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  • Ron Paul 2012. I'm starting to think he's the only person capable of saving this country.

  • Rush and Hannity are against auditing the Fed and so am I. The filthy gangster government just wants to take money from real hard working Americans at the Federal Reserve like a giant red, white, and blue bank robber and give to those low life loosers on main street. Ron Paul is nothing but a communist from Kenya. Where's your birth certificate Ron, you commie traitor you?

  • @fywacia

    Ummm... What!?!?!?

    You really should get that head injury looked at by a doctor.

  • @4sylum1nmate The fake right's propaganda doesn't sound very good when it lacks their creative politically correct speech to sweaten the sound of their true agenda now does it, lol?

  • How do you stop HR1207, send it to endless Congressional Committees. Only the FSC passed this Bill, it's still bogged down in House Judiciary, Agriculture & Ways and Means

    Committees. Why in the hell does the Ag Committee have to debate a Financial Services Bill?? This is why Congress no longer functions for the people!!

  • Dr. Paul your a good man swimming with sharks.

    God bless you

    -Chris-

  • excellent work Dr.

  • bark is one a dem thar bankers dat can't now feed off da poor.sorry for speling.

  • Who needs the Federal Reserve now that the dollar is being phased out in favor of a world currency? What about the IMF and the World Bank? Could this have been the plan all along, to 'expose' the Federal Reserve in order to get rid of it?

  • Thank you Dr. Paul.  Keep up the good work.

  • private government contractors such as the Federal reserve, should always be held accountable through transparency to it's employer. That should be SOP

  • Pat Barkley, since you are so astute, if the audit will not show anything why is the FED fighting so hard against it? Could it be the bill also gives acct. control over the FED by GAO. Why does the FED threaten to raise interest rates. WHY so SECRETIVE? Dont bother answering, i am not the least bit interested in your drivel. Get lost.

  • Yes Shadow Government, WAKE UP get used to it, tyranny is not a funny word.

  • You being asleep isnt funny....but sad. Keep thinking everything is ok.

  • As it stands, the Federal Reserve is at liberty to embezzle hundreds of billions of dollars every year. This can be converted into buying real estate, etc. The general public pays for this with higher inflation. And we would not be able to KNOW whether or nor there is such embezzlement, BECAUSE there is no audit.

    A better strategy, is to get rid of the Fed entirely. LEGAL TENDER should just be Treasury Bills. America does not need the bloodsucker of the Fed acting as a middle man.

  • WORD!

  • Amen go Paul

  • this is AWESOME!

    and look at me, i live in Sweden, and have never even been to america, yet i'm so excited..this might mean change FOR REAL!

    anyway.. :)

    KEEP IT UP! peace out

  • Ron's son, Rand, is running for US Senate here in Kentucky. Twenty-three senators, seventeen of whom voted for the bailout, are raising funds for his opponent to preserve the status quo. Supporters are attempting to counter this with a money-bomb TODAY to preserve our edge in this promising race!

    Please help us out - see kentuckyfight dot c o m! Thanks! Spread the word!

  • Your right. Technically the vote was 43-25, and even if the absentee's voted it would still have passed, but the myth feels more correct! It was touted as a "Currency Bill" for Christ's sake!

  • Yeah, technically. LOL!

  • amazing! A major first step back in the direction of liberty.

  • On Constitution Day, I became United States Citizen mostly inspired by Dr. Paul's ideals of freedom, limited government, sound money, and following the Founding Father's advise as stated in the Declaration of Independence and the U.S. Constitution. I will be able to vote for those who really uphold and follow the Constitution. Thank you Mr. Paul.

  • good stuff ron paul,

    yet i don't think going back to the old capitalistic system is a solution to our problems b/c it in itself has proven to fail through what is happening now.

    why not try a new system like the ideas presented in the zeitgeist movement aka the venus project?

  • Although I disagree that capitalism is the problem as we have not really let it work as it was meant to without government corruption in the way, I agree that we are headed towards a major paradigm shift that might leave every thing we have known up to this point in the dust. I mean progress is what we as humans do best right? It seems silly to think technology moving at the rate its going will produce anything less than a future 10x different than we have now.

  • yeah, word up.

    ron paul is right about how we have corporatism right now and not a true free market.

    if we had a free market, then ideas and solutions presented in the venus project and other amazing technologies would not be surpressed by the state.

