Are You Drinking My BROTEIN, Bro...? The Wacky World of ETFnerd...

[Kishi]

See? Now all y'all gonna understand what I'm saying. Happy days!

[ETFnerd]

[ETFnerd]

[ETFnerd]

[ETFnerd]

[ETFnerd]

[ETFnerd]

[ETFnerd]

http://www.youtube.com/watch?v=4bMSy5J-hUw

[leadchipmunk]

Video was removed. Here you go:

http://www.youtube.com/watch?v=BDaA4WKoYEA

[leadchipmunk]

And the other side of the election:

I love the Romney worm!

[ETFnerd]

[ETFnerd]

$10,000 - Enough for a great vacation or to buy a used car.

Approximately one year of work for the average human on earth.

[ETFnerd]

$1,000,000 - Not as big of a pile as you thought, huh?

Still this is 92 years of work for the average human on earth.

[ETFnerd]

$100,000,000 - Plenty to go around for everyone.

Fits nicely on an ISO / Military standard sized pallet.

The couch is worth $46.7 million. Made out of crispy $100 bills.

[ETFnerd]

$100 Million Dollars provides 2000 jobs @ $50,000 / year

Below you see 2000 people standing shoulder to shoulder, looking for a job.

Like it was said above- The Federal Reserve's mandate is to maintain price stability and low unemployment. The Fed prints money based on their theory that increasing the money supply will boost U.S. out of recession by boosting jobs.

[ETFnerd]

One Billion Dollars

$1,000,000,000 - You will need some help when robbing the bank.

Interesting fact: $1 million dollars weights 10kg exactly.

You are looking at 10 tons of money on those pallets.

[ETFnerd]

The Federal Reserve - Central Bank of United States of America

The Federal Reserve has a bottomless pit of money at its disposal. It is arguably the most powerful institution in the world- it controls the money of the Reserve Currency of the World - The US Dollar. It could destroy the world economy by simply changing the main interest rate (Federal Funds Rate), just like in '07/'08.

How money printing happens: The newly printed money is just a number on the computer; printing real money is expensive. The Federal Reserve must have a system to spread the newly printed money. It spreads the money by 'taking over' existing loans; in essence buying the loans (from banks, hedge funds or other financial institutions). This system reimburses the banks the money banks loaned out before it's repaid by client, by so injecting new money into the economy.

The loans are considered "assets" because they earn interest. There are various loans (assets) the Federal Reserve buys through its programs, including

Government loans (treasury bills, securities, bonds, etc), MBS (Mortgage Backed Securities- home loans), student loans, credit cards and auto loans and many more.

Little known fact: All money is debt. All money is loaned into existence. Banks can ALSO create money by making a "Reserve Requirement" deposit with the Federal Reserve. If a bank deposits $1 million with Federal Reserve, with a 10% Reserve Requirement it can loan out $10 million by simply typing it into the computer into an account. This is called Fractional Reserve Banking. Federal Reserve also works as a lender of last resort when the banks that loaned out 10x more than they have deposited, get a 'run on the bank' and can't come up with the money-- when more people are pulling it out than they have available. Federal Reserve protects the system that allows lending out what one does not actually have. Federal Reserve is also a private bank, privately owned and not responsible to the Government, or anyone, except possibly its 300 private share holders.

This might sound confusing, but money-creation is not taught in schools, therefore many completely lack the concept of how the system works. The economy text-books of today are Keynesian theory based-- "print more cash please", written by big corporations, such as McGraw Hill-- which are owned by the banks. Banks benefit from this system, and from you not understanding it. There are many videos and sites covering the concept of money creation.

You are looking at little over $13 Billion dollars getting ready to be transported out, into the economy.

Each pallet of $100 million dollars weights exactly 1 ton (minus the pallet). The trucks shown carry 20 tons of cash. Legal carry weight is usually between 22-25 tons.

[ETFnerd]

Quantitive Easing 3 (QE3) - Fancy name for cash printing operation

$40 Billion / month in 2012

Federal Reserve to print $40 billion a month for remainder of 2012.

In September 2012, the Federal Reserve started its 3rd QE economic stimulus program.

Under this program Federal Reserve will for the rest of 2012 buy $40 Billion a month, each month, in MBS (home-backed loans) from the market, by so infusing new money into the economy.

