NO NET GAIN WHATSOEVER to banks from the Federal Reserve versions of QE which merely involved the purchase of EXISTING SECURITIES from banks in exchange for the proceeds being deposited in their reserves accounts inside the Federal Reserve which now exceed $3.5 trillion which is where all of the QE money is sitting parked earning IOER.

      • Barry Goldwater

        QE is a separate issue from benchmark rates which did result in a flood of free money for Wall Street with corporate America borrowing billions for share buybacks and financing mergers inflating share prices .
        How many times have you heard fund managers and the financial talking heads say ” we’re the only game in town there’s no place else to earn any money on your cash ” ? Indeed it has resulted in suckering millions of Americans to pump their hard won savings into stocks following rising prices, many of whom who would have had nothing to do with the market save for the fact their savings and CD’s were paying them dirt. That in itself is an adverse condition which cannot be allowed to continue without serious consequences.
        I for one am happy to see some semblance of normalcy returning to Fed policy and I believe it would have happened sooner had it not been for Yellen’s dovish indecisiveness and timidity fearing a market backlash. Now the Fed has rightly begun the process of weaning Wall Street off it’s free cash on a slow glide path .

        • socalbeachdude

          There was NEVER ANY FREE MONEY TO WALL STREET FROM ANY OF THE FEDERAL RESERVE VERSIONS OF QE and there was NO NET GAIN whatsoever to Wall Street from QE

        • Bill G Wilminton NC

          Put a block on socalbeachdude it works great

          • socalbeachdude

            You really must want to maintain your ignorance very badly!

          • Barry Goldwater

            Yes judging from his posts I had concluded the same thing. There’s another troll on here too always dumping trash, still thinks Crooked Hillary won the election or some bull like that. Man, where do these nut cases come from? I guess it comes with the territory. Thanks though for the warning though.

          • socalbeachdude

            What I have stated here is 100% true, accurate, and correct.

          • socalbeachdude

            For those who want to remain ignorant!

    • retired22

      ”Produced a flood of free money for Wall Street”,that was what it was supposed to do!
      A significant rate increase big enough to do the public any good would destroy the governments ability to service the debt & send the nation into chaos.

      In fact,…it is not completely impossible to imagine that is what the Central Bank may be trying to do,now that
      Trump & the Republicans are now in power!
      Could they be trying to bring down the government sometime in the future?

      • socalbeachdude

        There was no “flood of free money” for anyone.

      • Barry Goldwater

        Regardless of political considerations and there’re many opinions on either side ZIRP is an abhorrent policy which was implemented to spur economic activity at a critical time.
        Unfortunately it was allowed to remain too long now finally is being removed. Again normalcy must be sought and interest rates must find their natural floor.
        As for the politics of it that’s exactly why the FED was created in the first place to remove the nations banking and money supply from the whims of politicians in order to provide a more reliable and stable monetary system. It was always supposed to be an Independent body that’s why once appointed the President cannot take any action against them other than complain.The FED must act regardless of what any politician thinks in such ways as it sees fit.
        One other note is that President Trump will have an opportunity to replace Yellen in 2018 if he chooses , Vice Chair Stanley Fischer’s term expires in 2018 and his term as a Governor expires in 2020.
        Tarullo- 2022
        Powell- 2028
        Brainard- 2026
        Two seats vacant .
        I see opportunities for Trump to name some good people. In my view Yellen should have made this move a year and a half ago but she’s timid.
        I believe we will be just fine with higher rates provided they’re raised slowly.

    • socalbeachdude

      The only 3 interest rates set by the Federal Reserve have NOTHING WHATSOEVER to do with the rate of interest paid on time deposit (savings) accounts at US banks and nothing will change with interest paid on savings accounts until and unless there is a substantial pick up in demand for borrowing by qualified borrowers.

  • socalbeachdude

    Ides of December Sees Gold continue its precipitous plunge..

    Gold 1,130.30 -33.40 -2.87%

    While US Dollar Soars to New 15 Year High…

    DXY Index 103.06 0.86 0.84%

  • socalbeachdude

    US Dollar reaches 14 year high after Federal Reserve raises interest rates in latest show of strengthening economy since Trump election win

    The greenback hit 103.22 on Thursday morning, its highest since April 2003.

