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The Federal Reserve Must Go

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If you want to permanently fix America’s economy, there really is no other choice.  Even before Ron Paul’s rallying cry of “End The Fed” shook America during the peak of the Tea Party movement, I was a huge advocate of shutting down the Federal Reserve.  Because no matter how hard we try to patch it up otherwise, the truth is that our debt-based financial system has been fundamentally flawed from the very beginning, and the Federal Reserve is the very heart of that system.  The following is a free preview of an upcoming book that I am working on about how to turn this country is a more positive direction…

*****

As the publisher of The Economic Collapse Blog, there have been times when I have been criticized for focusing too much on our economic problems and not enough on the solutions.  But I believe that in order to be willing to accept the solutions that are necessary, people need to have a full understanding of the true severity of our problems.  It isn’t by accident that we ended up 20 trillion dollars in debt.  In 1913, a bill was rushed through Congress right before Christmas that was based on a plan that had been secretly developed by very powerful Wall Street bankers.  G. Edward Griffin did an amazing job of documenting the development of this plan in his groundbreaking book “The Creature from Jekyll Island: A Second Look at the Federal Reserve”.  At that time, most Americans had no idea what a central bank does or what one would mean for the U.S. economy.  Sadly, even though more than a century has passed since that time, most Americans still do not understand the Federal Reserve.

The Federal Reserve was designed to create debt, and of course the Wall Street bankers were very excited about such a system because it would make them even wealthier.  Since the Fed was created in 1913, the U.S. national debt has gotten more than 5000 times larger and the value of the U.S. dollar has declined by about 98 percent.  So the Federal Reserve is doing what it was originally designed to do.  In fact, it has probably worked better than the original designers ever dreamed possible.

There is often a lot of confusion about the Federal Reserve, because a lot of people think that it is simply an agency of the federal government.  But of course that is not true at all.  In fact, as Ron Paul likes to say, the Federal Reserve is about as “federal” as Federal Express is.

The Fed is an independent central bank that has even argued in court that it is not an agency of the federal government.  Yes, the president appoints the leadership of the Fed, but the Fed and other central banks around the world have always fiercely guarded their “independence”.  On the official Fed website, it is admitted that the 12 regional Federal Reserve banks are organized “much like private corporations”, and they very much operate like private entities.  They even issue shares of stock to the private banks that own them.

In case you were wondering, the federal government has zero shares.

The American people are constantly being told that Fed decisions must be “above politics” because they are “too important” to be politicized.  So even though everything else in our society is up for political debate, somehow we have become convinced that the Federal Reserve should be off limits.

Today, the Federal Reserve has more power over the performance of the U.S. economy than anyone else does, and that includes the president.  The Fed has become known as “the fourth branch of government”, and a single statement from the chairman of the Fed can send global financial markets soaring or tumbling.

So even though presidents tend to get most of the credit or most of the blame for how the U.S. economy is doing, the truth is that the Fed is actually the one pulling most of the strings.  In conjunction with Congress, presidents can monkey around with regulations and tax rates, but at the end of the day their influence over the economy pales in comparison to what the Fed is able to do.

For those that have never encountered this material before, this can be difficult to grasp at first, so let’s start with something very simple.

Go to your wallet or purse and pull out a dollar bill.

At the very top, you will notice that it says “Federal Reserve Note” in big, bold letters.

If you ask 99 percent of the people in the United States where money comes from, they will not be able to tell you.  Our money is actually created and issued by the Federal Reserve, but that is not what our founders intended.  According to Article I, Section 8 of the U.S. Constitution, Congress was expressly given the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

So why is the Federal Reserve doing it?

Many Americans are still operating under the assumption that the federal government has a “printing press” and that if we ever get into too much debt trouble the government could simply create and spend lots more money into circulation.

But that is not the way that our system currently operates.

Instead, it is the Federal Reserve that creates all new money.  Once that new money is created, the federal government then borrows it and spends it into circulation.

Previously, I have written about how this works…

When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.

(http://theeconomiccollapseblog.com/archives/why-donald-trump-must-shut-down-the-federal-reserve-and-start-issuing-debt-free-money)

This doesn’t seem to make any sense at all.

Why does the U.S. government have to borrow money that the Federal Reserve creates?  Why can’t they just create the money themselves?

This is the big secret that nobody is supposed to know about.

Theoretically, the federal government doesn’t have to borrow a penny.  Instead of borrowing money the Federal Reserve creates, it could just create money directly and spend it into circulation.

But then we wouldn’t be 20 trillion dollars in debt.

Once the Federal Reserve has received U.S. Treasury bonds in exchange for the “Federal Reserve Notes” that the federal government has requested, the Fed auctions off those bonds to the highest bidder.  But as I have noted so many times before, this process always creates more debt than it does money…

The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system.

But wait.

There is a problem.

Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

So where will the U.S. government get the money to pay that debt?

Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt.

But that never actually happens, does it?

And the creators of the Federal Reserve understood this as well. They understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.

(http://theeconomiccollapseblog.com/archives/why-donald-trump-must-shut-down-the-federal-reserve-and-start-issuing-debt-free-money)

Beginning in 1913, this process has created an endless debt spiral that has resulted in the U.S. being 20 trillion dollars in debt.  It is the biggest mountain of debt in the history of the world, and it didn’t have to happen.

In fact, if we had been using debt-free money all this time we could theoretically be completely out of debt.

A lot of conservatives out there are still under the illusion that if we could just grow the economy fast enough that we could possibly pay back all of this debt someday, but as I have demonstrated in a previous article, this is mathematically impossible.  (http://theeconomiccollapseblog.com/archives/it-is-mathematically-impossible-to-pay-off-all-of-our-debt)

All of this debt threatens to destroy the bright future that our children and our grandchildren were supposed to have.  It is absolutely immoral to pass such a large debt on to future generations, but we are doing it anyway.

Of course the United States is far from alone in this regard.  Today, more than 99.9% of the population of the world lives in a country that has a central bank.

There is literally nothing else that the entire planet agrees upon almost unanimously, and yet somehow virtually the whole globe has chosen to adopt debt-based central banking.

Do you think that this is just a coincidence?

A handful of extremely small nations such as the Federated States of Micronesia still do not have a central bank, but the only large country not to have one is North Korea.

I don’t understand why more people are not talking about this.  If we really want to reform how things are done economically, it should start with central banking.

The truth is that we do not need a central bank.

Let me say that again.

We do not need a central bank.

The greatest period of economic growth in all of U.S. history was when there was no income tax and no central bank. (http://theeconomiccollapseblog.com/archives/during-the-best-period-of-economic-growth-in-u-s-history-there-was-no-income-tax-and-no-federal-reserve)

Such a system would be unimaginable to many people today, but it is entirely possible.

Instead of a central bank creating debt-based currency for us, the federal government could create debt-free money directly.

And instead of socialist central planners setting our interest rates for us, we could allow the free market to set our interest rates.

We are supposed to be a free market nation with a free market economy, and so we don’t need Fed bureaucrats to run it for us.

The free market will always do a better job in the long run then bureaucrats will.  As I noted earlier, the greatest period of economic growth in U.S. history was right before the Federal Reserve was created in 1913, but since that time there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.

Now we stand poised on the brink of another major downturn, and people still aren’t getting it.

As long as the Federal Reserve exists, there will be “booms” and “busts” like this.

It is time for a change.

During the good times, criticism of the Fed tends to subside.  And without a doubt, the bubble following the end of the last recession lasted much longer than a lot of people initially would have thought, but all Fed-created bubbles eventually end.

We desperately need to get free from this system, and a huge step in that direction would be a rejection of debt-based currency.

If you don’t think that this can happen, you should consider what happened in 1963.  President John F. Kennedy signed Executive Order 11110 which authorized the U.S. Treasury to issue debt-free “United States Notes” which were directly created by the federal government.

Unfortunately, he was assassinated shortly after that executive order was signed.

You can still find debt-free “United States Notes” in circulation today, and they are often for sale on auction sites such as eBay because people like to collect them.

At any time, the White House could do something similar today.

All it takes is the willingness to do so.

The borrower is the servant of the lender, and the debt-based Federal Reserve system has turned all of us into debt slaves.

If we do not want future generations of Americans to be enslaved to debt, we need to shut down the Federal Reserve and start using debt-free currency.  Any essential functions that the Fed is currently performing can ultimately be taken over by the U.S. Treasury, and of course we can make the transition gradual so that we don’t completely panic global financial markets.

The global elite are using central banking and debt-based currencies to dominate the planet.  Today, the total amount of debt in the world has shot past 150 trillion dollars, and it will only continue to grow until humanity wakes up and realizes the insanity of using a debt-based financial system.

Here in the United States, we need people in government that understand these things and that are willing to do something about it.

The Federal Reserve must go, and I will never make any apologies for saying that.

 
  • aldownunder

    Oops…..I know someone who’s not going to like this

    • PocoPete

      Who?

    • socalbeachdude

      Yep. The ignorance displayed in this article and in some of the comments as to banking and the Federal Reserve are far beyond totally mind boggling.

      • Stuey

        Are you calling Mr. Synder ignorant?? he should ban you

        • socalbeachdude

          Ignorance can always be corrected with learning and comprehending the facts!

          • GSOB

            Jesus is Jehovah

          • SnodtBlossom

            there is no god

          • rmc9

            Psalms 14:1

      • GSOB

        Start your own site and post it all there!

        Can’t afford it so you burden MS the burden. Even he supports you in creating your own blog site.

        Just quit the tobacco and swimming without water; you’ll be able to finance your own site.

    • GSOB

      That’s probably why MS posted it. Someone may become rabid about the central cartel and bug out of here.

  • Jeri Brace

    any president that wishes to live above ground after they leave the white house would most likely be wise to practice a hands-off policy towards the FED during their presidency.

    • socalbeachdude

      False, but the Federal Reserve is the single best aspect of government operations today on a national basis and the only aspect that has retained any degree of integrity against the massive corruption affecting the US government.

      • Paul Patriot

        What??????

      • GSOB

        “After previous attempts to push the Federal Reserve Act through Congress, a group of bankers funded and staffed Woodrow Wilson’s campaign for President.

        He had committed to sign this act.
        In 1913, a Senator, Nelson Aldrich, maternal grandfather to the Rockefellers, pushed the Federal Reserve Act through Congress just before Christmas when much of Congress was on vacation

        When elected, Wilson passed the FED.” –

        • socalbeachdude

          Nelson Aldrich was a fine man.

  • Bill

    The federal reserve system banking operation is the biggest con game ever created and it has existed for over 100 years. The swamp creatures will fight until death to keep it but America will be great again when it’s gone, dead and buried.

    • socalbeachdude

      Absolutely false and very stupid assertions. The Federal Reserve does not cost taxpayers or the US government a single penny to operate and make the US Treasury about $100 billion a year now as the Federal Reserve rebates more than 94% of its profits each year to the US Treasury as it has always done.

      • Paul Patriot

        What???????

      • GSOB

        A popular act was it?

        “This [Federal Reserve Act] establishes the most gigantic trust on earth. When President Wilson signs this bill, the invisible government of the monetary power will be legalized… the worst legislative crime of the ages is perpetrated by this banking and currency bill.” –
        Congressman Charles A. Lindbergh, Sr., 1913
        ………………
        “From now on, depressions will be scientifically created.” –
        Congressman Charles A. Lindbergh Sr. , 1913
        ………………….
        “We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” –
        Congressman Louis T. McFadden
        in 1932 (Rep. Pa)

        • socalbeachdude

          What utter nonsense.

