The Zionist conspiracy wants another US war

Normally, the govt creates a bond and 'sells' it to the Fed. The Fed creates the money electronically and deposits it in the govt's account, and the govt then spends the money. The Feds books show a liability for the govt's account, and an asset consisting of the bond received. The books balance.

Apparently this process is circumvented in quantitative easing, and instead of buying govt. bonds, the Fed buys junk from the banks. So, the Fed creates the money out of thin air and uses it to buy bogus assets from bank X, that is it credits bank X's Fed account with the amount of the purchase, and takes possession of the bogus assets. The Fed's books balance as the money in X's account appears as a liability, and the bogus assets appear as an asset.

There are two benefits to the bank .... first it gets rid of the bogus asset by selling it at face value to the govt, second, the funds it receives from the Fed can then be leveraged to loan 10 to 20 times that amount, so it benefits from increased loan profits, and the money supply is increased.

Now, back to the Zionist conspiracy to get the US involved in another war .... here we have a YouTube debate on the very subject between Abe Foxman and John Mearsheimer ... and I must say I'd never heard Foxman before .... oy vey .... what a mess ...

http://www.youtube.com/watch?v=4wfisqhruzQ
 
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Can we have a sub forum where the Hitler huggers can just post ''I hate da Jooz!" over and over again?
 
dafydd said:
Can we have a sub forum where the Hitler huggers can just post ''I hate da Jooz!" over and over again?
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I've suggested a new sub form which could be called Alternate History Theories or Revisionist History Theories (which would allow for other topics besides Holocaust denial). The mods in their wisdom have not yet deemed this necessary.

The general consensus is that the CT forum is "good enough" for the Hitler huggers to dump their "crap" which will give you an idea of the esteem in which this forum is held my other JREF members.
 
Saggy said:
Half the US economists (Schiff, Faber, Rubini, et. al. on YouTube) are predicting a collapse of the dollar, I think, because the US is printing money hand over fist to bail out the bankers (1/3 of the Zionist conspiracy).
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False.
 
Saggy said:
Good (implied) question.

Creation of money is one of the mysteries. The great quote is from Galbraith ... “The process by which money is created is so simple that the mind is repelled".

Here is how I think it works .... (to be corrected) The basic process is that the govt. prints a bond, and the central bank sells it. The buyer deposits the price of the bond into the central banks account. This takes money out of the economy. However, the central bank now lends the money at minimal interest (close to 0 now) to the regional banks, the regional banks 'leverage' the money at the mandated rate, lend 10 to 20 times the amont of the bond into the economy, thereby increasing the money supply.

But, that may not be right ....

Is that the mechanism employed for 'quantatative easing'? Let's google ....

wiki ....

Quantitative easing (QE) is an unconventional monetary policy used by some central banks to stimulate their economy. The central bank creates money which it uses to buy government bonds and other financial assets, in order to increase the money supply and the excess reserves of the banking system; this also raises the prices of the financial assets bought (which lowers their yield).[1]

Like I said, it's a bit of a mystery. What does, in the above paragraph, the phrase 'The central bank creates money' mean?

Further ...

Steps

1. The central bank has previously targeted an extremely low rate of interest, near or at zero percent.
2. The central bank credits its own bank account with money it creates electronically.[4][32]
3. The central bank buys government bonds (including long-term government bonds) or other financial assets, from commercial banks or other financial institutions, with the newly created money.[4][32]

So, I'm not entirely clear on the process here, as according to wiki 'The central bank credits its own bank account with money it creates electronically.' which does not strike me as credible.

Clearly, this needs to be clarified. What is the bookkeeping entry when the central bank credits it's own bank account.
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False. The Fed creates money by buying assets from member banks, there is no mystery.
 
Saggy said:
Apparently this process is circumvented in quantitative easing, and instead of buying govt. bonds, the Fed buys junk from the banks.
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The Fed is going to buy Treasury Securities from banks, which is the normal way they introduce money into money into circulation.

Stop watching conspiracy theorist gibberish on Youtube and take some economics courses.
 
respect said:
The Fed is going to buy Treasury Securities from banks, which is the normal way they introduce money into money into circulation.

Stop watching conspiracy theorist gibberish on Youtube and take some economics courses.
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but...but....with out the economic craziness how can all the conspiracy theories work? LOL
 
respect said:
False. The Fed creates money by buying assets from member banks, there is no mystery.
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The usual question with Zionists is 'are they stupid, or are they just playing stupid?'. It's a pity, but it makes no difference here, as our Zionists exhibit as little knowledge about econ as they do the conspiracy to involve the US in a war with Iran.

As to the Zionists conspiracy to get the US into a war with Iran, read ...

Israel ’s War with Iran and The Zionist Power Configuration in America

by Prof. James Petras

http://www.globalresearch.ca/index.php?context=va&aid=9590

If, of course, the Zionists have not blocked the site on your computer. Excerpt from the intro ....

“The present economic sanctions on Iran have exhausted themselves. Iranian businesspeople who would not be able to land anywhere in the world would pressure the regime.” Israeli Prime Minister Ehud Olmert, speaking to US House Speaker, Senator Nancy Pelosi in favor of a unilateral, pre-emptive US naval blockade of Iran. (Haaretz May 21, 2008.)

“It was a triumphalist conference. Even this powerful organization (AIPAC), the most powerful group in the US Israel lobby, had never seen anything like. Seven thousand Jewish functionaries from all over the United States came together to accept the obeisance of the entire Washington elite. The three presidential hopefuls (Hillary went too) made speeches, trying to outdo each other in flattery. Three hundred senators and members of Congress crowded the hallways. Everybody who wanted to be elected or re-elected to any office came to see and be seen.” Uri Avnery, London Review of Books, July 3, 2008. page 18
 
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And yet, here we are, almost three years later and a change of administration, and no war.

That's a h*ll of a lot of power.

And BTW -- you seem to have forgotten to respond to this post,
. an oversight I'm sure you'll hasten to correct.
 
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Saggy said:
The usual question with Zionists is 'are they stupid, or are they just playing stupid?'. It's a pity, but it makes no difference here, as our Zionists exhibit as little knowledge about econ as they do the conspiracy to involve the US in a war with Iran.
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When the Fed wants to expand the money supply they purchase Treasury Securities from approved banks. There is nothing mysterious about this.
 
respect said:
When the Fed wants to expand the money supply they purchase Treasury Securities from approved banks. There is nothing mysterious about this.
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That is the market mechanism, the other method is to buy bonds from the govt. They can also manipulate the required reserve ratio.

But here we're discussing 'quantitative easing' and they are doing neither, they are buying crap from the banks. According to a financial blog I read this ( the Fed buying securities not insured by the US govt) is expressly prohibited by law, but, what the hell ....

And there is even another level, the secondary credit market, created by the derivatives, but I can't recall how it works right now.
 
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Saggy said:
That is the market mechanism, the other method is to buy bonds from the govt. They can also manipulate the required reserve ratio.

But here we're discussing 'quantitative easing' and they are doing neither, they are buying crap from the banks. According to a financial blog I read this ( the Fed buying securities not insured by the US govt) is expressly prohibited by law, but, what the hell ....

And there is even another level, the secondary credit market, created by the derivatives, but I can't recall how it works right now.
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Repeating false claims will not make them become true, once again, you are wrong.
 
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