    It came within hours of the first Federal Reserve meeting since President-elect Trump’s election win.

    http://www.dailymail.co.uk/news/article-4037242/Dollar-reaches-14-year-high-Federal-Reserve-raises-rates-latest-strengthening-economy-Trump-election-win.html

    • retired22

      That is what happens in a rigged market of speculators & day traders who no longer bother with investment analysis but only watch the ebb & flow of monetary policy controlled by the Fed.
      Did you notice that the rate hike was held back until there was no longer any political hope for the Democrats?
      Now the economic implications will be dumped on the Trump government!
      Wasn’t it you who said that the Fed. doesn’t involve itself in politics?

      • socalbeachdude

        The US dollar may soar up as high as 164 on the DXY where it was back in 1985 and is definitely headed to 120 or so on the DXY based on FUNDAMENTALS which have nothing whatsoever to do with the Federal Reserve.

        There should have been at least FOUR RATE HIKES this year by the Federal Reserve to bring the Federal Funds Rate up to equal that of the yield on 3 year US Treasuries, but those yields on 3 month US Treasuries did not start soaring upwards until around July 2016 which was the primary reason for delaying increasing the Federal Funds rate until the December 14 FOMC meeting.

        That has NOTHING WHATSOEVER to do with “politics” but rather with DATA POINTS.

        • retired22

          And what does the current value of the dollar have to do with a failing real economy which has been sucked dry by the F.I.R.E.industry?

          • socalbeachdude

            The real economy in the US is certainly not “failing” in any way and is the largest it has ever been at more than $18 trillion a year

          • retired22

            Are you that far gone?
            The Major banks of the world are insolvent & ready to collapse,…especially in the EU which will also drag down America’s TBTF banks.
            Even Rothschild & the Bank of International Settlement says so!

          • socalbeachdude

            Absolutely false. Your lack of financial knowledge as to the banking industry is just mind boggling. The BIS says no such thing at all. As to the Rothschild family they only operate a very small boutique wealth management bank these days and are in no position to make any such analysis and they certainly did not state any such thing at all as you assert.

          • retired22

            You are a nut or a world class liar.
            The Rothschild’s are the richest family in the world even more so then the Rockefeller’s
            You have the sheer nerve to throw that drivel at me?
            There were statements & official announcements from both parties to the effect that the global economy is going down hard!

          • socalbeachdude

            You are obviously very misinformed and uninformed regarding the banking operations of the Rothschild family which are VERY SMALL IN SCOPE today in the US and globally.

            The Rothschilds have nothing whatsoever to do with banking in the US these days except for their small boutique banking operation being one of the 6,200 member banks of the Federal Reserve and a very tiny one at that among those 6,200 banks.

            The Rothschilds have very limited boutique banking operations in the US and are not even major players in the banking industry. Are you somehow not aware of that?

            The Rothschild family banking concern is called N M Rothschild & Sons and does very little commercial banking these days but is a leader in the M&A (Mergers & Acquisitions) field where it is in the top 6 of global investment banks. It only has about 50 offices worldwide. It is based in the UK in the City of London and does most of its business in Europe. It does very little in the way of retail banking operations except for very limited Private Client Banking.

            The firm competes against a wide range of investment banks, from conglomerates like JPMorgan Chase, Goldman Sachs and Morgan Stanley, to other mergers and acquisitions specialists like Lazard, Moelis and Greenhill & Co. in M&A, valuation and restructuring advisory services.

            Rothschild operates through three divisions:

            Global Financial Advisory (GFA) (Rothschild’s investment banking practice)
            Corporate Banking
            Private Banking and Trust

            Next to these three main divisions, Rothschild is also active in real estate, venture capital, and asset management.

            https://en.wikipedia.org/wiki/N_M_Rothschild_%26_Sons

            There US operations web site which has more information on their limited US operations is at:

            https://www.rothschild.com/usa/

          • socalbeachdude

            Nope. Bill Gates and his family are the richest family in the world by far.

      • Bill G Wilminton NC

        put a block on socalbeachdude dont waste your time

  • gray crusader

    It IS noteworthy that the fed now is going to raise rates.
    Honestly, I believe the bankers will purposely crash the economy, blame it on Trump, then use the crisis to further their globalist agenda.
    We live in perilous times.

    • socalbeachdude

      Why is it in any way “noteworthy” given the fact that all interest rates that matter in the US economy are keyed off the yields on US Treasuries and those have been SOARING SINCE JULY 2016 and the fact that all the Federal Reserve ever does with the only 3 interest rates they set is to match the Federal Funds Rate to the yield on 3 month US Treasuries?