          Woody was a dimwit and imbecile and got his claim to fame by become a leader in the so-called very stupid “Progressive Movement” back in the early 1900s and was elected President of the US and served as the 28th President of the United States from 1913 to 1921.

          Woody was a HYPOCRITE to the first degree and ran for President in 1916 the around the slogan “He kept us out of war” and yet was the primary cause of WWI which broke out during his second term and he was the primary driver behind anti-war movements during his second term.

      • Justice4AllNow

        socalTROLLLL – Set your despicable jew self on fire – troll scum. We’ll find your kind the during the soon to come war – and the troll executions will be unimaginably agonizing – but LOTS of fun to watch….

        • socalbeachdude

          How pitiful and pathetic for someone like you to be so filled with hatred and violent notions. Any sort of such activity as you suggest will be swiftly punished in the US and you will find yourself in federal prison – if you survive long enough to make it there.

          • Justice4AllNow

            GFY jewtrollllll

          • Justice4AllNow

            GFY ziotrollllllll

    • apeiron

      There is no centralized banking in only three countries worldwide…North Korea, Iran & Cuba.

      • socalbeachdude

        True, and the BIS (Bank for International Settlements) is the central bank of central banks.

        http://www.BIS.org

  • Bill

    This is what economics is about. This is the best article the author has ever written.

    • socalbeachdude

      Nope. Frankly it is probably his very worst article.

      • GSOB

        The turnover of America’s monetary system to the Federal Reserve in 1913 was the first step in losing the country.

        • socalbeachdude

          Laughably false.

  • natxlaw

    End the Fed!

    • socalbeachdude

      The Federal Reserve was created by an ACT OF CONGRESS known as the Federal Reserve Act and there is nothing in any way unconstitutional about the Federal Reserve Act.

      The Federal Reserve does not cost taxpayers a single penny to operate and rebates 94% of its annual profits to the US Treasury making it the single largest entity contributor each year to US government revenues. Are you not aware of that fact?

      • Paul Patriot

        I suggest you read the Founders writings and thoughts on central banking, and decide if federal reserve act was Constitutional.

        • socalbeachdude

          The “founders’ writings” have nothing at all to do with the US Constitution, and many of the founders – especially Tommy Jefferson – were very fiscally irresponsible.

          PROFLIGATE DEBTOR DEADBEAT THOMAS JEFFERSON died with $107,000 in personal debts and the value of his plantation, Monticello, was only $4,500 to offset that. That $107,000 debt of Jefferson’s was a MINDBOGGLING SUM in his day and proved QED how financially stupid and reckless Jefferson was.

          “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

          • Paul Patriot

            There you go again copy and paste from websites.

            Find some old history book, (mid 19th century) and read the history from various sources.

            Don’t believe everything you read on a website.

          • socalbeachdude

            The Federal Reserve wasn’t created until 1913 so you’re certainly not going to find anything at all related to it in 19th century books. Today, books are totally USELESS and OBSOLETE and all information of any value is on the world wide web.

      • GSOB

        FED bankers also profit greatly from economic disasters like the Depression

        • socalbeachdude

          Absolutely false. Banks are vulnerable to HUGE LOSSES due to a collapse in collateral value against loans outstanding.

      • Stuey

        Just because it passed Congress doesn’t mean it is constitutional.

        • socalbeachdude

          Yes, it does and it has never been held to be even slightly unconstitutional by any court in the USA.

          • Stuey

            of course not, the courts are owned by the Fed too….

          • socalbeachdude

            Only in your wild fantasy imagination.

      • natxlaw

        I’m aware that the value of a dollar has decreased 98% since 1913 and about 80% of that in my life. I know I had family members who put oil wells into bank accounts and withdrew poverty. And as far as not “unconstitutional,” as a Constitutional lawyer I’d like you to point out to me what part of the constitution allows the Federal Government to authorize anyone to print money.

        • socalbeachdude

          Absolutely false. And the price of a dozen eggs is pretty close to where it was back about 100 years ago. Many other goods have PLUNGED IN PRICE – particularly computers and electronics – over the past 100 years.

          Just how do you put “oil wells into bank accounts?”

          As to the US Constitution if it does not specifically prohibit something then it is not unconstitutional at all, which you would know if indeed you have anything at all to do with Constitutional law.

  • Money Is Created by Banks – Evidence Given by Graham Towers

    Some of the most frank evidence on banking practices was given by Graham F. Towers, Governor of the Central Bank of Canada (from 1934 to 1955), before the Canadian Government’s Committee on Banking and Commerce, in 1939. Its proceedings cover 850 pages. (Standing Committee on Banking and Commerce, Minutes of Proceedings and Evidence Respecting the Bank of Canada, Ottawa, J.O. Patenaude, I.S.O., Printer to the King’s Most Excellent Majesty, 1939.) Most of the evidence quoted was the result of interrogation by Mr. “Gerry” McGeer, K.C., a former mayor of Vancouver, who clearly understood the essentials of central banking. Here are a few excerpts:

    Q. But there is no question about it that banks create the medium of exchange?

    Mr. Towers: That is right. That is what they are for… That is the Banking business, just in the same way that a steel plant makes steel. (p. 287)

    The manufacturing process consists of making a pen-and-ink or typewriter entry on a card in a book. That is all. (pp. 76 and 238)

    Each and every time a bank makes a loan (or purchases securities), new bank credit is created — new deposits — brand new money. (pp. 113 and 238)

    Broadly speaking, all new money comes out of a Bank in the form of loans.

    As loans are debts, then under the present system all money is debt. (p. 459)

    Q. When $1,000,000 worth of bonds is presented (by the government) to the bank, a million dollars of new money or the equivalent is created?

    Mr. Towers: Yes.

    Q. Is it a fact that a million dollars of new money is created?

    Mr. Towers: That is right.

    Q. Now, the same thing holds true when the municipality or the province goes to the bank?

    Mr. Towers: Or an individual borrower.

    Q. Or when a private person goes to a bank?

    Mr. Towers: Yes.

    Q. When I borrow $100 from the bank as a private citizen, the bank makes a bookkeeping entry, and there is a $100 increase in the deposits of that bank, in the total deposits of that bank?

    Mr. Towers: Yes. (p. 238)

    Q. Mr. Towers, when you allow the merchant banking system to issue bank deposits which, with the practice of using the cheques as we have it in vogue today, constitutes the medium of exchange upon which I think 95 per cent of our public and private business is transacted, you virtually allow the banks to issue an effective substitute for money, do you not?

    Mr. Towers: The bank deposits are actual money in that sense, yes.

    Q. In that sense they are actual money, but, as a matter of fact, they are not actual money but credit, bookkeeping accounts, which are used as a substitute for money?

    Mr. Towers: Yes.

    Q. Then we authorize the banks to issue a substitute for money?

    Mr. Towers: Yes, I think that is a very fair statement of banking. (p. 285)

    Q. 12 per cent of the money in use in Canada is issued by the Government through the Mint and the Bank of Canada, and 88 per cent is issued by the merchant banks of Canada on the reserves issued by the Bank of Canada?

    Mr. Towers: Yes.

    Q. But if the issue of currency and money is a high prerogative of government, then that high prerogative has been transferred to the extent of 88 per cent from the Government to the merchant banking system?

    Mr. Towers: Yes. (p. 286)

    Q. Will you tell me why a government with power to create money, should give that power away to a private monopoly, and then borrow that which parliament can create itself, back at interest, to the point of national bankruptcy?

    Mr. Towers: If parliament wants to change the form of operating the banking system, then certainly that is within the power of parliament. (p. 394)

    Q. So far as war is concerned, to defend the integrity of the nation, there will be no difficulty in raising the means of financing, whatever those requirements may be?

    Mr. Towers: The limit of the possibilities depends on men and materials.

    Q. And where you have an abundance of men and materials, you have no difficulty, under our present banking system, in putting forth the medium of exchange that is necessary to put the men and materials to work in defence of the realm?

    Mr. Towers: That is right. (p. 649)

    Q. Would you admit that anything physically possible and desirable, can be made financially possible?

    Mr. Towers: Certainly. (p. 771)

    • socalbeachdude

      Totally false and utterly absurd assertions. BANKS NEVER CREATE ANY MONEY AT ALL and are in the business of LENDING OUT CUSTOMER DEPOSITS and CHARGING FEES ON BANKING SERVICES which is how they make their money to stay in business and pay deposits interest on the money that the customers deposit at the banks.

      • GSOB

        The same bankers who own the FED control the media and give huge political contributions to sympathetic members of Congress

        • socalbeachdude

          False.

  • Banks don’t lend money you see. Where would the bank get money to lend? Bank rules dictate the bank can not lend a depositors funds nor can it lend its own money.
    So, the bank has no money to lend.
    None.
    What the bank does have is a charter with the government authorizing the bank to extend the nominal borrowers credit to the extent of creating brand new, never existed before money in the way of a loan.
    Now the bank has 0 risk involved in this transaction and still collects interest. Nice little business, eh?

    • JC Teecher

      Initially, Banks could only loan out “up to” the amount of deposits in the form of currency, coins/bulk, of silver and gold, and assets in the form of land deeds, that they held.
      Collateral of a movable property wasn’t termed as assets of deposit, but as chattel mortgage.

      • socalbeachdude

        Absolutely false assertions.

    • socalbeachdude

      Banks are in the business of LENDING OUT CUSTOMER DEPOSITS and can only do so up to the LIMIT BASED ON RESERVE REQUIREMENTS which are presently around 10% of those customer deposits which means that a bank can NEVER LEND OUT MORE THAN 90% of the total of customer deposits at any particular bank. Your assertions to the contrary are beyond totally false and are utterly absurd.

      • GSOB

        ….. BUT, BUT, BUT…. What a cashless society really means is
        the banks can FULLY control you.

        • socalbeachdude

          How do they in any way “control you?”

      • In Canada the Bank Act does not allow banks to lend depositors funds nor its own funds.
        Why do you think the bank lends out customer deposits? Where is your evidence of that?
        I think it is no different in the USA as it is in Canada. Banks simply do not lend money at all. So called “loans” are not money lent from on deposit. These “loans” are created by extending YOUR credit, not the banks or any shareholders credit. Do you know the difference between extending credit and loaning money? If the bank actually lent you its money or its depositors money then why would the bank turn around and sell a security interest in your loan to the Southern California Teachers Pension Fund?

        • socalbeachdude

          Absolutely false and very stupid assertions. Banks in Canada LOAN OUT DEPOSITORS FUNDS just like all other banks everywhere around the world. I would suggest you learn about money and banking as you appear to know absolutely nothing about either topic.

  • JC Teecher

    The problem with trying to end the Fed Reserve, is that the FR is tied to layers and layers of wealth, power , and greed, in the form of many organizations. The Rothschild families are most likely the top owners and operators of the world’s banking/financial systems, including the FR.
    Underneath that family is the organizations of the Shadow Governments of the World and elite Corporate Gurus.

    Sadly; there is only “one” redeemer/Saviour that can change the current situation, and that includes the FR. When that happens, “after”, the little reign of the Beast and the Beast System; the King of Kings will set everything straight and the proverbial goats, and goats in sheep’s clothing will all go into the lake of fire.