$40 billion a month would amount to 9,600,000 jobs paying $50,000 / year. Unfortunately, more money does not equal more jobs. The newly printed money is not getting loaned out to consumers (as intended by the stimulus package) but stays with the banks and the banks invest the newly printed money in stocks for fast profits, by so pushing the stock market higher. The money does not go to SBA Bonds that are aimed at pumping cash into small business sectors.

[ETFnerd]

Quantitive Easing 3 (QE3)

continues into 2013

$85 Billion / month in 2013

Above is the projected Federal Reserve printing volume of dollars for 2013.

Federal Reserve intends to print $1020 Billions ($1.02 Trillion) in 2013.

In 2013 Federal Reserve will increase printing from $40 to $85 Billion per month by purchasing $40 Billion a month in MBS (home-backed loans) AND additional $45 billion in 10-30 year US Government treasurys (loans) from financial institutions. "The Fed will therefore monetize roughly half of the US budget deficit in 2013."- ZH

This is equivalent to 20.4 million jobs per year paying $50,000 / year.

[bigm141414]

Gah! Stop trying to edumacate me! Get back to posting funny stuff

[ETFnerd]

Federal Reserve's Balance Sheet by End of 2013:

4,000,000,000,000 - $4 Trillion

As explained above, the Federal Reserve's Balance Sheet is the amount of assets The Fed has purchased (removed) from the free market in order to stimulate it. The Fed owns as of 2012-10-06, 27.2% of the bond market.

Eventually the Federal Reserve must reverse the flow of assets and start selling them or inflation and price instability kicks in. This reverse flow would deduct at least 24% of GDP, when it happens. Federal Reserve is left with a catch-22, because it contradicts their mandate by-law of price stability and maximum employment.

The Federal Reserve's economic models are now broken as The Fed is as of September 2012 shocked its models predict "Explosive Inflation", but reality does not show it.

One of the reasons there has not been an explosive inflation is that there is a little known, but massive by size, Shadow Banking System, a place where 'credit-money' is created by the banks, for the banks and does not enter the real economy by so being protected from causing inflation.

The Shadow Banking system has been deleveraging since 2008 and needs to sell assets to come up with the money to pay back others. This new money comes from the Fed, but now enters Banks' real balance sheets, and is pushed into stocks for quick profits, pushing the stock market higher, by-passing the consumer.

Federal Reserve must print at least $3.9 Trillion more before the Shadow Banking System is stabilized.

[ETFnerd]

1 Trillion Dollars

$1,000,000,000,000 - When they throw around the word "Trillion" like it is nothing, this is the reality of $1 trillion dollars. The square of pallets to the right is $10 billion dollars. 100x that and you have the tower of $1 trillion that is 465 feet tall (142 meters).

[ETFnerd]

9 Biggest Banks' Derivative Exposure (gross notional) - $228.72 Trillion

Note the little man standing in front of white house. The little worm next to lastfootball field is a truck with $2 billion dollars.

There is no government in the world that has this kind of money. This is roughly 3 times the entire world economy. The unregulated market presents a massive financial risk.

[ETFnerd]

In contrast, the value of all US assets according to the Federal Reserve's Flow of Funds as of September 20, 2012 as of 6/30/2012 is:

USD $76.1 Trillion

http://www.federalreserve.gov/releases/z1/Current/z1r-5.pdf

[Jcannon98188]

9 Biggest Banks' Derivative Exposure (gross notional) - $228.72 Trillion

Note the little man standing in front of white house. The little worm next to lastfootball field is a truck with $2 billion dollars.

There is no government in the world that has this kind of money. This is roughly 3 times the entire world economy. The unregulated market presents a massive financial risk. The corruption and immorality of the banks makes the situation worse.

If you don't want to bank with these banks, but want to have access to free ATM's anywhere-- most Credit Unions in USA are in the CO-OP ATM network, where all ATM's are free to any COOP CU member and most support depositing checks. The Credit Unions are like banks, but invest all their profits to give members lower rates and better service. They don't have shareholders to worry about or have derivatives to purchase and sell.

Hate to break it to you, this has nothing to do with unregulated banks. This is the direct result of the governments having a failed economic policy and abandoning a fiat currency. These banks get their money for these debts from the Governments. This is an example of government intervention failing, and not unregulated capitalism gone wild.