ISRAEL TRUTH TIMES

A blog dedicated to investigating events as they occur in Judea and Samaria, in Israel and in the world, and as they relate to global powers and/or to the Israeli government, public figures, etc. It is dedicated to uncovering the truth behind the headlines; and in so doing, it strives to do its part in saving Judea and Samaria, and by extension, Israel and the Jewish People, from utter destruction at the hands of its many external and internal enemies.

Sunday, February 17, 2008

RE: implications of these negative reserves figures


RZ answered, to my question below,

And now my new question is, what does the graph BELOW signify, in practical terms?

Basically, it means that the private banks that belong to the Federal Reserve System have no cash, and no assets, and large amounts of unsecured debt.

(Think about what that would mean to anyone who has "loaned" their money to one of those banks…)

 

The Fed must supply the difference in (more) unsecured loans, basically by "printing" more worthless dollars.

 

It appears to the observer that the system has already crashed, and the victim is still unaware of the injury.

 

But see this from today's NYT:

http://www.nytimes.com/2008/02/17/business/17swap.html

 

DS asked: 

 I am not sure I understand the implications of these negative reserves figures. Do you?

 


Posted by DS at 2:14 PM

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