RED ALERT: FX Dislocation_In_Process

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 11:28 am

December 03, 2008

"IF THE FEDERAL RESERVE BANK WERE A COMMERCIAL LENDER, it would be a candidate for receivership, based on its capital ratios. Bank examiners generally view any lender with a ratio below 2% to be dangerously undercapitalized. The Fed's current capital ratio, or capital as a percentage of assets, is 1.9%.

The Fed has provided so many loans and emergency credits -- to banks, brokers, money funds and foreign countries -- that its balance sheet, viewed one way, is as leveraged as any hedge fund's: Its consolidated assets amount to 53 times capital. Only 11 months ago, its leverage on this basis was a more modest 25 times, and its capital ratio 4%."

The FED is LEVERAGED at 53x! Anyone see a problem with this?

[ February 18, 2009, 05:29 PM: Message edited by: Gordon Gekko II ]

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 11:35 am

Duke - Honest question for you...is it POSSIBLE that the FEDERAL RESERVE gets bailed out by the US Government?

sportsbettingman · Post by **sportsbettingman** » Wed Feb 18, 2009 11:36 am

.

[ February 18, 2009, 05:37 PM: Message edited by: sportsbettingman ]

KJ Duke · Post by **KJ Duke** » Wed Feb 18, 2009 11:37 am

Originally posted by GoBabyGo:

quote:Originally posted by KJ Duke:

Congress designed the structure of the Federal Reserve System to give it a broad perspective on the economy and on economic activity in all parts of the nation. It is a federal system, composed of a central, governmental agency—the Board of Governors—in Washington, D.C., and twelve regional Federal Reserve Banks. The Board and the Reserve Banks share responsibility for supervising and regulating certain financial institutions and activities, for providing banking services to depository institutions and the federal government, and for ensuring that consumers receive adequate information and fair treatment in their business with the banking system.

The Board of Governors of the Federal Reserve System is a federal government agency. The Board is composed of seven members, who are appointed by the President of the United States and confirmed by the U.S. Senate.

The Board is audited annually by a major public accounting firm. In addition, the Government Accountability Office (GAO) generally exercises its authority to conduct a number of reviews each year to look at specific aspects of the Federal Reserve’s activities. The audit report of the public accounting firm and a complete list of GAO reviews under way are available in the Board’s Annual Report, which is sent to Congress during the second quarter of each calendar year. Monetary policy is exempt from audit by the GAO because it is monitored directly by Congress through written reports, including the semiannual Monetary Policy Report to the Congress, prepared by the Board of Governors.

Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, half of which must be paid in while the other half is subject to call by the Board of Governors. The holding of this stock, however, does not carry with it the control and financial interest conveyed to holders of common stock in for-profit organizations. It is merely a legal obligation of Federal Reserve membership, and the stock may not be sold or pledged as collateral for loans. Member banks receive a 6 percent dividend annually on their stock, as specified by law, and vote for the Class A and Class B directors of the Reserve Bank. Stock in Federal Reserve Banks is not available for purchase by individuals or entities other than member banks.

The Federal Reserve

Now STFU until you can refute anything I say with something other than misinformed opinions. LMAO your source is the EVIL itself? Now please provide me a link to an audit report from GAO or Big accounting firm as this wwill discredit RON PAUL hey thanks inadvance! [/QUOTE]Fed's auditor's report for years 2006-2007, by Deloitte and Touche.

web page

GoBabyGo · Post by **GoBabyGo** » Wed Feb 18, 2009 11:37 am

Originally posted by KJ Duke:

quote:Originally posted by GoBabyGo:

Furthermore why hasn't the FED EVER been audited? Not even the great David Walker could pull that one off. I guess RON PAUL is nuts also for saying such a thing.

David Walker is President of the Peter G. Peterson Foundation, I like both of those guys. FYI - From 2000 to 2004, Peter G. Peterson chaired the Federal Reserve Bank of New York. Neither of these guys believe any of your Federal Reserve BS about being Intl bankers taking profits from the American people. Why? Because it's a made-up story like email spam concocted from half-truths and complete ignorance. [/QUOTE]Exactly did you read what you said? A FED Pres. is going to sound the alarm? Come on man you are reaching now. You cannot find an auditted report right?

DOUGHBOYS · Post by **DOUGHBOYS** » Wed Feb 18, 2009 11:39 am

I've been pm'ed that it takes a minimum of $60,000 an hour for Air Force One. One working man's middle income earnings for every one hour of convenience for our President. This does not include peripherals such as security, planning for stops, and other details...just the cost of using Air Force One.

