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The Fed vs Savers


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2009 Mar 22, 1:25pm   13,925 views  108 comments

by Patrick   ➕follow (55)   💰tip   ignore  

fed

I just don't get how the Fed's shameless murder of the free market for Treasury bonds influences what banks are willing to pay me in CD interest.

I understand that the government issues Treasury bonds, and then "primary dealer" banks buy them from the government at a discount from 100%, paying the government less than face value now (say 95%) in exchange for a promise to get paid back 100% of the face value later. When the Fed wants to lower interest rates, it buys those bonds from the banks, driving up the price of the bonds up closer to 100%, and therefore driving down the Treasury bond interest rate, which is the difference between the bond price (say 98% now) and 100%. The Fed creates cash out of nothing to pay for the bonds, which is disturbing.

When the bonds mature, it all cancels out: the government pays the bond holder (often the Fed) 100% of the bond face value, and the cash disappears back into the bowels of the Fed, whence it came. That part is nice.

Now can someone tell me exactly how that influences the rate banks are willing to pay me on a CD? I know I'm getting screwed here, watching my interest earnings fall so that some idiot can pay a lower interest rate on his McMansion's adjustable mortgage. The money I don't get in interest is the money that fool doesn't have to pay. I just want to know the mechanics of the connection between Treasury bonds and mortgage rates.

Patrick

#housing

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101   Patrick   2022 Jun 17, 9:38am  

https://gettr.com/comment/c15vm881fcc


@wlindemann
·
20h
Replying to @wlindemann
Yes, repeal the Federal Reserve Act of 1913. Those traitorous politicians gave our monetary sovereignty to the Central Banks - and we have been the Central Banks mercenary bitches since that time.

After two world wars and a plethora of other deadly conflicts, not one politician in Washington DC ever thought that it may be a good idea to take ourselves off of their system. The wealth of the Central Banks and the families that own them needs to be confiscated and every family member eliminated. That may sound harsh, but these people are engaged in killing 90% of the people on this planet. Its the only way humanity can survive.
Posted on 1:30 PM · Jun 16th, 2022


A rather harsh take, but maybe correct.

Dr Malone:


rwmalonemd
@rwmalonemd
·
2h
To understand the CORONAcrisis, the most important things you need to know are that:
1) The Federal Reserve bank is not part of the US Government. It is privately owned.
2) The US Government does not control the Federal Reserve Bank. The Federal Reserve Bank controls the US Government Bureaucracy AND the Uniparty politicians.

The same relationship holds for virtually all western governments and their corresponding "central banks".

Once you understand these two facts, then you can start to make sense out of what otherwise makes no sense at all from a public health point of view.

And until you fully appreciate these facts and the related implications, nothing about the CORONAcrisis will make sense.


I don't see exactly why the Fed had a motive in supporting the plandemic fraud though. Did it gain them money or power? Maybe it did, I just don't see the mechanism exactly.
102   GNL   2022 Jun 17, 11:34am  

Patrick says

https://gettr.com/comment/c15vm881fcc



@wlindemann
·
20h
Replying to @wlindemann
Yes, repeal the Federal Reserve Act of 1913. Those traitorous politicians gave our monetary sovereignty to the Central Banks - and we have been the Central Banks mercenary bitches since that time.

After two world wars and a plethora of other deadly conflicts, not one politician in Washington DC ever thought that it may be a good idea to take ourselves off of their system. The wealth of the Central Banks and the families that own them needs to be confiscated and every family member eliminated. That may sound harsh, but these people are engaged in killing 90% of the people on this planet. Its the only way humanity can survive.
Posted on 1:30 PM · Jun 16th, 2022


A rather harsh take, but maybe correct.

Dr Malone:



I would assume the Fed has relationships with the WEF and Globalist crowds. How could they not?
103   Patrick   2022 Jun 20, 9:08pm  

https://rudy.substack.com/p/anybody-see-something-really-odd


Anybody see something really odd here?
Don't gaslight me, bro.

Rudy Havenstein
12 hr ago
According to the Federal Reserve, as of 3 days ago the share of total net worth held by the top 1% plummeted.
Someone please call them out on this (unless it’s an innocent mistake, which it is not).




107   HeadSet   2022 Jul 1, 6:26am  

No, they do not think you are "Stupid," they think you are powerless.
108   🎂 1337irr   2022 Jul 1, 6:36am  

Patrick says

https://rudy.substack.com/p/-



Frankly, a lot of my wealth is in real estate at this moment. I feel I have gotten some decent real estate investment deals despite the pending crash. I have a mutual fund at my work, PGOFX, that under performs the market, I think the only reason it has funds in it is because of trust fund babies who don't know better.

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