why is the Federal reserve continuing its soft QE program if the economy is so strong?

[Asiantravel]

So, everything is going great in the US economy, uh?!

why is the Federal reserve continuing its soft QE program if the economy is so strong?

Maybe even more important was the statement in the final paragraph, which was a real ‘aha-erlebnis’. Despite increasing the interest rate, pretending the situation of the American economy is much better now, the Federal Reserve said it would continue to reinvest the proceeds of the maturing agency debt and mortgage backed securities as well as the income on existing securities into new ones. This basically is a continuous ‘soft’ Quantitative Easing, something we already pointed out in a previous column, published in October 2014.

http://secularinvestor.com/federal-reserve-continuing-soft-qe-program-economy-strong/12857/

[Utley]

Because they are doing what they believe is best for the U.S. economy.

[BuaBS]

When interest rates rise , they have to pay more interest on all their loans , with what money ? Why with more QE money of course !

Less and less people want to buy US bonds : so US buys them with ... QE money.

The 1 % does not have enough money , the entitlement mass needs their checks....more QE please.

Stock markets need supporting because they are completely outawack....

So many reasons for continuing QE and covert money "creation".

[maewang99]

you shouldn't be looking at QE the same way as rates, probably. during the hamburger crisis no one was borrowing and as Ray Dalio points out in his 'How The Economic Machine Works', credit is money and a huge amount of it disappeared plus the banks needed bucking up. that credit creation, bank created money, has not hardly recovered at all that much compared to where we were before. as they are not doing additional QE, but re-investing according to your snipet above, it makes sense? but the rate increase is indicated because the USA has lifted off from the bottom in things such as unemployment, notwithstanding that some folks will then point out the participation rate is very low.... but the US is growing as a good clip, 2% is the new normal for a long time still coming maybe forever, no one will even try to guess that one. also, they don't say it of course but they also need to bring rates up so that if, as it always does at some point, the US economy seriously dipped down, they can then lower rates... if they were still at zero they would be stuck with QE only which would not be cool at all. they needed to begin to raise rates, which is not the same as QE. I think this is about right.

and actually, this is all much more nuanced than we can hope to know or follow 100% fully ... unless you are a mid-westerner or Donald Trump in which case the whole thing is very very simple and "stupid" and evil etc. etc.

Edited December 22, 2015 by maewang99

[elgordo38]

When interest rates rise , they have to pay more interest on all their loans , with what money ? Why with more QE money of course !

Less and less people want to buy US bonds : so US buys them with ... QE money.

The 1 % does not have enough money , the entitlement mass needs their checks....more QE please.

Stock markets need supporting because they are completely outawack....

So many reasons for continuing QE and covert money "creation".

I think you have explained the Federal Reserve's financial "daisy chain" to everyone's satisfaction. They keep the market flooded with paper money and goose the stock market(with a little help from their friends on Wall Street) and with control over the bullion banks they hammer gold each and every time it tries to make a run. Like the stock market and economy the gold market is flooded with "paper" gold. The Comex has only 1 physical ounce for ever 325 ounces of "paper" gold. Its their "gold is a relic of the past" education program. China and Russia and the customers of the mint know better they are buying hand over fist of the yellow metal.

[Asiantravel]

Because they are doing what they believe is best for the U.S. economy.

doing what they believe is best for the owners of the Federal reserve is more like it

[Utley]

Because they are doing what they believe is best for the U.S. economy.

doing what they believe is best for the owners of the Federal reserve is more like it

Now you are just being silly.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

[Asiantravel]

Because they are doing what they believe is best for the U.S. economy.

doing what they believe is best for the owners of the Federal reserve is more like it

Now you are just being silly.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

you call me silly and yet at the same time the so-called evidence you provide to support your argument that it is a fine upstanding body is its own website

I would like to suggest you carry out some research other than accepting what they would like you to believe

“Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.” –

The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s

http://www.globalresearch.ca/who-owns-the-federal-reserve/10489

[Utley]

Are you positive that this is the guy who you want to hang your hat on?

