Topic: Fed on brink of fifth(?) round of quantitative easing - page 12. (Read 2421 times)

Oh yeah right, the FED things. They are the ones who are going to put America in jeopardy. I am really not obliged to say this because there are always certain limits to accounting and one can never settle the balance sheet if it has gone too far. With the money getting printed out of thin air, they are going one step closer to getting a jobless America and historical moments such as collapsed developed nation. Don't take it in a fun way but there are still many people who think that America is really on the right track and they are managing the world's most important reserves to stabilize. That is itself a joke on them.

In those 14 years, the pandemic 2 years were most crucial for the FED's when they started giving away COVID stimulus packages. From what reserves the money came in no one knows til the date. Where is the accounting sheet for all that money? Was it tax money or was it just printed or did the government sell any assets for that purpose?

Nothing, no data. If there is any then I am sure its cover up as usual.

Is it fair to say it's all out of thin air over 14 years between 2008 and 2022? Some of it surely is, but the economy is also growing because huge new businesses appear, creating new jobs, new demand and offer, so since the charts are for the total assets, I think at least some of that printing has something reasonable justifying it. I agree that the US is playing with fire and has been doing so for a while, but sometimes it's hard to make a better choice than printing when you really need funds to fix something now and deal with the consequences later. That being said, banks should not be bailed out when they fail.
I'm honestly not sure that Bitcoin as a sole legal tender instead of something like the USD would have a better overall effect on the well-being of the population when facing global challenges like the pandemic.

This is just the bitter truth, sir. I have imagined the world having a comfortable and satisfied financial system with just 1 or 2 banks in every country and every citizen barely paying attention to them because the use of Bitcoin is so viable and everyone is just clamoring for its adoption and less people are paying attention to banks. But I know that Practically, this is not going to be possible any time soon or later because a whole lot of people depend on banks; even the government, wanting to always be in control of almost everything, depends on banks. Some times I just imagined that if everyone in this forum thinks alike, just like "Bitcoin can fix all that", then everyone will just be bent on using Bitcoin as a legal tender. Well, it's just my opinion.

That's what I have seen on a news recently that's why the VCs from Israel did withdraw thier money a week before the collapse.
The FED will pivot so they say when they sense something is broken and well, everything seems to be broken already.

Powell must have had the worse years of his life since e the time they started this QE. Reducing inflation is not an easy task when the government had already printed Trillions for people to lie down and get stimi.

There is always a simple solution for the government because they have mechanisms that can manage almost any situation. Printing money is the only thing that saves them at the moment, and they will do it regardless of what the implications are for ordinary people. I read that many, including Powell himself, knew what was happening in SVB even 1 year ago, but they did not do anything, as if it was more convenient for them to have what is happening today.

I don't want to get into any conspiracy theories, but I think that in high politics and business, nothing happens by chance. In that case, we have to ask ourselves what is the ultimate goal of everything that has been happening in the last 4-5 years?

The peculiarity of the banking sector is that it is highly dependent on the trust of customers. Therefore, all public talking heads will convince the general public to the last that everything is fine (three days before the collapse of Silicon Valley Bank, its shares were in the status of recommended for purchase).

Another interesting feature of the current banking crisis in the US (unlike Europe and the previous crisis in 2008) is that the management of troubled banks, in principle, did not commit blunders or adventurous machinations. The devastating factor was the Fed's policy of aggressively raising rates in the fight against inflation.

Yesterday I was reading a book by the famous futurist Alvin Toffler.  He wrote that at present there are two social societies in parallel.  

The first is the industrial society (which is already gradually disappearing from the historical stage), and the second is the information society (in the process of emerging).  So we are all going through a very difficult time right now.  

The industrial society is based on centralized "factories" where goods are created (large corporations), obedient people are created (schools), money is created (banks), ideology is created (television), etc.

The information society is based on other components - individualism, new technologies, a variety of scenarios, horizontal connections and decentralization. 

The clash of the old and the new world leads to wars, economic crises, psychological breakdowns of people (in all countries) and general instability.  

And this transitional period can last quite a long time.

I'd say an economic crash is long overdue, and the longer it takes, the worse it's going to get. You can't just make economic problems go away with "brrrr", it only postpones them (while they build up in size).

There are many theories as to why this is happening...

The most popular theory is that the global causes of the 2008 crisis have not been eliminated.  As a result, the inefficiency of the global economic system only increases over time. 

At the same time, our world is arranged in such a way that questions of power are always more important than questions of the economy.  If those in power have a real threat of losing power, they will not hesitate to sacrifice the economy and the well-being of the people. 

An increase in the money supply and government bailouts of commercial banks is not a cure for the economy, but rather a powerful drug (heroin) that puts it into a state of excitement that some observers mistake for recovery. 

However, the economy, most likely, is in principle unable to develop in the conditions of modern financial, organizational and legal social institutions. 

This is a global crisis of the modern social order.

I'd say let them! If that much banks are in such a bad shape, it looks to me as if they've gotten far too comfortable. Banks don't deserve their special position: any other company would go bankrupt instead of getting a bail out.

Considering the number of banks that are in a bad shape, I'd even say there should be a minimum of 1 bank per month going bankrupt, just to cleanse the system a bit and remind them there can be consequences.

Yep.

Inflation is already taking its toll, adding to the excessive printing of dollars, which even makes it worse because the dollar value is also reduced due to the aggregate of printed money.

So possibly in the next 14 years, the printer will go more blah and people will become poorer, adding to inflation, so that $10,000 cannot even settle rent. oops 😬
 
I have a question on this though, the printed volume of dollar, was it to keep up with the population or to fight inflammation inflation there by creating more devaluation on the purchasing power of money? Because between last year and now, the population is 334 million (like you mentioned), but I looked back to 2008, and the population was just 304.1 million, which is only an increase of 8.95%. In just 14 years, the printed money has increased by 1,025% while the population has increased by only about 9%.
 

