/biz/ - Business & Finance

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>>19323534
Wtf I looked this up on the FEDs website and it's real. Why is no one talking about this? This is HUGE, banks can now loan an unlimited amount of money what the actual fuck

>>19323637
this is fucking huge and no one is talking about it

>>19323637
who cares nerd lol its literally nothing who cares about economy and shit in your freetime. everything will turn out okay like every time before. doomsday incels like you should have sex

>>19323534
>>19323637
>>19323755
How would one go about profiting from this?

>>19323534
we should start a bank

>>19323843
>>19323868
It's easy.

THIS IS HUGE AND NO ONE IS TALKING ABOUT IT AAAAAAAAAAAAAAAAAAAA

the entire world economy is one huge meme
numbers mean nothing to these ((people))

I guess another Reserve will have to takes it's place

>>19323868
i'll mop up the shit and semen every day

>if people knew money is fake we’d become a nazi empire overnight!
Umm, no sweetie. NPCs are literally BEGGING for fake money (credit) to buy their consoomer trinkets.

How does that even make any fucking sense? Why not just loan to whomever the fuck, with zero regard to whether or not they can pay you back? You're losing nothing, gaining everything.
Are the rest of the loan laws that strict now, then? That you can't loan unless you know what their 3 sizes are?

>>19323843
>open a bank
>lend infinite money to your close family
>ask them to give some of freshly borrowed money to you
>profit

>>19323534
"Currency backed by nothing"
I'm tired of dumb people who don't get fiat money

On the other hand the 0% reserve thing is truly dumb and not good unless it's a short term measure

>>19324037
>unless it's a short term measure
i suspect it's here to stay

>>19324037
>unless it's a short term measure
Like lowered interest rates and QE

>>19323637
No they can't loan unlimited money, it means they can loan all of their money. Reserve ratio of 10% means if you have $100 you can lend $90.

Hope everyone is ready to get in line for bread

>>19324211
what's to stop bank runs from happening?

>>19324237
withdrawal limits
should have read the fine goyim

>>19324237
withdrawal limits
should have read the fine print goyim

>>19323534
So so soooooo fucked pal. Imagine longing the west right now.

>>19323534

They didn't abolish fractional reserve banking. They just set the fraction to 0. Stupid happening tards

>>19324211
So what happens when banks start making loans to other banks with money they loaned from yet another bank? I think you need to lurk more

>>19324028

You're fucking retarded. How does this in any way imply that banks lose nothing when loans aren't paid back??

>>19324272

Please explain what you think happens and how it will lead to unlimited loans?

>>19324020
This is the pill all the truth tards habe yet to swallow. Sheepishness is bred into most normies.

>>19323534
>what fucking clownworld bullshit is this?
this is the final form of fiat. in a debt based economy and financial system any reserve is just going full retard.

>>19324037
There is no such thing as short term with this people, once they stick another inch that's an inch that will stay there forever

>>19324269
if the fractional reserve is "0" do you even have a reserve?

>>19323534
Now there’s no limit to the fraud that is going to occur. All you need is one corrupted bank and it will create infinite money for whatever purpose. I’m sure this will end well.

>>19324318
0 is not a fraction by any mathematical definition

>>19324211
Doesn’t a reserve ratio of 10% mean they only need to have 10% of what they can lend in reserve? i.e. if they have $100 in reserve they can lend $1000? Because that’s exactly how fractional reserve banking works. Now they’re saying zero, which means there is no minimum % they need to hold in order to lend out. In other words they can effectively lend unlimited amounts.

>>19324350

0/100 is absolutely a fraction you retard.

>>19324211
No, it means they must have $10 to lend $100. Now they have to have $0 to lend $100.
Basically any money you have in the bank is not there anymore. Even a tiny bank run will cause the whole thing to pop.

>>19324353
Yes it at least was a backstop that if they had no lending standards whatsoever they would eventually have to stop because of losses. Now they can just keep lending to infinity apparently.

