- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Fed Reserve President Thomas Hoenig predicted exactly what’s happening today in 2010.
Posted on 12/28/21 at 5:41 pm
Posted on 12/28/21 at 5:41 pm
Hoenig was the lone Federal Reserve President (Kansas City) to dissent on every proposal by the FOMC during the Fed’s insane foray into TARP/ZIRP/QE during the financial meltdown of 2008/2009.
Hoenig understood the repercussions of using these three monetary policies simultaneously….he knew that the first institutions to the Fed money trough (Institutional/Investment banks, too big to fail corporations, foreign countries) would benefit greatly and eventually the middle and lower class Americans would pay the bill for this massive transfer of wealth.
Hoenig retired in 2011, it’s believed he left his prestigious position with the FOMC because he wasn’t up to cleaning up the mess that was sure to come. You see, Hoenig was a respected bank inspector early in his career during the 70’s and he knew the mess of the 70’s was going to be considered quite manageable when compared to the collateral damage of unencumbered money conjuring by the Federal Reserve to bailout reckless lending practices that began in earnest in the 90’s through 2007.
To boil it down for the street level Americans. The Federal Reserve took interest rates to 0% essentially penalizing every American who held cash in interest bearing accounts so the Fed could bailout the “too big to fail” institutions who made foolish “fog a mirror” loans. Many of those loans were packaged up as MBS/CDS and they were primarily junk loans destined to never be repaid.
The well connected and a portion of the middle class shifted their cash/assets into the equities market and avoided the complete slaughter of ZIRP/QE/TARP policies but tens of millions working class Americans didn’t have that ability so their wealth, what little they possessed was devalued or wiped out.
Politico has a good read if your interested in Thomas Hoenig’s staunch conservative position against reckless Fed policy, it appears the worst is yet to come.
FOMC President Thomas Hoenig predicts the coming economic/financial meltdown
Hoenig understood the repercussions of using these three monetary policies simultaneously….he knew that the first institutions to the Fed money trough (Institutional/Investment banks, too big to fail corporations, foreign countries) would benefit greatly and eventually the middle and lower class Americans would pay the bill for this massive transfer of wealth.
Hoenig retired in 2011, it’s believed he left his prestigious position with the FOMC because he wasn’t up to cleaning up the mess that was sure to come. You see, Hoenig was a respected bank inspector early in his career during the 70’s and he knew the mess of the 70’s was going to be considered quite manageable when compared to the collateral damage of unencumbered money conjuring by the Federal Reserve to bailout reckless lending practices that began in earnest in the 90’s through 2007.
To boil it down for the street level Americans. The Federal Reserve took interest rates to 0% essentially penalizing every American who held cash in interest bearing accounts so the Fed could bailout the “too big to fail” institutions who made foolish “fog a mirror” loans. Many of those loans were packaged up as MBS/CDS and they were primarily junk loans destined to never be repaid.
The well connected and a portion of the middle class shifted their cash/assets into the equities market and avoided the complete slaughter of ZIRP/QE/TARP policies but tens of millions working class Americans didn’t have that ability so their wealth, what little they possessed was devalued or wiped out.
Politico has a good read if your interested in Thomas Hoenig’s staunch conservative position against reckless Fed policy, it appears the worst is yet to come.
FOMC President Thomas Hoenig predicts the coming economic/financial meltdown
13
Posted on 12/28/21 at 5:44 pm to Bass Tiger
Sadly you didn't need a degree in economics to understand this.
Posted on 12/28/21 at 5:49 pm to Bass Tiger
Thomas predicted the melt down of CDs
Posted on 12/28/21 at 5:49 pm to iron banks
quote:
Sadly you didn't need a degree in economics to understand this.
Absolutely not, that’s what’s so infuriating that our government/Fed and the well connected are without penalty free to screw the American people over to protect their interests.
There should never be a time where earned money is placed in a bank account/money market, 5 year CD and earn less than 3-5% but because the Fed has the ability to use ZIRP the also have the ability to flat out steal your money and the banks still get to lend your money out for a profit.
This post was edited on 12/28/21 at 5:51 pm
Posted on 12/28/21 at 5:54 pm to Bass Tiger
he's right.
now, that being said .. what is interesting about this is that the rest of the world (central banks et al) are ALL doing the exact same thing. Or worse!
so not sure how this shakes out down the line ... but one thing is for sure ... this is their playbook (QE, ZIRP) and nothing else is in the cards (like taper - not STOP - or SELL, for instance).
now, that being said .. what is interesting about this is that the rest of the world (central banks et al) are ALL doing the exact same thing. Or worse!
so not sure how this shakes out down the line ... but one thing is for sure ... this is their playbook (QE, ZIRP) and nothing else is in the cards (like taper - not STOP - or SELL, for instance).