      The 3 month US Treasury yield is presently around 1.40% whereas the Federal Funds Rate is currently in the much lower range of 0.50% to 0.75% which means that the Federal Reserve needs to substantially increase that range to nearly double just to get it to where the markets have set the 3 month US Treasury yields presently.

  • BB

    Trump is going to go after the people that piss him off. Tightening credit at the exact same time he takes office and attempts to kick start the economy for the little guys is going to irritate the hell out of him.

    • socalbeachdude

      Why do you think that?

  • socalbeachdude
  • steven454

    Why all the angst about raising the rates when that’s what needs to happen, and probably what Trump wants anyway? The pain of coming off of the FED’s low-rate-heroin was always going to be significant, but the transition that you are complaining about is in fact a return to “normal(ish)”. Why complain? Are you saying Trump should perpetuate low rates so that the crash doesn’t happen on his watch and he can fudge his numbers like Oclinta did?

    I would actually interpret the FED’s hike and planned hikes as an attempt to appease Trump and avoid the axe. Or further, now that Oclinta isn’t pimping the FED to tweak their numbers, maybe the FED is free to try to return things to how they should have been all along.

    There are several different ways to interpret the rationale for these actions.

  • henrybowmanaz

    “So Barack Obama got to enjoy the benefit of having interest rates slammed to the floor throughout his presidency, and now Donald Trump is going to have to fight against the economic drag that constant interest rate hikes will cause. How is that fair?”

    Once Trump is president, I suspect the Fed is going to start feeling the sharp end of fair in its own buttocks for a change.

    • socalbeachdude

      All interest rates in the US economy are set by the US Treasury markets and have nothing whatsoever to do with partisan politics. Yields (interest rates) have been soaring in the US Treasury markets since July 2016 and that is now being slightly reflected in the only 3 interest rates set by the Federal Reserve.

      • henrybowmanaz

        Fake news. Go away, paid troll.

        • socalbeachdude

          What I stated is 100% true, accurate, and fully correct.

          The only 3 rates that the Federal Reserve is involved with setting are:

          1) Federal Discount Rate – currently 1.25%

          2) Federal Funds Rate (which it influences) – currently in the range of 0.50% to 0.75%

          3) Federal Reserve IOER (Interest On Excess Reserves) – currently 0.75%

          The IOER (Interest On Excess Reserves) interest rate does have an immediate beneficial impact for banks as it is the interest paid to banks on their excess reserves accounts inside the Federal Reserve and those accounts now have more than $2.5+ trillion sitting in them.

          The FOMC voted to raise the only 3 interest rates set by the Federal Reserve on December 14, 2016 and indicated that it will raise those only 3 interest rates by about 0.75% in 2017 – but that will remain well behind the yields (interest rates) set by US Treasuries which is what really sets all interest rates that matter in the United States economy..

          • henrybowmanaz

            As if an organization’s public boilerplate ensures absolutely no devious hidden agendas or biased votes. You have no credibility. Go waste someone else’s time.

          • socalbeachdude

            Huh?

        • Bill G Wilminton NC

          just put a Block on socalbeachdude I did it works great I never see even one word of his posts….

          • socalbeachdude

            Ignorance is a very sad thing, dude, particularly when it is willful.

  • Rland

    Time to audit the FED..

    • socalbeachdude

      There is NOTHING even slight “secret” about the Federal Reserve which is TOTALLY TRANSPARENT AS TO ITS BALANCE SHEET which it reports in full to Congress and the American public each year and is fully independently audited each and every year by a top 4 accounting firm in the US as is clearly stated in its preface. Each annual report runs about 500 pages of highly detailed information and they are all available for all to see at:

      http://www.federalreserve.gov/publications/annual-report/

  • Talon

    We have a Department of Treasury, we have the Constitutional authority to issue currency for the benefit of commerce…it’s a win win win for America.

    • socalbeachdude

      The Federal Reserve handles those matters, not the US Treasury as specified in the Federal Reserve Act.

  • Stuey

    Any fiat currency is just a medium of exchange and is only worth the value people assign to it. When the US treasury starts producing real US dollars people will turn their back on the federal reserve notes and they will be worthless. The only reason people use any currency at all is because it is easier than carrying around many items to barter with, but if the currency doesn’t have any object/property of value backing it
    then it is only worth the trust of what value people assign to it. No fiat currency actually has any real value, except maybe to start a fire or whip yourself.

