Posted on 04/23/2008 5:53:14 AM PDT by Tolerance Sucks Rocks
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” -Thomas Jefferson
The Founding Fathers put Congress in control of the the U.S. monetary system. In 1913 Congress relinquished this awesome power and gave it to a private cartel with the passage of the Federal Reserve Act. For almost 100 years, Federal Reserve policy has swindled Americans out of unimaginable amounts of wealth; and it continues to this very day. It is the most appalling scam ever perpetrated on the American people, and most remain utterly unaware of its causes and consequences.
From Mike Whitney’s Message To Fed Chief Bernanke: “Enough With The Cuts, Already” at Information Clearing House:
“…in 2000, oil was $28 per barrel, the euro was $.87 on the dollar, gold was $274 per ounce, and the national debt was $5.9 trillion. Today, oil is a record $114 per barrel, the euro is nudging $1.60 on the dollar, gold is $945 per ounce, and the National Debt is $9 trillion. The country is presently engaged in a $2 trillion war in Iraq with no end in sight. The federal government has expanded over 30% …”
“The Federal Reserve has played a major role in America’s economic decline. Greenspan’s “weak dollar” policy pushed trillions of dollars of credit into the hands of people who had no realistic prospect of paying it back.”
“Fiat money inflations often bring on real estate booms followed by busts. These inflations are the common element in real estate cycles that span many countries and many centuries, and they put the lie to the hypothesis that bad lending practices are the culprit. Fraudulent money creation is the culprit, not faulty evaluation of the credit risks of borrowers.”
” The Fed’s monetary policies have triggered a run-up in commodities prices which is driving up the cost of everything from corn to copper…The media is blaming drought, high energy prices, and biofuels for the sudden rise in prices, but these are only secondary factors. Currency devaluation has played a bigger role than shortages or blight.”
“The Fed’s loose money policies have put the dollar at risk of losing its role as the world’s reserve currency. If the dollar falls from its perch, the empire will soon follow. The macroeconomic impact of Greenspan’s low interest rates will be seismic.” (emphasis added)
The 8 percent figure is very interesting. Thanks.
Deficit spending allows us to borrow money using the earnings of our children as collateral.
I believe the world is beginning to question whether our children will pay the debt, hence the falling dollar. Investors don’t want our dollars.
But here’s what I don’t understand, if people don’t trust our money, they would require a high interest rate on our Government debt (T-bills, etc.). Those interest rates are not high. Why?
America's economic strength came about because they were. Now evidence is mounting that they are getting scared, and are willing to toss the individual over the side through hyperinflation to save themselves from deflation. I'm not sure that's going to work.
On the topic of 8%:
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"For the 363 companies in the S&P that have pension plans, assumptions in 2006 averaged 8%. Let’s look at the chances of that being achieved.
"The average holdings of bonds and cash for all pension funds is about 28%, and on these assets returns can be expected to be no more than 5%. Higher yields, of course, are obtainable but they carry with them a risk of commensurate (or greater) loss.
"This means that the remaining 72% of assets – which are mostly in equities, either held directly or through vehicles such as hedge funds or private-equity investments – must earn 9.2% in order for the fund overall to achieve the postulated 8%. And that return must be delivered after all fees, which are now far higher than they have ever been.
"How realistic is this expectation? Let’s revisit some data I mentioned two years ago: During the 20th Century, the Dow advanced from 66 to 11,497. This gain, though it appears huge, shrinks to 5.3% when compounded annually.
"Think now about this century. For investors to merely match that 5.3% market-value gain, the Dow – recently below 13,000 – would need to close at about 2,000,000 on December 31, 2099. We are now eight years into this century, and we have racked up less than 2,000 of the 1,988,000 Dow points the market needed to travel in this hundred years to equal the 5.3% of the last.
"It’s amusing that commentators regularly hyperventilate at the prospect of the Dow crossing an even number of thousands, such as 14,000 or 15,000. If they keep reacting that way, a 5.3% annual gain for the century will mean they experience at least 1,986 seizures during the next 92 years. While anything is possible, does anyone really believe this is the most likely outcome?"
-- Warren Buffett
The soviet union had government experts running their monetary systems and THEIR economy and look where that got them.
Go back to DU you worthless commie.
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