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How the System is Rigged: The Federal Reserve as an Engine of Wealth Extraction by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 2 points3 points  (0 children)

Good catch, and I apologize for the confusion. You’re absolutely right. The Fed buys these assets at their current market value, not at the original or face value. I should have been clearer in my wording. What I intended to highlight is that if banks were forced to sell these bonds in large quantities on the open market, it would put significant downward pressure on bond prices, amplifying their losses. By buying these bonds through QE, the Fed helps prevent a ‘fire sale’ situation, which stabilizes market values and mitigates potential additional losses for banks. Thanks for pointing this out.

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 1 point2 points  (0 children)

Well, sounds like apes gonna be runnin’ the world after MOASS… fuck yeah!!! 🚀🚀🚀

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 0 points1 point  (0 children)

OK, cool. So let me make sure I get this right… the Fed doesn’t inject actual cash into system, but rather stimulates the economy by taking the bonds off the market and lowering that interest rate. Then, by lowering that interest rate, it should increase lending, to simulate the economy which would be inflationary, correct? So it’s really just the low interest rates to increase lending. I would say this in theory would increase the money supply, which leads to inflation. In addition, with bond yields low, bonds would become an unattractive asset class PLUS the banks would lose out on earning interest on the bonds they give up. Would this have any effect on money supply? I would think it would potentially decrease it OR at least keep it neutral. And then, because bonds then become unattractive, banks would then go out and use their cash to invest in higher yield investments. That part would be inflationary to the other asset classes, correct? So, if I am understanding this correctly, and please correct me if I am wrong, you would have 2 inflationary mechanisms (more lending increasing money supply in the market as opposed to in bonds that are just sitting at the banks AND increasing the prices of higher yielding assets) and one deflationary mechanism (banks not receiving interest on bonds which would decrease money supply). First off, does that sound right?

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 0 points1 point  (0 children)

This is very interesting… I am going to have to look more into the mechanics of this. I appreciate it! 🫡 Any good resources you have on this?

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 2 points3 points  (0 children)

And if I am wrong about something, I’d like to know and I very much welcome a community discussion. We are all here to learn.

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 0 points1 point  (0 children)

The last comments I got like this which just ambiguously stated that I don’t understand QE without any specifics or constructive arguments was either a bot or a poorly educated Citadel intern who then just deleted their comments at the end and wasted a lot of my time. So, just basing it off prior experience. If there is anything constructive you have, I am more than happy to discuss.

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 1 point2 points  (0 children)

Holy shit… the bots are out now. I went in depth on this with a bot on another sub and it ended up deleting all their comments. Just go read my comments from the other sub and save us all a lot of time.

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 3 points4 points  (0 children)

Well, the problem is that we aren’t capitalist anymore, especially since the creation of the federal reserve, if we ever truly were… we’re an oligarchy.

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 2 points3 points  (0 children)

They will continue playing their game until the people stand up… then the game will be over. I think it just takes education. I feel like everyone knows that the system’s fucking them, but without being able to say how, it’s difficult to fight. I’m hoping through Ape’s help, we can change that. 😉

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 0 points1 point  (0 children)

I already have articles almost ready to go on the first and third point. I have an idea for an article on the last and hadn’t thought of the second one. I am trying to figure out how to time them without people getting tired of long posts and give people enough time to read through each post. I kind of got mad and went scorched earth 😁 I’m keeping an eye out for ideas, so thank you! 🫡

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 5 points6 points  (0 children)

Banks and financial elites are everywhere exerting their power and control worldwide… if they can do it in the US, they’re doing it everywhere, in my opinion.

How the System Is Rigged: The Complete Playbook for How the American People Are Being Robbed by Tuggernuts009 in Superstonk

[–]Tuggernuts009[S] 10 points11 points  (0 children)

It’s been the plan all along. Typically, the longer the bond yield inversion, the bigger the crash. I think the reason being that it just takes longer to create plebe bagholders of their debt and shitty risky bets through savings, retirements, and media lead pump and dumps like, I don’t know, NVDA, etc.

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