Closed Thread
Results 1 to 14 of 14

Thread: federal reserve

  1. #1
    MILF in training Juana!'s Avatar
    Join Date
    Sep 2003
    Location
    indy
    Posts
    3,340
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    547

    federal reserve

    sorry for the ignorance guys.. so bear with me...

    most of the countries have their money backed up by gold.... the USA does not... the federal reserve is the one that also dictates the interest rate... but at the same time is not directly under treasure department and head is not elected or confirmed but basically appointed by the pres..

    does it makes sense not backing up our currency with gold? is the federal reserve something should no exist?

  2. #2
    Just push the damn button tubaman's Avatar
    Join Date
    May 2004
    Location
    Kansas
    Posts
    914
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    392

    Re: federal reserve

    US Currency used to be backed by the gold standard. And I do believe, that even then, the Fed existed. I don't pretend to understand how the fed adjusts rates, I just know, that when it goes up, it's good for my savings accounts, and bad for my credit cards. Maybe we should abolish money, and go back to the way they used to do things, trading goods for services and such.

  3. #3
    Psychic MOD CD's Avatar
    Join Date
    Jul 2004
    Location
    Your Mom's bedroom.
    Posts
    9,017
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    2273

    Re: federal reserve

    barter system all the way! (jk)

  4. #4
    AmorMiHombre's Avatar
    Join Date
    Apr 2004
    Location
    CandyLand
    Posts
    2,491
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    429

    Re: federal reserve

    Crap! I should know because i took macroeconomics...I believe interest rates and such are dictated by Alan Greenspan (whatever his job was) and he bought and sold bonds and did what was needed to keep the system in balance. I'm almost positive you can sell your bonds back to the government.

    I could be so wrong on that but that's what i semi-remember. I'll look it up unless finley or someone else knows the answers.

  5. #5
    AmorMiHombre's Avatar
    Join Date
    Apr 2004
    Location
    CandyLand
    Posts
    2,491
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    429

    Re: federal reserve

    Ooooh yea baby! Seems i deserve much more than that fucking C i got in macroeconomics (i think it had more to do with me getting caught drawing pictures of the fat ass professor than anything else).

    Alan Greenspan is the chairman of the Board of Governors (or the Federal Reserve Board). This seven-member board, which is completely autonomous from any political party, has two roles: (1) regulating commercial banks, and (2) controlling monetary policy.

    Fed officials oversee banks by setting reserve requirements, margin requirements and credit controls. Basically, they make sure our banking system remains viable and healthy.

    This site breaks it all down so you can follow along and it's nifty. http://64.233.161.104/search?q=cache...d+states&hl=en

  6. #6
    MILF in training Juana!'s Avatar
    Join Date
    Sep 2003
    Location
    indy
    Posts
    3,340
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    547

    Re: federal reserve

    someone has to come with the stupid questions... and it looks like most of the time it is me...lol... I'm not being an smartass... this is something i do not know... it is kind of related...

    the us treasury makes money... then what? who is the initial "owner" of that money after it leaves the treasury? is it given in exchange for something? assuming they are sent to the banks... what the banks give in return?

    do not be sarcastic ... i honestly can not figure this out... and i'm on my lazy mood to go to ask jeeves..

    Juana!

  7. #7
    krkeegan
    Dumbass krkeegan's Avatar

    Re: federal reserve

    Yeah the treasury makes money and it exchanges it for other money that is pulled out of circulation.

    And in the original comment someone said that most currencies are still based on a gold standard. This is wrong there are only a handlful of countries based on a precious metal standard. The movie wizard of oz is about shifting to a silver standard

    In fact there are many countries whose standard is the us currency. This means that their currency is backed and promissed by ties to american currency.

    The federal funds rate which is the rate that you hear about as interest rates, is the rate at which the federal reserve and other banks charge each other for loans. This trickles down to the general public.

    I am sure non of this helped. But this is a topic that you could spend hours on.

  8. #8
    AmorMiHombre's Avatar
    Join Date
    Apr 2004
    Location
    CandyLand
    Posts
    2,491
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    429

    Re: federal reserve

    The design of the current dollar bill is a process of 65 complicated and distinct steps. It begins with highly skilled engravers who hand-cut portraits, lettering, and ornamentation into soft steel to make the original die masters.

    From a gov website: The Bureau prints currency on high-speed, sheet-fed rotary presses, which are capable of printing over 8,000 sheets per hour. Each sheet is forced, under extremely heavy pressure (estimated at 20 tons), into the finely recessed lines of the plate to pick up the ink. The backs of the notes are printed with green ink, allowed to dry for 24 to 48 hours. The faces are then printed with black ink and also allowed to dry.

    Examining
    Each stack of 32-subject sheets is cut in half and each side is examined for defects. If the sheet meets the examiner's inspection standards, it is then ready for numbering and processing on the Bureau's overprinting and processing equipment.

    Two guillotine cutters slice the notes into two note units (100 sheets at a time) and finally into single stacks of one-hundred notes. The units of 100 notes are banded and packaged into "bricks" containing 40 units; each "brick" contains 4,000 notes. The bricks are distributed to one of the twelve Federal Reserve Districts, which issue the notes to local banks there's the order in how it travels to us.

