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Alas - a reasoned view (though one I don't entirely agree with) - this thread was getting a little stale with a technician and a state school grad (I kid I kid, I have many friends in the Berkeley econ faculty).

Oh boy. Well, you know what - we aren't academics here right? Why get angry? Just trade your convictions. You think fed is a terrible institution that's out there to scam people? Cool - short the dollar, short the long rates, and short the equity market? And thank the fed while you count your...

Um, I have. I have an advanced degree in economics, an undergrad degree in history, and a math degree. Unlike most people around here, I actually trade. I trade both credit and money market instruments for institutions in fairly respectible volumes so I care a lot about the fed - when it's right...

This is kind of funny actually... suppose we have the following: An Econ Major: Burn your econ textbooks An Econ Phd (I'm not one): It's more complicated than what undergrad textbooks says - there are things we understand and there are things we don't; here's what we think is true and here's...

Every major economy in the world has a central bank that carries out monetary policy (the degree of independence from the government varies and is important. The US Fed is widely considered one of the more independent and effective instituations). We have the ECB, the Bank of Japan, the Bank of...

Why? Without quoting conspiracy theories and childishly inaccurate economic reasoning - why? While there are rationale and reasonable objection to certain fed policies, Fed as an economic mechanism has merits that are well understood and accept in the actual finance and economics community...

This is so completely illegal it's not even funny.

Not at all. On this announcement, Citibank's CDS traded from 42.5bps this morning to 38.5bps - implying that the bank is less risky. It's a symbolic move.

Just one question: What exactly is the fed doing with their "profit"? As far as we know, fed governments and chairmen aren't exactly rolling in it....

Link on the second page.

Clearly, governments have lied and made up data (to wit, China and the Soviet Union in the 50s through 70s, probably even now). But your earlier point is exactly right - consider the Iraq matter - a presidental administration with the support of its military and intelligence agencies could not...

Go to the next page! That's just one side of the accounting statement. The government first pays the Fed as holders of treasury securities. The fed then rebates the interest back to the treasury at the year end. How difficult is that to understand.

I offer a third party audited set of statements that are widely read by every private, quasi-public, and central bank in addition to investment managers, NGO groups, and other international organs. You propose that all these public and private entities who can't seem to agree on any issue are...

Well - let's do this. What can we (or anyone) show you that will disprove the fact that the fed is a conspiracy of sort (note: I didn't say prove, just disprove)? Is there anything - any observable fact that can do that? If not - then what you have is faith - faith that the federal reserve is a...

http://www.federalreserve.gov/boarddocs/rptcongress/annual06/pdf/tables.pdf The above link contains the GOP and private accounting firm audited 2006 annual report. On page 293-5 contains an annual acccount of interest rebated to the US Treasury. Now, obviously, you can claim that this...

How many time has it been stated that there are clear procedures whose implementations are audited both by government and private organs that interest paid to the federal reserve by the government are rebated to the government. Seriously - what's your problem. Your willful ignorance doesn't...

No. That's not correct. "The Federal Reserve's most critical role is to keep the economy healthy through the proper application of monetary policy." (http://www.frbsf.org/publications/federalreserve/fedinbrief/roles.html). Inflation is but one aspect of it. Moreover, the Fed's actions in the...

It's not the fed's job to move rates to reflect some "reality". Interest rates is a monetary policy instrument. In this case, raising rates is not necessary to curb cheap housing loans. It has already happened with this credit crunch. (whether or not rates should have raisen two months ago is...

And to this joker: no you don't have any recourse. Any fund that's marked-to-market will necessarily incur the probability that it's NAV dips below 1. It's true even if holds nothing but treasury bills: reason - as the daily rates move change, the treasury instrument you hold will trade above...

In all likelihood (of course, I could be wrong, naturally), the person answering the phone has little access about the exact composition of those funds. Fund administrators (aka - big boobed chicks who answer the phones all day) are usual as far removed from the trading floor and the investment...