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The Biggest Scam In The History Of Mankind - By Nadaf Informatics

Goldhedge

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Carl

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The only difference between "money" and "currency" is perspective.
There is no such thing as "fractional reserve lending" or the "money multiplier", they are fictions.
Neither the Fed or the banks have the legal authority to create money, and they don't.
The U.S.G. owns the FRN, not the Fed.
Mike Maloney is mostly F.O.S.
 

Bigjon

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Well I guess I'll just ignore what Carl says, as it makes no sense, just like Mike Baloney makes no sense.

We pay interest and bankers spend the interest portion thereby returning the interest portion to the system where it can be re-earned to make future interest payments.

It is ludicrous to think that the interest causes a shortage of money, which would require further borrowing thereby driving up the value of money.
 

BarnacleBob

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Carl is absolutely correct!

Carl said:
The U.S.G. owns the FRN, not the Fed.

The Fed & banks create credit, not money! Both the Fed & banks must buy FRN's from the U.S. Treasury per USC.

These institutions have instilled in the mind that money, currency & dollar "denominated" credit are synonymous, when in fact each are very different & distinct from each other...

The Fed & banks by law cannot produce or manufacture currency, only the U.S. Treasury is approved by Congress per USC to create physical currency & coin. The Fed & banks do however create "credit" which is "fractionally" leveraged against their assets.... There is a big difference between creating currency & creating credit....
 

BarnacleBob

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A simplistic illustration of the scheme:

U.S. .gov issues a UST in the amount of $1000. No one has $1000 currency, this is where the Fed enters in as regulator. A bank then pledges $1000 in assets to the US Treasury thru the Fed Reserve to receive $1000 in currency which will be used to purchase the UST.

The UST is then used as a tier one asset & collateral to issue credit. The bank under the olde leverage scheme known as fractional reserve could issue $900 of levered credit into the economy. Both the $1000 UST & the $900 in leveraged credit are assets of the bank, the bank increased its net worth from $1000 to $1900 in the transaction.

The bank who issued the credit must now use the UST in its possession as tier one collateral to purchase currency & coin from the US Treasury which will allow their borrowers to repay the leveraged credit....

If there was no currency or coin, the borrowers would be forced into repayment by bank credit. In a bank credit payment only scheme, the banks pledged collateral to the US Treasury is relieved & returned back to the bank. Hence the reason the banks seek to eliminate currency & coin.

Gold & silver coinage eliminates most of the above systemic processes... namely the pledging of collateral to the US Treasury to receive .gov denominated currency or coinage.

Who's really controlling the system, the banks or .gov unelected bureaucrats???

As I stated above this is a very simplistic example... Be very careful when listening to the Agent Smiths whom are feeding disinformations & misrepresentation to the general public.
 

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Read the Modern Money Mechanics and the Two Faces Of Debt.

Both by The Federal Reserve.
 

Carl

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Read the Modern Money Mechanics and the Two Faces Of Debt.

Both by The Federal Reserve.
Reserves are held on a fractional amount of demand deposits and are not used in the pseudo-lending process.

The "Money Multiplier" theory, is pure fiction.

The Bank of England Corrects a Widespread Myth

Does the Money Multiplier Exist?
The role of reserves and money in macroeconomics has a long history. Simple textbook treatments of the money multiplier give the quantity of bank reserves a causal role in determining the quantity of money and bank lending and thus the transmission mechanism of monetary policy. This role results from the assumptions that reserve requirements generate a direct and tight linkage between money and reserves and that the central bank controls the money supply by adjusting the quantity of reserves through open market operations. Using data from recent decades, we have demonstrated that this simple textbook link is implausible in the United States for a number of reasons. First, when money is measured as M2, only a small portion of it is reservable and thus only a small portion is linked to the level of reserve balances the Fed provides through open market operations. Second, except for a brief period in the early 1980s, the Fed has traditionally aimed to control the federal funds rate rather than the quantity of reserves. Third, reserve balances are not identical to required reserves, and the federal funds rate is the interest rate in the market for all reserve balances, not just required reserves. Reserve balances are supplied elastically at the target funds rate. Finally, reservable liabilities fund only a small fraction of bank lending and the evidence suggests that they are not the marginal source data for the most liquid and well-capitalized banks. Changes in reserves are unrelated to changes in lending, and open market operations do not have a direct impact on lending. We conclude that the textbook treatment of money in the transmission mechanism can be rejected. Specifically, our results indicate that bank loan supply does not respond to changes in monetary policy through a bank lending channel, no matter how we group the banks."

