Federal Reserve DISASTER

I started this thread yesterday and just now I read about this:

Bush seeks financial regulation overhaul

news.yahoo.com...

They know it's about to collapse and are desperate to plug the holes.

However, won't work. This is scary.

reply to post by worried08


I was going to add that recent development to your thread, glad you found it.
This is yet another worrisome development for sure. They not only need less power, the Fed needs to be abolished.
There is ONE presidential candidate who would like to address this.
He's not getting a chance to talk right now.

We're too worried about the Clinton/Obama ping-pong match of insults at the moment. sick, sick sick..


[edit on 29-3-2008 by spacedoubt]

Originally posted by worried08
There's no [mainstream] news coverage on it yet so this qualifies as a serious heads up.

It's not really a "fed" disaster; you can create a huge complicated analysis but the bottom line is there are X people using X material resources to produce X goods and services. When you increase the money supply by the 3.5 trillion spent on the war in Iraq, while at the same time reducing goods and services produced by diverting both labor and material resources to the war, the ONLY possible result is hyperinflation because you have a lot more money in the economy representing a lot fewer goods and services.

reply to post by Nookster


If you consider that price stability is one of the supposed key responsibilities of the Fed I'd say a hyperinflation is a "Fed disaster".

So you all continue to perpetuate the stereotype that the US is going DOWN. Most of you are from the US and you still chant that this is absolutely the point of no return.

But still, only 1 person responded to my last question.....

WHAT THE HELL ARE YOU GOING TO DO???

I think most of you have more fun thinking about chaos than civilized life in an overturned society. Those who only talk will be the reason for the total collapse. Those who do something during the overturn will be heros.

Keep talking, its doing us a lot of good. Get real.

I don't post here much but I do read the forums ... I am a trader, I watch the markets everyday trying to make a dollar in the markets. This latests proposal by Bush is exactly what it seems ... desperation. If they would leave the so called "free markets" alone they would fix themselves, granted a lot of money would be lost but the markets are inherently self correcting.

Did anyone see where Lehman's paper was rejected at the last Fed auction ??? Their credit is so bad that even the government won't accept it, they are probably next in line to fall. The system is on the verge of collapse and the masses have no idea whats happening. This is the setup for another false flag attack and martial law in my opinion ...

Hang on people its going to get worse, when they get the price of fuel and food so high no one can afford it then we will see the true unraveling begin ...

Best of luck to all

reply to post by worried08


Here is some mainstream media coverage from the NY times which says the Federal Reserve is requesting that congress give them more power- in fact enough power to call in S.W.A.T. teams to any area which may be threaten the reserve and its operation.

www.nytimes.com...


They know we're are onto them and they are scared as hell. And they should be. If congress approves this- which they WILL- then the member of congress should be as scared as the federal reserve is for needing this request in first place!

Here we go!


[edit on 29-3-2008 by dk3000]

Originally posted by SantaClaus
So you all continue to perpetuate the stereotype that the US is going DOWN. Most of you are from the US and you still chant that this is absolutely the point of no return.

But still, only 1 person responded to my last question.....

WHAT THE HELL ARE YOU GOING TO DO???

I think most of you have more fun thinking about chaos than civilized life in an overturned society. Those who only talk will be the reason for the total collapse. Those who do something during the overturn will be heros.

Keep talking, its doing us a lot of good. Get real.

Well, we Americans DO live here in the U.S., we should know what's going on. We're watching our rights disappear into smoke and the country's broke. So there you have it, make of it what you will.

What are we going to do about it? I've been trying to think of what we can do election night 2000. But short of organizing a revolution and taking to the streets, what do YOU think we should do? I'm open to any and all suggestions. I just don't think it's going to end until either the evil machine destroys its self from within (which doesn't seem likely) or there's a violent revolution. I write my congressman religiously and stay as informed as I can. But short of taking to the streets, which would create anarchy, I don't know of anyone who has a solution. How DO you stop these madmen?

The problem is there are still to many people who don't think anything is wrong ... until it slaps them in the face. This is how it all works, slowly insidiously until you wake up one day and realize everything has changed ...

What are we going to do ??? What can we do ??? As for myself I live in a relatively rural area and may be able to survive. I feel truly sorry for those in big cities, they are trapped like rats. There is nowhere to hide really, we are hurtling into the future and if you can see it coming you may have a chance.

For those with eyes that can see ...

reply to post by forestlady


Well my American cousins, you are always welcome to come to Canada and live your lives as contributing members of the planets' most enjoyable capitalist socialist state! The best of everything is here, healthcare, clean air (anywhere but Southern Ontario) high taxation, long winters, and gorgeous sunsets. Come on up! Most of us are retiring soon, and we need replacement workers to pay our pensions! Never mind Uncle Sam, WE need you.


[edit on 29-3-2008 by Cynic]

Originally posted by hal4511

Did anyone see where Lehman's paper was rejected at the last Fed auction ??? Their credit is so bad that even the government won't accept it, they are probably next in line to fall.

Hi hal, and you probably noticed Citi' ridiculous upgrade & buy of Lehman yesterday. One flagging bank's pathetic attempt to shore-up another. Naturally Lehman stock gaped-up on that news...only to fill the gap & then some by close. More sheep led to slaughter.

With the call to expand the authority of the Federal Reserve, equities marketeers, both bull & bear are finally waking-up to a reality that traders in precious metals (see Silver) have lived for 28yrs: Totalitarian Free Market Enterprise.

