If I owned stock in the Federal Reserve...

[michaelwise]

If I owned stock in the Federal Reserve, I'd really be seriously thinking about selling my stock right now.

The Fed is stuffed to the rafters with toxic waste and its currency is virtually completely debased.

Michael

 

[PeacePlan]

Stocks for the Fed do not trade they are held by banks..

 

[michaelwise]

Without CO2, Nothing Green Would Grow On The Planet.

 

[joshnorris14]

Why on earth would you sell "stocks" of the Fed? Said "stock" would be the most valuable asset of any portfolio. Even if their is hyperinflation. As long as they are a central bank their "stock" is valuable.

 

[michaelwise]

This is nothing short of a Declaration of War by the Ron Paul Crew on the Federal Government.

 

[John of Des Moines]

The Federal Reserve Bank is unlike any other bank or corporation. It literally can buy anything it wants for fraction of pennies on the dollar.

Say you are the Federal Reserve and you want to buy 10 ounces of newly mined gold. Assuming the market rate of $1,000 per ounce do you offer the mining company $1,000 for each an ounce? No, you offer to pay a 10 percent more because you really want some gold. So, you call the U.S. Treasury Department which prints up 11 one hundred dollar notes for each ounce you plan to buy for a total of 110 notes dominated as $100. You, of course, are kind enough to pay the Treasury Department for the cost of printing the 110 notes dominated as $100. Last time I heard the payment was four cents per note printed. So multiplying 110 by 4 cents comes to $4.40. So the Treasury delivers to you, the Federal Reserve, 110 one hundred dollar bill notes with a street value of $11,000 (which cost you only $4.40) and you turn around and give the $11,000 to the mining company and they cheerfully deliver to you 10 ounces of gold.

And you now say you want to give up being Mr. Central Banker. Why?

 

[joshnorris14]

The Federal Reserve Bank is unlike any other bank or corporation. It literally can buy anything it wants for fraction of pennies on the dollar.

Say you are the Federal Reserve and you want to buy 10 ounces of newly mined gold. Assuming the market rate of $1,000 per ounce do you offer the mining company $1,000 for each an ounce? No, you offer to pay a 10 percent more because you really want some gold. So, you call the U.S. Treasury Department which prints up 11 one hundred dollar notes for each ounce you plan to buy for a total of 110 notes dominated as $100. You, of course, are kind enough to pay the Treasury Department for the cost of printing the 110 notes dominated as $100. Last time I heard the payment was four cents per note printed. So multiplying 110 by 4 cents comes to $4.40. So the Treasury delivers to you, the Federal Reserve, 110 one hundred dollar bill notes with a street value of $11,000 (which cost you only $4.40) and you turn around and give the $11,000 to the mining company and they cheerfully deliver to you 10 ounces of gold.

And you now say you want to give up being Mr. Central Banker. Why?

Umm, that is not true at all. The Fed issues Federal Reserve Notes (Those pieces of paper you carry in your pocket). If they want to buy gold, they increase their balance sheets and buy gold.

 

[Muwahid]

The dollar is fine as long as people accept the dollar.

The dollar is still the international reserve currency, if that changes, the dollar becomes nothing more than toilet paper.

It's terrible monetary policy but at least you can buy bread for now.

 

[jamezelle]

//

 

[AceNZ]

The Fed normally only issues debt. Except in rare near-collapse scenarios does it ever actually buy (or sell) anything other than debt instruments.

Without an act of Congress, the Fed can't take "money printing" type actions that would increase the capital held by a person or company. They never just print FRNs and spend them (FRNs are issued only in exchange for credit money that's been deposited at the Fed by member banks).

Also, 6% of Fed profits are distributed to its shareholders (the member banks) every year. The remaining 94% is rebated back to the US Treasury. Of course, what gets buried in the Fed's expenses is a whole other story -- but that money comes from interest payments, not direct money creation.

 

[joshnorris14]

The Fed normally only issues debt. Except in rare near-collapse scenarios does it ever actually buy (or sell) anything other than debt instruments.

Without an act of Congress, the Fed can't take "money printing" type actions that would increase the capital held by a person or company. They never just print FRNs and spend them (FRNs are issued only in exchange for credit money that's been deposited at the Fed by member banks).

Also, 6% of Fed profits are distributed to its shareholders (the member banks) every year. The remaining 94% is rebated back to the US Treasury. Of course, what gets buried in the Fed's expenses is a whole other story -- but that money comes from interest payments, not direct money creation.

If what you said were true, they couldn't Quantitative Ease. Which they can. They can expand their balance sheet and buy assets like they've done since 2008.

 

[ByeByeBernanke]

Curious of those who think the Federal Reserve System's demise is impending (And/or the value of the dollar), how much time do you think we have till the music stops? My best guess would be 2014, but that's just a guess. I'm certain that we will see a currency crisis within this decade though.

 

[John of Des Moines]

Umm, that is not true at all. The Fed issues Federal Reserve Notes (Those pieces of paper you carry in your pocket). If they want to buy gold, they increase their balance sheets and buy gold.

Okay, if you want to edit my post - so instead of "giving" the $11,000 to the mining company the Fed "issues" the $11,000 to the mining company. Sort of like arguing the definition of "is" is - ain't it?

If they want to buy gold, they increase their balance sheets and buy gold.

And you point is?

 

[joshnorris14]

Okay, if you want to edit my post - so instead of "giving" the $11,000 to the mining company the Fed "issues" the $11,000 to the mining company. Sort of like arguing the definition of "is" is - ain't it?



And you point is?

The treasury is not involved at all

 

[John of Des Moines]

The treasury is not involved at all

Technically not anymore - with a few keystrokes the Fed electronically credits the mining company's bank account. But if the mining company were to demand cash payment or this was the 1930's.

It's the Treasury's Bureau of Engraving and Printing that "prints" the paper notes at the request of the Federal Reserve - it's the Fed that "issues" into circulation after receiving delivery of the notes the Treasury prints up.

 

[Squid]

END THE FED.

I still believe that Economic Collapse is far into the Future though.
You need only to look at Japan to see that debt is very sustainable for a LONG period of time.
Silver/Gold is still the best bet for Long Term.