U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-15-2008, 11:27 PM
 
3,853 posts, read 11,846,239 times
Reputation: 2521

Advertisements

Quote:
Originally Posted by sterlinggirl View Post
Why would the government pay interest to borrow dollars that it can just print?
The government doesn't print the money. In 1913 we gave all power to control the money supply to a private corporation, the federal reserve. When we go in debt, we borrow money from the federal reserve at interest. The only thing that government does is make it law that you have to use that private bank's money. Most people think that the government owns the federal reserve system - we do not.


Right now, all your income taxes go to pay the interest on the debt. The rest of the government is financed through borrowing from the federal reserve. As we borrow more money this increases the money supply and hence we get inflation which devalues your dollar. That is why food, gasoline and everything else goes up 10%+ per annum. The best way to protect yourself is through the use of tax sheltered accounts like a roth ira and to buy gold or silver. It is no mistake that precious metals and agriculture have been some of the best investments of this decade!

This is why many people predict that the USD will fall into hyperinflation eventually. When that happens the government will just clear their books of all their liabilities - medicare, pensions, social security, you name it. Why do you think politicians aren't doing crap to fix the system?

Watch this video to understand more:

G Edward Griffin - Creature From Jekyll Island A Second Look at the Federal Reserve

Federal Reserve System - Wikipedia, the free encyclopedia

Last edited by killer2021; 07-15-2008 at 11:37 PM..
Reply With Quote Quick reply to this message

 
Old 07-16-2008, 05:45 AM
 
Location: St. Joseph Area
6,235 posts, read 8,629,772 times
Reputation: 3108
Quote:
Debt is a tool, used right it is constructive
How so?
Reply With Quote Quick reply to this message
 
Old 07-16-2008, 06:15 AM
 
5,090 posts, read 10,036,766 times
Reputation: 3961
Quote:
Originally Posted by sterlinggirl View Post
It only promises to pay dollars. There isn't a promise to give them anything of value.

So fire up the presses and give them dollars. I'd rather have a one time hit with some major inflation to clear out the excess than a lifetime of 50% taxes for our next generation. Since everything is pretty well shot to hell in the economy anyway, this would be one of the better times to do it.
Yep, All been done, before (and before, and before).

You are anticipating and leading ahead of the folks you are trying to track.

Money will stay "cheap" (low interest) with limited availability to the top end only (e.g. while interest rates are still low, presently far fewer working folks can get home loans). This will continue past the elections.

Inflation will continue to degrade the value of both debts and savings.

Some time after the New Year interest rates will start to rise in the name of stopping inflation.

A quote that is often attributed to Jefferson --

Quote:
If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.
And so our fate is to be homeless in our homeland.

While quoting old-timers, there is some Sioux Indian quote about the White Man's (essentially the banks and corporations) money being poison. I guess folks who have become homeless in their homeland before would understand this topic all too well.

Think they will leave us with a reservation?
Reply With Quote Quick reply to this message
 
Old 07-16-2008, 02:22 PM
 
3,553 posts, read 7,056,863 times
Reputation: 2324
akck wrote;
Quote:
A company does not buy a foreign company based on national debt, or trade deficit, or budget deficit
That's (partially) correct. But a falling dollar (which we've had for the last few years, make it particularly cheap (in their currency) for foreigners to purchase our (US) assets.

A couple of years back when GM fell below $15/share, either Boon Pickens or Carl Icahn made a strong run at it because he felt that GMAC was worth most of that number and the "break up" value of the rest made it worth more than $15/share. I haven't heard anything like that this go round though, maybe the value of the GMAC part has been hammered.

OTOH, GM is considered by many to be THE LEADER in developing "fuel cell"/"hydrogen" power technology for transportation. If Toyota swooped in and bought GM at today's fire sale prices that would be yet another technology (which I believe is THE WAY out of our current mess) that the US carmakers failed to (or in this case weren't able to) capitalize on.

golfgod
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top