Per Wikipedia:

"Louis McFadden was a "vociferous foe of the Federal Reserve", which he claimed was created and operated by Jewish banking interests who conspired to economically control the United States. On June 10, 1932, McFadden made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the Great Depression. McFadden also claimed that Wall Street bankers funded the Bolshevik Revolution through the Federal Reserve banks and the European central banks with which it cooperated."

"McFadden moved to impeach President Herbert Hoover in 1932, and he also introduced a resolution bringing conspiracy charges against the Board of Governors of the Federal Reserve. The impeachment resolution was defeated by a vote of 361 to 8; it was seen as a big vote of confidence to President Hoover from the House. According to Time magazine McFadden was “denounced and condemned by all Republicans for his ‘contemptible gesture’." The Central Press Association reported that he was "virtually read out of his party ... [had] his committee posts ... taken away from him…was ostracized by Republicans [and] called crazy ...". Sen. David A. Reed (R-PA) said “We intend to act to all practical purposes as though McFadden had died”."

[Asiantravel]

Are you positive that this is the guy who you want to hang your hat on?

Per Wikipedia:

"Louis McFadden was a "vociferous foe of the Federal Reserve", which he claimed was created and operated by Jewish banking interests who conspired to economically control the United States. On June 10, 1932, McFadden made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the Great Depression. McFadden also claimed that Wall Street bankers funded the Bolshevik Revolution through the Federal Reserve banks and the European central banks with which it cooperated."

"McFadden moved to impeach President Herbert Hoover in 1932, and he also introduced a resolution bringing conspiracy charges against the Board of Governors of the Federal Reserve. The impeachment resolution was defeated by a vote of 361 to 8; it was seen as a big vote of confidence to President Hoover from the House. According to Time magazine McFadden was “denounced and condemned by all Republicans for his ‘contemptible gesture’." The Central Press Association reported that he was "virtually read out of his party ... [had] his committee posts ... taken away from him…was ostracized by Republicans [and] called crazy ...". Sen. David A. Reed (R-PA) said “We intend to act to all practical purposes as though McFadden had died”."

who said anything about hanging one's hat on any one person? There are hundreds of references that tell the real truth about this organisation (versus your one source!)

And what are you going to say about Ron Paul who was head of the house financial services committee and whose job it was to actually oversee the activities of this corrupt institution

item 10 on the attached list

10 Things That Every American Should Know About The Federal Reserve

http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve

Edited December 23, 2015 by Asiantravel

[Utley]

Are you positive that this is the guy who you want to hang your hat on?

Per Wikipedia:

"Louis McFadden was a "vociferous foe of the Federal Reserve", which he claimed was created and operated by Jewish banking interests who conspired to economically control the United States. On June 10, 1932, McFadden made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the Great Depression. McFadden also claimed that Wall Street bankers funded the Bolshevik Revolution through the Federal Reserve banks and the European central banks with which it cooperated."

"McFadden moved to impeach President Herbert Hoover in 1932, and he also introduced a resolution bringing conspiracy charges against the Board of Governors of the Federal Reserve. The impeachment resolution was defeated by a vote of 361 to 8; it was seen as a big vote of confidence to President Hoover from the House. According to Time magazine McFadden was “denounced and condemned by all Republicans for his ‘contemptible gesture’." The Central Press Association reported that he was "virtually read out of his party ... [had] his committee posts ... taken away from him…was ostracized by Republicans [and] called crazy ...". Sen. David A. Reed (R-PA) said “We intend to act to all practical purposes as though McFadden had died”."

who said anything about hanging one's hat on any one person? There are hundreds of references that tell the real truth about this organisation (versus your one source!)

And what are you going to say about Ron Paul who was head of the house financial services committee and whose job it was to actually oversee the activities of this corrupt institution

item 10 on the attached list

10 Things That Every American Should Know About The Federal Reserve

http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve

You are the one who referenced that clown, not me. You really should stop using right wing blogs as your sources; it makes you look silly.

[Asiantravel]

Are you positive that this is the guy who you want to hang your hat on?

