US dollar falls after Federal Reserve's announcement

At the end, this was already in the making since July Q3 40 billions on top of the 70 billion of previews easing wasn't working

The Q1 and 2 took about one year in between to be implemented now see how it was nothing but months between Q3 and Q4?.

The economy is in trouble and people still doesn't get it, the govenment has been lying all alone, US economy is not improving and never will as long as waste and abuse is allowe within govenrment.

This means that next year Qs will be indefinitely meaning that trillions could be going a month to Wall Street for banskters bailouts as that is what the Qs are

How long can a nation survive like this?

People needs to do their math.

Originally posted by NewThor7
You want me to simplify it for you?

In a fractional reserve system...

For every $1 dollar of National Debt the banks can print $9 dollars in credit.

There ya go!

That simply is NOT TRUE! They are required to keep 10% of the money they borrow from the federal reserve and loan out the rest. I keep seeing this misnomer being passed away as fact by everyone just because they hate banks.

Originally posted by NewThor7

Originally posted by EarthCitizen07

Originally posted by NewThor7
REAL inflation isn't a problem yet because so much of the liquidity is caught in stocks, bonds, ETFs and in the cayman islands. If that money ever leaves the shelf and finds it's way into the economy....

HYPERINFLATION, bitchez! (not an insult, a zerohedge staple to end your post)

No. It is when you flood the market with money and the money has no correspondence to goods and services bought, that is when hyper-inflation sets in. The fact there is so much money hidden away in unreported accounts means there were too many loopholes being taken advantage of and that the actual progressive taxation system was baloney.

The government could really use every single penny out of circulation, without releasing it into the markets. Besides the federal reserve loans money to the commerical banks and the government does not get involved in banking. The more money government has in its accounts that means the lesser the need to borrow and the lesser the need to tax. Who the hell would oppose it and for what? Well the insanely rich would for obvious reasons.

edit on 13/12/12 by EarthCitizen07 because: (no reason given)

What percentage of Americans do you think know what Quantitative Easing is?

And if the Fed loans to Banks at 0% and those banks buy USA Bonds for 1-3% how long can that last?

Quantative Easing is giving/loaning federal reserve funds(not governmental) to big business with the pretense of wanting to create liquidity for the markets, when the whole idea is to take the money and invest in third world nations that are un-unionised and under-regulated to make astronimical profits at the american taxpayers expense.

Do people know what embezzlement is? White collar crime has skyrocketed ever since that moron called reagen and his laaisez-faire capitalist ideas took foothold. Laissez-faire cannot work, never has worked, never will work..tomorrow, today, next week or next year.

The QE phenomena is not only relegated to the US crafty crocks is been implemented all over the global banks as a way to keep their banks from collapsing

Sadly what all this is doing to fix the US economic mess and even the Global banks mess?

No a darn thing.

All of the central banks seem to be getting on the QE bandwagon.

But will this fix anything?

Unfortunately it will not, at least according to Paul Volcker....

“Another round of QE is understandable – but it will fail to fix the problem. There is so much liquidity in the market that adding more is not going to change the economy.”
Sadly, most Americans have a ton of faith in the people running our system, but the truth is that they really do not know what they are doing. Just check out what Dallas Fed President Richard Fisher said the other day....

"The truth, however, is that nobody on the committee, nor on our staffs at the Board of Governors and the 12 Banks, really knows what is holding back the economy. Nobody really knows what will work to get the economy back on course. And nobody – in fact, no central bank anywhere on the planet – has the experience of successfully navigating a return home from the place in which we now find ourselves. No central bank – not, at least, the Federal Reserve – has ever been on this cruise before."

Originally posted by EarthCitizen07

Originally posted by NewThor7
You want me to simplify it for you?

In a fractional reserve system...

For every $1 dollar of National Debt the banks can print $9 dollars in credit.

There ya go!

That simply is NOT TRUE! They are required to keep 10% of the money they borrow from the federal reserve and loan out the rest. I keep seeing this misnomer being passed away as fact by everyone just because they hate banks.