I also thought this quote from Coolidge is relevant today-

" When Government enters the field of business with its great resources, it has a tendency to extravagance and inefficiency, but, having the power to crush all competitors, likewise closes the door of opportunity and results in monopoly."

KJ Duke · Post by **KJ Duke** » Wed Feb 18, 2009 11:39 am

Originally posted by Gordon Gekko II:

Duke - Honest question for you...is it POSSIBLE that the FEDERAL RESERVE gets bailed out by the US Government? They are one in the same Gekko. Can you bail yourself out?

KJ Duke · Post by **KJ Duke** » Wed Feb 18, 2009 11:40 am

Originally posted by GoBabyGo:

quote:Originally posted by KJ Duke:

quote:Originally posted by GoBabyGo:

Furthermore why hasn't the FED EVER been audited? Not even the great David Walker could pull that one off. I guess RON PAUL is nuts also for saying such a thing.

David Walker is President of the Peter G. Peterson Foundation, I like both of those guys. FYI - From 2000 to 2004, Peter G. Peterson chaired the Federal Reserve Bank of New York. Neither of these guys believe any of your Federal Reserve BS about being Intl bankers taking profits from the American people. Why? Because it's a made-up story like email spam concocted from half-truths and complete ignorance. [/QUOTE]Exactly did you read what you said? A FED Pres. is going to sound the alarm? Come on man you are reaching now. You cannot find an auditted report right? [/QUOTE]I thought you loved David Walker, now you're questioning him?

I already posted the Fed's audited financial statements.

sportsbettingman · Post by **sportsbettingman** » Wed Feb 18, 2009 11:46 am

Originally posted by KJ Duke:

quote:Originally posted by Gordon Gekko II:

Duke - Honest question for you...is it POSSIBLE that the FEDERAL RESERVE gets bailed out by the US Government? They are one in the same Gekko. Can you bail yourself out? [/QUOTE]So are you saying that the FED is a private, for profit bank that voluntarily gives its profits to the US government? They sound so good, I doubt they cook the books!

Interesting.

~Lance

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 11:46 am

Originally posted by KJ Duke:

quote:Originally posted by Gordon Gekko II:

Duke - Honest question for you...is it POSSIBLE that the FEDERAL RESERVE gets bailed out by the US Government? They are one in the same Gekko. [/QUOTE]They are not the US Government.

From the FED website..."The Federal Reserve System is considered to be an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive branch of government."

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 11:48 am

MONDAY, NOVEMBER 24, 2008

"The Fed has violated two principal tenets of central banking," says Lee Hoskins, former president of the Cleveland Fed : "First, don't lend to insolvent institutions, and second, don't lend on anything but the most pristine collateral" -- and at a penalty rate.

[ February 18, 2009, 05:48 PM: Message edited by: Gordon Gekko II ]

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 11:55 am

A quote attributed to Margaret Thatcher goes along the lines of

"The problem with socialism is that eventually you run out of other people's money to spend."

KJ Duke · Post by **KJ Duke** » Wed Feb 18, 2009 11:56 am

Originally posted by Gordon Gekko II:

quote:Originally posted by KJ Duke:

quote:Originally posted by Gordon Gekko II:

Duke - Honest question for you...is it POSSIBLE that the FEDERAL RESERVE gets bailed out by the US Government? They are one in the same Gekko. [/QUOTE]They are not the US Government.

From the FED website..."The Federal Reserve System is considered to be an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive branch of government." [/QUOTE]Semantics GG. The President appoints the Fed Board members, who make the decisions. And any profits or losses accrue to the US Treasury.

GoBabyGo · Post by **GoBabyGo** » Wed Feb 18, 2009 11:58 am

Originally posted by KJ Duke:

quote:Originally posted by GoBabyGo:

quote:Originally posted by KJ Duke:

quote:Originally posted by GoBabyGo:

Furthermore why hasn't the FED EVER been audited? Not even the great David Walker could pull that one off. I guess RON PAUL is nuts also for saying such a thing.

