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Thread summary:

Lincoln greenback’s, interest free greenbacks paying for war, federal reserve notes, seven financial conspiracies, contracting currency to pay for Iraq war

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Old 02-14-2009, 05:56 PM
 
Location: Orlando, Florida
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Just for fun.....
Historically, the 'greenback' was sometimes not worth more than 40 cents.....
much like today!

Greenbacks
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Old 02-14-2009, 09:15 PM
 
Location: Denver
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Quote:
Originally Posted by gwynedd1 View Post
Hi mjohnson4381,

Oh you will not learn this in Econ. I took Micro and Macro econ before dropping out of MBA school and shifted to CIS. It was basically just Keynesian. You may learn this in history class. You will learn that selling government bonds crowds out private borrowing. If the Federal government offered you 5% and your neighbor offered you 5% you would not lend to your neighbor. The Federal government is guaranteed. Thats the major complaint of heavy government borrowing. You will only lend to another at a higher rate. When we are in an inflationary environment it forces the Fed to sell bonds to cover the gap. Its quite simply really. If you park cash in a bond you are not giving it to anyone else.
The big scandle was they were running a surplus at the time. What was the need? also instead of selling bonds they just just raise revnue with more greenbacks. If they wanted to reduce their supply just tax them in.
Let me see if I understand this. You're talking about banks lending to the Federal government...and the government is borrowing a lot of money right now. This might be another dumb question, sorry, but I really want to understand this. According to the media, the money that the government is borrowing is coming from foreigners, mostly China. China doesn't lend to the general American public money...do they?

Last edited by mjohnson4381; 02-14-2009 at 09:40 PM..
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Old 02-14-2009, 09:18 PM
 
Location: Denver
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Oh, wait. Do you mean that by simply selling Federal bonds to finance the bailouts, we're crowding out private lending? I think that makes sense to me.
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Old 02-14-2009, 09:21 PM
 
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Originally Posted by bxlefty23 View Post
lincoln was a racist scumbag
And a lame, ineffectual one at that. He didn't put everyone on boats and send them back. LOL!

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Old 02-14-2009, 11:25 PM
 
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Originally Posted by mjohnson4381 View Post
Oh, wait. Do you mean that by simply selling Federal bonds to finance the bailouts, we're crowding out private lending? I think that makes sense to me.

Hi mjohnson4381,

That is the effect of selling bonds. That is what happened when greenbacks functioning as currency were exchanged for bonds. That is exactly what China does to mop up their yuan. They then take the proceeds and buy treasuries. This is what keeps the yuan down along with the buying power of the Chinese worker.
In the case of the banks they keep getting their "toxic assets" replaced by treasuries. These "toxic assets" become so by the current climate of depression. Why should banks take risks on loans when they can just keep getting treasuries for nothing? If the depression continues they will be worth a fortune and all their competition will disappear. Why bother with trying to allocate capital? Why not just sit and let the treasuries increase in value and kill off the smaller competition not "big enough" to save?If you stay solvent while everyone else collapses you make a fortune in real terms.
The true horror of the system however is for the rest of us, all we have access to is bank credit at interest. Even if they started loaning again all that we have in our future is debt slavery. That is the biggest difference between a greenback as a free government created currency and what we use as fractional reserves from banks.
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Old 02-15-2009, 12:15 AM
 
Location: Denver
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I think I understand now, thanks!

I have heard on many occasions, and agree with, the notion that debt = slavery. What are individual people supposed to do, though? Even if we don't get ourselves individually into personal debt with mortgages and car loans, we still have to deal with the consequences of our government's actions. Like, if China did something really despicable...we'd pretty much have to go along with it. They basically own us at this point, right?
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Old 02-15-2009, 10:38 AM
 
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Here is more support for my argument that the Federal Reserve life line to the banking cartel is not only costing us trillions in current nominal terms but is creating an incentive to further destroy our economy. staying solvent in a depression is like winning the lottery.


Bill Moyers Journal . Watch & Listen | PBS
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Old 02-28-2009, 07:08 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,473 posts, read 13,442,879 times
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Quote:
Originally Posted by gwynedd1 View Post
Here is more support for my argument that the Federal Reserve life line to the banking cartel is not only costing us trillions in current nominal terms but is creating an incentive to further destroy our economy. staying solvent in a depression is like winning the lottery.


Bill Moyers Journal . Watch & Listen | PBS
nice link. Thanks for posting it.
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