Dude. You ever heard of prop trading?

You REALLY think the banks have to take the 90% and loan it to small businesses?

LOL. That's cute.

Quantitavie easing littler bit of history and how effective has been.,

Many think that this phenomena started with japan but is been tried before with disastrous results by Germany

Why it seems to work for the banksters of today? well because they found a crafty way to create wealth in numbers rather thank in liquidity

A nice lesson from history.

Quantitative Easing Did Not Work For The Weimar Republic Either

Did printing vast quantities of money work for the Weimar Republic? Nope. And it won't work for us either. If printing money was the secret to economic success, we could just print up a trillion dollars for every American and be done with it. The truth is that making everyone in America a trillionaire would not mean that we would all suddenly be wealthy. There would be the same amount of "real wealth" in our economy as before. But what it would do is render our currency meaningless and totally destroy faith in our financial system. Sadly, we have not learned the lessons that history has tried to teach us. Back in April 1919, it took 12 German marks to get 1 U.S. dollar. By December 1923, it took approximately 4 trillion German marks to get 1 U.S. dollar. So was the Weimar Republic better off after all of the "quantitative easing" that they did or worse off? Of course they were worse off. They destroyed their currency and wrecked all confidence in their financial system. There was an old joke that if you left a wheelbarrow full of money sitting around in the Weimar Republic that thieves would take the wheelbarrow and they would leave the money behind. Will things eventually get that bad in the United States someday?

Of course we are not going to see hyperinflation in the U.S. this week or this month.

But don't think that it will never happen.

The people of Germany never thought that it would happen to them, but it did.

The following is an excerpt from a Wikipedia article about the Weimar Republic. Take note of the similarities between what the Weimar Republic experienced and what we are going through today....

theeconomiccollapseblog.com...

Now japan is in number 8 of QEs in order to keep their economy working, but at least Japan produces something.

Originally posted by marg6043
Quantitavie easing littler bit of history and how effective has been.,

Many think that this phenomena started with japan but is been tried before with disastrous results by Germany

Why it seems to work for the banksters of today? well because they found a crafty way to create wealth in numbers rather thank in liquidity

A nice lesson from history.

Quantitative Easing Did Not Work For The Weimar Republic Either

Did printing vast quantities of money work for the Weimar Republic? Nope. And it won't work for us either. If printing money was the secret to economic success, we could just print up a trillion dollars for every American and be done with it. The truth is that making everyone in America a trillionaire would not mean that we would all suddenly be wealthy. There would be the same amount of "real wealth" in our economy as before. But what it would do is render our currency meaningless and totally destroy faith in our financial system. Sadly, we have not learned the lessons that history has tried to teach us. Back in April 1919, it took 12 German marks to get 1 U.S. dollar. By December 1923, it took approximately 4 trillion German marks to get 1 U.S. dollar. So was the Weimar Republic better off after all of the "quantitative easing" that they did or worse off? Of course they were worse off. They destroyed their currency and wrecked all confidence in their financial system. There was an old joke that if you left a wheelbarrow full of money sitting around in the Weimar Republic that thieves would take the wheelbarrow and they would leave the money behind. Will things eventually get that bad in the United States someday?

Of course we are not going to see hyperinflation in the U.S. this week or this month.

But don't think that it will never happen.

The people of Germany never thought that it would happen to them, but it did.

The following is an excerpt from a Wikipedia article about the Weimar Republic. Take note of the similarities between what the Weimar Republic experienced and what we are going through today....

theeconomiccollapseblog.com...

Now japan is in number 8 of QEs in order to keep their economy working, but at least Japan produces something.

America produces Porn and Pills.

So...uh, there's that.

reply to post by NewThor7


Thanks for the nice laugh my friend I needed that, you are right, is not funny my daughter is a nurse in the ER and she said that until this day she has not seen anybody that doesn't come to the ER with a bag full of pills.