Here's a good explanation on how pseudo-loans are actually created.
Basics of Banking: Loans Create a Lot More Than Deposits

Banks are not intermediaries between borrowers and savers, they originate pseudo-loans as deposits, irrespective of credited savings accounts or current reserves held.
Banks do not loan money.

Working Paper No. 529: Banks are not intermediaries of loanable funds.

Legal tender money (cash) is not borrowed or loaned into circulation.
Banks do not loan money.

How Currency Gets into Circulation

Applicable Laws and Information.
Federal Reserve Act, Section 16


Legal Tender Status

Legal tender Law


Now, we can observe in the Treasury's Legal Tender Status, (a brief synopsis of the Federal Reserve Act) that the Fed must pay for the production of FRN notes, and post collateral of equal value to the notes it issues into circulation. (The Fed assets used as the collateral mentioned, have changed to Mortgage Backed Securities and Treasuries.) Also noteworthy is that member banks must buy the notes at face value from the Fed by drawing down their accounts with the Fed and that, Federal Reserve notes represent a first lien on all the assets of the Federal Reserve banks and on the collateral specifically held against them.

Taking that into consideration along with congress's right to take possession of the notes and collateral upon the dissolution of the Fed, we can infer that, the Fed does not own the legal tender Federal Reserve notes. Combine that with the New York Fed's explanation of how FRNs get into circulation, we can also infer that FRNs are neither borrowed, loaned or spent into circulation.

From this, we can objectively conclude that Federal Reserve notes are a debt free legal tender currency, issued into circulation through the Fed and the banking system, in compliance with their legal obligation to supply that money property, as represented by the credited deposit accounts, to the account holders upon their demand.

As I cannot prove a negative, the next three assertions require a little bit of effort, they require disproving.

1) There is no law anywhere that grants to the Federal Reserve or the banking system the authority to create money, and they don't.

2) There is no law anywhere that designates or acknowledges the debt based credit generated by the Fed or the banking system as being a legal tender, or money, or currency, or even a medium of exchange.

3) The only legal validity given to the debt based credit, is held by the debts incurred with its use.

If the banking system collapsed tomorrow and all debt based credit !POOF!ed out of existence, all debts will still be valid and collectible even though the debt based credit used to create and service them, no longer exists. See: 1930's Great Depression. 2007-10 Credit Collapse.

The takeaway from all of this should be the realization that, there are two Federal Reserve administered systems in operation and running concurrently within the U.S.:
1) The legal tender monetary system.
2) The Fed and Banks' asset backed, debt based credit system.

Currently, there is only $1.4-Trillion in U.S. legal tender money in circulation around the globe, all the rest is Fed and bankster generated asset backed, debt based credit, not money.
 
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BarnacleBob

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Carl said:
Currently, there is only $1.4-Trillion in U.S. legal tender money in circulation around the globe, all the rest is Fed and bankster generated asset backed, debt based credit, not money.


And it should also be noted that the so called "asset backed" credit has been hypothecated & leveraged by many multiples.... to such a degree that if it was called upon to serve as collateral it could not serve to indemnify the secured parties.


 

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We pay interest and bankers spend the interest portion thereby returning the interest portion to the system where it can be re-earned to make future interest payments.
Side note: The interest being a significant chunk of the overall system and the bankers having the choice of whether and when to spend it back into the system, doesn't that give them that much more power to ease or strain the impact of expanding and contracting the money supply?
 

solarion

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Jeez...not this same bank credit vs currency vs money discussion again. We've been over this a dozen times.

While Maloney may not say everything perfectly, he does boil things down to a level that even a sheeple can follow. This is vital since I've been studying this subject for over 10yrs and I still have trouble following the nuanced version of the fraud. We need guys like Maloney and Schiff that can speak in plain English layman terms.
 

Joe King

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Jeez...not this same bank credit vs currency vs money discussion again. We've been over this a dozen times.

While Maloney may not say everything perfectly, he does boil things down to a level that even a sheeple can follow. This is vital since I've been studying this subject for over 10yrs and I still have trouble following the nuanced version of the fraud. We need guys like Maloney and Schiff that can speak in plain English layman terms.

