Odd how that's about the exact point that Fed Funds Rate chart start running right along the bottom of the chart too
Hmmm...... I wonder why we are experiencing inflation
Thomas Jefferson...
- Thread starter cam_blev
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Hmmm...... I wonder why we are experiencing inflation
So if I understand it, the banks were bailed out from the bad loans they made during the housing bust by Uncle Sam (ie: taxpayers) but did they reimburse depositors for those losses they created?
Just trying to understand who actually covered those losses and where did that money come from?
Just trying to understand who actually covered those losses and where did that money come from?
They are always increasing the debt. That is why we have inflation. It isn't banks doing this though. Banks take advantage of the rules we write for them via our elected representatives
The Central bank through the Treasury (Fed) controls M1 does it not? Who does it give that money to? (which is just printed when the debt ceilings increase?)
Yes this is true, but it's not a problem as long we pay for what we're borrowing. That's the problem. They increase the debt authorization to borrow more $$$$$$ with no reasonable expectation of repaying the additional money they borrow! We get stuck with the bill AND the resultant inflation from increasing the money supply. Banks get the free money at virtually no cost, then turn around and lend it out at confiscatory rates.
Taxpayers don't get the benefit of their investments, are forced to cover their losses...and aren't even consulted on their strategies with the cheap cash they're provided at our expense. They get away with it because we let them, but even if we could control how banks invest their assets, we are powerless to tell the Fed how much money to supply to M1 or when to stop?
They simply make it up as they go along, and we see the results of their reckless behavior.
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It lends money to members. Banks or other depository institutions. I don't think the money is usually printed. It is digital numbers. That is probably a large piece of the problem.
Translation: They just run up more debt, and charge us (taxpayers) with the bill. You are correct though, it's the way the law is written, and why we allow such a Ponzi scheme with our money is just beyond me.
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They who you keep referring to get all their power from our elected officials.
The only way it is fixed is educating voters and electing people who will change policies.
Instead we elect people because of clever commercials, debate one-liners and because of partisans debating on opinion programming.
Yes, the overnight Fed funds rate is ridiculously low, and what do banks pay on most depositor's assets? The real question is what do they do with the profits those investments generate? Share it with their investors, depositors? Offer free services, lower mortgages? Or pay off institutional investors who lobby for more favorable treatment in tax code?
You know how this game is played Dave my man!
I agree with this 100%. Our ignorance will kill us if our apathy doesn't first Dave my man.
The rates a bank pays you for your deposit is an agreement between the bank and depositor. This rate is published. What any business does with their profits is between the business and its owners. Any benefits a customer receives from this should be considered before doing business with a bank.
I think most people are happy if the bank takes their direct deposit and gives them a debit card to access their money. That is the basic service most people use a bank for now.
What you said here is true as far as the depositors are concerned. However the bank does not share the profit it earns on the money it's holding for the depositors. They also do not pass on to their borrowers the discount they receive from the FED on the money that they are lended.
I'm not saying it's right or wrong it just is and the depositors and taxpayers come out on the short end of the stick funding the deficit spending created by the Fed funding their member banks.
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Typically, a bank passes on the profit it makes to its shareholders, in the form of dividends. Or, uses the profits for growth by branching or moving into different business sectors. These decisions are made at the discretion of the Board of Directors who are elected by the shareholders and are done under the strict scrutiny of the FDIC and state regulatory body. I think things changed a lot after the meltdown and bail outs which the wall street types caused.
But contrary to popular belief on this forum, most bankers do not spend time using space lasers to light forrest fires or form some cabal to create a new world order where your AR 15 will be confiscated.
I don't think the popular belief here is that bankers are guilty of this....now some politicians?
I think most go into politics to try and do good. Some (a few) stay there because they learn if the sell out to the right people they can collect generational wealth.
Yeah that was mostly TIC but there are more than a few conspiracy and rootin for putin type enthusiasts on this forum and otherwise. I'm friends with many. They believe what they want regardless of the facts. It's interesting.
I have become very jaded. I don't believe much from the media on any side anymore. I don't really have some big desire for Ukraine to beat Russia other than just hirting Russia because I don't think Ukraine is much better. I feel like it's two guys I don't like fighting so I hope they both get mangled. I don't trust much coming from politicians on either side because they both say whatever they need to say.