>>19324319
This is 2008 in the making all over again, I expect to see niggers with more than sketchy if any credit getting mortgages on 4 houses they can't possibly pay, illegals and schizoids getting all sorts of backwards loans and the printing machine going super sayan blue God mode in to full brrrrr

This is the most retarded way to jump start the economy but whatever the banksters want they get

>>19324408
That's good. I am planning to take as much credit as possible, put it all in Monero, then declare bankruptcy. I own nothing and my savings are all in physical metals any crypto.

>>19323637
I made a bunch of threads on here 2 months ago when it came out. Turns out a bunch of countries have been this way for a while though, which i didn't know. Canada being one of them.

>>19324408
>2008 in the making again
if they were doing 08 again then why did the treasury eat the fed and trump takes control over the esf mechanism that vacuumed out all that money from us into eur banks in 08

Does this mean I can get a startup business loan very easily now?

>>19324429
That’s dumb mode.
Smart mode is creating 1000 fake bank accounts and have them all buy Monero, without it tracing back to you.

>>19323755
Didnt they do this in 2008

>>19324480
You can't open fake bank accounts, brainlet.

>>19324280
If I have $0 and the ability to create $100 out of thin air and loan it to you, and then you don't pay it back, what exactly have I lost?

>>19324499
checked and true
it's been fake money before, but now they're not even keeping up the charade

>>19323637
This has been public for over a month you simp. Its the reason I took out a credit card and maxxed it out on PMs. The US financial system is completely fucked, and the USD is on its way to being worthless.

>>19324498
Get homeless people to do it. I’m sure the standards will drop with this new rule.

>>19324211
RESERVE RATIO IS ZERO. seriously look it up. The reserve ratio is now zero.

>>19324539
>USD
differentiate between USD and FRN....sooner or later one will not be associated with the other...imo what is happening is that team trump is warring with the banksters.

>>19324455
I remember those threads. Still fucked but it seems to "work". I wonder what will happen when they lower it to -20% though... That would be like loaning with leverage right? I'd imagine that would be impossible, but if it's all just numbers on a database at this point, then why not?

>>19324588
Absolutely, I hope the rumblings of a gold and or silver backed treasury note are true. But for all intents and purposes, the "USD" as we know it is dead. My hope is that we enter hyperinflation at the end of this year and into next year, all markets collapse, and Trump uses that as a reason to end the FED, and transfer control of the money back to the treasury.

>>19324545
good luck with that LMAO. what are you a batman villain.

>>19324588
Whose trump not warring with?

>>19324499

You just went bankrupt because you now need to pay that $100 yourself and you only have $0.

>>19324657
Trump's nominee to the fed board has clearly stated that she's there to support a "gold standard" in crypto terms - she's based enough to understand that literal gold doesn't hold up to the underlying logic of a pegged currency, but that the logic itself is sound and plausible with crypto.

XRP fags going apes over it, but I imagine her recommendation to the fed will be anything but.

>>19323534

Talked about this back in CVG back in March.

How else are we going to defend our global economic hegemony if we don’t print money in times of crisis?

>>19324388
no, they can just order new money to be printed if people happen to start bank runs. The 0% reserve is simply allowing every bank to create as much money as they want

>>19324545
I can confirm it works, you have to give them a bath and new cloths though

>>19324545
What's preventing the homeless people from withdrawing your money from the fake accounts you have in their name?

>>19325137
a firm beating

>>19324353
Correct
>>19324211
>Reserve ratio of 10% means if you have $100 you can lend $90.
Other way around. That's the whole point of a down deposit.
>Here's 10% down
>Here's your 'mortgage' of ones and zeros. Give me money or I get your house. Win-win.

>>19324211
>t. doesn't understand fractional reserve banking
what happens when the denominator is zero?

Retards here don't know how modern day banks work.

THANKS GOYIM

its just a number bro
chill

this is your brain on mmt

You guys are faggots. They suspended reserve requirements for the disbursement of PPP loans. Banks were growing 10% of their loan portfolio over the span of ten days because of so much ppp demand. Obviously to disburse that money they had to suspend requirements. Fucking think for like two seconds.

