The Fed loans half trillion dollars to foreign banks

[LunarRay]

Originally posted by: Moonbeam
So what have we got here, a bunch of the usual fed reserve cooks trying to invent an issue that isn't there?

Well... not sure, Moonbeam... but I think the publication was instigated by the Right to depict the Congressman as a good reason to keep Congress out of the FED's business... :+)

 

[Moonbeam]

I heard that if the congress takes over the fed we are toast. It is a scary thought because I am well bread.

 

[JS80]

Originally posted by: Drakkon
It sounds like a reasonable practice but where did this money come from to swap with? The half trillion had to come from somewhere didn't it? Or did the fed just print it or made it so? Or do they make a deal with US banks to pull back US funds in exchange for European funds?

The Fed is where banks deposit their money. As you can imagine, the source is effectively infinite for practical purposes.

 

[Fear No Evil]

Originally posted by: ZeGermans
What's a rather silly question; the money is owed to us by the european central bank, what they do after they get it isn't our business. That's like the bank asking me where the mortgage money went and asking me to document every nail

Umm.. yeah, they will. If they give you $300,000 to build a house and all that you have on your property is an outhouse. Yes, they WILL ask for proof of who you paid. Actually, they will probably ask for proof of your payments WELL before the house is completed to make sure you don't just give it away or steal it and not build a house. Bad example. Try again.

 

[smack Down]

Originally posted by: JS80

Originally posted by: Drakkon
It sounds like a reasonable practice but where did this money come from to swap with? The half trillion had to come from somewhere didn't it? Or did the fed just print it or made it so? Or do they make a deal with US banks to pull back US funds in exchange for European funds?

The Fed is where banks deposit their money. As you can imagine, the source is effectively infinite for practical purposes.

So in other words they are printing it.

 

[smack Down]

Originally posted by: rchiu

Originally posted by: Drakkon
It sounds like a reasonable practice but where did this money come from to swap with? The half trillion had to come from somewhere didn't it? Or did the fed just print it or made it so? Or do they make a deal with US banks to pull back US funds in exchange for European funds?

Idea of "printing" money is out dated, everything is done electronically these days. Fed doesn't create those money, foreign central banks have to deposit equivalent foreign currency at Fed first, so those USD is essentially backed by those central bank's currency. And since a contract is created for those central banks to buy back their currency at original exchange rate, you don't have to worry about exchange rate movement. In fact, Fed will make some market interest rate on those USD swapped.

So Fed's asset doesn't change at all with this type of transaction, nothing is "created out of thin air". The only difference is the amount of USD circulated in the market, that will depend on how foreign central bank use those USD and if they release it into their own market.

So you're saying that before the Fed will print half a trillion dollars to give to away, it requires that the other central bank print half a trillion dollars of their notes. Then we have some idiot say nothing is created out of thin air.

 

[brxndxn]

I'm getting so damn tired of the 'you are too stupid to understand' argument. Every time someone asks a good question about the Fed, about inflation, about our markets, credit default swaps, or government spending, there is always an answer of 'you have no clue!' Quit sticking up for the leadership that keeps screwing our economy.

More and more complicated financial instruments does nothing to hide the fundamentals that we are spending too much, saving too little, and taking too much advantage of our own strong currency.

Guess what? It doesn't fucking look like anyone in charge has a clue either.

Here's a video of Bernanke making all the wrong predictions and justifications:
Text

Here's a video of Bernanke admitting Ron Paul has the right idea:
Text

Here's a funny video of Daily Show making fun of Geithner
Text

 

[Jaskalas]

Originally posted by: Evan
Damn, the Huffington Post is so terrible sometimes. Why would the Fed keep track of a foreign bank's loans?

The government usually demands people cede control and sovereignty for money. Ergo they become shocked when this isn't the case and demand that it be made so.

 

[soccerballtux]

Originally posted by: brxndxn
I'm getting so damn tired of the 'you are too stupid to understand' argument. Every time someone asks a good question about the Fed, about inflation, about our markets, credit default swaps, or government spending, there is always an answer of 'you have no clue!' Quit sticking up for the leadership that keeps screwing our economy.

More and more complicated financial instruments does nothing to hide the fundamentals that we are spending too much, saving too little, and taking too much advantage of our own strong currency.

Guess what? It doesn't fucking look like anyone in charge has a clue either.

