Fed Warns Congress No More Printing of Money

Originally posted by Silver Shadow
Ben has no real choice.

Someone has to come up with around three billion extra dollars every single day to keep the US government functioning.

That is three billion MORE than the income the government already receives from taxes, excise, fines, and other government income.

The world can no longer support that, and neither can the Fed.

Something will have to be decided really soon.

My guess is the US treasury will start printing dollars itself, outside the Federal Reserve System. Otherwise the game is over.

What do you think would happen if every public servant and government employee stopped being paid. If every business that supplied the government with goods and services stopped being paid ?

[edit on 26/2/2010 by Silver Shadow]

Wouldn't it be funny if the US treasury turned the tables on the fed by prinitng ink onto paper giving it a value and then using it as money to repay the debt to the fed res, it would be as valid as the fed res notes. intrinsically worthless but powerful enough to take the world back.

Originally posted by ReelView
Well there are claims out there that the treasury agents of the uSA have personally told the President of Mexico that the uSA would be on the Gold Standard soon. There where stories not long ago about overseas embassies buying lots of local cash and many other stories. It could be the Fed is gracefully being shut down or trying to intimidate congress. One thing for sure, there is a substantial battle underway behind the scenes and my bets are we're going to see justice return. Amnesty for the massive treason is the intended plan rather than create a civil panic / civil war. Thee are simply way too many criminals in government to make the public aware of what is really going on.

You called it. The Fed is on it's way out. Seems they want to fight all the way out the door. The gold (and silver) standards will return and we will return to a fair based system.

We have quite a road ahead of us before we get back to paradise.

'Yea, though I walk through the valley of the shadow of death, I will fear no evil...'

This isn't anything new. The Fed has been monitizing the debt for some time now and this is just them saying we aren't going to do it anymore. They have achieved what they wanted to achieve and now they are changing course since they feel things are turning around.

Originally posted by parrothead0333
This isn't anything new. The Fed has been monitizing the debt for some time now and this is just them saying we aren't going to do it anymore. They have achieved what they wanted to achieve and now they are changing course since they feel things are turning around.

Your right, it`s not new, but the reason they are turning tail now, maybe it is because they have backed themselves into a corner, and have no way out. They may now feel if they back out, that the system will fall, and they will be off the hook as far as the books go, but they won`t be. As for things turning around? Do what I have done, just look around the area where you live, does it look like it has picked up? Not a bit here, in fact, it is still going down hill. So much for them thinking that.



[edit on 26-2-2010 by FiatLux]

I am a little bit confused here? wasn't it the fed who through fictitious number manipulation put the US and europe in the situation it is in now?

Zeitgeist anyone..................

[edit on 26-2-2010 by franspeakfree]

Originally posted by hoghead cheese

Haven't anyone noticed everytime that we have bond sales that a "mysterious direct buyer" comes in and makes sure that we don't have a failed bond sale (remember Portugal failing a few weeks ago).

So aren't the various fiat backed banks of each country supposed to each print up an equal amount of paper money and buy eachothers debt for the scheme to continue?

Isn't that pretty much the same thing?



[edit on 26-2-2010 by In nothing we trust]

Originally posted by In nothing we trust

Originally posted by hoghead cheese

Haven't anyone noticed everytime that we have bond sales that a "mysterious direct buyer" comes in and makes sure that we don't have a failed bond sale (remember Portugal failing a few weeks ago).

So aren't the various fiat backed banks of each country supposed to each print up an equal amount of paper money and buy eachothers debt for the scheme to continue?

Isn't that pretty much the same thing?



[edit on 26-2-2010 by In nothing we trust]

It's called Hyperinflation within weeks, thats what it's called. Countries who do that are debasing their own currency to the point that they it will cause what I just said not only in their country but the rest of the world also. And many countries work against each others interest in order to game the system so why should they risk going into hyperinflation first or the only one to go just for US or some other country so that they always have a buyer. It's called hiding the process which some countries can do for a little while and others can't. And if these countries where buying the debt of others in bonds all the time we wouldn't have any failures. The buying of your debt via printing of money and you doing it yourself or some other entity under the guise or direction of the same country is essentially robbing peter to pay paul and hopeing that the day of reckoning doesn't come to soon.