FACT


If you create money and put it towards productive purposes it does not create price inflation.
If you create money and give it to consumers it does create price inflation (hurrr hyper inflation buy bitcoin/gold)
If you create money and lend it to financial speculators then you get ASSET BUBBLES

>>19325617
I like how you can see the Clinton/Bush/Obama eras so clearly

>>19323534
Maybe I'm remembering it wrong, but didn't they increase the ratio after 2008 to limit the risk of big banks going under in case of a big crash?

>>19325694
giganigga

>>19324475
This is a good reality to acknowledge. What are the implications of this?

>>19323868
You need an account with the Central Bank ( FED for Americans ) in order to open a Bank. Good luck getting one of those and then obtaining Reserves.

>>19325016
God it would really appease the meme gods if they chose chain link kek!

>>19324211
Look up money multiplier. In the most degenerate case you can end up creating infinite money in peoples checking accounts even with a penny. If someone tries to withdraw two pennies the bank will immediately become insolvent, but the important thing is it gives banks leverage.

>>19324211
No, a reserve ratio of 10%, now in the US at 0%, means you only need 10 USD to lend out 100 USD. It's fractional.

>>19323534
The Fed is trying as hard as they can to increase money velocity, but they can't. Doesn't matter how low reserve requirements are, every bank in America knows that pretty much all the consumers are tapped out. The ones that did qualify for credit were already levered up to their tits and are barely able to keep their multi-apartment-Airbnb-leases afloat even with forbearance, and the other 40m just lost their jobs.
When everything reopens and all the numbers are still shit, that will take us to stage 3 in pic related. Then they'll start making unemployment and stimmy checks permanent.

>>19324037
and income tax

>>19324211
LET ME ASK YOU A WILD QUESTION

WHAT DO YOU THINK HAPPENS WHEN A BANK RUNS OUT OF MONEY TO MAKE LOANS? SURELY THEY GET MORE FROM THE FED RIGHT?

>>19325044
what do you think would happen if everyone wanted their money at roughly the same time and they had to print out gigantic multipliers

>>19323877
if you are jewish*
ftfy

>>19325987
You’re retarded. Watch this
https://www.khanacademy.org/economics-finance-domain/macroeconomics/monetary-system-topic/macro-banking-and-the-expansion-of-the-money-supply/v/overview-of-fractional-reserve-banking

>>19325016

>>19326029
>Then they'll start making unemployment and stimmy checks permanent.
This

#YangGang

If Biden was based, he would pick Yang as his VP, not some over-the-hill, wall-smashed big tit cow from a fly-over state

>>19323637
You guys are dumb or what? It's the BoJ you have to watch for long term. If the BoJ steps in then prices will rise
The FED is just temporary impact on markets.

God I love trump so fucking much
He's literally saving the world in 4 years what presidents in 100 failed to do.
I don't give a shit what poorfags who only see short term thinks. This is the only way we must go to ensure American/freedom dominating the world from the evil enemies.

>>19324292
>Bob deposits $100 into bank
>Bank A loans $90 to Bank B
>Bank B loans $81 to Bank C
>Bank C loans $73 to Bank D
>Bank D loans $65 to Bank E
>Bank E loans $58 to Bank F
>Bank F loans $52 to Bank G
>Bank G loans $45 to Bank H
>Bank H loans $40 to Bank I
>Bank I loans $36 to Bank J
>Bank J loans $32 to Bank K
>Bank K loans $28 to Bank L
I could go on, but Bob's deposit at Bank A has already turned into $700 and I'm assume all said and done, it will turn into $900

>>19326075
they will just say "sorry folks, but we didnt expect such a huge demand, the next batch of fed monopoly money will arrive tuesday :)" or print out "I OWE U" vouchers.
Bank runs are now meaningless since a bank not owning ANY MONEY AT ALL is now expected and legal. The fed can't say "well, you clearly violated the the requirement to keep liquidity by having less than the fractional minimum in reserves, we revoke your loicense" anymore, but will happily oblige their new demand for paper representations of the currency.

>>19326029
wait where are stages 5 and 6 in that pic?

