Fed Reserve Fails to Reflate the US Banking System V2

[igorbog88]

People don't seem to care...

....Oh look there - it's a kitty

[icjames777]

great music

[wobblejuice]

Safe guard your wealth,buy gold, move to a stable country like Canada or Brazil.

[wicked1one2]

Wall street sharks still got their 6-7digits bonus.. We are the one who are loosing jobs.

Crisis doesn`t bean in 2008 but in 2007

But do not forget about the INFLATION~!!!!! 2008 and 1929 Its not the same money.

[devin627]

create the problem, react and 'force' the solution (it works with the slaves everytime)

[batgirl791]

that chart terrifies me as much as the war photos. scary!

[conspiracy777]

It's the men behind the bankers that are pulling the strings. Board members of the Fed Reserve are pawns. They know what they are doing, but they don't understand the end game. Most of them really do believe that they are doing what's best for the country. Lining their pockets the entire time.

[extant09]

"If you think central banks know what they are doing, think again"

They know what they are doing buddy. Who do you think the money is being borrowed from?

[settlefornothink]

money is now an old system. We better come up with something better, and fast. lol...

[TJMonster51]

The Venus Project! A resource based economy!

[missebau]

Usch fy fan..

[Eminonna]

la comparativa no tiene sentido si no se incluye una comparativa de consumo, de industrializacion, de progreso en otros niveles. Esa misma diferencia brutal se veria en consumos, en comprars, en creditos en progreso... o sea que si, hay crisis, claro, pero saldremos de esta y no tardaremos.

[Rocky1990]

1929 will pale as to what is yet to come.

[laurensdelange]

Your numbers are not corrected for inflation, however still 800 billion back in the twenties may have been about 20 billion, so yes we do have a problem. Or as I heard a banker say: If you owe me $1000 then you have a problem, If you owe me 800 billion then I have a problem.

People who think that way simply need to borrow more and more to get the lender into trouble and get away with it.

[SaggyBallsMcCain]

The scales are relative. I highly doubt we'll see 24% unemployment like during the great depression. I doubt it'll even pass 10%. We were brought out of the great depression due to (in large part) government spending i.e. New Deal / WWII spending. I would like to see the money we're borrowing now be allocated out differently but there isn't anything wrong with the government borrowing and spending money.

[itulipdotcom]

There isn't anything wrong with the government borrowing and spending money for short periods but if the economy becomes dependent on government spending, as in the US, most of Europe, and Japan, it's a disaster. This crash was caused by the failure of the housing bubble that was created by monetary stimulus.

[SaggyBallsMcCain]

It's not a disaster, its a recession, they happen about every 11 years. The government will spend some money, the fed will keep lowering interest rates, slowly more jobs will be created as a result and finally we'll see growth again. We're also on the brink of new industries, nano, battery, "green" techs will soon spring up over the course of the next decade. I think more restrictions on both lending and trading should be enforced, I personally would like to see the removal of short selling.

[linguini9966]

did you watch the video? In terms of the amount of money borrowed from the Fed to deal with this crisis, the 2008 crash is already TEN TIMES the size of the recession record.

The whole point is that we are dealing with a problem on an entirely different scale than anything we've seen before. Wherever you place blame for this crash - wall st, government, the Fed, lizard aliens - this is a very very serious problem, whose effects are only BEGINNING to be felt.

[80211N]

Running around with your hair on fire won't help. It took a while to get in this mess and will take a little while to get out. Doing the same thing and expecting different results is the definition of insanity. That is why following the Constitution is the shortest path to prosperity and freedom.

[SaggyBallsMcCain]

Also, only about 10% of housing has been effected by the bubble to a point where they're endanger of foreclosure. That in itself isn't enough to cause a recession on the scale that we've seen now. I think deregulation coupled with having a deficit go from $1t to $9t over the course of 8 years wasn't much of a help either.

[80211N]

If the government was at it's constitutional size, it would not need to borrow any money. The problem is the size of government and the number of unconstitutional programs sucking up the money...foreign aid, unconstitutional wars, etc. The other problem is creating money out of thin air with no backing. The FED charges interest on money they create that costs ink and paper and we pay interest on the numbers they print on the paper. What a country!

[s2000r1titan]

Gary North put me onto this. And it's not bad, but it fails to provide the only antidote to the problem there is: Biblical Economics, meaning Austrian Economics with Adam Smith's 'invisible hand'.

Jacob Viner has shown in a very important work that Smith's 'invisible hand' is simply the Christian doctrine of Providence.

The Marxists are consistent: remove God from the Universe, and you replace Him with the very VISIBLE hand of the STATE.

Can anyone suggest a better answer?

[citizenBNW]

The STATE often does things that are not VISIBLE.

To reduce the Austrians or Smith to the doctrine of Providence is intellectually dishonest. Though Smith may have lacked the ability (the science and language did not exist) to describe it this way, I am sure he would spend more time studying chaotic systems than the Bible when it comes to economics.

[s2000r1titan]

I'm sorry but I think you misunderstood. What Marx did was replace Adam Smith's INVISIBLE hand with the VISIBLE hand of the Socialist State. That's all: nothing about what the State does in secret behind closed doors or anything.

