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Old 02-15-2012, 03:04 PM
 
3,335 posts, read 2,702,551 times
Reputation: 921

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Quote:
Originally Posted by Mircea View Post
I don't believe anyone will see a budget surplus before the year 2040.



That would be one way of controlling Real Inflation.



All of the interest less operating costs are returned to the US Treasury. Operating costs pay for all those fancy graphs the Federal Reserve produces.

Budgeting...

Mircea



Credit has been part and parcel of economic systems since trading began.



All money is not debt. Money is simply a medium to expedite commerce. You can trade 50 chickens for a goat, or you can trade the equivalent amount of money for a goat, which is a tremendous advantage if you don't have 50 chickens.



The Federal Deposit Insurance Corporation only exists to protect private bank accounts to a specified limit.

Monetarily...

Mircea





You both missed the entire point.

Let's see what happens when a country like Ukraine drinks the Kool-Aid and sets up a "debt-free" monetary system.

Ukraine - inflation

That is what happens when you have, um, "debt-free" money. Note the rate of Real Inflation prior to 1996 and the introduction of the Hryvnia as debt based currency.

1988 1.72
1989 3.84
1990 16.34
1991 95.62= 485%

1992 1,761.26 = 1741%
1993 3,334.80 = 89%
1994 953.46
1995 415.81
1996 66.15
1997 18.07

Highlighted in RED is the world's record for Real Inflation in a single year.

So, how many of you still think, um, "debt-free" money is a good idea?

Inflating...

Mircea



Of course it can. Read the US Constitution.

Article I, Section 10: No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

We can reduce that to this for brevity:

Article I, Section 10: No State shall...coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;...

Those are prohibitions against the States. They are powers reserved expressly and solely for the federal government. States cannot coin Money, but the federal government can.

The only thing States may accept as legal tender are gold and silver, but the federal government can accept anything it wants. It could even accept Bronze like the Romans did.

Constitutionally...

Mircea
We are not Ukraine.
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Old 02-23-2012, 09:06 PM
 
998 posts, read 1,099,799 times
Reputation: 533
Wall Street Journal: Why we can not believe the Fed

A review of the Federal Reserve from 1986 to 2006 discovered that they missed with their forecast 100% of the time. Most of the time the Fed missed the forecast by 50% or more. And 50% of the time the Fed missed with their forecast by 100% or more.
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Old 03-06-2012, 07:01 PM
 
6,822 posts, read 5,623,377 times
Reputation: 3750
Quote:
Originally Posted by Grandpa Pipes View Post
Things people may not know about the FED..........

10 Things That Every American Should Know About The Federal Reserve
One organization that OWNS America. The most foolish thing American's could do is let the Government take control of THEIR currency. Who ever controls the money has the POWER. We've let this Government SELL us out.

All we have to look forward to now is HYPERINFLATION. Goodbye America. Hello Global Order.
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