CHART of banking system collapse, Fed says "Nothing to see here, folks. Move along."

[JordanQ72]

Bullshit and fake graph is bullshity and fake...

Also, look closely at the H.3. Actual reserve vault cash isn't moving. You guys are free to believe whatever conspiracies you want though. I've had discussions about this weeks ago.

 

[virginiakid]

No wonder they want another cold war/more wars.

 

[eric_cartman]

Does anyone have a goldmoney.com account? How safe is this? I mean, how can we be sure that our gold is in the vault and that we can get it whenever we want?

Banks today are insured by the taxpayers. How can we be sure that buying gold through these companies is safer?

if you want to buy gold and other assets that will go up in value as this whole collapse plays out... check out http://www.europac.net

i would invest there if i were you. the president of that company is Peter Schiff and he is a big ron paul supporter and is actually now an official economic adviser to ron paul (though Schiff jokes that ron paul is the only candidate who doesn't actually need his advice, since Ron Paul already understands what's going on).

in terms of buying hold... he recomends a thing called the perth mint program in australia... there are many reasons to use this program... but it's a great way of owning physical gold, and espeically because if the US government makes it illegal to own gold, you'll have your gold waiting outside of the country for you, so that you can leave the country and get your gold when you're out (otherwise, you may not be able to take your gold with you if you leave the country).

but he specializes in foreign investments. he knows what's going on. he's investing in very safe and conservative companies around the world. Schiff personally is a huge bull on gold stocks, so he could tell you good ones to get if you wanna gamble a bit... but the investments he recomends to clients are designed to preserve their wealth in the face of a US economic and dollar crash.

 

[EvilEngineer]

I'm going for inverse indexes.

 

[integrity]

Bullshit and fake graph is bullshity and fake...

Also, look closely at the H.3. Actual reserve vault cash isn't moving. You guys are free to believe whatever conspiracies you want though. I've had discussions about this weeks ago.

yeah, but how much of that reserve vault cash is non-borrowed reserve?

 

[Benaiah]

Please explain the original post in laymans terms.... I don't understand what all this means.


what do these numbers mean?

Feb. 6 42093 -18009
13 42093 -18009

 

[morlhzd]

Here is the same graph with better context:

http://research.stlouisfed.org/fred2/series/BOGNONBR?cid=123

It is bad - but the original image posted makes it look really bad.

BE CAREFUL buying GOLD --> We are actually going into a Deflationary period (NOT inflationary). (gold does better in an inflationary period). (deflation is much worse then inflation)

Deflation is the contraction of the money supply - this argument is baced by:

10-20% drop in the value of homes (very deflationary)
Spreads rising to historic levels
Banks needing cash so much they borrow at 16% interest rates from Mid-East
SOMA being drained by Fed
Bond auctions failing and yields sky rocketing.

Careful with the metals.

 

[lastnymleft]

Here is the same graph with better context:

http://research.stlouisfed.org/fred2/series/BOGNONBR?cid=123

It is bad - but the original image posted makes it look really bad.

Well, if you closed your eyes, and went LALALALALALAALALALALALALLALALLALALALAL for two solid weeks, it wouldn't look so bad, as you say. Problem is, your graph and mine are the exact same graph, but mine has more current data. Your graph:

Observation Range: 1959-01-01 to 2007-12-01
Last Updated: 2008-01-25 9:13 AM CST

Mine is current to 20080213

 

[lastnymleft]

Here is the same graph with better context:

http://research.stlouisfed.org/fred2/series/BOGNONBR?cid=123

It is bad - but the original image posted makes it look really bad.

BE CAREFUL buying GOLD --> We are actually going into a Deflationary period (NOT inflationary). (gold does better in an inflationary period). (deflation is much worse then inflation)

Deflation is the contraction of the money supply - this argument is baced by:

10-20% drop in the value of homes (very deflationary)
Spreads rising to historic levels
Banks needing cash so much they borrow at 16% interest rates from Mid-East
SOMA being drained by Fed
Bond auctions failing and yields sky rocketing.

Careful with the metals.

