Fed Reserve profits are the fastest growing revenue source for govt

[jficquette]

Quote from bond_trad3r:

One star me all you want. Fact is fed is electronically printing $85 billion a month, every month, with no hyperinflation.

When will the shit hit the fan. Tomorrow, next week, new year, never?

Can't have hyperinflation without wages exploding. I don't see that happening any time soon.

More likely interest rates go back to 6-8% to keep dollar from tanking.

All of these overpriced houses that looked like great deals at 4% are not going to looking so good when mortgage rates normalize.

 

[brokerboy]

they can't raise interest rates up because than the debt will sky rocket and your right i don't see wages go up either. this is an example of a government propping up an economy and they are do it all around the world.

Quote from jficquette:

Can't have hyperinflation without wages exploding. I don't see that happening any time soon.

More likely interest rates go back to 6-8% to keep dollar from tanking.

All of these overpriced houses that looked like great deals at 4% are not going to looking so good when mortgage rates normalize.

 

[jficquette]

Quote from brokerboy:

they can't raise interest rates up because than the debt will sky rocket and your right i don't see wages go up either. this is an example of a government propping up an economy and they are do it all around the world.

Rates will be forced up when people start to flee the dollar. Still 5-10 years away at which time we lose control of the value of our currency.

 

[zdreg]

Quote from piezoe:

Zdreg, there are two books I could highly recommend to you. One is the "Soros Lectures at the Central European University", and the other is "The Philanthropy of George Soros" by Chuck Sudetic.

I'm no expert on philanthropy, but I would guess that Soros would rank with the most philanthropic citizens of our entire U.S. history. In particular, he has used his wealth to help countless numbers of poor, downtrodden and dispossessed in many countries around the world. He is truly a remarkable individual.

right. that is why his foundation was kicked out of belarus for interfering in the internal affairs of the country.
why would i be interested in soro's philanthropic activities?

 

[zdreg]

Quote from brokerboy:

they can't raise interest rates up because than the debt will sky rocket and your right i don't see wages go up either. this is an example of a government propping up an economy and they are do it all around the world.

the market will cause interest rates to rise. there will be a tipping point when gov't actions can no longer hold interest rates down.

 

[bond_trad3r]

Fed Profit of $88.9 Billion Sent to Treasury in 2012
By BINYAMIN APPELBAUM
Published: January 10, 2013

WASHINGTON — The Federal Reserve said on Thursday that it sent $88.9 billion in profit to the Treasury Department in 2012, a record that reflected the vast expansion of the central bank’s investment portfolio.

www.nytimes.com/2013/01/11/business/economy/feds-2012-profit-was-88-9-billion.html

I dare all the doubters to look at this chart from the federal reserve. http://www.federalreserve.gov/newsevents/press/other/other20130110a.pdf

Agree or disagree with the fed policies, there is no doubt that what I'm saying is fact.

It's essentially a circle jerk between the Fed and Treasury but the real question is where is the inflation? Is Bernanke really that good?

 

[TGregg]

Quote from jficquette:

Rates will be forced up when people start to flee the dollar. Still 5-10 years away at which time we lose control of the value of our currency.

Flee the dollar. . . to where? Gold? Euro?

 

[bond_trad3r]

Quote from TGregg:

Flee the dollar. . . to where? Gold? Euro?

Yen?

 

[rodmike9]

Quote from TGregg:

Flee the dollar. . . to where? Gold? Euro?

If you can afford it, buy 'farmable' land

if not, buy gold. those who are buying gold, or who have bought gold aren't receiving a yield and will become impatient and sell. that is why, historically, 'real' assets or store of value increase (or decrease) in value at a velocity uncomfortable for most.....

 

[Humpy]

I have been watching a video from Michael Lombardi. Pretty worrying stuff on it. He has a proven track record of calling recent disasters and is calling another one starting about now !
He reckons it will be worse than the 2008 crisis and about as bad as The Great Depression.
He says:-
The Dow will fall about 50%
The Euro will collapse ( we were a bit ahead of him there.)
The Govts will be forced to raise interest rates to fend off inflation. Think what the debt repayment on $17 trillion will be annually.
Gold will rise to $3000 an ounce
etc.

Get your savings if any left, into something safe folks. ( he is selling a news letter )

I see Benny is talking later.
About time he told the incompetent politicians what a load of idiots they are. But he is a human with the courage of a worm I regret to say. Most of the politicians are rich enough to escape the consequences of their rotten policies.