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Not even close to the most elementary understanding of how the money multiplier works. It is a genuine measure of real value created by real economic activity... not a creation of money "of of thin air."
And as to this wacky nutburger abhorrence to "fiat money," the value of all money (to include gold and silver coins) is an arbitrary convention. Money was invented (originally in the form of electrum coinage) to make the value of labor more liquid than it was in a barter economy, thus removing economic friction and allowing the more efficient capture and exchange of that value.
But money has never been actually worth the value it represents since the Romans abandoned their silly experiment with the aes grave in the 4th century BC.
The value of an ounce of gold is no more or less imaginary than the value of a piece of paper currency. People just like shiny stuff.
Paper money transfers microbes.
Metal money kills microbes.
Lead makes people stupid; check out the decline and fall of the Roman Empire.
Today, we got stupid unhealthy people everywhere.
We are out numbered. Paper and digital money are a numbers game.
People are as much numbered down as they are dumbed down.
The meeting of two dissimilar metals causes currency.
I need to make a video going from, "You didn't Build That", to, "You Don't Own That".
No. You can blame Congress for that; for it was Congress that gave in to the banking lobby and emasculated the regulatory provisions under Glass-Steagall.
Allan Greenspan's achievement in the 90's was his shrewd undermining of aspects of Glass-Steagall, a depression era law designed to prevent a potentially dangerous concentration of capital in the hands of a single mega company. He and Citibank conspired to allow the bank and Travelers ( Insurance) Group to merge. This had the backing of the Treasury Secretary, Bob Rubin who made a ton of money off the deal post merger. Greenspan approved the merger on a temporary basis and then put a gun to the head of Congress.
The Gramm-Leach -Bliley Act (co-sponsored by three Republicans and eventually gained bipartisan support) followed in 1999 and moreso than anything contributed to what was to come in that it prevented government from regulating stuff like collateral debt obligations and credit default swaps.
Perhaps both houses were more preoccupied with Clinton's sex life than thinking this one through.
The 30 trillion in banker bailouts from the Federal Reserve should be enough to show that it should be seized control of and nationalized to finance wide scale infrastructure spending. Just imagine how much of that 30 trillion could be used to benefit the American people instead of bankers like Jamie Dimon.
Allan Greenspan's achievement in the 90's was his shrewd undermining of aspects of Glass-Steagall, a depression era law designed to prevent a potentially dangerous concentration of capital in the hands of a single mega company. He and Citibank conspired to allow the bank and Travelers ( Insurance) Group to merge. This had the backing of the Treasury Secretary, Bob Rubin who made a ton of money off the deal post merger. Greenspan approved the merger on a temporary basis and then put a gun to the head of Congress.
The Gramm-Leach -Bliley Act (co-sponsored by three Republicans and eventually gained bipartisan support) followed in 1999 and moreso than anything contributed to what was to come in that it prevented government from regulating stuff like collateral debt obligations and credit default swaps.
Perhaps both houses were more preoccupied with Clinton's sex life than thinking this one through.
Wasn't there a song once about "You got to accentuate the negative?"
Bankers create money out of thin air and loan it to you at interest.
You then have to pay the principle and interest back out of your work, blood, sweat, and tears.
This is nothing short of slavery.
Right now as we speak, the federal reserve (which is a privately owned corporation - owned by private central bankers), prints out of thin air $85 billion each month. They use this to purchase 'mortgage backed securities' and other bonds. Meanwhile the bankers pay themselves multi-million dollar bonuses.
You on the other hand must work much of your whole life to pay off your $300,000 mortgage.
This system is unsustainable and will collapse at some point.
Finally! A topic that conservatives and liberals alike can all agree on. Believe it or not, this was the crux of some of the more cool-headed people in the Tea Party and the Occupy movement.
Sorry, you have to start your argument with a factual position or the entire thing falls apart. "Bankers" do not create money out of thin air.
Sorry pknopp, you're dead wrong. Look up "fractional reserve banking" and see how it works. There are plenty of short youtube videos which explain it. Banks DO create money (debt) out of thin air.
On top of this, not a single person has been charged. We know that Countrywide was nothing but fraud so tell me, why hasn't Mozilo been charged with anything?
Because all he did was live up to an agreement Countrywide signed with HUD, which enabled Countrywide to accept "nontraditional credit" and other faulty qualificationsfrom low-income and/or high risk borrowers for loan approval because the GSEs (Fannie and Freddie) agreed to buy the high risk loans that Countrywide originated.
Quote:
"Underwriting Standards
Countrywide tends to follow the most flexible underwriting criteria permitted under GSE and FHA guidelines. Because Fannie Mae and Freddie Mac tend to give their best lenders access to the most flexible underwriting criteria, Countrywide benefits from its status as one of the largest originators of mortgage loans and one of the largest participants in the GSE programs.
When necessary—in cases where applicants have no established credit history, for example—Countrywide uses nontraditional credit, a practice accepted by the GSEs."
The 30 trillion in banker bailouts from the Federal Reserve should be enough to show that it should be seized control of and nationalized to finance wide scale infrastructure spending. Just imagine how much of that 30 trillion could be used to benefit the American people instead of bankers like Jamie Dimon.
I thought that was what the 700+ billon stimulus was for. Also look at the bailout of fanie and freddie that just goes on to bailout individual bad lonas.Its kind of fuuny i that what the consumers protection acts created actually do is protect people from theirselfs in preventing them from being allowed to make their own decisions;in the end.Large bank bialouts have return profit while bailout of individuals just is consumed national wealth with massive debt.
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