I doubt that, How can you tell?


How do you mean?



When the system is collapsed, what is the next option?


Which will push many to seek solution, and if Bitcoin is who what  they are convinced to the be their safe heaven, do you think they will not go for it?

 
Who rejects a safe heaven mahn?

 
I still doubt this, why? (rarely can you see who would want to throw away their wealth were as they have a better solution.

There are policies supposed to control this money printing, but if they're not working, what do you think will happen? I cannot see the future, though, but if this gets to a point where dollar value is reduced to almost nothing, then  many citizens, if not up to 90% will go into Bitcoin because that could be the solution then. Already, what's happening now with the printing machine is just a preamble of what will happen in the next 14 years, unless that these printed money are used to save the bank, to avoid the financial crises of 2008.

In my opinion, Bitcoin will fix it, in the sense that even if not all US citizens, but about 90%, will adopt Bitcoin, unless a solution is provided to the money printing and also if some of the 9 billion printed dollars are reversed.

I would recommend everyone check out a really good documentary just put up on Youtube a few days ago--it's all about the Fed, all of this stimulus shit and endless money printing, and I seriously hope as many people see it as possible.

The feeling I get when I venture out into the world is that things like the inflation spike and supply chain shortages are harbingers of really, really fucking bad things to come, specifically all the consequences of the US's fiscal policy since 2009 or so.  It might have taken time for the machinery to break down, but it's becoming harder to believe that it's not ready to crack apart completely.

Not for nothing, but I'm stocking up on non-perishables with any spare money I've got.  Cat food, man.

I wonder what would happen if the Republicans in the house of representatives refuse to increase the debt ceiling this summer.
I have read that people within the Biden administration could be considering to seriously implement the 1 Trillion dollar plan to issue "debit" with the help of the Federal Reserve and go around the approval of the chamber.


https://en.wikipedia.org/wiki/Trillion-dollar_coin

It seems to me that every year that passes, it is becoming more and more difficult for the USA government and the people of that wonderful country to go back to their aim of 2% inflationary increase per year. And I do not think they would be able to maintain several years in a row with negative inflation to "fix" that has happened these last 3 years. 

Never is strong word. Even after the Fed print another $10 trillion, $50 trillion, $100 trillion? What about when inflation hits 30%, 50%, 100%+? What about a loaf of bread costs $50? This is what is happening in countries like Zimbabwe, Venezuela, Argentina, Turkey. The US is not immune to such things, especially when the Fed continues to print money with abandon. Everyone will reach a breaking point eventually when they lose faith in fiat.

FDIC insurance has $128 billion in assets. The deposits less than $250,000 that they insure total $23.7 trillion. This means that 99.5% of deposits are uncovered. What happens when a couple more banks go under and the FDIC can't cover them? You guessed it! Money printer goes brrrrr!

Next on the list of banks needing a bailout:

90% is really huge; I would have said 70–85%. About 20% of the adult citizens of the U.S. have already adopted the technology, holding little pieces of the total in circulation. They might not completely run to Bitcoin; they just want to be on both sides. It's not easy to leave one's currency and fully depend on Bitcoin. It's not as if we don't know the truth sometimes, but we allow ignorance to blindfold us.


I came across this image yesterday. It's funny, but it's also becoming true. 

I don't think it's easy for people to adopt BTC when they get the money printed first, and then the government gives them assurance that their loans (whether student loans, home loans, etc.) will be completely waived/written off. The government and FED are collectively trying their best to keep the people of USA diverted (here: engaged in all this shit) and be the slave of their fiat currency as long as they can, so that other assets don't drive them rich and the government keep ruling them for a very long time. BTC is an option but not really, till the people of USA understand its current value and how it could save them from the so-called banks that have their hard-earned money but will deny to give that back to them just because of going bankrupt. How many bailouts do you think can save the upcoming banking system layoff?

Some would say "nothing new in the West", except perhaps that this time all that money will be used to save the banks in order to prevent a repeat of the crisis that arose after 2008. As much as some are surprised that the US government stood behind all deposits in all banks as a guarantee, I wonder if they had any other choice at all? Of course, they could act selectively or not act at all, but that would certainly cause a domino effect and the collapse of dozens of US banks in the first wave, and then the spillover of the crisis to other markets.

The situation in the EU is currently stable (at least that's what they say), but the Swiss case is a clear example that even the best in business can mess up. Regardless of all the guarantees, no one should feel safe keeping their money in the bank, but most people simply don't know any better than that. Bitcoin is an alternative, but most authorities will do everything to make it an alternative for a very small number of people.

It's really easy to print new money, but when they're want to reduce the existing fiat circulation, it's really hard since it's already affect the whole economy about the current product price.

Only 3 banks were collapsed on United States and the FED have add $0.3 trillions, there's a study where they find 186 banks have potential risk going to bankrupt too [1] if we use the previous calculation, the FED will print more $18.6 trillions, this is 2 times more than the current money printing

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[1] https://www.fox10phoenix.com/news/will-more-banks-collapse-silicon-valley

Well, I have doubts that Bitcoin could fix this. More than 90% of the people in the USA would most likely never buy/adopt Bitcoin. They will keep running in the fiat rat race, even though they know that the end is going to be ugly. The US (and the global) fiat financial system has reached the point of no return, after which they simply can't stop the money printing machines. Stopping the printing machines would lead to a global depression and the collapse of the entire financial system. At the same time, it's obvious that the continuation of money printing will lead to more inflation, debts, devaluation and social inequality. Bitcoin could serve as a safe heaven, but the majority of the people would prefer to lose their fiat wealth, rather than investing in BTC.