    Small battles can be won, on small scales, like winning with some executive orders and even some House bills, that make it through the Senate, but overall, not so much as time is running out. I’ll leave all the rational thinkers with this quote:

    “Money is the barometer of a society’s virtue. When you
    see that trading is done, not by consent, but by compulsion, when you see that in order to produce, you need to obtain permission from men who produce nothing, when you see that money is flowing to those who deal, not in goods, but in favors, when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you –when you see corruption being rewarded and honesty becoming a self-sacrifice – you may know that your society is doomed.” – Ayn Rand, Atlas Shrugged

    • Mangoman

      Great quote

      • PocoPete

        Yes, great quote indeed!

    • socalbeachdude

      The Rothschild family has nothing whatsoever to do with the Federal Reserve and only even has small private wealth management banking operations in the USA.

      • Paul Patriot

        What?????? Wow!!!!! Troubling…..

  • Bill

    Fractional reserve banking is the name of the scam whereby only a small percent of deposits are required to be held as a reserve for new loans. This is how money is created out of ” thin air”.

    • socalbeachdude

      THERE IS NO SUCH THING AS FRACTIONAL RESERVE BANKING / LENDING AT ALL in the sense that you are asserting. NO BANK MAY EVER LEND OUT MORE THAN 100% OF ITS DEPOSITS. NEVER. EVER.

      Presently, the aggregate outstanding loans to deposits ratio of US banks is at a RECORD LOW OF 67% because demand for borrowing is so low.

      Your totally incorrect assertions regarding “Fractional Reserve Banking” are beyond ludicrous, clueless, and utterly bogus. Moreover, they show that you haven’t got a clue about bank lending at all and how it works.

      Most all bank loans are SPENT IN FULL IMMEDIATELY to third parties for assets such as cars and houses (which are the majority of all bank lending to borrowers0 which become the COLLATERAL to SECURE THOSE LOANS. Loan proceeds to borrowers DO NOT GOT INTO CUSTOMER DEPOSITS AT BANKS FROM WHICH BANKS CAN LEND ADDITIONAL FUNDS. Loan proceeds are SPENT into the economy.

      When there are NO RESERVE REQUIREMENTS at banks on customer deposits, then 100% OF THOSE DEPOSITS CAN BE LOANED OUT TO BORROWERS as is the case on time deposits such as CDs and savings accounts.

      When there are RESERVE REQUIREMENTS of 3% to 5% at banks on customer DEMAND DEPOSITS such as checking accounts, then a bank can only lend out 95% to 97% of those deposit amounts to customers as they must retain 3% to 5% of those deposits as CASH ON HAND to meet anticipated withdrawals by customers.

      All customer deposits which are LIABILITIES on the general ledger of a bank are BACKED FULLY BY ASSETS on the general ledger of a bank. The form of assets held by the bank is inconsequential to the depositor and can be and is 1) cash, 2) outstanding loans to borrowers, 3) US Treasuries or other allowed asset classes.

      I would suggest you learn about RESERVE REQUIREMENTS and their applicability at:

      http://www.federalreserve.gov/monetarypolicy/reservereq.htm

    • jox

      You are right: the fractional reserve banking system is the tool of the bankers to enslave countries and people.

      • socalbeachdude

        Absolutely false and utterly clueless assertion.

        • GSOB

          They have so many tools and have retired some. They have the ability to create any tool they want to manipulate and control the economy.

          • socalbeachdude

            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 10% reserve requirement would be 90%.

            Banks presently have MORE THAN $3.5 TRILLION IN RESERVES in their primary and 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.

  • socalbeachdude

    Fed intensifies balance-sheet discussions with market players

    Federal Reserve staff, widening their outreach to investors in anticipation of a critical turning point in monetary policy, are seeking bond fund manager feedback on how the central bank should tailor and communicate its exit from record holdings of Treasuries and mortgage-backed securities.

    Fed officials are intent on shrinking their crisis-era $4.48 trillion balance sheet in a way that isn’t disruptive and doesn’t usurp the federal funds rate as the main policy tool.

    https://www.bloomberg.com/news/articles/2017-04-20/fed-intensifies-balance-sheet-discussions-with-market-players

  • socalbeachdude

    The Federal Reserve is today the single largest entity contributor to US government revenues as it rebates more than 94% of its annual profits each year to the US Treasury and does not cost the US taxpayers a single penny to operate and that has always been the case.

    CONGRESS is the one that is 100% to blame for the insolvency of the federal government along with the administrations which signed the absurd spending authorizations by Congress into law.

    • GSOB

      We, the People, are at fault for being passive and allowing this to continue.

      • socalbeachdude

        What “we the people” are at fault for is for DEMANDING THEIR GOVERNMENT SPEND VASTLY MORE THAN IT TAKES IN EACH YEAR IN REVENUES and that is precisely what has caused the $20 trillion debt problem.

  • socalbeachdude

    Federal Reserve FOMC Sticks to Gradual Rate-Hike Approach Despite Slowdown

    U.S. central bankers stuck to their outlook for gradual monetary-policy tightening after they left interest rates unchanged and showed no alarm over recent economic weakness.

    Federal Reserve officials were unusually explicit in their statement, released Wednesday following a two-day meeting in Washington, indicating that a disappointing first quarter wouldn’t knock the committee off its path to raise rates two more times this year after a hike in March.

    “The committee views the slowing in growth during the first quarter as likely to be transitory,” the Federal Open Market Committee said. “Near-term risks to the economic outlook appear roughly balanced.”

    The widely expected decision contained no concrete commitment to the timing of the next rate increase. Even so, investors increased bets on a move in June after absorbing the Fed’s sanguine assessment of the outlook and its encouraging observations on inflation, following data showing first-quarter economic growth of 0.7 percent and monthly price declines in March.

    “Nothing in the statement today, which was voted unanimously by the FOMC, leads me to believe that the Fed is even close to changing its mind on rates,” Roberto Perli, a partner at Cornerstone Macro LLC in Washington, wrote in a note to clients. “Base case is for a couple more rate hikes this year — probably in June and September — and for the beginning of balance sheet shrinkage in December.”

    https://www.bloomberg.com/news/articles/2017-05-03/fed-signals-gradual-rate-hike-approach-intact-despite-soft-patch

    • GSOB

      Today, if the government runs a deficit, the FED prints dollars through the U.S. Treasury, buys the debt, and the dollars are circulated into the economy.

      • socalbeachdude

        Your assertions are laughably false and absolutely DEAD WRONG. The Federal Reserve does no such thing at all as you bogusly assert. The Federal Reserve only owns a total of about 14% of total outstanding US Treasuries and the US Treasury creates about $7 trillion in new US Treasuries each year with only about 8% of those sold to the Federal Reserve to replaced matured US Treasuries. Nearly $6 trillion of the newly issued US Treasuries are issued to replace US Treasuries which mature each year. I would suggest you learn about the US Treasuries markets at:

        http://www.TreasuryDirect.gov

        • rmc9

          I don’t think anyone out here, believes you.

          • socalbeachdude

            What I stated are the 100% accurate, correct, and true facts. If you – or anyone else – chooses not to believe ACTUAL FACTS then that is YOUR PROBLEM.

  • socalbeachdude

    The Federal Reserve has been very conservative in its creation of money (unlike the People’s Bank of China which is the most egregious money printer in the world by far) and its balance sheet is now only about$4.4 trillion while supporting the largest economy in the world.

    The Federal Reserve has done an absolutely superb job of managing the money supply and monetary policy in the US over the past 101 years during which time the US has become the biggest economy in the world and the wealthiest country in the world with over $180 trillion in assets which are offset by only about $60 trillion in debt resulting in around $120 trillion in net aggregate assets in the US..

    Without the Federal Reserve and its monetary policy and influence over the past, the US would still be the irrelevant backwater banana republic that it was back in 1913 as opposed to the economic superpower of the world – by far – with the world’s reserve currency used in 85% of all global transactions and the wealthiest nation in the world with over $180 trillion in assets.

    The Federal Reserve has an excellent web site which explains all of the operations, functions, and details about the Federal Reserve and the Federal Reserve Act and anyone wanting to learn more about the Federal Reserve can peruse all of that information including their fully audited and highly detailed independently audited annual financial reports as well as a wealth of other information and statistics at:

    http://www.FederalReserve.gov

    • GSOB

      Congress illegally gave the FED the right to print money (through the Treasury) at no interest to the FED.

      The FED creates money from nothing and loans it back to us through banks and charges interest on our currency.

      The FED also buys Government debt with money printed on a printing press and charges U.S. taxpayers interest.

      • socalbeachdude

        So dead wrong and laughably false as to not even deserve any further comment. I would suggest you learn about the Federal Reserve at:

        http://www.FederalReserve.gov

        • GSOB

          lol…. you are an idiot.

          The Fed holds more in Treasury bonds than do China and most of the Eurozone combined.!

          • socalbeachdude

            The Federal Reserve only owns about $2.5 trillion of the outstanding $20 trillion of US Treasuries and only buys about 8% of the newly issued $7 trillion in US Treasuries each year and that is done to replace those that mature every year.

    • Stuey

      Absolutely superb job??? Guess you still smoking that wacky weed, did you even read the article?? Quote—“Federal Reserve was created in 1913, but since that time there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.”————yeah what a great job

      • socalbeachdude

        Economies will ALWAYS HAVE BUSINESS CYCLES as that simply how the world works and business cycles can never be totally eliminated.

        • Stuey

          duh huh, you are soooo smart, i have never heard of the business cycle before……and of course none of it is the Federal Reserves fault. You are such a brainiac.

          • socalbeachdude

            Obviously, ECONOMIC CYCLES have always been part and parcel of all economies everywhere in the world with BOOM and BUST CYCLES. The Federal Reserve can help SMOOTH those cycles but can never eliminate them.

          • Stuey

            Well obviously, and of course the Federal Reserve or the worldwide banking cartels of today and prior to the formation of the Federal Reserve would NEVER EVER cause any downturns in the economy they would only smooth out any bad times. Like they did during the Great Depression, which the Federal Reserve now ADMITS that they screwed up on how they handled it when it first started. So no, you are WRONG, the Federal Reserve doesn’t always make economic situations better.

          • socalbeachdude

            What utter nonsense. No central bank ever wants to see any economic downturns in their respective economies and work hard to prevent such issues to the extent they can.

          • Stuey

            Who said they wanted to see them? They happen because the Federal Reserve screws up.

          • socalbeachdude

            Are you really that utterly stupid and totally clueless? Seriously?

        • wlawlor

          everyone goes bust BUT the banksters.

          • socalbeachdude

            Many banks have failed in the US over the years including some very large banks in 2008-2009.

  • socalbeachdude

    The Federal Reserve on sets 3 interest rates and has no control whatsoever of any interest rates across any other assets at all and never has as those are all established by the US Treasuries markets from which all interest rates that matter in the US economy are keyed by banks and other financial institutions.

    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 0.75% to 1.00%

    3) Federal Reserve IOER (Interest On Excess Reserves) – currently 1.00%

    Regulations T and U of the Federal Reserve have NOTHING WHATSOEVER to do with interest rates and both relate to MARGIN REQUIREMENTS on stock purchases bought with borrowed funds.

