WTF Is "$600M Quantitative Easing"? [Archive] - The Diamond David Lee Roth Army

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GAR

11-12-2010, 02:53 PM

On Wednesday, November 3, 2010, the U.S. Federal Reserve announced that it will print $600 BILLION to stimulate the U.S. economy. That announcement was a bald-faced lie.

The Fed would probably have to print up far MORE than that amount to keep the U.S. economy from imploding .. so prepare for double-digit inflation NOW>

http://4.bp.blogspot.com/_34ASFH9K-sY/THvXeBVWhjI/AAAAAAAABsQ/b7zNm6qfOwQ/s1600/bernanke+iceberg.jpg

The confidence that the market has placed in Mr. Bernanke is entirely misguided. I think anyone who really believes that he will print ONLY $600 BILLION in this second round of "quantitative easing" should have his head examined.

Some estimate that he would have to print FIVE TIMES that much; closer to $3 TRILLION to make any discernable difference.

http://www.cristyli.com/wp-content/uploads/2010/01/Democrats-Ready-to-Follow-Obama-over-the-Cliff.jpg

Look: It's clear that Obama & Company want to be re-elected despite the public's great displeasure. It's also clear that they must re-invigorate the Democratic party despite the public's unfavorable opinion of Congress's actions these last 2 years. But if they want to accomplish those goals, they must first stimulate the economy.

Obama's big problem: The midterm elections have now GUARANTEED that Congress will NOT approve further stimulus spending. To the contrary: The leadership of the new Congress is committed to CUTTING the federal budget in every way they can.

That leaves the White House with just one, single, solitary tool for stimulating the economy and its a DANGEROUS one: The ONLY way left is to demand that the Federal Reserve take up the slack for the U.S. Congress; kick the printing presses into overdrive and flood the world with trillions of newly created U.S. dollars.

http://www.simoleonsense.com/wp-content/uploads/2008/12/bernanke-qe-cartoon.png

If any other Fed Chairman were at the helm they'd tell Obama to go get fucked. There's no way that Bill Martin (Fed Chairman under Eisenhower and Kennedy), Paul Volcker (under Carter and Reagan) or even Alan Greenspan would have caved into this bullshit idea from Nazi Germany that printing our way out works

I said this back on DDLR this would happen and some here said "shuttup racist" well get ready - here he comes now. He's turning into a Chocolate Jimmy Carter before your very eyes, so fuck you! I TOLD you fucking so didn't I!

But Bernanke? Oh he'll hold the hard line on the presses right..? Heck no! He's the man who virtually INVENTED money printing in modern America.

This is precisely why I now see massive new EXTREME volatility; and off-the-charts profit opportunities in every investment market you can name: Stocks. Bonds. Currencies. Precious metals. Oil and select commodities. And more, some will make money and you'll hear about fantastic new wealth and gains, but most will lose.

http://img684.imageshack.us/i/debtfool.pnghttp://img684.imageshack.us/img684/1285/debtfool.png

Why? Because to take gains from some point, causes losses upon other points and behind these "points" on paper are real people with real money at stake. You just don't create something from nothing, that's the law of physics: nature does not tolerate a vaccuum and alot of people will be hurt in the process.

So that's why I believe that this extreme volatility will present us with many of the greatest losses in generations despite some - very very few - of these "wonderful profit opportunities in generations" you're about to be seeing these next 2 years.

http://img684.imageshack.us/i/debtfool.png/

GAR

11-12-2010, 02:57 PM

http://en.wikipedia.org/wiki/Quantitative_easing

Quantitative easing (QE) is a monetary policy (http://en.wikipedia.org/wiki/Monetary_policy) used by some central banks (http://en.wikipedia.org/wiki/Central_banks) to increase the supply of money (http://en.wikipedia.org/wiki/Supply_of_money) by increasing the excess reserves of the banking system, generally through buying of the central government's own bonds to stabilize or raise their prices and thereby lower long-term interest rates. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate (http://en.wikipedia.org/wiki/Bank_rate), discount rate (http://en.wikipedia.org/wiki/Discount_rate) and/or interbank interest rate (http://en.wikipedia.org/wiki/Interbank_rate) are either at, or close to, zero (http://en.wikipedia.org/wiki/Zero_interest_rate_policy). It has been termed the electronic equivalent of simply printing legal tender.[1] (http://en.wikipedia.org/wiki/Quantitative_easing#cite_note-0)

