Posted on 12/27/2011 6:08:43 PM PST by Iam1ru1-2
Uh....ah....I do believe you’re correct.
You are confusing, 1) debt with deficit, and 2) Federal Debt with the Federal Reserve.
Got it.
1. There is no deficit spending, and no debt.
2. Federal spending, which increases debt, which calls for the printing of more money, has nothing to do with the Federal Reserve.
hand palm slaps the forehead. What was I thinking?
Dude, seriously. Very scary we been hijacked!
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+1
All we have is the “Good faith and credit” promise and the faith is all but gone so nothing much is left but credit and that is about dried up as well.
If this is the case, then why the deficit of 16 trillion?
The banks that borrowed from the Fed have repaid the Fed. The Treasury has borrowed from the world and not repaid their bonds. Clear?
It's not splitting hairs. Europe still has a banking crisis because the "safe" government bonds they own are in danger of default by deadbeat governments.
The dollars the Fed creates do have value. You have some in your wallet right now. And they didn't come from the taxpayer.
No, the money the Fed created did not come out of your paycheck. It did not increase the debt of the government.
Worth less compared to what? Over what time frame?
I'm no financial expert, but flooding the country with trillions of their "newly created money" did is not making the dollar worth less and less?
Trillions that were repaid? No.
And who got those trillions Todd?
Banks mostly.
There is deficit spending and debt. Both are way too big. Spending must be cut.
2. Federal spending, which increases debt, which calls for the printing of more money, has nothing to do with the Federal Reserve.
Federal spending does not call for the printing of more money, it calls for the borrowing of more money.
Government borrowing has nothing to do with the Fed, it's the responsibility of the Congress.
Got it.
I don't think you do.
What was I thinking?
You weren't.
Is it really your contention that there is no truth in the book The Creature from Jekyll Island?
Are you from the Flaherty conspiracy poo-pooist camp? Or is it belief in the purity of the FED just helps you sleep at night?
He has been attacking that book for a long time.
That book is worth reading 5 times over IMHO to let it sink in what is going on.
I'm sure there are a few true things in there. The huge errors more than make up for the few facts.
That GAO number is so stupid and useless...... This is what our taxes are blown on. These Gov't workers all making more than 100 thousand I am sure
No, it is not stupid and useless. Given that it totals more than GDP, it means that the Fed is effectively involved in transactions whose total is the total value of domestic goods and services. This is not just a little thing. We have gotten to the point where monetary/credit transactions executed by the Fed is bigger than real economic transactions. Since total financial transactions are some large multiple of Federal Reserve transactions, it means that the banking system that we are trying to bail out has become a behemoth. While many argue that it is necessary, others might rationally argue that maybe a smaller banking system would be ok.
1. The Fed is incapable of accomplishing its stated objectives.
2. It is a cartel operating against the public interest.
3. It is the supreme instrument of usury.
4. It generates our most unfair tax through inflation and bailouts.
5. It encourages war.
6. It destabilizes the economy.
7. It discourages private capital formation.
All false according to your math...Right?
No it doesn't.
This is not just a little thing. We have gotten to the point where monetary/credit transactions executed by the Fed is bigger than real economic transactions.
Total loans were about $1.2 trillion. At their peak.
While many argue that it is necessary, others might rationally argue that maybe a smaller banking system would be ok.
Banks have been shrinking their balance sheets.
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