Occupy Dallas

[Broncojohnny]

If they stuck to that, 2008 would have been a better year. LOL

True, but the changes since then have made them increase that ratio. They have to keep more money on hand now, many of them now have three times the capital on hand. Just another reason why they aren't going anywhere any time soon. I'm all for making them do that. The European banks are a different story.

[Bassics]

No, if those big banks get to lending, it's a simple call to the Fed. When more money is demanded, it justifies putting more into circulation (Fed's job). Banks get the loan from the Fed for zero or next to zero interest and loan it to us for a few percent. They pay it back to the Fed, the Fed takes its 6% rake (operating costs) and the rest goes back to the Treasury.

THAT is how banks make money.

Check out what i said about WAMU. There was no going to the fed. They managed their subprime portfolio really well, and were very creative in refinancing and using promises to fund more. In good times that is fine.

But they backed their providian portfolio with deposits, and when Chase organized the fake panic and run on those deposits, they could not count the real assets, only the deposits, and the fed said "sorry, no soup for you".

Your point about corruption in the fed is half true, they are like a mafioso family, but they will eat each other in the process as well.

[Denny]

The treasurys aren't being pump by the Fed, have you been paying attention the past few weeks? The Fed just made them less attractive and people still buy the shit out of them! Imagine if we were paying a real interest rate on them, something like 4%! Gold would be worth $15 an ounce right now and I'd be buying the shit out of it, lol.

Now that the Fed got it going, the sheep are following the trend. They can go lower and people will still go because of "guaranteed money" even though the returns won't even outpace inflation (even at the bogus % that is reported).

You gots to be a dumb mutha to be buying that shit! LOL

[Denny]

Check out what i said about WAMU. There was no going to the fed. They managed their subprime portfolio really well, and were very creative in refinancing and using promises to fund more. In good times that is fine.

But they backed their providian portfolio with deposits, and when Chase organized the fake panic and run on those deposits, they could not count the real assets, only the deposits, and the fed said "sorry, no soup for you".

Your point about corruption in the fed is half true, they are like a mafioso family, but they will eat each other in the process as well.

Right. Just ask anyone from Lehman and Bear. They got the

[Denny]

True, but the changes since then have made them increase that ratio. They have to keep more money on hand now, many of them now have three times the capital on hand. Just another reason why they aren't going anywhere any time soon. I'm all for making them do that. The European banks are a different story.

But we're still covering for European banks too!

That is why banks held when they got their bail-outs, to have more on hand. It never went into circulation like it was designed for. They also invested overseas.

[Denny]

LOL... Bank of England Prints £75Bn More to add to their QE

[mstng86]

I think it would be an awesome gift if someone made denny a roll of toilet paper made of dollar bills.

[Matt]

Everybody just needs to fap.

[Denny]

I think it would be an awesome gift if someone made denny a roll of toilet paper made of dollar bills.

I'd hold it for the next precious metals dip.:wink1:

[ELVIS]

you cant be king of the world if your slave to the grind............
slave to the grind...
slave to the grIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIInd

god bless.

[Ruffdaddy]

So what the fuck are precious metals going to really buy you in a full blown collapse of the currency system? False sense of security?

[John -- '02 HAWK]

So what the fuck are precious metals going to really buy you in a full blown collapse of the currency system? False sense of security?

Unless its an apocalyptic collapse precious metals will always retain some value.

[majorownage]

I completely understand your point on the constitutionality of a centralized bank, and the fed for that matter. Yes, the constitution does not set forth that idea, and many of our founding fathers (Jefferson for instance) were staunchly against it.

However, even in that light I think brandishing this shiny idea of conspiracy over the centralized bank will very quickly put you in the crackpot category for many people. Just the idea of a bank controlling a currency for it's own profits is in itself absurd. Their own holdings, and value is based on that exact currency. They do not gain anything by manipulating it, because any action they take that lessens the value will hurt themselves. And transversely anything shifty and criminal they conspire to do in raising the value benefits the entire country as a whole.

As for TARP, and government intervention into the economy and private industry I am absolutely opposed. In a capitalist economy the government has ZERO business in private industry, and their intervention only weakens it as a whole. TARP should never have happened, period. We would not be in such bad shape right now if all of those banks and companies would have folded, exactly as they would have in a capitalist economy. George W and Washington sold fear to the people in the form of TARP, that was bullshit.

They can buy up assets with their greenbacks before they are overextended and then leave the public with a bunch of worthless ass wiping rags. That's why I hate fiat money.

[Bassics]

They can buy up assets with their greenbacks before they are overextended and then leave the public with a bunch of worthless ass wiping rags. That's why I hate fiat money.

This is actually the Austrian school of stagflation theory. In fact the byline in wiki is (for a change) very well put:

Adherents to the Austrian School maintain that creation of new money ex nihilo benefits the creators and early recipients of the new money relative to late recipients. Money creation is not wealth creation; it merely allows early money recipients to outbid late recipients for resources, goods, and services. Since the actual producers of wealth are typically late recipients, increases in the money supply weakens wealth formation and undermines the rate of economic growth.

"The increase in the money supply rate of growth coupled with the slowdown in the rate of growth of goods produced is what the increase in the rate of price inflation is all about. (Note that a price is the amount of money paid for a unit of a good.) What we have here is a faster increase in price inflation and a decline in the rate of growth in the production of goods. But this is exactly what stagflation is all about, i.e., an increase in price inflation and a fall in real economic growth. Popular opinion is that stagflation is totally made up.

"It seems therefore that the phenomenon of stagflation is the normal outcome of loose monetary policy. This is in agreement with [Phelps and Friedman (PF)]. Contrary to PF, however, we maintain that stagflation is not caused by the fact that in the short run people are fooled by the central bank. Stagflation is the natural result of monetary pumping which weakens the pace of economic growth and at the same time raises the rate of increase of the prices of goods and services."[26]

Note that the austrian school maintains that money supply is not the driver of inflation or deflation, only that it exacerbates the problem. Neo-Keynsian or whatever, it is generally acknowledged that stagflation occurs when the cost of doing business is artificially high AND the money supply is not managed.

We currently have both; a federal arm out of freakin control (and states and cities too) with job killing legislation, and a direct effort to increase the money supply with the hope that it will become capital.

That is all nice and tidy in one country but the world is a free market. Japanese banks have borrowed at 0% forever, and they can't buy their way into the markets with it; they devalue the total holdings. The best they can do is use it to stimulate consumer confidence by making plastic dollars (yen) cheaper.

[dcs13]

Here is a great article on how stuff SHOULD work..

http://www.nationalreview.com/corner/279321/jobs-agenda-kevin-d-williamson