 A central bank implements quantitative easing by first crediting its own account with money it creates ex nihilo (http://en.wikipedia.org/wiki/Ex_nihilo) ("out of nothing").[2] (http://en.wikipedia.org/wiki/Quantitative_easing#cite_note-bbcnews-1) All fiat money (http://en.wikipedia.org/wiki/Fiat_money) is created out of nothing: out of thin air. It is, however, backed by all - the sum total of - the underlying value systems in an economy, namely sound governance, sound economic policies, sound monetary policies, sound industrial policies, sound commercial policies, etc. Annual inflation above the central bank´s inflation target indicates the excess of fiat money created in the banking system. The central bank then purchases financial assets, including government bonds (http://en.wikipedia.org/wiki/Government_bond), agency debt (http://en.wikipedia.org/wiki/Agency_debt), mortgage-backed securities (http://en.wikipedia.org/wiki/Mortgage-backed_securities) and corporate bonds (http://en.wikipedia.org/wiki/Corporate_bond), from banks (http://en.wikipedia.org/wiki/Bank) and other financial institutions (http://en.wikipedia.org/wiki/Financial_institution) in a process referred to as open market operations (http://en.wikipedia.org/wiki/Open_market_operations).

The purchases, by way of account deposits, give banks the excess reserves required for them to create new money, and thus hopefully induce a stimulation of the economy, by the process of deposit multiplication (http://en.wikipedia.org/wiki/Fractional-reserve_banking#Money_creation) from increased lending in the fractional reserve banking system.
Risks include the policy being more effective than intended or the risk of not being effective enough, if banks opt simply to sit on the additional cash in order to increase their capital reserves in a climate of increasing defaults in their present loan (http://en.wikipedia.org/wiki/Loan) portfolio.[2] (http://en.wikipedia.org/wiki/Quantitative_easing#cite_note-bbcnews-1)

"Quantitative" refers to the fact that a specific quantity of money is being created; "easing" refers to reducing the pressure on banks.[3] (http://en.wikipedia.org/wiki/Quantitative_easing#cite_note-guardiannews-2) However, another explanation is that the name comes from the Japanese-language expression for "stimulatory monetary policy", which uses the term "easing".[4] (http://en.wikipedia.org/wiki/Quantitative_easing#cite_note-voutsinas-3) Quantitative easing is sometimes colloquially described as "printing money" although in reality the money is simply shifted from member bank dollar deposits to financial instruments.[5] (http://en.wikipedia.org/wiki/Quantitative_easing#cite_note-4)

Examples of economies where this policy has been used include Japan (http://en.wikipedia.org/wiki/Japan) during the early 2000s (http://en.wikipedia.org/wiki/Lost_Decade_%28Japan%29), and the United States (http://en.wikipedia.org/wiki/United_States), the United Kingdom (http://en.wikipedia.org/wiki/United_Kingdom) and the Eurozone (http://en.wikipedia.org/wiki/Eurozone) during the global financial crisis of 2007–the present (http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010), since the programme is suitable for economies where the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

Kristy

11-12-2010, 03:01 PM

*SIGH*

So GAR is once again typing any relative news item from his paranoia bunker he can muster up until his medication kicks in?

*logs off*

GAR

11-12-2010, 03:20 PM

Pull what's left of that SSI check out of the bank, Kristy.. shits' gonna hit after first-quarter Jan retail report!

RUN do it now, don't wait for January!