I believe the things I know for a fact and try to not be duped by the rest.
The last 5 years or so have been pretty eye opening.
What banks pay to their depositors is different from what they pay to their investors/or share holders so we're talking two different things here. However I do agree with the jist of what you said here and the real "problem" if there is one is a lack of transparency over how those dollars flow.
I was around for 5 , 6 and 7 percent CDs I just didn't have any money then. I would dump everything I have in the stock market tomorrow for a 5% cd. I just don't think it's a good thing at this point to double digit home mortgages so it's probably not happening.
The dirty little secret is banks make their money charging fees for services like wire transfers, HELOC loans, credit card services, certified funds, mortgage applications, checking services, overdraft charges, etc.
I don't disparage them for mining as many revenue streams as they legally can, however as I mentioned earlier ITT they don't pass along the discounts they get on their borrowed money to depositors in the form of lower fees for their services. Nor do they share in the windfalls they reap borrowing money cheap, and lending it at four and five times what it cost them.
Nice racket playing with OPM huh?
That chart in post #61 is the hard cold proof why the "record" Biden voters have virtually vanished from this forum and are frankly too embarrased by the performance of that worthless vote to show their posts here "bragging" about how they got scammed.
Useful idiots.
Useful idiots.
Covid was the needle that burst the bubble that they have been pumping since 08. Rates were at 0% for basically 12 years! This is what economics taught in government funded schools teach to kids that grow up to be professors that teach MMT (Modern Monetary Theory)! You wanna talk about socialism seeping into our country this is where is starts! Who ever controls the money and who gits it first when its fresh out of the money printer. Schools and hedge funds that fund ESG ******** and teach Marxism and gander studies
IT ALL STARTS WITH THE MONEY PRINTER!!!
Lower interest rates inherently drive people to live for the now and discount the future by taking on debt that is the reason kids dont appreciate delayed gratification! Higher interest rates incentivizes being conservative and saving your money and building for the future!
The vivid statistics is great ....more covid after the vaccine was forced..lol
According to this chart everything Democrats has done since they've been in charge has turned to **** for us average blue collar workers..
Do you buy a car? Do you buy a home? Did you pay cash for them? If not, then you are also living a "debt life".
The question isn't so much debt per say. It's about the ability to pay it back once it's borrowed. None of us could do what Uncle Sam does. Authorize higher debt limits simply to borrow more money against debts he already can't pay...then just create money to borrow against only to run up the debts even more!
Really?
I have several credit cards. I never max them out. I have a HELOC. I've used both for vacations, Christmas, technology (computers/televisions), etc. I also use a credit card to pay every monthly expense (other than mortgage) because I get % cash back per purchase. So I get a lot of $$$$ back at the end of the year by doing this. Of course, I do pay off the balance each month. But I guess my point is that I carry debt on purchases that I wouldn't deem "necessary" at the time.
Of course, but you just said "I do pay off the balance each month"...so your debts are managed based on what you can afford to pay back.
Uncle Sam doesn't operate like that! His debts are managed by how much additional M1 he can pump into the economy just so he can float more bonds & debt which causes inflation and robs us of our purchasing power!
It's zany, & scurrilous
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I'd imagine a lot of the debt they authorize is backed by some collateral in the form of assets (wealth). I know most banks wouldn't lend any of us anything if we had a pile of debt we weren't paying back or couldn't show an ability to pay back.
Well there 'ya go! At least they were trying to make it look like they had a means to pay back what they were borrowing. Uncle Sam knows he can't pay back the debts he's piling up, so he just authorizes more deficit generating borrowing.
Which candidate for POTUS would you vote for to fix this problem? From what I see, there's ZERO candidates that would change American fiscal policies. Evidence is there to prove that.
Well that's managed debt & wouldn't be a problem. I'm talking about people who charge wants that cant pay for them as you do .
I use a credit card for road expenses then pay it off every month as well, but I have the cash in the bank to pay as I go if wanted. I bought my tractor on credit, but can pay it off if needed. My actual debt to income is nothing. Can pay all my needs in 30hrs of work & I normally work 200 hrs a month. I'm strange I figure everything by the hr ..lmao
I think desantis would help .
