HYPER inflation just around the corner? fed Is Paying Banks NOT To Lend 1.8 Trillion

Are you honestly suggesting that the banks are not investing those monies from other aspects of their business and making quite the return? I suppose the record low stock market volume is supportive of this constant rally all on its own? lol.

The Fed taking these steps is only making the economy (*)(*)(*)(*)tier and further decreasing the desire to spend. Everyone knows rates are going to need to go up and nobody wants to be left standing when the music stops. Systems (*)(*)(*)(*)ed man.

 

Banks can't invest reserves in to the stock market.

I guess, if you are just trying to make chit up because you hate the government.

 

more 1890,1893 One of the causes for the Panic of 1893 can be traced back to Argentina. Investment was encouraged by the Argentinean agent bank, Baring Brothers. However, a failure in the wheat crop and a coup in Buenos Aires ended further investments. This shock started a run on gold in the U.S. Treasury, as investors were cashing in their investments. T, 1901 now this was a caused by a robber Barron

, 1907 was caused by Cornering copper

http://en.wikipedia.org/wiki/United_Copper

 

So now you are going on rants and attacking me? What I said in the post you quoted will happen if we ever lose reserve currency status. Its not a conspiracy...it WILL happen. Not saying we are going to lose that status any time soon...I am simply saying that all those dollars will come home to roost if that does take place. I am dealing in reality not conspiracy.

What don't I understand about it? How was my above statement wrong? What if the primary dealers just stopped being primary dealers and buying bonds. What would happen then? What if OPEC just decides to start taking Rupels instead of dollars? Worldwide economic collapse is what would happen. That is what I mean when I say that if one person or group of people decides to stop playing along...the entire system crashes.

More attacks without substance. Come on now.

 

I didnt say they were. I said they were using money from other parts of their business and using the reserves to cover.

GDP includes government spending. How again does that chart indicate that rates will not eventually need to go up?

 

It is a conspiracy because that's not what would happen if we lost reserve currency status. You are incredibly far from reality.

Like I said, you are a conspiracy theorist.

You aren't providing anything worth a rebuttal. It's all "what-if" conspiracies.

 

No?

Yep, each one more destructive than the last.

Immunity from people not wanting to invest money in them anymore?

 

Lol, that's not happening at all. You are just making stuff up.

I didn't post that chart because of your statement about rates going up. Rates will go up when the Fed wants rates to go up. Rates don't "have" to go up. If the economy grows slowly for the next 10 years they can keep rates where they are at.

 

your the one that said inflation was crazy in the 1800s because there wasn't a federal reserve, i just shown you the panics wouldn't of been stop by a federal because of paper money was not backed by gold back then a nd people panic more, now his time line folks are just slow sheep and sleep that dont panic, while the fed and government steals there money out of there wages. there was no income tax before 1913 so i say they where still better off

 

Quantitative easing is just a symptom. The reason the US Dollar keeps its strength (mostly) is that it is the de facto world currency. Even the purchase of crude oil anywhere in the world is done with US Dollars. Mild inflation may result from the increasing supply of dollars, but it would take a global crisis of faith in the value of the US Dollar to cause the hyperinflationary scenario outlined in the OP. If signs of this ever come to pass, take your money and buy real assets with it that won't be hurt by an economic depression and collapse in value of the dollar.

 

So if countries no longer need to hold dollars to buy oil...you really think they will keep them just to do us a "solid"?

LOL...nothing in your quoted text is conspiracy anything.

No it isn't....lol. You are hilarious.

Oh? What banks that you know of are in the business of letting money sit around making .25%....when some simple accounting work will bring yields much higher than that?

Rates will eventually need to go up. The Fed understands this, which is why they are talking about tapering their activities. They understand that if they continue down their current path the US will become a less and less attractive investment option for everyone but the primary dealers. They also understand what that means for the country.

 

So the fact we have the largest and most productive economy in the history of mankind has nothing to do with the USD's strength? It's all this "world currency" conspiracy? LMAO!!

 

They don't need to hold dollars to buy oil now. They will keep them because we have the largest demand in the world and the ability to consume their products and put their labor force to work. You have a fundamental misunderstanding of global economics. China does not take all our money because they need it to buy oil, lol.

A conspiracy theorist would not understand what a conspiracy is

Sure you are. Talking about Primary Dealers not buying our bonds, banks using these excess reserves to buy stocks, exporting inflation, global collapses, reserve status as the reason why countries do business with us and we will collapse when they stop... blah blah blah. All conspiracies with no factual backings.

That's not even realistic. Reserves simply sit at the Fed. They can't do anything with them to purchase stocks. You are just making things up as always.

Lol, rates don't "eventually need to go up". They will go up when the Fed wants them to. And the Fed said the economy and inflation is growing therefore they might stop their bond buying programs which indicates rates will go up. That's just normal Fed business and has nothing to do with the conspiracies you are talking about.

 

I said nothing of the sort. It is the fact that we do have the largest and productive economy that helped establish the US Dollar as the de facto world currency. That is why there are currently already a lot more dollars and dollar instruments out there then can be supported by the strength of that economy. It is a matter of global market forces and world perception; there is no conspiracy of any kind implied in my post.

Akphidelt2007 must have a rather odd view of the world indeed, to interpret my post as some kind of weird conspiracy theory. Next time, just read the words and leave out the craziness.

 

us dollar is still based on gold that's one reason why, look at the reserves.. we dont produce much GDP any more but we got commodities

 

This is one the dumbest posts I've ever read.

 

Our position as the worlds greatest economy is slipping rapidly thanks to Obama bush and Clinton.

Some people - mostly libs - assume the US Is immortal but we aren't.

We are currently being led by the stupidest "smart" people in the history of the republic and they are killing the goose that lays the golden eggs.

 

GDP is a pretty silly metric to make your case .

http://www.cato.org/blog/government-spending-private-gdp-down

 

You said... The reason the US Dollar keeps its strength (mostly) is that it is the de facto world currency

That is not at all why it keeps it's strength.

 

really why is the imf 3rd on the list buying gold as fast as they can find it cheap.

 

Lol, using the cato organization as a source is a silly way to make your case.

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Because they want gold.

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Nah, we are doing just fine. You just hate the government which causes you to make chit up.

 

well yes but because they want to create the world currency
http://www.guardian.co.uk/business/2011/feb/10/imf-boss-calls-for-world-currency

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, and displace the us fed monopoly dollar with theres,

 

is that base on one income or two.. 30 years ago many women were not in the work force GDP was much stronger then today, tainted charts

 

Really? So you are really saying that oil for the most part is not priced in USD? You are really trying to make that case?

That was merely a what if. I am beginning to question your reading comprehension.

http://www.zerohedge.com/news/2013-...eposit-injection-kick-start-2013-market-looks

See above.

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Predictable response. Look at the data.

 

I didn't say oil is not priced in USD. I said they don't need to hold on to USD to buy oil.

Yea, you are nothing but "what-ifs". Nothing you say is even realistic. My reading comprehension is just fine. Your understanding of our complex system is not.

None of that proves whatsoever that it is legally possible for banks to purchase stocks with reserves or any accounting tricks dealing with reserves. By law banks are not allowed to use reserves to purchase stocks.

So government spending should not be included in our GDP? Is that what you are trying to say, lol.