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Posted: 5/28/2016 11:02:23 AM EDT
http://finance.yahoo.com/news/the-federal-reserve-s--4-3-trillion-ticking-time-bomb-121801977.html
Currently, the Fed pays 0.50% annually to banks to keep that money out of the economy. It might not seem like much, but the comparable rate paid by the U.S. Treasury for T-bills is 0.28%. In other words, the Fed pays banks nearly twice as much as the Treasury does. But the Fed refuses to acknowledge this. Each year, the Fed Chair is required by law to testify twice in front of Congress. Both Ben Bernanke and Janet Yellen have used the word, “comparable,” to assert disingenuously that the Fed is paying an amount of interest similar to what banks could earn in the marketplace. It’s possible to “compare” apples to oranges, but it doesn’t mean they’re similar. |
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People keep saying this, but the can manages to get kicked even further down the road. We shall see. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. |
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If you think about it, they can keep the game going for quite some time, just by diluting the current currency. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. Coincidence that the fed has done nothing during the reign of FBHO? I dont like Trump but he has the nuts to end the charade that the FED is apolitical. |
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But the GDP was revised upwards!
Jobs report will show an improvement in the economy! All is well! |
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Once this all collapses everybody will realize that the Fed had no clue; they made it up as they went along.
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People keep saying this, but the can manages to get kicked even further down the road. We shall see. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. IMO, it depends on who gets to run the govt next. Dems, they will patch it back together for another 4-8 years. Repubs, they will throw a bottle of gas with a lit rag stuffed in it over their shoulder on the way out the door. |
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I keep a 1 million dollar Zimbabwe bill in my pocket to illustrate exactly this.
You cannot inflate your way to prosperity. |
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Can has reached the end of the road View Quote This is the government we're talking about. They just bust into the houses on the roads with guns, steal anything of value, throw the owners into jail, and use what they stole to pave the road further. "Nothing to see here, move along... " |
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If you think about it, they can keep the game going for quite some time, just by diluting the current currency. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. yep When I was young I thought the end was coming.Once I got older,I realized they have plenty of tricks to play to keep the game going. |
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But the GDP was revised upwards! Jobs report will show an improvement in the economy! All is well! View Quote It's funny that nobody wants to acknowledge that O'fuckface is the first president in modern history to not have at least one year of annualized GDP at 3% or better. Yet the economy is recovering and doing well. |
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yep When I was young I thought the end was coming.Once I got older,I realized they have plenty of tricks to play to keep the game going. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. yep When I was young I thought the end was coming.Once I got older,I realized they have plenty of tricks to play to keep the game going. of course they do, and will. I still haven't figured out why commers want to see the U.S. burn down. |
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But the GDP was revised upwards! Jobs report will show an improvement in the economy! All is well! View Quote Funny that we have nearly 22% unemployment by the REAL numbers. They only report active job seekers. But, I think they can keep kicking the can down the road for at least a couple more decades. |
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If you think about it, they can keep the game going for quite some time, just by diluting the current currency. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. Yes, yes. I think that's why a lot of people here post that we are going to have a slow descent rather than a sudden crash. Year after year people will find it harder to make ends meet and the standard of living slowly goes down. |
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Yes, yes. I think that's why a lot of people here post that we are going to have a slow descent rather than a sudden crash. Year after year people will find it harder to make ends meet and the standard of living slowly goes down. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. Yes, yes. I think that's why a lot of people here post that we are going to have a slow descent rather than a sudden crash. Year after year people will find it harder to make ends meet and the standard of living slowly goes down. I think this is most likely even though a hard reset might be less painful in the long run. The government and the Fed have painted themselves into a corner with no actual strategy on how to get out. |
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People keep saying this, but the can manages to get kicked even further down the road. We shall see. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. A lot of people are going to be surprised when it turns out that no, you cannot in fact keep kicking it down the road forever. The day is coming. The "slow descent" has been going on for about 40 years now. |
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Coincidence that the fed has done nothing during the reign of FBHO? I dont like Trump but he has the nuts to end the charade that the FED is apolitical. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. Coincidence that the fed has done nothing during the reign of FBHO? I dont like Trump but he has the nuts to end the charade that the FED is apolitical. DONE NOTHING???? The FED has printed ever living hell out of the dollar and turn around and monetized that debt by injecting it into Wall Street and buying treasury bills. They single-handedly funded Obama's massive increase in the national debt by doing so. I don't call that doing nothing. |
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$4.3 trillion bond portfolio View Quote The bonds only have a face value of 4.3 trillion because interest rates are effectively zero. As rates rise the face value of this portfolio will drop to match the market yields of comparable risk. Whoever wrote this must have had a sociology degree. Currently, the Fed pays 0.50% annually to banks to keep that money out of the economy. |