>>19324408
It's fucking stupid. This will fuck us long term as well as all this credit weighs down those with potential whilst people without potential mess it up for the rest by defaulting. Banks are going to have a very very bad time soon.

Prepare for inefficient allocation of wealth like we have never seen before. Fuck it's going to be a mess.

>>19326191
People would kill each other and loot and riot in that situation. You'd think they would just start handing out cash to prevent this.

>>19326191
>'I OWE U' vouchers on what is already essentially "I OWE U" vouchers (aka fiat)

>>19326159
Bank A can loan $900 to Bank B, thats what 10% means.
And Bank B could in turn loan $8100 to Bank C, but it was generaly illegal to base your outward loans on reserves which are only backed by inward loans

>>19326075
>what do you think would happen if everyone wanted their money at roughly the same time and they had to print out gigantic multipliers
They money is there, but it's a number on a computer screen. At any one time, a local bank (such as Chase) only holds about $300k cash in the safe, plus about $200k in the ATM.
If you had $50M in that bank, you can very easily transfer it to another bank with button click. But you can't physically withdraw $50M in cash without a lot of advanced warning to the bank, and I'm sure some paperwork.

>>19326210
Idk I didn't get the full screenshot.
From what I remember stage five was the inflation finally starting to hit as politicians printed USD so much that even with foreign demand it started losing value, I don't remember stage six.

>>19326246
no, the people will eventually get their paper, since the bank will never go bankrupt and the fed will keep printing. Also most of the money is in wired transactions, so as long as paypal and visa and whatever don't stop transfering money noone will riot.
While there will be no short term riots due to unavailability of paper representations of money the absence of fractional limit will encourage lending money to untrustworthy individuals and business decisions, which will fuel a huge bubble. Think of the degree bubble right now in the US, it is ILLEGAL for a bank to deny anyone a student loan, so any retard can indebt himself.

>>19326159
The money multiplier explanation of Banking is incorrect. Banks dont use money that way, they use a system of Debits and Credits ( which are just promises to pay ), and use Reserves to settle payments based on those. So they don't need the money in your account to make a loan, they simply create a new Deposit for the borrower.

This is how Banks actually work in full detail, although its just as nefarious as the money multiplier model.
https://sovereignmoney.site/split-circuit-reserve-banking

>>19323843
Long on niggers.

>>19326159
>>19324292
This guy actually downplayed it. Traditionally banks leverage 30x whatever you put in, so if you put 10k in you give a bank 300k to loan out. When you take that 10k out, youre taking 10k away from banks.

Now its not 30x, its infinite times. They dont need money to back up their loans and such, its all just funny money, there is no more "brrrrr" machine, printing dollar bills, its just a key stroke in a bank and 1 trillion dollars goes into the system, backed by nothing. Or 10 trillion, why not 100 gorillion. Banks can literally do that, any time they want now.

>>19326474

>>19326527
>>19324292
>>19326159
>When you take that 10k out, youre taking 10k away from banks.
taking 300k away*

>>19323637
>>19323755
People talked about it weeks ago when it actually happened, old news retard.

>>19326527
>Traditionally banks leverage 30x whatever you put in, so if you put 10k in you give a bank 300k to loan out.
Banks don't leverage money like that, Universities still teach banking like this but it's wrong. See my post above >>19326453

https://sovereignmoney.site/split-circuit-reserve-banking

Here is the Bank of England telling it straight, although they miss some important details about Bank limitations ( lack thereof ).

https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy

Positive Money video on the Money Multiplier

https://www.youtube.com/watch?v=SkAzDrrKkME

I only do this so some Banking shill doesn't dismiss your arguments in the future.

>>19326600
>>19326669
>>19326731
will look into ty anon

Anyone knows what buffer capital is, and whats its difference with reserve requirements.

>>19324370
Lol kys retard

>>19324211

And where does that money go? Into a bank. That can loan it out 100%. And where does that money go?

Do you understand infinite recursion is bad?