    • socalbeachdude

      The Federal Reserve produces REAL US DOLLARS and those US dollars are the LEGAL TENDER currency in the United States used to purchase all goods and services in the US economy. The US dollar is now at a 14 year high on the DXY currency basket and is at 102.80 as of mid-December 2016.

      • Stuey

        The Federal Reserve produces “Federal Reserve Notes”.

        • socalbeachdude

          That is just another name for UNITED STATES DOLLARS which is precisely what Federal Reserve Notes are.

          • Stuey

            Nope, you are wrong.

          • socalbeachdude

            I am obviously 100% correct.

  • autofixer

    I agree the Fed must be shut down. It is the enabler of the welfare state and CONgressional out-of-control spending. That being said. This is verbatim what they said and did last December. They can’t raise rates to where rates should be (around 4%). The economy is too weak.

    • socalbeachdude

      The Federal Reserve is the best and brightest central bank in the world and has nothing whatsoever to do with the out of control spending by the US Congress. The Federal Reserve has not run up a single penny of the US government debt and the only 3 interest rates set by the Federal Reserve have nothing whatsoever to do with the prevailing interest rates in the US economic system as all of those rates are keyed directly off the yields (interest rates) on US Treasuries are a $13 trillion a year market where interest rates have been soaring upwards since July 2016.

      The Federal Reserve simply attempts to match the Federal Funds Rate (for interbank borrowing which is practically non-existent) with the 3 month US Treasury and that rate is now at around 1.40% whereas the Federal Funds Rate is still lagging far behind in the range of 0.50% to 0.75%. The benchmark 10 year US Treasury yield (interest rate) is now nearly 2.50% and rapidly headed to over 3% and it is the benchmark that sets where interest rates are in the US economy, particularly as to mortgage lending.

  • Stuey

    The US Treasury issues bonds which are instruments of debt, then take the federal reserve notes that the bonds are purchased with and use it to fund government spending thus creating a national debt. If you stop and think about it, the whole thing is silly. If you can issue bonds why not just issue your own currency and not put yourself in debt? Congress should repeal the Federal Reserve Act and allow the US Treasury to once again(since they have in the past) to print US dollars and then there would not be any national debt. This is exactly what Abraham Lincoln did in the Civil War to fund the war cost, the currency the US Treasury printed during the Civil War were called “Greenbacks”.

    • socalbeachdude

      Your lack of comprehension of the $13 trillion a year US Treasury markets in bonds, bills, notes, and TIPS is just mind boggling. The Federal Reserve purchases only about 8% of the $7 trillion a year in newly issued US Treasuries and owns less than 13% of the outstanding $19.6+ trillion in US Treasuries. I would suggest you learn about the US Treasury markets at:

      http://www.TreasuryDirect.gov

      • Stuey

        Your response did not deal with any of the topics I mentioned. Your lack of reading comprehension is just mind boggling to me.

        • socalbeachdude

          The US Treasury is prohibited from doing what you suggest by the Federal Reserve Act which will continue to be the prevailing law in the US for the next century rendering your assertions moot.

          • Stuey

            Not if it is repealed which Congress can do at any time.

          • socalbeachdude

            Yes, Congress does indeed have that right as stated in the final section of the Federal Reserve Act.

  • guest

    Hold the cursor over the up vote icon bot don’t enter.. It will show you who’s up voting . Socialbeachdude up votes all his own comments.

    • socalbeachdude

      So what?

  • JC Teecher

    The increase of the Fed interest rate is counter-productive, as the economy tries to rebound, the fed rate increases some yields, but increases the debt burden across the board.

    As the National debt servicing amount increases, and as more is compounded daily, the future is becoming more and more debt ridden, and an un-avoidable collapse of the system is forth coming.

    Plan accordingly, and stock up on preps for the ” riding out” of the financial storm ahead. There will come a day when Gov. payments to recipients………….stop!

    We just used five year old preps of canned chicken, and cream of celery soup, plus dried rice, to make a three day supply of meals. Good eats with plenty of carbs to supply the body.
    Next on the menu is 7 year ole dried jerky, that tastes as good as the day we made it.

    • socalbeachdude

      What you are not comprehending at all is that the BOND MARKETS SET INTEREST RATES IN THE US ECONOMY AND NOT THE FEDERAL RESERVE. The yields (interest rates) in the bond markets have been SOARING EVER SINCE JULY and that is where all interest rates that affect the US economy are keyed off, and NOT the only 3 interest rates set by the Federal Reserve which simply do not matter a hoot in the US economy.

