167,000 pennies used for Federal Reserve propaganda video.

[Havax]

Absolutely loved the video.

I did see somewhere though where the $16.1 trillion dollar number was bogus or misrepresented. Can someone debunk that?

 

[ronpaulyourmom]

Absolutely loved the video.

I did see somewhere though where the $16.1 trillion dollar number was bogus or misrepresented. Can someone debunk that?

It's not bogus but it is misrepresented. Basically the loans were short-term 1-90 day loans. As an accounting process the money gets paid back and is then borrowed again immediately if needed (usually needed lol). 16.1 trillion represents the summation of all the loans over a period of time, but the total outstanding at any given point in time is substantially less. It's the total outstanding that represents the true accounting risk, and so that's a more relevant number.

Don't get me wrong though the fed is still a very dangerous entity and when combined with bad politics is very harmful to this country, but the 16 trillion dollar claims over the discount window are blown out of proportion. The real problem is that the window got used for unintended purposes, creating a bailout fund that acted like low interest long-term loans (i.e. just the ability to roll over short-term loans indefinitely) with no risk, and expense that was less than the rates at which they could re-lend the money to others. This created the opportunity to increase profits for free and get back on sound footing at the people's expense. Think of it as a prolonged bailout and one laced with all kinds of moral hazard that only promotes more risk taking on the part of the banks. It's more the principle and precedent of it that will hurt us in the long run, too big to fail is not capitalism, and markets function poorly as a result. Because of the precedent that has been set, malinvestment will continue to occur.

 

[Kalebthefinn]

Someday when we get a full audit we may find out 16 trillion was nothing comparatively.

Was the 7.7 trillion dollar amount that recently came out representative of the total amount (not just the summation of amounts over a certain time period)?

The tarp bailout was composed of liquidity loans as well eh?

So was there any difference between the tarp loans and the fed res loans besides that the 16T represents several re- loans not the total sum?

Whatever the case it seems the banks took the bailout $ from the gov and then turned around and bought treasuries which yielded interest that must come from the taxpayers. 16T of malinvestment and interest yields to the bailed-out at the expense of the taxpayers. Not to mention the inflation tax.

 

[StilesBC]

Aww, not this shit again.

I've been trying to debunk this $16 Trillion claim for months and it keeps popping up like a game of whack-a-mole.

Seriously people. If you don't understand this stuff, stop talking about it. You are discrediting the legitimate problems we have with the Fed.

Focus on the simple stuff: manipulations of interest rates, picking winners and losers, promoting TBTF, moral hazard, etc. You don't need to understand arcane terminology to rail against that.

 

[heavenlyboy34]

Aww, not this shit again.

I've been trying to debunk this $16 Trillion claim for months and it keeps popping up like a game of whack-a-mole.

Seriously people. If you don't understand this stuff, stop talking about it. You are discrediting the legitimate problems we have with the Fed.

Focus on the simple stuff: manipulations of interest rates, picking winners and losers, promoting TBTF, moral hazard, etc. You don't need to understand arcane terminology to rail against that.

This^^ Plus, the maker of the video errs in his assertions of when and why the Tea Party began.

 

[Lucille]

Your vid made LRC! Congrats!

http://www.lewrockwell.com/blog/lewrw/archives/100757.html

 

[amonasro]

I like this video a lot. Thumbs up!!

 

[Maverick]

On the LRC blog but only 3 responses here? This video is great! Exceptional work my friend.

This thread needs more love.

 

[ctb619]

I hope you picked out all the pre '82 pennies

 

[Sentient Void]

WOW.

SHARED.

THIS *MUST* be sent viral. This is the status update I'm attaching to my video to spread across my social networks...

"libertarian, conservative, neoconservative, liberal, progressive, socialist, moderate.... doesn't matter.

If *THIS* does not convince you to *FOCUS* your attention on the Federal Reserve, and support Ron Paul for president in 2012. Then honestly, I don't know what will.

SHARE THIS VIDEO. SEND IT VIRAL."

 

[american.swan]

Awesome VIDEO

 

[The Magic Hoof]

Wasn't the $16T paid back in 30 days or so? There was some explanation of how that was done.

 

[Kalebthefinn]

Ron Paul himself has threw around this number.

While the number may be 'rolling loans' (lending out overnight or for a limited period then returned the next day) from what I understand of fractional reserve banking that loaned liquidity doesn't 'roll back off' their books until it's been multiplied X9. Thus an overnight loan of $100,000 is turned via FRB into 1,000,000 and then the original loan is rolled back to the fed, while the other $900,000 stays with the bailed out bank. Thus massive money creation that 'provides liquidity' for the banks that is payed as an inflationary tax later. "But it was only $100,000 and paid back completely!" hmm... maybe there's more to the story.


Senator Sander's report of 16Trillion dollars in bailout:
http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3


At the bottom of this page is the GOA's official report:

http://www.rawstory.com/rs/2011/07/21/audit-fed-gave-16-trillion-in-emergency-loans/

 

[JoshLowry]

Great work! Front paged. I hope this goes viral!

 

[Kalebthefinn]

Thanks Josh!