>>19326907
8:38
https://www.youtube.com/watch?v=FRNHdJGBATE

>>19326029
heres the part 2

>>19327335
archive link
https://archived.moe/biz/thread/19072934/

empty reserve banking
what could go wrong

>>19327335
based, ty

>Reserve Requirements
>For many years, reserve requirements played a central role in the implementation of monetary policy by creating a stable demand for reserves. In January 2019, the FOMC announced its intention to implement monetary policy in an ample reserves regime. Reserve requirements do not play a significant role in this operating framework.

>In light of the shift to an ample reserves regime, the Board has reduced reserve requirement ratios to zero percent effective on March 26, the beginning of the next reserve maintenance period. This action eliminates reserve requirements for thousands of depository institutions and will help to support lending to households and businesses.

What the fuck does ample reserves mean? Government horseshit?

>>19324211
Incorrect retard

>>19323868
>>19325851
WE'LL MAKE OUR OWN CENTRAL BANK
FUCK THE ROTHCHILDS
FUCK THE JEWS
FUCK JANNIES
BANK OF 4CHAN SOON
CURRENCY BACKED BY GOLD, SILVER, BTC AND RARE PEPES
LET'S GOOOOOOOOOOOO

>>19323534
Money is printed and digitally added without accountability. Who gives a fuck at this point.

>>19327530
apathy is a sign things are going to break down soon

>>19327335
SQQQ is readjusted daily so you can't hold it unless you've timed it perfectly and bought right before techfag stocks start dumping for several days straight. right now we're still in crab mode and SQQQ is down.

>>19324028
i think thats what trump wants. He is calling for neg rates. if this is the case then im going to go to the bank and see if i can get a loan and pull some rich dad poor dad shit

>>19327530
foreign & domestic creditors, obviously
can you imagine the look on Der Boomers face when their gay ass t bills go up in smokes?

>>19327478
Banks need Reserves for settling interbank payments. The amount of Reserves they need for this is small because interbank payments are constantly cancelling each other out over the course of a day. 10 million in payments between Bank A and Bank B will end up with a net balance of like $200,000 from Bank A to Bank B, for example. So Bank A only needs $200,000 in Reserves to settle those payments. The next day Bank B might owe $100,000 to Bank A to settle payments. You need even less than 10% to settle payments, and often a fraction of a percent, which makes Reserve requirements obselete for solvency concerns. Banks can also obtain reserves on the overnight market from other Banks or the Fed if necessary ( this is what is meant by the Fed being the lender of last resort ).

The Fed is admitting that Banks don't much in terms of Reserves relative to how much money they Loan out. The U.K. has had no Reserve requirements for many years.

>>19326669
"the households and
companies who receive the money created by new lending
may take actions that affect the stock of money — they
could quickly ‘destroy’ money by using it to repay their
existing debt, for instance." So could we theoretically collectively fuck the whole system if everyone somehow paid off their debts at the same time?

>>19327203
thank you anon, thats a good vid

>>19327741
No, Banks would just have a huge pile of Reserves to sit on while having very little liabilities. The Money that you and I use would be destroyed but it wouldnt affect the Reserves Banks have ( Central Bank Money ) which is in a separate loop that you need an account with the Fed to use. Then Banks could just give out new loans that we peasants are dependent on for new money. The way to destroy the system would be a law change where Banks cannot use an accounting trick to create new Money that ends up being FDIC insured.

>>19324477
No. Banks are now free to gamble in any way they want, but they still won't bet on you if you're not going to make them money.

>>19324211
The reserve ratio is now 0%. They can create as much money (by making loans) as they want.

>>19324370
no because 0/100 == 0/1000 == 0/1000000000000000000000000000 == 0
and 0 is not a fraction

>>19327514
do you have the gold to back your currency? no.

>>19323534
The Argentinian Central Bank is among the banks that can tap into the Fed's faucet to give USD loans to private parties.
LOL you fags don't know what's comming.
Buy rice, beans, canned tomatoes and canned tuna NOW!

>>19323534
It’s called philosophical math banking and all the cool kids are doing it

Here's the thing though, banks still need to have adequate capitalization to please the SEC's net capital requirement for broker-dealers & the Fed's own CCAR requirements.

Is this just a nothingburger?