  • You seem like someone who would be interested in these, if you have not seen them already. google --In it's image-- and --building gods-- . Stay free brother!

  • Haha we got one guy on here trying to create arguments and, as usual, they are full of childish name calling. There have been numerous NYT best selling books accusing many high level people within the fed of crimes. Any one of the people being accused could sue the crap out of the authors for libel and defamation of character and discredit the entire movement, but no such charges have ever been made.

  • 2/3 of the house now supports an audit. We are closer to criminal charges than ever before in the feds nearly 100 year history because of people getting informed by those books. Once again you fall back on childish insults. Wright a NYT best seller on why the fed shouldn't be audited if you want to be taken seriously.

  • Yeah, Barney Frank would do a much better job on monetary policy. LOL!

    Criminal charges? You should hold your breath.

  • Did I say I liked barney frank? No. At no time did I say I liked barney frank and your conclusion jumping just weakens your comments further than your name calling does. However, we vote our congress and reps in thus giving us at least a small say in the direction of the policies they put in place. A privet enterprise, like the federal reserve, has no system put in place that the general public can participate in and thus we bend to their whim without a check or balance.

  • You don't like Barney Frank? Then why are you giving him more power over monetary policy?

    What do you think the general public could do to improve the Federal Reserve? Be as specific as you can.

  • "What do you think the general public could do to improve the Federal Reserve?"

    We can form an angry mob with pitchforks and torches then burn it to the ground.

  • That's right ---- and every member of the Federal reserve, along with loan officers at ALL commercial banks, should be hung from the lampposts.

    If this had been done, say, 20 years ago, then the war with Iraq would not have been possible.

  • I asked what the public could do, not what morons want to do.

  • Well mainly do this, Push the Audit the fed info out ASAP, this is the most important thing to preach folks it surpasses any debate, any religion or other way of life and thinking we need to go forth with exposing the criminal shadow government & STOP ENTERTAINING OURSELVES..... GO GO GO!

  • What do you imagine an audit would show?

    You know they're already audited every year, don't you?

    Shadow govt? LOL!

  • It was a joke.

  • I would hold my breath, but we can all see the lack of O2 (thats oxygen, to the laymen) does to the human brain via your comments, so I would not recommend it.

  • Judging by the ignorant comments on this thread, maybe some of the other participants should reduce their O2 intake.

  • bark,

    google barney frank,

  • Remember, according to the Reagan Grace commission, plus all of the new money that has been generated...100% of the money collected by the IRS goes to pay for the INTEREST ON THE DEBT created by the Federal Reserve. If we didn't have a central bank, then we wouldn't need the IRS ;)

  • The Federal Reserve Banks' income is derived primarily from interest earned on U.S. government and Federal agency securities that the Banks have acquired through open market operations and on loans extended to depository institutions, primary dealers, and others. The income earned from U.S. government and Federal agency securities amounted to $27.5 billion and the income earned from loans amounted to $7.2 billion in 2008.

    $27.5 billion is a lot less than income tax receipts. LOL!

  • True, but 100% is wasted...quote from report:

    Resistance to additional income taxes would be even more widespread if people were aware that...with two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from...

  • Sounds like a silly report.

    But at least you now know that the Fed is not responsible for government debt, it's Congress and the President.

  • This was worth signing in for!!

    Freeeeeeeedoooooom!

  • Look folks, we know they been cookin the books since the creation of the Fed, now we'd like to see just how overdone they are. Some of us don't want to blindly pay the bill anymore, when we aren't even allowed to see the total at the bottom of the check. (much less the tax)

  • this is the best thing ron paul has ever done. the most practical, effective bill the man has ever sponsored. good on him for bringing this issue to the forefront!

  • WOOHOO!!!

  • Just my caring personality trying to give its opinion, I believe we are being poisoned, I can't seem to post direct links. but if you google Dr Mercola and check out his link "What to do if you are vaccinated"

    Check out the MSDS sheet's on Sodium Fluoride that is in all of out drinking water, and we bath in it

    Then watch Fluoride Deception, Sweet misery,

    trueworldhistory (DOT) info

    is a good site full of Documentary's.

    Decide for your self after checking it out.

    AND Pass It on!!!

