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|User Info||Ron Paul Drops "Sound Money" And Endorses PRINTING!; entered at 2011-07-03 02:03:14|
Registered: 2009-02-28 DFW, Tx
I don't buy Bakers nonsense. Banks can always get reserves if they have government bonds. This nonsense of taking interest bearing securities out of the private sector is because banks don't have any good paper to get reserves. So, they are letting depositors put the liquid cash into the banks, so the banks don't have to try to sell their crap onto the market and thus can continue to write hot checks. Reserves have absolutely nothing to do with lending other than allowing some to excessively lend. The crisis would have never happened if the banks weren't full of toilet paper and interbank loans based on the credit of the banks themselves. They blew the biggest credit bubble in history with very little in reserves. They invented their own ledger entries without the Fed. This is why when it blew up, it took so much Fed money to keep the whole game from turning over. The banks are liable for all of this money.|
Paul wants to get rid of the Fed. If they lost their backing for their currency, they would be broke, because they are the issuer of the notes in circulation.
What I believe is the Fed has provided the means for the banks to buy bonds and t-bills, thus resecuring their balance sheets. I don't believe for one minute the Fed intends to pick up more than a couple hundred billion of this money. Baker needs to take an enema, because the Fed is concerned with the banks themselves and couldn't care less about the government, except to appease them enough to keep their charter. The Fed and Wall Street carry on a massive orgy while the rest of us miss out.