[RonMN]

Eli is making a huge point here...a point that I've been scratching my head over.

The Fed-Resrv prints the dollar & loans it to the US treasury. That is how a dollar is born...it is loaned into existance.

So what the heck is happening when the US treasury is issuing Treasury notes to "liquify" the fed?

I don't get it (?) Can anybody enlighten me?

[smallpoxgirl]

$this->bbcode_second_pass_quote('StuckInPhilly', 'M')aybe they'll drool on us and drop some rotting flesh here and there but zombies eat brains so we're safe in the US.

[DantesPeak]

$this->bbcode_second_pass_quote('RonMN', 'E')li is making a huge point here...a point that I've been scratching my head over.

The Fed-Resrv prints the dollar & loans it to the US treasury. That is how a dollar is born...it is loaned into existance.

So what the heck is happening when the US treasury is issuing Treasury notes to "liquify" the fed?

I don't get it (?) Can anybody enlighten me?

[Revi]

That new money may look like this:

http://www.amerocurrency.com/support.html

[jbrovont]

This is convoluted. The US promises to repay the Fed x dollars + interest. The Fed takes the promise, and creates money to represent the promised amount, and the Treasury injects the money into the economy (theoretically) as directed by Congress (government gpending).

The Fed (again, theoretically) has a reserve of assets against which it makes these loans. On the loan, in the box that says "Employment and Income," the Treasury writes "about 200 million working slaves."

The Fed looks over the moral of the peons, and if everything looks good, says "ok" and fires up the press.

The agreement is that The US Government has offered your work as collateral for a loan. If you don't work, the US Gov't has agreed to beat you until you're motivated to repay their debt to the Fed. If you still don't pay, they'll put you in prison until you "repay your debt to them."

Caveat: The Fed uses a fractional reserve system when it lends to the Treasury. If the Fed has $100 in "assets," it can lend $1,000 or even $10,000 to the Treasury as long as it's a "good bet." (Peons look happy and they're working hard)

Fed banks also lend to each other internally, and externally directly to the peons that want to pretend they're masters. In this case, the thing the peon buys is the collateral, and the fractional reserve the Fed keeps in its vaults is the asset it uses to back the currency it creates for the loan.

While we can easily keep tabs on how much money the Fed creates for the Treasury, we have no way of knowing how much the Fed has created to lend directly to peons unless they release the information - which they don't.

It's difficult to conceive that the Fed has run out of money to lend and is asking the Treasury to provide it with a "backstop." The only way the Treasury can do this, is by creating and selling a bond. The procedes from the bond could then be handed over to the Fed, placed in the Magical Multiplying Vault, and the streets would again flow with milk, honey and dollars.

The Fed statistics seem to suggest they're backing at around 20 to 1. I may not be reading that correctly, but it's close.

I assume the "non-borrowed" column represents the value of reserves owned outright, minus the value of reserves they have leased "borrowed" to lend against. It could also mean the total reserves not lent against. I'm not sure.

The data is pretty cryptic, but superficially we see that the Fed has $-122,367,000,000 of "unborrowed" reserves. Again, I think that's an odd way of saying that they're exposed for $122B in loans against their reserves, or it represents how short they are on reserves compared to how much they should be holding for the amount of money they have created. It also looks like they are claiming $841,771,000,000 in "money supply."

M1 and M2 data for this period are in the ballpark of $1.39T and $7.713T respectively.

Can anyone help put this puzzle together? I can't seem to find a relationship here. There's a roughly $54 billion difference between the M1 supply figure and the "money base" figure on their reserve data sheet.

This should be:

total reserves + currency stock (M1?) + deposits and vault cash.

Odd. Any help would be appreciated.

$this->bbcode_second_pass_quote('RonMN', 'E')li is making a huge point here...a point that I've been scratching my head over.

The Fed-Resrv prints the dollar & loans it to the US treasury. That is how a dollar is born...it is loaned into existance.

So what the heck is happening when the US treasury is issuing Treasury notes to "liquify" the fed?

I don't get it (?) Can anybody enlighten me?

[seldom_seen]

This is one of the scariest things I've read in a long time:

$this->bbcode_second_pass_quote('', 'O')ur banking system is a safe and a sound one. The American people can be very, very confident about their accounts in our banking system.

Henry Paulson 09/15/08

[ki11ercane]

$this->bbcode_second_pass_quote('Eli', '')$this->bbcode_second_pass_quote('', 'B')ut Americans are justified to be worried, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a "slow-motion run on retail banks" occurring nationwide.

That "run" could accelerate as people realize the FDIC fund has about $50 billion to "insure" about $1 trillion in assets at the nation's financial institutions, says Roubini. "They're going to run out of money" unless Congress acts soon to recapitalize the FDIC.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('ki11ercane', '
')I wonder what would happen if say 50% of the U.S. population simply chose to work only enough to not get taxed at the end of the year, and say the other 50% freely elected to disconnect themselves from all forms of indirect taxation. (reduced consumption, less fuel purchased, etc.) Wonder if the Fed would simply point a gun at the U.S. Citizen and say "consume and work or die."