>>19324370
no is not dumbfuck

>>19328197
Of course it is. 0% is a percent. 0/100 is the equivalent fraction retard

>>19324499
This took me a while to figure out as well. Apparently they have to account for that $100 by debiting their profits. Then they can delete that line item from their meme books.

Buy my next question is, why don't they themselves just take a fake loan for $100, use that to pay off the defaulted loan?

>>19324269
How do you have a fraction with a divide by 0?

>>19323637
>>19323755

We talked about this when it first came out. Unless you're talking about CNN and other MSM but of course they don't talk about anything relevant.

anyone trying to rationalise this shit is an MMT sperg

>>19327514
>BANK OF 4CHAN
I'd much rather give 4chan bank my money than any other

>>19328875
Address >>19328129

Money printer go brrrrr everything is fine

>>19324211
Now the series no longer converges if you can lend at 100% you fucking meme

>>19324408
>he thinks an economy is like a magic object that you fix by molesting
>he thinks the point of this is somehow to keep things running
>he doesn't realise the whole point is to render your already pathetic private holdings worthless, essentially pulling the foundation out from under your feet
Shalom

>>19324429
Why do you think regulatory walls are erected around every single possible asset

>>19324477
>"Physical" asset that allows you to flee the worthless boomer token
Doubtful

>>19325137
They're in my freezer
>>19325617
The economy died in the late 1800s

>>19326249
IOU(IOU(IOU(0)))

>>19328875
Are you saying Robert Mugabe is wrong ? Might want to rethink that

>>19324211
>>19323637
>>19323534
>>19323755
>>19323843
Retards. It's significant but for a different reason. It's not because "le infinite money" conspiracy. The point of reserve ratio requirements is that during good times, banks keep cash on hand. This means they can stay afloat and meet withdraw demands. The implication, therefore, is that we're no longer in a position to allow banks to reserve money. The fed believes that banks will need access to all of their cash to stay afloat.
People seem to believe "we might enter a depression." That's such an asinine statement. When you look at the groups that gather data and use panels to make estimates of recession, we've reached the point where they're also including the estimates of a chance of depression. The Federal Reserve is opening up banks' reserves because it's likely we're having a severe recession and potential depression and they hope to prevent banks collapsing. It's not about "clownworld" and whatever buzzworld is floating around the chans, it's about the fact that our financial system will be put to the test.

>>19323534
Doesn't none of this matter as long as people "believe" in the U.S. Dollar?

The collective belief that the U.S. Dollar has value stop any of this from mattering, doesn't it?

>>19330103
That money isn't theirs, it's the money of their customers. Yes, the customers agreed to all of this but didn't have any alternative.

>>19330103
Yeah, its about clownworld. Blaming on the thumbtack of the year that popped the latest bubble is brainlet-tier

>>19330173
If the banks implode then we have larger issues than technicalities.
>>19330237
I'm not saying it's the funnyflu that's the issue, I'm saying it's caused what is now snowballing into an immense crisis.

>>19330279
I agree with you, but to the people of this thread you're saying are retarded. Their revendications are much more ideological than technical, they simply don't want to have to give someone else full control of their wealth.

>>19330333
I understand the focus on liberty. but any currency would be beyond their control. Sometimes it's ok to give someone "power" over you, like in currency and economic situations, as those concepts inherently imply a society.

>>19323637
Starting to think corona chan is a distraction for the impending financial collapse. Everyone forgets that the FED had injected $500 billion into repos by January now well over $1 trillion. Plus the multi trillion for CARES and other relief packages. We might not get a new economic paradigm for awhile because Corona will be the 'official' cause of the collapse, and no one will blame the inherently fucked fiat/debt system.

>>19323868
You can

>>19324539
>This has been public for over a month you simp. Its the reason I took out a credit card and maxxed it out on PMs.

>>19323551
STRAP IN RIPPLE MARINES #RippleTheStandard

>>19326029
>increase money velocity

god what do they teach these retards today.

MV = PQ

You can increase V by decreasing M or by increasing PQ while holding M constant.