Here's a video of Bernanke making all the wrong predictions and justifications:
Text

Here's a video of Bernanke admitting Ron Paul has the right idea:
Text

Here's a funny video of Daily Show making fun of Geithner
Text

None of the things Bernanke is talking about are "too stupid for the masses". If you think currency swaps are too difficult to understand (as in, you're not willing to go read wikipedia and figure it out yourself) then I'm sorry but that's your problem. What we have now are a mass of disgruntled people who want someone to blame, yet are not willing to go learn themselves about who exactly they should be blaming. Bernanke has worked more than any Fed Chairman in the history of the Fed to open the doors up and provide transparency to the Fed's operations. The people that are fussing right now have no clue what a currency swap is and simply don't care-- they just want to shake fists. Go ahead, give congress control of monetary policy; in their corrupt desires to be reelected they're going to misuse it to pump the economy full of more and more dollars until the system breaks like it did in the Weimar Republic.

Either give them the power to regulate issuance of Credit Default Swaps or leave them alone. You can't not give them the tools to fix the problem while you blame them for not providing a solution (let alone one that you understand).

If the Fed had been allowed to control CDSs then none of this bailout stuff would have been necessary-- we could have just let them all fail, run through a tough 6 month deflationary period, and moved on that much better.

 

[smack Down]

Originally posted by: soccerballtux

Originally posted by: brxndxn
I'm getting so damn tired of the 'you are too stupid to understand' argument. Every time someone asks a good question about the Fed, about inflation, about our markets, credit default swaps, or government spending, there is always an answer of 'you have no clue!' Quit sticking up for the leadership that keeps screwing our economy.

More and more complicated financial instruments does nothing to hide the fundamentals that we are spending too much, saving too little, and taking too much advantage of our own strong currency.

Guess what? It doesn't fucking look like anyone in charge has a clue either.

Here's a video of Bernanke making all the wrong predictions and justifications:
Text

Here's a video of Bernanke admitting Ron Paul has the right idea:
Text

Here's a funny video of Daily Show making fun of Geithner
Text

None of the things Bernanke is talking about are "too stupid for the masses". If you think currency swaps are too difficult to understand (as in, you're not willing to go read wikipedia and figure it out yourself) then I'm sorry but that's your problem. What we have now are a mass of disgruntled people who want someone to blame, yet are not willing to go learn themselves about who exactly they should be blaming. Bernanke has worked more than any Fed Chairman in the history of the Fed to open the doors up and provide transparency to the Fed's operations. The people that are fussing right now have no clue what a currency swap is and simply don't care-- they just want to shake fists. Go ahead, give congress control of monetary policy; in their corrupt desires to be reelected they're going to misuse it to pump the economy full of more and more dollars until the system breaks like it did in the Weimar Republic.

Either give them the power to regulate issuance of Credit Default Swaps or leave them alone. You can't not give them the tools to fix the problem while you blame them for not providing a solution (let alone one that you understand).

If the Fed had been allowed to control CDSs then none of this bailout stuff would have been necessary-- we could have just let them all fail, run through a tough 6 month deflationary period, and moved on that much better.

huh, the fed considered CDS the best thing sense sliced bread. What makes you think they would have regulated them?

 

[brxndxn]

Originally posted by: soccerballtux

Originally posted by: brxndxn
I'm getting so damn tired of the 'you are too stupid to understand' argument. Every time someone asks a good question about the Fed, about inflation, about our markets, credit default swaps, or government spending, there is always an answer of 'you have no clue!' Quit sticking up for the leadership that keeps screwing our economy.

More and more complicated financial instruments does nothing to hide the fundamentals that we are spending too much, saving too little, and taking too much advantage of our own strong currency.

Guess what? It doesn't fucking look like anyone in charge has a clue either.

Here's a video of Bernanke making all the wrong predictions and justifications:
Text

Here's a video of Bernanke admitting Ron Paul has the right idea:
Text

Here's a funny video of Daily Show making fun of Geithner
Text

None of the things Bernanke is talking about are "too stupid for the masses". If you think currency swaps are too difficult to understand (as in, you're not willing to go read wikipedia and figure it out yourself) then I'm sorry but that's your problem. What we have now are a mass of disgruntled people who want someone to blame, yet are not willing to go learn themselves about who exactly they should be blaming. Bernanke has worked more than any Fed Chairman in the history of the Fed to open the doors up and provide transparency to the Fed's operations. The people that are fussing right now have no clue what a currency swap is and simply don't care-- they just want to shake fists. Go ahead, give congress control of monetary policy; in their corrupt desires to be reelected they're going to misuse it to pump the economy full of more and more dollars until the system breaks like it did in the Weimar Republic.