It truly indeed would be a quiet revolution.

[Eppo]

$this->bbcode_second_pass_quote('EnergyUnlimited', '
')They could try to sell Alaska back to Russians (or to Chinese), they would sell Texas to Mexico

[ReverseEngineer]

$this->bbcode_second_pass_quote('EnergyUnlimited', '
')
In your scenario you would simply see US bankruptcy.

Civil uprisings, revolution, collapse of law and order, collapse of law enforcement, military etc.

They could try to sell Alaska back to Russians (or to Chinese), they would sell Texas to Mexico and they would switch off light and close the shop.

No one would try to force you to consume, but if you have some debt, you could well find yourself sold as a slave to China at some point.

[CrudeAwakening]

$this->bbcode_second_pass_quote('RonMN', 'E')li is making a huge point here...a point that I've been scratching my head over.

The Fed-Resrv prints the dollar & loans it to the US treasury. That is how a dollar is born...it is loaned into existance.

So what the heck is happening when the US treasury is issuing Treasury notes to "liquify" the fed?

I don't get it (?) Can anybody enlighten me?

[ReverseEngineer]

$this->bbcode_second_pass_quote('CrudeAwakening', '')$this->bbcode_second_pass_quote('RonMN', 'E')li is making a huge point here...a point that I've been scratching my head over.

The Fed-Resrv prints the dollar & loans it to the US treasury. That is how a dollar is born...it is loaned into existance.

So what the heck is happening when the US treasury is issuing Treasury notes to "liquify" the fed?

I don't get it (?) Can anybody enlighten me?

[peripato]

$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('CrudeAwakening', '')$this->bbcode_second_pass_quote('RonMN', 'E')li is making a huge point here...a point that I've been scratching my head over.

The Fed-Resrv prints the dollar & loans it to the US treasury. That is how a dollar is born...it is loaned into existance.

So what the heck is happening when the US treasury is issuing Treasury notes to "liquify" the fed?

I don't get it (?) Can anybody enlighten me?

[ki11ercane]

$this->bbcode_second_pass_quote('Eppo', '')$this->bbcode_second_pass_quote('EnergyUnlimited', '
')They could try to sell Alaska back to Russians (or to Chinese), they would sell Texas to Mexico

[Jotapay]

$this->bbcode_second_pass_quote('ki11ercane', '
')I have a friend in California who says Texans sometimes refer to themselves as Northern Mexico. Is that supposed to be a joke in a negative or positive?

[AgentR]

$this->bbcode_second_pass_quote('Jotapay', '')$this->bbcode_second_pass_quote('ki11ercane', '
')I have a friend in California who says Texans sometimes refer to themselves as Northern Mexico. Is that supposed to be a joke in a negative or positive?

[Jotapay]

$this->bbcode_second_pass_quote('AgentR', '
')Xenophobia aside....

[AgentR]

Its an excuse really... so much 'they'... with broad brush strokes sweeping the field. Many anglos are not integrated into society, nor pay taxes, are horrible drivers who drive without health and auto insurance. ER's are filled with indigent people of all sorts, all of whom are entitled by the TEXAS CONSTITUTION to adequate health care. Big families are not anathema, and health insurance is a tool not available to many large families with or without citizenship.

"They", and I despise that pronoun with a passion in discussions about things like this, do seem to have somewhat more cliquishness than other groups within the US; but I wonder how much of it is worry about being consumed by our own "wealth greater than family" lifestyles.

As to language skill, they seem equally able to learn English as anyone else; whether they choose to USE English much is another matter, but that is not that different from other overseas cliques that exist in Texas.

Schools are largely paid for with property taxes, if you own property, you pay, if you rent, you pay via your rent through your landlord. Not sure how being Mexican makes you immune to this process.

PS: Their children speak English perfectly fine. They may however, be entirely uninterested in speaking English to you.

[Cid_Yama]

AgentR,

I agree. Texas was once Mexico. The reason there are so many Hispanics is, THEY were here first.

And don't forget the indigineous American Indian population.

Anglo Texans would rather believe the myth of an Anglo-Republican state, suffering as a result of those miserable little non-anglo immigrants.

[nobodypanic]

swelling the labor pool w/illegal aliens depresses the wages of the most vulnerable portion of our population so that greedy F'ers can extract more of a profit. not only do they screw the american worker, but they also screw the poor illegal (who is simply trying to achieve a better life) by exploiting him in near slave labor conditions.

don't blame the illegal, blame the extortionist buisness owners that hire them. if you'd line those buisness owner punks up against the wall for such crimes, the illegals wouldn't come here in the first place.