I didn't know (or had already forgotten) that the banks no longer have a reserve requirement.
jmski52
Posts: 22,899 ✭✭✭✭✭
Is this fact?
https://www.encouragingangels.org/
In early 2020 the Federal Reserve disclosed …’As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.’…
If this is true, then along with FASAB 56 in which gov.com is no longer accountable for any financial reporting or accuracy if it is deemed to be of national security importance, the banks aren't accountable for any financial malfeasance in any way either.
Add to this, the fact that your bank account balance is now considered a loan to the bank and not your own asset - the whole financial system is both corrupt and untouchable.
Not to mention what's going on in Canaduh in terms of their new ability to attack financial assets if they don't agree with your perspectives.
It's not looking too good for people in general. Any thoughts on how to navigate all this?
I knew it would happen.
Comments
I wasn't aware of that either. If true... I have a gut feeling we are being set up big-time.
Got gold? Got silver?
Welcome to the New World Order.
Welcome to the machine.
Well you are half right. They have been suspended because of Covid and theirs no time frame when they will be reinstated. I know regulation D talks about banks reserve requirements.
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Move to Canada?
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Looks like not only do the banks still hold reserves, but those reserves are near all-time highs.
https://fred.stlouisfed.org/series/TOTRESNS
Knowledge is the enemy of fear
Are those reserves required?
I guess market forces rather than regulators are determining reserve levels. Sounds scary.
We can't move anywhere. I have a buddy who wants to move to Australia , you can go but even if you want to move there permanently you dont get to be a citizen. In fact most countries folks would think it would be nice to move permanently don't let you be a full citizen.
Why did they double after March 2020?
Knowledge is the enemy of fear
Werent the complaints over the last decade about too much regulation?
Knowledge is the enemy of fear
My guess is the risk-free interest they can earn from the Fed
Maybe. So the fear of system collapse is unfounded as the banks would rather sit on money rather than make bad loans.
Does a car need seatbelts if its just parked in the driveway?
Knowledge is the enemy of fear
@cohodk said "So the fear of system collapse is unfounded as the banks would rather sit on money rather than make bad loans."
Although if one were a little cynical, one might say that the banks are happy to let the Federal government encourage, make, or guarantee doubtful loans.