More comment please. I don't see this as just being a time of deflation. I see it as a potential collapse of the FRN currency system, and a possible change in the monetary policy towards gold. (I believe the Amero will be gold backed - I've read a quote from someone in the know that said as much). So I am more bullish on things of real value, such as gold. I'd like to hear more of your thoughts, though. I'm heavy into gold.

 

[lastnymleft]

Please explain the original post in laymans terms.... I don't understand what all this means.

The shit is hitting the fan.

what do these numbers mean?

Feb. 6 42093 -18009
13 42093 -18009

Ignore the double postings. That is just an anomoly of the fact that data is compiled fortnightly, but the data was requested to be supplied in a weekly format. They just repeat a previous week's data point as a means to fill in the blank.

The real story is in the extremely sharp turn to negative when it hasn't done that in the time since recording such began, in 1959. It symbolizes a monetary system in a LOT of trouble, to say the least.

 

[scooter]

I think it's a bit misleading to show a chart with one end falling off and to shout that shit is hitting the fan. Most average folks don't even understand how this system works, so you show them a bad graph and scare the crap out of them.

There'd be some in the financial realm who would say that this shows that banks are using the TAF system as it was intended.

Does it really matter if the reserves are borrowed or nonborrowed? Nearly all of the money is borrowed from somewhere anyway. Might as well be the Fed slinging fake reserves around.

 

[ronpaulfollower999]

Bullshit and fake graph is bullshity and fake...

Also, look closely at the H.3. Actual reserve vault cash isn't moving. You guys are free to believe whatever conspiracies you want though. I've had discussions about this weeks ago.

Please explain why it is BS.

50% of Ron Paul supporters (including me) have no idea what any of this means. :o

 

[thoughtbombing]

wow... not that I didnt know this, but wow.

 

[lastnymleft]

There'd be some in the financial realm who would say that this shows that banks are using the TAF system as it was intended.

There was no "as it was intended" regarding the TAF. The Term Auction Facility is a scheme they have concocted in the last few weeks to try to keep the system afloat. How much thought would have gone into it, and planning for the consequences of such, given that this has happened within a matter of weeks? Where is such discussed? The instant creation of the TAF in and of itself is the greatest signal of dire events underway. Not in the last 49 years of recording data has such been necessary.

 

[scooter]

There was no "as it was intended" regarding the TAF. It's a system they have created in the last few weeks to try to keep the system afloat. That in an of itself is the greatest signal of dire events underway. Not in the last 49 years of recording data has such been necessary.

I'm not saying the credit markets are not in turmoil and that TAF wasn't an emergency operation. I'm just saying that negative non-borrowed reserves are not immediately the end of the world scenario for banking.

So the banks are net sellers of fed funds instead of buyers... It's a sign that the credit markets have gotten really bad, but not a sign that the whole thing is collapsing.

Get ready for some monetary inflation and some bubble collapse deflation, but not the end of financials unless things stayed this way for many years.

 

[bp2519]

Here is the same graph with better context:

http://research.stlouisfed.org/fred2/series/BOGNONBR?cid=123

It is bad - but the original image posted makes it look really bad.

BE CAREFUL buying GOLD --> We are actually going into a Deflationary period (NOT inflationary). (gold does better in an inflationary period). (deflation is much worse then inflation)

Deflation is the contraction of the money supply - this argument is baced by:

10-20% drop in the value of homes (very deflationary)
Spreads rising to historic levels
Banks needing cash so much they borrow at 16% interest rates from Mid-East
SOMA being drained by Fed
Bond auctions failing and yields sky rocketing.

Careful with the metals.

Sure some prices are falling but real inflation last year was somewhere around 10%. What makes you think we're going into a deflationary period?

 

[Henry]

^^^^^^^

 

[ssg263]

there is a little known Federal Reserve law that allows banks to operate at 0% reserves if its needed to save the system.

We are headed for hyperinflation in my opinion

 

[Nyte]

//

 

[thoughtbombing]

http://www.youtube.com/watch?v=t3UaTjzZFY0