The number one most prescribe drugs are antidepressants

Another Gem I found.

What is the Fed protecting with the QEs at the expenses of common hard working citizens?

JPMorgan Chase

Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)

Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)

Citibank

Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)

Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)

Bank Of America

Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)

Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)

Goldman Sachs

Total Assets: $114,693,000,000 (a bit more than 114 billion dollars - yes, you read that correctly)

Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)

That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.

To get a better idea of the massive amounts of money that we are talking about, just check out this excellent infographic.

How in the world could we let this happen?

And what is our financial system going to look like when this pyramid of risk comes falling down?

Our politicians put in a few new rules for derivatives, but as usual they only made things even worse.

According to Nasdaq.com, beginning next year new regulations will require derivatives traders to put up trillions of dollars to satisfy new margin requirements.

This are the crocks that the Fed is protecting with the QEs if you do the math the answer could not be that far from making anybody scream in terror, specially when you learn that the, Total U.S. GDP was just a shade over 15 trillion dollars last year.

theeconomiccollapseblog.com...

reply to post by Mister1k


LOL is right. So....let me get this straight, this guy has gold and silver to sell us, because it is bad to have electronic currency or paper money that can just fade away......so he is going to sell us HIS gold and silver for our paper money and/or electronic currency? That makes a lot of sense.

Republicans want to lower taxes, Democrats want to raise taxes on the rich.. But guess what, they both want to rob you by printing money that devalues what you have in the bank. I would bet that "quantitative easing" (what a crock of a name) has cost Americans way more any tax increase would.

reply to post by spangledbanner


I am convinced that the economy is being sabotaged as a stepping stool to higher aims.

People just look at the post with all the banks that the QEs are protecting trust me we all should be in a panic!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The total derivative or toxic assets is two times three times and even four times the total bank assets

Most of this banks or investments firm are the ones that controls the investments, retirement accounts and pensions of Americas workers!!!!!!!!!!!!!!!!!!!!!!!

We all should be running in panic!!!!!!!!!!!!!!!!!!!!!!!!!!

This are the same banks that created or help create the Market crash of 2008 that has spread globally.

I know it's great fun and sport to play 'Get the banker!' but I hope we can step back and consider something. Outside of Goldman Sachs and Citibank...you know, the monster banks that literally OWN a good % of the planet by mortgage notes.....banks aren't the culprit. I single those out because reading their corporate roster is like seeing the Government table of organization transferred straight over to private jobs. I mean, it's a direct lateral transfer program to these corrupt leaders.

OUTSIDE of that though, it IS the leaders. It's not the banks or the bankers we see and wave to in our branches or even headquarter buildings. Congress built the system and Congress made 10's of thousands of pages of legalese B.S. to regulate a system with enough loopholes to pass trucks through all day long and never have a close call for clearance.

As long as everyone keeps "their congressman" while simply calling for everyone ELSE'S congressman to be voted out? We'll never change a thing. Not one thing. Look at the House veterans. Those seats come up every TWO YEARS. How many rubber stamp elections have people like Pelosi and Boehner been through to to there? Far too many.... far far too many.

Originally posted by kcabmi
reply to post by Mister1k

 

LOL is right. So....let me get this straight, this guy has gold and silver to sell us, because it is bad to have electronic currency or paper money that can just fade away......so he is going to sell us HIS gold and silver for our paper money and/or electronic currency? That makes a lot of sense.

>OMG Why is he selling the gold when he should hold on to it??!!!!!11

It's a business, he buys it for cheaper, and sells it for higher. With all of the profits he makes, he's probably buying his own large stash of PMs.

Every time the dollar is devalued, it makes PMs a better investment to have had.

Originally posted by EarthCitizen07

Originally posted by NewThor7
You want me to simplify it for you?

In a fractional reserve system...

For every $1 dollar of National Debt the banks can print $9 dollars in credit.

There ya go!

That simply is NOT TRUE! They are required to keep 10% of the money they borrow from the federal reserve and loan out the rest. I keep seeing this misnomer being passed away as fact by everyone just because they hate banks.