Posted on 12/28/21 at 5:58 pm to Bass Tiger
Is none of the rise in prices due to supply and labor shortages caused by the COVID?
Posted on 12/28/21 at 5:59 pm to WildTchoupitoulas
You mean, caused by government shutdowns.
Posted on 12/28/21 at 6:04 pm to Shankopotomus
quote:
he's right.
now, that being said .. what is interesting about this is that the rest of the world (central banks et al) are ALL doing the exact same thing. Or worse!
This is why I call the Federal Reserve the leader of the Global Banking Cabal….lol!
The USD fiat monetary system is a global institution.
Posted on 12/28/21 at 6:06 pm to WildTchoupitoulas
yes
but the overall policy of never letting the markets fail and the way the central authorities address downturns is far more impactful from an overall point of view
but the overall policy of never letting the markets fail and the way the central authorities address downturns is far more impactful from an overall point of view
Posted on 12/28/21 at 6:06 pm to RogerTheShrubber
quote:How much of the current inflation is due to supply side shortages, as opposed strictly to the money supply?
You mean, caused by government shutdowns.
I'm curious to know what kind of a drop in inflation might we see when the supply gets back to pre-COVID levels - if any - if ever. The article seems to imply that it's all due to the money supply.
Posted on 12/28/21 at 6:08 pm to WildTchoupitoulas
quote:
Is none of the rise in prices due to supply and labor shortages caused by the COVID?
It’s certainly a large contributing factor but the shutdowns were probably orchestrated to benefit certain industries/corporations
Posted on 12/28/21 at 6:11 pm to Shankopotomus
quote:
but the overall policy of never letting the markets fail and the way the central authorities address downturns is far more impactful from an overall point of view
I can see this, as I've wondered when it would actually occur. It could just be that the supply issues have simply been the trigger to the inevitable inflation.
I've also wondered what the Fed's response to inflation will do to the bond market - and the national debt, and the service thereof.
But this is probably the wrong board for that.
Posted on 12/28/21 at 6:12 pm to Bass Tiger
quote:
the shutdowns were probably orchestrated to benefit certain industries/corporations
Internationally?
I'm not sure I'm willing to buy that.
Posted on 12/28/21 at 6:19 pm to WildTchoupitoulas
quote:
the shutdowns were probably orchestrated to benefit certain industries/corporations
Internationally?
I'm not sure I'm willing to buy tha
I don’t want to think we have that level of nefarious scheming going on but…
The corporations that have benefited the most from Covid19 shutdowns are primarily international corporations. Like….Big Tech and Big Pharma.
Posted on 12/28/21 at 6:21 pm to WildTchoupitoulas
well you're right to consider it from all angles, as we all are .. but inflation is not the only point from the outgoing Fed President quoted here ...
It is the net effect of ALL of it.
As to the benefits for particular corporations: While it may not necessarily be their stated, or actual, intent - but the policies related to "Too Big to Fail" end up with less competition, bigger and bigger mega-corporations, and a widening wealth gap which is only getting worse and worse
So, the little guy gets squeezed. Again.
It is the net effect of ALL of it.
As to the benefits for particular corporations: While it may not necessarily be their stated, or actual, intent - but the policies related to "Too Big to Fail" end up with less competition, bigger and bigger mega-corporations, and a widening wealth gap which is only getting worse and worse
So, the little guy gets squeezed. Again.
Posted on 12/28/21 at 6:23 pm to WildTchoupitoulas
quote:
I'm curious to know what kind of a drop in inflation might we see when the supply gets back to pre-COVID levels - if any - if ever. The article seems to imply that it's all due to the money supply.
Those that influence and control the money supply are in control until the fiat monetary system becomes insolvent. If inflation continues to run in real terms over 10% for another 12-24 months we’re in real trouble….maybe not kaput but things will be pretty shaky.
Posted on 12/28/21 at 6:24 pm to Bass Tiger
Too bad none of the middle class were able to refinance their homes. You had none were able to get cheap mortgage rates and buy a home, a car or a boat. Too bad only the rich could take advantage of the low interest rates.
Posted on 12/28/21 at 6:30 pm to doubleb
what's your point?
Posted on 12/28/21 at 6:33 pm to Bass Tiger
Yeah, but none of this could have happened without a large percentage of nonessentials getting to stay home with a guaranteed government paycheck. A lot of people are better off because of covid. They aren't fooled, they are complicit.
Posted on 12/28/21 at 6:36 pm to Bass Tiger
quote:
. The Federal Reserve took interest rates to 0% essentially penalizing every American who held cash in interest bearing accounts so the Fed could bailout the “too big to fail” institutions who made foolish “fog a mirror” loans. Many of those loans were packaged up as MBS/CDS and they were primarily junk loans destined to never be repaid.
Bongino has been saying this, almost word for word, for quite some time.
The sad thing is dems do it on purpose
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News