I agree. He does explain it in such a way that most people can understand.

Also, if you notice around the 9:20 he does in fact call what banks create as being "bank credit", not "money". So he does understand the distinction, but the common lay-person doesn't get the difference and sees the credit created as what is popularly known as money. Whether it comes from an electronic transfer or is paid in cash, the vast majority of regular people can't see any difference between the two as they function in virtually the same way in day-to-day life.

One thing Maloney does get wrong in addition to the interest thing Bigjon pointed out, is that the Constitution does not require only gold and silver to be money.
 

Carl

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Jeez...not this same bank credit vs currency vs money discussion again. We've been over this a dozen times.

While Maloney may not say everything perfectly, he does boil things down to a level that even a sheeple can follow. This is vital since I've been studying this subject for over 10yrs and I still have trouble following the nuanced version of the fraud. We need guys like Maloney and Schiff that can speak in plain English layman terms.
What Mike Maloney does is feed you a Milton Friedman crafted, Fed adopted, LIE, while feigning opposition to it.
If what he's conveying is a contrived lie that only serves to bolster the notion that the Fed and banks create money when they don't, then whose interests is Mike Maloney truly serving?
 

solarion

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Maloney's message can be boiled down to dollars = debt and don't trust the banksters, protect yourself by holding money(PMs).

I wouldn't exactly call that a destructive lie. What Joe said right above you is exactly correct. Most sheeple cannot see any practical difference between their debit card/bank account balance, the folding dead presidents in their wallet, and the coins that fall between the cushions in their couch. That will remain true until banksters stop converting relatively seamlessly between the three.

Hitting the masses with the full scale nuanced extent of the scam would cause their heads to explode and they'd tune out.
 

Joe King

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Most sheeple cannot see any practical difference between their debit card/bank account balance, the folding dead presidents in their wallet, and the coins that fall between the cushions in their couch. That will remain true until banksters stop converting relatively seamlessly between the three.
I don't believe the average guy-on-the-street has ever known the difference. Had they, something different would have almost certainly happened in '33 than what we all know to have happened.




Hitting the masses with the full scale nuanced extent of the scam would cause their heads to explode and they'd tune out.
That is an absolute fact if there ever were such a thing. It'd be like asking someone who understands basic math to take an advanced calculus course at the local college. Ie. they'll get overwhelmed and lose interest rather quickly.


People like sound bites, not long and complex explanations that tell them lots of detailed and interconnected things that they've at best only heard about previously in the vaguest of senses. If at all.
At some point, it all blends together for them and all they'll hear is a bunch of words goin' by as they start day dreaming about the coming weekend.
 

Bigjon

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Side note: The interest being a significant chunk of the overall system and the bankers having the choice of whether and when to spend it back into the system, doesn't that give them that much more power to ease or strain the impact of expanding and contracting the money supply?
Yep, very much so, they can manufacture deflation at their collective will by withholding spending of the interest collected.
 

Goldhedge

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Maloney's message can be boiled down to dollars = debt and don't trust the banksters, protect yourself by holding money(PMs).
And that message would be a flat out lie. Dollars do not equal debt, exactly the opposite is true. Dollars represent economic liberty.

I wouldn't exactly call that a destructive lie. What Joe said right above you is exactly correct. Most sheeple cannot see any practical difference between their debit card/bank account balance, the folding dead presidents in their wallet, and the coins that fall between the cushions in their couch. That will remain true until banksters stop converting relatively seamlessly between the three.

Hitting the masses with the full scale nuanced extent of the scam would cause their heads to explode and they'd tune out.
Most people assume their deposit accounts contain actual money. And most people operate under the assumption that actual money is being transferred from account to account when they conduct business, and that they can go to their banks and withdraw their money at any time they so choose. I wouldn't underestimate their ability to comprehend the nuanced extent of the scam, if they were properly informed of it, Maloney does not do that.
 

solarion

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Dollars represent economic liberty.

Yeah Carl dollars will set us free. Gimme a freakin break.

The purchasing power of paper notes has been dragged down by banksters freely converting 1:1 between FRNs/US Notes and bankster credit digits. Thus far it hasn't made a dam bit of difference if one stacked paper signed by crooks at the fed and crooks at the treasury or instead stacked bankster digits. Jeez, they say they're "notes" right on them.

