Fed made $9 trillion in emergency overnight loans

Well it's a shame the news media and people in general spent so much time blathering on about whether Obama was Muslim or where he was born instead of focusing on the things that really mattered. It's a lack of oversight and regulations that allowed banking monopolies to dictate to the government the terms of their own bailout, and instead of repudiating these policies we jump right back into bed with the same lawmakers that enabled them.

Case in point, Ohio's new governor is a former Lehman Brothers CEO. Care to guess which way the new banking regulations will go?

reply to post by Dance4Life

The FED does not print money. Treasury prints money, the FED buys this in an open auction format just like you or I could participate in. I am not sure how you are coming about this information.

We are not talking about dollar bills (currency) we are talking about money, or more specifically Fiat money.

What is the difference between Money and Wealth?

In TheThe Wealth of Nations, Adam smith defined wealth as "the annual produce of the land and labor"..Wealth creation is combining materials, labor, land, and technology so there is an excess for trade to others, that is “a profit” in excess of the cost of production. The theories of David Ricardo, John Locke, John Stuart Mill, and Henry Thornton, in the last three centuries refined the views of wealth and became known as classical economics.

Money: Is Coin, Currency (paper money), and Credit. If the paper money is not backed by gold, silver or other “wealth” it is a fiat currency and only as good as the people's ignorance of its origin.

Federal Reserve notes, and credit is “created” by banks and backed by nothing. Fractional Banking allows private banks to lend out ten times the amount of money deposited see: www.jeremiahproject.com...

Cash and coins is a very small portion of the overall money in the US economy. Banks typically have 3% of their assets in cash in order to meet customer needs. I recently read some where there is only $400/per person in actual cash available in the US economy. This why banks fear BANK RUNS despite the fact that the loans they make are with "Pixie Dust" and not money deposited by Joe Sixpack. There is just not nearly enough physical money printed to cover the banks DEBT to each person.

reply to post by Amagnon

Precious metals are free, un-encumbered pieces of money - it is the archilles heel of the banksters - if you want to find freedom, buy silver - and find ways to trade with it with others for goods and services.

Of course.

That is why they had FDR outlaw the Unwashed Masses right to own gold. That is why the Bankers use GOLD as THEIR reserve currency and not the worthless fiat dollar. Silver of course is the other traditional reserve currency. Someone else suggested copper pennies.

reply to post by crimvelvet


My response to you in the last page was not about what "money" is but what the role of the Federal Reserve is and this media hyped 9 Trillion dollar figure.

I understand what fractional reserve banking is.

Without fractional reserve banking there would be no such thing as..

1. Home Mortgage Loans

2. Credit Cards

3. Car Loans

4. Checking Accounts

5. Debit Cards

If you really feel that you are ahead of the market you should short the US DX. Many have been burned with the same idea as you though. That includes me.

reply to post by Dance4Life

My response to you in the last page was not about what "money" is but what the role of the Federal Reserve is and this media hyped 9 Trillion dollar figure.

I understand what fractional reserve banking is.

Without fractional reserve banking there would be no such thing as..

1. Home Mortgage Loans

2. Credit Cards

3. Car Loans

4. Checking Accounts

5. Debit Cards

Your are supporting the Keynesian view and the bankers Ponsi scheme.

The Fed is not practicing "fractional reserve banking" they are practicing "NO reserve banking" They are not giving you ANYTHING except a contract placing you in debt to them. The "money" or should I say wealth that you are "using" does not come from the banks it is literally STOLEN from every person here in the USA through the incremental devaluation of the currency. That is what Mises explained, as seen in my quote above.

What the banks are actually doing is a breach of contract. There is no consideration given by the banks in return for the mortgage on your property or the obligation you assume with a credit card. My friend just won a lawsuit on that basis and he is not the first.

In Human Action, Mises said that the government's task is to enforce contracts. Among these contracts are contracts for redeeming money-certificates for money metals on demand. He defined a money-certificate a receipt for a money metal that has 100% of the promised metal in reserve. He said that banks should not be favored by the government. They should not be allowed the right to break contracts, which is what a refusal to redeem money-certificates on demand is. "What is needed to prevent any further credit expansion is to place the banking business under the general rules of commercial and civil laws compelling every individual to fulfill all obligations in full compliance with the terms of the contract"
Mises on Money: www.lewrockwell.com...

The crucial question of course is do we need an expanding money supply, and if we do who reaps the benefits.

