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Those who loan money to the U.S. Government, do so because it is the safest investment on the planet. For that safety, they are willing to accept low returns.
So are you one of those who blame the federal reserve for the bad economy?
The Federal Reserve system. Commercial banks do not make productive loans. They make asset secured loans. Assets like housing do not create economic expansion when fractional reserve lending is applied to them. So most of our money produced does not go towards production. Fractional reserve lending(money creation) may work when its industrial capital but those loans are rare compared to the real estate market. We have a ponzi banking system built on land rent seeking(80% of all loans are mortgages). However since land is now financed, land speculation is just tax collecting for the banks and driving up all our prices at least 2 fold.
I am essentially a Georgist which is a pedigree and refinement of the Adam Smith, Ricardo theories.
I like nothing more then to have a fare tax system, where every single American and corporations pays its fare share of taxes!
What you want is a tax aimed at economic rents, like ground rents. This is especially true when they become financial assets. The reason is simple. Anything that is not taxed tends to become an interest payment to bankers.
So you may as well tax the ground value to keep it from going to banks. Then you can just drop all other taxes. No freeloaders. That is the root of all of it. You actually end up paying slightly less for the land and you get public revenue that rids you of other taxes.
great post. i try to simplify it for people and say, "we print money and give it to banks."
exactly! then they turn around and call it the free market! i have no issue with banks charging heavy interest rates, punitive fees, i don't even take issue with them gambling with our money.
i take issue with the fact that they get money from the fed at knockdown rates, they get bailouts and all their gambling is underwritten by the taxpayer
I am tired of seeing it posted so I am going to savagely attack this idiotic, OP ed favorite of junk economics.
1. The national debt is the money supply. The debt is the sum total of dollars that was created by the government. It prints money by running deficits because we use a double entry system where one debt = one credit. The rest of the money is created by bank loans, also a double entry system with a few exceptions like coins which are debt free.
If one reads law, the preceding statement is wholly absurd.
See Art. 1, Sec. 8, USCON, the Coinage Act of 1792, and Title 12 USC Sec. 411.
In layman's terms, the national debt, denominated in dollars, is NOT the money supply. The circulating medium, "dollar bills", are IOUs denominated in dollars. However, those notes were repudiated in 1933 (See: House Joint Resolution 192, June 1933). They have no par value. Since they are obligations of the U.S., and interest bearing, they ARE part of the national debt. Thus they cannot pay down the debt, being debt. A minus added to a minus is more minus.
Pursuant to Title 12 USC Sec. 411, new "dollar bills" are authorized by more debt. And as they are obligations of the U.S. government, they are "legal tender" in lieu of lawful money (gold / silver coin) upon the government (obligated party on said notes). The reason why said notes are also "legal tender" on the private sector is FICA. Each enumerated participant is a "contributor" (equally liable) on the public debt, hence the "dollar bill" is their note as well.
The outstanding public debt, in excess of 15 trillion dollars, computes to a sum of 750 billion ounces of gold stamped into coin (Pursuant to the Coinage Act of 1792, et seq.). Fort Knox depository holds 147.4 million ounces of gold. . . an insufficient amount. World wide supply of gold is estimated at 5.3 billion ounces. Which leads one to the next question : WHAT did Congress borrow to accrue the public debt?
Money Reference:
Article 1, Section 8. U.S. Constitution.
The Congress shall have Power
...To borrow Money on the credit of the United States;
...To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
Article 1, Section 10. U.S. Constitution
No State shall ... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any ... Law impairing the Obligation of Contracts, ...
Note: only gold and silver coin PAY DEBT. And if Congress had the power to create money, it wouldn't need the power to borrow it. Congress can only coin money (stamp bullion).
TITLE 12, USC sec. 411. Issuance to reserve banks; nature of obligation; redemption
" Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in LAWFUL MONEY on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank."
The dollar bill (FRN) is an IOU, issued on the authority of Congress to BORROW money.
Ahem - where's the lawful money lent to the Congress?
LAWFUL MONEY - "The terms 'lawful money' and 'lawful money of the United States' shall be construed to mean gold or silver coin of the United States..."
Title 12 United States Code, Sec. 152.
"Dollars, or units; each to be of the value of a Spanish milled as the same is now current, and to contain three hundred and seventy-one grains and four-sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard, silver."
--- Sec. 9, Coinage Act of 1792, January 1792
Approximately 0.77 ounces of pure silver (plus alloy) comprises a unit dollar coin.
