The Fed Is Gifting Primary Dealers With A Monthly Commission Fee Of Over $5 Billion

If you don't understand the following article, let me summarize.

Government regulations are allowing private commercial bankers to make bonus earnings of over 5 billion dollars a month.

www.zerohedge.com...

The topic of how much money the Fed is gifting to the Primary Dealers via POMO comissions has to become front and center right now. While we appreciate fluff "profile" pieces in the NYT addressing the issue tangentially, and assuring us via worthless promises by people whose one purpose in life is to pad the pockets of their future employers in preparation for that inevitable day when said parasites move from faux public service to doing the hard core biddings of a vampire squid, the truth is that this is daylight robbery and it is happening in front of everyone's eyes.

As a reminder, per the NYT: "As offers to sell Treasuries flash on a bank of trading screens, a computer algorithm works out which ones to accept." We contest that this algorithm is costing tapxayer billions each and every month and demand that Bill Dudley, Brian Sack, Josh Frost or one of the 20 year old henchmen traders immediately disclose just wha the operatin terms of the algorithm are, and what the slippage is. The reason: we have reason to believe that the Fed's slippage rate is up to 5%. On a monthly POMO notional total of over $100 billion, this means that the Fed hands out well over $5 billion each and every month to the Primary Dealers. This is an abortion of the Fed's fiduciary responsibility and should be criminal if proven to be in fact correct.

Praise Mao, and may our criminal State centrally plan your life into oblivion.

reply to post by mnemeth1


Any better links?

I am very interested in this article and looking for any others.

reply to post by Quickfix


The mainstream media is all statists.

You will not find investigative reporting on the mainstream news sites until blogs like Zero Hedge force the issue to the front page.

The NYTs and Krugman love the Fed - heaven forbid they point out their favorite institution is defrauding American's to the tune of 5 billion a month.

Repulsive. I wish I could say I was surprised. When a body is beyond law, or oversight these things happen. It is one more indication of the ego, and power of the Fed. I pray everyday that more people would understand the elephant in the room. All empire, police state, and economic wmd derivatives are born of the womb of fiat money.

reply to post by mnemeth1


I doubt that a website that has no credibility could force the MSM to do anything.

Not to be a drag on your thread.

I just want some better links, I am still looking.

reply to post by Quickfix


LOL

No credibility.

Zero Hedge is one of the most read financial blogs on the Web.

Alexa ranks them in top 1200 most viewed web sites in the United States.

Does anyone understand how the Glass-Steagal Act would fix this. Money needs oversight. That is how we are getting robbed.

reply to post by mnemeth1


So, there is no evidence to back up what is said on the blog.

It is just quotes from someone that supposedly said those things.

It would not stand up in a court. Which is what I basically go by, rules of evidence.

No evidence, no standing, so it is just hearsay, which can be dismissed as any form of proof. Anyone can type quotes on a website.

reply to post by Quickfix


Well no, the evidence is in the report sampling quoted.

It is possible for you to go and sample the latest POMO report for yourself and come to the same conclusions about the slippage reported.

I personally trust John Lohman's assessment since he has no reason to lie and is highly credible.

reply to post by mnemeth1


So why not post the POMO report link?

I am looking for it right now.

I have learned the hard way not to trust peoples second hand hearsay.

I don't care how credible he is or that site. Words are words until the report pops up.

reply to post by mnemeth1

The mainstream media is all statists.

The mainstream media is OWNED or controlled by the banks! That is why we never get anything but propaganda from MSM.

JP Morgan: Our next big media player? (April 13, 2010) JP Morgan controls 54 U.S. daily newspapers,and owns 31 television stations. www.newsandtech.com...

Media Conglomerates, Mergers, Concentration of Ownership: www.globalissues.org...

Who controls the media www.nowfoundation.org...

Interlocking Directorates
Media corporations share members of the board of directors with a variety of other large corporations, including banks, investment companies, oil companies, health care and pharmaceutical companies and technology companies. This list shows board interlocks for the following major media interests:
www.fair.org...

reply to post by chuckMFd

Does anyone understand how the Glass-Steagal Act would fix this. Money needs oversight. That is how we are getting robbed.

The horror show of what has been done to the USA over the passed few decades is very neatly outline here:

www.fdic.gov...

Important Banking Legislation
The most important laws that have affected the banking industry in the United States are listed below.

The Main Library of the FDIC, located at the FDIC offices in Washington, D.C., has legislative histories of these laws. These legislative histories help to provide a better understanding of lawmakers' intent for the purpose and scope of the laws

reply to post by Quickfix


To get the purchase prices, you need to go to the Fed's website.

www.newyorkfed.org...