  • Rand Paul money bomb Sept. 23rd! Every penny helps, please give whatever you can.

  • Keep it up Dr. PAul. Thank you. You are a true American.

  • There will prbably be a fire ... or a plan crash that accidentally wipes out ALL the records.

  • They will probably just threaten martial when this bill comes up to vote to prevent it. Those in power will not give up their power so easily.

  • The income earned from U.S. government and Federal agency securities amounted to $27.5 billion and the income earned from loans amounted to $7.2 billion in 2008. Additionally, income from reciprocal currency arrangements and investments denominated in foreign currencies totaled $4.2 billion, and income from fees for the provision of priced services to depository institutions totaled $0.8 billion. The remaining income of $0.8 billion is primarily income from securities lending.

  • Go Ron.

  • BYE BYE FED! IT'S LONG BEEN OVERDUE!

  • New banking system and is happening RIGHT now behind the scenes. The FED is going to be history either way! Auditing them will just show American how big of a CROOK they are and never again will ANYONE ever fall for the trick to establish a central corrupted bank again.

  • Do it.

  • Why do you people want to go and mess up such a sweet deal like this ? Fed loans money all over the world and collets interest off of it . And then borrows money from all over the world and the tax payers pay back the loans and interest . How could you even think of messing this game up ? lol

  • I believe the FED will declare a bank holiday when it is passed. Peace2U!!

  • I wonder if the Audit will be true? I wonder if the FED will not use a makeup? I wonder if the FED will not lie, I wonder how many dollar will buy the honesty of a person?

    God Bless U.S.A!

  • When is the hearing for it?

  • We care really. -TOMMY

  • I was right behind the cameraman while this was being recorded @ The Campaign For Liberty Northeast Conference in Valley Forge, PA on Constitution Day

  • RUN DR. PAUL!!!! RUN!!!!!

  • BoobTube won't allow me to favorite this video. Goes to the favorite page no one sees. Won't post to the viewer page.

  • Call your senators and urge them to co-sponsor S 604, which is exactly the same bill in the senate.

    877-SOB-U-SOB (seriously, that's the Capitol switchboard)

    We need to secure senate support. With their six year terms and essentially lifetime appointments, the senators will be a harder sell. I believe we're up to 28 of the 100 senators cosponsoring.

    Tell them you want S 604 in the original form, not watered down and not attached as a rider on a bill that gives The Fed even more power.

  • Great news! Keep those calls up everyone! Call Pelosi's office every day and leave a (calm) message that we expect her to allow HR 1207 on the floor. Keep it up everyday until she gives. I'm going to start doing that on Monday. Hope you all will join me.

  • we're almost there!!!!!

  • sounds good. audit and END THE FED!!

  • Sen. Patrick Leahy has decided to be a co-sponsor and support the bill.

  • it is nice to see the pathetic dribble of comments that are meant to deflect from the power of this message of liberty, and how ineffective they are. America has the most important citizens in the world and though the feeble-minded outnumber the true believers, the message of American freedom, the kind that was the envy of the world for the last 100 years, will never die. Whatever apocalyptic drama might come, this notion of freedom shall survive and thrive, because it is truth for all mankind

  • Anyways.....Keep up the solid work Campaign for Liberty and everyone behind Ron Paul and his fellow co-sponsers!!

  • the more these aholes come on campaign for liberty videos and other audit the fed videos and say STUPID anti-semite remarks they completely smear the point of the video. So all you idiots saying "white power" etc....get the f off this website

  • Go Ronnie!!!

  • Audit the fed then end it!

  • Thomas Jefferson in 1816 wrote, "If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."

  • Thomas Jefferson did not write about deflation in 1816.

    Fake quote.

  • Thanks for pointing that out. Good comments are rare on youtube.

    However, he did say that central banks are more dangerous than standing armies.

  • How do you know

  • Word Origin & History

    deflate

    1891, in reference to balloons, coinage based on inflate. L. deflare meant "to blow away," but in the modern word the prefix is taken in the sense of "down." Deflation in reference to currency or economic situations is from 1920.

  • "Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" - Congressional Record 12595-12603 - Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932

  • great shit!

    so when will it pass?, i don't know how this political stuff works...so what's next?

  • Outstanding work!

  • congrats!!!! a much needed bill!