People assume banksters store and lend something of value because they've been conditioned to believe as much...by banksters converting between bankster credit and currency.
 

Joe King

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solarion

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Actually, 1791 dollars might.

We needn't even go back that far. The 1935 peace dollar may do the trick. Heck the 2016 silver eagle says it's a dollar right on it, but it's heavy and inconvenient compared to plastic so never mind using that as money.

The masses long ago accepted the notion that the claim check for money was itself money and it has been downhill ever since.
 

michael59

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So what is the current fixed 10 year yield, about 2.78% right?
So that means what about twenty seven twenty eight cents on the hundred I think so each T note should cost $997.22 And a block of 50 should net $139.

So, a block of 50 should cost $49,861 and net $139 equaling out at maturity at $50,000. Now that is some high financing.

Wow, this country really is in the crapper.
 

michael59

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BarnacleBob

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So what is the current fixed 10 year yield, about 2.78% right?
So that means what about twenty seven twenty eight cents on the hundred I think so each T note should cost $997.22 And a block of 50 should net $139.

So, a block of 50 should cost $49,861 and net $139 equaling out at maturity at $50,000. Now that is some high financing.

Wow, this country really is in the crapper.

Thats if your a saver... yet in the reverse its great if your leveraging the tier one collateral asset. Your 50k in the financial economy can be fully levered out to around $1.5 mm @ X30...

"What a country!" Imagine that, legally taking 50k and transforming it into $1.5 million literally overnight!

So whats a UST really worth to a leveraging speculator??? Much more than the IR pittance....
 

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Thats if your a saver... yet in the reverse its great if your leveraging the tier one collateral asset. Your 50k in the financial economy can be fully levered out to around $1.5 mm @ X30...

"What a country!" Imagine that, legally taking 50k and transforming it into $1.5 million literally overnight!

So whats a UST really worth to a leveraging speculator??? Much more than the IR pittance....

That's an increase of 30fold. Yeah BarnacleBob, being who I know I am them sharp pencil pushers would not only have my dirty underwear they would have my dogs tail wag also.
 

BarnacleBob

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That's an increase of 30fold. Yeah BarnacleBob, being who I know I am them sharp pencil pushers would not only have my dirty underwear they would have my dogs tail wag also.

Agree, what we think of as market manipulation many times is leveraged plays that exceed even the 30x ..... The leveraging is now hitting a wall forcing the hedge funds to bail out. The system IMO is starved of acceptable tier one collateral that would allow further leveraging, hence financial growth.

The Fed itself is leveraged X78+ that they openly admit to....
 

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So, where does Carl put his "money"? Stackin' (PMs) or shackin' (in the bank)?

SC
 
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BarnacleBob

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That's an increase of 30fold. Yeah BarnacleBob, being who I know I am them sharp pencil pushers would not only have my dirty underwear they would have my dogs tail wag also.

Post the 2007/08 collapse, the GAO audited the Fed and learned that the Fed had loaned out some $16 tt after the crisis.... Its very easy to understand that the Fed not only "did not," but "could not" loan $16 tt "dollars", as there is only $1.4 tt physical dollars in currency & coin in circulation....

The Fed did only what it could do, which was to loan dollar denominated credit... The Fed for most purposes doesnt loan dollars, its inventory is credit and regulations.
 

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Post the 2007/08 collapse, the GAO audited the Fed and learned that the Fed had loaned out some $16 tt after the crisis.... Its very easy to understand that the Fed not only "did not," but "could not" loan $16 tt "dollars", as there is only $1.4 tt physical dollars in currency & coin in circulation....

The Fed did only what it could do, which was to loan dollar denominated credit... The Fed for most purposes doesnt loan dollars, its inventory is credit and regulations.

And, yet SEARS asked the Fed if it could sell off now..... me b thinking something is wrong.
 

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There is a reason I still have my dirty underwares and my dog still wags her tail.
 

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Yeah Carl dollars will set us free. Gimme a freakin break.

The purchasing power of paper notes has been dragged down by banksters freely converting 1:1 between FRNs/US Notes and bankster credit digits. Thus far it hasn't made a dam bit of difference if one stacked paper signed by crooks at the fed and crooks at the treasury or instead stacked bankster digits. Jeez, they say they're "notes" right on them.