Either give them the power to regulate issuance of Credit Default Swaps or leave them alone. You can't not give them the tools to fix the problem while you blame them for not providing a solution (let alone one that you understand).

If the Fed had been allowed to control CDSs then none of this bailout stuff would have been necessary-- we could have just let them all fail, run through a tough 6 month deflationary period, and moved on that much better.

You're saying the Fed needed more power.. I am saying the Fed already has too much power and further - it does not even need to exist.

The Fed already had the power to stop the housing bubble - raise interest rates. Instead, it gave all sorts of reasons why the housing bubble was 'fundamentally sound.'

And, I'd say the Fed had the power to prevent excess leverage in credit default swaps if they would have actually required a small amount of collateral like they are supposed to require for their loans. There was wayyy too much leverage - and the Fed went right ahead and allowed it. Now WE, the taxpayers, pay for it..

The Fed IS the central bank. Our entire banking system went upside-down. The entire banking system could not have gone upside-down if the Fed acted responsibly.

 

[JS80]

Originally posted by: smack Down

Originally posted by: JS80

Originally posted by: Drakkon
It sounds like a reasonable practice but where did this money come from to swap with? The half trillion had to come from somewhere didn't it? Or did the fed just print it or made it so? Or do they make a deal with US banks to pull back US funds in exchange for European funds?

The Fed is where banks deposit their money. As you can imagine, the source is effectively infinite for practical purposes.

So in other words they are printing it.

There is a liability created whenever there is a transfer. To "print money" is implying that some entity is literally printing money and handing it out without creating an IOU (like printing counterfeit money - except it's real). But that is not what is happening here.

 

[LunarRay]

I posted a link to the FED and their operations for any still in the dark as to what they really do. (A few posts above)

The reason Congress nor the Executive should have control of the FED is the timing of actions to insure those activities of the FED get done quickly and or with out political motivation. Congress controls fiscal policy in conjunction with the Executive but that is a slow process... and full of political agenda.
Sure, we could 'live' with out the FED and its activities but why would we want to? Is it not enough for Congress to Oversee the FED?
Monetary policy is best left to an independent operation which is self funded and does quickly move to insure the country's objectives are met to the extent they can. The FED must operate under current law... If that law is flawed... Congress should make law to effect change as or where it is needed...

 

[JSt0rm]

yes but now I'm really worried about political grand standing to appeal to the idiots having a profound effect on our economy. I like money and I want to make sure people can get whatever amounts they need so they can pay for my services. If congress starts dabbling in this crap who knows the outcome. Fix whats broken but good god dont put that congressman in charge of dishing out money.

 

[smack Down]

Originally posted by: JS80

Originally posted by: smack Down

Originally posted by: JS80

Originally posted by: Drakkon
It sounds like a reasonable practice but where did this money come from to swap with? The half trillion had to come from somewhere didn't it? Or did the fed just print it or made it so? Or do they make a deal with US banks to pull back US funds in exchange for European funds?

The Fed is where banks deposit their money. As you can imagine, the source is effectively infinite for practical purposes.

So in other words they are printing it.

There is a liability created whenever there is a transfer. To "print money" is implying that some entity is literally printing money and handing it out without creating an IOU (like printing counterfeit money - except it's real). But that is not what is happening here.

That is called printing money. What the fed gets for the money it prints is irreverent. To determine if the fed is print or not you need to know the source of the dollars. In this case it is helicopter Ben's private printing presses.

I don't have any idea why people with their lips connected to the feds ass have a problem with saying the fed is printing money. Hell that is what helicopter Ben says he is doing.

 

[LunarRay]

I know that the FED has many operations geared to 'control' monetary policy but as I sit here I think the most important aspect of its operations is controlling money supply via discount rates. Look back at how just a hint of a 25 basis point move one way or another causes the entire economy to take action in preparation of an actual move.
Tighten money supply if inflation is moving up ... loosen it to allow economic growth, tinker here tinker there... it is fascinating to watch.
Congress could not even hope to match the effectiveness of the FED in any aspect of its operations.. The Board of Governors work hard to get it right and by and large they get it right...

