I'm calling a 1,000 point drop for Dow tomorrow

[DrunkenLullaby]

So what happens if we still drop 400 today despite the Fed cut? I'm not betting that we will close down that much, but with the Fed revolver empty of silver bullets, it could make for a very very dark & bloody week.

[RageWizard]

I love it when the Fed makes it easy to telegraph the market. Since he cut rates a 3/4 point, cover the short positions on the opening and getting in on the short covering rally has worked out for me beatifully. Props to the DrunkenLullydude for helping me realize that gold was coming down yesterday. I took advantage of that play when the fed took care of the rate cut. Now during lunch I expect the short squeeze to continue, and maybe the day might even end up positive. But don't let that signal you to jump in like its a goldilocks economy and everthing is O.K. like Kudlow on CNBC would like you to believe. The shorts will be back in force probably tomorrow or absolutely by the end of the week.

[Wrigley]

Fed still needs to cut more this is just putting a band aid over a wound that needs stiches

[RageWizard]

Fed still needs to cut more this is just putting a band aid over a wound that needs stiches

He doesn't have far to go, I'd guess that his hands are tied now with the rate cut thing. The Criminals in the Administration and the Fed are running out of tricks for the market. There have been so many bandaids applied already that any day now the blood with soak through and people will get killed.

[DrunkenLullaby]

Props to the DrunkenLullydude for helping me realize that gold was coming down yesterday.

Happy to assist. Wish I hadn't held out for $850 as my buy point.

[RageWizard]

Happy to assist. Wish I hadn't held out for $850 as my buy point.

This morning Fed action should have been all the information that you need. Gold was actually going down this morning until the fed spoke up and then whamo gold turned on a dime and has not look back since.

[DrunkenLullaby]

This morning Fed action should have been all the information that you need. Gold was actually going down this morning until the fed spoke up and then whamo gold turned on a dime and has not look back since.

Yeah, I know, but I gotta sleep sometime! Went to bed in the low 850s, woke up at 890. Ah well, my existing holdings are certainly happy!

[ShamsWoof10]

Sorry about the double post I just thought it should go in a thread like this...

Just skip down to the end...

The following is a conversation with Mr. Ron Supinski of the Public Information Department of the San Francisco Federal Reserve Bank. This is an account of that conversation.

CALLER - Mr. Supinski, does my country own the Federal Reserve System?

MR. SUPINSKI - We are an agency of the government.

CALLER - That's not my question. Is it owned by my country?

MR. SUPINSKI - It is an agency of the government created by congress.

CALLER - Is the Federal Reserve a Corporation?

MR. SUPINSKI - Yes

CALLER - Does my government own any of the stock in the Federal Reserve?

MR. SUPINSKI - No, it is owned by the member banks.

CALLER - Are the member banks private corporations?

MR. SUPINSKI - Yes

CALLER - Are Federal Reserve Notes backed by anything?

MR. SUPINSKI-Yes, by the assets of the Federal Reserve but, primarily by the power of congress to lay tax on the people.

CALLER - Did you say, by the power to collect taxes is what backs Federal Reserve Notes?

MR. SUPINSKI - Yes

CALLER - What are the total assets of the Federal Reserve?

MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.

CALLER - What are these assets composed of?

MR. SUPINSKI - Gold, the Federal Reserve Bank itself and government securities.

CALLER - What value does the Federal Reserve Bank carry gold per oz. on their books?

MR. SUPINSKI - I don't have that information but the San Francisco Bank has $1.6 billion in gold.

CALLER - Are you saying the Federal Reserve Bank of San Francisco has $1.6 billion in gold, the bank itself and the balance of the assets is government securities?

MR. SUPINSKI - Yes.

CALLER - Where does the Federal Reserve get Federal Reserve Notes from?

MR. SUPINSKI - They are authorized by the Treasury.

CALLER - How much does the Federal Reserve pay for a $10 Federal Reserve Note?

MR. SUPINSKI - Fifty to seventy cents.

CALLER - How much do they pay for a $100.00 Federal Reserve Note?

MR. SUPINSKI - The same fifty to seventy cents.

CALLER - To pay only fifty cents for a $100.00 is a tremendous gain, isn't it?

MR. SUPINSKI - Yes

CALLER - According to the US Treasury, the Federal Reserve pays $20.60 per 1,000 denomination or a little over two cents for a $100.00 bill, is that correct?

MR. SUPINSKI - That is probably close.

CALLER - Doesn't the Federal Reserve use the Federal Reserve Notes that cost about two cents each to purchase US Bonds from the government?

MR. SUPINSKI - Yes, but there is more to it than that.

CALLER - Basically, that is what happens?

MR. SUPINSKI - Yes, basically you are correct.

CALLER - How many Federal Reserve Notes are in circulation?

MR. SUPINSKI - $263 billion and we can only account for a small percentage.

CALLER - Where did they go?

MR. SUPINSKI - Peoples mattress, buried in their back yards and illegal drug money.

CALLER - Since the debt is payable in Federal Reserve Notes, how can the $4 trillion national debt be paid-off with the total Federal Reserve Notes in circulation?

MR. SUPINSKI - I don't know.

CALLER - If the Federal Government would collect every Federal Reserve Note in circulation would it be mathematically possible to pay the $4 trillion national debt?