You cant "increase" V. Its a turnover ratio. Youre retarded.

>>19330103
>it's about the fact that our financial system will be put to the test.

We don't have a financial system. This isn't capitalism. It's just a shell game to extract wealth from the lower classes.

Our financial system has already failed because it is pure central planning from the top down.

>>19324237
they will abolish cash in eu in addition to negative interest rates. house always wins.

>>19326453
except they dont keep your newly created debt on the books...its sold again and again and again with leverage in dark derivative markets, no?

>>19324037
>it's a short term measure
Entirely not possible. Short term and central economic planning are perfectly exclusive concepts.

>>19330387
>Sometimes it's ok to give someone "power" over you, like in currency and economic situations, as those concepts inherently imply a society.
Yes but they have to be held to account. We have nearly no accountability in our modern system and this will be our downfall.

>>19325851
no you don't. they didn't make loaning money illegal retard

>>19329534
Of course it converges, it's -1/2, lrn2math

>>19330103
They are fighting deflation, thats why.
>"le infinite money" conspiracy
Its currency, and it IS infinite. Retard.

>>19331029
Realistically, who would you prefer manage the central bank. The Federal Reserve (decentralized among various regions of America and run by people that understand finance/economics) or the Presidency (constantly shifting between two parties that accomplish nothing and would gladly print money into oblivion for votes)?
Obviously the Fed needs to be accountable, but the Fed Chair regularly explains himself to Congress and you can look this up. It's just that /biz/ is the dumbest fucking finance board.

>>19327963
I bet /biz/ collectively has more in precious metals than the central banks of some 3rd world countries.

>>19331296
In a functioning capital system I expect a distributed network of bankers to own up to their mistakes, living or dying by their own decision making on reasonable scales.

It seems the central bank's only purpose is to apply one size fits all policy, to prop up things which deserve to be destroyed at global scales.
Everything they do makes the system even more fragile, at this point we need a good crash and burn and we need it quick because the longer this goes on the more extreme the problem will become, they don't allow for any of this so that we can reassess our priorities.

At this point they've done enough damage, put down the scalpel, and let the damn wound heal.

>>19323534
Good. Velocity of money is so low we are fucked. Biz is retarded and doesn’t do economics well. Thank god for the FED.

Zero reserve ratio, negative interest rates, and all the rest adds up to one thing....the elite are trying to purposely crash the dollar. They want to bring the US down to third world status. Ever notice all your new illegal alien neighbors from third world countries? This is the future. Now is the time to trade your cash for hard assets or real estate. Don't fall for the deflation meme. There will be more helicopter drops and free money soon. Position accordingly, we might have till the election.

>>19323637
Just as the prophet G. Edward Griffin foretold.

>>19331863
Wages have been stagnating for years anyway. We've had decades leading up to this.

>>19331779
If you look at the US' economy before the Fed, it was a lot worse.

>>19324589
The thing is, banks still need to have a certain amount of reserves in order to be able to operate day to day customer business, all that has happened is that there is no longer a minimum amount by law, but if they were to have none, then nobody would be able to conduct banking business. So it is up to them instead of dictated to them. It seems okay in principle, I just worry about moral hazard and the presence of the FDIC, which absolves the everyday consumer from needing to care about which bank they go with based on operational concerns like reserves. Also the potential for some kind of fictional bank to create a bunch of money. It is all pretty complicated though, of course, there are a lot of parts to the system and it's hard to understand all of the implications sometimes before things happen. I guess we will see what happens.

>>19331863
The road to serfdom eventually reaches a vast, bejeweled metropolis simply named, She-Purple, Ashtar-Tiger, Whore of Babylon

>>19330103
It's about quietly giving banks the ability to loan out infinite money in order to stimulate and support the economy without congress/senate approval, while allowing those same banks to be backed by infinitely-printed Fed money. It's basically the Fed saying "do what you need to do, we'll have your back".

Zero reserves plus implicit fed backing is going to mean banks loaning money out to everyone, basically just like the 2007/08 mortgage fiasco. It'll be fucking great for a short period of time, but when it actually collapses shit will be fucked again.