Per Wikipedia:

"Louis McFadden was a "vociferous foe of the Federal Reserve", which he claimed was created and operated by Jewish banking interests who conspired to economically control the United States. On June 10, 1932, McFadden made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the Great Depression. McFadden also claimed that Wall Street bankers funded the Bolshevik Revolution through the Federal Reserve banks and the European central banks with which it cooperated."

"McFadden moved to impeach President Herbert Hoover in 1932, and he also introduced a resolution bringing conspiracy charges against the Board of Governors of the Federal Reserve. The impeachment resolution was defeated by a vote of 361 to 8; it was seen as a big vote of confidence to President Hoover from the House. According to Time magazine McFadden was “denounced and condemned by all Republicans for his ‘contemptible gesture’." The Central Press Association reported that he was "virtually read out of his party ... [had] his committee posts ... taken away from him…was ostracized by Republicans [and] called crazy ...". Sen. David A. Reed (R-PA) said “We intend to act to all practical purposes as though McFadden had died”."

who said anything about hanging one's hat on any one person? There are hundreds of references that tell the real truth about this organisation (versus your one source!)

And what are you going to say about Ron Paul who was head of the house financial services committee and whose job it was to actually oversee the activities of this corrupt institution

item 10 on the attached list

10 Things That Every American Should Know About The Federal Reserve

http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve

You are the one who referenced that clown, not me. You really should stop using right wing blogs as your sources; it makes you look silly.

oh no those that are silly like you who desperately try to cover up the truth but even if Americans still haven't caught on about this corrupt institution-the rest of the world is certainly knows the truth particularly China and Russia

[Utley]

Are you positive that this is the guy who you want to hang your hat on?

Per Wikipedia:

"Louis McFadden was a "vociferous foe of the Federal Reserve", which he claimed was created and operated by Jewish banking interests who conspired to economically control the United States. On June 10, 1932, McFadden made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the Great Depression. McFadden also claimed that Wall Street bankers funded the Bolshevik Revolution through the Federal Reserve banks and the European central banks with which it cooperated."

"McFadden moved to impeach President Herbert Hoover in 1932, and he also introduced a resolution bringing conspiracy charges against the Board of Governors of the Federal Reserve. The impeachment resolution was defeated by a vote of 361 to 8; it was seen as a big vote of confidence to President Hoover from the House. According to Time magazine McFadden was “denounced and condemned by all Republicans for his ‘contemptible gesture’." The Central Press Association reported that he was "virtually read out of his party ... [had] his committee posts ... taken away from him…was ostracized by Republicans [and] called crazy ...". Sen. David A. Reed (R-PA) said “We intend to act to all practical purposes as though McFadden had died”."

who said anything about hanging one's hat on any one person? There are hundreds of references that tell the real truth about this organisation (versus your one source!)

And what are you going to say about Ron Paul who was head of the house financial services committee and whose job it was to actually oversee the activities of this corrupt institution

item 10 on the attached list

10 Things That Every American Should Know About The Federal Reserve

http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve

You are the one who referenced that clown, not me. You really should stop using right wing blogs as your sources; it makes you look silly.

oh no those that are silly like you who desperately try to cover up the truth but even if Americans still haven't caught on about this corrupt institution-the rest of the world is certainly knows the truth particularly China and Russia

As long as Russia and China know the truth then I can sleep soundly tonight; thank you for that information. And all this time I thought you were a troll - I certainly was wrong.

[losworld]

Because they are doing what they believe is best for the U.S. economy.

Roflmao... you can't be this naive? Audit the fed and you will be shocked.

[Asiantravel]

Because they are doing what they believe is best for the U.S. economy.

Roflmao... you can't be this naive? Audit the fed and you will be shocked.

it beggars belief doesn't it?

Anyway let's see what January brings

Rand Paul Moves One Step Closer to Auditing the Fed

The Senate will vote on Sen. Rand Paul’s legislation to audit the Federal Reserve when Congress returns from recess in January.

