Monday, January 25, 2010
***** Privacy Alert *****
Friends in the industry have informed me that major U.S. banks have been instructed to submit Form 104s for cash withdraws lower than the $10,000 threshold required by the Bank Secrecy Act.
Limit cash withdraws to LESS THAN $2,500 per 24 hour period if you want to avoid being reported to the government.
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If this is the case, then it is to late if you have been taking out five thousand here and there over the last six months.
ReplyDeleteThey know everything already
Is it the war on drugs or a war on cash?
ReplyDeleteI'm surprised they haven't done away with the $100 bill... even the $50. Can't make transactions outside the banking system easy...
Thanks FDRAOA, these are the kinds of nuggets of info that the internet is all about. I appreciate it.
ReplyDeleteCH1
Is copper wrong this time? Why are the equity markets smarter than raw demand all of a sudden?
ReplyDeleteFDR --
ReplyDeletecare to comment on how the following article fits in with your "Fed is shorting real estate" scenario, which claims the Fed is protecting the holders of GSE bonds?
http://hussmanfunds.com/wmc/wmc100125.htm
How to spend $1.5 trillion without Congressional approval
Step 1: Federal Reserve purchases $1.5 trillion in Fannie Mae and Freddie Mac securities, creating $1.5 trillion of monetary base to pay for these purchases.
Step 2: U.S. Treasury quietly announces unlimited support for Fannie Mae and Freddie Mac on December 24, 2009, exploiting a loophole in a 2008 law that was originally written to insure a maximum of $300 billion in total mortgage principal (not losses, but principal).
Step 3: Over the next several quarters, the U.S. Treasury issues $1.5 trillion in new Treasury debt to the public, taking in the $1.5 trillion in base money created by the Fed in Step 1.
Step 4: U.S. Treasury hands that $1.5 trillion in proceeds from the new debt issuance to Fannie Mae and Freddie Mac.
Step 5: Fannie Mae and Freddie Mac use the proceeds to redeem the $1.5 trillion in mortgage securities held by the Fed, thus reversing the Fed's transactions in Step 1, without the need for any other "unwinding" transactions (watch). The base money created by the Fed comes back to the Fed, and the mortgage securities purchased by the Fed disappear, by burdening the American public with a new, equivalent obligation in the form of U.S. government debt.
Outcome: The Federal Reserve closes its positions in Fannie Mae and Freddie Mac securities, the quantity of outstanding Fannie Mae and Freddie Mac liabilities declines by $1.5 trillion, thus allowing their remaining assets repay the remaining liabilities without a $1.5 trillion hole of insolvency, and the outstanding quantity of U.S. Treasury debt expands by $1.5 trillion in order to protect the lenders, while ordinary Americans continue to lose their homes and jobs.
Throughout this crisis, the ultimate objective of Bernanke and Geithner has consistently been to protect the bondholders. This objective will not change unless the leadership changes.
notgreat,
ReplyDeleteThe Federal Reserve preys upon the nation in times of peace, and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes.
- Abraham Lincoln (I replaced Money Power with Federal Reserve)
Allright Fed, game on.
ReplyDeleteI guess they got me.
I've been harassed at airports, banks making me sign forms (I sign as Ronald Reagan.)
Cash and PM's in my safe. Ammo in another secure location.
I am officially afraid.
I am Marine Corp. ret. after 23 years or mud and sand.
Yet I am afraid of the government.
That's a strong statement. And It makes me sad.
I guess I'm up for an audit then. I've been removing 8K a week from the banks for over a year.....
ReplyDeleteMaybe a visit from the guys who wear dark sunglasses at night.
Time to emigrate to Australia.
"I guess I'm up for an audit then. I've been removing 8K a week from the banks for over a year....."
ReplyDeleteYou're ok. I posted this the day after it went into effect at their banks.
FDR
ReplyDeleteOn the form 104 , if small credit unions are not included , there is the answer for larger convienient withdrawls than the 2k under the radar stratagy, you think?