 

[Moonbeam]

Originally posted by: LunarRay
I posted a link to the FED and their operations for any still in the dark as to what they really do. (A few posts above)

The reason Congress nor the Executive should have control of the FED is the timing of actions to insure those activities of the FED get done quickly and or with out political motivation. Congress controls fiscal policy in conjunction with the Executive but that is a slow process... and full of political agenda.
Sure, we could 'live' with out the FED and its activities but why would we want to? Is it not enough for Congress to Oversee the FED?
Monetary policy is best left to an independent operation which is self funded and does quickly move to insure the country's objectives are met to the extent they can. The FED must operate under current law... If that law is flawed... Congress should make law to effect change as or where it is needed...

This probably make a lot of sense if it weren't for my dental filling that tells me otherwise. In fact the fed is filled filled with agents of the devil and the Illuminati.

 

[LunarRay]

Originally posted by: Moonbeam

Originally posted by: LunarRay
I posted a link to the FED and their operations for any still in the dark as to what they really do. (A few posts above)

The reason Congress nor the Executive should have control of the FED is the timing of actions to insure those activities of the FED get done quickly and or with out political motivation. Congress controls fiscal policy in conjunction with the Executive but that is a slow process... and full of political agenda.
Sure, we could 'live' with out the FED and its activities but why would we want to? Is it not enough for Congress to Oversee the FED?
Monetary policy is best left to an independent operation which is self funded and does quickly move to insure the country's objectives are met to the extent they can. The FED must operate under current law... If that law is flawed... Congress should make law to effect change as or where it is needed...

This probably make a lot of sense if it weren't for my dental filling that tells me otherwise. In fact the fed is filled filled with agents of the devil and the Illuminati.

Well..., Holy water and Holy truth are the bane of the forces you mentioned. So quick like a bunny go get some and sprinkle it about. I think it is true or at least I've the belief (faith with out proof) that a house divided can not stand... so some force will eventually win out in time... In the near term, however, we are left with the possibility that the decision makers decide for the benefit of the greater good.... Even the devil likes to kick back and watch HD TV and eat Panda Express... so I'm told, anyhow...

 

[rchiu]

Originally posted by: smack Down

Originally posted by: JS80

Originally posted by: smack Down

Originally posted by: JS80

Originally posted by: Drakkon
It sounds like a reasonable practice but where did this money come from to swap with? The half trillion had to come from somewhere didn't it? Or did the fed just print it or made it so? Or do they make a deal with US banks to pull back US funds in exchange for European funds?

The Fed is where banks deposit their money. As you can imagine, the source is effectively infinite for practical purposes.

So in other words they are printing it.

There is a liability created whenever there is a transfer. To "print money" is implying that some entity is literally printing money and handing it out without creating an IOU (like printing counterfeit money - except it's real). But that is not what is happening here.

That is called printing money. What the fed gets for the money it prints is irreverent. To determine if the fed is print or not you need to know the source of the dollars. In this case it is helicopter Ben's private printing presses.

I don't have any idea why people with their lips connected to the feds ass have a problem with saying the fed is printing money. Hell that is what helicopter Ben says he is doing.

Heh, so I see you are saying Fed is wrong no matter what. As long as they put some money out on the market, they are "printing money". Doesn't matter if the money is backed by something, or if the money supply is down for some reason or any one of the hundreds and thousands legitamate reasons why a central bank would put money on the market.

Yeap, try to explain concept to you people is having our lip on feds ass. Try to help you understand how the real economic and financial world works is covering up for fed. Well fine, go live in you little world and believe whatever that makes you happy.

 

[bamacre]

Originally posted by: Moonbeam

Originally posted by: LunarRay
I posted a link to the FED and their operations for any still in the dark as to what they really do. (A few posts above)

The reason Congress nor the Executive should have control of the FED is the timing of actions to insure those activities of the FED get done quickly and or with out political motivation. Congress controls fiscal policy in conjunction with the Executive but that is a slow process... and full of political agenda.
Sure, we could 'live' with out the FED and its activities but why would we want to? Is it not enough for Congress to Oversee the FED?
Monetary policy is best left to an independent operation which is self funded and does quickly move to insure the country's objectives are met to the extent they can. The FED must operate under current law... If that law is flawed... Congress should make law to effect change as or where it is needed...

This probably make a lot of sense if it weren't for my dental filling that tells me otherwise. In fact the fed is filled filled with agents of the devil and the Illuminati.