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A lot of people are going to be surprised when it turns out that no, you cannot in fact keep kicking it down the road forever. The day is coming. The "slow descent" has been going on for about 40 years now. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. A lot of people are going to be surprised when it turns out that no, you cannot in fact keep kicking it down the road forever. The day is coming. The "slow descent" has been going on for about 40 years now. No the day isn't coming. Prove me wrong. |
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The bonds only have a face value of 4.3 trillion because interest rates are effectively zero. As rates rise the face value of this portfolio will drop to match the market yields of comparable risk. Whoever wrote this must have had a sociology degree. Currently, the Fed pays 0.50% annually to banks to keep that money out of the economy. Won't change. As rates rise the demand for commercial debt will drop. Banks won't be able to loan it out 'on the market' and will keep it in the fed. View Quote View All Quotes View All Quotes Quoted:
$4.3 trillion bond portfolio The bonds only have a face value of 4.3 trillion because interest rates are effectively zero. As rates rise the face value of this portfolio will drop to match the market yields of comparable risk. Whoever wrote this must have had a sociology degree. Currently, the Fed pays 0.50% annually to banks to keep that money out of the economy. Won't change. As rates rise the demand for commercial debt will drop. Banks won't be able to loan it out 'on the market' and will keep it in the fed. So, we have nothing to worry about ? |
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OK, understood
How does this constitute a "ticking time bomb"? |
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Quoted: Quoted: $4.3 trillion bond portfolio The bonds only have a face value of 4.3 trillion because interest rates are effectively zero. As rates rise the face value of this portfolio will drop to match the market yields of comparable risk. Whoever wrote this must have had a sociology degree. Currently, the Fed pays 0.50% annually to banks to keep that money out of the economy. Won't change. As rates rise the demand for commercial debt will drop. Banks won't be able to loan it out 'on the market' and will keep it in the fed. So, we have nothing to worry about ? I say take it with a grain of salt. Jared might be well out of his league and just talking out of his ass so he can appease the contracted amount of articles he has to put out. Or he might be onto something. I'll just refrain judgement unless we have an actual market/economic analyst who can add in on this. |
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When economic pressure manages to finally break down all Oil-dependent tyrannical dictatorships (Iran, Russia, Venezuela), we will see a new era of financial stability brought about by American leadership.
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But the GDP was revised upwards! Jobs report will show an improvement in the economy! All is well! Stock market up (s it?) Unemployment is the lowest since Obama took office. And everyone now has cheap,excellent healthcare as well....................... |
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I keep a 1 million dollar Zimbabwe bill in my pocket to illustrate exactly this. You cannot inflate your way to prosperity. View Quote LOL. When you are the World's Reserve Currency the rules are some what different. Playing in US Dollars is vastly different than playing in Zim Dollars. |
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LOL. When you are the World's Reserve Currency the rules are some what different. Playing in US Dollars is vastly different than playing in Zim Dollars. View Quote View All Quotes View All Quotes Quoted:
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I keep a 1 million dollar Zimbabwe bill in my pocket to illustrate exactly this. You cannot inflate your way to prosperity. LOL. When you are the World's Reserve Currency the rules are some what different. Playing in US Dollars is vastly different than playing in Zim Dollars. Yep,we don't have to add zeros to our money. We keep the same money,it just takes more of them to buy shit. |
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if you think hyperinflation is coming go into as much debt as possible
Pay off that debt with hyperinflated $ = winning |
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The bonds only have a face value of 4.3 trillion because interest rates are effectively zero. As rates rise the face value of this portfolio will drop to match the market yields of comparable risk. Whoever wrote this must have had a sociology degree. Currently, the Fed pays 0.50% annually to banks to keep that money out of the economy. Won't change. As rates rise the demand for commercial debt will drop. Banks won't be able to loan it out 'on the market' and will keep it in the fed. View Quote View All Quotes View All Quotes Quoted:
$4.3 trillion bond portfolio The bonds only have a face value of 4.3 trillion because interest rates are effectively zero. As rates rise the face value of this portfolio will drop to match the market yields of comparable risk. Whoever wrote this must have had a sociology degree. Currently, the Fed pays 0.50% annually to banks to keep that money out of the economy. Won't change. As rates rise the demand for commercial debt will drop. Banks won't be able to loan it out 'on the market' and will keep it in the fed. Goddamn |
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IMO, it depends on who gets to run the govt next. Dems, they will patch it back together for another 4-8 years. Repubs, they will throw a bottle of gas with a lit rag stuffed in it over their shoulder on the way out the door. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. IMO, it depends on who gets to run the govt next. Dems, they will patch it back together for another 4-8 years. Repubs, they will throw a bottle of gas with a lit rag stuffed in it over their shoulder on the way out the door. Yep! Been saying this for yrs! |
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if you think hyperinflation is coming go into as much debt as possible Pay off that debt with hyperinflated $ = winning View Quote The banks will restructure the debt or replace the currency. The congress and president will make it legal. The Supreme Court will determine it is constitutional. |
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The fundamentals are all fucked up. They are keeping it patched together with duct tape and twine at this point.
