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I don't know how you come to that conclusion. Everything the Fed has done since the crisis has averted a depression.
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.
You have no right to call ANYTHING gibberish, after posting such nonsense you just did. Just because you don't understand the issues, you'd be better served by listening and learning rather than being insulting to someone who actually does have a clue.
Louis T. McFadden, Chairman of the House Banking Committee, US House of Representatives, 1934, in his address to congress:
"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the mal-administration of that law by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it"
You have no right to call ANYTHING gibberish, after posting such nonsense you just did. Just because you don't understand the issues, you'd be better served by listening and learning rather than being insulting to someone who actually does have a clue.
Louis T. McFadden, Chairman of the House Banking Committee, US House of Representatives, 1934, in his address to congress:
"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the mal-administration of that law by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it"
Yeah, quoting some committee chairman from 1934 surely gives your view merit -- not.
debt certainly is a big part of the problem..the bigger part is spending us into debt
You cannot separate the two, because one controls the other.
The Federal Reserve has always been behind excessive government spending, since that is how it absconds with our wealth. The moneyed interests who control the Federal Reserve also control the Congress and the Executive branch which implements the policies that drive dept upward. And it's a simple matter to conclude that the only way to stop a disease like this is to kill the offending organism which is causing it.
So long as the Federal Reserve controls the monetary system, we will never correct the problems, because it is through those mechanisms to which the FED feeds itself.
Yeah, quoting some committee chairman from 1934 surely gives your view merit -- not.
Banking Committee Chairman ...
And what gives your views merit? Oh, let me guess .... federalreserve.com?
Here's a little more info for you to look into, in order to rectify the damage the public schools and the news media has inflicted upon you.
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States."
-Sen. Barry Goldwater
It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.” -Franklin Delano Roosevelt
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill." -Charles A. Lindbergh, Sr. , 1913
"Whoever controls the volume of money in any country is absolute master of all industry and commerce." -James A. Garfield, President of the United States
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance." -James Madison
“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.” -Abraham Lincoln
"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." -President Woodrow Wilson (SIGNER OF THE FEDERAL RESERVE ACT)
Is this better?
Last edited by GuyNTexas; 11-30-2011 at 08:51 AM..
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.
1) Wrong - Money is used as a medium of exhange, in final settlement of a debt, and as a ready store of value. Its different functions are associated with different empircal measures of the money supply. There is no single "correct" measure of the money supply: instead, there are several measures, classified along a spectrum or continuum between narrow and broad monetary aggregates. Coins and printed money are not debt free, they are printed and then back with notes (promises to pay) which are created. Each time it is printed, your savings is diluted (think stock split).
When too much debt is in the system and the Government decides to print , think Zimbabwe.
2. Its who owns the debt that matters which can be the FED, US institutions, citizens, and foreign. The unqualified nominal amount of debt is meaningless. Debt to self is largely meaningless unless of course its used as money. One of the fasted growing areas of our debt is to the FED which is at 1.7 trillion. It actually reduces real debt since it dilutes the rest of it. The debt isn't being increased to buy anything; its being used to create money. Its their incompetent or corrupt use of the liquidity that is the problem. Not a single tax payer was bailed out.
3) Wrong again - We still have to pay interest on the debt... I will say that paying interest to ourselves just makes the debt balance increase with a journal entry, but debt to bondholders, foreign entities, etc.. has to be paid. The interest is exponentially increasing and as the Fed loses the ability to control short term interest rates (see Europe 5% - 15% we are around 2%), the risk of default grows.
3. It does not all need to be paid back. It must not all be paid back, and to do so would destroy the money supply almost entirely.
3) Real collectible debt is backed by something called capital. These days though we let everyone use LEVERAGE of up to 100 to 1 ... that means $1 of asset, you can lever $100 in loans against it. This is s disaster... SEE MF GLOBAL BANKRUPTCY.. They bet the farm and exploded
4. The US trade deficit is the same issue. Even US treasury coins that are not created with the debt facade as "debt free" money still becomes "check book", zero interest debt when it leaves our shores(dollars are check book money and bonds are saving account money). The problem is when other countries like to use our money because it goes out but never comes back in. The real problem is that the US economy is now only a small part of the world economy. So we are now highly leveraged. Its the bonds and outstanding dollars that comprise the foreign debt which has all meaning; the nominal national debt has none.
4) Wrong - I would be more concerned that 12% of our Gross Domestic Product is now being "borrowed" by our Federal Government and spent to prop the GDP numbers up. When the cost of borrowing goes up (it will) this will explode.
The real problems are
* mortgage debt to GDP ratio WTF?? Problem here is median income in relation to home values... home value should never be more than 2-3x more than home value
* high land prices Huh? People with no jobs can't buy land, they need food
* foreign debt and shrinking share of world economy increasing dollar leverage Foreign debt? We are bailing out Europe as we speak
* dollar carry trade
* zero interest rate policy Agreed, this is going to explode in our faces
If you continue to whine about the national debt, you are listening to some brain dead main stream economic pundit provided for you as cover while in the real world they are field striping the country.
I suggest you read the book Leverage by Karl Denninger.
3) Real collectible debt is backed by something called capital. These days though we let everyone use LEVERAGE of up to 100 to 1 ... that means $1 of asset, you can lever $100 in loans against it. This is s disaster... SEE MF GLOBAL BANKRUPTCY.. They bet the farm and exploded
I suggest you read the book Leverage by Karl Denninger.
I'm with you in principle, but the real deal here is that events like MF-Global are designed schemes to produce the results they do ... not simply poorly operated financial ventures that failed through incompetence.
This holds true for the banking inequities that created the real estate crisis too. It was all carefully and skillfully created.
The KING of frauds exist in the derivatives end of this .... 1,000+ Trillion $ in derivatives is a conservative estimate.
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