"Eagles each to be of the value of ten dollars or units, and to contain two hundred and forty-seven grains and four eighths of a grain of pure, or two hundred and seventy grains of standard gold."
--- Sec. 9, Coinage Act of 1792, January 1792
A one ounce gold coin (double eagle) is equivalent to 20 unit dollars (silver).
" Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."
Thanks to FICA, all YOUR LABOR and PROPERTY "back" the worthless notes emitted by Congress. Did you knowingly, willingly and intentionally consent to that obligation?
In case it was too vague, the U.S. government went BANKRUPT in 1933. And due to that catastrophe, the government went into a STATE OF EMERGENCY that has lasted over 78 years.
Senate Report 93-549
War and Emergency Powers Acts
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years (as of the report 1933-1973), freedoms and governmental procedures guaranteed by the Constitution have, in varying degrees, been abridged by laws brought into force by states of national emergency."
Now you know how and why the U.S. Congress and the administration IGNORE the U.S. Constitution and its limitations regarding gold and silver coin since 1933. It has been due to a perpetual "temporary" State of Emergency.
That 313 million Americans are ignorant of these facts is a tribute to the world's greatest propaganda ministry.
And by that ignorance, we are ruled and governed, helpless before the miscreants who call themselves public servants, but who serve the interests of the creditor and his fiduciary agent, the Federal Reserve corporation.
Title 22 USC Sec. 286(a)(d) Compensation for services
(1) No person shall be entitled to receive any salary or other compensation from the United States for services as a Governor, executive director, councillor, alternate, or associate.
NOW YOU KNOW WHO DOES NOT PAY TIM GEITHNER, sec'y of treasury, U.S. governor of the IMF, etc.
He is paid by "the Fund", whose fiduciary agent is the Federal Reserve Corporation.
(!)
This has been going on since 1933... when the U.S. government went bankrupt and was taken over by the Creditor. Since that year, no American has been able to "pay debt" because there has been no lawful money in circulation (FDR criminalized the ownership of lawful money). And those who do not "pay debt" are bankrupts, exercising a privilege subject to the Federal government, and must pay a tax for that privilege.
[The rest of the story...]
Last edited by jetgraphics; 11-30-2011 at 01:28 AM..
dont know, one thing I know the fed is the one screwing everything up!! over and over!!
I don't know how you come to that conclusion. Everything the Fed has done since the crisis has averted a depression.
Quote:
Originally Posted by gwynedd1
The Federal Reserve system. Commercial banks do not make productive loans. They make asset secured loans. Assets like housing do not create economic expansion when fractional reserve lending is applied to them.
That's complete gibberish. Money lent to build houses employee real people who are paid in real money and spend that money. That leads to rising GDP.
If one reads law, the preceding statement is wholly absurd.
See Art. 1, Sec. 8, USCON, the Coinage Act of 1792, and Title 12 USC Sec. 411.
In layman's terms, the national debt, denominated in dollars, is NOT the money supply. The circulating medium, "dollar bills", are IOUs denominated in dollars. However, those notes were repudiated in 1933 (See: House Joint Resolution 192, June 1933). They have no par value. Since they are obligations of the U.S., and interest bearing, they ARE part of the national debt. Thus they cannot pay down the debt, being debt. A minus added to a minus is more minus.
Pursuant to Title 12 USC Sec. 411, new "dollar bills" are authorized by more debt. And as they are obligations of the U.S. government, they are "legal tender" in lieu of lawful money (gold / silver coin) upon the government (obligated party on said notes). The reason why said notes are also "legal tender" on the private sector is FICA. Each enumerated participant is a "contributor" (equally liable) on the public debt, hence the "dollar bill" is their note as well.
The outstanding public debt, in excess of 15 trillion dollars, computes to a sum of 750 billion ounces of gold stamped into coin (Pursuant to the Coinage Act of 1792, et seq.). Fort Knox depository holds 147.4 million ounces of gold. . . an insufficient amount. World wide supply of gold is estimated at 5.3 billion ounces. Which leads one to the next question : WHAT did Congress borrow to accrue the public debt?
Money Reference:
Article 1, Section 8. U.S. Constitution.
The Congress shall have Power
...To borrow Money on the credit of the United States;
...To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
Article 1, Section 10. U.S. Constitution
No State shall ... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any ... Law impairing the Obligation of Contracts, ...
Note: only gold and silver coin PAY DEBT. And if Congress had the power to create money, it wouldn't need the power to borrow it. Congress can only coin money (stamp bullion).
