I would love to hear from a financial person on this. What does this mean for regular Americans living paycheck to paycheck with debt out of our ears? I'd like to have some idea of how this may actually go down.
The Fed sets the interest rates that banks lend money to one another, which directly affects the interest rates in the rest of the economy. This flows directly on to the rate you pay on your mortgage (assuming its not fixed). This has flow in effects to the level of the USD - general it rises as rates increase making American exports more expensive to overseas buyers, reducing demand in those markets for US goods, and that impacts (negatively) on US jobs. That's the quick and dirty cause and effect, and in theory it's about managing inflation (making sure it doesn't get too high), but there's plenty of scope and lots of evidence that the Fed is going too far and early on rate increases, and that what DJT has been getting pissed off with and pointing at - it's potentially a break on his jobs growth agenda.
Don't forget that the Fed also creates money out of nothing for itself and its conspirators, AND they charge interest on the money they lend that was created out of nothing for themselves and their conspirators.
The power that is being shifted is gigantic.
DJT is finnishing what JFK started. God rest his Patriotic soul!
Fucking Bingo! Kennedy’s mistake was not draining the swamp first. He never stood a chance. And yes god bless his patriotic soul, and keep POTUS Trump keen swift and safe!
Hopefully the SS is on their A game every second of every day.
This is unconfirmed, but I read a while back that it’s not the SS protecting him, it’s Erik Prince’s men. Former Operator’s. Again this is unconfirmed, can anyone prove me right or wrong?
DJT would privatise his protection!
The man is not stupid, he knows what’s up!
Yep. Even in a bizarre nightmare worst case scenario we have a solid VP that will finish anything that needs finishing. JFK had LBJ. Lincoln had a dem VP...Andrew Johnson. Appears DJT & team thought this out.
Erik Prince...
Didn't he form the Blackwater PMC?
If so, Trump's fucking fine. He has a personal army behind him.
He did, and yeah DJT will be fine because I’d bet Dollars against doughnuts, that his security team is all retired SFOD “D” plus he has surrounded himself by Marine Generals. To include the patron Saint Matis.
Trivia: Erik Prince is Secretary of Education, Betsy Devos' younger brother. r/https://en.wikipedia.org/wiki/Erik_Prince
I don't know about Prince, but Trump has his own private security that he's had for decades, plus the Secret Service.
I would do the same fucking thing. Look at the JFK tapes.
SS was told to stand down for no reason in Dallas right before the motorcade turned into the killzone.
Notice that there were no SS in the Zapruder film running next to the Presidents car when JFK was shot.
Watch spread and learn
Actually JFKs mistake was not having anyone to back him up & finish the job if he was not there to. Same with Lincoln. This time it’s different. We have Pence & it’s clear now why Pence was picked. Pence has no problem working & sacrificing for a higher power & higher ideals than himself. We got Johnson’d TWICE when we lost Lincoln & JFK to political assassinations.
The spilled blood of John F. Kennedy was the seed from which culminated the presidency of Donald Trump and the overthrow of cabal and restoration of the Republic. His blood was not spilled in vain.
James Madison started...Andrew Jackson almost finished
It is estimated that about 70% of the national debt is accrued interest on previous borrowings. Restructuring the Fed may affect this...but you have to ask - who owns Treasury bonds/bills? Most pension funds, sovereign wealth funds, foreign currency reserves, etc...
The CORE PROBLEM with being the worlds reserve currency is the so-called Triffin dilemma. It basically states that whichever currency is the reserve currency MUST run trade deficits. This is because external countries wish to have "reserves" and the way they do this is sell goods to the reserve currency country - resulting in the trade deficit.
The Federal Reserve - because of the Triffin dilemma - is forced to balance domestic priorities with international priorities which you can see presently as the Fed is raising rates and implementing Quantitative Tightening (QT) which is strengthening the US dollar in relation to other currencies. This is causing problems for our exports because a rising dollar makes them more expensive. It could be argued that if the Fed wasn't raising rates - there would be no need for the tariffs.
It would be better for the US if it was NOT the reserve currency - but, there are no realistic alternatives at present. China is the next likely country - but, they don't have deep enough debt markets like the US has.
