Really Scary Fed Charts: NOV, US Bankrupt?

Posted November 26th, 2008 by StaxBrix

Fed Defies Transparency Aim in Refusal to Disclose (Update1): “The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

“The collateral is not being adequately disclosed, and that’s a big problem,” said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. “In a liquid market, this wouldn’t matter, but we’re not. The market is very nervous and very thin.”

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.

The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.”

While the Fed may be refusing to name individual firms, we can just look at the data from the Federal Reserve Bank of St. Louis to pin down exactly where the $2 trillion of emergency loans went. We can also determine how that in turn was deployed.
http://waronyou.com/2008/...

output

Imagine a spaceship (economy) powered by 3 boosters (debt, greed

On December 21st, 2008 Jim Brown says:

Imagine a spaceship (economy) powered by 3 boosters (debt, greed and speculation). Right after reaching it's zenith the spaceship starts losing it's boosters. The first booster to stall was debt, then speculation and finally greed. As the spaceship heads back toward earth in a deadly spiral picking up speed until terminal velocity is reached. The pilots pull the emergency parachute (print money) the spaceship's future has two possible outcomes.

1. The shute softens the landing and and we limp away from the wreck, we have a very slow recovery with chronic injuries (hyper-inflation).

2. The parachute burns up and the spaceship crashes and burns (great depression). It will be time to rebuild.

"Reality is the leading cause of stress amongst those in touch with it."
--Jane Wagner

Taxation without representation is Tyranny! (we are here again)

On December 21st, 2008 manwith4kids says:

Taxation without representation is tyranny

A slogan of the Revolutionary War and the years before. The colonists were not allowed to choose representatives to parliament in London, which passed the laws under which they were taxed. To be taxed only with the consent of one’s representatives in Parliament was a particularly cherished right of the people under English law, a right dating back to Magna Carta in the thirteenth century. Each additional tax caused fresh resentment among the colonists. Taxation without representation is one of the principal offenses of Britain listed in the Declaration of Independence.
As quoted from the New Dictionary

I contacted my congressman several weeks ago about this and the Fed using our money without disclosure of how or where and he never acknowledged my email. We are definitely being taxed without representation. Don't know much about this group, but from what I hear they have been good for the taxpayers. http://www.freedomworks.o...

sure is

On December 21st, 2008 StaxBrix says:

sure is

Wouldn't this be taxation without representation?

On November 25th, 2008 Ralph Waldo says:

Folks, just a second here...whoa!...now hold on!

On November 25th, 2008 tstorey says:

There is no problem with our country going bankrupt.

None whatsoever. Don't give it another thought.

We were officially bankrupt in the mid 1930's...FDR's second term or so.

Bankrupt?

Not a problem....ALREADY ARE.

Now if you study up on the bankers you will discover that the only folks using the word "bankrupt" is them and they want to use it because that has been their goal all along. No guns or bombs needed.

All they have to do is CONVINCE YOU that your country is bankrupt and then they can all the shots.

I suggest you study up on central bankers and banking and affirm the above.

If you want to control folks control the money....they do....now tel;l all your friends...then they will get angry and we can throw the bankers out.

So I suggest you stop posting that our country is "bankrupt" or "going to be bankrupt" any time now as it will only help the bankers convince everyone that we are.

It is a LIE don't repeat it because it makes it stronger.

Tell the truth about the banker and it will make the lie weaker and we won't be bankrupt in the bargain...waaay better option....right?

Have a nice day.

yes...technically, this country is already bankrupt!

On November 25th, 2008 ecorob says:

don't wait for the msm to cook up some catchy soundbite like "Black Tuesday" or whatever the hell they want to call when the "bottom fell out" or some quarterly report to actually confirm what we already know...

its official, two straight quarters of negative growth, so now we are in a true recession...MY ASS!

these "numbers" have been skewed for so long who knows how long we have been in a recession? who knows how long we've been bankrupt?

abolish the fed, abolish the irs, and get the hell out of the UN!

O Captain, My Captain, rise up and hear the bells!

Check this out boys and girls

On November 25th, 2008 dropthescales says:

http://research.stlouisfe...

It's pretty lengthy but scroll down to the conclusion and scan the rest. This guy hits the nail on the head and believe it or not he is an employee of the Federal Reserve of St. Louis. What he says would happen is starting to happen right now. We're going bankrupt whether you like it or not.

We're not going bankrupt.

On November 25th, 2008 Samuel Howell Jr. says:

We're not going bankrupt. That already happened some 70 odd years ago. The Federal Reserve is going bankrupt.

good point!

On November 25th, 2008 ecorob says:

funny, weird, don't you think?

O Captain, My Captain, rise up and hear the bells!

Probably going straight back

On November 25th, 2008 FreeJesseVentura says:

Probably going straight back to our Chinese or Japanese lenders.
.................
Truther?
No, sir!

HYPER-INFLATION!!!

On November 25th, 2008 GREEDisBAD says:

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---

Click on these charts and think about HYPER-INFLATION that many people have been talking about!

http://waronyou.com/2008/...

Thank you, StaxBrix for the link!

Hope you saw, at least, these charts.

On November 25th, 2008 GREEDisBAD says:

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---

http://3.bp.blogspot.com/...

http://4.bp.blogspot.com/...

http://2.bp.blogspot.com/...

