Nations line up to bash our Fed's latest plan

[Darwin333]

Glenn Beck says its because the actual items cost more, not because of speculation. We should listen to him.

You go ahead and take your financial advice from Glenn Beck, I'll pass thank you.

 

[Darwin333]

My dad says $25,000 and he's not exactly broke so I trust his ideas about finance.

You and I usually agree but that is just insane and completely out of the realm of common sense.

If shit gets THAT bad lead will be much more valuable. Gold isn't edible, has relatively little industrial value, and at $25K you are much more likely to get dead than exchange it for something edible. The "Rambo" argument doesn't hold much weight with me either.

Besides, other countries still produce the majority of the worlds gold. Does anyone really want to put the value of our wealth in those countries hands? We would be better off using corn as a baseline. "Baseline" is as far as I am willing to go because to have a commodity backed currency is simply trading one master for another so I don't really give it much thought. I wouldn't mind debating a "mechanical" method for manipulating our currency but trading one master for another (many of whom are shithole countries) just doesn't sound like a good plan to me.

 

[Darwin333]

well, we're not printing money, we're buying debt. Big difference. If we kept buying debt more and more, they could argue we are printing.

They've got to understand that our country is dying because we're outsourcing so much production to China though.

In reality if our corporations reinvested all the profits they made locally, then we could continue trade with China no problem.

Exactly what are we buying debt with?

 

[Darwin333]

They buy the debt directly form the Treasury or from the public market. This removes that investment the public market and forces banks to buy other assets, forcing them to lend by proxy, dropping borrowing costs and spurring borrowing.

Any country crying foul over this is a fucking crock of shit. The US has been a whipping boy for them for decades now, they've dumped their cheap goods onto the US while erecting trade blockades for our own goods.

The two countries that have the least amount of say are China and Japan. Turn about is fair play.

While the real reason they are doing it is to cover the bad and outright fraudulent bets made by the industry you work in...

I could show you sworn testimony from peons like CEOs of major banks and such but I doubt that would sway your public opinion. However, when you go to sleep at night you know damn good and well that a ton of people should be in jail that are not. Even worse,
they got to keep their illegally obtained gains.

How are those commodity markets doing lately? Shouldn't have any effect at all on the working class, eh?

 

[IBMer]

My Glenn Beck references are tongue in cheek. As I start watching Fox News and Glenn Beck more and more, I see where half of the conservatives on this board get their "ideas".

 

[bamacre]

My Glenn Beck references are tongue in cheek. As I start watching Fox News and Glenn Beck more and more, I see where half of the conservatives on this board get their "ideas".

Beck's just pandering, as usual.

 

[nick1985]

Exactly what are we buying debt with?

...thats the problem.

 

[LumbergTech]

Exactly what are we buying debt with?

the souls of unborn children

 

[Zebo]

lol. There isn't a single justification for this.

I have 6 years of education in finance (MBA and my CFA charter) and 7 years of experience in the field. There isn't one single justification for it.

And Benny the B has PhD from Princeton and told us there was no housing bubble, that unemployment would not get above 8.5%, and that Quantitative Easing 1.0 would cause the unemployment rate to drop. He was wrong on all counts. Just sayin. Common sense is not that common.

 

[bamacre]

You go ahead and take your financial advice from Glenn Beck, I'll pass thank you.

:biggrin: :thumbsup:

 

[bamacre]

And Benny the B has PhD from Princeton and told us there was no housing bubble, that unemployment would not get above 8.5%, and that Quantitative Easing 1.0 would cause the unemployment rate to drop. He was wrong on all counts. Just sayin. Common sense is not that common.

Interesting read from Dallas Fed head

 

[Slew Foot]

Did these ratings agencies get bought by eBay?

aAAaaaaa+++++++ will loan again!!!!
Aaaaaaa+++++ good transaction
aaaA paid slowly

 

[zephyrprime]

How does the Fed buying Treasury bills put money into the economy? Are they buying existing bills form the public?

"When you or I write a check, there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money."

http://www.chrismartenson.com/crashcourse/chapter-8-fed-money-creation

 

[piasabird]

How does the fed pay interest to itself?