The Banking System

[Lhalo]

I’m starting this thread to educate fellow AW posters about how our banking system is stacked against the average citizen and favors bankers and government officials.

Unfortunately we are at the edge of a financial precipice. Currently the Federal Reserve is raising rates to curb inflation causing the stock market to fall. Here’s the catch: Jerome Powell, the head of the Federal Reserve can’t raise the federal funds rate high enough to curb inflation without bankrupting the United States because at higher rates the government can’t afford to pay the interest on it’s debt. The Fed can only do one of two things; raise rates and crash the economy, or buy treasuries and create hyperinflation. There is no middle ground and the average Cramer fan  shmuck will soon find this out. 

What I want people to understand is that there never should have been a Federal Reserve or central bank to begin with. That whole “central bank” thing was nothing but a cabal of bankers getting together to control the money supply and what we need is a free market to decide lending rates instead of a few powerful people manipulating them for their own good. 

I’m happy to debate this with others on this board as I hope the coming extreme economic downturn serves as an opportunity for discussion. 

[katie]

[cals]

Dammit who gave Larry weed?

[Lou]

[Adam]

Agreed. Poor people be really fucked soon

[Rico]

Meanwhile some businesses are seeing record profits. The top 3 grocery chains have already surpassed last years profits by 228 million. 

[Lou]

14 minutes ago, Rico said:

Meanwhile some businesses are seeing record profits. The top 3 grocery chains have already surpassed last years profits by 228 million. 

How did the smaller stores do?

[Jason]

38 minutes ago, Lou said:

How did the smaller stores do?

Do you mean the ones that are still around? Good question 

[Crampknees]

I smoked some weed and read Larry's thing and I do agree about the Fed. 

[Brandon]

Of course stores are seeing record profits. Inflation is up, thus the cost of goods and margins are up. We are also piggybacking off Covid where free money was handed out, thus people were spending more.

Its really a moot point to say the top three stores are showing record profits. Especially if the numbers shown are fiscal numbers.

[Adam]

They are overflowing with fiat 

[AngelsLakersFan]

26 minutes ago, Adam said:

They are overflowing with fiat 

Those are such shitty cars too

[AngelsLakersFan]

6 hours ago, Rico said:

Meanwhile some businesses are seeing record profits. The top 3 grocery chains have already surpassed last years profits by 228 million. 

Link?! I am skeptical.

[AngelsLakersFan]

23 hours ago, Lhalo said:

I’m starting this thread to educate fellow AW posters about how our banking system is stacked against the average citizen and favors bankers and government officials.

Unfortunately we are at the edge of a financial precipice. Currently the Federal Reserve is raising rates to curb inflation causing the stock market to fall. Here’s the catch: Jerome Powell, the head of the Federal Reserve can’t raise the federal funds rate high enough to curb inflation without bankrupting the United States because at higher rates the government can’t afford to pay the interest on it’s debt. The Fed can only do one of two things; raise rates and crash the economy, or buy treasuries and create hyperinflation. There is no middle ground and the average Cramer fan  shmuck will soon find this out. 

What I want people to understand is that there never should have been a Federal Reserve or central bank to begin with. That whole “central bank” thing was nothing but a cabal of bankers getting together to control the money supply and what we need is a free market to decide lending rates instead of a few powerful people manipulating them for their own good. 

I’m happy to debate this with others on this board as I hope the coming extreme economic downturn serves as an opportunity for discussion. 

Ok now explain it to me like I’m 10.

[Lou]

11 hours ago, Jason said:

Do you mean the ones that are still around? Good question 

Rico loves big business.

[Rico]

 

[WicketMaiden]

2 hours ago, Rico said:

 

Governments should hit all these companies with a 50% windfall tax for profiteering during a crisis. Then use half of that money to support the small businesses they've undermined over the past two years, and use the rest to cut taxes for ordinary people. 

[arch stanton]

6 minutes ago, WicketMaiden said:

Governments should hit all these companies with a 50% windfall tax for profiteering during a crisis. Then use half of that money to support the small businesses they've undermined over the past two years, and use the rest to cut taxes for ordinary people. 

Or just take all the money out in bags of quarters and beat them with them

[Jay]

10 minutes ago, arch stanton said:

Or just take all the money out in bags of quarters and beat them with them

or 10 pence coins since Shell is a U.K. company.

 

[St1ck]

5 minutes ago, Jay said:

or 10 pence coins since Shell is a U.K. company.

 

 

[Jay]

And Shell actually missed on the bottom line:

Shell (SHEL) Misses on Q3 Earnings, Ups Shareholder Returns

Europe’s largest oil company Shell plc (SHEL Quick QuoteSHEL - Free Report) reported third-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $2.58. The bottom line came in below the Zacks Consensus Estimate of $2.68. The underperformance reflects lower production and a pullback in refining margins from their second-quarter highs.

 

[Adam]

28 minutes ago, WicketMaiden said:

Governments should hit all these companies with a 50% windfall tax for profiteering during a crisis. Then use half of that money to support the small businesses they've undermined over the past two years, and use the rest to cut taxes for ordinary people. 

haha like the government isn't in their pockets 

[WicketMaiden]

43 minutes ago, Adam said:

haha like the government isn't in their pockets 

That's why I said 'should', 'would' is in a whole other fantasy world where governments actually work for the people they represent.

[WicketMaiden]

57 minutes ago, Jay said:

or 10 pence coins since Shell is a U.K. company.

 

It's registered here but it's actually a Dutch company with HQ in The Netherlands, it's full trading name is Royal Dutch Shell. 

[Blarg]

When the US government tosses away Trillions at a time in spending bills you wonder how we actually get upset at a major corporation making $9 billion profit. In their world that is only over charging about 15 cents per barrel of crude oil. And that is just assigning those profits to crude when you look at that being converted to fuel both gas and diesel along with their natural gas production and other refined oil products, the real number is very small for the actual profit to metric tons of production. 

Meanwhile the Federal government pisses away Shell's $9 billion dollar profits in about 12 hours. Take 50% as windfall (which the US can't since it isn't an American Corporation) and it funds 6 hours of the Federal spending. So in about the time it would take to fly to Washington and confront your senator, that money is already spent. 

In 1960 @Lhalo the national debt was over 52% on the Gold Standard. In 1980 it was 35% tied to the GNP.  Our National debt now is 121% of the GNP. We don't need to tax Shell, we need to stop the spending. Every time the President and Congress say we have to bail out corporations the public needs to say no in a very loud voice. Billions of dollars of graft took place in the Obama Administration to bail out the Auto Industry. They upped that to Trillions of dollars to keep their doners happy during Covid and continues every day through Senate appropriations. Every month we spend billion smore to keep the Ukraine afloat, making it more expensive to run a proxy war than a real war. 

As citizens we've lost control of government spending. They need no approval to spend any amount on anything they wish. That is a change that needs to be placed into the framework of US Government, an actual accountability to the people to get approval to go over expenditures that exceed their budget. If that required more voting then let's do it and stop the eternal madness of spending without assets.