That #4 one is the "moonshot"

On December 22nd, 2008 northstar says:

Tells me enough right there.

-
Show your support on the Ron Paul Map !
People worldwide support Dr. Paul too :-)
http://www.pollingmatrix....

BTW, Here is the link to one chart that you couldn't click on.

On November 25th, 2008 GREEDisBAD says:

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---

If you clicked on the charts, you probably found one chart that you couldn't click on. Here is the link to a larger version of the chart.

http://4.bp.blogspot.com/...

Hope you all saw all the charts. No, I don't see hyper-inflation, either!

I posted this in response to

On November 25th, 2008 Republicae says:

I posted this in response to every other thread that GREED has posted this comment...

You are so extremely predictable, every little glimmer of deflationary information you get you shine with glee, yet you seem to ignore so very much and it is very obvious to everyone here on the DP except yourself. I find it outstanding that you had to wait to respond to this post for so long, you were eagerly awaiting some tid-bit, some little smidgeon of information to defend your stance, but still you fail to look at the big picture.

I saw those a long time ago GREED, in fact a few months ago I mentioned them along with the fact that in the beginning of the year the non-borrowed reserves had dropped to nearly a -100%, since that time the reserves have exploded, partially due to the fact that the FED raised the rates it pays on such reserves.

However, let us consider a few things. We have a bankrupt government, David Walker said that it has been technically bankrupt for several years now. So, what must a bankrupt government do to get funds?

It will be running at least a Trillion Dollar Deficit, correct?

It will not cut spending, but increase spending, correct?

It will not be able to increase taxes, at least not to a scale that would make a difference, correct?

It is increasingly doubtful that the government will find lenders to borrow much more to operate, correct?

It will no longer be able to borrow from the American People as it did in WWII, they no longer have a savings rate of any notable content, correct?

So, where will all the money come from? It has to come from somewhere and there are no other options left to this government or the Federal Reserve but to directly inject fiat money into the system. No other options left to it, none whatsoever!

Guess, take a wild guess and then determine the effect of that direct monetary process on the economy, I estimate by 2010 at the latest, perhaps sooner!

So, GREED, one day you will learn that it definitely pays to keep your eyes on the broader horizon, focused on the long term and the bigger trends. When you do that then you will begin to understand that these things are not, as you apparently suppose, in a vacuum.

The near term is definitely a deflationary slump, as I have said many times, but the groundwork has been set, and the foundation for hyper-inflation, huge increases in interest rates and massive jumps in the prices of gold and silver are coming. To ignore those factors is to ignore a great deal of information necessary to form an actual educated opinion. So, you can get bogged down in the short-term, blinded by your dogma or you can begin to look at those long-term trends and actually see what is coming down the pike.

http://www.1776solution.b...

I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue. Barry Goldwater

How about a summary, GREED?

On November 25th, 2008 IamVoting4RonPaul says:

Give us your opinion.

Of course, he can't give a

On November 25th, 2008 Republicae says:

Of course, he can't give a summary because he doesn't know what he was looking at. He relies upon bytes of information and little else. It is ashamed that he is unwilling to look beyond the end of his own nose...he might just be able to actually contribute a worthy debate.

http://www.1776solution.b...

I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue. Barry Goldwater

I look forward to GREED's thoughts on the economy.

On November 25th, 2008 IamVoting4RonPaul says:

Always worth a read, in my opinion. Sometimes I pass them on to friends. He's got quite the cult following. Right up there with "Eraserhead".

I am sure that GREED is not

On November 25th, 2008 Republicae says:

I am sure that GREED is not even aware of the actual percentage of cumulative inflation since 1913, the money supply has been inflated 2188%, amazing isn't it? That is not counting the latest push of monetary inflation taking place over the last year.

http://www.1776solution.b...

I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue. Barry Goldwater

Oh Republicae,

On November 25th, 2008 IamVoting4RonPaul says:

GREED can't count up to 2188 -- he doesn't have that many fingers and toes, silly.

****

From an idiot on LeMetropole Cafe:

"History is replete with bouts of deflation and hyperinflation. One distinction that history shows, however, is that hyperinflation ends the life of a currency – it no longer is accepted as the medium of exchange. Although deflation is wrought with pain and suffering, defaults, bankruptcies, job losses, depressions, etc.; the currency is not destroyed. The slate of debt is wiped clean and the game begins anew. Deflation prolongs the life of the currency; hyperinflation destroys the currency. The first allows the game to continue. The second ends the game.

Bernanke and company have said that they will not allow deflation to occur. The only way to stop deflation or hyperinflation is to stop the inflation that comes first. Since the day the Fed was created it has repeatedly increased the supply of money. Subsequently, inflation has been baked into the cake.

If Bernanke holds true to his word then the Fed is going to attempt to stave off deflation by increasing the supply of money via inflation, which means further devaluation and loss of purchasing power for the U.S. dollar."

of you think thats scary

On November 25th, 2008 JohnGalt300 says:

Fortune Favors the Bold

take a look at this

http://www.youtube.com/wa...

thanks

On November 27th, 2008 StaxBrix says:

thanks

I remember you poo pooed the chart of Non-Borrowed Reserve of

On November 25th, 2008 GREEDisBAD says:

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---

Depository Institutions when it was around -100billion. You were saying something like it was only because of the rule change. Well, it is -332.750 billion in October.