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well money does not come from thin air it comes from paper pulp
Money and currency are two very, very different things.
We have a $14T economy. less than $900B of that is actual currency.
Quote:
Originally Posted by KRAMERCAT
America, wake up! We are controlled by private bankers who make their fortunes creating money out of thin air, and then lending it to us with interest. We are the greatist nation in the world, aren't we? Why are we afraid of a few super-rich bankers? We should print our OWN money, and tell the private bankers to take a hike!
What is your solution then? How do you propose we adequately grow the monetary base ahead of inflation in the absence of the current system? I look forward to seeing your logic. As a rule, know we need roughly 3% growth in monetary base every year simply to keep inflation in check.
There is absolutely no oversight by our government as to how much the Fed is creating, and where the Fed is sending, US dollars. They are at liberty to create as many dollars as they care to, and send it wherever they want to. If our printing press were under the control of the US government, it would be accountable to our governmental agencies.
True, but that's a separate issue. I was addressing the OP's suggestion that the US government is paying huge sums of money to private banks in interest on the national debt. That part is not really true.
And as I said before, giving the printing press directly to Congress would be even more disastrous as congresspersons would have even more power to buy votes (Or, to boost the money supply right before elections to trick people into thinking everything is going great.)
What is your solution then? How do you propose we adequately grow the monetary base ahead of inflation in the absence of the current system? I look forward to seeing your logic. As a rule, know we need roughly 3% growth in monetary base every year simply to keep inflation in check.
one idea i've heard is to distribute it to citizens in the form of a guaranteed national income, or a "national dividend", instead of giving it to bankers to loan out.
"THE FED" isn't federal... it's corporate banks. I'll search a list for you... i think there are 8 that form the "FED"... they picked that name for obvious reasons.
The cash we use is not the Federal Governments. It is the FED banks. It say so on them... Federal Reserve Notes.
Not if you are like me and thousands of others who hold Treasury notes.
Which brings us to:
Ah, how else is the Fed going to pay me the interest on the T bills that I invested in, or do you think that I invest in treasuries out of the goodness of my heart and as a patriotic duty???
Money and currency are two very, very different things.
It's pointless. No matter how many times one tries to explain it, they just can't grasp the concepts.
Quote:
Originally Posted by hnsq
We have a $14T economy. less than $900B of that is actual currency.
Yes and I wouldn't even attempt to determine the value of assets which probably exceeds several $Quadrillion.
Quote:
Originally Posted by hnsq
What is your solution then?
They have none. They've been brainwashed to scream "Ron Paul-Fed-Gold Standard" until they start frothing at the mouth and fall over backwards.
Quote:
Originally Posted by hnsq
How do you propose we adequately grow the monetary base ahead of inflation in the absence of the current system?
Oh, please, stop it already. That requires thinking and more than just the thin veneer of superficial internet understanding of economics, monetary systems, finance and banking in order to form a cogent answer.
You dodged the issue, as I knew you would.
I guess the idiot web-site you use doesn't have pictures so you can understand.
The US does print its own money. It's called the US Dollar, and it does control its own monetary policy.
There is absolutely nothing the central bank can do that the US Congress cannot undo. central bank lowers interest rates, Congress can raise taxes or cut spending or both and take other actions as well to negate the lower interest rates. If the central bank raises interest rates, Congress can lower taxes, increase spending or both and take other actions as well to negate the effect of higher interest rates, too. Are you going to explain what would happen to your economy and your life-style or are you going to dodge the issue again? You do create your own currency. It's called the US Dollar, and yes, you would still need to borrow money. When you were on the gold standard, you borrowed money then as well.
Only the US Treasury Department creates currency. The central bank creates credit. There's a difference which you don't appear to comprehend.
All money is lent with interest, even on the gold standard. Even on a gold and silver standard. Interest is the cost of borrowing. You seem to be totally oblivious to the fact that loans require administration, someone to prepare loan documents, supervise that, plus account for the money and supervise that, etc etc. Those are administrative costs, so gold standard or not, no bank could loan money without charging interest, if for no other reason than to recover the cost of administering the loan and accounting for it. I would draw you pictures so that you could understand but I'm not a very good artist. Here's a guy that doesn't have any money
And so he and his wife check their bank book and see that they are broke and in need of a loan This is the bank they go to Here's a loan officer
and then here's some people who just completed a loan deal
This is what the loan check looks like And here's some happy people who just got their loan check cashed Here's a helicopter following the happy people home just in case they're really terrorists.
The U.S. government does not issue U.S. currency - the Federal Reserve does.
The Federal Reserve is a private bank owned and operated for profit by a very powerful group of elite international bankers.
If you will pull a dollar bill out and take a look at it, you will notice that it says "Federal Reserve Note" at the top.
It belongs to the Federal Reserve.
The U.S. government cannot simply go out and create new money whenever it wants under our current system.
Instead, it must get it from the Federal Reserve.
So, when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes.
The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).
The whole Federal Reserve System was designed to slowly drain the massive wealth of the American people and transfer it to the elite international bankers.
It is a game that is designed so that the U.S. government cannot win. As soon as they create more money by borrowing it, the U.S. government owes more than what was created because of interest.
If you owe more money than ever was created you can never pay it back.
That means perpetual debt for as long as the system exists.
It is a system designed to force the U.S. government into ever-increasing amounts of debt because there is no escape.
We could solve this problem by shutting down the Federal Reserve and restoring the power to issue U.S. currency to the U.S. Congress (which is what the U.S. Constitution calls for). But the politicians in Washington D.C. are not about to do that.
So unless you are willing to fundamentally change the current system, you might as well quit complaining about the U.S. national debt because it is now mathematically impossible to pay it off.
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