None has the balz to do what needs done in my opinion.
We definitely need to stop giving checks out to everyone & every country.
My mom with a 7th grade education said when the rona money was flowing, this is gonna hurt later on .... she wasn't wrong.
I'd vote for a candidate who first recognizes the problem isn't a lack of revenue, it's a lack of fiscal restraint on runaway spending! Then I'd support a candidate who also:
- had/has experience managing multi-billion dollar budgets
- had or has experience running a business or meeting a payroll
- had or has fiscal management skills, and an experienced business team in place to help him manage the Federal budget
- had or has a plan to tackle our growing debt by expanding private sector job growth and cutting wasteful government growth
- had or has a plan to reduce our debt by eliminating government programs
- had or has a plan to relieve businesses of burdensome taxes and regulations
- had or has a plan to make us energy independent so we can manufacture at home
- had or has a plan to pass a balanced budget amendment, and line item veto
- had or has a plan to privatize over 60% of government services
- had or has a plan to private public education
- had or has a plan to reform entitlement programs
- had or has a plan to permanently reduce individual & corporate income taxes
- had or has a plan to repatriate American investments from overseas
- had or has a plan to improve our balance of trade deficits
- had or has a plan to secure our borders and protect American manufacturing jobs
- had or has a plan to encourage small business growth and ownership, which expands our economy
- had or has a plan to keep our armed forces strong, but lean and efficient with modern weapons systems
- had or has a plan to utilize technology to streamline essential government services more efficiently
- had or has the Executive leadership skills to see that agenda implemented and delivering measurable RESULTS
I'd in fact vote for that candidate again if he decides to give that same agenda another shot.
Know who it was/is?
Back at 'ya atl
Run again DJT....run!!!!!!!
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I like a governor who has shown he can run a state positively. Be nice to get a ex governor who has run his own business. Not wanting to see lawyers or senators....
Only my house, my car is paid for and i will run it till the wheels fall off at which time i will have to make a decision. But the reason I do this is because I live in a system that financially rewards me for taking on debt. Why wouldn't I? I take on debt at 4% interest while inflation is at 8% and I pay my bill and the debt I owe will become less over time because the currency is being devalued, BUT the money that I choose to save in (BTC) is deflationary and increases on average 200% a year compared to the inflationary dollar. And they aren't going to stop printing money.
I'd vote for a candidate who first recognizes the problem isn't a lack of revenue, it's a lack of fiscal restraint on runaway spending! Then I'd support a candidate who also:
You say there is/was no such candidate who would that dramatically change American fiscal policy? I 100% disagree with you because we had one who was pursing that exact agenda! That is until the entrenched deep State swamp creatures most desperate to stop it came up with a "plandemic" to stop him and halt that agenda just as it was making a difference in America.
- had/has experience managing multi-billion dollar budgets
- had or has experience running a business or meeting a payroll
- had or has fiscal management skills, and an experienced business team in place to help him manage the Federal budget
- had or has a plan to tackle our growing debt by expanding private sector job growth and cutting wasteful government growth
- had or has a plan to reduce our debt by eliminating government programs
- had or has a plan to relieve businesses of burdensome taxes and regulations
- had or has a plan to make us energy independent so we can manufacture at home
- had or has a plan to pass a balanced budget amendment, and line item veto
- had or has a plan to privatize over 60% of government services
- had or has a plan to private public education
- had or has a plan to reform entitlement programs
- had or has a plan to permanently reduce individual & corporate income taxes
- had or has a plan to repatriate American investments from overseas
- had or has a plan to secure our borders and protect American manufacturing jobs
- had or has a plan to encourage small business growth and ownership, which expands our economy
- had or has a plan to keep our armed forces strong, but lean and efficient with modern weapons systems
- had or has a plan to utilize technology to streamline essential government services more efficiently
- had or has the Executive leadership skills to see that agenda implemented and delivering measurable RESULTS
I'd in fact vote for that candidate again if he decides to give that same agenda another shot.
Know who it was/is?
Back at 'ya atl
Run again DJT....run!!!!!!!