  • socalbeachdude

    The Federal Reserve is a CREATION OF THE FEDERAL GOVERNMENT and is a quasi public-private central bank in the US which is owned by its member banks and which rebates 94% of its annual profits each ear to the US Treasury for the benefit of the US taxpayers.

    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/

    The Federal Reserve does not cost the US government and taxpayers a single penny and is the LARGEST SINGLE PAYER OF REVENUES TO THE US GOVERNMENT each year and those rebates now amount to around $100 billion a year.

    Bank profits are not soaring at all and banks have been slammed with hundreds of billions of dollars of fines by the US government over the past 8 years and are reeling from that and closing many parts of their operations and firing tens of thousands of employees in the banking industry.

    Bank fees haven’t changed much at all over the years and banks do not charge fees on most things.

    • GSOB

      THE FEDERAL RESERVE BANK IS A PRIVATE COMPANY!

      • socalbeachdude

        The Federal Reserve is not a “private company” at all and is a quasi-public entity created by Congress in the public interest which rebates 94% of its profits each year to the *US Treasury.

        • wlawlor

          you mean quasi-crooked.

          • socalbeachdude

            False.

  • socalbeachdude

    The total M1 money supply in the US is only $3 trillion and only $1.3 trillion of that is printed currency. This is confirmed by the Federal Reserve H.3 report:

    http://www.federalreserve.gov/releases/h3/current/

    M2 which includes M1 plus savings balances is only around $13. None of the QE funds increased the money supply at all but only served to increase the MONETARY BASE with 100% of those funds remaining inside the Federal Reserve.

    That LITTLE BIT OF MONEY supports the largest economy in the world which is now an $18 trillion a year economy.

    The entire $3.6 trillion of Federal Reserve QE funds has ALWAYS REMAINED INSIDE THE FEDERAL RESERVE in the reserves accounts of the member banks from whom the Federal Reserve purchased securities with more than $2.5 trillion in the EXCESS RESERVES accounts of those banks.

    Money Stock Measures – H.6

    http://www.federalreserve.gov/releases/h6/

    Due to extremely low borrowing demand from qualified borrowers, banks now have cash reserves of around 33% of all customer deposits with only about 67% of customer deposits in outstanding loans.

    • GSOB

      The bankers create inflation, sell their stocks before the market crashes, then buy up stocks at cheaper prices.
      Bankers admitted this to Congress.

      This violates the law, yet Congress does not act because these bankers are large political contributors!

      • socalbeachdude

        Laughably false. Banks own very little stock in their own accounts and the Federal Reserve owns NO EQUITIES (STOCKS) AT ALL.

    • Paul Anders

      M2 which includes M1 plus savings balances is only around $13.
      Obviously you have your facts wrong…again.

  • socalbeachdude

    If not for the Federal Reserve and all of its excellent work over the past 100 years, America would still be the insignificant backwater banana republic it was back before 1913 when Congress wisely enacted the Federal Reserve Act.

    • GSOB

      Call it,
      ‘The Taking Over Of America’

      • socalbeachdude

        Absolutely false.

  • socalbeachdude

    The US dollar will strengthen significantly as the Grand Global Depression intensifies and holding cash equivalents such as Treasuries will be the ultimate safe haven.

    • GSOB

      Under the Federal Reserve Bank Act, the bankers control the economy.

      • socalbeachdude

        Laughably false and utterly bogus assertions.

        • GSOB

          ???

  • socalbeachdude

    OK. So many want to see much higher interest rates. Let’s assume that Janet Yellen and the FOMC wave a magic wand and return the Federal Funds and Federal Discount rates back to 5.25% where they were in August 2007.

    First, those rates DO NOT SET interest rates on anything at all other than 1) interbank borrowing (FFR), and 2) borrowing directly from the Federal Reserve (FDR).

    Second, those Federal Reserve rates only INFLUENCE other rates, but let’s assume that influence takes bond yields for long term bonds back up to 5.25% versus 2.0% to 3.5%. If bond yields soar, then what happens? Bond prices crash hard because they are directly inverse to yields. And what does a huge bond price crash do to the US and global economy?

    Third, banks are awash in deposits (over $13 trillion in deposits) while demand to borrow is low. If interest rates go back to 5.25% then demand to borrow would fall even further. So why would banks pay savers any more for deposits if even few people wanted to borrow?

    There are no regulations as to what banks have to pay on deposits and that is set by market demand for money.

    Fourth, how would everyone like to see the federal government interest on its $20 trillion national debt soar to $1.2 trillion a year instead of around $240 billion a year?

    • GSOB

      The FED controls interest rates and the amount of money in the economy.
      These factors determine either economic prosperity or the lack thereof.

      • socalbeachdude

        Laughably false. The Federal Reserve does no such thing at all as you falsely assert.

        The Federal Reserve on sets 3 interest rates and has no control whatsoever of any interest rates across any other assets at all and never has as those are all established by the US Treasuries markets from which all interest rates that matter in the US economy are keyed by banks and other financial institutions.

        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 0.75% to 1.00%

        3) Federal Reserve IOER (Interest On Excess Reserves) – currently 1.00%

    • Stuey

      Who out here said they wanted higher interest rates???

      • socalbeachdude

        People with savings accounts, obviously.

        • Stuey

          You made it sound like EVERYONE wanted higher interest rates which is obviously not the case.

          • socalbeachdude

            No doubt that debtors want lower rates, but that certainly won’t be the case for long and they should have taken that into account before wallowing in vast debts.

  • 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.

    • GSOB

      Alan Greenspan: ‘There Is No Authority Above The Federal Reserve’

      • LIZ THE SHIZ

        but then for Allen there’s Andrea Mitchell although I can’t see what the attraction is ” love is blind” I guess

      • socalbeachdude

        Mr. Andrea Mitchell always made lots of nutty and utterly bogus assertions and that is one of them.

    • Stuey

      labor?? 1/3 of the population doesn’t even work……….productivity?? true production of goods has decreased as the manufacturing has decreased and will continue to decrease………so good luck with the great “future assets” of the USA

      • socalbeachdude

        Americans Wealthier Than Ever…

        U.S. household net worth climbed to a record $92.8 trillion in the fourth quarter of 2016, as the end-of-year surge in stocks and a steady climb in home prices added more than $2 trillion of wealth to household balance sheets.

        The biggest contributor to the increase was the stock market’s end-of-year rally, which added $728 billion to household net worth in the fourth quarter, according to the Federal Reserve’s quarterly financial accounts report.

        https://www.wsj.com/articles/u-s-household-net-worth-reaches-record-92-8-trillion-1489078918

        • Stuey

          wealth and productivity and labor are all different things…..and with the 20 trillion dollars in debt plus unfunded liabilites which all the american citizens are on the hook for, the net worth of the country is even based on your own estimates of the total value of the USA——although in that past question you never answered the second part of the question about how much the country owes, which is typical of you. But estimates range up to 100 trillion.

          • socalbeachdude

            Total outstanding debt in the USA now exceeds $67 trillion across all levels of the US economy with less than one-third being the federal government debt of $20 trillion.

        • Ben Hanscom

          Are those numbers adjusted for inflation?

  • socalbeachdude

    The Federal Reserve is the SINGLE LARGEST ENTITY CONTRIBUTOR TO US GOVERNMENT REVENUES EACH YEAR AND REBATES 94% OF ITS PROFITS EACH AND EVERY YEAR TO THE US TREASURY and doesn’t cost the US government or its taxpayers a single penny.

    • GSOB

      [The bankers created the legislation for the FED]

    • Stuey

      This it TOTAL BS! Federal income tax brings in 2 trillion a year to the US Govt……..are you purposely misleading people or are you just that ignorant?

      • socalbeachdude

        You apparently cannot read or comprehend as I clearly stated that the ” Federal Reserve is the SINGLE LARGEST ENTITY CONTRIBUTOR TO US GOVERNMENT REVENUES EACH YEAR.

  • 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. The yield (interest rate) on the 3 year US Treasuries has now skyrocketed up to 1.41% as of November 25, 2016 whereas the Federal Funds Rate is currently in the range of 0.25% to 0.50% where it was moved upwards to on December 16, 2015.

    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” except for very short periods of time.

    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 DEPOSITS.

    • GSOB

      England never gave up on owning the United States.

      • LIZ THE SHIZ

        I think if you asked them they would say keep it old chap

      • socalbeachdude

        The UK is now collapsing financially and is about to lose the largest part of its economy – The City – which is the financial heart of the UK as inflation soars to around 20% and its currency collapses as it moves towards exiting the EU with very harsh penalties for doing that imposed by the EU and it being totally cut out of the European financial system once it becomes its own self-contained mess.

  • socalbeachdude

    The “New” Financial Weapons of Mass Destruction

    According to Goldman, a mere 10 stocks — 10 stocks — account for almost half the S&P’s gains for the year.

    Forty-six percent, to be precise.

    This year’s bull’s-eye stocks are the so-called FAANGs — Facebook, Amazon, Apple, Netflix and Google.

    Rounding out the top 10 are Visa… Philip Morris… Oracle… Home Depot… and Broadcom.

    Most other stocks are zeroes — or worse.

    David Stockman in yesterday’s reckoning:

    “During the last 70 days, the FAANGs have gained $260 billion in value, while the other 495 companies in the S&P 500 have lost an identical amount… Other than the five FAANG stocks, the market has been silently collapsing since March 1.”

    Meanwhile, recent data from Fundstrat Global Advisors reveal that just 40 stocks out of 500 — 8%, that is — account for some 85% of the S&P’s gains this year.

    https://dailyreckoning.com/new-financial-weapons-mass-destruction/

  • socalbeachdude

    Why on earth would you want to eliminate the SINGLE LARGE ENTITY SOURCE OF US GOVERNMENT REVENUES which is, of course, the Federal Reserve as it REBATES MORE THAN 94% OF ITS PROFITS EACH YEAR TO THE US TREASURY which now amounts to around $100 billion a year in US government revenues?

    • Paul Anders

      Isn’t the income tax on our labor the biggest source of income for our Government?

      • Stuey

        yes, of course you are right, around 2 trillion a year in federal revenue alone…..socaldopeheaddude is an idiot

        • socalbeachdude

          You apparently can’t read or comprehend, either. No other SINGLE ENTITY pays more in federal tax revenues than the Federal Reserve which rebates about $100 billion a year in profits to the US Treasury and no other SINGLE ENTITY even comes close to that amount. Obviously, total US tax revenues are around $3 trillion a year but come from MANY ENTITIES including about 50% of all US households.

          • Paul Anders

            Isn’t the FED many different entities…there are Shareholders…plural! The American tax payers should be lumped together as an entity if that’s the case.

          • Stuey

            yeah, but he can’t comprehend that.

          • socalbeachdude

            It is YOU with a comprehension issue as the Federal Reserve is a SINGLE ENTITY.

          • socalbeachdude

            No, the Federal Reserve is a SINGLE ENTITY and not “different entities” at all and reports all of its income on a SINGLE CONSOLIDATED FINANCIAL STATEMENT which includes all revenues generated from its 12 regional banks in the USA.

          • Stuey

            Yeah, and that single entity is called the IRS—Internal Revenue Service in case you don’t know what IRS stands for……..so you are the one who can’t comprehend what your write yourself.

          • socalbeachdude

            The IRS does not generate any profits at all and is JUST A USE GOVERNMENT AGENCY FOR THE SOLE PURPOSE OF COLLECTING TAXES FROM US ENTITIES.