  • Here's to the complete hope that the bill will pass, hopefully with such overwhelming support the federal reserve won't be able to do anything to water it down.

    Long live Ron Paul!

  • I hope that bill seriously gets passed, it will be so great when it does so the American people can know what is happening to all their money.

  • You don't think the Fed uses taxpayer money, do you?

  • Of course I do, I just dont think its being used in the right way though and I seriously believe the Fed is a corrupted bunch of people tryin to make a buck any chance they get.

  • Trying to make a buck or just get more control?

  • Of course you do what?

    What do you think the Fed does with all the money they make?

  • The Fed does not use taxpayer money.

    Glad I could help.

  • they don't use taxpayer money, they debase taxpayer money. worse, their actions go well beyond the fed funds rate.

    they don't control the economy, they distort the economy by manipulating the time value of money.

  • You didn't help. You probably just confused more people. The Fed does use taxpayer money. Correct, the money they lend isn't really taxpayer money. It's "legally" theirs after they pocket the interest payments and divide it out amongst their member banks. But when we buy money from the Fed with T-bills, our tax dollars do go to pay the interest accrued on those T-bills. Again, don't kid yourself. They do use taxpayer money. It's a huge sham and a redistribution of wealth to bankers. Wake up.

  • so what you just say make sense to you and it is suppose to make us think we do need the reserve

  • Who is this "us"? I want us to end the fed. How did you get that I thought we do need the fed from what I said?

  • I only confused the dumb people.

    Correct, they don't lend taxpayer money.

    Congratulations for getting a clue.

    Now, what does the Fed do with the tax dollars that pay the interest on the T-Bills they own?

  • Redistribute it back out to the member banks, whoever has more reserves gets more money. They supposedly give some back to the treasury too. Can't have it look like they're just robbing us blind. So in essence. Whoever is the best bitch gets more money. ;) They're all a bunch of sell outs. I don't want us to only abolish the Fed, I want complete banking reform. I think it's the only thing that can get us out of this mess.

  • The Fed paid dividends to member banks last year of about $1.2 billion.

    They returned $34.9 billion to the Treasury.

  • Ya ya. You can read a balance sheet provided by the fed. That's great. Does it mean we should trust it? The same people wanting more power and less transparency. I'm not entirely sure if the dividends paid are the same as the money paid on the excess reserves. Are you? It was my understanding that a dividend was a payment made for just being a member bank or own a share of stock. How about you tell me why you think a system like central banking is good and doesn't need to be audited?

  • Dividends are paid on stock, interest on reserves is a new occurence.

    Central banking is better than no central bank.

    The Fed is audited every year.

  • The audit you speak of is just for show. It doesn't show us anything of real value that could help us understand what the fed is doing with our economy. Since it is Congress' responsibility to handle our economy instead of some elite bankers, I think the people of this country deserve a deeper audit into the happenings at the fed. You should read more about the limitations of the GAO to do a full audit of the fed. What do you think they're introducing this bill for?

  • Congressmen are introducing the bill because they want to control monetary policy (in Ron Paul's case) and because they want to deflect blame from themselves (in the case of Democrats) and because it is a populist thing to do (in the case of some Republicans).

  • Haha. It's their duty and right to control monetary policy. You listen to Bernanke way too much. And what's worse is you feel for it. You still haven't said one thing that shows you actually support it, you're just regurgitating the same crap Bernanke says. So why do you support such a system? Why is this better than elected, accountable people running the show?

  • Barney Frank would do a better job?

    Excuse me while I vomit.

  • Greenspan, Bernanke and the elite bankers of America have done a better job for the last 100 years? Excuse me while I vomit. I can't imagine you're some rich guy that spends his nights on youtube, so you're probably an average person whose money is being devalued by the second that doesn't understand the situation or allows politics to control the way you look at money. Either way is hopeless. You need to wake up, friend. Money has no partisanship.

  • When you look at the job Barney Frank did with Fannie Mae and Freddie Mac, yes, Bernanke and the prior chairmen of the Fed did a better job.

  • ok lets say that is true. then why has the dollar lost 95% of its value w/o the control of this blood sucking politicians? at what point do we say its the feds fault ? 97%or even 99%??? lol

  • Okay, let's say what is true?

    The dollar has lost 95% of it's value because of the Fed. And because of other people who have created money.