This is why Austrian economics is more popular among Christians than any other social group - holding to the Austrian system as being that which the Bible requires.

I don't know what you mean by 'chaotic systems', so I'll leave that one.

[citizenBNW]

Fair enough.

What I meant by chaotic systems is that I think they would greatly enjoy the study chaos theory as applied to economics. The effort to try and predict what would happen in extremely complex systems that appear to be random but are actually deterministic, if you have enough information.

[s2000r1titan]

Indeed.

Altho' I don't like references to 'chaos theory'. As you said, in believing in totally random events, they wind up being totally deterministic, which destroys freedom. No thank you! This plays right into the hands of Marx - not wishing to allow 'chaos theory' to reign unchecked, man has to be a determined creature, meaning some men determine all the others, supposedly for their good.

BF Skinner called for exactly that. No thanx, I like freedom.

[citizenBNW]

Mises's Human Action is 900 pages of describing how complex the world is. Their point, IMHO, is they would rather have us be free and to organize voluntarily than to provide too much power to the STATE. There are some good examples of how that ends badly, especially for those following Marxist doctrine.

[s2000r1titan]

And I agree wholeheartedly! Well, almost wholeheartedly. We believe in Freedom, but not at the expense of Law.

The Law must always be paramount, unless you want chaos, which is a surefire way to Marxism. And the Law must not be subject to change, becoz that would mean there is something outside or above the Law to whom the Law is answerable, which gets back to chaos.

The French Revolution is instructive here. Believing themselves to be free apart from law, they created a monster.

[citizenBNW]

I don't know that we disagree on this, with this clarification, that if the stated purpose of the Law is to protect Freedom, then when there is a conflict between the Law (as written) and Freedom, I would say the conflict must be resolved in the favor of Freedom at the expense of the Law. Otherwise we come to this "That whenever any Form of Government becomes destructive of these ends ..."

[s2000r1titan]

Yeah, you are right. Here I am, cruising for a fight, and I find a friend instead. Oh well, such is life...

And I concur that freedom comes before law, but the purpose of law is to codify ethical principles. Some things are acceptable, and some things aren't.

The question comes down to: what is ultimate? Law or Civil Gov't? Freedom cannot be ultimate. The French Revolution tried this path, and it led to disaster for France that they haven't recovered from even now.

Gimme Lex Rex any day!!

[mcfnord]

"For decades central banks set monetary policy according to nonsensical beliefs about credit expansion."

I dispute that these views are nonsensical.

The inability of the Fed to stop the current crisis via emergency lending to banks demonstrates that Fed policies are a failure."

While insufficient, the FOMC intervention has been very successful.

Good luck with your economics interests.

[itulipdotcom]

Meaning what? Certainly without the emergency lending the results would be much worse. But how did we get into the situation of needing these extreme measures in the first place?

[mcfnord]

inappropriate monetary policy is just one cause among many. but for decades? which decades? government price support from Fanny and Freddy are not FOMC functions. i object to the full spectrum of information-lean critiques of montary policy. and add scary music to "prove" a point... that's the worst! what is your motive for making it? trying to prove the theses in the description? some sort of "awareness" exercise? strange to me.

[ld80061]

Smoother music transition - nice!

[Natkane]

I believe the $3.5 billion spike in the early 2000s is not Y2K precautionary borrowing. It is the borrowing that occurred as a result of 9-11. The spike does not appear in the Fed data until September 2001. Thanks for the video.

[Valetudo21]

sorry but this was seen coming years ago. i knew it as well as all the people who actually pay attention to what is happening in our country. next stop federal detention centers and martial law.

[toolslinga]

Good vid, just could improve the titles a bit. Especially the :45 mark with white script on white. Better graph pics would be nice as well. In any case, thanks for posting it.

[hologram48]

History Repeating itself yet again !

[dazzle0607]

thanx for posting

[infrogmation]

Don't disagree with your basic premise, but it is rather misleading to pretend that a "dollar" has remained the same thing. with no adjustment for inflation (eg, 1919 US dollar = 1/20 ounce of gold).

Debt as a % of GDP still isn't as high as WWII. Though of course with the debt skyrocketing and the GDP plunging, the WWII record debt/GDP ratio may not last long.

[itulipdotcom]

CPI inflation causes $1 in 1919 = $12.7 in 2008.

$2.8 billion in Fed borrowing in one month in 1920 = $35 billion in 2008.

$700 billion of Fed borrowing in one month 2008 is 20x 1920 one month spending.

CPI inflation is irrelevant in this context. We're talking about asset price inflation and deflation.

[inertia186]

$700 billion from 2008 has the same buying power as $65.91 billion in 1920, which means this amount of spending is still on a completely different scale.

Not only has the dollar been that distorted, so has the mind of people who think it's ok to put up $700 billion to bail out bad banks. In time, $700 trillion will have the same buying power and they'll still be unimpressed with these horrifying amounts.

[Justgetout]

Hyperinflation is on the way

[largo2001]

maybe not Hyper....but surely alot.

GOT GOLD?