The Federal Reserve Transparency Act of 2015 would expand congressional oversight of the nation’s central bank and give the Government Accountability Office the authority to review the Fed’s monetary policy decisions.

http://dailysignal.com/2015/12/21/rand-paul-moves-one-step-closer-to-auditing-the-fed/

“The Fed operating under a cloak of secrecy has gone on for far too long,” Paul said in a statement. “The American people have a right to know exactly how Washington is spending their money. The time to act is now.”

Edited December 24, 2015 by Asiantravel

[midas]

Because they are doing what they believe is best for the U.S. economy.

doing what they believe is best for the owners of the Federal reserve is more like it

Now you are just being silly.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

I'm not an American but I have never understood the rationale or reasons why politicians are unable to at least initiate an independent audit of the Federal reserve system? And why it has to be shrouded in secrecy.

As you seem to be a staunch defender of them could you clarify this?

[Utley]

Because they are doing what they believe is best for the U.S. economy.

doing what they believe is best for the owners of the Federal reserve is more like it

Now you are just being silly.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

I'm not an American but I have never understood the rationale or reasons why politicians are unable to at least initiate an independent audit of the Federal reserve system? And why it has to be shrouded in secrecy.

As you seem to be a staunch defender of them could you clarify this?

This article by Alex J. Pollock of the WSJ makes a lot of sense.

"The calls in Washington to “audit” the Federal Reserve are not for a narrow, bean-counting review of the institution’s financial statements. The audit’s goal is more fundamental: to assure that the checks and balances in a democratic government also apply to central bankers. It means figuring out how our elected representatives can effectively oversee unelected monetary experts.”

The quandary here is that politicians cannot be trusted nor can unelected monetary experts. I don't have a good answer for that but I do know that believing in "conspiracy" theories is not going to get us anywhere.

[Utley]

Because they are doing what they believe is best for the U.S. economy.

Roflmao... you can't be this naive? Audit the fed and you will be shocked.

it beggars belief doesn't it?

Anyway let's see what January brings

Rand Paul Moves One Step Closer to Auditing the Fed

The Senate will vote on Sen. Rand Paul’s legislation to audit the Federal Reserve when Congress returns from recess in January.

The Federal Reserve Transparency Act of 2015 would expand congressional oversight of the nation’s central bank and give the Government Accountability Office the authority to review the Fed’s monetary policy decisions.

http://dailysignal.com/2015/12/21/rand-paul-moves-one-step-closer-to-auditing-the-fed/

“The Fed operating under a cloak of secrecy has gone on for far too long,” Paul said in a statement. “The American people have a right to know exactly how Washington is spending their money. The time to act is now.”

See my response above. However Randall Paul has no room to talk about keeping Washington spending a secret from the American taxpayers. People in glass houses shouldn't throw stones.

Edited December 24, 2015 by Utley

[midas]

doing what they believe is best for the owners of the Federal reserve is more like it

Now you are just being silly.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

I'm not an American but I have never understood the rationale or reasons why politicians are unable to at least initiate an independent audit of the Federal reserve system? And why it has to be shrouded in secrecy.

As you seem to be a staunch defender of them could you clarify this?

This article by Alex J. Pollock of the WSJ makes a lot of sense.

"The calls in Washington to “audit” the Federal Reserve are not for a narrow, bean-counting review of the institution’s financial statements. The audit’s goal is more fundamental: to assure that the checks and balances in a democratic government also apply to central bankers. It means figuring out how our elected representatives can effectively oversee unelected monetary experts.”

The quandary here is that politicians cannot be trusted nor can unelected monetary experts. I don't have a good answer for that but I do know that believing in "conspiracy" theories is not going to get us anywhere.

Well you haven’t really answered my question very well and and yet you immediately raise the subject of conspiracy theories?

I can certainly understand why there are so many sceptics out there.Good Lord what on earth is wrong with people even asking these types of questions and if they don’t get a satisfactory answer in this day and age surely they should keep pushing for one?

From what I have read the United States Congress created the Federal reserve and yet it didn’t even have the constitutional authority to do so? If you disagree with that please tell me why.