    Do you feel that there was no inflation or deflation before the Fed existed?

  • printing endless $ solves nothing

  • Who said printing endless $ solved anything?

  • no1,was just saying lol my bad if i offended u brotha

  • Sure there was. It's the principles of it. I don't want a small group of men to control my money. I'd rather live in a world where the market regulates itself and where white collar criminals are actually dealt with and not just slapped on the wrist. But still, you haven't told me why you support this system. I won't be responding to you again, unless you give me some reasons. Otherwise, you're just ignorant and I'm done wasting my time with you.

  • In the absence of a central bank, in your dream world, how does new money get created?

    I support a central bank because we have fewer, shallower recessions and depressions than in a world with no central bank.

  • Funny you say that. Since both world wars and the great depression fall within the fed's life. Shallower recessions? Seriously? The great depression is the longest depression this country has ever seen and was helped along by both the fed and fdr's administration.

    Money could be created by the treasury and should be in the form of value, not debt. The fed really is an unnecessary step, just so bankers can grab the interest off the top. It's an obsolete scam.

  • Yes, fewer shallower recessions in the 96years after the Fed then the 96 years before.

    The Fed f'ed up during the Great Depression by allowing the money supply to shrink so much. You'll notice they didn't do that this time.

    We had depressions in the 1800s worse than the Great Depression.

    What do you think the Fed does with the interest they earn?

  • They were quick though. That is one positive thing you can say about a market driven recession. I'd The same thing caused market crashes then as it does now. Powerful men saying the market is going to collapse. That's it. Nothing has changed in a 100 year. We still have a bunch of followers that will capitulate the market into nothingness and allow the richest to pick up all the pieces. I already told you what I think the fed does with the earned interest. Pay attention

  • You're wrong about what the Fed does with interest.

    They gave $34.9 billion to the Treasury last year.

  • And then I asked you to clarify that you were sure that dividends paid and interest paid on excess reserves were considered to be the same thing, which you did not answer to. Of course they give a portion of the interest back though, the house of cards would have collapsed awhile ago if they didn't. It's a ponzi scheme.

  • Dividends are different than interest paid.

    They only just started paying interest on reserves. They've paid dividends since they were created.

    A portion? They gave more to the Treasury than they earned on their Treasury positions.

  • Yes I know this. That's what I just said to you. It is my understanding that they have been paying interest on "excess" reserves since the bank was opened. Do you have something to cite that says otherwise? So then all this dividend talk is pointless unless you can find something on their balance sheet that says how much interest has been paid to member banks on excess reserves.

  • The Federal Reserve Board on Monday announced that it will begin to pay interest on depository institutions' required and excess reserve balances. The payment of interest on excess reserve balances will give the Federal Reserve greater scope to use its lending programs to address conditions in credit markets while also maintaining the federal funds rate close to the target established by the Federal Open Market Committee.

    Google the above passage to get the Oct 6, 2008 Fed press release

  • I appreciate that.

  • Just because you can't or don't wish to imagine it, doens't mean it's unattainable or a dream world. You should really try opening your mind a bit. There's not a reason I can think of that people should be held hostage by note payments. But the argument to that is 'well they shouldn't have taken the credit'. True, but that's a whole nother topic. The fed is like a con-artist, who is making money off of selling a drug addict a bag of flour. We're society addicted to money.

  • Who is held hostage by note payments?

    They'll be better without the Fed?

  • We'd be better with banking reform. I just think it's sad to see people like you supporting a system that no one actually understands completely. You may think you do, but you're lying to yourself. They won't even tell Congress what they're doing with all this newly lent credit. We need banking reform like I've already said. Society is held hostage by note payments. This could all work by value, it doesn't have to be debt. Interest should be illegal.

  • Workers of the world, unite!

    LOL! That explains your ignorance.

  • Haha. Obviously you have nothing else intelligent to add. I enjoyed it the talk before you resorted to pointless posts. Thanks.

  • Let's outlaw interest.

    Hilarious.

    It would also make it a little difficult to get a mortgage. Unless you have a special socialist idea for that.

    Or should houses (and all property) be illegal too?