      The only 3 rates that the Federal Reserve is involved with setting are:

      1) Federal Discount Rate – currently 1.25%

      2) Federal Funds Rate (which it influences) – currently in the range of 0.50% to 0.75%

      3) Federal Reserve IOER (Interest On Excess Reserves) – currently 0.75%

      The IOER (Interest On Excess Reserves) interest rate does have an immediate beneficial impact for banks as it is the interest paid to banks on their excess reserves accounts inside the Federal Reserve and those accounts now have more than $2.5+ trillion sitting in them.

      The FOMC voted to raise the only 3 interest rates set by the Federal Reserve on December 14, 2016 and indicated that it will raise those only 3 interest rates by about 0.75% in 2017 – but that will remain well behind the yields (interest rates) set by US Treasuries which is what really sets all interest rates that matter in the United States economy..

  • socalbeachdude

    The biggest concern regarding the Federal Reserve is its SOLVENCY as it vastly more leveraged than Lehman Brothers was at the time of its collapse. The Federal Reserve’s asset / liability portfolio is now around $4.4 trillion as a result of expanding it from $800 billion by around $3.6 trillion to the $4.4 trillion amount. That portfolio on a “mark to market” base is now significantly adversely impacted by the huge increase in interest rates which has occurred in the US Treasury markets and other bond markets this Fall where losses are now pushing $3 trillion on a “mark to market” basis.

    The Federal Reserve has VERY LITTLE CAPITAL / EQUITY due to the fact that it is required by law to REBATES 94% OF ITS PROFITS EACH YEAR TO THE US TREASURY and its present capital / equity basis is only around $55 billion which compared to its assets / liabilities represents leverage of around 80:1. The only way that the Federal Reserve can be recapitalized to lower the leverage amount is through 1) member banks purchasing more shares in the Federal Reserve, and/or 2) the Federal Reserve retaining more of its annual earnings (profits).

  • Winged Hussar

    I come from India, do not go the way of India in simply assuming low interest rates equals more growth. And do not let political considerations overcome economic considerations. And you got to remember who benefits the most from lower interest rates. It is the government. Lower interest rates hurts the savers badly.

    • socalbeachdude

      Yes, but all interest rates that matter in the US economy are set by the US TREASURIES MARKETS and not at all by the Federal Reserve.

  • CensoredSpeech✓ᴰᵉᵖˡᵒʳᵃᵇˡᵉ

    It’s way past time to abolish the FED and return those functions to Congress to whom those powers were delegated by the Constitution! If they have something to do maybe they won’t get into so much trouble!

    • socalbeachdude

      The Federal Reserve Act is fully constitutional and the Federal Reserve is the largest single entity contributor to US government revenues and rebates more than 94% of its profits each year to the US Treasury which now amounts of nearly $100 billion a year.

      • CensoredSpeech✓ᴰᵉᵖˡᵒʳᵃᵇˡᵉ

        Since it’s inception, in913, the FED has devalued the dollar 95%, you idiot!

        • socalbeachdude

          Nearly everyone from 100 years ago is now dead and they were paid a tiny miniscule fraction of what people are paid today.

          As to the value of the US dollar over the past 100 years…

          No, the dollar did NOT really lose 95% of its value since 1913

          Let us take at the period from 1913-2006, where we have complete data. So what do they mean, when they say the dollar lost 95.1% of its value in those 93 years? Essentially, an average good/service that cost $1 in 2006, used to be priced at 4.9 cents in 1913. In other words, the average price level of goods/services increased by 1930% since 1913. True, but guess what, average earned income increased by 6560% during the same time period. Average earned income rose from $740/yr in 1913 to $49,300/yr in 2006. Adjusting for inflation, $740/yr in 1913 is $15,000/yr in 2006 dollars. Average incomes, not only kept pace, but beat price inflation by 230%.

          So does it make any sense all to say the dollar lost value? In reality, the REAL purchasing power of the average American, has increased by 230% in the past century. Sure, prices were cheap in 1913, but $740/yr doesn’t buy you a whole lot, not anymore than 15,000/yr today.

          http://realfactbias.blogspot.com/2012/02/no-dollar-did-not-really-lose-95-of-its.html

      • CensoredSpeech✓ᴰᵉᵖˡᵒʳᵃᵇˡᵉ

        What, exactly, does the “FED” produce to earn it “profits”??

        • socalbeachdude

          The Federal Reserve has a $4.4 trillion portfolio of assets consisting of MBS instruments and US Treasuries which is what produces more than $100 billion a year in earnings and more than 94% of those earnings are rebated each and every year to the US Treasury.

