How The Federal Reserve Quietly Bankrupted The US Pension System

[Werner]

https://www.zerohedge.com/news/2019-01-07/how-federal-reserve-quietly-bankrupted-us-pension-system#comment_stream

[jim <""@mwt.net>]

Post by Werner
https://www.zerohedge.com/news/2019-01-07/how-federal-reserve-quietly-bankrupted-us-pension-system#comment_stream

The private pension plans work in the same way that the
stock market works. Profits are made as long as their is more
investor money pouring in than there is pouring out. That is
pretty much the definition of a Ponzi scheme.

The Federal Reserve has nothing to do with the foolishness
of the markets. No matter how often the fools blame the Fed
for their own foolishness, it won't cure the stupid investors.
What the fools can't see is that the primary cause of
their foolish behavior is their ignorance of what the
Fed actually does. That makes it very easy for charlatans like
Zerohedge to publish superstition as fact and millions of stupid
investors will act irrationally based on those superstitious
beliefs.

[Werner]

What the Fed actually does is create money from nothing and distributes it to favored interests. Savers are not a favored group. That isn’t a Ponzi scheme. Nor is it ‘investing’.

[jim <""@mwt.net>]

Post by Werner

Post by jim <""@mwt.net>
The Federal Reserve has nothing to do with the foolishness
of the markets. No matter how often the fools blame the Fed
for their own foolishness, it won't cure the stupid investors.
What the fools can't see is that the primary cause of
their foolish behavior is their ignorance of what the
Fed actually does. That makes it very easy for charlatans like
Zerohedge to publish superstition as fact and millions of stupid
investors will act irrationally based on those superstitious
beliefs.

What the Fed actually does is create money from nothing and
distributes it to favored interests. Savers are not a favored group.

Ha Ha Ha ask for a fool to step forward and show
us foolishness and Werner complies

The Fed has not distributed one penny to any favored interests
Your story is just bullshit from Zerohedge. Gullible fools eat up
that story because they can't face the reality of their own
stupidity

The Fed purchases govt securities at market value.
That means somebody buys a govt security for say $1000
and then sells it to the Fed for $1000. Can you explain how
that distributes money to favored interests? The somebody
who gets the money is no better or worse off than they were

Of course you can't explain how that "distributes it to favored
interests" story works because its pure bullshit that you
gobbled up without any thought

[Werner]

How does the Fed buy bonds?

[jim <""@mwt.net>]

Post by Werner
How does the Fed buy bonds?

That was your homework assignment. But
you are too stupid and lazy to do your
own research

The Fed buys on the open market. That means some
private sector entity buys a govt security for
say $1000 and then sells it to the Fed for $1000.

The result is that the banking system now has
$1000 more in deposits. That's a burden to the
banking system. Deposits are a liability to
banks, Deposits are what banks owe to people
and businesses and banks pay interest on that
liability.

There is no evidence for your "the fed distributes
money to favored interests" story, Its just a
bullshit story that is designed to hide the
real story which is that it was stupid and
reckless private investors that created the
enormous housing bubble that led to the 2008
financial crises.

[Werner]

Dummy. How does the Fed buy the bonds? Does it get a job and work to earn $1000? As for ‘favorite interests’, does the Fed buy bonds from anybody and everybody? If i issued bonds would the Fed buy them?

[jim <""@mwt.net>]

Dummy. How does the Fed buy the bonds? Does it get a job and work to earn > $1000?

So what? The stupid private investors who gamble
on Wall Street and destroyed the economy don't
earn money by doing any useful work either.

We are talking about your lying story. There was nothing
about work in your original story. Whenever you get caught
in your lies you always start babbling nonsense.

As for ‘favorite interests’, does the Fed buy bonds
from anybody and everybody?
If i issued bonds would the Fed buy them?

If they bought worthless bonds you issued that would
indeed be inappropriate favoritism which they don't do .

But thanks for admitting your story was all a lie.

[nickname unavailable]

Post by Werner
Dummy. How does the Fed buy the bonds? Does it get a job and work to earn $1000? As for ‘favorite interests’, does the Fed buy bonds from anybody and everybody? If i issued bonds would the Fed buy them?

the fed can buy their own bonds because they are the issuer of our currency. how do you think they came up with the money to bail out the libertarians running wall street.

[Werner]

Post by nickname unavailable

Post by Werner
Dummy. How does the Fed buy the bonds? Does it get a job and work to earn $1000? As for ‘favorite interests’, does the Fed buy bonds from anybody and everybody? If i issued bonds would the Fed buy them?

the fed can buy their own bonds because they are the issuer of our currency. how do you think they came up with the money to bail out the libertarians running wall street.

You just answered Jim. The Fed creates money from nothing and Wall Street is a favored interest. I don't think Jim will grasp that, however.

Libertarians are not running anything in government. Libertarians don't get elected.
http://www.endit.info/Reality.shtml

You should begin to reassess your old assumptions. Question your beliefs.

[jim <""@mwt.net>]

Post by Werner

Post by nickname unavailable

Post by Werner
Dummy. How does the Fed buy the bonds? Does it get a job and work to earn $1000? As for ‘favorite interests’, does the Fed buy bonds from anybody and everybody? If i issued bonds would the Fed buy them?

the fed can buy their own bonds because they are the issuer of our currency. how do you think they came up with the money to bail out the libertarians running wall street.

You just answered Jim. The Fed creates money from nothing and Wall
Street is a favored interest.

There is no evidence for that. That's just the same lie that
you never even try to support with evidence.

Money was loaned to Wall Street financial institutions at extremely
high interest rates. The interest charged benefited the taxpayers

It is true that the govt made a huge amount of money
on the bailout, but it was all made through interest, dividends,
fines and
forfeitures. It cost wall Street firms 100's of billions of
dollars that the
US Treasury earned. The bailout was the opposite of your
"creating money and giving it to favored interest" story.

It was not Wall Street that provided the money for all the reckless
lending. It was stupid savers that were actively looking to fund
mortgages to people who had bad credit scores, who put no money
down and were not required to document any income or assets and
who had to borrow more money each month to keep up with the
payments. The demand for those loans by stupid savers was
enormous and it was only when Wall Street could no longer
find more of this type of borrower to meet the huge demand from
stupid savers that the whole thing blew up.

If you want to know why interest rates went to zero it was
because all the reckless foolish investors were crushed in
the financial crash. Nobody bailed them out . The
investors that remained all piled into the safest possible
assets and drove interest rates into the ground for 10 years.

[nickname unavailable]

Post by Werner
What the Fed actually does is create money from nothing and distributes it to favored interests. Savers are not a favored group. That isn’t a Ponzi scheme. Nor is it ‘investing’.

talk about stupid, the federal reserve must like all americans who even have a few cents then.

the stock market is a ponzi scheme, and its become really shaky again as it becomes apparent, that any corporation stuupid enough to partner up with the chinese communist party, faces a blizzard of knockoffs in asia, and coming to america now in full force.

lenin is smiling from his grave, he understood libertarian economics, he knew you wold hang yourselves, because hanging yourself is a form of mental illness.