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Yep,we don't have to add zeros to our money. We keep the same money,it just takes more of them to buy shit. View Quote View All Quotes View All Quotes Quoted:
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I keep a 1 million dollar Zimbabwe bill in my pocket to illustrate exactly this. You cannot inflate your way to prosperity. LOL. When you are the World's Reserve Currency the rules are some what different. Playing in US Dollars is vastly different than playing in Zim Dollars. Yep,we don't have to add zeros to our money. We keep the same money,it just takes more of them to buy shit. An unacknowledged tax on the rest of the world. Only the Fed (like it or not they are OUR bankers) can dick with the US dollar. Everyone else in the entire world must deal with our currency manipulation because the US dollar is the World's Reserve Currency. It is a sweet deal for us in the US. Let's keep it this way. Having the Ruble or the Yuan as the Reserve Currency would totally suck balls for the USA. |
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Yes, yes. I think that's why a lot of people here post that we are going to have a slow descent rather than a sudden crash. Year after year people will find it harder to make ends meet and the standard of living slowly goes down. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. Yes, yes. I think that's why a lot of people here post that we are going to have a slow descent rather than a sudden crash. Year after year people will find it harder to make ends meet and the standard of living slowly goes down. And we will continue to hear the income inequality crap, the $15/hr min wage crap, the "the working man just can't get ahead" crap until the next Bernie Sanders comes along and actually does get elected claiming that the only thing that can save the country is socialism. We will be Venezuela within 2 decades. |
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yep When I was young I thought the end was coming. Once I got older, I realized they have plenty of tricks to play to keep the game going. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. yep When I was young I thought the end was coming. Once I got older, I realized they have plenty of tricks to play to keep the game going. It's amazing it's lasted this long, but the reason diluting the currency has a limit is because it's debt-based. It's a distinction of unfair v. unsound. If gold was still money, and the Fed had a monopoly on it (like they do with dollars), it would actually be sound. The Fed couldn't just easily print gold; they would have to mine it. Dollars are both unfair (whoever gets the new money first wins) and unsound (little or no cost to print another sheet of paper). This distinction is why all debt-based currencies collapse under their own weight (as explained in this video at 12:48): https://youtu.be/iFDe5kUUyT0?t=12m48s The Fed (and by extension America) can do what it does at this point because the dollar is the world's reserve currency. This was nothing more than a trick played on the rest of the world. The faster they print, the faster the dollar dump will arrive. The rest of the world jumped in on the dollar bandwagon, they can just jump out. |
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An unacknowledged tax on the rest of the world. Only the Fed (like it or not they are OUR bankers) can dick with the US dollar. Everyone else in the entire world must deal with our currency manipulation because the US dollar is the World's Reserve Currency. It is a sweet deal for us in the US. Let's keep it this way. Having the Ruble or the Yuan as the Reserve Currency would totally suck balls for the USA. View Quote View All Quotes View All Quotes Quoted:
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I keep a 1 million dollar Zimbabwe bill in my pocket to illustrate exactly this. You cannot inflate your way to prosperity. LOL. When you are the World's Reserve Currency the rules are some what different. Playing in US Dollars is vastly different than playing in Zim Dollars. Yep,we don't have to add zeros to our money. We keep the same money,it just takes more of them to buy shit. An unacknowledged tax on the rest of the world. Only the Fed (like it or not they are OUR bankers) can dick with the US dollar. Everyone else in the entire world must deal with our currency manipulation because the US dollar is the World's Reserve Currency. It is a sweet deal for us in the US. Let's keep it this way. Having the Ruble or the Yuan as the Reserve Currency would totally suck balls for the USA. It is a sweet deal for the U.S. Our standard of living is financed by the rest of the world. Such things are not meant to last forever. The rules are somewhat different, but not in a good way for the U.S. Inflating all those dollars and exporting them only means that when the mechanism is reversed (confidence lost and dollar dumped), that many more dollars are going to flood into the U.S. like a tsunami. The financing we enjoyed will be reversed and then some. True, the rest of the world will hurt, too, because all their paper is backed by the dollar, but the U.S. is the worst offender, and will get the short end of the stick. The Fed would love to keep the current situation at play for eternity, but still the debt-based nature of U.S. dollars will cause the rest of the world to replace their dollars when the debt overpowers the currency and confidence is lost. |