And what do you mean by the quandary is that politicians cannot be trusted? Trusted to do what? I simply cannot understand how it can possibly be healthy or indeed how it can be in the best interests of the American people for their elected representatives to be denied totally free access to such a secretive institution?

Edited December 24, 2015 by midas

[Asiantravel]

What Fresh Horror Awaits The Economy After Fed Rate Hike?

http://alt-market.com/articles/2769-what-fresh-horror-awaits-the-economy-after-fed-rate-hike

[Utley]

This article by Alex J. Pollock of the WSJ makes a lot of sense.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

____________________________________________________________________________________________________________________________________________________________________________________

I'm not an American but I have never understood the rationale or reasons why politicians are unable to at least initiate an independent audit of the Federal reserve system? And why it has to be shrouded in secrecy.

As you seem to be a staunch defender of them could you clarify this?

"The calls in Washington to “audit” the Federal Reserve are not for a narrow, bean-counting review of the institution’s financial statements. The audit’s goal is more fundamental: to assure that the checks and balances in a democratic government also apply to central bankers. It means figuring out how our elected representatives can effectively oversee unelected monetary experts.”

The quandary here is that politicians cannot be trusted nor can unelected monetary experts. I don't have a good answer for that but I do know that believing in "conspiracy" theories is not going to get us anywhere.

Well you haven’t really answered my question very well and and yet you immediately raise the subject of conspiracy theories?

I can certainly understand why there are so many sceptics out there.Good Lord what on earth is wrong with people even asking these types of questions and if they don’t get a satisfactory answer in this day and age surely they should keep pushing for one?

From what I have read the United States Congress created the Federal reserve and yet it didn’t even have the constitutional authority to do so? If you disagree with that please tell me why.

And what do you mean by the quandary is that politicians cannot be trusted? Trusted to do what? I simply cannot understand how it can possibly be healthy or indeed how it can be in the best interests of the American people for their elected representatives to be denied totally free access to such a secretive institution?

The reference to "conspiracy theories" was meant for the previous poster who was quoting right-wing blog sites and their conspiracy theories as the source of his information.

To get a better understanding of the Federal Reserve System, read the two references I quoted previously and that should give you a pretty good idea of where we are.

The Constitution empowers the Legislative Body (Congress) to pass laws and control spending. Under that authority, Congress created the Fed.

In my opinion as well as many others, politicians have their first allegiance to themselves and so getting re-elected is their number one priority. That is what I mean when I said that they cannot be trusted; most of them have hidden agendas.

The Fed is not a "secretive" institution; Congress has oversight over them. The WSJ article is suggesting that Congress needs more oversight but by a committee dedicated solely to the Fed so the oversight is more focused.

The Fed is tight lipped about their intentions because their actions have a tremendous impact on the U.S. and well as the world economy. If they were not so tight lipped about their intentions, wild speculation could very well occur having undesirable financial consequences. It is in everyone's best interest for the Fed to keep quiet about what they are going to do until it is time for them to act.

Edited December 24, 2015 by Utley

[Asiantravel]

The Fed Has Created A "Monster" And Just Made A "Dangerous Mistake," Stephen Roach Warns

Stephen Roach is worried that the Fed has set the world up for another financial market meltdown.

Lower for longer rates and the proliferation of unconventional monetary policy have created “a breeding ground for asset bubbles, credit bubbles, and all-too frequent crises, so the Fed is really a part of the problem of financial instability rather than trying to provide a sense of calm in an otherwise unstable world,” Roach told Bloomberg TV in an interview conducted a little over a week ago.

http://www.project-syndicate.org/commentary/perils-of-fed-gradualism-by-stephen-s--roach-2015-12

Stephen S. Roach, former Chairman of Morgan Stanley Asia and the firm's chief economist, is a senior fellow at Yale University's Jackson Institute of Global Affairs and a senior lecturer at Yale's School of Management. He is the author of Unbalanced: The Codependency of America and China.

