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The debate hosts have not been giving Rand Paul much chance to attack the FED though.
The debate hosts are obvious pawns who keep their precious jobs by being good Quislings.
The press is the only protected class in the Constitution for a reason. It is suppose to be the bulwark protecting democracy, but enough money can easily control the media and just like any Oligarchy, the media is now just an appendage out speaking arm of the ultra-rich.
How has the National Debt been wiped by swapping it to the Treasury?
And so the to wipe the debt we have to give the banks more money?
Correct. It is a shell game. The Fed simply moves the Bank debt onto the backs of the working class. It is one of the "tools" available to Bernanke and the rest of the thrives are the Fed Reserve. He got away with it so now the other Central Banks are copying the same duplicitous trick in droves.
The rich get richer
The poor get poorer
In the morning
In the evening
Ain't we got fun!
Correct. It is a shell game. The Fed simply moves the Bank debt onto the backs of the working class. It is one of the "tools" available to Bernanke and the rest of the thrives are the Fed Reserve. He got away with it so now the other Central Banks are copying the same duplicitous trick in droves.
The rich get richer
The poor get poorer
In the morning
In the evening
Ain't we got fun!
Just another quarter point and the Fed will turn gays straight, turn dog people into cat people, and reunify Christianity into worldwide Catholicism.
Yeah I used to think the Fed did that. All it really does is move income from savers to borrowers.
Again how does the Fed stimulate anything by lowing the yields on money market accounts? Don't ordinary people have these? Don't state workers still have pensions that cannot meet targets with low yields? Doesn't my own mother have bond funds?
An another 1/4 isn't going to change my sentiment. Low interest rates allowed me to refinance. That lowed bank profits. I took the several hundred in savings and started paying off more debt sucking yet another couple of bills every month, accelerating the depressing effect as I eat into more more principle.
Of course once a nice little oligarchy mops up all the secrities, then I suppose it will be a great time to raise rates.
We have had low rates for over a decade. It doesn't do a damn thing in the aggregate.
Just another quarter point and the Fed will turn gays straight, turn dog people into cat people, and reunify Christianity into worldwide Catholicism.
Yeah I used to think the Fed did that. All it really does is move income from savers to borrowers.
Again how does the Fed stimulate anything by lowing the yields on money market accounts? Don't ordinary people have these? Don't state workers still have pensions that cannot meet targets with low yields? Doesn't my own mother have bond funds?
An another 1/4 isn't going to change my sentiment. Low interest rates allowed me to refinance. That lowed bank profits. I took the several hundred in savings and started paying off more debt sucking yet another couple of bills every month, accelerating the depressing effect as I eat into more more principle.
Of course once a nice little oligarchy mops up all the secrities, then I suppose it will be a great time to raise rates.
We have had low rates for over a decade. It doesn't do a damn thing in the aggregate.
Exactly. It does do one thing however. It makes the top .1 of 1% wealthy beyond imagination as the facts demonstrate. That is all the Feds have done.
Exactly. It does do one thing however. It makes the top .1 of 1% wealthy beyond imagination as the facts demonstrate. That is all the Feds have done.
I agree but not from the Federal reserve System primarily. It is a component. Most of the rape happens with the fiscal budget, inflationary paranoia , social security withholdings, and sales taxes. Congress printed up treasuries and handed it to bankers. Now if people really believe that money is just money in all contexts, then the Federal government gave them our money in the form of public debt so that they could loan it back to us. They didn't. Their main business plan was borrowing money at 1/4 percent and investing in Treasuries at 3%.
How has the National Debt been wiped by swapping it to the Treasury?
And so the to wipe the debt we have to give the banks more money?
Yes, in return for a like amount of debt paper.
The Treasuries that the Fed holds produce interest. 94% of that interest goes back to the Treasury. So it is if almost all of that debt doesn't exist from an interest pay back stand point. The debt itself still passively stands.
If more QE is done in the future, the Fed might end up with more Treasuries.
I agree but not from the Federal reserve System primarily. It is a component. Most of the rape happens with the fiscal budget, inflationary paranoia , social security withholdings, and sales taxes. Congress printed up treasuries and handed it to bankers. Now if people really believe that money is just money in all contexts, then the Federal government gave them our money in the form of public debt so that they could loan it back to us. They didn't. Their main business plan was borrowing money at 1/4 percent and investing in Treasuries at 3%.
Agreed. But the Government couldn't possibly find all of the spending without rates being at zero. The Feds printing press enables the massive transfer of wealth. The Feds (Bankers) are the enablers and the Government is the active conduit. Both are controlled by the to .1 of 1% and both are working for the benefit of the super-rich.
Agreed. But the Government couldn't possibly find all of the spending without rates being at zero. The Feds printing press enables the massive transfer of wealth. The Feds (Bankers) are the enablers and the Government is the active conduit. Both are controlled by the to .1 of 1% and both are working for the benefit of the super-rich.
The government could buy all it wants with Treasuries. Are ya telling me someone can't buy an RV because they only have 100k in treasuries? The FED is a shell game as you say, but I don't think you quite know just how much of one that it is. The only reason Federal Reserve Notes are "money" is because the government made a legal tender law. Why would people want zero yielding notes more than those that have yields? They are both paper notes produced by the government.
The government could buy all it wants with Treasuries. Are ya telling me someone can't buy an RV because they only have 100k in treasuries? The FED is a shell game as you say, but I don't think you quite know just how much of one that it is. The only reason Federal Reserve Notes are "money" is because the government made a legal tender law. Why would people want zero yielding notes more than those that have yields? They are both paper notes produced by the government.
The government still has to pay interest on the debt. If the government had to pay 6% on debt, (6% on $16 trillion would bring the deficit up another $trillion a year),it would find plenty of buying interest but lacking the ability to pay interest from revenue then it would have to start issuing debt to pay interest. At this point, the U.S. becomes a Banana Republic and it is a mere matter of time before buyers evaporate.
Zero interest rates is effectively a 100% tax on interest from savings which is an additional source of revenue for the government which allows this pyramid scheme to work a while longer.
The government still has to pay interest on the debt.
Why does it need to pay interest on the debt? Each round of QE gets closer to that reality that paying interest is at the discretion of the sovereign. . Its just like having an auction for a house. If the price isn't what the seller wants, they can place a bid. That anyone could buy it for less than what the seller wants is an illusion. Same with Treasuries. They set the rate to what they like. That does not even get into the idea that they could just start paying people in Treasury Notes.
Quote:
If the government had to pay 6% on debt, (6% on $16 trillion would bring the deficit up another $trillion a year),it would find plenty of buying interest but lacking the ability to pay interest from revenue then it would have to start issuing debt to pay interest. At this point, the U.S. becomes a Banana Republic and it is a mere matter of time before buyers evaporate.
Baloney. The FED can buy up all the Treasuries. Any resulting inflation would run into the AMT , or they could raise marginal taxes even more. Taxes shoot inflation in the head. Inflation is always the result of political dissolution.
Quote:
Zero interest rates is effectively a 100% tax on interest from savings which is an additional source of revenue for the government which allows this pyramid scheme to work a while longer.
Gold doesn't draw any interest at all. Are you suggesting people that buy and store gold are being ripped off because the government doesn't pay interest on it? Are you suggesting gold miners owe gold bugs money for diluting the supply? Should miners pay interest to gold bugs?
There is a reason why the stock market collapsed when the US government was running a surplus. Without constant deficits, a depression is nigh. Gold at least had gold mines that diluted the value of gold. Now there is only one thing that reliably dilutes the reserve, and that is deficits. Nothing is being "saved".
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