          • Stuey

            Haha, you are really splitting hairs on this one.The IRS is one of the most powerful govt. organizations……and they “collect” 3 trillion a year…..you may not call that generating a profit for the govt but i do.

          • socalbeachdude

            Nope. The IRS is NOT A BUSINESS AND DOES NOT GENERAL ANY PROFITS but is merely the TAX COLLECTOR FOR THE US TREASURY that collects taxes from US entities and citizens based on the laws passed by Congress.

          • Stuey

            Oh, so you ADMIT that the Federal Reserve is a BUSINESS and in the business of making money for ITSELF. Thank you for the admission. So if you want to split hairs on the IRS and put it on the US Treasury then fine, the US Treasury is the department of the US govt. that brings in the most revenue which is a A LOT more than the Federal Reserve gives out of the goodness of their heart to the US government.

          • socalbeachdude

            Of course, the Federal Reserve is a business and it is the largest banking business in the world. Simple fact. And that business rebates 94% of its annual profits to the US Treasury. Helllooooo?

          • Stuey

            Atleast you finally admitted that the Federal Reserve is a business and are not looking out for what is best for the USA but what is best for them to make a profit. No private organization in the business of turning a profit should have the ability to print US currency . What a scam for the ages.

          • socalbeachdude

            Of course the Federal Reserve is a business and is in fact the largest bank in the world and does make a profit which it rebates 94% of each year to the US Treasury as it has always done every year throughout its 104 years of existence after being created by the Congress of the USA.

      • socalbeachdude

        Learn to read. The Federal Reserve is the LARGEST SINGLE ENTITY contributor to US federal tax revenues.

      • wlawlor

        asking the FED troll questions about the Fed ? C’mon,this guy is a paid Rothschild stooge.

        • socalbeachdude

          Laughably false and the Rothschild family has nothing whatsoever to do with the Federal Reserve in the USA.

        • Paul Anders

          Hey I Know that, but if I can ask this asshole enough stupid questions, maybe he’ll have a heart attack and go away…lol

          • wlawlor

            Sic em Paul !!

    • GSOB

      ARTICLE 1, SECTION 8 OF THE CONSTITUTION STATES THAT CONGRESS SHALL HAVE THE POWER TO COIN (CREATE) MONEY AND REGULATE THE VALUE THEREOF.

      IN 1935 THE SUPREME COURT RULED THAT CONGRESS CANNOT CONSTITUTIONALLY DELEGATE ITS POWER TO ANOTHER GROUP. (Reference 22, P. 168)

      • socalbeachdude

        The United States of America long ago moved past “COINING MONEY” and coins are a totally IRRELEVANT form of money and there is nothing whatsoever in the US Constitution that in any way relates to currency.

  • socalbeachdude

    MAJORITY OF AMERICANS LOST IN INANE FANTASIES…</b?

    Just 29 percent approve of Trump's firing of James Comey and another 46 percent believe FBI director was sacked to slow Russian investigation

    Just 29 percent of Americans approve of President Trump's decision to fire FBI Director James Comey, a new NBC News/Wall Street Journal poll shows.

    http://www.dailymail.co.uk/news/article-4505526/Just-29-percent-approve-Trump-s-firing-James-Comey.html

    • GSOB

      ..

    • Sam Nelson

      Look where the poll is coming from before making any decisions about its value; in this case the poll is coming from enemies of the USA. A good rule of thumb: believe nothing you read coming from the MSM.

      • socalbeachdude

        Laughably false nonsense from you.

        • Sam Nelson

          Like the polls and the MSM that said Hillary Clinton in a landslide: laughably false nonsense?

          • socalbeachdude

            What on earth does that have to do with the topic of the Federal Reserve?

  • socalbeachdude

    Is Trump boosting the economy? Here’s what Goldman Sachs says…

    Ever since President Donald Trump took office, the main question on the mind of U.S. stock market investors has been, “will the market optimism his election inspired prove justified by economic activity, or did the rally simply set stocks up for a bigger fall?” According to a Goldman Sachs analysis of corporate commentary, it’s looking more like the latter.

    http://www.marketwatch.com/story/is-donald-trump-boosting-the-economy-goldman-finds-mixed-signals-2017-05-12

    • LIZ THE SHIZ

      WOW, ask the swamp about the swamp

      • socalbeachdude

        Goldman-Sachs is a SUPERB investment bank, but it officials should not be in federal government jobs.

  • socalbeachdude

    Founder of the world’s largest hedge fund says the ‘magnitude’ of the next downturn will be epic

    http://www.marketwatch.com/story/hedge-fund-pro-ray-dalio-has-some-bad-news-says-for-stock-market-investors-2017-05-12

    • Paul Anders

      Yeah, years from now…

      • GSOB

        Clearly, the FED must be abolished before America is demolished!

        • Paul Anders

          She already has been…you just don’t know it yet.

          • GSOB

            Prep

          • Paul Anders

            Oh I do. It’s better to be prepared than having to scrounge and compete…

        • socalbeachdude

          Obviously not.

          • wlawlor

            you’re so full of …., the ONLY thing backing the petrodollar is the oil we control through our vassal states and other countries that we intimidate or invade.Iraq comes to mind. 911 was our excuse to invade the region. We prop up the dictators in Saudi and arm them against their own people.

          • socalbeachdude

            The US dollar is more important than ever in the global commerce and the nutty notion of the “petro dollar” is totally irrelevant and utter nonsense.

          • wlawlor

            save your drivel for the uneducated.

      • socalbeachdude

        Markets are ALREADY CRASHING across most stocks in the USA markets and have been doing so since the beginning of March 2017.

  • socalbeachdude

    Fed plans to shrink balance sheet this year, minutes show

    Some officials were worried about how high stock prices have gone

    The Federal Reserve is looking to reduce its $4.5 trillion stockpile of government- and mortgage-backed bonds later this year, according to minutes of the March policy meeting released Wednesday.

    The plan to reduce the balance sheet size is tied to interest rates increasing, the minutes reveal. In their discussion of the path of interest rates, officials supported a gradual pace of rate hikes but said they could change their mind if the economy unexpectedly heated up.

    http://www.marketwatch.com/story/fed-plans-to-shrink-balance-sheet-this-year-minutes-show-2017-04-05?mod=MW_story_latest_news

    Full Minutes of Federal Reserve March FOMC Meeting

    https://www.federalreserve.gov/newsevents/pressreleases/monetary20170405a.htm

    • GSOB

      In 8 years or so, the only thing taxes will pay is the interest on the debt.

      • socalbeachdude

        The current US government tab for interest rates is only about 6% of the $4 trillion a year federal budget for a total cost of around $240 billion a year. It could go significantly higher if the yields on US Treasuries rise substantially in the markets, but certainly would come anywhere even remotely close to the entire budget of the USA.

        • GSOB

          Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the Federal government more money to spend.

          • socalbeachdude

            Do you not even comprehend that the US Treasury repays the Federal Reserve in full for all of the US Treasuries that the Federal Reserve owns each and every year WHEN THEY MATURE? The Federal Reserve only owns about $2.5 trillion of the outstanding $20 trillion of US Treasuries and only buys about 8% of the newly issued $7 trillion in US Treasuries each year and that is done to replace those that mature every year.

            The Federal Reserve does not “give” the US Treasury any money to spend 9ther than the around $100 trillion that it contributes every year to US Treasury revenues by rebating around 94% of its annual profits to the US Treasury.

  • socalbeachdude

    Hurricane Bearing Down on the Casino – David Stockman

    Yesterday I said the Donald was absolutely right in canning the insufferable James Comey, but that he has also has stepped on a terminal political land-mine. And he did.

    That’s because the entire Russian meddling and collusion narrative is a ridiculous, evidence-free attempt to re-litigate the last election. And now that the powers that be have all the justification they need. And what is already an irrational witch-hunt will be quickly turned into a scorched-earth assault on a sitting president.

    https://dailyreckoning.com/hurricane-bearing-casino/

  • Cal

    This is an old story. JFK tried to bypass the central bank hence ending it by signing an executive order in 1963 authorizing the treasury to print debt free US treasury notes backed by the value of silver in US vaults in lieu of debt ridden federal reserve notes backed by nothing. This experiment ended with Kennedy’s death and US treasury notes yanked by LBJ restoring federal reserve notes as the national currency.

    • socalbeachdude

      Absolutely false. JFK did no such thing at all as you erroneously assert with silver certificates in 1963 and his Executive Order 11110 was involved with ENDING SILVER CERTIFICATES. Executive Order 11110 was about blue seal Silver Certificates which were being retired and withdrawn as printed US dollars from the currency.

  • Bill

    30 out of 46 comments have a wasted blank space and now I am moderated for a simple clean comment, what gives Mr author? Time to change your software? I think you are too prejudicial to be a representative. You are creating a clear pattern as evidenced by your continued unfair moderation but I will continue to compliment you when the condition warrants.

  • XSANDIEGOCA

    The final nail in the coffin was Nixon taking us off Gold in 1971. Look at the National Debt graph since then. It has only been up, up and up. Now, we face a Tsunami of Debt that will never be repaid and must be repudiated.

    • socalbeachdude

      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.

      • XSANDIEGOCA

        Hey, look at the Graph.

        • socalbeachdude

          What graph?

  • Bill

    Some Christians apologize, some don’t…..some make mistakes and admit them, some don’t make any mistakes, so they think.

  • Richard O. Mann

    Ain’t happening. Too big. Too powerful.

    • sister soldier

      The government can’t even agree on a bi-partisan fiscal spending bill or legislature that will improve the lives of everyday people. I guess since we obviously cannot fix the grassroots problems then why not tackle the issues that are astronomically against all odds out of our reach.

      • socalbeachdude

        It is not the job of government to “improve the lives of everyday people.” Just where do you see that in the US Constitution?

        • sister soldier

          Do you always upvote your own jargon?

          • GSOB

            Yes.

          • sister soldier

            Got it.

        • PocoPete

          The opening paragraph of Section 8 of the Constitution grants Congress the power to raise taxes to, among other things, “provide for the … general welfare of the United States.”

          • socalbeachdude

            OK, but so what? Congress has already GROSSLY ABUSED THAT which has resulted in our present $20+ trillion federal debt which is growing by more than $1 trillion per year, leaving aside the issue of so-called “unfunded liabilities.”

        • wlawlor

          it’s the job of the deep state to make debt slaves of the populace. They are doing a fine job.

          • socalbeachdude

            Laughably false.

  • jox

    Brilliant article! We must not only close the Fed, but also forbid the reserve banking system and impose a full-reserve system. This is defended by the International Movement for Monetary reform, Positive Money in UK.

    In the US there exist the organization American Monetary Institute that demand also such transformation. Unfortunately, its director, Steven Zarlenga (author of the important book The lost sciente of money), has recently passed away, and the future of the Institute is uncertain.

    • socalbeachdude

      What utter nonsense. You obviously don’t understand RESERVE REQUIREMENTS at all, which simply mean that banks MUST MAINTAIN RESERVES OF AROUND 10% OF THE AMOUNT OF CUSTOMER DEPOSITS. The reason for that is, of course, to have CASH ON HAND to meet anticipated withdrawal requests from customers.