If you really want to support the Keynesian view, then I would suggest the compromise outlined Here It is very doable and a heck of a lot better that what we currently have. (Greenspan by the way keyed his tweaking of the Fed to the price of gold)

Mises says we do not need an expanding money supply.

"The Return to Sound Money,"
"The first step must be a radical and unconditional abandonment of any further inflation. The total amount of dollar bills, whatever their name or legal characteristic may be, must not be increased by further issuance. No bank must be permitted to expand the total amount of its deposits subject to check or the balance of such deposits of any individual customer, be he a private citizen or the U.S. Treasury, otherwise than by receiving cash deposits in legal-tender banknotes from the public or by receiving a check payable by another domestic bank subject to the same limitations. This means a rigid 100 percent reserve for all future deposits; that is, all deposits not already in existence on the first day of the reform... (p. 448)".

"Now, the gold standard is not a game, but a social institution. Its working does not depend on the preparedness of any people to observe arbitrary rules. It is controlled by the operation of inexorable economic law"

Mises therefore defined money as the most marketable commodity. "It is the most marketable good which people accept because they want to offer it in later acts of impersonal exchange"

Money serves as a transmitter of value through time because certain goods serve as media of exchange. Money transmits value, Mises taught, but money does not measure value. This distinction is fundamental in Mises's theory of money.

Mises was adamant: there is no measure of economic value.


[When]More goods and services are available for purchase. This means that there has been an increase of choices available to people per unit of currency at the newer, lower prices. Probably the best definition of "increase in wealth" is "increase of choices." As Mises says, "such a fall in money prices does not in the least impair the benefits derived from the additional wealth produced" (p. 431). This is not deflation, as he defined it later in his career. This is price competition....


All other schools of economic opinion recommend monetary inflation as the only way to overcome increased productivity's outcome in the macro economy – falling prices – which they proclaim as the goal of production at the micro level: falling prices. They do not believe that the free market endogenously supplies the correct quantity of money to facilitate voluntary exchange... They want Big Brother and the holding company (the central bank) to supply new money scientifically, so that the market pricing process can function properly. This is true of the Keynesians, the monetarists, and the supply-siders. None of them trusts the free market in the area of monetary policy....

If output is rising in a free market, and the money supply is fairly constant, then prices will fall. The market's clearing price is that price which allows a sale in which there are no further buyers or sellers at the sale price. The high bid wins. When output is rising, buyers of money (sellers of goods) increase their bids by offering more goods for sale at the old price. This is another way of saying that prices denominated in money fall, or at least do not rise as high as they would otherwise have risen, had there been no increase in the quantity of goods and services offered for sale. Mises describes this process in his 1951 addition to Theory of Money and Credit, in the essay titled, "The Principle of Sound Money." He speaks of "a general tendency of money prices and money wages to drop" (p. 417). This is not deflation, which Mises defined as a decrease in the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check. Price competition is not deflation.
Mises on Money: www.lewrockwell.com...

Originally posted by GoalPoster

Originally posted by freedish
I'm still trying to figure out why our government is throwing money at everything it can to keep us out of a depression ...

See, that's the part that really makes me feel like spewing up my tuna sandwich . . . the government isn't doing everything t can to keep us out of a depression, they're doing everything they can to make sure their buddies and campaign financiers asses are covered until things turn around. . .

Silly people . . Bailouts are for banks . . . .Unemployed get zilch

As a country, if we go down we should go down togther but apparently that's only how us stupid middle class folks think.

That is correct and another thing, that is 9 TRILLION DOLLARS! Instead of using that money to bailout banks and friends, they could have used that money to reinvent America. That money could have easily helped for single payer and still have money left over. If not they could have used that money to invest in maglev technology for the whole country. Building something like the interstate highway system but for Maglev, that would have put millions and millions to work building this thing. That money could be used to build the next generation in industry (nanotechnology, orbital manufacturing, new power systems etc. etc.). Hell we are throwing away the whole future because we have leaders that want to stay in control and/or in power and their sycophants that want to regress the country back to just religion and guns and thats it.

9 Trillion Dollars, think about what you could have done with that much funding. They could have had a manhattan project for any type of technology or more than one and have it operational (fusion, interstellar/interplanetary propulsion system etc. etc.). We are wasting resources that could have led the US and the rest of the world to follow into the 22nd century and being a 2 planet species. I really feel sad for the US and the people who live in it. Because when the curtain comes down on our empire and we see promises made to us by politicians and religious leaders to be replaced with oppression and dictates then we will see how foolish we where. We took our resources and energy and even spirit of our country and people and used it to keep a handful of individuals in perpetual power while they say it's for your own good.