Originally posted by hoghead cheese

Originally posted by In nothing we trust

Originally posted by hoghead cheese

Haven't anyone noticed everytime that we have bond sales that a "mysterious direct buyer" comes in and makes sure that we don't have a failed bond sale (remember Portugal failing a few weeks ago).

So aren't the various fiat backed banks of each country supposed to each print up an equal amount of paper money and buy eachothers debt for the scheme to continue?

Isn't that pretty much the same thing?



[edit on 26-2-2010 by In nothing we trust]

It's called Hyperinflation within weeks, thats what it's called. Countries who do that are debasing their own currency to the point that they it will cause what I just said not only in their country but the rest of the world also. And many countries work against each others interest in order to game the system so why should they risk going into hyperinflation first or the only one to go just for US or some other country so that they always have a buyer. It's called hiding the process which some countries can do for a little while and others can't. And if these countries where buying the debt of others in bonds all the time we wouldn't have any failures. The buying of your debt via printing of money and you doing it yourself or some other entity under the guise or direction of the same country is essentially robbing peter to pay paul and hopeing that the day of reckoning doesn't come to soon.

So a loss in confidence in ones own government could spell it's death simply because other countries would feel less secure in buying the debt of a country with significant internal issues.

A government that fails to effectively control it's population becomes a lepar when it comes time for it's debt to be purchased by the others.

You would think that the preferred method to silencing disidents would be bribery instead of intimidation, extortion and blackmail.


[edit on 26-2-2010 by In nothing we trust]

I searched for the past hour but can not find a video of Bernanke warning Congress (cspan cover it?), does anyone have a link or recorded this exchange? (assuming it was televised)

Actually seeing their reactions, expressions and subtle tells, can/would be very interesting and at times, useful.

I've known for a while that the Fed was going to take away the punch bowl in March. Just the knowledge of that has driven up the value of the dollar. Now I'm hearing on CNBC that the Fed can raise rates and still have a much lower than normal interest rate that is still considered a plus for future growth. I read a long time ago that central banks raise and lower interest rates based on the market driven changes in 3 month Treasury bills (the yield) for that given country. I read if you follow that, interest rate changes will be no surprise.

Of course there are already all kinds of possibly real conspiracy theories about how the Fed has already been monetizing the debt and printing money by giving out loans to third parties who in turn really have been pumping up equities since March of 2009. I suspect China would become angry if the US continued to monetize the debt with some new announcement. Of course the only thing the public would likely hear is that China will no longer buy US treasuries. I thought I already read they weren't going to be buying as much. I believe I read Iceland's interest rates shot up to 17 percent. The same or worse could happen here in the US if foreigners suspected that the US might default on repaying the debt.

I had hope that I might be wrong and that a new bull market had started. Instead I'm hearing about more layoffs and economic conditions seem to be slowing back down again. I read today that about 2/3's of the recent economic expansion was due to inventory building. Demand hasn't increased nearly as much. Unemployment will stay high all year.

[edit on 27-2-2010 by orionthehunter]

Well maybe congress needs to put Ron Pauls bill through to audit them and then we can see how knee deep in horse crap we really are. Since they came to power in 1913 it has been nothing but trouble for us. Do these guys really expect that a ponzi scheme operating for almost 100 years is going to last forever? I hate to say it but this house of cards is going to collapse quick as Bernie Madoffs scheme and then who is going to take the blame?

There is no way trillions upon trillions of debt will ever be repaid and with congress continually raising the debt ceiling when will the madness stop? We need to face the music and try and just keep the economy from collapsing, although I can't see how it would happen. Maybe if we start manufacturing goods again instead of outsourcing everything. All these companies take their business overseas to avoid the high costs of taxes and insurance and what are we left with?

We are left with a country who spends way beyond out limits and then on top doesn't produce anything nearly enough to keep our economy at least sustainable. I give it 2 years before tshtf.... I don't want to be around for it but what else can we do?

There seems to be some confusion here by the Fed.

The production of money is needed to fuel an economy. If we still had the same amount of money in circulation that we had in 1820, we would have a major problem. Hence, more money is needed.

How do you know when you have produced enough money?

Inflation.

We don't have inflation. We have deflation. That's why the federal regulators are unable to maintain economic stability and growth.

Prior to the economic collapse caused by Wall Street, there was a significant problem with the regulating of the economy. You may recall how the Fed Res would lower interest rates, but could not create inflation. This was confusing the managers, and showed that they were losing control of the economy.