Yes, let's take the worst argument against the Fed, ignore all others, and dismiss the entire opposition of the Fed as a conspiracy theory.

 

[miniMUNCH]

Currency and interest swaps are relatively benign financial tools.

But a knife is a relatively benign cooking utensil until falls into the hands of a mass murder.

The problem is not currency swaps. The problem is what the FED is doing with the currency swaps and why. The public has a right know these things.

 

[smack Down]

Originally posted by: rchiu


Heh, so I see you are saying Fed is wrong no matter what. As long as they put some money out on the market, they are "printing money". Doesn't matter if the money is backed by something, or if the money supply is down for some reason or any one of the hundreds and thousands legitamate reasons why a central bank would put money on the market.

Yeap, try to explain concept to you people is having our lip on feds ass. Try to help you understand how the real economic and financial world works is covering up for fed. Well fine, go live in you little world and believe whatever that makes you happy.

You seem to be the only one confused about what the Fed is doing. Ask yourself where that half a trillion dollars came from? You can say the Fed, should be running the printing press at high speed, but you can't deny that is what the fed is doing.

 

[VChuck]

I don't usually post too much here for obvious reasons. But the degree of psuedo intellectuallism defending what the federal reserve's actions are enough to make me throw up.
This is a older video,that is a history lesson as well.It's rather long series of video's, apologies
Money Masters how international bankers gained control in America

Of course there will be people in denial,the forces of darkness never sleeps.Begins between their ears.:frown:

 

[soccerballtux]

Originally posted by: brxndxn

Originally posted by: soccerballtux

Originally posted by: brxndxn
I'm getting so damn tired of the 'you are too stupid to understand' argument. Every time someone asks a good question about the Fed, about inflation, about our markets, credit default swaps, or government spending, there is always an answer of 'you have no clue!' Quit sticking up for the leadership that keeps screwing our economy.

More and more complicated financial instruments does nothing to hide the fundamentals that we are spending too much, saving too little, and taking too much advantage of our own strong currency.

Guess what? It doesn't fucking look like anyone in charge has a clue either.

Here's a video of Bernanke making all the wrong predictions and justifications:
Text

Here's a video of Bernanke admitting Ron Paul has the right idea:
Text

Here's a funny video of Daily Show making fun of Geithner
Text

None of the things Bernanke is talking about are "too stupid for the masses". If you think currency swaps are too difficult to understand (as in, you're not willing to go read wikipedia and figure it out yourself) then I'm sorry but that's your problem. What we have now are a mass of disgruntled people who want someone to blame, yet are not willing to go learn themselves about who exactly they should be blaming. Bernanke has worked more than any Fed Chairman in the history of the Fed to open the doors up and provide transparency to the Fed's operations. The people that are fussing right now have no clue what a currency swap is and simply don't care-- they just want to shake fists. Go ahead, give congress control of monetary policy; in their corrupt desires to be reelected they're going to misuse it to pump the economy full of more and more dollars until the system breaks like it did in the Weimar Republic.

Either give them the power to regulate issuance of Credit Default Swaps or leave them alone. You can't not give them the tools to fix the problem while you blame them for not providing a solution (let alone one that you understand).

If the Fed had been allowed to control CDSs then none of this bailout stuff would have been necessary-- we could have just let them all fail, run through a tough 6 month deflationary period, and moved on that much better.

You're saying the Fed needed more power.. I am saying the Fed already has too much power and further - it does not even need to exist.

The Fed already had the power to stop the housing bubble - raise interest rates. Instead, it gave all sorts of reasons why the housing bubble was 'fundamentally sound.'

And, I'd say the Fed had the power to prevent excess leverage in credit default swaps if they would have actually required a small amount of collateral like they are supposed to require for their loans. There was wayyy too much leverage - and the Fed went right ahead and allowed it. Now WE, the taxpayers, pay for it..

The Fed IS the central bank. Our entire banking system went upside-down. The entire banking system could not have gone upside-down if the Fed acted responsibly.

I guess you're right about stopping the housing bubble...it was not fundamentally sound-- how could it have been?

So you're saying the Fed already has the power regulate CDS? Can you prove that? I understood that they could not.

 

[K1052]

While the Fed isn't perfect turning monetary policy over to the whims of Congress is almost more deranged and hopelessly naive than anything else I can think of.

The story in the OP about congress trying to twist a simple currency swap into making it appear the Fed doesn't know what it's doing is farcical.