Understanding The Federal Reserve - Khan Academy

[Robbie3000]

I was listening to the podcast and it's apparent that like most people, we don't have a firm understanding of the role of the Federal Reserve. I found this Khan Academy video on the FED. Post some more links or videos about the Federal Reserve.

 

[ogc163]

 

[tru_m.a.c]

thread could get interesting

 

[Crakface]

Dont nations go to the fed when they need money? You basically sell your soul to the devil.

 

[Economics]

This link is long and dry, but they do a decent job going over its history and functions. The mises folks can get dogmatic though with stuff so cross reference this with other vids/books.



They (The Fed) do a good job collecting economic data though even if its filtered and manipulated for public consumption to the media later on. Check the bottom link and look around for current economic info.

FRB: Beige Book

 

[Kuuuuush]

subs for later

 

[88m3]

the wrath of khan

 

[Dusty Bake Activate]

Props...will watch later.

 

[Meta Reign]

Quantitative easing - YouTube
How the banks make the big bucks - YouTube
Uncle Ben goes shopping - YouTube
Fiscal and Monetary Policy - YouTube

I understand this guy is just trying to cover the basics, but he leaves out a huge part to this in the third video. One being that the Fed is now (as of Oct 08' 09') paying the banks INTEREST ON RESERVES. This furthers their incentive to not lend to the public. He also forgets to mention the banks' prop desks, where they take the 0% money from the Fed and quite literally go gambling with it via our stock market and huge leveraged bets in London (ex: JP Morgan Chase's latest fukk up).

These things are VERY important if we are to understand who really runs things. Think about it, is there ANY logical reason for the Fed to be paying banks .75% (I believe that's the amount) on their reserves? No, none at all.

 

[Meta Reign]

I was listening to the podcast and it's apparent that like most people, we don't have a firm understanding of the role of the Federal Reserve. I found this Khan Academy video on the FED. Post some more links or videos about the Federal Reserve.

Fractional Reserve Banking Commentary 1 - YouTube

Trash. Many people understand this already, and while I think fractional reserve banking is bad, it's certainly NOT the main reason the Fed is inherently bad for the economy.

Alot of people don't understand this, but the Fed is INHERENTLY bad for the nation because of two reasons. The first because it (or should I say it's member banks) charges the government interest on money it lends (no, it's not money that we ''owe to ourselves''), and since the government can not create it's own interest free money it can only pay that interest back to the banks by either raising taxes on citizens (which is why everyone in this country is so over taxed) OR they can just continue borrowing from the Fed, which raises our national debt like crazy, and which ultimately has to lead to higher interest rates (the Fed is currently keeping those rates down by buying a majority of treasuries themselves, this CAN NOT last forever). The second and even bigger reason is because it is a system where the rich and ultra wealthy are ALWAYS the very first folks to receive any newly created money from the Fed. This is a system that VERY LITERALLY is one where the rich MUST get richer and the poor get poorer. Think about it, how does the Fed create money? It goes out into the open market and buys matured treasuries (WITH COMPUTER DIGITS LITERALLY CREATED OUT OF THIN AIR), and right now it's also buying Mortgage Backed Securities, CDO's etc. Who owns the majority of these things??? Poor folks?? No. . . It's banks and rich folks. This makes them INFLATION PROOF as they get to spend this newly created money FIRST. By the time this money trickles down to the bottom to the poorest of folks, prices of food and energy have already been bid up.

READ WHAT I WROTE HERE CAREFULLY, AND OVER AND OVER AGAIN UNTIL YOU UNDERSTAND WHY THIS HURTS THE POOREST OF FOLKS, CRUSHES THE MIDDLE CLASS AND AUTOMATICALLY KEEPS THE RICH, RICH AND GETTING RICHER FOR GENERATIONS. IT'S A SCAM EVEN IF THEY DON'T KNOW IT.

 

[Robbie3000]

Trash. Many people understand this already, and while I think fractional reserve banking is bad, it's certainly NOT the main reason the Fed is inherently bad for the economy.

Alot of people don't understand this, but the Fed is INHERENTLY bad for the nation because of two reasons. The first because it (or should I say it's member banks) charges the government interest on money it lends (no, it's not money that we ''owe to ourselves''), and since the government can not create it's own interest free money it can only pay that interest back to the banks by either raising taxes on citizens (which is why everyone in this country is so over taxed) OR they can just continue borrowing from the Fed, which raises our national debt like crazy, and which ultimately has to lead to higher interest rates (the Fed is currently keeping those rates down by buying a majority of treasuries themselves, this CAN NOT last forever).

The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain.

http://www.famguardian.org/Subjects/MoneyBanking/FederalReserve/FRcons
pire/FRconspire.htm


This is why it's so important that we understand the function of the FED and the powers that it has because there is a lot of disinformation out there that the real, non-conspiratorial and less sexy critique of the FED are not addressed.

 

[Meta Reign]

The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain.

http://www.famguardian.org/Subjects/MoneyBanking/FederalReserve/FRcons
pire/FRconspire.htm


This is why it's so important that we understand the function of the FED and the powers that it has because there is a lot of disinformation out there that the real, non-conspiratorial and less sexy critique of the FED are not addressed.

You dumb fukk, that's money from when the Fed buys treasuries from banks and others on the open market after those treasuries mature. If you read what I wrote again, I put in parenthesis that the Fed's MEMBER BANKS (Chase, Goldman, Cit, BofA etc.) are the ones who really lend directly to the government. The Fed lends at zero, the banks lend at 2% (or whatever a 30yr note is going for now) to the government. Before that debt has matured, the Fed BUYS back that debt from the banks (during ''quantitative easing''). When that debt matures, the Fed gives that money to the treasury (MINUS ''EXPENSES'', BECAUSE NOT ALL OF IT GOES TO THE TREASURY). . . Meaning what? That the government gets fleeced. . . Dikkhead.

Understand now, moron? You're talking about debt that has matured, when Bernanke buys treasuries from banks. I'm talking debt that's being sold from those same banks to the Federal government.

IT'S TWO COMPLETELY DIFFERENT THINGS. . . YOU DUMB FUKK.

 

[Schmoove]

 

[Dusty Bake Activate]

You dumb fukk, that's money from when the Fed buys treasuries from banks and others on the open market after those treasuries mature. If you read what I wrote again, I put in parenthesis that the Fed's MEMBER BANKS (Chase, Goldman, Cit, BofA etc.) are the ones who really lend directly to the government. The Fed lends at zero, the banks lend at 2% (or whatever a 30yr note is going for now) to the government. Before that debt has matured, the Fed BUYS back that debt from the banks (during ''quantitative easing''). When that debt matures, the Fed gives that money to the treasury (MINUS ''EXPENSES'', BECAUSE NOT ALL OF IT GOES TO THE TREASURY). . . Meaning what? That the government gets fleeced. . . Dikkhead.

Understand now, moron? You're talking about debt that has matured, when Bernanke buys treasuries from banks. I'm talking debt that's being sold from those same banks to the Federal government.

IT'S TWO COMPLETELY DIFFERENT THINGS. . . YOU DUMB FUKK.

Have a mike's hard lemonade, fakkit.

 

[daze23]

the thing is our current situation wasn't planned, it's just where we ended up