In slave times in the US they would be told to serve and maintain and take what was happening to them because when they die they will get your reward in heaven. All the US has turned into a plantation and our leaders have been allowing and telling us to sacrifice so that they can have there reward on earth and the servers will have it in heaven. Ask yourself why wouldn't they want to get their reward in heaven and sacrifice now just like the regular people. It's real simple and everybody knows it deep down but can't say it. And that is we've been told and taught something that we truly don't know and nobody knows, and that is the descriptions and what will happen may not be the way we think it is when we die. In essence religion of the form taught to us may be just a bunch of stories that others used to control others nothing more.

reply to post by crimvelvet


Let me tell you something. The 6+ years I spent studying these subjects among others in summation yield very few memories other than statistics. Here are a couple things that will never be wrong.

1. Everyone's opinion

2. Hindsight is always 20/20

3. All theories work on paper until tested in real world applicable situations

I can't tell you if these theories will be right or wrong. No one can. There is no right or wrong answer. Everything is always an experiment without the clarity of hindsight. You could be horribly wrong about all assumptions even though it looked great beforehand.

In the end, don't get too bent out of shape about all of this. It isn't worth it, and you are also probably missing a lot of details as well, unfortunately.

reply to post by hoghead cheese


It isn't really 9 trillion. That is a fabricated number from the media to sell advertising.

There could have been a lot done with the other money in reality, yes. But not in the timespan that these loans were made and subsequently sent back through the system.

Any bank is going to accept massive leverage with no cost 24/48 hours. This whole situation is really over-hyped pertaining to this "9 Billion" mystical figure.

If you do some digging on your own through the internet you will come to this realization as well.

Originally posted by Dance4Life
It isn't really 9 trillion. That is a fabricated number from the media to sell advertising.

No, it really is 9 Trillion this is not the media selling anything

This whole situation is really over-hyped pertaining to this "9 Billion" mystical figure.
If you do some digging on your own through the internet you will come to this realization as well.

I did and I just showed you it was 9 Trillion, now stop spreading disinfo

has anyone come up with an answer on why we haven;t had inflation yet since we are printing money non stop?

Like beating a dead horse though Alex seems to have the Right take on it.....

Whether one likes a fellow or not, when the truth is heard, it rings as clear as a Bell.
May the peace come 'after' the Revolution as a Revelation.

reply to post by zorgon

Although the total numbers appear very large, the Fed never had anywhere near $8.95 trillion of loans outstanding under the program. The loans made under the PDCF were overnight loans, which were rapidly repaid or rolled over into new loans. This inflates the total number because the Fed counts each roll-over as a new loan.

Barclays Capital, for example, is listed as borrowing $14 billion on four different subsequent days in September 2008. It appears that Barclays was rolling over this loan from the Fed on each of those days, rather than taking out new loans. But in the data released by the Fed today, those loans are listed as four separate $14 billion loans. That means that while the Fed made overnight loans totaling $56 billion, the amount outstanding each day was likely only $14 billion.

Clearly, it will take some time to work out exactly how the Fed's programs worked and how much each bank may have had to borrow. Banks that appear to be the biggest borrowers may merely be the most frequent borrowers or those that rolled over their loans for the longest periods. The amounts on the loans and the recipients were released today as part of a treasure trove of data on the Fed's financial crisis emergency lending programs. The Fed's data includes details on more than 21,000 transactions with financial companies and foreign central banks.

Web Link


The only real problem is we live in a society where we derive our knowledge from media headlines. Are you telling me now the FED just lost all this mythical money from overnight loans?

Tell you what, rather than calling people out on a web bulletin board and posting nonsense videos starring Alan Grayson I suggest you actually take the time to look into subjects with greater detail. There are other sources throughout the web as well debunking this number. Perhaps if you take the time to look you will agree.

Have a nice evening.

reply to post by hoghead cheese

...In essence religion of the form taught to us may be just a bunch of stories that others used to control others nothing more....

I have always thought so...

The first son inherits the land, the second son goes into the military, the third son is for the Church....

That covers all the bases does it not?

Originally posted by tothetenthpower


How ludicrous is that?