For those expecting to see a sustained Dollar recovery, please study this catty-wompus missive by Harvard economics professor Martin Feldstein, published in the Financial Times on Thursday.

It should be obvious by now that the PTB have no interest in a strong Dollar. Quite the contrary. The propaganda from gubmn't shill Feldstein points to relief in the balance of trade...but there is another more ominous incentive...deflate-away the value of 53 Trillion in unfunded government entitlements. Out of a sense of futility, David Walker, Comptroller General, just tendered his resignation over this issue (Greenspan got out of the way just prior to the subprime blow-up).

I hope you can take a couple of minutes to review this DW interview which aired on "60 Minutes" last year.

David Walker: US Government Immorality Will Lead to Bankruptcy

Why "shoe-in" Martin Feldstein was passed-over for the office of Federal Reserve Chairman

Does this thread have any thing to do with this news report from today.
March 29, 2008?

news.yahoo.com...

[edit on 29-3-2008 by Howie47]

Our biggest problem is we live with a fiat currency system combined with a debt based monetary system. The money is backed by nothing and new money is only brought into existence when someone borrows it and it disappears as soon as it is repaid. In order to keep the economy afloat banks must lend money. Interest makes it impossible to repay because only the principal ever gets created. In order for me to repay my debts with interest one of my neighbors must default on theirs because there isn't enough money in the economy for both of us to repay. When borrowing slows down, the money supply shrinks and more people are forced into default simply because there are now more people chasing less money. You can't pay a $100,000 debt when there's only $2,000 in circulation and hundreds of other people trying to get a piece of that money. Watch this

video.google.com...

Originally posted by Cynic
reply to post by forestlady

 

Well my American cousins, you are always welcome to come to Canada and live your lives as contributing members of the planets' most enjoyable capitalist socialist state! The best of everything is here, healthcare, clean air (anywhere but Southern Ontario) high taxation, long winters, and gorgeous sunsets. Come on up! Most of us are retiring soon, and we need replacement workers to pay our pensions! Never mind Uncle Sam, WE need you.

[edit on 29-3-2008 by Cynic]

Ummmm..the United States is Canada's principal trading partner. If we go, so do you.

reply to post by CPYKOmega


well...It would be an option but, I need a passport from the guest...errr.. anyways.. I just rather not go that route..

US Federal Reserve latest H3 report - Non borrowed reserves increased by a factor of three.

61 billion dollars in the negative. Oh man.

www.federalreserve.gov...


The bigger the bubble the harder the fall will be.


[edit on 8-4-2008 by worried08]

Even though I do believe there will be a hyper-inflationary-ish component to this economic crisis I believe we will end up with a deflationary collapse. Why? Well if hyperinflation ensues and you have fixed credit lines you are able to pay off that line with less valuable dollars. In the end the banks still end up with tons of money but that money is actually less valuable because of currency devaluation. In a hyperinflationary environment there may be winners outside of the banking system. In a deflationary collapse the banks end up with all the money and all the assetts (ie great depression 1). By itself the FED does not have the power to create a deflationary collapse. It needs the help of Congress. The FED only sets the short term rate that banks loan to each other. The bond market sets long term interest rates.

How? Have Congress continue to bail out banks, homebuilders, insurers, borrowers, and anyone else coming hat in hand. This exponentially increases the nations debt. At some point (due to capital flight and bond market fears about the Gov's abillity to service the debt) the bond market is certain to collapse causing interest rates to skyrocket then causing massive unemployment due to businesses unable to secure affordable lines of credit to operate. Banks then forclose on people who have lost their jobs and end up with most of the assetts of the population (ala 1930's land bank) as well as a now strengthened currency. Congress cannot sit idly by while the economic condition deteriorates, they have to be seen doing something. They can't encourage the populace to reduce debt, save more, and spend less because the economy is so dependent on consumption. By rubber stamping the Bear bailout they've set the precedent for more bailouts. Watch the Kennedy/Bernake exchange at the Bear Sterns hearing. Kennedy presses Bernake for a recomendation on what steps Congress can take to alleviate some of the problems. Bernake refuses to take the bait (he knows what's coming and wants to be able to blame congress).

Still wrapping my head around this and I could easily be wrong, but I think the possibility of a short hyperinflationary environment followed by a deflationary collapse could happen with the conditions that are currently here.

BTW i believe that that negative number in the FED's balance sheet is the stuff they've loaned out in these new facillities (TAF etc).

Well, it is getting a little better. Now we are only 90 billion in the hole as far as reserves.
Hopefully the FED will be reversing this.

www.federalreserve.gov...

I don't want to be a nut here however I can see a join the militray campagin and that will solve all your problums. or is it that I am crazy here could this be a way for the goverment to bolster allready pore numbers in the military? could this be a way for total control? who knows just a thought.

Originally posted by CPYKOmega
I knew it was bad in the US but not this bad. Every thread I read 99% of the people posting are in the same situation! I wish there was something I could do to help you guys.

Have you ever thought about moving to Canada? We seem to be doing pretty good right now. I know I am. Is that an option for anyone here?

What??? Why would you want to export this problem TO Canada?? We have enough of our own problems as it is. You elect someone like Bush, and this is what you get. I'd advise those of our suffering southern neighbours to thank eveyone they know who voted for Bush personally for their predicament. There is no greener grass up here - best to deal with your own mess at home...

Best of luck.

J.