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Old 10-03-2011, 02:25 PM
 
3,457 posts, read 3,285,452 times
Reputation: 1532

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Quote:
Originally Posted by gwynedd1 View Post
The real solution is not even on the table.
what is the real solution?

i don't have any great ideas. seems to me like the answer is to force banks to maintain a tighter grip on their reserves.... and to actually have those reserves be real assets, not pretend assets.
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Old 10-03-2011, 04:39 PM
 
19,337 posts, read 16,932,211 times
Reputation: 7515
Quote:
Originally Posted by Cletus Awreetus-Awrightus View Post
what is the real solution?

i don't have any great ideas. seems to me like the answer is to force banks to maintain a tighter grip on their reserves.... and to actually have those reserves be real assets, not pretend assets.

Its far less complicated than presented. Its a credit based money system, meaning all money is created as debt. All the FED does is monetize "da guberment" debt. This then becomes the basis for expansion under the fractional reserve system which is all in the form of bank loans. Thus the formula:

money supply = da guberment debt + business debt + consumer debt.

When sub prime debt collapsed, it demonetized the debts of the poor causing a lapse in money/debt creation. Who is going to take on debt now? So far the FED is simply monetizing more da guberment debt by purchasing it. However that only tends to lower the cost of borrowing in the private sector and does nothing to make banks loan money. All they do is loan it outside of the US in dollar carry trade. None of the money comes here.

However the average American has no clue how our money works. If two brothers Billy and Johny want to trade they could use their own IOU. However how many kid brothers are good for it? On the other hand they could trade freely with an ice cream cone IOU form their parents they could trust. If there were 10 IOUS, they would have lots of liquidity. If the tea party gets their way, we will have the parents coming up with those ice cream cones. Say good bye to the liquidity between the brothers and hello depression.

Balancing the budget is essentially saying we must rely on business and consumers to go into more debt. That sound good? Another QE is essentially saying banks should encourage this more. They are not going to do it because they know its not good. Its a dead donkey, and they made the bullet that killed it. I think they know.


The solution? "da gubermnet" should go into "debt" because its debt free money to business and consumers. This would replace the disappearance of sub prime debt/money. The debt will "pay" for a tax holiday that would inject cash directly into the goods and services economy. The national debt isn't debt, its mommy and daddy IOUs that create free liquidity. If we don't like owing China, then don't let them buy the debt or raise tariffs until they float their currency. Its easy to stop any side effects of Asian merchantilism as well.

The answer is a tax holiday, The End.

Yet 95% of everyone who reads this will be confused because they think the national debt isn't our money. They want to "pay it off" in an act of pure lunacy that howls of their ignorance of the money they use everyday.


I should say thats how you fix "this". The next move is to stop the banks from expanding the money supply again.
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Old 10-03-2011, 08:26 PM
 
3,129 posts, read 5,623,508 times
Reputation: 1590
**** the fed!
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Old 10-03-2011, 08:28 PM
 
3,335 posts, read 2,701,183 times
Reputation: 921
Quote:
Originally Posted by gwynedd1 View Post
Its far less complicated than presented. Its a credit based money system, meaning all money is created as debt. All the FED does is monetize "da guberment" debt. This then becomes the basis for expansion under the fractional reserve system which is all in the form of bank loans. Thus the formula:

money supply = da guberment debt + business debt + consumer debt.

When sub prime debt collapsed, it demonetized the debts of the poor causing a lapse in money/debt creation. Who is going to take on debt now? So far the FED is simply monetizing more da guberment debt by purchasing it. However that only tends to lower the cost of borrowing in the private sector and does nothing to make banks loan money. All they do is loan it outside of the US in dollar carry trade. None of the money comes here.

However the average American has no clue how our money works. If two brothers Billy and Johny want to trade they could use their own IOU. However how many kid brothers are good for it? On the other hand they could trade freely with an ice cream cone IOU form their parents they could trust. If there were 10 IOUS, they would have lots of liquidity. If the tea party gets their way, we will have the parents coming up with those ice cream cones. Say good bye to the liquidity between the brothers and hello depression.

Balancing the budget is essentially saying we must rely on business and consumers to go into more debt. That sound good? Another QE is essentially saying banks should encourage this more. They are not going to do it because they know its not good. Its a dead donkey, and they made the bullet that killed it. I think they know.


The solution? "da gubermnet" should go into "debt" because its debt free money to business and consumers. This would replace the disappearance of sub prime debt/money. The debt will "pay" for a tax holiday that would inject cash directly into the goods and services economy. The national debt isn't debt, its mommy and daddy IOUs that create free liquidity. If we don't like owing China, then don't let them buy the debt or raise tariffs until they float their currency. Its easy to stop any side effects of Asian merchantilism as well.

The answer is a tax holiday, The End.

Yet 95% of everyone who reads this will be confused because they think the national debt isn't our money. They want to "pay it off" in an act of pure lunacy that howls of their ignorance of the money they use everyday.


I should say thats how you fix "this". The next move is to stop the banks from expanding the money supply again.
THe other solution.... DEFAULT!

Still looking into Paul's Gold standard stance...Unless its transitional i back to not voting.
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Old 10-03-2011, 10:09 PM
 
19,337 posts, read 16,932,211 times
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Quote:
Originally Posted by modeerf View Post
THe other solution.... DEFAULT!

Still looking into Paul's Gold standard stance...Unless its transitional i back to not voting.

Hi modeerf,

Defaulting in the US is a matter of law since the debt is owed in its own currency. They simply raise the debt ceiling and that's it. The euro is far different since in the Lisbon treaty there is much more separation between the ECB and any single European government. That is why Greece can default in euros. It is even a more abysmal situation than here. All euros are created through private banks. They do not monetize government debts the way the US does. Hard to believe there is something worse than the FED.
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Old 10-04-2011, 02:22 PM
 
48,508 posts, read 88,440,292 times
Reputation: 18187
Actaully the congress and this administration is relying on the FED since their policies have failed to do nayhting but make things worse. Sad
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Old 10-04-2011, 05:46 PM
 
3,398 posts, read 4,592,924 times
Reputation: 2411
Quote:
Originally Posted by modeerf View Post
Conspiracy? You don't think people plan when it comes to money and power?

You think that our election system is not rigged? That the American people are not easily manipulated by the media?

why all those commercials out there vying for our minds?

Awful waste of corporate dollars...

Goldman Sachs should quit spending millions on their pet politicians.
People are easily manipulated by the media, yes. I think it is how Obama got elected.
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Old 10-04-2011, 09:11 PM
 
3,335 posts, read 2,701,183 times
Reputation: 921
Quote:
Originally Posted by Nocontengencies View Post
People are easily manipulated by the media, yes. I think it is how Obama got elected.
You forgot the S... Selected.

We have to start facing the fact that we have no good choices in higher gov't.

I'm almost there, its so hard to believe we have been so duped.
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