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It's odd to watch a country I once thought to be invincible fall apart around me.
It's odd to watch a country I once thought to be invincible fall apart around me.
It's odd to watch a country I once thought to be invincible fall apart around me.
The illusion of invincibility was one that needed to be shattered at some point in time. It's definitely in our best interest.
Agreed. Being only 19, this kind of collapse is better preparing me to deal with problems in the future and taking away what little "ignorant innocence" I had left about our country.I bet people said the same thing at the onset of the great depression.
Agreed. Being only 19, this kind of collapse is better preparing me to deal with problems in the future and taking away what little "ignorant innocence" I had left about our country.
Right.
Why would we sell our government debt to the fed reserve? If we're in debt then we're in debt. So the feds buy some of the debt and do they give the money to our government? Then the government presumably uses the money to pay off debt?
How does the fed buying government debt flood the economy with money?
This is true if all the share holders, profiteers, etc are American. But maybe not so much if they're foreign, right?
I just think their power is perhaps too big and unchecked. If they can "fix" the economy they can also purposely "break" the economy if there was some incentive to do so. If there is no foreign interests or shareholders tied to the federal reserve then there's not as much reason to worry, but do we know if there are foreign interests involved?
Maybe not but it's dangerous to just "take orders," and allow a virtually private bank to own our government debt.
It seems like all the financial folks are surprised which is why it's worrisome.
Right.
Why would we sell our government debt to the fed reserve? If we're in debt then we're in debt. So the feds buy some of the debt and do they give the money to our government? Then the government presumably uses the money to pay off debt? I do in fact believe this is the first time they have announced the purchase of 10-30 year securities.
How does the fed buying government debt flood the economy with money?
Yes, the Fed does provide profits for shareholders.
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.
As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."
The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year
That is not really the case. Through open market operations, the Fed will in effect, be purchasing long term treasuries. They have since their beginning purchased short term debt (specifically treasuries) as a way of pumping the system full of liquidity.
The Fed said it will will purchase $300 billion of long-dated Treasuries over the next six months, its first large-scale purchases of government debt since the early 1960s
World didn't end then, it's not going to end now.
There's so much alarmism here. It's honestly not the end of the world.
What?
FRB: FAQs: Federal Reserve System
This is not the first time they've purchased long term treasuries.
Business Feed Article | Business | guardian.co.uk
World didn't end then, it's not going to end now.
I guess it doesn't really matter since the Annuniki are returning in 2012 anyway. :mrgreen:
This is not the first time they've purchased long term treasuries.
Business Feed Article | Business | guardian.co.uk
World didn't end then, it's not going to end now.