They lent out 9 Trillion dollars of what I would think is tax payer money, on top of what the government provided them.

AND on top of that some of them didn't even make it.

The corporate take over of America was even worse than I thought.

What are your thoughts ATS?

~Keeper

money.cnn.com
(visit the link for the full news article)

I am outraged. If that money were given to the people, every individual (man, worman, and child regardless of income) would have 30 grand in their pockets which would help the economy way more than Merill lynch or Goldman Sachs. Seriously the US Government deserves to fall apart completely, but please don't confuse the American people for the US Government, they are entirely different.

reply to post by American-philosopher

has anyone come up with an answer on why we haven;t had inflation yet since we are printing money non stop?

I have been wondering about that too. Somewhere in passing I think I read a lot of it went out of the country. I also just saw something here on ATS about a lot of the "bailout money" ending up in Deutsche bank and Credit Suisse. Guess they paid off all their debts with the newly minted play money.

The Mystery of the Missing Currency indicates the "dollar" has been MIA since 1980.

"...Federal Reserve Board economists concluded that individuals over age 18 are holding $18 billion in U.S. coins and cash. That is about $100 per person..." $100??? Heck that barely fills the fuel tank! I never leave the house with less then $2-300 when I head off shopping! And I think they forgot the illegals who deal only in cash. I certainly see a heck of a lot of big rolls at the farmers markets and flea markets.

Since the Dollar is the world reserve currency, it may mean inflation for the entire world is planned. That would explain the hugh amount of money created. Good charts here: US Dollar Money Supply Is Underreported

...The Federal Reserve reports M1 to be $1,716 billion as of February 15th. When deposit currency created by the Federal Reserve is added to the traditional definition of M1, M1 after adjustment is actually 170% higher at $2,918 billion. Its annual growth increases to 29.5%, nearly 3-times the rate reported by the Fed and more importantly, is an annual rate of growth in the quantity of dollar currency that is approaching hyperinflationary levels.

This restatement of M1 explains why crude oil is back at $80 per barrel; copper is $3.25 per pound; and commodity prices in the main are rising in the face of weak economic conditions. The US dollar is being inflated and worryingly, the rate of new currency creation is approaching hyperinflationary levels. Unless the Federal Reserve changes course, the US is headed for a deposit currency hyperinflation like those that plagued much of Latin America in the 1980s and 1990s....

Another article to give you sweet dreams: US money supply plunges at 1930s pace

Darn if I know what they are up to but it sure makes me nervous.

The great Robber Barons of the last century are looking down upon their progeny with pride,
but also, perhaps, with a little bit of shame...

After all, their old deeds are meager in comparison to what their children have accomplished

ILLUSION

il·lu·sion (-lzhn)
n.
1.
......a. An erroneous perception of reality.
......b. An erroneous concept or belief.
2. The condition of being deceived by a false perception or belief.
3. Something, such as a fantastic plan or desire, that causes an erroneous belief or perception.

If I had to use the word in a sentence, it would be :

The entire monetary system, on which we have come to rely, is an ILLUSION.

In 2010, money doesn't exist. Everything we do on a day to day basis is merely an electronic entry; a series of 1's and 0's on a hard drive. There's not enough paper money, as worthless as it is, in existence to cover what's owed, every single day, around the world.

Once you wrap your head around that fact, the rest becomes clear.

It's a scam. Always has been. Always will be.

It keeps you where you are and them where they are.

One day, we, as a society, will figure that out. Until then? This phony boom/bust cycle will continue to enrich the upper 1% of the population at the expense of the "lower" 99%.

Originally posted by Nyteskye
One day, we, as a society, will figure that out. Until then?

No society will never figure out the scam because they won't even watch the video posted on page one showing how it works

They LIKE being Sheeple and as sheeple they get FLEECED It is the way of things... we cannot all be Shepherds]

Originally posted by zorgon

Originally posted by Nyteskye
One day, we, as a society, will figure that out. Until then?

No society will never figure out the scam

because they won't even watch the video posted on page one showing how it works

They LIKE being Sheeple and as sheeple they get FLEECED It is the way of things... we cannot all be Shepherds]

I know, I know. Sad, isn't it? I just keep hoping for critical mass...one day? Maybe?

I'll say one thing though - at least for now, we have the Internet. The single most powerful informational tool in the history of humanity. So long as we don't allow it be shut down or muted, there's at least hope.