The American debt crisis in 5 charts

[Nimitam]

You rant about transparency, but you are silent about what transparency you require. You want a list of member banks of the Federal Reserve Banks? Here you are (as of 2014). Purchasing shares in the Fed Bank is a condition of participation in the Federal Reserve System, so essentially all banks that have access to the Federal Reserve are owners in their respective Banks. That took approximately five seconds to find. What you require is not transparency, but rather a cure for laziness.

The financial system is special in that every sector of the economy depends on it--there is no area of the economy that is not integrated into the financial system, and thus it requires special protection in times of trouble (unlike physicians and lawyers, etc.). After the government sentenced Arthur Andersen to death, the collateral damage was massive, so perhaps when the next of the Big Four runs into trouble, it will get a bailout, and then you can rant about self-regulation of accountants, as well. Am I happy that banks loaned massive amounts of money to deadbeats, built up a huge book of NPLs, and required a bailout? No, absolutely not, and the fact that there were no bonus clawback provisions only serves to rub salt in the wounds. But the alternative, of a 1930s-style bank run and collapse, was far worse. You play the cards you are dealt, not the ones you wish you had.

That said, you are wrong on the facts of the bailout, so no surprise about your state of confusion. It was not $800 billion that was given to the banks, only a fraction of that was ($245bn). You complain about the banks, but the banks have repaid all of the bailout funds, plus interest. Why don't you complain about the GSEs that were bailed out ($187bn)? Why don't you complain about the auto manufacturers that were bailed out ($79.7bn)? Why don't you complain about the insurance companies that were bailed out ($67.8bn)? Why don't you complain about the deadbeat mortgage defaulters who were bailed out ($13.7bn)?

There is nothing to run away from. You are caught up in your fever-dream of conspiracies and propaganda, and would be better off seeking your answers from your usual sites (Ron Paul, Infowars, etc.), as I am sure they will be happy to tell you that the banks are controlled by the Rockefellers, Rothschilds, Freemasons, Trilateral Commission, Reptilians, Aliens, etc.

I suffer from insomnia, so I have to thank you for giving me such a simple topic that it is putting me to sleep. Beam me up, Scotty, no signs of intelligent life here. I'm out.

Ah finally a sensible reply.

Now tell me what is the percentage of holding each banks have in the Federal bank ?

What is the amount of cross holding each banks had and who really controls the stake ? Which bank is the Largest share holder due to their cross holdings.

Are you aware that NO NEW BANK can buy into the Federal reserve bank ?

Why is this information treated as Sate Secret ? It should be open source information available to anybody and everybody. Similar to ANY stock exchange information in the world.

Now about the Bailout, there was ANOTHER way to effect the bail out. The US GOVT. could have PURCHASED BACK the stock of the Federal Reserve Bank in exchange for the money. (YOUR money). They choose not to do it. This should have been the most straight forward solution and yet it was not.

Now about stating the bailout amount of 800 billion $ was wrong. Don't take my word for it, take the world of the Special Inspector General for TARP who in the summary of the bailout said that the total commitment of government is $16.8 trillion dollars with $4.6 trillion already paid out.

Yes, that is TRILLION's of $ and not merely hundred of Billions of $. The Financial Jugglery that has managed to keep this bubble hidden and the new Jugglery that keeps this bailout invisible is amazing and does truly deserve a Nobel prize. The GSE bail out is part of the same deal.

Bailout to any other industry like insurance or auto-mobile is negligible as compared to this.


I do not have to seek out conspiracy theory when the Scandal is of such EPIC proportion. What is amazing is that you refuse to see what is right there in front of you or even acknowledge it.


You do not even wish to know who are the direct and indirect Largest shareholders of the Federal Reserve bank. What you want is to 'go back to sleep' and go back into the 'Matrix'. ......... well lucky you. Sweet dreams.

 

[Sliver]

@Nimitam you are really trusting the conspiracy theories a little too much. There no dearth of people who hate the fed and the control of money flow. But so far, there is no viable alternative. Until then we have to work with the system.

 

[C130]

so in your own perspective, everything is hunky dory in the US? there are no racial tensions building up? btw im not agreeing nor disagreeing, just expressing the feeling of many that live in the US.

only people making a deal out race issues is black people and social justice warriors.


I wish they would just leave and move to Canada like they say they will when Trump becomes President


debt is growth and more debt is good kinda sound like Ultron now.

 

[Nimitam]

@Nimitam you are really trusting the conspiracy theories a little too much. There no dearth of people who hate the fed and the control of money flow. But so far, there is no viable alternative. Until then we have to work with the system.

I trust my own judgement.

I do not care how many people hate the fed or whatever. That is not my concern. The TRUTH is my concern.

There is a viable alternative which is to have TRANSPARENCY about the share holders.

Why do you refuse to see what should have been obvious ? What possible reason can you have against having TOTAL transparency and detailed analysis about share holders and majority stock holders ?

 

[Sliver]

@Nimitam what do you think is the purpose of the fed? please describe what you know (not copy paste from wiki or somewhere). what do you think is the "role" of the fed?

 

[Gauss]

Americans can actually pay off their debt by simply printing money. Money is a certificate of power issued by the government. It is how economic activity is organized at the individual level instead of having central planner. How many of these certificates a government can issue depends on the gold it has and also indirectly upon the wealth in its country. American government has the most gold therefore its certificate is the most powerful and legitimate. Whole global economy works on this certificate. Americans can print dollars and pay their debt because the receiver will gladly accept the power that the American government will be bestowing on the creditor. Others countries cant do that because their certificates are not internationally accepted. They must first built gold reserves against which to issue paper money.

 

[Nimitam]

@Nimitam what do you think is the purpose of the fed? please describe what you know (not copy paste from wiki or somewhere). what do you think is the "role" of the fed?

So rather than reply to me question, you have deflected by asking me new questions.

How is that relevant ? I am not seeking your approval.

Why is it that you do not seek Transparency of Ownership of Fed bank. ?

 

[topgun047]

This is WRONG. any country that does this will be hit by hyper inflation. I request you to increase your knowledge on what is paper currency and how or why cannot be printed.

US does print money to pay away it's debts and has been doing it for quite sometime.
Please get your facts right.

Yes other currencies will experience hyperinflation if they use the same strategy e.g Zimbabwe or post WW1 Germany.

However US is able to escape this by the virtue of US Dollar being global reserve currency for international trade.

This means even if US prints more and dollars thier demand will remain high since other countries will continue to stockpile dollars.

Essentially USA is exporting its inflation to other countries.

This technique worked like a charm when US had close to 50% of world's GDP and Industrial output and those generations lived like kings.

But now other countries have wisened upto this scam due to its blatant misuse by US and refuse to increase thier dependence on dollar than absolutely necessary.

Eventually global reserve currency that is US Dollar will be replaced by a basket of currencies dominated by Renminbi which is why US is so troubled by its debt unlike before.

P.S Iraq was attacked under guide of having WMDs when it started selling its oil in Euros instead of dollars thereby decreasing demand for dollars.

Similarly Saudis selling thier oil exclusively in dollars is the reason that are so chummy with USA and why USA hasn't brought freedom and democracy to them as of yet.