Thursday Humor: The Federal Reserve For Dummies And Other Econ PhDs

Tyler Durden's picture

Here's 'Buck' to explain, in plain English, "one of the most complex 'but effective' institutions in the United States - The Federal Reserve System". Whether you view for the pure irony of it - or pass on to an Econ PhD friend, this animated cartoon from the St. Louis Fed (funded by our cliff-invoked taxpayer money we are sure) takes us from inception around one hundred years ago to the present-day and covers the three divisions (Reserve Bank, FOMC, and Board of Governors) and three responsibilities (providing financial services, conducting monetary policy, and supervising banks). It seems 'Buck' had not been informed of the other and varied roles the Fed plays in the world's populations' lives. How long before this is required viewing for all K-12 schools nationwide?


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Frastric's picture

Coming soon to America Inc...

SMG's picture

This video is pure evil.

Please let the people wake up to this fraud and stop it soon.

Cheesy Bastard's picture

That's Buck.  Buck Ofama.

USS Bernanke's picture

50 Seconds in...

** Pulls Back the Curtains **

"As you can see, there is a lot going on around the Fed"

(Bunch of white people standing around buildings holding paper and using magnifying glasses to look at the ground)

Click to see all of the activity going on!



On a side note this must go on their resume for transparancey.


USS Bernanke

EnslavethechildrenforBen's picture

The Fed is unsophisticated and not very complex. They are effective only at exchanging their worthless, useless paper for our resources, land and labor. Otherwise known as EVIL. The fucking criminals need to be tarred and feathered, and hung by their balls and set on fire.

kchrisc's picture

What you describe so well is a racket. The gov and the FedRes are the biggest racket.

Time to add tar and feathers to the gold stash.


economics9698's picture


Alternate goals of the Fed from one of my power point slides.


Alternate unofficial goals of 1910 Jekyll Island meeting

and creation of Fed in 1913

1.Stop the growing influence of small rival banks and

to ensure that control, over the nations financial resources

would remain in the hands of those present at

Jekyll Island,

Senator Nelson Aldrich (business associate of J.P. Morgan, father-in-law to John D. Rockefeller, Jr.), his personal secretary Arthur Shelton, former Harvard University professor of

economics Dr. A. Piatt Andrew (Assistant Secretary of the United States Treasury), J.P. Morgan & Co. partner Henry P. Davison (senior partner of the J.P Morgan Company),

National City Bank president Frank A. Vanderlip  (president of the National City Bank of New York, the most powerful of the banks at that time, representing William Rockefeller and

the international investment banking house of Kuhn, Loeb & Company) and Kuhn, Loeb, and Co. partner Paul M. Warburg, Charles D. Norton, president of J.P. Morgan's First

National Bank of New York, Benjamin Strong, head of J.P. Morgan's Bankers Trust Company, and Paul M. Warburg, a partner in Kuhn, Loeb & Company, a representative of the

Rothschild banking dynasty in England and France, and brother to Max Warburg who was head of the Warburg banking consortium in Germany and the Netherlands

2.  Make the money supply more elastic in order to reverse the trend of private capital formation and to recapture the industrial loan market.

3.  Pool the meager reserves of the nation’s banks into one large reserve so that all banks will be motivated to follow the same loan-to-deposit rations.  (Get loaned up to 90%)  This would protect at least some of them from currency drains and bank runs.


4.Should this lead to the collapse of the whole banking system (2008 TARP), then shift the losses from the bank owners to the taxpayers.

5.  Convince congress and the public that the Federal Reserve was needed to protect the public.  Create laws to assist in monetary expansion of credit


Hugh_Jorgan's picture

Well, like any good organized crime outfit you have to have a front business, no?

rollercam's picture

Some of them look to be pissing on the grass and buildings.

economics9698's picture

It must be nice to print the medium of exchange for the tribe. 

Funny how people are bewildered by this and why the tribe dominates in war, defense, Hollywood, education, politics, everything is the tribe.  Everywhere I look the tribe is telling me I am a idiot racist white man. 

The tribe passes it off as they are educated and smart.  Funny I do not see any Austrian professors anywhere, funny isn’t it?  Like even when the Austrian get the PhDs they never seem to get a job.

Yea it’s real bewildering until you understand THEY OWN THE FUCKING BANK!


Hugh_Jorgan's picture

Make me think that it's time to stop needing the banks so much, eh?

knukles's picture

I quit after the first 2 minutes when Buck gave an overview of the structure, the component parts and erroneously omitted Goldman and The Morgue.

(half crying half laughing sounds... dogs looking at me with heads cocked)

EnslavethechildrenforBen's picture

It is imperative that we enslave the children for Ben and his accomplices so that EVIL will prevail on earth for eternity.

Urban Redneck's picture

Dumbing the narrative down conveniently avoids addressing "adult" questions.