Edited December 25, 2015 by Asiantravel

[losworld]

This article by Alex J. Pollock of the WSJ makes a lot of sense.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

____________________________________________________________________________________________________________________________________________________________________________________

I'm not an American but I have never understood the rationale or reasons why politicians are unable to at least initiate an independent audit of the Federal reserve system? And why it has to be shrouded in secrecy.

As you seem to be a staunch defender of them could you clarify this?

"The calls in Washington to “audit” the Federal Reserve are not for a narrow, bean-counting review of the institution’s financial statements. The audit’s goal is more fundamental: to assure that the checks and balances in a democratic government also apply to central bankers. It means figuring out how our elected representatives can effectively oversee unelected monetary experts.”

The quandary here is that politicians cannot be trusted nor can unelected monetary experts. I don't have a good answer for that but I do know that believing in "conspiracy" theories is not going to get us anywhere.

Well you haven’t really answered my question very well and and yet you immediately raise the subject of conspiracy theories?

I can certainly understand why there are so many sceptics out there.Good Lord what on earth is wrong with people even asking these types of questions and if they don’t get a satisfactory answer in this day and age surely they should keep pushing for one?

From what I have read the United States Congress created the Federal reserve and yet it didn’t even have the constitutional authority to do so? If you disagree with that please tell me why.

And what do you mean by the quandary is that politicians cannot be trusted? Trusted to do what? I simply cannot understand how it can possibly be healthy or indeed how it can be in the best interests of the American people for their elected representatives to be denied totally free access to such a secretive institution?

The reference to "conspiracy theories" was meant for the previous poster who was quoting right-wing blog sites and their conspiracy theories as the source of his information.

To get a better understanding of the Federal Reserve System, read the two references I quoted previously and that should give you a pretty good idea of where we are.

The Constitution empowers the Legislative Body (Congress) to pass laws and control spending. Under that authority, Congress created the Fed.

In my opinion as well as many others, politicians have their first allegiance to themselves and so getting re-elected is their number one priority. That is what I mean when I said that they cannot be trusted; most of them have hidden agendas.

The Fed is not a "secretive" institution; Congress has oversight over them. The WSJ article is suggesting that Congress needs more oversight but by a committee dedicated solely to the Fed so the oversight is more focused.

The Fed is tight lipped about their intentions because their actions have a tremendous impact on the U.S. and well as the world economy. If they were not so tight lipped about their intentions, wild speculation could very well occur having undesirable financial consequences. It is in everyone's best interest for the Fed to keep quiet about what they are going to do until it is time for them to act.

You sound fresh out of college. I day traded for years at level II and beyond and I can tell you the stock market is rigged for speculation and if you don't think the Fed leaks its intent to "friends" then you are crazy. The Fed is made up of bankers who work closely with "investors" and to think they would not act in their own greedy intent is foolish. That is why you must audit any ongoing business concern not only to monitor the health of the entity but also to look for improprieties.

[Utley]

This article by Alex J. Pollock of the WSJ makes a lot of sense.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

____________________________________________________________________________________________________________________________________________________________________________________

I'm not an American but I have never understood the rationale or reasons why politicians are unable to at least initiate an independent audit of the Federal reserve system? And why it has to be shrouded in secrecy.

As you seem to be a staunch defender of them could you clarify this?

"The calls in Washington to “audit” the Federal Reserve are not for a narrow, bean-counting review of the institution’s financial statements. The audit’s goal is more fundamental: to assure that the checks and balances in a democratic government also apply to central bankers. It means figuring out how our elected representatives can effectively oversee unelected monetary experts.”

The quandary here is that politicians cannot be trusted nor can unelected monetary experts. I don't have a good answer for that but I do know that believing in "conspiracy" theories is not going to get us anywhere.

Well you haven’t really answered my question very well and and yet you immediately raise the subject of conspiracy theories?

I can certainly understand why there are so many sceptics out there.Good Lord what on earth is wrong with people even asking these types of questions and if they don’t get a satisfactory answer in this day and age surely they should keep pushing for one?

From what I have read the United States Congress created the Federal reserve and yet it didn’t even have the constitutional authority to do so? If you disagree with that please tell me why.