  • Gabiel Condo

    I agree. Ain’t going to happen. Too big and much too powerful . The Fed is the essence of debt slavery around the world. An army only as big as God can change it. And that will only occur during the tribulation. Revelation chapter 6 talks about hyperinflation. So we’re stuck with them until the end of time.

    • socalbeachdude

      Laughably false. As to inflation in an economic sense that term wasn’t even created until the 1930s.

  • GSOB

    By controlling Congress,
    the FED has been able to control the
    nominating conventions of both political parties. (Not Russia)
    It has been able to hand pick the presidential nominees so that no matter which party wins, their nominee for President is under definite obligations to the FED…

    “We The people…..”

    • socalbeachdude

      The Federal Reserve does not control Congress at all but rather is CONTROLLED BY CONGRESS as is clearly specified in the Federal Reserve Act and I would suggest you read and attempt to comprehend the Federal Reserve Act at:

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

      • GSOB

        Yeah right….they are in it together….

  • LIZ THE SHIZ

    be careful what you wish for just ask JFK !!

    • socalbeachdude

      What does JFK have to do with this topic? Nothing.

      • PocoPete

        Read the article.

        • socalbeachdude

          The article is totally incorrect in that regard.

          • PocoPete

            The article is very accurate with respect to the Kennedy issue.

          • socalbeachdude

            Absolutely false. There was no “Kennedy issue” with banking whatsoever involved with his death in November 1963.

          • PocoPete

            I am sure that is what the Deep State wants people to believe.

          • socalbeachdude

            What utter nonsense. JFK was NOT going to end the Fed nor was his Executive Order 11110 hurting the Bankers. In fact, it was helping the Bankers because it ended the use of silver as a medium of exchange.

            http://en.wikipedia.org/wiki/Executive_Order_11110

          • PocoPete

            The Kennedy involvement is plain to see.

          • socalbeachdude

            Absolutely false.

  • LIZ THE SHIZ

    socalledbeach, lives to see him/herself comment in all time zones but you can’t fault a multi named troll for trying to make a living at 1penny pre comment

    • socalbeachdude

      Laughably false nonsense from you again.

  • PocoPete

    Very good article.

  • Scott Beach

    99.997 percent loss of value

    The silver and copper in a Morgan dollar that was minted in 1913 is today worth $16.58.

    The copper and nickel and zinc and manganese in a Sacagawea dollar that was minted in 2017 is today worth $0.04.

    The U.S. dollar has, by debasement, lost 99.997 percent of its value since the Federal Reserve System was founded in 1913.

    Debasement means lowering the value of coinage by reducing the content of precious metals.

    • 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

      • Scott Beach

        The Bureau of Labor Statistics “CPI Inflation Calculator” shows that $1 in 1913 had the same buying power as $24.95 in 2017. Based on those numbers, the U.S. Dollar has, by monetary inflation, lost about 96 percent of its value.

        Please note that there is a significant difference between “debasement” and “monetary inflation”.

        • socalbeachdude

          And their calculations do not take into account at all the VAST INCREASE INCOMES during that time period at all, do they? The prices of many goods – particularly electronics and computers – have FALLEN DRAMATICALLY over the past 100 years and other goods such as eggs have barely changed in price.

          • PocoPete

            Not a good situation for pensioners on a fixed income.

          • socalbeachdude

            There is NO INFLATION at all these days which is good for pensioners on a fixed income these days.

          • PocoPete

            The government has a vested interest in underestimating inflation. The way that the government calculates inflation has changed more than 20 times since 1978. The government is constantly looking for ways that it can make inflation appear to be even lower. If inflation was measured the same way that it was back in 1990, the inflation rate would be about 6 percent right now. If inflation was measured the same way that it was back in 1980, the inflation rate would be about 10 percent right now. But instead, we are expected to believe that the inflation rate is hovering around 2 percent (CPI-U according to the Bureau of Labor Statistics).

          • socalbeachdude

            So what? The bottom line is that there is PRACTICALLY NO INFLATION AT ALL THESE DAYS and hasn’t been for years.

  • socalbeachdude

    There is nothing “flawed” about the Federal Reserve management of the U&S dollar at all and the US dollar has become – by far – the best managed and most important currency in the world. The US dollar is used in more than 83% of all global transactions and is now right around 100 on the DXY and headed much higher both in terms of purchasing power against commodities and in exchange value against other currencies. The only real question is how much higher the US dollar will move in the coming years on the DXY.

    • Eileen Kuch

      The so-called “Federal Reserve” is neither Federal nor a reserve, it’s a private central bank owned by the Rothschild Cabal based in the City of London. The US Constitution’s clear regarding the coining/printing of money, and that’s NOT the Rothschild Central Bank. Only Congress, through the Treasury has the authority to coin and print money. Period. This entity was illegally set up during the Christmas recess of both Houses of Congress; thus, there was NO quorum when the handful of both Senators and Congressmen to pass legislation establishing the Rothschild Central Bank .. And, as a result, would nullify this legislation. One thing for sure, there must be a quorum in both Houses before a vote can be cast; otherwise, the legislation’s automatically annulled.

      • socalbeachdude

        Your utter ignorance, delusions, and stupidity are far beyond mind boggling. The Rothschild family has nothing whatsoever to do with the Federal Reserve. The Federal Reserve is not owned by anybody and is a creation of the US Congress through the Federal Reserve Act. Annually – as it has done for 104 years – the Federal Reserve rebates 94% of its profits to the US Treasury.

        The Federal Reserve is run by its BOARD OF GOVERNORS (BOG) and the FOMC (Federal Open Market Committee) which consists of its 7 member BOG and 5 regional bank presidents from among the 12 regional bank presidents. The Federal Reserve has nothing whatsoever to do with Europe or European Banks which are mostly under the auspices of the ECB (European Central Bank).

        I would suggest you learn about the Federal Reserve at:

        http://www.FederalReserve.gov

  • socalbeachdude

    Central banks have reduced their gold holdings over the past 10 years by around 10% from around 35,000 metric tonnes to currently only about 32,000 metric tonnes.

    • PocoPete

      2016 was the 7th consecutive year of net buying of gold by central banks. Central banks bought 576.5t of gold on a net basis in 2015 and 383.6t of gold on a net basis in 2016.

      • socalbeachdude

        That doesn’t change the fact that central banks have REDUCED THEIR GOLD HOLDINGS BY 10% over the past 10 years and that they only own about 32,000 metric tonnes of the stuff which is worth less than $1.4 trillion even at current absurdly inflated valuations at a time when the global economy is now a $72 trillion a year economy.

        • PocoPete

          That doesn’t change the fact that central banks have increased their gold holdings over the past 7 years.

          • socalbeachdude

            So what? The total amount of gold that all central banks in the world own is only equivalent to about the amount of printed US currency which is around $1.3 trillion and they own a PLUNGING ASSET that will fall in price significantly as gold reverts towards and to its mean of $456 per ounce. Bad move by central banks buying any of that overpriced stuff.

          • PocoPete

            So what if the amount of gold owned by central banks is only around $1.3 trillion?

            As stated by Alan Greenspan in 1966, gold is the only thing that fulfills all the requirements of money: It is scarce, it cannot be fabricated or produced in large quantities, it is durable, it is homogenous and divisible, and it is widely acceptable as money. Obviously, printed money can’t meet these criteria. Only gold can.

          • socalbeachdude

            First, the tiny little bit of value that gold has relative to the world’s economy and assets should clearly inform you how TOTALLY INCAPABLE IT IS OF SERVING IN ANY FINANCIAL CAPACITY AT ALL.

            Second, 1966 was more than 50 years ago and most all transactions today 51 years later are all done ELECTRONICALLY which renders some silly metal like gold TOTALLY OBSOLETE. Moreover, its very scarcity RULES IT OUT ENTIRELY as having any financial relevance whatsoever. All of the 180,000 or so metric tonnes of gold ever mined can fit in two Olympic size swimming pools.

            There are now more than 7.5 billion people in the world and even if all of the gold that existed were divided up equally among them it would work out to less $100 (or about 1/12 ounce) per person even at today’s preposterously elevated values for the stuff. The global economy is a $72 trillion a year financial system and total global assets may be as high as $800 trillion. Gold is just a tiny little speck of dust relative to the world’s economies and assets.

            Further, about 70% of the world’s gold is in the form of privately owned JEWELRY widely dispersed among the world’s 7.5 billion people making the amount that could even theoretically be used as bullion in any financial matters so tiny as to be utterly irrelevant.

          • PocoPete

            All fiat money systems in history have failed.

            “Gold Is Money, Everything Else Is Credit” – JP Morgan.

          • socalbeachdude

            That quote is as obsolete as JP Morgan is dead and was made over 100 years ago and gold has NO FINANCIAL RELEVANCE whatsoever in today’s electronic monetary systems in the world today in 2017 and is just a little niche fungible collectible commodity subject to a 28% capital gains tax rate in the USA on any gains. As to losses you can only deduct a maximum of $3,500 per year on capital losses if you speculate on that plunging stuff and lose money.

          • PocoPete

            Gold retains its value not only in times of financial uncertainty, but in times of geopolitical uncertainty. It is often called the “crisis commodity,” because people flee to its relative safety when world tensions rise; during such times, it often outperforms other investments.

          • socalbeachdude

            Laughably false. Gold has plunged more than $700 per ounce since its manic speculative high of $1927 per ounce reached on September 5, 2011 which is a LOSS OF 36% in value. Hellllooooo?

  • socalbeachdude

    They don’t. Central bank holdings of gold have declined about 10% over the past 10 years from around 35,000 metric tonnes to presently around 32,000 metric tonnes.

  • socalbeachdude

    They don’t and total central bank holdings of gold are down around 10% over the past 10 years from around 35,000 metric tonnes to currently around 32,000 metric tonnes.

    There is certainly nothing evenly slightly “criminal” in regards to the Federal Reserve.

    • Paul Anders

      so they purposely own 32,000 metric tonnes of a niche commodity such as gold? Doesn’t sound to smart to me…

    • PocoPete

      2016 was the 7th consecutive year of net buying of gold by central banks. Central banks bought 576.5 tons of gold on a net basis in 2015 and 383.6 tons of gold on a net basis in 2016.

      • socalbeachdude

        So what? Central banks still own 10% less gold than they did 10 years ago and their current total holdings are only about 32,000 metric tonnes which is worth less than $1.4 trillion even at current laughably inflated values for the stuff.

  • socalbeachdude

    No, they do not.

  • socalbeachdude

    As I have told you many times, they DON’T. Central banks have REDUCED THEIR GOLD HOLDINGS BY ABOUT 10% OVER THE PAST 10 YEARS from around 35,000 metric tonnes of the stuff to now only about 32,00 metric tonnes of the stuff.

  • Scott Beach

    President Trump could eliminate the Federal Reserve System by
    (1) Stopping the printing of Federal Reserve Notes,
    (2) Establishing a private bank in the District of Columbia,
    (3) Depositing three $1 trillion platinum coins into an account at the new bank.

    The bank could then begin issuing currency notes on the credit of the bank (and pay the 10 percent tax on such notes). The notes could be loaned to state and municipal governments so that they can repair existing infrastructure and build new infrastructure.

    The bank might also begin buying up all existing Federal Reserve Notes. And that would put the banksters out of business!

    • socalbeachdude

      What utter nonsense.

      • Scott Beach

        I have taken notice of the fact that you do not dispute the legality of my suggestion for putting the banksters out of business.