  • Haha. Yes. Let's outlaw interest. Or at the very least force the bankers to play by the same rules everyone else does. They need to come to the loan with the collateral. Seeing as they don't have consideration for these loans I don't think it's fair for them to collect interest payments on the loan. Nationalizing the banks could also work, but with the shape this gov is in I wouldn't trust them to do much.

  • Don't have consideration?

    You'll have to explain what that means.

  • The legal way to say you have something of value that can be used in a loan as collateral. It's contract law. Both parties must have consideration for the contract to be valid. Your promise to pay and the forfeiture of your home is yours. What exactly is the banks? What did they bring to the loan agreement? Fake money created by your promise to pay? So their consideration rises directly from your consideration. Just another loophole the courts allow them to get away with.

  • The bank gave you the money.

    Not fake money, real money.

    Real money from real deposits.

  • That is a fallacy, friend. It's not real money. It is simply you're promise to pay. Thus they are allowed to create temporary money in hope that you pay it all back someday with interest. If you default on your loan, that's where the temporary money becomes poison to the system. That's why the massive defaults and foreclosures are hurting the economy right now. But don't kid yourself. It is fake. It doesn't exist until you pay it back.

  • No, it is real money.

    The bank can hand me real cash for my loan. How is it not real money?

  • It's pretty much counterfeit. The banks order their cash from the fed. It all flows from the same source, bro. Money is not real. It represents a promise to pay. That is it. All you do when you use the paper money is your buying something with someone elses promise to pay. Usually the united states government.

  • Real deposits multiplied by the required reserve ratio, then lent back out 100 more times. From a 1,000 dollar deposit they can create and loan out 100,000 in bank credit. And since the banking system is pretty much a closed loop, the credit that can be made is endless. And in this type of system, defaults are built in. There's not enough money to pay the interest, since elites and bankers are hording it all. Real money from real deposits would be full reserve banking, which this is not.

  • Wrong, with a $1000 dollar deposit, they can lend out less than $1000, not more.

    I start a new bank, you deposit $1000 in cash. I can loan $900 in cash, with a 10% reserve requirement.

    Loans are less than deposits, not more.

  • If the loan check is deposited at the same bank, then what? From 1000 dollars in deposits your bank has 1900 of money right now. That can be used today to purchase things. While this 1900 exists in today's "money supply" the loan has not been paid back at all hardly. So until the loan is paid back the money supply suffers from devaluation. If the debtor defaults, then the devaluation becomes permanent if the collateral does not cover the principle.

  • Yes, the bank creates new money from the deposits they hold. The money supply is now $1900.

    New money was created, without the Federal Reserve. Shhhhh.

  • Well you just said that all this was real, and you were talking about our banking system like it was a full reserve system. The federal reserve has it's share of damning the country also, but instead of doing it with the consumer only, they lend to foreign reserve banks, our own government, and the institutions within the federal reserve system. So, the same thing, only on a much larger scale, where the possibilites for catastrophe are that much larger.

  • The banking system was never a full reserve system. It's always been fractional reserve.

  • Are you even paying attention? When did I say our system has been full reserve? Could you please quote me? You won't find it, cause I never have and never will say that. Please answer my questions and stop trying to distract away from those.

  • When did I ever say we were full reserve? LOL!

    Loans are less than deposits, always.

    A bank cannot take a $1000 deposit and loan $100000 from it. Clear?

  • In that same post I said the banking system is a closed loop. An initial deposit at a bank of 1,000 WILL create more money after it is lent over and over again divided by the reserve ratio. Well. Maybe it isn't 100,000. I embellished a bit. But it's much more than they should be allowed to lend.

  • Yes, each deposit allows a smaller loan.

    That's what I've been saying.

    If you don't want a bank to loan, don't deposit your money. If you don't want a bank to loan, don't borrow.

  • That's what I have been saying as well. Are you reading your own stuff so much you forgot you were having a convo with someone? I don't borrow thank you. But we can see how wide spread the problem is. Thru our entire conversation though you have still yet to give a good reason why we need the fed. You said it was to keep bubbles from happening, but obviously that isn't it, you said lender of last resort, it's all electronic, obviously we don't need that either. What exactly is it then?

  • Yes, lender of last resort.