TITLE 12, USC sec. 411. Issuance to reserve banks; nature of obligation; redemption
" Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in LAWFUL MONEY on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank."
The dollar bill (FRN) is an IOU, issued on the authority of Congress to BORROW money.
Ahem - where's the lawful money lent to the Congress?
LAWFUL MONEY - "The terms 'lawful money' and 'lawful money of the United States' shall be construed to mean gold or silver coin of the United States..."
Title 12 United States Code, Sec. 152.
"Dollars, or units; each to be of the value of a Spanish milled as the same is now current, and to contain three hundred and seventy-one grains and four-sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard, silver."
--- Sec. 9, Coinage Act of 1792, January 1792
Approximately 0.77 ounces of pure silver (plus alloy) comprises a unit dollar coin.
"Eagles each to be of the value of ten dollars or units, and to contain two hundred and forty-seven grains and four eighths of a grain of pure, or two hundred and seventy grains of standard gold."
--- Sec. 9, Coinage Act of 1792, January 1792
A one ounce gold coin (double eagle) is equivalent to 20 unit dollars (silver).
" Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."
Thanks to FICA, all YOUR LABOR and PROPERTY "back" the worthless notes emitted by Congress. Did you knowingly, willingly and intentionally consent to that obligation?
In case it was too vague, the U.S. government went BANKRUPT in 1933. And due to that catastrophe, the government went into a STATE OF EMERGENCY that has lasted over 78 years.
Senate Report 93-549
War and Emergency Powers Acts
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years (as of the report 1933-1973), freedoms and governmental procedures guaranteed by the Constitution have, in varying degrees, been abridged by laws brought into force by states of national emergency."
Now you know how and why the U.S. Congress and the administration IGNORE the U.S. Constitution and its limitations regarding gold and silver coin since 1933. It has been due to a perpetual "temporary" State of Emergency.
That 313 million Americans are ignorant of these facts is a tribute to the world's greatest propaganda ministry.
And by that ignorance, we are ruled and governed, helpless before the miscreants who call themselves public servants, but who serve the interests of the creditor and his fiduciary agent, the Federal Reserve corporation.
Title 22 USC Sec. 286(a)(d) Compensation for services
(1) No person shall be entitled to receive any salary or other compensation from the United States for services as a Governor, executive director, councillor, alternate, or associate.
NOW YOU KNOW WHO DOES NOT PAY TIM GEITHNER, sec'y of treasury, U.S. governor of the IMF, etc.
He is paid by "the Fund", whose fiduciary agent is the Federal Reserve Corporation.
(!)
This has been going on since 1933... when the U.S. government went bankrupt and was taken over by the Creditor. Since that year, no American has been able to "pay debt" because there has been no lawful money in circulation (FDR criminalized the ownership of lawful money). And those who do not "pay debt" are bankrupts, exercising a privilege subject to the Federal government, and must pay a tax for that privilege.
[The rest of the story...]
This is an EXCELLENT post !
I would only make one small correction ... lawful money may have been outlawed in 1933 ... but the implementation of that took more than 30 years to complete.
Right up until 1963-64, "Federal Reserve Notes" circulated along side lawful money, with the last "Silver Certificate" having an issue date of 1957. Furthermore, the 1 to 1 exchange of paper dollar to silver dollar was honored by the banks throughout the 1930's thru the 1960's.
And though most people don't know this, President Kennedy issued Executive Order 11110 in early 1963 which reestablished lawful money in the United States, with at least 4 Billion Dollars worth of United States Notes, backed by Silver, issued and put into circulation by the US Treasury in denominations $2 and $5 ... with $10 and $20 being printed though not yet put into circulation at the time of his assassination in November 1963. (No Coincidence). And the last United States Note was issued in 1966 with the denomination of $100.
What's equally interesting is that there has been no repeal of JFK's EO 11110 to this day, meaning the US Treasury is simply violating the law overtly.
And, there was never a government confiscation of Silver coins as did occur with gold. Silver coins were removed from circulation privately by savvy collectors who understood what was occurring with the currency, weeding through and removing the coins with silver content over the years, or so the story goes ..... however, I believe a very large percentage of it was indeed removed by the banks themselves.
And, in fact, these coins can still be used as legal tender, though you'd be crazy to do so since they are worth upwards of 35 times their face value.
Last edited by GuyNTexas; 11-30-2011 at 08:22 AM..
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