MR. SUPINSKI - No

CALLER - Am I correct when I say, $1 deposited in a member bank $8 can be lent out through Fractional Reserve Policy?

MR. SUPINSKI - About $7.

CALLER - Correct me if I am wrong but, $7 of additional Federal Reserve Notes were never put in circulation. But, for lack of better words were "created out of thin air " in the form of credits and the two cents per denomination were not paid either. In other words, the Federal Reserve Notes were not physically printed but, in reality were created by a journal entry and lent at interest. Is that correct?

MR. SUPINSKI - Yes

CALLER - Is that the reason there are only $263 billion Federal Reserve Notes in circulation?

MR. SUPINSKI - That is part of the reason.

CALLER - Am I mistaking that when the Federal Reserve Act was passed (on Christmas Eve) in 1913, it transferred the power to coin and issue our nation's money and to regulate the value thereof from Congress to a Private corporation. And my country now borrows what should be our own money from the Federal Reserve (a private corporation) plus interest. Is that correct and the debt can never be paid off under the current money system of country?

MR. SUPINSKI - Basically, yes.

CALLER - I smell a rat, do you?

MR. SUPINSKI - I am sorry, I can't answer that, I work here.

CALLER - Has the Federal Reserve ever been independently audited?

MR. SUPINSKI - We are audited.

CALLER - Why is there a current House Resolution 1486 calling for a complete audit of the Federal Reserve by the GAO and why is the Federal Reserve resisting?

MR. SUPINSKI - I don't know.

CALLER - Does the Federal Reserve regulate the value of Federal Reserve Notes and interest rates?

MR. SUPINSKI - Yes

CALLER - Explain how the Federal Reserve System can be Constitutional if, only the Congress of the US, which comprises of the Senate and the House of representatives has the power to coin and issue our money supply and regulate the value thereof? [Article 1 Section 1 and Section 8] Nowhere, in the Constitution does it give Congress the power or authority to transfer any powers granted under the Constitution to a private corporation or, does it?

MR. SUPINSKI - I am not an expert on constitutional law. I can refer you to our legal department.

CALLER - I can tell you I have read the Constitution. It does NOT provide that any power granted can be transferred to a private corporation. Doesn't it specifically state, all other powers not granted are reserved to the States and to the citizens? Does that mean to a private corporation?

MR. SUPINSKI - I don't think so, but we were created by Congress.

CALLER - Would you agree it is our country and it should be our money as provided by our Constitution?

MR. SUPINSKI - I understand what you are saying.

CALLER - Why should we borrow our own money from a private consortium of bankers? Isn't this why we had a revolution, created a separate sovereign nation and a Bill of Rights?

MR. SUPINSKI - (Declined to answer).

CALLER - Has the Federal Reserve ever been declared constitutional by the Supreme Court?

MR. SUPINSKI - I believe there has been court cases on the matter.

CALLER - Have there been Supreme Court Cases?

MR. SUPINSKI - I think so, but I am not sure.

CALLER - Didn't the Supreme Court declare unanimously in A.L.A. Schechter Poultry Corp. vs. US and Carter vs. Carter Coal Co. the corporative-state arrangement an unconstitutional delegation of legislative power? ["The power conferred is the power to regulate. This is legislative delegation in its most obnoxious form; for it is not even delegation to an official or an official body, presumptively disinterested, but to private persons." Carter vs. Carter Coal Co...]

MR. SUPINSKI - I don't know, I can refer you to our legal department.

CALLER - Isn't the current money system a house of cards that must fall because, the debt can mathematically never be paid-off?

MR. SUPINSKI - It appears that way. I can tell you have been looking into this matter and are very knowledgeable. However, we do have a solution.

CALLER - What is the solution?

MR. SUPINSKI - The Debit Card.

Ha! I'm a welfare worker, this one's right up my alley!!

Back in the old days (like, 10 years ago ), food stamps used to come in paper coupon form. They still might in some areas, I'm not certain. Nowadays, food stamp recipients are given an electronic benefit transfer card that works a lot like a debit card. Now instead of handing paper coupons to the cashier, they can swipe their EBT card just like a debit card. Food stamps can be used to buy, duh, food products. You can't buy things like toothpaste or toilet paper with them.

Some areas might still use the paper coupons, I'm uncertain. We were actually just sent an email a few days ago letting us know that there is currently legislation in the works to decertify all paper coupons (i.e. make them worthless) a year after passing the law. I think this might only be because the paper coupons never expired, and some people still have some. I don't know.

swede96, that sounds a lot like WIC (Women Infants Children). WIC gives recipients X amount of something per month. Generally, it's baby formula that women use them for. I'm not aware of any food stamps that require you to buy certain brands or foods. They can be used on any food.

Cash welfare is handled the same way: the money is placed in the account linked to the EBT card. Unlike food stamp money, cash welfare can be withdrawn at an ATM or used on anything.

Yes. With the EBT card, we can track everywhere it is used. This is useful for determining clients fraudulently claiming to be living in a state that they aren't in. It can also help with tracking stolen cards.

It sounds like they just want to increase the current food stamp benefit level for people already on them and/or raise the income limits. I suppose it is a way of helping families have more money available to spend on other things, since food stamps can only be spent on food, this lets a family spend their other money on non-food-related things.