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ORIGINAL: Musicmystery

~FR~

Let's clarify one other persistent point.

The Fed is "a private bank" only in the strictest of interpretations. First, unlike any true private bank, it's purpose is not to earn profit, as it can simply create money, usually through open market operations, but also through printing currency (not the same as money). It's shareholders for each of the twelve districts are the national banks in that district (they are required to do so). Yet these shareholders don't run the Fed; instead, the Fed oversees their operations, sets reserve requirements, sets interest rates among them.

It is, in short, a federal agency. It operates independently, unlike other federal agencies. But to insist that it's some private institution reaping profits for investors is incorrect.

I hope that helps.

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ORIGINAL: Termyn8or

OK hunky, you borrowed ten grand to buy silver as a hedge against inflation, but silver has gone down. If you know about the fed you should know about the UCC. I am excercising my option to accelerate at will, and you must pay back the money now. You have five days to come up with it or you are in default. That means negative equity in your house and none of your cards work anymore.

Well that's what happens to the country if the fed is abolished. Like I said in a healthy economy with low debt and a decent sustainable GDP it would be a hard hit for the government to come up with that figurative ten grand. Right now there is no money in the mattress. The crops have died and the factory burned down.

T

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ORIGINAL: MrRodgers

quote:

ORIGINAL: Musicmystery

~FR~

Let's clarify one other persistent point.

The Fed is "a private bank" only in the strictest of interpretations. First, unlike any true private bank, it's purpose is not to earn profit, as it can simply create money, usually through open market operations, but also through printing currency (not the same as money). It's shareholders for each of the twelve districts are the national banks in that district (they are required to do so). Yet these shareholders don't run the Fed; instead, the Fed oversees their operations, sets reserve requirements, sets interest rates among them.

It is, in short, a federal agency. It operates independently, unlike other federal agencies. But to insist that it's some private institution reaping profits for investors is incorrect.

I hope that helps.

Sorry, it doesn't at all. Can't have it both ways...a federal bank that is 'independent.' Either it IS federal and under federal control OR it is private and does whatever it wants. Yes the fed IS private in every sense of the word...it is making a profit at the current federal funds rate lending us our currency through its member banks. It never prints (orders to treasury) currency anymore but instead has the federal power (again, in a private interest) to print up T-bills and issue them as collateral for borrowing their currency.

The fed sells (now gives) the T-bills to member banks upon which it earns interest while the taxpayer makes good on the 'T-paper.'

One former IRS agent and now financial and tax consultant has estimated that the fed is taking in $36 million/per HOUR in interest.

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ORIGINAL: pahunkboy

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ORIGINAL: MrRodgers

quote:

ORIGINAL: Musicmystery

~FR~

Let's clarify one other persistent point.

The Fed is "a private bank" only in the strictest of interpretations. First, unlike any true private bank, it's purpose is not to earn profit, as it can simply create money, usually through open market operations, but also through printing currency (not the same as money). It's shareholders for each of the twelve districts are the national banks in that district (they are required to do so). Yet these shareholders don't run the Fed; instead, the Fed oversees their operations, sets reserve requirements, sets interest rates among them.

It is, in short, a federal agency. It operates independently, unlike other federal agencies. But to insist that it's some private institution reaping profits for investors is incorrect.

I hope that helps.

Sorry, it doesn't at all. Can't have it both ways...a federal bank that is 'independent.' Either it IS federal and under federal control OR it is private and does whatever it wants. Yes the fed IS private in every sense of the word...it is making a profit at the current federal funds rate lending us our currency through its member banks. It never prints (orders to treasury) currency anymore but instead has the federal power (again, in a private interest) to print up T-bills and issue them as collateral for borrowing their currency.

The fed sells (now gives) the T-bills to member banks upon which it earns interest while the taxpayer makes good on the 'T-paper.'

One former IRS agent and now financial and tax consultant has estimated that the fed is taking in $36 million/per HOUR in interest.

keep in mind that places like liberty silver set up,  the feds come and kick the doors in a seize it all.  

why?


by their own admission, they are not capable of handling the money supply...and that is the fiat money.  just imagine how the gold in the vault was "handled".  that is why bernacki would not answer ron pauls question if he had ever thought of a gold based curecny. he cant think of that- because we do not have any!

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ORIGINAL: Termyn8or

MrR, I will not engage in an argument that we have a trillion in gold as I haven't looked into it. But I would like to say; does anyone realize what an infinitesimal drop in the bucket that is these days ?

It may seem like alot, but it's not.

T

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Since the mid 40's our currency has lost more than 90% of its purchasing power, or value, or its utility as a store for wealth.

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ORIGINAL: celticlord2112

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Since the mid 40's our currency has lost more than 90% of its purchasing power, or value, or its utility as a store for wealth.

When did currency ever have either value or utility as a store for wealth?

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in that case, I will buy all of your coins (quarters, dimes, 1/2 dollar and dollar) that are pre 1965.   Ill even give you 10% more then face, and I will pay shipping. 

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ORIGINAL: pahunkboy

this is what happens when too much currency is printed. THIS is our future.  5 minutes vid  reduced a vid to illustrate
http://www.youtube.com/watch?v=f6fJht5KVTw


JP MORGGAN has 93 trillion in dirivatives.

http://img293.imageshack.us/img293/8036/banksnb6.png

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one problem is that hardly anyone knows what the fed res is.

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These alarmist financial sites are PLAYING you (and certainly not just you) for their own gain.