        • socalbeachdude

          Huh? Your “suggestions” are all so LAUGHABLY ABSURD on their face that there would be no chance whatsoever of Congress even considering such utter BS.

          • Scott Beach

            Congress does not have to be involved. The law authorizes platinum coins of ANY denomination. Private banks can issue currency notes if they pay the 10 percent tax. President Trump can stop the printing of new Federal Reserve Notes. Its all totally legal and it would work spectacularly well. END THE FED!

          • socalbeachdude

            The laws that exist obviously do no such thing at all as your falsely assert. NO so-called “PRIVATE BANK” HAS ANY AUTHORIZATION WHATSOEVER TO ISSUE ANY CURRENCY. Donald Trump has NO AUTHORITY WHATSOEVER regarding the Federal Reserve and not a thing that you asserted has any legality whatsoever. Not to mention that it has no useful purpose at all.

          • Scott Beach

            The District of Columbia “issues charters for depository institutions”. Private banks can issue currency notes (but do not currently do so because of the onerous 10 tax on such notes). Bloomberg and Forbes and Slate have all written about the fact that trillion-dollar platinum coins are legal. You should make efforts to inform yourself about these matters before trying to tell us that they cannot be done.

          • socalbeachdude

            Once again, no “private banks” can issue any sort of currency at all. The notion of a $1 trillion coin is beyond laughable and would be ridiculed endlessly however legal it may be. As to platinum it used to carry a 50% or so premium to gold but now trades for substantially less than gold on the spot markets, so why would anyone use platinum to make such a BOGUS COIN?

  • billtheguy

    WAIT FOR IT…..Black! socalbeachdude is going to say white! JUST like my ex-wife! tootles!!!!!!!!

    • socalbeachdude

      Huh?

    • SnodtBlossom

      You showed her.. Now she’ll have to find another SevenEleven worker to hook up with.

  • socalbeachdude

    Why did Trump flip flop on Yellen? She may be the dove he needs, analysts say

    http://www.marketwatch.com/story/why-did-trump-flip-flop-on-yellen-she-may-be-the-dove-he-needs-analysts-say-2017-04-12

    Trump says Yellen is ‘not toast’ as he says dollar is getting too strong

    http://www.marketwatch.com/story/trump-says-yellen-is-not-toast-as-he-says-dollar-is-getting-too-strong-2017-04-12

  • socalbeachdude

    No modern major country can exist without a central bank to handle clearance of interbank transactions, and nearly all countries in the world today have a central bank for just such purposes. The central bank of central banks is the BIS (Bank for International Settlement) where you can learn about all of the central banks of the world.

    http://www.BIS.org

    • Sam Nelson

      “nearly all countries in the world today have a central bank” yeah, the same one we do. Saying Rothschild has nothing to do with the Federal Reserve exposed you, go away your silliness is annoying.

      • socalbeachdude

        Once again, the Rothschild family has NOTHING WHATSOEVER to do with the Federal Reserve.

  • DeathtoFiat

    Great article, hope it goes viral. Many people live their entire lives not even knowing what a central bank is, that their country has one, or what it all means.

  • socalbeachdude

    “Creature” book is the VERY EPITOME OF DISINFORMATION

    That “creature” book was originally written by G. Edwards Griffin in 1994 and is nothing but a piece of bogus and blatantly false propaganda garbage and little else. Its absurd assertions have been thorough and totally debunked and what is left of the 1% of factoids remaining there are of no significance whatsoever and the entire point of the book is to promote fantastical and inane and false conspiracy theories about the Federal Reserve System.

    The Story Behind ‘The Creature From Jekyll Island,’ the Anti-Fed Conspiracy Theory Bible

    The Fed was secretly created to enact vicious cycles of genocide. Or so this popular book would have you believe.

    It’s the kind of conspiracy theory so all-encompassing that it explains the very roots of all modern American wars, depression, economic boom, and (most importantly!) the darkest, best-kept secrets of international banking.

    Typically, the Federal Reserve is a government entity that frustrated high schoolers in America are forced to learn about before entering adulthood and forgetting exactly what it is or why it exists. The Fed is our central banking system that was created at the tail end of 1913 as a response to a string of financial crises. It is responsible for implementing the United States’s monetary policy, and is routinely and aptly described as “boring.”

    It’s all fairly mundane and unsexy (though hugely consequential) stuff. The Fed doesn’t bomb anything, invade anything, or even tax anything.

    The fatal flaw in Griffin’s analysis and breathless fear-mongering is, as is the case with so many prevalent conspiracy theories, that it takes a grain of truth and turns it into a salt mine of utterly laughable BS.

    http://www.thedailybeast.com/articles/2015/11/26/the-story-behind-the-creature-from-jekyll-island-the-anti-fed-conspiracy-theory-bible.html

    The US government is in debt to the tune of nearly $20 trillion because CONGRESS is grossly profligate and financially irresponsible and that has nothing to do with the Federal Reserve, its operations, its policies, or its structure.

    • Egore

      “FACT” In 1967, the CIA Created the Label “Conspiracy Theorists” … to Attack Anyone Who Challenges the “Official” Narrative. “FACT”

      • socalbeachdude

        OK, so what? What does this have to do with the Federal Reserve?

  • socalbeachdude

    The Federal Reserve was not designed to “create debt” at all, but rather to act as a LENDER OF LAST RESORT to banks needing liquidity and to SMOOTH OUT ECONOMIC CYCLES which are an inevitable part of any economy. It was created in response to the PANIC OF 1907 which was the most severe downturn ever faced up to that time in the US financial system.

    • wlawlor

      Jekyll Island , the source of our currency problems . A Rothschild creation passed during Christmas break by a handful of corrupt congressmen.

      • socalbeachdude

        Laughably false. The wonderful and fine Rothschild family has nothing whatsoever to do with our superb Federal Reserve.

        • wlawlor

          laughably idiotic, see Warburg, Red Shield minion

          • socalbeachdude

            Oh, get a clue, dude.

  • socalbeachdude

    The Federal Reserve is ENTIRELY A CREATION OF CONGRESS and was designed as a quasi-public-private entity that would rebate 94% of its annual profits each year to the US Treasury.

    Who owns the Federal Reserve?

    The Federal Reserve System is not “owned” by anyone. Although parts of the Federal Reserve System share some characteristics with private-sector entities, the Federal Reserve was established to serve the public interest.

    The Federal Reserve System is not “owned” by anyone. Although parts of the Federal Reserve System share some characteristics with private-sector entities, the Federal Reserve was established to serve the public interest.

    The Federal Reserve derives its authority from the Congress, which created the System in 1913 with the enactment of the Federal Reserve Act. This central banking “system” has three important features: (1) a central governing board–the Federal Reserve Board of Governors; (2) a decentralized operating structure of 12 Federal Reserve Banks; and (3) a blend of public and private characteristics.

    The Board of Governors in Washington, D.C., is an agency of the federal government. The Board–appointed by the President and confirmed by the Senate–provides general guidance for the Federal Reserve System and oversees the 12 Reserve Banks. The Board reports to and is directly accountable to the Congress but, unlike many other public agencies, it is not funded by congressional appropriations. In addition, though the Congress sets the goals for monetary policy, decisions of the Board–and the Fed’s monetary policy-setting body, the Federal Open Market Committe–about how to reach those goals do not require approval by the President or anyone else in the executive or legislative branches of government.

    Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District’s Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System.

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

  • socalbeachdude

    Does the Federal Reserve ever get audited?

    Yes, the Board of Governors, the 12 Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review:

    The Government Accountability Office (GAO) conducts numerous reviews of Federal Reserve activities. As of the end of 2015, more than 100 audits have been conducted since the financial crisis.
    The Board’s financial statements, and its compliance with laws and regulations affecting those statements, are audited annually by an outside auditor retained by the independent Office of Inspector General (OIG). The results of this independent audit are released to the Congress and the public.
    The Board’s OIG conducts independent audits, evaluations, and criminal investigations relating to the programs and operations of the Board, as well as those Board functions delegated to the Reserve Banks. Completed OIG reports are publicly available as well as a dynamic Work Plan that lists all of the OIG’s ongoing and planned audit and evaluation work. In addition, completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board’s Annual Report.
    The financial statements of the Reserve Banks are also audited annually by an independent outside auditor.
    Each week, the Federal Reserve publishes its balance sheet and charts of recent balance sheet trends, as well as provides an interactive guide to the Fed’s balance sheet. The balance sheet is included in the Federal Reserve’s H.4.1 statistical release, “Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks.”

    In addition, the Reserve Banks are subject to annual examination by the Board. The Board’s financial statements and the combined financial statements for the Reserve Banks are published in the Board’s Annual Report.

    See our audit page for more information on all of the above audits and more information on the accounting, financial reporting, and internal controls of the Federal Reserve Board and Federal Reserve Banks.

    https://www.federalreserve.gov/faqs/about_12784.htm

  • socalbeachdude

    Yellen: Partisan politics plays ‘no role’ in Fed decisions

    WASHINGTON—Federal Reserve Chairwoman Janet Yellen on Wednesday dismissed suggestions from Republican presidential nominee Donald Trump that the Fed is playing politics with its interest-rate decisions.

    Yellen, referring to prepared notes and not mentioning Trump by name, said the Fed doesn’t discuss politics at its policy meetings, nor does it take politics into account. Its decision to hold rates steady on Wednesday was based on economic factors, not political ones, she said.

    “I can say, emphatically that partisan politics plays no role in our decisions about the appropriate stance of monetary policy,” she said. “We are trying to decide what the best policy is to foster price stability and maximum employment and to manage the variety of risks that we see is affecting the outlook.”

    http://www.marketwatch.com/story/yellen-partisan-politics-plays-no-role-in-fed-decisions-2016-09-21?mod=MW_story_latest_news

  • socalbeachdude

    The Federal Reserve DOES NOT MONETIZE THE US GOVERNMENT DEBT AT ALL and only owns about 14% of the outstanding US Treasuries issued by the US government which now total around $20 trillion, and the Federal Reserve only buys about 8% of the newly issued US Treasuries of around $67 trillion every year in order to replaced matured US Treasuries.

    The Federal Reserve certainly does NOT do the following: “When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars. Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve. The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.”

    Around 86% of all outstanding US Treasuries are owned by PARTIES OTHER THAN THE FEDERAL RESERVE. The US government itself is the single largest entity owner of US Treasuries with holdings in excess of $5.5 trillion through its various agencies with the largest holdings being owned by the Social Security and Medicare Trust funds which are REQUIRED BY LAW TO INVEST ONLY IN US TREASURIES.

    • Sam Nelson

      What this dribble says: the nation owes the less than ten Banker’s families (only one of these families is “American”) trillions of dollars worth of our productivity and wealth, for all practical purposes forever, and can only participate in ventures that profit the Federal Reserve, i.e., these few Banker’s families. Pay up or we send in the US Army. This, has to stop.

      • socalbeachdude

        What utter nonsense. Are you really that mindlessly clueless? Seriously, dude?

        • Sam Nelson

          Saying words that hurt the person, calling names, what has this to do with proving ones assertions? Let’s not argue, I have no better solution for the world’s financing than the Rothschild’s, I just think we should stand up for a better deal, take back our political as well as our justice system(s) for starters.