And what do you mean by the quandary is that politicians cannot be trusted? Trusted to do what? I simply cannot understand how it can possibly be healthy or indeed how it can be in the best interests of the American people for their elected representatives to be denied totally free access to such a secretive institution?

The reference to "conspiracy theories" was meant for the previous poster who was quoting right-wing blog sites and their conspiracy theories as the source of his information.

To get a better understanding of the Federal Reserve System, read the two references I quoted previously and that should give you a pretty good idea of where we are.

The Constitution empowers the Legislative Body (Congress) to pass laws and control spending. Under that authority, Congress created the Fed.

In my opinion as well as many others, politicians have their first allegiance to themselves and so getting re-elected is their number one priority. That is what I mean when I said that they cannot be trusted; most of them have hidden agendas.

The Fed is not a "secretive" institution; Congress has oversight over them. The WSJ article is suggesting that Congress needs more oversight but by a committee dedicated solely to the Fed so the oversight is more focused.

The Fed is tight lipped about their intentions because their actions have a tremendous impact on the U.S. and well as the world economy. If they were not so tight lipped about their intentions, wild speculation could very well occur having undesirable financial consequences. It is in everyone's best interest for the Fed to keep quiet about what they are going to do until it is time for them to act.

You sound fresh out of college. I day traded for years at level II and beyond and I can tell you the stock market is rigged for speculation and if you don't think the Fed leaks its intent to "friends" then you are crazy. The Fed is made up of bankers who work closely with "investors" and to think they would not act in their own greedy intent is foolish. That is why you must audit any ongoing business concern not only to monitor the health of the entity but also to look for improprieties.

Electronic Trading: Level II Access

"This type of quotation system is a step up from the Level I. Level II access provides real-time access to the quotations of individual market makers registered in every Nasdaq-listed security as well as the offering or bidding lots that they are looking for. This level of access also gives the name of the market maker looking to trade the stock. It allows traders to see what market makers are showing the most interest in a stock and to identify the patterns for each market maker. Level II access is available over the internet - but at a cost. This can range in the hundreds of dollars per month depending on the company. For clients placing a large number of trades, the firm may waive the access fee because they will make up the costs on your commissions."

I can see where this kind of experience would qualify you as a go-to expert on the Federal Reserve. Did you do your trading from a computer on your kitchen table or did you go down to Starbucks to use their free WiFi?

As a day trader on NASDAQ, you must be familiar with Bernard Madoff; his firms were audited quite regularly I believe.

Edited December 26, 2015 by Utley

[hhgz]

It hasn't. The program ended October 29, 2014.

[Hornyskunk]

Do not question the Federal Reserve. The mental retardation of those in charge is beyond the comprehension of us, mere mortals.

The Fed Declares Recovery and Recession Simultaneously

Edited December 28, 2015 by Hornyskunk

[Asiantravel]

Because they are doing what they believe is best for the U.S. economy.

doing what they believe is best for the owners of the Federal reserve is more like it

Now you are just being silly.

Who owns the Federal Reserve? "The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution."

According to Professor Andrew Levin you fit into the delusional category or you are intentionally trying to promote mistruths to suit your own personal agenda.

In the Wall Street Journal no less former central bank staffer and Dartmouth College economics professor Andrew Levin, special adviser to then Fed Chairman Ben Bernanke between 2010 to 2012 told the paper the following...........

"A lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world, he said in a conference call announcing the plan. He described his proposals as "sensible, pragmatic and nonpartisan."

Why is that stunning? Because it has long been a bone of contention if only among the fringe media, that at its core the Fed is merely a private institution, beholden only to its de facto owners: not the people of the U.S. but to a small cabal of banks. Worse, the actual org chart of who owns what is not disclosed, even as the vast majority of the U.S. population remains deluded that the Fed is a publicly owned institution.

http://www.wsj.com/articles/former-fed-adviser-activists-lay-out-a-plan-for-change-at-the-fed-1460400788

Edited April 12, 2016 by Asiantravel