However, to get the 10:59 price to compare the purchases to, you'll need a bloomberg terminal that has that historical data by cusip id.

I'm not sure if it is readily available online from other sources.

reply to post by mnemeth1

If you don't understand the following article, let me summarize.

Government regulations are allowing private commercial bankers to make bonus earnings of over 5 billion dollars a month.

Before I forget. Thank you and a star and flag.

I would say I am horrified and disgusted but at this point I am just numb.

I am hoping the Double Whammy of the Food Safety law and Obamacare's 1099 tax reg changes will FINALLY wake people up.

The upshot is come 2012 expect the cost of everything to go through the roof. Unemployment WILL go threw the roof as small businesses close their doors or lay off if they have more than 50 employees.

The bankers expect to see an additional $300 billion each year flow into their coffers but I think we will just see a large increase in the underground economy.

Also expect food shortages as farmers realize that they must comply with irrational regs and if they sell food they may face huge fines and up to ten years in jail.

The USA is the world's biggest grain supplier. It rank first in wheat and soybean exports and exports more than half of the world's corn. The US produces over 50% of the world’s soybeans. The U.S. produces about 13% of the world’s wheat and supplies about 25% of the world’s wheat export market. The US is the second leading rice exporter with 18% of the world market. www.epa.gov...

If the US government has truly ticked of American farmers to the extent they have the guts to organize a protest, not only the USA but all of the rest of the world is going to be hurting come the winter of 2021. Half of the US farmers are over 55. That means they are a lot more likely to be Tea Party members.... Make sure you stock up boys and girls



It is time for people to start spreading the word to their neighbors and especially to small business owners and farmers about what to expect in 2021 because of the A$$e$ in the District of Criminals.

Originally posted by chuckMFd
Does anyone understand how the Glass-Steagal Act would fix this. Money needs oversight. That is how we are getting robbed.

A full Glass-Steagall would have limited the banks ability to speculate.

Congress repealed the part that separated the investment banks from commercial banks.

The Glass-Steagall Act has remained one of the pillars of banking law since its passage in 1933 by erecting a wall between commercial banking and investment banking. In effect, the law keeps banks from doing business on Wall Street, and vice versa. In actuality, there are two Glass Steagall measures. The first was the Glass-Steagall Act of 1932, a bookkeeping provision that allowed the Treasury to balance its account. And what is commonly known today as the Glass-Steagall law is actually the Bank Act of 1933, containing the provision erecting a wall between the banking and securities businesses. It also laid the groundwork for legislation that would allow the Federal Reserve to let banks into the securities business in a limited way.

However, they left the portion of the law that insures bank deposits in place.

So the commercial banks were allowed to speculate like investment banks, and the deposits they were allowed to speculate with were backed by government insurance.

So if they lost money speculating, the government would cover the deposit losses.

A full repeal of Glass would have eliminated the government insurance, there by making it mmuuuuuccchhh more difficult for the banks to speculate since depositors would withdraw their cash from banks engaged in speculative banking - thereby bankrupting the bank.

reply to post by mnemeth1


Thank you for those numbers.

I don't mean to sound like an A-hole.

I am just hesitant for taking peoples word for it.

I'm surprised this thread hasn't gotten more traction.

Considering that you are being ripped off for tens of billions of dollars, I figured a lot more people would be commenting.

reply to post by mnemeth1


Not many people like to talk about the problem.

Not to many solutions to this problem.

And not many people have the capacity to think of a solution or they are to busy with the money system in their daily lives.

Plus the money system has been around for centuries, it is the same everywhere.

I have my idea's, but I would rather not talk about them.

reply to post by mnemeth1


Nobody wants to face reality. Every time I try and explain to someone the financial hole we are in, they try and change the subject as fast as possible. People just like to think they will figure it out, I don't have to worry about it, it can't get any worse than it already is.

This article basically shows the fed has to bribe the primary dealers to continue buying US bonds, and even with that is still buying nearly 100 billion a month itself with money created out of thin air.

It does not take a genius to figure out this cannot continue for much longer, because these are clearly acts of desperation.

reply to post by proximo


The Bonds did not come from the U.S. the U.S. went bankrupt in 1933 when they removed the gold and silver backing of the dollar. So those bonds issued would be worthless. Usually the bonds come from the Federal Reserve.

Besides no one is going to want the U.S. bonds, its all debt/toxic assets. I know the Chinese don't want a damn thing to do with the U.S. after the gold bar incident.

It is all computers borrowing credit, its the only way to keep the financial game of musical chairs going.

Though the computers do create numbers from the bonds borrowed.


Its just like rearranging the chairs on the Titanic, its going down and no mater how you stack the chairs, there's nothing that can be done.