          • socalbeachdude

            Your ignorance is far beyond absolutely mind boggling and I would suggest you learn about the Federal Reserve at:

            http://www.FederalReserve.gov

  • socalbeachdude

    The Federal Reserve System is owned by its 12 Regional banks of which its member banks are the only shareholders and those shareholders comprise around 6,200 member banks which receive a 6% annual dividend on their shares from the Federal Reserve.

    The other 94% of the annual profits of the Federal Reserve is rebated to the US Treasury for the benefit of its taxpayers which makes the $2.5 trillion out of the total of around $20 trillion of US Treasuries (government debt) TOTALLY INTEREST FREE to the US Treasury and its taxpayers.

  • socalbeachdude

    Prior to the creation of the Federal Reserve there were many very extreme boom and bust cycles in the US with the most catastrophic being the ones during the period the so-called Civil War and the Panic of 1907. Those boom and bust cycles have been significantly less extreme during the 104 years during which the Federal Reserve has operated.

    • Sam Nelson

      Wow, this “significantly less extreme” statement is ridiculous – in the first place the “extreme booms and busts” were caused by the Banker’s- as was the “Civil War” and the “Panic of 1907” (the term Civil War is not accurate, it was actually a ‘war between the states,’ a war like the war involving England and France was, a war to bring about an economic change, a drastic change- benefiting a few men only -in the economy of the nations) -intending to make the US take on a privately owned bank, again and again, which it did. “The Depression” during which millions of people starved was not extreme? This nation owes twenty trillion dollars worth of its wealth, that is not extreme? What is your purpose here? I will not spend all my time here rebutting your foolishness, just please tell me of one other outfit in the world that takes in every year six percent profit from tens of trillions of dollars worth of transactions, transactions that cost the owner’s of the game nothing at all, not a dollar is spent by them in production, product, wages or anything, flat clear profit, a scam, a flat out theft of a whole peoples production and the production of their lands and purposes. These Banker’s did not even put up the few millions they promised to start the game, they and it has been a lie and a criminal enterprise from the beginning. You know the truth as well I do, the great most of all the money made by the playing of this game, by all the nations involved, the vast most of the wealth that changes hand’s is held in the hand’s of four but mostly one, shall we say family of men, that is the Rothschild’s, the Rockefeller’s, the Queen of England, and the Vatican. Humanity has every right and responsibility to call these (you say 6200 member banks) to accounts, to an accounting and a fairer distribution to US all.

      • socalbeachdude

        So laughably false and utterly bogus as to be utterly beyond mind boggling.

        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 2032. 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.

  • socalbeachdude

    There was NO DIFFERENCE WHATSOEVER in actual function between the red seal United States Notes and the green seal Federal Reserve Notes. The RED SEAL on the United States Notes versions of US Dollars was very briefly used in the 1960s before being totally withdrawn but that was never used on $1 US dollar bills but rather only on $5 bills and higher.

  • socalbeachdude

    The Federal Reserve DOES NOT OWE A SINGLE PENNY OF THE US GOVERNMENT DEBT.

    The situation is exactly the opposite where the Federal Reserve OWNS ABOUT $2.5 TRILLION OF THE US GOVERNMENT DEBT which is denominated in US TREASURIES for which there are a total of more than $19.5 trillion outstanding.

    The Federal Reserve amount of that ownership is around 12.8% and the interest on those to the US government is ESSENTIALLY INTEREST FREE as the Federal Reserve rebates more than 94% of its annual profits each year to the US Treasury making it the single largest entity contributor to US government revenues which offsets the federal debt by that much year year.

    The Federal Reserve is a separate and distinct entity apart from the federal government and US Treasury and is a quasi-public-private institution established and controlled by Congress and is not part of the federal government and its US Treasury.

  • socalbeachdude

    US Treasuries consist of bills, bonds, notes, and TIPS are sold at public auctions. The bidders are comprised of a vast group of bidders and each year more than $7 trillion of newly issued US Treasuries are sold at auctions. The winning bidders – like at all auctions – are the HIGHEST BIDDERS for these US Treasuries.

    Prices on US Treasuries are INVERSE TO YIELDS. The higher the bid for the US Treasuries the lower the yields (interest rates) on those US Treasuries. Typically, there are 3 or more bids for each US Treasury available which is the key reason why yields (interest rates) are so low on US Treasuries as demand is near all time record highs to purchase US Treasuries.

    US Treasuries are considered to be CASH EQUIVALENTS and are considered to be the safest and most risk-free investment in the world.

    About $6 trillion of the proceeds from the sale of newly issued US Treasuries each year goes to PAY MATURED US TREASURIES IN FULL TO THEIR OWNERS and the other $1 trillion or so is used to fund additional US government federal debt.

    For more information on US Treasuries, see:

    http://www.TreasuryDirect.gov

    • Sam Nelson

      The US buys from the Banker’s its own debt meaning the US, us, we owe them, a few men from a foreign land, everything we are, everything we have made and think we own, this, is the long and short of it. We, the people, the land and the purpose, that is US and us, we owe these few men from another country, basically everything we have produced since the early 1900’s, everything our children and their children can ever produce, forever. There is never any wealth produced that can pay off THE INTEREST, meaning, it is a slide that never ends, back and forth, back and forth, until we collapse from poverty. This is the game, all the pretty language, just lies…

      • socalbeachdude

        What utterly false and bogus nonsense.

  • Sam Nelson

    Before anything we must have an accounting of the wealth the Federal Reserve has stolen from US. Allowing the Federal Reserve Banker’s to pocket the many hundreds of trillions of dollars worth of wealth they have taken from us through theft and trickery would be insane and probably fatal to US as a nation. Fatal to the world as we know it. Any politician insisting we just take the beating and go from there is a conspirator against US and a thief working for them ( I leave it to you to decide who them is). If allowed to own the wealth stolen from the world the Federal Reserve would be wealthy to a point that it could challenge any nation on Earth in terms of military, political intrigue, resources. This has a Mongolian versus Roman feel to it and should scare the crap out of US. Today they steal from US, we never want to have to pay them to avoid them turning on US, making war against US (tribute). We have a deadly trap that we must escape, the only way to avoid falling into it is to weaken the Federal Reserve (Owner’s) financially and considerably. Considerably, as in trillions to billions, as in individually, millions. Leaving a single cell of the cancer in the body leaves the door open for a devastating infection in the future. First step is taking control of the United Nations so that any Army the Fed’s owner’s might raise up there is unable or unwilling to rise up against US.

    • socalbeachdude

      Laughably false. The Federal Reserve certainly has not “stolen” any “wealth” from anyone and your assertions are totally false and utterly bogus – not to mention absurd.

  • socalbeachdude

    Oh, please, what stupidity.

  • socalbeachdude

    The Rothschild family has nothing to do with the Federal Reserve at all. Get a clue/

    • Trump 2020

      ROTFLMAO!!!!

      • socalbeachdude

        Huh?

  • socalbeachdude

    What utter nonsense. The Federal Reserve is run by its BOARD OF GOVERNORS (BOG) and the FOMC (Federal Open Market Committee) which consists of its 7 member BOG and 5 regional bank presidents from among the 12 regional bank presidents. The Federal Reserve has nothing whatsoever to do with Europe or European Banks which are mostly under the auspices of the ECB (European Central Bank). Get a clue.

  • socalbeachdude

    Totally false and utterly bogus assertions.

  • socalbeachdude

    It is YOU who has no comprehension as to what RESERVE REQUIREMENTS mean in the banking system and the fact that no bank may ever lend out more than 90% of its customers deposits under the current Federal Reserve rules on RESERVE REQUIREMENTS in the US banking system.

  • socalbeachdude

    What on earth does that have to do with the Federal Reserve? Nothing, of course.

  • PocoPete

    Very informative website! Thanks for pointing it out XSANDIEGOCA.

    • XSANDIEGOCA

      You are welcome.

  • socalbeachdude

    None of them ever are the fault of the Federal Reserve but rather the fault of MANIC SPECULATORS who bid assets up to absurd levels from which they inevitably crash which was exactly the case after the 1920s with the so-called Great Depression.

    • Stuey

      Never the fault of the Fed? The Federal Reserve has ADMITTED they screwed up on how they responded to the beginning of the depression. Maybe they didn’t cause all of it but they certainly made it worse, they have admitted that!!

      • socalbeachdude

        Absolutely false and very stupid assertions.

    • wlawlor

      Greenspan and his fellow crooks printed $$ ad nauseum, then feigned concern when the bubble they created caused so much economic hardship.You are a fraud.

      • socalbeachdude

        Absolutely false and extremely stupid assertions from you. How can you possibly be so utterly clueless?

        • wlawlor

          you fool no one, troll. Only the uninformed.

          • socalbeachdude

            Your ignorance is beyond mind boggling.

  • Rog

    socalbeachdude is a shill for the Fed. He appears whenever there is a discussion about the central bank. His facts come straight from the beast itself and are true within the parameters of Fed definitions. What he doesn’t say is that the existence of the Fed depends on the principle of law merchant where everything, including you, is a legal fiction. It is a system of imitation, delusion, deceit and make believe. It is the product of Satan, whose only power on earth is to imitate the works of the Maker. So the question is: who would defend the machinations of Satan?

    • socalbeachdude

      What extremely stupid and bogus nonsense. Yes, of course, the information I cite comes from the impeccably correct web site of the Federal Reserve. Your term “legal fiction” is in fact LEGAL FACT as the Federal Reserve was created by an ACT OF CONGRESS CALLED THE FEDERAL RESERVE ACT which is the law of the USA .

      The excellent Federal Reserve web site is impeccably accurate in every respect and I would suggest you go read it and learn about the Federal Reserve.

      http://www.FederalReserve.gov

  • Sam Nelson

    The above is just BS. Like a cat trying to cover up its mess, just adds to the stink.

    • socalbeachdude

      Absolutely false. What is stated above and linked to clear definitive sources is 100% true, accurate, and fully correct.

  • socalbeachdude

    What utterly false inanity and stupidity by some clueless dolts. The only reason anyone would even use the term “fractional reserve banking” is due to RESERVE REQUIREMENTS which are the amount of customer deposits which a bank must retain on hand in the form of cash or cash equivalents. In the US for most banks RESERVE REQUIREMENTS are currently 10% of customer deposits and no bank may ever lend out more than 90% of customer deposits.

    • jox

      I cannot waste my time with an ignorant that doesn’t want to learn even when given the info.

      • socalbeachdude

        You’re the one who is IGNORANT as to how banks operate. Show me one single bank in the USA who has ever loaned out more than 90% of its customer deposits. There is no such bank that has ever done that. The fact of the matter is that banks now have only 67% of their customer deposits loaned out which is near a record LOW.

        Moreover, banks now have record high levels in RESERVES in their accounts inside the Federal Reserve where they have more than $1.3 trillion in their required primary reserves accounts and more than $2.5 trillion in their EXCESS RESERVES accounts.

  • Sink Chicken

    Nationalize the FED. All assets would become the property of USA citizens and not private bankers.

    • socalbeachdude

      What utter nonsense. The Federal Reserve already rebates 94% of its profits each year to the US Treasury and is for all practical purposes “nationalized.” The Federal Reserve owns practically NOTHING in the way of capital / equi9ty (net assets) and has a leverage ratio of around 80:1 as its capital / equity is less than $60 trillion to support its $4.4 trillion balance sheet which is now in the process of being significantly reduced.

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