  • Haha. Somehow I knew you'd say that, but don't kid yourself. It's not the same thing. Lender of last resort that's never tried something like this in their almost 100 year history. Somehow it looks more like the fed is trying to write its own rules than be the "lender of last resort"

  • Please. Do a quick wiki search about the banking sectors hand in inflating the money supply. Granted it's temporary, but as we can see, their ability to increase the money supply just from making new loans and getting new deposits can also create bubbles. And the more people that default, the more permenant and painful their actions become.

  • Yes, bubbles can occur even when the Fed holds M1 steady. Glad you're finally showing some understanding.

  • Don't condescend me, you're really in no position to. It seems you don't even understand the money creation cycle, or who banks actually work. But I think you just proved my case. What is the point of the fed then? If bubbles can still occur, and do, even with the fed here, why do we need them? To control prices? No thank you. I'd rather the market do that. We don't need some select group of people that have foreknowledge of events to come that can tell all their buddies how to play the market.

  • The point of the Fed is lender of last resort.

    If you realize we had bubbles and panics without the Fed, why do you think ending the Fed will eliminate bubbles and panics?

  • When we used gold as the basis of our money, sure. A lender of last resort. In today's economy, it is pure control. The "reserve" couldn't dream of covering all the promises to pay with the gold it owns. Not a chance in hell. There are no reserves anymore. There is no reason for the fed. You're not understanding. The bubbles and recessions happen anyways, even with the fed here, what is the point of them? Do you like them controlling the world or something?

  • I don't think the Fed should cover promises to pay with gold. Not enough gold to cover our money supply, that's why a gold standard won't work.

    There is a reason for the Fed. They can add money during panics. Like they just did. They can raise rates and hold money steady during bubbles, like they did with

    M1 from mid-2005 to mid-2008.

    And bubbles and panics are not a reason to end the Fed, they happen anyway.

    You think the Fed controls the world? LOL!

  • Haha. Sorry to dissapoint you. The fed does not add money. They change interest rates to influence banks to increase their reserves and become more liquid or decrease their reserves and stop lending. The government borrows money from the fed. This is the adding money you are refering to. Haha. Apparently you are as naive as you are ignornat. No surprise though. I just find it funny you don't even understand the system you support. Wow. They've got you, man. ;)

  • The Fed does add money, every time they buy something.

  • They buy and sell treasuries. They don't jsut add money with nothing to "back it up", until recently. Programs like TARP and all these other acronyms that need to be audited and have been refused any transparency are the problems. In essence, it is the federal reserve beginning to side step the government. What's the point of the gov if the fed will lend to whoever it pleases? It's the start of a bad path. I just hope you wake up to realize the path you're happy going down before it's too late.

  • Yes, when they buy a Treasury it's with money created out of thin air. Just like they always did.

    The TARP is the Treasury, not the Fed.

    Oops, showing your ignorance again. LOL!

  • I really wouldn't call it ignorance, but I find it funny that you keep waiting for me to mess up so you can point it out rather than just having an intelligent debate. I mean, it's the most you've written in any of your last four posts. That's pretty sad.

    Ahhh whatever it's called. There's one that is under the fed's control that has amounted to 2.5 trillion dollars so far. The acronyms aren't really important, it's that the credit is out there, and now we're hoping it will be paid back.

  • Not knowing the difference between the Fed and the Treasury is a glaring example of ignorance.

  • Not being able to drop something is a sign of how desperate you are to actually win at something. Good job. I called a treasury program a fed program. Can we move on now? Honestly, I don't feel to ignorant since you still have yet to repsond to anything else I put, which are good questions, instead you post 2 replies and take up your time and my time, pointing out that I made a mistake. Oh no. My ignorance is really showing now! I made a mistake! Get back on topic. Or did you forget what it was?

  • Which questions do you feel I've ignored?

    Yeah, calling for a Fed audit to get info on a Treasury program is a sign of ignorance.

    So now that you know TARP is Treasury, you still want to audit the Fed? Why?

  • It's not the TARP people want audited. It's the off book transactions the fed is taking part in right now. The currency swaps, the programs they've started themselves. Again. Stop distracting away from the real questions and stop accusing people of being ignorant, you really have no right. I've given countless reasons why and asked you your opinion on all the, what I think were good points I made. You have failed to give your opinion on anything. Hell. You didn't even give Bernanke's opinion.

  • Fed transactions are on the book.

    You can see their balance sheet, every week.

    Why would I give Bernanke's opinion?