Silver bashers and history

There isn't an hour in the day, that when you turn on the tube, someone is selling "gold". I believe it's like what Guy states. People are buying because of fear. And I too believe that all these little guys buying in will ultimately crash the market when things start to turn.

 

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I segest you please read the "Federal Reserve Act of 1913" Congress passed the act with Woodrow Wilsons signature. I want you to do that if you could.
It puts the private, Central banking system (up to 12 regional banks) incharge of printing and pushing money. All they do is, when asked to print more money. They say, yes sir! How much you want sir? 800 billion is fine... for today... And they print. But they also charge intrest for every dollar made. This act was set up in 1910 by, Paul Walberg,Frank Banderlip,Benjamin Strong, and several others.
Bottom line, it's true. It is a privite Bank that has shareholders. The US treasury must pay 6% to make every dollar to the Federal reserve.

I was surprised when i researched, and read this act.

 

The Fed does not print the money. Maybe you are referring to the transaction whereby the Fed purchases US Treasury securities. They don't charge interest on it. They collect interest on the Treasury securites the own [just like everyone else] and earn fees for the other services they provide to member banks. The "shareholders" are member banks who are required to purchse shares to be part of the system. They have no voting power. The Treasury does not pay 6% for every dollar. The Fed pays the US Treasury all of their profits above the 6% dividend paid to member banks on the shares they own. I think you have been reading too many internet articles. Go to the Federal Reserve website for the correct story.

 

Personally, I am glad that these threads have appeared, I learn a lot about economics that I didn't get in college. Of course , when I was in college, silver was backing the USD so these threads wouldn't have existed, even if we did have internet.

 

Yes the Fed does not Print money per se'. It's a little deceiving though. The regional banks print money and use liquid credit. I think we are thinking the same thing. But, in a different way.

I'm sure no expert in the monitary system. So, it's about as far as i can go on that.

I think i've taken this thread onto a highjack...

 

Who cares about class when there was booze and pretty girls...

 

I fear that all the pretty girls have wrinkles now......

 

Ouch... :luckyguy:

 

You are confused at what is going on. It's the Federal Reserve that is responsible for creating the supply dollars, not the US Treasury. The US Treasury can issue dollars in the form of US States Notes but has not done so since 1971. These types of dollars are commonly known as red stamps and are collectible now. The only dollars in circulation now are Federal Reserve Notes. The supply of Federal Reserve dollars are 100% the domain of the Federal Reserve.

If the Federal Reserve needs actual paper money printed, then it contracts with the Bureau of Engraving to print this currency. These dollar bills are then shipped to the Federal Reserve and made available to the US Banking system. The Federal Reserve pays the US Treasury for the printing services. It does not pay them anything for the actual FRNs nor does it pay the US Treasury any interest on what has been printed.

 

I like it too. I've always been sort of an economics/investment junky. Unfortunately, most of the academic side of economics is now dominated by the quants and not by the theory.

 

Yes. Well stated... Ok. Then where the heck did i get the 6% interest part? It really was not out of thin air. But, i'm now confused on that.

 

I'm not confused at all. You are correct that it is the Bureau of Engraving and Printing that makes the FRNs, which is exactly what I said if you read my post. Where people get confused is that they believe the FRNs are just "spent." They are provided to member banks to meet their currency needs, but it has to be purchased by the member banks out of their reserves. So in the strict sense of the term, the printing does not increase the money supply. I think that is the point that many people miss. All of this is on the Fed's website, but people would rather read articles about the Fed than to read the information first hand.

http://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html

 

Member banks of the Federal Reserve System receive a 6% dividend on the shares in their regional Federal Reserve Bank that they are required to purchase to become a member. The shares can not be sold and carry no voting power.

 

The US Mint prints physical money, but the Federal Reserve is who adds zeroes to the bankroll that we the tax payers have to pay back with interest; interest on money that never existed in the first place. Most of the money in existence is only in cyberspace, and there's enough of it to buy everything in the world 10 times over (and that's a dated statistic). All that couldn't have come from existing money if it is a true representation of goods and services. In fact, without debt there would be no money. An analogy I read once has always stuck with me. Imagine a financial system with a bank and only 2 people in the equation. Each of these 2 people takes a loan out of 100 dollars, so 200 dollars enters the market. Since each person owes interest one must lose money in order for the other to repay their debt, and so ensues the vicious cycle.

This video illustrates it better than I can, although I wouldn't go as far as to say that this is the 'absolute truth'. I'm sure someone could drill a few holes in it, but on the whole it makes sense to me.
http://video.google.com/videoplay?docid=-2550156453790090544#

 

Nope. The US Mint does not print any money. The US Mint only produces coins. They do not have anything to do with paper dollars or the virtual equivalent. This is now the exclusive domain of the Federal Reserve which I mentioned above. Furthermore, the circulating coins produced by the US Mint have no legal tender status until they are processed through the Federal Reserve system. The sole exception to this are the relatively small number of precious metal and other collectible coins produced by the mint as mandated by the US Congress.

 

The paper dollars are printed by the Bureau of Engraving and Printing which is a branch of the Treasury Dept, not the Fed. They do for paper what the US Mint does for coins. The only difference is that the paper is "sold" to the Fed at cost and the coins at face value. This is not a big deal since whatever profit is earned by the Fed above the 6% dividend paid to member banks is returned to the federal government.

 

Cloudsweeper, please try to read what was posted before responding. I never said the Bureau was a department of the Federal Reserve. Furthermore I already responded in a previous post how the Federal Reserve creates paper money in response to an earlier incorrect set of statements you made on the subject.

 

All of my statements have been correct and linked back to the sources. I was clarifying your confusing response for the sake of other readers.

 

However, they are so massively in credit that they can afford slow growth or even contraction. As net creditors, they don't need to borrow dump-trucks full of money in order to stay afloat. Even as they accumilate more and more money thanks to their aggressive and protectionist fiscal policies (which for some reason, western countries are either unable or too stupid to retaliate against properly), they are building ghost cities which are providing work for the masses, all funded by trade imbalances with the west, particularly the US. In the short to medium term, China isn't going to suffer economic problems any time soon, they can fill the gaps in their economy with their very ample reserves before they even have to start borrowing.
In the long term, I agree they are probably going to see massive problems, in large part due to the massive demographic time bomb they are sitting on because of their one-child policy, and the fact that the US can't keep running up deficits, trade imbalance, and debt to China indefinately. I'm not quite sure about exactly what is going to happen then, but as the Chinese curse goes, we will be living in interesting times when all this comes to a head....

 

What kindof amazed me here... Is really the lack of knowledge many (includes myself) of who really prints money. Most people would say, US Treasury, US Mint, Fed Reserve.

Someone, should toss up a poll (with the right answer). And see how it goes.