However, prior to 2008 GS didn't even have a seat at the table (unlike JPM) which is why their primary mechanism of influence developed through "alumni" networking- which is endemic to the broader marriage of the political and corporate communities, and itself distracts from the inherent corrupt design of largely self-regulating Federal Reserve System and the utter lack of external checks and balances.

fockewulf190's picture

THE cure for use in a sleep disorders clinic.

A Nanny Moose's picture

Federal Government is already incorporated, is it not? Are most municipalities, and public safety agencies as well?

EscapingProgress's picture

I thought the Fed only had one responsibility: steal from the poor, give to the rich.

P.S. You're a dick, Buck.

FL_Conservative's picture

He obviously doesn't know what the BUCK he's talking about.

TheSilverJournal's picture

It does, which is why, according to the video, "most economists agree that low steady inflation is good." That inflation is exactly what is being stolen from the poor to give to the rich. So, therefore, most economists must also agree that stealing from the poor and giving to the rich is good.

The natural state of an economy is deflation. Prices should be going down as technology improves productivity. Not only has the Fed and the government stolent the benefit of falling prices from society, but they have added the additional burden of rising prices.

Bunga Bunga's picture

"most economists agree that low steady inflation is good."

This may be true, but only for the fact that there are more Keynesians than Austrians. Inflation is just a dishonest way of taxing people and Keynesians think that is good.



TheSilverJournal's picture

Exactly. The pay checks of most economists are also signed by the government or members of the banking system so it's hardly surprising that they believe it's a good thing that the rest of society suffers in order to keep their employer in business.

Opinionated Ass's picture

"Bingo. Pocketing the productivity gains with one hand and pointing with the other hand at stable prices is the evil core of the Fed's game! Now you've figured it out remember: you must never, ever mention it again. Just bury it deep down inside and never bring it up again. You're gonna have to trust me on this." - Your friend, Buck

whotookmyalias's picture

Oh yeah, we forgot one minor role. Monetizing debt and printing money.

Bastiat's picture

Suppressing interest rates, blowing bubbles and destroying the value of savings.  Step aside Buck, I am Benjie, Destroyer of Worlds. 

knukles's picture

Manipulating gold and stocks

TheSilverJournal's picture

The greatest trick the devil ever pulled is brainwashing society into rejecting the understanding of the word "malinvestment."

traderjoe's picture

Acting as a front for fractional reserve banking - the counterfeiting of money by private insititutions. 

NotApplicable's picture

Plain English, you say?


How's that?

TheSilverJournal's picture

counterfeit, theft, ponzi scheme operator, Bernie Madoff on steroids, monopoly, central planner, socialist, resource redistributor, reverse Robin Hood, elitism, corporatism, bankster, tyranny

A Lunatic's picture

Buck, Buck, Bo Buck, Banana Fanna Fo..................

Elk peanus's picture

say it, you naughty NAUGHTY bitch! (In Richard Simmon's voice)

buzzsaw99's picture

serve the maggots, impoverish the people

THE DORK OF CORK's picture

Buck was frozen back in 1987.


"Buck drifted through a world in which reality and fantasy merged into a timeless dream"


  Buck -  "Greenspan who ?"

  Wilma -      "You know the guy who destroyed most of Human Civilization"

Buck - "never heard of him."


NotApplicable's picture

That's awesome.

Hopefully Tyler will make it a Friday humor post tomorrow.

FinalCollapse's picture

Sorry, but I couldn't listen to the whole presentation. I puked around 2:30 minute mark.

EnslavethechildrenforBen's picture

I did the Linda Blair thing after about 12 seconds in

Mr Lennon Hendrix's picture

Bob I read your thread about the $335M notional sell order.  You think that someone had a margin call worth $335M and decided to meet it by selling only gold? 

Think about how rediculous that is.  Wouldn't you want to diversify your sale to keep your investments diversified accordingly? 

And if the margin call was larger than $335M then why would they sell gold now right before it becomes a tier one asset?

It makes no sense Bob Dobalina and neither do you.

Mr Lennon Hendrix's picture

This infomercial (Buy the Fed!) starts off telling us that the Fed's job is to stop bank runs; bank runs like what happened in the early 20th century.  WHat it doesn't say is John Pierpont Morgan started those bank runs himself when he let loose panic rumors that certain banks (other than his own) were insolvent.

And if anyone who hasn't watched the video yet wants a summery:  Bore-ring

Rompoculos's picture

His name is Buck and he's here to fuck.

jayman21's picture

Fuck you Buck.  Fuck you Bernacke.

ISEEIT's picture

Bens gone buckwild!

Al Huxley's picture

My god, where do you even start to comment on something like this.  So wrong, so wrong...

Central Bankster's picture

Well I just threw up a little.

jayman21's picture

New Drinking game.  When Buck tells a lie, drink

edb5s's picture

My favorite part was when Buck made the joke about commercial banks being "financially sound."