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Old 02-10-2008, 05:18 AM
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stompk stompk is offline
I work for God
Join Date: Jan 2008
Location: In the valley
Posts: 542
Default Re: The economic hijacking of America

I will quote someone from another online conversation.

Let me preface this by saying that I'm not at all certain I understand what I'm looking at here correctly.
I've been fighting with this all weekend, and don't wish to alarm.
But perhaps "alarmed" is exactly what we should be right now.
Reference? Right here

Date total(2) non- required excess Monetary credit, total primary secondary seasonal
borrowed(3) NSA(4) base(5) NSA
30p 41639 -8751 40179 1460 821298 50000 390 385 0 5
What are you looking at here?
This is the last line of the Fed's "Statistical Release" from January 31st. All figures are in millions. The link to their page is above.
The "Total" is the total amount of reserves in the Fed System (among all member banks), and is approximately $41.5 billion. The required reserves, based on the amount on deposit, is $40.2 billion (roughly.)
So far so good.
But notice that "non-borrowed" number - the negative 8751?
What does that mean?
Well, after much study and trying to get the numbers to all add up, the light went on.
Let's add up a few things for everyone.
The TAF credit, which is the amount that Fed Banks have borrowed in total through the TAF facility through January 30th, is 50 billion. We also have other primary and seasonal borrowings, which are quite small (and normal) of $385 and $5 million, respectively.
Now let's get out our trusty calculator and add things up.
50000 + 390 (385 + 5) - 8751 = $41,639.
The books balance. But do you notice anything about this bookkeeping? Literally all of the banks' reserves, on balance, are in fact Fed Credit from the Federal Reserve!
Source: The Steamboat Pilot & Today: Discussion: hey sbvor, still think we aren't in a recession?

Does the FDIC really hold $100,000 in reserve for every depositor?

How much is that? I would guess around $86 trillion. Which is exactly
what the banking system has hedged right now.
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