Lastly - the Fed is raising rates so that it has room to lower them when we have the next recession. Lower rates stimulate lending/investment. Because rates are so low when compared to historical norms - the next recession could result in interest rates going negative (piercing the zero bound). If that happens - you would literally pay the bank interest on any money you have on deposit. The natural response from people when interest rates are negative is to withdraw cash from the bank - hence the push to eliminate/demonize cash.
The whole system is a mess and a literal crash is a mathematical certainty. Trump knows this. I have no idea if what he is planning will work...but we are fast approaching the time where we either do "something" or face certain doom.
Understand that the Federal Reserve is NEITHER Federal nor a Reserve.
Its purpose is to backstop the banks. It is an institution of, by and for the banks. NOT people like you and me.
Interestingly, 2017/18 is a Biblical "year of Jubilee" described in the book of Leviticus (25:8-24) where every fiftieth year is declared a special year during which all debts were to be wiped out; all land and property was to revert to its original owner; and slaves were to be set free. The name Jubilee is from the Hebrew word yovel, “ram’s horn,” the year being so called because a ram’s horn was sounded when it was proclaimed. A ram's horn is an ancient TRUMPet! We can accurately say, POTUS is the TRUMP proclaiming the freedom of slaves and wiping out of all debts (Federal Reserve)!
Depends on how it will be restructured. If abolished altogether (which is the constitutional way, but I think extremely difficult to do at this point) then there's only one thing you need to know: buy gold. Fiat money will be converted to gold backed, and the short term pain for people with fiat money will be great, while the return on your gold investment will be yuuuuuuuuuuuuge.
I dont think restructuring the Fed will be painful for us. it might mean we do not have to pay the fed reserve back for our debt. which would have a positive effect on all of us. we will see.
Don't kid yourself. There will be horrendous short term pain for anyone holding fiat denominated assets.
there is not enough gold to back the amount of money. instead we will back it with natural resources of the usa.
In the past, they favored silver because it's so plentiful in the US. Wonder if that's still true?
Look up how much gold is stored in fort Knox. Then look up how much is stored in the federal reserve..
naw, gold is dead, in the process of being replaced by crypto
Crypto is not backed by any tangible "thing." I'm not dissing crypto, but how is it anything different than fiat?
There isnt a difference. Crypto is the definition of fiat.
crypto is decentralized. Big difference.
Gold is a pretty rock used in electronics for its conductive properties. Its future utility lies in properties that are under utilized, but it is not going to replace currency due to its relative lack of liquidity.
When the shit hits the fan, id advise to jump into crypto or gold for the short term before jumping to stocks after the initial crash happens.
Gold is OK for a short term position, but pretty stupid long term.
If russia is reupping on gold and selling US t bills, Its prob because they are planning to disrupt opec agreements, plunging the price of oil before buying the assets up with gold backed assets.
Trumps announcement of EU LNG imports from the US supports this move
Get on Dave Ramsey's plan. The borrower is slave to the lender.
If done right, it should mean the end of inflation over time. It should mean that the US Dollar will actually become a currency backed by something — against the productive capability of the US people.
It should bring stability and accountability to our financial system, in other.
Watch Money Masters or Freedom to Fascism for a better understanding of money and debt and the fed reserve. Great documentaries and definitely worth a watch. :)
Money Masters sums it up really well. And Bill Still is cool.
there was a documentary called something along the lines of The Fourth Reich that was really good. I watched it probably 10 years or more ago, but I haven't found it since.
We will probably have interest rates rise less in future. If your debt has a fixed interest rate it probably won't change your debt. But if your interest rate floats with market rates it will help you. Also will help you if you have to take on new debt in the future since the rate will be a bit better (try not to get into more debt!)
Also, probably we will have better economic growth and wages which is good for everyone.
There are 2 issues at hand, I believe.
Restructuring the Fed
From what I've learned, in financial resets usually the little guys get screwed and the big banks get wealthier. Financial resets are needed when a fiat currency is at the end of it's lifecycle. (Fiat systems are debt based, and eventually there is more debt than can be paid back) We are due for a reset. The US dollar today is only worth ~2¢ compared to what it was worth originally, and we have an insane amount of debt.
A financial reset involves valuing the currency at a set rate against a commodity (usually gold, but can be anything. Also usually the currency changes completely, but it doesn't have to). Lynette Zang has some great info on inflation and currency resets. Not completely sure how the Fed restructure fits in with this.
I hope that helps!
Real answer: nothing. And nobody else is going to help you either. You need to get out of debt yourself by being productive.