WealthBoy: Media Does not Understand the Federal Reserve System
MD
· 1 year ago
I don't disagree with your overarching thesis, that the media does not understand the Fed and has often mis-reported exactly what is going on, but I do disagree with your analysis of the Fed's actions as not costing tax payers because there is no tax related revenue on their balance sheets.
Whenever the Fed creates money, or goes further into debt it is essentially "taxing" the American people, and anyone else with significant reserves in USD via their inflation of the monetary supply. Unfortunately for tax payers, since any individual does not hold much, they do not get the same sweetheart deals issued to places like China and Saudi Arabia. We "borrow" the money from them so that as we pay back our debt, they get a nice return and avoid losses from being "taxed" by the inflationary maneuver.
The taxpayer is put at risk because of the manipulation of the intrinsic value of our currency. The Fed's debt is America's debt. When we need to pay it down, it will be taxpayer dollars that do so.
WealthBoy
· 1 year ago
You do make an interesting point in your analogy of inflation as a tax. It certainly has been evident for some time that the Fed has been quite intent on depreciating the dollar with its monetary policy.
Fred Flange
· 1 year ago
Well perhaps their use of English is a bit better than yours.
viz. "Unfortunately I do not think that such errant reporting is not limited to foreign reporters"
Double negative - or perhaps that should be treble negative when comment itself is taken into account
Best
Fred F
WealthBoy
· 1 year ago
Perhaps it is. Thanks for the correction and English lesson, I've updated the post accordingly.
uh
· 1 year ago
It's a quasi-government organization. You cannot really talk about the Federal Reserve without talking about the United States government, it's our central bank for god's sake. If you don't understand how the two are inextricably linked you don't know how the fed, or central banking in general, functions.
After reading your post, I am fairly certain that you don't fully understand how it works either.
WealthBoy
· 1 year ago
Could you please elaborate on what it is you believe I misstated?
amy
· 1 year ago
I just followed your link to the main page of the bill, and it says the United States Treasury, not the Federal Reserve Bank. It is the taxpayers, not the Fed.
WealthBoy
· 1 year ago
Yes, I am aware of this, it is exactly what my point was. The bill is a government sponsored plan. Because it has gotten so much coverage in the press, reporters are quick to mention the actions of the Federal Reserve as actions of the U.S. government.
Redditor
· 1 year ago
Sorry, but the "tax on the average Joe" is the decrease in the value of the dollar. If the fed increases the supply of money, the value drops, it's that simple...
WealthBoy
· 1 year ago
Yes, I believe that was the same point that MD was making. You may be correct and that might be exactly what the authors meant.
Matt Varney
· 1 year ago
If the Federal Reserve gave too many bad loans out though and was at risk at failing, don't you think the US government would intervene?
Po'Boy
· 1 year ago
Most fascinating is when the Federal Reserve buys US treasury bonds to finance government overspending. The Fed creates money to buy whatever bonds it decides to purchase. But then - what happens when taxpayers pay the Fed back? What happens to the interest?
My understanding is that when the Fed is paid back, any interest made is given to the US Treasury. (Wouldn't be fair for the Fed to keep interest on money it just created out of nothing). Also, keeps liquidity in the system, if the Fed was always paid back more than it created, the money supply would shrink. When the principle portion of the loan is paid back to the Fed, it is destroyed - or more likely, used to purchase more US government bonds.
Po'Boy
· 1 year ago
oops - meant to say "principAL portion of the loan is paid"
So on the one hand, if the Fed is creating and loaning money to banks, government, etc. it causes inflation and hurts those who hold US dollars. BUT the interest earned by the Fed is credited to the taxpayers.
If it is foreigners loaning money to banks or the government, it doesn't cause inflation, but, of course, the interest goes out of the country, so our supply of dollars here in the US shrinks as the supply of dollars outside the US grows.
Salih Eser
· 3 months ago
Hello AMERICA wake up FEDERAL RESERVE BANK is a PRIVATE bank and has branches all over the WORLD.Last $786billion scam is the biggest deception, if you ask hard question about this bank you will probably so pissed of even yourself be surprised.By the way i take my hat to the JUDGE involved with this crocks.
