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That was the only peacetime inflation period in US history
Originally posted by DangerDeath
reply to post by HimWhoHathAnEar
For now the solution that goes against inflation is letting go of people. If that wasn't the case, there would be either cuts in salaries, or inflation.
Originally posted by fullmoonfairy
reply to post by Hx3_1963
Thank you, I couldn't have said it better myself. Even though some of us out here don't have anything "pertinent" to add, it is very disturbing to constantly be interupted by these bizarre and childish insults.
Please, continue. Some of us would like to learn more. BTW, WHERE are these "mods" I keep hearing about?
Sorry fer the delay...was checking past pages to make sure this wasn't a dup...
FOR IMMEDIATE RELEASE
NCUA Conserves U.S. Central and Western Corporate Credit Unions
March 20, 2009, Alexandria, Va. -- The National Credit Union Administration Board today placed U.S. Central Federal Credit Union, Lenexa, Kansas, and Western Corporate (WesCorp) Federal Credit Union, San Dimas, California, into conservatorship to stabilize the corporate credit union system and resolve balance sheet issues. These actions are the latest NCUA efforts to assist the corporate credit union network under the Corporate Stabilization Plan.
The two corporate credit unions were placed into conservatorship to protect retail credit union deposits and the interest of the National Credit Union Share Insurance Fund (NCUSIF), as well as to remove any impediments to the Agency’s ability to take appropriate mitigating actions that may be necessary. Service continues uninterrupted at both U.S. Central Corporate Federal Credit Union and WesCorp, and members are free to make deposits and access funds.
The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, preserve member assets and protect the NCUSIF.
Corporate credit unions do not serve consumers. They are chartered to provide products and services to the credit union system. These products and services will continue uninterrupted and there is no direct impact by NCUA’s actions on the 90 million credit union members nationwide. Credit unions that serve consumers remain very strong, with net worth exceeding 10 percent of assets, healthy growth in assets, membership, and loan portfolios despite the difficult economy.
U.S. Central has approximately $34 billion in assets and 26 retail corporate credit union members. WesCorp has $23 billion in assets and approximately 1,100 retail credit union members. The member accounts of both credit unions are guaranteed under provisions of the previously announced NCUA Share Guarantee Program, through December 31, 2010. The Program extends NCUSIF coverage to all funds held by the two corporate credit unions.
Following initial actions taken by the NCUA Board January 28, 2009 (see NCUA Letter to Credit Union No. 09-CU-02 www.ncua.gov...), NCUA staff completed a detailed analysis and stress test of the mortgage and asset backed securities held by all corporate credit unions, including US Central and WesCorp. Specifically, this review determined that an unacceptably high concentration of risk resided only in the two conserved corporate credit unions. Securities held by US Central and WesCorp deteriorated further since late January 2009, contributing to diminished liquidity and payment system capacities, as well as further loss of confidence by member credit unions and other stakeholders.
Additional mortgage and asset backed security analysis and assessment of the two credit unions by NCUA staff enabled NCUA to refine NCUSIF’s required reserve for potential loss. The findings indicated an overall estimated reserve level, previously announced by NCUA, had increased from $4.7 to $5.9 billion. The specific computation and the impact of the refined reserve level are addressed in NCUA Letter No: 09-CU-06, which NCUA issued and posted online today at www.ncua.gov...
NCUA is hosting a webcast Monday, March 23 at 2 p.m. to provide the credit union community with an update on the corporate credit union stabilization program.
The central short-term objective of NCUA’s Corporate Stabilization Program has been to increase liquidity in corporate credit unions. Since the NCUA Board first began taking stabilization actions, liquidity has demonstrated marked improvement. The reliance on external borrowing has declined from $11.8 billion to $2.1 billion.
NCUA believes that the actions to conserve the two corporates, in tandem with established plans to enhance liquidity and generally stabilize the corporate network, represent the most cost effective and prudent alternative available to the credit union industry. The final stage in the overall stabilization program involves the Advanced Notice of Proposed Rulemaking initiated by the NCUA Board in January. The credit union industry is expected to provide suggestions on possible future regulatory reforms to the corporate credit union network.
NCUA will continue to take any and all steps necessary to preserve a well-functioning system of corporate credit unions and to protect the assets of natural person credit unions and their members during the ongoing broader financial market dislocation.
The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, backed by the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 89million account holders in all federal credit unions and the majority of state-chartered credit unions.