People assume banksters store and lend something of value because they've been conditioned to believe as much...by banksters converting between bankster credit and currency.

We needn't even go back that far. The 1935 peace dollar may do the trick. Heck the 2016 silver eagle says it's a dollar right on it, but it's heavy and inconvenient compared to plastic so never mind using that as money.

The masses long ago accepted the notion that the claim check for money was itself money and it has been downhill ever since.

No, I didn't say "dollars will set you free", I said dollars represent economic liberty, because you're not beholden to, or dependent upon, any man with your money in your own hands, even when that money is just a piece of paper.

Yes, the purchasing power of our money has been dragged down by the Fed and banks fraudulently misrepresenting their asset backed, debt based credit as being "our money", aided and abetted by dumbasses like Mike Maloney and Ron Paul propagating that erroneous notion for the Fed and banksters.

And, WTF is this "converting" nonsense you're babbling on about??? The banks keep accounting records of who they owe money to, and you're either getting your money or you're not, there's nothing being "converted".
 

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K, I don't want to be a butt but I never seen where that domestic chartered federal reserve bank should have anything to do with a foreignly incorporated for profit fiction.

So, if'n SEARS corporation has to ask a domestically created fiction if it can sell off a part of itself because it is doing better now then what the hell are all you guys sputtering about?

Seems to me that the fix is in and we are not in on it. If they are holding SEARS then what else are they holding? Big question there with damming repercussions.

Congress created the federal reserve and now the federal reserve holds controlling interest on a corporation that the public does business with, so what else's is going on? I'm thinking this SEARS thing is not in the federal reserve's charter. And, as it is holding a controlling interest; as in SEARS has to ask permission to do something beneficial for itself then I am saying every thing discussed so far in this thread is null and void because the thing being discussed is outside its charter.

In guttural terms my dogs tail can understand this means you and I are purchasing our wares from those elected dickheads called congress and have been for a while.

This is all completely wrong. I base this on the fact that the SEARS story has not been retracted. Sooooo, what else is going on?
 

solarion

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No, I didn't say "dollars will set you free", I said dollars represent economic liberty, because you're not beholden to, or dependent upon, any man with your money in your own hands, even when that money is just a piece of paper.

Yes, the purchasing power of our money has been dragged down by the Fed and banks fraudulently misrepresenting their asset backed, debt based credit as being "our money", aided and abetted by dumbasses like Mike Maloney and Ron Paul propagating that erroneous notion for the Fed and banksters.

And, WTF is this "converting" nonsense you're babbling on about??? The banks keep accounting records of who they owe money to, and you're either getting your money or you're not, there's nothing being "converted".

Okay Carl. You're right I'm wrong. Mike Maloney and Ron Paul are know nothing idiots...and Carl is right about everything.

Great, now there's no reason for you to freak out and start lobbing insults till you get banned again. I've no interest in going over the exact same information we've gone over on this forum a dozen times. I'll try not to say so many bad things about your best good buddies in the banking industry.
 
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arminius

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ya got that right, sol, she works for the banksters...
 

Bigjon

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Well there is one really big thing that is being overlooked here and that is the quality of the collateral that the Fed is holding to back the FRN's is very questionable.

Remember when the housing bubble burst and all the banks were holding millions of mortgage backed securities?

The Fed took them at full face value and to my knowledge is still holding them.

Question is what are those FRN's really worth if the Fed has to liquidate all the crap it's holding as collateral?
 

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Well there is one really big thing that is being overlooked here and that is the quality of the collateral that the Fed is holding to back the FRN's is very questionable.

Remember when the housing bubble burst and all the banks were holding millions of mortgage backed securities?

The Fed took them at full face value and to my knowledge is still holding them.

Question is what are those FRN's really worth if the Fed has to liquidate all the crap it's holding as collateral?

Less than Zero.
 

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Actually, 1791 dollars might.

You mean the Spanish Milled Dollar? That was the predominant global currency at the time of the Revolution, and also carries prominent mention in the Coinage Act of 1792.

DOLLARS OR UNITS--each to be of the value of

a Spanish milled dollar as the same is now

current, and to contain three hundred and

seventy-one grains and four sixteenth parts

of a grain of pure, or four hundred and

sixteen grains of standard silver.


... Coinage Act of 1792

PMs are money.
 