David Walker is President of the Peter G. Peterson Foundation, I like both of those guys. FYI - From 2000 to 2004, Peter G. Peterson chaired the Federal Reserve Bank of New York. Neither of these guys believe any of your Federal Reserve BS about being Intl bankers taking profits from the American people. Why? Because it's a made-up story like email spam concocted from half-truths and complete ignorance. [/QUOTE]Exactly did you read what you said? A FED Pres. is going to sound the alarm? Come on man you are reaching now. You cannot find an auditted report right? [/QUOTE]I thought you loved David Walker, now you're questioning him?

I already posted the Fed's audited financial statements. [/QUOTE]You did and I owe you an apology for it. When I am wrong I am wrong need to review them and check it out, but thanks for them.

sportsbettingman · Post by **sportsbettingman** » Wed Feb 18, 2009 11:59 am

Originally posted by KJ Duke:

quote:Originally posted by Gordon Gekko II:

quote:Originally posted by KJ Duke:

quote:Originally posted by Gordon Gekko II:

Duke - Honest question for you...is it POSSIBLE that the FEDERAL RESERVE gets bailed out by the US Government? They are one in the same Gekko. [/QUOTE]They are not the US Government.

From the FED website..."The Federal Reserve System is considered to be an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive branch of government." [/QUOTE]Semantics GG. The President appoints the Fed Board members, who make the decisions. And any profits or losses accrue to the US Treasury. [/QUOTE]Don't you mean the President is told who to appoint?

KJ Duke · Post by **KJ Duke** » Wed Feb 18, 2009 12:05 pm

Originally posted by sportsbettingman:

quote:Originally posted by KJ Duke:

quote:Originally posted by Gordon Gekko II:

Duke - Honest question for you...is it POSSIBLE that the FEDERAL RESERVE gets bailed out by the US Government? They are one in the same Gekko. Can you bail yourself out? [/QUOTE]So are you saying that the FED is a private, for profit bank that voluntarily gives its profits to the US government? They sound so good, I doubt they cook the books!

Interesting.

~Lance [/QUOTE]No Lance, read the link I posted above on the structure of the Fed. There is prviate capital that must be committed by Member Banks. But it is in the form of preferred stocks which pays a fixed dividend - they have no rights of ownership or profits. This is where the manipulation of facts also comes from.

The Fed Board of Governors is a government agency, appointed the President, which directs the actions of the Federal Reserve. Any potential profits by the Fed would be no different than profits generated by the post office (if the post office turned a profit).

Taking the post office analogy further, any commercial for-profit bank that is part of the Federal Reserve "system" would be like a vendor or provider of some good or service to the post office. For example, suppose the US postal service leases an office building from you to open a new branch. Does that qualify you to share in the profits of the post office, or give you the right to collect and deliver mail? No. As it is with for-profit banks in being a component of the Federal Reserve "system".

headhunters · Post by **headhunters** » Wed Feb 18, 2009 12:07 pm

lance- you will have 2 more inmates running around in california- the illinois house just voted to send our former gov. and his current appointed senator to california. the only state more f....k than illinois. oh - and doughboys- our other senator ( durbin) is on senate business- in turkey! been going on forever. as long as we elect them- they will do it. it really makes me laugh. kj- love your posts- and know you are right about most of this- i hope it takes away from your drafting- because we are in a league together i think.

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 12:14 pm

Originally posted by KJ Duke:

Semantics GG. The President appoints the Fed Board members, who make the decisions. And any profits or losses accrue to the US Treasury. I pick my doctor, but he's not a part of my family!!!

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 12:16 pm

duke - thoughts on these quotes...

"Whoever controls the volume of money in any country is absolute master of all industry and commerce."(Paul Warburg, drafter of the Federal Reserve Act)

"Permit me to issue and control the money of a nation and I care not who makes its laws."(Mayer Amschel Rothschild)

headhunters · Post by **headhunters** » Wed Feb 18, 2009 12:16 pm

btw- do you guys want an independant fed or not? please don't tell you want them to be elected- please. i mean- do you hate our elected officials or not? do you want " independant" agencies or not. more gov't or less? gecko- $ must be printed every year or we get deflation. i do agree this " plan" was not what i would have done- but you can bet if mccain gets elected- something close would have gone through. like i said- we get it- the fed f...k up, gov't f....d up, the rich got richer. none of that is much different than 300 years ago. only gov't has changed since 1930. getting bigger and bigger and bigger- and it hasn't mattered who got elected- reb's or dem's.

sportsbettingman · Post by **sportsbettingman** » Wed Feb 18, 2009 12:20 pm

Or these...

"I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." -- Thomas Jefferson to John Taylor, 1816.

"Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back." -- Sir Josiah Stamp, former President, Bank of England

~Lance

Gordon Gekko II · Post by **Gordon Gekko II** » Wed Feb 18, 2009 12:24 pm

Originally posted by headhunters:

btw- do you guys want an independant fed or not? please don't tell you want them to be elected- please. i mean- do you hate our elected officials or not? do you want " independant" agencies or not. more gov't or less? gecko- $ must be printed every year or we get deflation. i do agree this " plan" was not what i would have done- but you can bet if mccain gets elected- something close would have gone through. like i said- we get it- the fed f...k up, gov't f....d up, the rich got richer. none of that is much different than 300 years ago. only gov't has changed since 1930. getting bigger and bigger and bigger- and it hasn't mattered who got elected- reb's or dem's. 1. Less Government

2. Less Taxes

3. Less "entitlement" spending. Why is it even called entitlement spending. Like people are entitled to it. :rolleyes:

4. I want a system that is transparent.

5. I don't care about politics, I just want people who can do their job and do it well.

KJ Duke · Post by **KJ Duke** » Wed Feb 18, 2009 12:27 pm

Originally posted by headhunters:

btw- do you guys want an independant fed or not? please don't tell you want them to be elected- please. i mean- do you hate our elected officials or not? do you want " independant" agencies or not. more gov't or less? gecko- $ must be printed every year or we get deflation. i do agree this " plan" was not what i would have done- but you can bet if mccain gets elected- something close would have gone through. like i said- we get it- the fed f...k up, gov't f....d up, the rich got richer. none of that is much different than 300 years ago. only gov't has changed since 1930. getting bigger and bigger and bigger- and it hasn't mattered who got elected- reb's or dem's. Precisely. The Fed is independent by the same nature the Supreme Court is independent. Lobbyists have no power here because neither need campaign contributions to get elected.

I'd like to see all campaign money eliminated from government. Have a free, publicly-sponsored forum for political candidates with no political advertising/ spending whatsoever allowed. Special interests that drive our Congress would be taken out at the knees.

[ February 18, 2009, 06:29 PM: Message edited by: KJ Duke ]

sportsbettingman · Post by **sportsbettingman** » Wed Feb 18, 2009 12:29 pm

Originally posted by headhunters:

btw- do you guys want an independant fed or not? please don't tell you want them to be elected- please. i mean- do you hate our elected officials or not? do you want " independant" agencies or not. more gov't or less? gecko- $ must be printed every year or we get deflation. i do agree this " plan" was not what i would have done- but you can bet if mccain gets elected- something close would have gone through. like i said- we get it- the fed f...k up, gov't f....d up, the rich got richer. none of that is much different than 300 years ago. only gov't has changed since 1930. getting bigger and bigger and bigger- and it hasn't mattered who got elected- reb's or dem's. The more I learn, the more I feel screwed.

When 90% of the information we get through the media is owned by big business, democracy is lost. It's a game of brainwashing and propaganda that is driven by money.

Just stop and think about this "democracy"...

People buying favors left and right, creating candidates through manipulation and promises to who backs them financially.

They give you Joe and John every four years, and millions and millions get donated and pledged to these guys...and 90% of their campaign financing goes where???

...the media owned by big business by way of propaganda commercials and the like.

Makes me sick.

~Lance

sportsbettingman · Post by **sportsbettingman** » Wed Feb 18, 2009 12:31 pm

Originally posted by KJ Duke:

quote:Originally posted by headhunters:

btw- do you guys want an independant fed or not? please don't tell you want them to be elected- please. i mean- do you hate our elected officials or not? do you want " independant" agencies or not. more gov't or less? gecko- $ must be printed every year or we get deflation. i do agree this " plan" was not what i would have done- but you can bet if mccain gets elected- something close would have gone through. like i said- we get it- the fed f...k up, gov't f....d up, the rich got richer. none of that is much different than 300 years ago. only gov't has changed since 1930. getting bigger and bigger and bigger- and it hasn't mattered who got elected- reb's or dem's. Precisely. The Fed is independent by the same nature the Supreme Court is independent. Lobbyists have no power here because neither need campaign contributions to get elected.

I'd like to see all campaign money eliminated from government. Have a free, publicly-sponsored forum for political candidates with no political advertising/ spending whatsoever allowed. Special interests that drive our Congress would be taken out at the knees. [/QUOTE]Sweet...same time posts with much agreement from me.

~Lance