Greenspan was leaving about this time, and left not knowing the solution to the problem. After the handoff to the new managers, they could not solve the issue with interest rate regulation, so it continued.

Enter the Wall St problem, with bad loans coming due on homes across the US, and you have financial turmoil entering into the mix.

Today, to stop the production of money would be significantly wrong. The only reason I can see that the Fed would stop the production of money is if their 9 month forecast shows inflation coming. If that is the case, expect the interest rates to start climbing in the next few months to stall off inflation.

Therefore, if the Fed is saying they will not create more money, they are already seeing indications that inflation is returning.

Originally posted by Jim Scott
There seems to be some confusion here by the Fed.

The production of money is needed to fuel an economy. If we still had the same amount of money in circulation that we had in 1820, we would have a major problem. Hence, more money is needed.

How do you know when you have produced enough money?

Inflation.

We don't have inflation. We have deflation.

So you are saying that since the population of the world is significantly larger today than it was in 1820 they need to print enough money to meet the demand?

And since there is still a demand for more money the production of money must increase even still?

[edit on 27-2-2010 by In nothing we trust]

Originally posted by Jim Scott
There seems to be some confusion here by the Fed.

The production of money is needed to fuel an economy. If we still had the same amount of money in circulation that we had in 1820, we would have a major problem. Hence, more money is needed.

How do you know when you have produced enough money?

Inflation.

We don't have inflation. We have deflation.

Have you been to the grocery store lately?

Seriously?

When are people going to learn? The Federal Reserve is a Private Bank issuing a worthless currency.

The American people have no "debt" to pay back, if the bankers didn't want to put us in debt they would never charge interest.

But debt is the point:

Modern Money Mechanics.pdf

Seriously, the Federal Reserve needs to be removed.

Fed won't print any more money? Great. Now the government can start printing it's own money, and stop raping the American public with interest made out of thin air!

Will we be getting inflation or deflation ?

People assume that they are exact opposites, and are mutually exclusive.

But they are not opposites, you can have one, the other, both or neither.
In fact they have little to do with each other directly.

Inflation is the erosion of the value of paper money due to overprinting.
It is determined ONLY by the policy of the Fed.

Deflation is the destruction of wealth through assets suddenly becoming worthless. For instance:

Someone that owes you a lot of money dies.
A company that you have invested in goes bankrupt.
The stock market crashes.
The value of your home decreases, because there are no buyers.
Same with other major assets, land, vehicles, boats.

In other words, money or assets you thought you had, just shrink in value or become worthless.

So you can have a crashing property or stock market (deflation) at the same time as the Fed is going nuts printing more money (inflation).

It looks like we will very likely be getting both inflation AND deflation together.

Originally posted by Silver Shadow

It looks like we will very likely be getting both inflation AND deflation together.

Well thats a scary statement.

In our controlled society it could mean that certain people will be selected to receive more money while others are targeted to receive less money.

All based upon the risk/threat level that, that person has been assesed by the government.

Some will be bribed while others are intimidated.


[edit on 27-2-2010 by In nothing we trust]

Originally posted by In nothing we trust

In our controlled society it could mean that certain people will be selected to receive more money while others are targeted to receive less money.

That is exactly what happened during the Great Depression.
While many little people were wiped out, many of today's very wealthy and powerful family dynasties were started back in the 30's.

But the 30's depression was only the collapse of business, commerce, and trade. The money system itself was rock solid. The dollar was gold backed, and silver was in full monetary circulation. It was still pretty bad for the average Joe.

But what is coming will be infinitely worse than the 30's..
Not only business, commerce and trade will collapse, but the entire fraudulent unbacked paper money scam is going to collapse as well.
Than never happened in the 30's.

reply to post by Jim Scott


No, to print more would drop the value even more then it is. Why? Because it`s not that there is not enough, it`s because the bulk of it is setting IN THE BANKS. They are not loaning it out for fear of the public loans not getting paid back. That is why they have made it so very hard for people to borrow, because of that fear.

Oh yes, there is plenty of money, it`s just that you and I will never see it unless the government gets on the banks cases about getting it out to the people. You know...........gotta get the interest money rolling back in again.



[edit on 27-2-2010 by FiatLux]