Most frightening statement from the FOMC - ever: Be sure to have lots of USD on hand
- Thread starter ByLoSellHi
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Quote from ElCubano:
I came from barter city to tent city to boiler room 20 yr old mula machine to internet bubble millionaire to burst me bubble where'd me money go to thunderdome and perhaps back to barter city .... de pinga....
I should have stayed in Cuba...I'd be at the malecon, without a shirt or shoes shooting the shit with me homeys...
People such as yourself are the ones least worried and stressed.
It's the people who've never experienced a significant downturn, watching their 401(k) become a 201(k) or 151(k), their home values dropping by 25% to 50%, and credit becoming scarce (the more they depend on credit the worse) that are panicking.
However, seasoned and grizzled veterans of past downturns seem very concerned because there doesn't seem to be any reasonably clear indication as to when relief will come, nor how much worse things will get.
The people I personally respect the most are adopting the most conservative strategies. They've gone into wealth preservation mode, unwilling to risk anything of significance as they and/or people they know have bloodied hands from past attempts at trying to catch falling knives.
If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
Democratic Representative Kanjorski explains how the Federal Reserve told Congress members about a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occurred over the period of an hour or two. And it gets worse.
On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there
http://zerohedge.blogspot.com/2009/02/how-world-almost-came-to-end-at-2pm-on.html
Quote from Z.O.G.:
Karl Denninger is a lying sack of crap.
He lies about what the real problem with our money system is. The problem is that our money is created through debt. But you'll never hear this liar Denninger say anything about that in a million years.
He also lies about interest(usury). The charging of interest on money is a form of contract fraud, and is the other problem with our money system. But don't hold your breath waiting for Denninger to talk about this. He actually says that charging interest on money is a good thing!
Money is property. I have every right to loan/rent/give away my property under whatever terms i want. How the hell is interest contract fraud?
Denninger is pretty good albeit on the bear side.
Quote from Z.O.G.:
Uh, you do realize that commercial bank create money out of thin air, don't you? It's not the same thing as when you lend out money that you worked for and that already existed in circulation.
See if you can figure out why banks charging interest on money is a form of contract fraud and a scam. It's a simple trick that very few people understand.
Yes, I understand, but you should qualify your statement.
Banks, charging interest on loans above actual reserves can be equated with fraud, because of fractional banking, they are charging interest on property that doesn't exist.
Quote from Z.O.G.:
Uh, you do realize that commercial bank create money out of thin air, don't you? It's not the same thing as when you lend out money that you worked for and that already existed in circulation.
See if you can figure out why banks charging interest on money is a form of contract fraud and a scam. It's a simple trick that very few people understand.
interesting premise...
I still think the interest they charge is the premium they demand for taking on the risk of you not paying it back (plus profit). If you don't pay it back it's not like they can just print up some more and use that to offset the loan asset on their B/S (Im not talking about he fed here).