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And we will continue to hear the income inequality crap, the $15/hr min wage crap, the "the working man just can't get ahead" crap until the next Bernie Sanders comes along and actually does get elected claiming that the only thing that can save the country is socialism. We will be Venezuela within 2 decades. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. Yes, yes. I think that's why a lot of people here post that we are going to have a slow descent rather than a sudden crash. Year after year people will find it harder to make ends meet and the standard of living slowly goes down. And we will continue to hear the income inequality crap, the $15/hr min wage crap, the "the working man just can't get ahead" crap until the next Bernie Sanders comes along and actually does get elected claiming that the only thing that can save the country is socialism. We will be Venezuela within 2 decades. We are already in the slow grind. It's been happening for the past 30 or 40 years. They've exhausted every trick they have, and that's why interest rates cannot rise without a corresponding correction in the entire financial system. It always goes slow, slow, slow, and then BAM! all the bending they did breaks the economic laws they tried to overpower. A case for why this major, catastrophic event will likely be during the term of the next U.S. President is made here: http://www.ar15.com/forums/t_1_5/1862870_.html&page=1 |
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Looks like a possible rate high is on the horizon. The media ia chirping on the good economic news released.
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It's amazing it's lasted this long, but the reason diluting the currency has a limit is because it's debt-based. It's a distinction of unfair v. unsound. If gold was still money, and the Fed had a monopoly on it (like they do with dollars), it would actually be sound. The Fed couldn't just easily print gold; they would have to mine it. Dollars are both unfair (whoever gets the new money first wins) and unsound (little or no cost to print another sheet of paper). This distinction is why all debt-based currencies collapse under their own weight (as explained in this video at 12:48): https://youtu.be/iFDe5kUUyT0?t=12m48s The Fed (and by extension America) can do what it does at this point because the dollar is the world's reserve currency. This was nothing more than a trick played on the rest of the world. The faster they print, the faster the dollar dump will arrive. The rest of the world jumped in on the dollar bandwagon, they can just jump out. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. If you think about it, they can keep the game going for quite some time, just by diluting the current currency. yep When I was young I thought the end was coming. Once I got older, I realized they have plenty of tricks to play to keep the game going. It's amazing it's lasted this long, but the reason diluting the currency has a limit is because it's debt-based. It's a distinction of unfair v. unsound. If gold was still money, and the Fed had a monopoly on it (like they do with dollars), it would actually be sound. The Fed couldn't just easily print gold; they would have to mine it. Dollars are both unfair (whoever gets the new money first wins) and unsound (little or no cost to print another sheet of paper). This distinction is why all debt-based currencies collapse under their own weight (as explained in this video at 12:48): https://youtu.be/iFDe5kUUyT0?t=12m48s The Fed (and by extension America) can do what it does at this point because the dollar is the world's reserve currency. This was nothing more than a trick played on the rest of the world. The faster they print, the faster the dollar dump will arrive. The rest of the world jumped in on the dollar bandwagon, they can just jump out. Nice simple explanation in that video but most will not care.. I enjoyed Ron Paul's End The Fed and G. Edward Griffin's The Creature from Jekyll Island. |
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Zimbabwe hasn't fallen apart yet and the U.S. has far better printing presses.
Posted Via AR15.Com Mobile |
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Nice simple explanation in that video but most will not care.. I enjoyed Ron Paul's End The Fed and G. Edward Griffin's The Creature from Jekyll Island. View Quote Amazing how simple it is, huh? People do not care right now, because right now everything seems fine. New ideas have no momentum at the moment, but they will. When we get South American-style rationing, people will be curious as to wtf is going on. Perhaps there will be a national opportunity for spreading the word for a sound monetary market. Perhaps some of us will lead it :) |
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They just find a fork in the road, and kick it in another direction down another road
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People keep saying this, but the can manages to get kicked even further down the road. We shall see. View Quote View All Quotes View All Quotes Quoted:
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Can has reached the end of the road People keep saying this, but the can manages to get kicked even further down the road. We shall see. |
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