          • CensoredSpeech✓ᴰᵉᵖˡᵒʳᵃᵇˡᵉ

            In other words, paper!

          • socalbeachdude

            Actually, most all of that is electronic!

          • CensoredSpeech✓ᴰᵉᵖˡᵒʳᵃᵇˡᵉ

            One high-altitude nuclear blast and it’s all gone!

      • CensoredSpeech✓ᴰᵉᵖˡᵒʳᵃᵇˡᵉ

        NOT!

        • socalbeachdude

          Everything I stated is 100% true.

  • socalbeachdude

    The Federal Reserve is the only party that produces REAL US DOLLARS and that was decided when the Federal Reserve Act was enacted 103 years ago.

  • Pig Farmer Bill

    The Fed is a worthless bucket of horse puhis. She is political and and pay the price in the long run. Trump is going to put his foot up her auhz.

    • socalbeachdude

      Laughably false. There is nothing political at all about the Federal Reserve. The Federal Reserve only sets 3 interest rates and none of those have anything to do with interest rates in the US economy that matter as those are all keyed off the yields in the $13 trillion a year US Treasuries markets.

      • Pig Farmer Bill

        You keep on laughing. She is a puppet. Hope Trump closes the Fed for good.

        • socalbeachdude

          The Federal Reserve will be superbly serving America as its central bank for the foreseeable future.

          • Pig Farmer Bill

            You upset because Clinto got her auhz whooped?

          • socalbeachdude

            I voted for Donald Trump.

          • Pig Farmer Bill

            Then you should know the reality of the American economy.

          • socalbeachdude

            The reality is that the US economy is an $18+ trillion a year economy making it by far the largest single country economy in the world.

          • Pig Farmer Bill

            I fuged your mama last night son. She told me all about you. The dem troll fool that is fooling no one. Get over snowflake.

          • Pig Farmer Bill

            Bank? You mean printing press.

  • William Roach

    If the FED stays were ti stay slaves. If Trump gets rid of the FED we might have hope. Until then were all slaves if you accept it or not

    • socalbeachdude

      Obviously, that won’t be happening and the Federal Reserve has nothing to do whatsoever with what you erroneously and falsely assert.

  • William Roach

    Why are we under a system that makes us slaves anyways? We are so stupid. If we don’t change this we deserve everthing we get.

    • socalbeachdude

      You’re not. Obviously.

  • JCLincoln

    I guess we’ll just have to send Colonel Smedley to the Fed.
    BTW – who ARE the real owners of the FED? Who profits the most from the financial manipulations of this private corporations? Is it the Rothschilds? The Rockefellers? The Bushes? The Morgans? I expect the $Trillionaire Club$ probably profits from the FED more than anyone else. WELL, THE WORLD IS FED UP WITH THE FED! TIME TO DESTROY IT AND THE NEW WORLD ORDER ELITE CABAL!

    • socalbeachdude

      The FEDERAL RESERVE IS OWNED BY ITS MEMBER BANKS SHAREHOLDERS as is clearly confirmed by the Federal Reserve.

      Who owns the Federal Reserve?

      http://www.federalreserve.gov/faqs/about_14986.htm

      In summary, The member banks of the Federal Reserve System own 100% of the shares of the Federal Reserve.

      As to the profits of the Federal Reserve, you must not be aware that it REBATES 100% OF ITS ANNUAL PROFITS TO THE US TREASURY after paying its member bank shareholders a modest annual 6% dividend.

      The Federal Reserve does not cost the US government and taxpayers a single penny and in fact is the LARGEST SINGLE PAYER OF REVENUES TO THE US GOVERNMENT each year.

      As to shareholders of the 6,200+ individual banks who are members of the Federal Reserve there are MANY MILLIONS OF PUBLIC SHAREHOLDERS of those banks – obviously.

      I would suggest you spend some time learning about it at:

      http://www.FederalReserve.gov

  • Donald Wilson

    I say give them all pink slips, eliminate the Federal Reserve and kick them to the curb. Then place the Treasury in charge of managing the economy and monetary system. If the Fed doesn’t like it to bad show them the door. Period. The End…

    • socalbeachdude

      Only Congress can amend or abolish the Federal Reserve Act, not any President of the US.

  • stluyjuy

    Here we go again, just when there was hope of a recovery the Fed will stomp it out of existence.

  • steveiD

    Dump her and the fed.

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