jakebarnes28 (November 30, 1999 at 12:00 am)

So, the rate of inflation is the hedge on the risk of the Fed just printing money willy-nilly, right?

personova (November 30, 1999 at 12:00 am)

Sal, think in terms of transactions, maintenance of accounts, being maintained by the FED. The banks lend what they want and the FED makes sure they have the appropriate reserves. Think of the FED as being full service. Hmm. Question, when are the reserve requirements verified? Every day? Every quarter? Over night?

mrzack888 (November 30, 1999 at 12:00 am)

so when the FED sell treasuries to China, it won't affect the target rate for US since it is Chinese that are holding the treasuries. if the fed sells treasuies to US customers only, then it would cause a raise in the fed fund interest rate?

hipbas (November 30, 1999 at 12:00 am)

The Fed is privately owned.100% of its shareholders are private banks.There is a guaranteed 6% return to the banker shareholders. These stocks are different to private equity stocks and may not be sold or traded.The banks also get interest from the taxpayers on their "reserves" held at the FED.Taxpayers will be paying annual interest to the banks on at least $700 billion held in reserves.Banks retain these reserves to accumulate interest and then lend on ten times that sum in loans

Myrkul1029 (November 30, 1999 at 12:00 am)

and also the fed doesnt make any surplus, just enough money to keep itself going

Myrkul1029 (November 30, 1999 at 12:00 am)

because it needs some money to fund its expenses ( the ppl working there, the cost of printing money etc..), and the REST it gives back to the state. The goverment IS controling the wealth and money supply, and it needs an institution to do it, it's only a question whether that institution is govement owned or private owned. And from what i understand although it is officialy stated that the fed private owned, it's essentialy govement owned, because the goverment chooses it's board of directors

stefanobetty (November 30, 1999 at 12:00 am)

Fed gets interests on money just printing them??? if Fed is own by the government ok, if Fed is privat...they are a tipografy and get interest on the nominal value of their prints...right?

hipbas (November 30, 1999 at 12:00 am)

Why does the Fed get interest on treasury securities (as assets on their book) when this interest "supposedly" goes back to the treasury as surplus. Isn't this a redundant system? Why can't the government just take over the role of the Fed and control the nations wealth and money supply? Central banks are powerful because they control interest rates which in turn control money supply leading to manipulated economic bubbles and busts and manipulation of the stock market. Abolish the Fed!!!

trotskij4 (November 30, 1999 at 12:00 am)

he actually ment fu..nds

stonecold641 (November 30, 1999 at 12:00 am)

he almost said fuck at 3.42