Actually, he is underestimating the split, and it is you who have confused what the bankers and economist put out as propaganda for truth.

The ratio is adjusted depending on "how important" the bank is to the overall central banking system which they refer to (in our country) as the "federal" Reserve system.

Here's a table which I find confusing; but shows us a "hint" - a sort of "peek" behind the curtain. This table is the publication of the Bank of International Settlements (BIS) which - in my opinion - is the "mothership" of the global banking cartel. ALL banks in our country are subordinate to the BIS's regulatory control. It is a stipulation of the "Federal Reserve Act" now that all banks in the country are.

Note that "capital" exists in a oft-mentioned "tier" structure to them.... this entry in the BIS table refers to "tier 1."

Common Equity Tier 1 (CET1) capital requirement ranging from 1% to 2.5%, depending on a bank’s systemic importance. For banks facing the highest SIB surcharge, an additional loss absorbency of 1% could be applied as a disincentive to increase materially their global systemic importance in the future. A consultative document was published in cooperation with the Financial Stability Board, which is coordinating the overall set of measures to reduce the moral hazard posed by global SIFIs.

This statement states that the ratio can be as low as 1% (that's 1 to 100) or 2.5% depending on the bank's judgement.

And that's the key... look at the law, the regulations, and you will find that most everything is their discretion... with the "they" being the board of the bank.... needless to say they are also exposed to no liability for their 'economic approach's' failure and they benefit the most from success... more than nations (the "assumed" wealth-holders) themselves.

Next time you meet a banker.. ask him or her what their fractional reserve rate is at "at this moment" - and watch them squirm.

i dont believe they would even literally print that much out. I mean if you think about it why print trilliions of dollars of paper?? why waste all that time and resources im sure they have a different approach when it comes to obtaining large amounts of money. Like for example your about to buy a billion dollar massion, do they really bust out a truck load of cash and give it to the seller...I dont think so, that what computers and monetary systems are for so that you wont have to be carrying that much amount of cash with you the whole time.

So in theory they can create any amount of money as much as a computer can handle numbers, and how many numbers can a super computer handle?? well you know....

reply to post by BacknTime


Actually your are right, that is why liquidity is today a thing of the past, when you can electronically transfer numbers at a push of a button.

The crafty name for it is electronic trading in a paperless society.

as usual we the common people are not allow to play with the numbers only the elite few can.

reply to post by marg6043

Oh but of course. If they print more money from thin air, they call it easing and explain that it's necessary so we don't all go broke.

However..if I print money out of thin air so I don't go broke? They call it a felony and mean guys in black suits come to give me ugly looking bracelets and a free place to live for a few years.

Isn't it odd how that works?

reply to post by Wrabbit2000



Exactly don't we all will love to get into banks accounts when they are low in funds and just add some numbers in it?

But like you say we make money out of thin air we are the felons, the Fed and Wall street do it all the time and that is call electronic transfers and investing, then when they crash the make the tax payers pay for it.

Then we wonder who the crocks truly are.

Originally posted by NewThor7

Originally posted by EarthCitizen07

Originally posted by NewThor7
You want me to simplify it for you?

In a fractional reserve system...

For every $1 dollar of National Debt the banks can print $9 dollars in credit.

There ya go!

That simply is NOT TRUE! They are required to keep 10% of the money they borrow from the federal reserve and loan out the rest. I keep seeing this misnomer being passed away as fact by everyone just because they hate banks.

Dude. You ever heard of prop trading?

You REALLY think the banks have to take the 90% and loan it to small businesses?

LOL. That's cute.

You are making it sound way too simple and I doubt you really know what you are talking about. I choose to focus on things I know about and are rather easy to prove. I still contend that commercial banks are required to keep 10% of the funds and the rest they can invest in various ways, including lending money to customers.

Economics are complicated, otherwise everyone would be an expert and the billionares would be behind bars.