I strongly believe we need a federal reserve audit. The recent stock market action suggests to me the federal reserve is intervening in a free and open market. I believe the biggest beneficiary of this TRILLION DOLLAR stock market move in a couple of weeks was Goldman Sachs. Goldman Sachs sells derivatives in our equity markets its apparent that Goldman Sachs Has Total Control Over our stock market using the unlimited capital available from the federal reserve. I believe Goldman Sachs doesn't have the best interest of our markets. They are misusing the federal reserve to manipulate the stock market and making huge 100 BILLION DOLLAR profits THIS IS ILLEGAL people expect our government to obey the laws just like citizen. Also this manipulation without regards for cost continues to put our government and the people more and more in debt
JUST THE FACT GOLDMAN SACHS HAS HAD SUCH IMPOSSIBLE SUCCESS AT TRADING IS ALL THE PROOF OUR GOVERNMENT NEEDS TO KNOW TO PROVE MANIPULATION!!!!!!
Imagine controlling the Federal Reserve portfolio of commodities and equities. TO DO WITH AS YOU PLEASE!!!!!!!
MihchaelC
· 1 week ago
How many private citizens who have claimed bankruptcy in the last 10 years could have used a personal stimulant package image that all the citizens get a bail out, then they shp, spend money and stimulate more..
All Comments
Whenever the Fed creates money, or goes further into debt it is essentially "taxing" the American people, and anyone else with significant reserves in USD via their inflation of the monetary supply. Unfortunately for tax payers, since any individual does not hold much, they do not get the same sweetheart deals issued to places like China and Saudi Arabia. We "borrow" the money from them so that as we pay back our debt, they get a nice return and avoid losses from being "taxed" by the inflationary maneuver.
The taxpayer is put at risk because of the manipulation of the intrinsic value of our currency. The Fed's debt is America's debt. When we need to pay it down, it will be taxpayer dollars that do so.
viz. "Unfortunately I do not think that such errant reporting is not limited to foreign reporters"
Double negative - or perhaps that should be treble negative when comment itself is taken into account
Best
Fred F
http://en.wikipedia.org/wiki/Federal_Reserve_Sy...
My understanding is that when the Fed is paid back, any interest made is given to the US Treasury. (Wouldn't be fair for the Fed to keep interest on money it just created out of nothing). Also, keeps liquidity in the system, if the Fed was always paid back more than it created, the money supply would shrink. When the principle portion of the loan is paid back to the Fed, it is destroyed - or more likely, used to purchase more US government bonds.
So on the one hand, if the Fed is creating and loaning money to banks, government, etc. it causes inflation and hurts those who hold US dollars. BUT the interest earned by the Fed is credited to the taxpayers.
If it is foreigners loaning money to banks or the government, it doesn't cause inflation, but, of course, the interest goes out of the country, so our supply of dollars here in the US shrinks as the supply of dollars outside the US grows.
I strongly believe we need a federal reserve audit. The recent stock market action suggests to me the federal reserve is intervening in a free and open market. I believe the biggest beneficiary of this TRILLION DOLLAR stock market move in a couple of weeks was Goldman Sachs. Goldman Sachs sells derivatives in our equity markets its apparent that Goldman Sachs Has Total Control Over our stock market using the unlimited capital available from the federal reserve. I believe Goldman Sachs doesn't have the best interest of our markets. They are misusing the federal reserve to manipulate the stock market and making huge 100 BILLION DOLLAR profits THIS IS ILLEGAL people expect our government to obey the laws just like citizen. Also this manipulation without regards for cost continues to put our government and the people more and more in debt
JUST THE FACT GOLDMAN SACHS HAS HAD SUCH IMPOSSIBLE SUCCESS AT TRADING IS ALL THE PROOF OUR GOVERNMENT NEEDS TO KNOW TO PROVE MANIPULATION!!!!!!
AUDIT THE FEDERAL RESERVE
http://www.auditthefed.com/
Imagine controlling the Federal Reserve portfolio of commodities and equities. TO DO WITH AS YOU PLEASE!!!!!!!
Michael
http://www.nutritional-supplements-review.net