Debit cards and credit cards have replaced most people's use of cash. the "money" exists as 1's and 0's on a ledger in a computer - not as cash on hand.
Originally posted by redhatty
reply to post by HimWhoHathAnEar
But, Hyperinflation is not in our future - yet.
until there is a mechanism in place to put paper dollars into the hands of the people, whether through wages or .gov handouts - HYPERinflation will not occur.
Originally posted by DangerDeath
reply to post by redhatty
Perhaps I'm wrong, but the only thing that resembles hyperinflation nowdays is what happened to people includedand victimized in Ponzi schemes
Originally posted by HimWhoHathAnEar
My point being that the money that is being created will go somewhere. It actually can go to the unemployed through gov't progams known as 'unemployment benefits', 'food stamps', 'welfare', 'MCR', etc, etc. Is it really that hard to fathom that money will find its way into the system once created?
Hello, I'm Michael Fryzel Chairman of the National Credit Union Administration.
Over the last several months, NCUA has implemented a series of actions and programs designed to help ease the liquidity and capital strains within corporate credit unions; and to promote the overall stability of the cooperative credit union system. The purpose of this message is to inform you of additional measures the NCUA Board has implemented to further this important cause.
On March 19, 2009, the NCUA Board voted unanimously to place US Central Federal Credit Union and Western Corporate Federal Credit Union into conservatorship and assume operations of both entities. Losses embedded in the securities portfolios of these institutions have significantly eroded their value, to a point that requires us to assume control. This unprecedented action was necessary to protect not only the assets of the two corporate credit unions, but also to protect the National Credit Union Share Insurance Fund and the interests of credit union members nationwide - members who rely on the payment systems provided by these two entities.
Only by direct intervention in the daily operations of US Central and WesCorp can NCUA implement timely, appropriate, and effective strategies to stabilize these corporates and restore member and lender confidence. Our objective in taking this action is in line with all of NCUA's recent efforts directed at the corporate network, to instill member and public confidence in the corporate system, restore the flow of liquidity throughout the system, and maintain uninterrupted transaction settlement.
NCUA has an experienced team of professionals overseeing operations of both US Central and WesCorp. The situation that led us to this point didn't happen overnight, and it will not be resolved immediately - it will take time. The NCUA Board commits to you that this job will be done right, and in a way that leaves the entire credit union industry stronger as we move forward. NCUA has already received over 100 comment letters on the corporate restructuring and will be carefully evaluating your suggestions for improving the corporate system.
Whatever final changes are made to that system, you can be assured they will be made with your input and with the goal that the system will be more insulated against concentration risk and future economic instability. I want to encourage credit unions to continue doing what you do best; meet the savings and lending needs of your members. During these difficult times for consumers, when many other financial institutions have been contracting lending, I'm proud to say credit unions have actually increased lending to members. You have my commitment, to continue evaluating any and all avenues, for minimizing the impact to natural person credit unions.
I want to remind you, both these corporates elected to participate in the guarantee share program through December 2010, so your funds, eligible for the share guarantee, are 100 percent safe and sound.
On Monday, March 23rd, NCUA staff will be hosting a webinar to provide additional details of the conservatorships, and to answer any questions you may have. Please check our website for registration information.
You have built a strong and vibrant credit union industry, one that continues to have tremendous value for America's consumers. In times of difficulty, it is always important to rely on your basic principles of; commitment to your members, prudent and sound operations, and a recognition that, working cooperatively, there is nothing we cannot accomplish.
Thank you for your time.
If Bernanke "creates" a trillion "virtual" dollars and uses them to buy toxic assets that are going to be held indefinitely, the net result is zero concerning money in circulation.
Originally posted by HimWhoHathAnEar
Fraid not, that money is deposited into a banking institution, be it the fed or all the big banks that own the fed (which are one and the same).
Do you really believe that they just let money sit there. Not what banks are designed for my friend. They will invest it in whatever is going to give them a return, that's why we are starting to see the commodities rise again.
They have intrinsic value and the 'deflation' has caused a drop in production, which means there will be a supply demand problem at some point.
The banks know this and are going long oil, gold, etc.
It's really only the vast majority who have been brain washed in the deflation myth that don't see what their doing. Nothing new under the sun, the Bankers are playing you.
I really wish we didn't have to go to the 'get off your computer and do thus and such'. The preps I needed to do were done along time ago and that statement just seemed a bit condecending.