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Okay Carl. You're right I'm wrong. Mike Maloney and Ron Paul are know nothing idiots...and Carl is right about everything.

Great, now there's no reason for you to freak out and start lobbing insults till you get banned again. I've no interest in going over the exact same information we've gone over on this forum a dozen times. I'll try not to say so many bad things about your best good buddies in the banking industry.
Well, they're either idiots or they are controlled opposition.

I posted the links that corroborate the facts as I've stated so if I'm wrong then, PROVE IT.

That should be simple enough for a smart, internet savvy, guy like you.

And, I'm the one exposing the bankster fraud, you're the one on here staunchly defending them, so I guess that makes you the bankster's good buddy, and you know what a good buddy is, don't you?
 

BarnacleBob

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Well there is one really big thing that is being overlooked here and that is the quality of the collateral that the Fed is holding to back the FRN's is very questionable.

Remember when the housing bubble burst and all the banks were holding millions of mortgage backed securities?

The Fed took them at full face value and to my knowledge is still holding them.

Question is what are those FRN's really worth if the Fed has to liquidate all the crap it's holding as collateral?

Yes, I agree with the concept that the collateral that the Fed is holding is wanting in "real" value... that said, I cannot agree that the collateral mentioned is backing US Treasury issued FRN's, because it is not... The aforementioned "distressed" & tier one assets & collateral held by the Fed is the backing for the Feds issued "dollar denominated CREDIT."

Once again the misunderstanding arises, the Fed is a BANK, its main customer is the US .gov.... its secondary purpose is to serve & regulate the banking system by & thru FOMC policies & dictates....

Banks cannot create currency & coin, they must purchase these from the US Treasury dollar for dollar... they do however create synthetic creit denominated in dollars.... hence synthetic electronic credit dollars that serve & act as proxie replacements for physical dollar currency & coinage.

The Fed & member banks DO create synthetic credit dollars by leveraging their capital which increases the amount of synthetic dollars in circulation. For instance M2 is reported by the Fed to contain about $11.5 tt in demand deposits... this means the banking system has $11.5 tt in claims against a physical inventory of $1.4 tt in actual currency.... This represents the banking systems liabilities or debts that the banks OWE to their demand depositors....

To evaluate the banking system one would add up all of the banks in the systems unencumbered assets & capital then subtract that number from the banking systems liabilities... one may then assess the value of the banking systems synthetic dollars....

The charts evidencing the loss of $ PPP against gold are misrepresenting the facts.. A physical dollar is worth 100 cents, while these charts emphasize that a $ possesses about $.04 PPP against the gold backed dollar. The misunderstanding & misrepresentation arises because the physical dollar is regarded & treated with the same value as the banking systems synthetic credit derived "token" dollar substitute.

The banks have levered their capital bases while expanding credit aggravates to the degree that their synthetic currency is only worth four cents compared to a time when both the gold dollar & bank credit operated at a ratio that was considered in balance & somewhat in equalibrium one to the other....

This the fraud that the Fed, Treasury & banking system have hoisted upon the people & the markets... namely a US Treasury issued physical dollar is worth 100 cents, while the banks synthetic credit dollars are only worth $.04 cents.... Of course this is a great deal for the banks... they issue say $1000 in credit at a cost of $40.00 and expect repayment @ 100 cents... What a deal for them!
 

solarion

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I posted the links that corroborate the facts as I've stated so if I'm wrong then, PROVE IT.

You posted some long winded gibberish from the maggots at the BOE about money multipliers...who cares. ...and your own personal gospel legal tender (color of)laws.

We've been over this stuff again and again Carl. You torpedo every thread on this and similar topics with your incessant whining about bank credit vs currency vs money blather. My fault this time, I should have just ignored you when you once again cited your opinion as fact. I'll just put you back on ignore before you blow another gasket.
 

Joe King

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For instance M2 is reported by the Fed to contain about $11.5 tt in demand deposits... this means the banking system has $11.5 tt in claims against a physical inventory of $1.4 tt in actual currency.... This represents the banking systems liabilities or debts that the banks OWE to their demand depositors....
Over all these years, why do you think there's only been a total of $1.4T printed for circulation? It's because that's currently how much it takes to satisfy the demands for cash by those holding the $11.5T in demand accounts.

If more people demanded cash, they'd print more of it and if people start asking for less, they'll end up printing less.