  9. #9
    M-O-D-E-R-A-T-O-R HIJACKER's Avatar
    Join Date
    Oct 2003
    Location
    Fairfax, VA
    Posts
    5,675
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    653

    Re: federal reserve

    The Federal Reerve no longer backs currency with gold. In fact, they didn't just back it with gold, they also backed a certain series of notes with silver. These notes were first introduced in 1878 stated as a "Silver Certificate".



    The Silver Certificate was produced as a $1, $2, $5, and $10 series. I don't know of any bill higher than that as a Silver Certificate without researching, but I do know those exist. I personally have 2 of the $1 SC's.

    There was a mild-depression in the mid-1870's that caused the public to be concerned with the "reserve note", which prompted the treasury to produce the silver certificate so that is could be redeemed for silver in the value as printed on the note.

    President MacKenkie was Minister of Public Works, 1873-1878 during which time he oversaw the completion of the Parliament Buildings in Ottawa. The Liberals uncovered and released evidence of bribery involving the Conservatives and contractors engaged in building the Pacific Railway. John A. MacDonald forced to resign in 1873 after the scandal ensued. Liberals took over and Mackenzie won the election in January, 1874. The recession in mid-1870's was blamed on the Liberals which caused Mackenzie to lose the 1878 election.

  10. #10
    MILF in training Juana!'s Avatar
    Join Date
    Sep 2003
    Location
    indy
    Posts
    3,340
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    547

    Re: federal reserve

    thanks hijacker for the nice explanation.... a curious fact... do you know that at some point in history american currency (coins mainly) were made in Mexico due to the abundance of silver?

  11. #11
    whore BigTruck's Avatar
    Join Date
    Sep 2004
    Location
    just lurking around
    Posts
    51
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    362

    Re: federal reserve

    The value of our currency and most other industrialized nations is backed by the Gross Ntional Product of that country.

    The interest rate can affect that but does not controle it

  12. #12
    Hollywood Snob
    Dumbass Hollywood Snob's Avatar

    Re: federal reserve

    Try reading the book "The Federal Reserve and Our Manipulated Dollar", by Martin Larsen, or "The Creature From Jeckyl Island". The "Fed" is not federal at all. You'll find it listed in the yellow pages, not the blue government pages. The majority of the fed bank owners are not even Americans. The result of this act of treason by the congress of 1913 & all others since, is what has allowed inflation & depression. Gold is still worth the same, in terms of buying power, but the dollar is what has declined, because it's no longer on the Gold Standard, as our constitution still requires. You can thank tricky Dick Nixon for that, back in 1972. He's the one who knuckled under to the pressure to separate them.
    Woodrow Wilson was the president who signed the Federal Reserve Act into being. On his death bed, he confessed that he had allowed what would eventually become the single greatest act to undermine the American economy. He was honored by the fed, with his face on the largest denomination bill, which is a $10,000 note, even though none has ever been printed. A "note" is a promise to pay. Since they are no longer backed by any precious metal, they are basically a promise to pay nothing. The Fed, "borrows' the notes into existence, thus creating money out of thin air. They then loan them into circulation, at an interest rate to the real government. That's what causes the national debt. The printing presses, owned by the government, (the people) were handed over to the Federal Reserve. Rothchild once stated that he cared not who made the laws of a land, but as long as he could gain control of the money system, he could soon "buy" it all anyway, with money created from nothing. Pretty slick huh? We're such stupid people to allow this gross violation from those who swear to uphold the constitution. Yes folks, lets keep voting for Republicrats, & Demicans, because we wouldn't want any real change now would we?

  13. #13
    whore prOmOx's Avatar
    Join Date
    Sep 2004
    Location
    ny
    Posts
    51
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    362

    Re: federal reserve

    The fed order the treasury to print money, either to adjust the money supply or to replace old bills. When adjusting the money supply, they receive the money and use it to by bonds from banks etc. How much they buy is determined by their goal and the multiplier. The head of the fed has his term offset from the presidents term in order to make sure that the incoming president has no real power to change their makeup as he pleases. Only congress has any power over the fed. They also have no say in government policy but act against it as their means of controlling interest rates etc.

    The concept of backing up money with gold is actually spans back to when gold was used as currency. However carrying gold around was no easy task and safe houses opened, where you could store your gold and in return they would write out an IOU to you. Eventually people decided instead of going and withdrawing the gold everytime to pay for things that they would rather just give this IOU note instead and it was accepted as the recipient was assured that he could collect the gold from the safehouse anytime he wanted. And then he in turn would hand the IOU over to someone else instead of going to withdraw gold, carry it to the guy and pay him. And thats how we developed a paper money system, everyone just passed around their IOUs and safehouses started to lend money out because no one would come to cash in their IOUs. Thats when they became known as banks, and the fed regulates how much cash the bank must keep for customer withdrawals etc(required reserve ratio) etc. Gold however is not the most stable thing, as often there are sudden discoveries and gold rushes etc.

  14. #14
    whore prOmOx's Avatar
    Join Date
    Sep 2004
    Location
    ny
    Posts
    51
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Rep Power
    362

    Re: federal reserve

    bills also used to say that they entitled the holder to x gold, now they say they are legal tender for all debts. Gold prices can rise and fall sharply and if the price of gold suddenly crashed, the currency that is backed by it would be worth alot less and you would end up in a germany pre-WW2 situation where the money is worth less than the paper its printed on(literally)

Closed Thread

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Buy Twitter Followers