Economy

Hatchet · #1 03-21-08, 03:20 AM

TruthNews.us Blog Archive The Fed is just an Extension of the Banking Establishment

Quote:

The Fed’s rate cuts are not affecting the lending between banks which is actually deteriorating quite rapidly. And, when banks don’t lend to each other (because they are worried about getting their money back) the wheels of capitalism grind to a halt. The banks are the essential conduit for providing credit to the broader economy, so there must be traffic between the major lending institutions. The banks are hoarding cash to cover losses on their steadily downgraded mortgage-backed assets and to shore up their skimpy capital reserves. As a result, consumer spending will slow, housing will continue to falter, business will contract and GDP will shrink.

“This week the Fed tried to reverse the plunge in asset prices by flooding the banking system with $200 billion of credit. Banks were allowed to turn their bad mortgage loans and other loans over to the Federal Reserve at par value (rather at just 20% "mark to market" prices). The Fed’s cover story is that this infusion will enable the banks to resume lending to "get the economy moving again." But the banks are using the money to bet against the dollar. They are borrowing from the Fed at a low interest rate, and buying foreign euro-denominated bonds yielding a higher interest rate–and in the process, making a currency gain as the euro rises against dollar-denominated assets. The Fed thus is subsidizing capital flight, exacerbating inflation by making the price of imports (headed by oil and other raw materials) more expensive. These commodities are not more expensive to European buyers, but only to buyers paying in depreciated dollars.”

Can't wait for my stimulus check.

**knoxbox** · #2 03-23-08, 12:41 AM

speaking of this, don't neccessairly want to change subject but sense no one else has posted... what are you planning on using ur check for? my wife and i should be getting 1200 i think we are going to buy a matress... but not sure.

Hatchet · #3 03-23-08, 01:14 PM

I'm not getting a check, I don't qualify. Which is totally fine with me, because I don't want the piece of shit band-aids they're handing out. When the shit comes crumbling down in 6 months to a year (if we're lucky it lasts that long), you're stimulus check won't be worth jack shit...none of our currency will.

**knoxbox** · #4 03-23-08, 06:52 PM

Quote:

Originally Posted by Hatchet

I'm not getting a check, I don't qualify. Which is totally fine with me, because I don't want the piece of shit band-aids they're handing out. When the shit comes crumbling down in 6 months to a year (if we're lucky it lasts that long), you're stimulus check won't be worth jack shit...none of our currency will.

if you honestly believe that... its kinda sad really... there is no way, that a small economical back off is going to make us fail.. there is way to much money circulating...

and if you spend the check its worth what you bought with it.. even if (never will happen) the economy crashes.

Hatchet · #5 03-23-08, 09:18 PM

lol, print that last post, please. And read it in about 1 year. See if you still agree with it.

Did you read the article I posted? It talked about how the money could (most likely will) stop circulating. Right now the banks don't want to lend money to each other because they're taking too many losses...When the banks don't lend money around...it dies. The whole capitalist fuckin' world just ends. The dollar is plummeting like a rock. We don't have the gold reserves to keep up with the rate at which they're printing money. Inflation is going through the roof. Add to that our national debt, U.S. National Debt Clock, and things don't look very bright on the horizon.

Enjoy your check, spend it immediately like they want you to. But know that it's only going to make things worse down the line.

**knoxbox** · #6 03-23-08, 09:21 PM

Quote:

Originally Posted by Hatchet

lol, print that last post, please. And read it in about 1 year. See if you still agree with it.

Did you read the article I posted? It talked about how the money could (most likely will) stop circulating. Right now the banks don't want to lend money to each other because they're taking too many losses...When the banks don't lend money around...it dies. The whole capitalist fuckin' world just ends. The dollar is plummeting like a rock. We don't have the gold reserves to keep up with the rate at which they're printing money. Inflation is going through the roof. Add to that our national debt, U.S. National Debt Clock, and things don't look very bright on the horizon.

Enjoy your check, spend it immediately like they want you to. But know that it's only going to make things worse down the line.

okay negetive nancy

Hatchet · #7 03-23-08, 09:26 PM

How about Realist Randy?

**knoxbox** · #8 03-23-08, 09:30 PM

Quote:

Originally Posted by Hatchet

How about Realist Randy?

if that makes you feel better, even though your pessemistic then fine... mr. realist... i don't see anything real about it you can't believe everything you read on the internet... we survived the last depression and we thrived... i highly doubt we wont survive this one.

lunchbox · #9 03-23-08, 10:15 PM

we survived, although millions lived in poverty and without jobs for over a decade

Danger · #10 03-23-08, 10:47 PM

Quote:

Originally Posted by knoxbox

if that makes you feel better, even though your pessemistic then fine... mr. realist... i don't see anything real about it you can't believe everything you read on the internet... we survived the last depression and we thrived... i highly doubt we wont survive this one.

This isn't the same thing as The Depression.

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