Nitro Express

11-12-2010, 05:09 PM

Nobody in their right mind is holding government paper long-term. You would have to be crazy to buy 30 year US bonds today. As far as the short-term goes, nobody knows. Bernanke is just playing out the clock because it's all he can do. If he raises rates he will worsen the economy and be out of a job. If he keeps rates at zero and prints money, he buys some time.

The smart people are getting out of long-term dollars and are running for commodities, agricultural land, and moving their money around to various foreign currencies. The problem is nobody wants to hold paper long-term. Maybe the world's franctional reserve banking system has gone defunct. If the US Dollar crashes it will take the Euro and Yen down with it. Nobody trusts the Chinese so nobody is going to be parking money over there either. So anyone with any real money are buying up water rights and food producing land. This is one reason Brazil's economy is on the rebound. Brazil has 18% of the world's potable water and people are buying those resources. We are going back to the basics because the writing is on the wall. People would rather have water and banannas than paper.

Nitro Express

11-12-2010, 05:13 PM

What we are going to see is rampant inflation on food prices. Other prices may stay the same. Cotton and food prices are through the roof, so clothing and food will be expensive. What really determines the fate of the dollar is the people willing to accept it. What they are willing to trade for that dollar. Nobody knows when it will go worthless or what is really going to happen.

GAR

11-12-2010, 06:42 PM

What we are going to see is rampant inflation on food prices.

Granted I live in the most expensive side of town, I'll post a pic of the meat section at Ralphs and probably earn some responses like "why would anyone live in LA" because right now BEEF is astro-fuckin'-nomical.

You won't believe it, inflations' happening right now okay. It's on, the deflation of my dollar and increases in prices for grub equal inflation.. and on top of that Congress thinks they did such a good job, they want to expire taxbreaks.

GAR

11-12-2010, 07:10 PM

Oh you'll hear talk of curfews again, gas odd/even fueling days, Martial Law plans.. it's gonna be 1979 all over again.

It's like Ron Paul says, "how many times can you bail the US dollar out from malinvestment?"

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Of course things seemed way worse two years ago when this discussion was being held - but that was an uproarious figure of $300 billion?

Last week's print-fest was twice that, so what have the Republicans said about this.. NOthing.

That's why there's a growing validity in Tea Party gatherings.. it's all about taking tax dollars to service debt purchased because congress cannot balance it's budget.

Nitro Express

11-12-2010, 08:52 PM

Granted I live in the most expensive side of town, I'll post a pic of the meat section at Ralphs and probably earn some responses like "why would anyone live in LA" because right now BEEF is astro-fuckin'-nomical.

You won't believe it, inflations' happening right now okay. It's on, the deflation of my dollar and increases in prices for grub equal inflation.. and on top of that Congress thinks they did such a good job, they want to expire taxbreaks.

I'm on the other side of the equation. I own the cows.

Nitro Express

11-12-2010, 08:57 PM

GAR

11-12-2010, 09:56 PM

I've had this experience with the Koreans that bring shit over here to the US for sale - come to find that the one builds this "thing" and needs supplies locally - so they do a trade. Finished goods, they talk it out and find a value, then swap stuff and both walk away agreeing they each got a 1:1 ratio value in the deal.

Then the guy loads his container, gets into LA then starts running phone on it.

Where there's goods, like you got grazing out back there, there's trade and where there's not, there's salesmen. I have no doubt that when currencies collide, we'll be back to Colonial trading days such as my Korean dude still does back home.. but people who cannot create the urgency to buy, and have nothing for trade are going to be FUCKED without a job.

Seshmeister

11-12-2010, 10:12 PM

Look. There is always going to be a free market. If people decide the no longer want dollars they will trade something else. What happened is currencies that once had the reputation people trusted got hijacked and central banks printed money and traded it based on the reputation until they ruined it. Simple as that. We've ran on that hype for decade and now the party is over. The system is breaking down. Worldwide. Nobody knows where it's going to go. Who really holds the power is the people themselves. We are who decide what something is worth, not the banks. It's demand and we are the demand.

Absolutely.

I never read the original post but if it's about some Obama economic hidden agenda then it's just wrong. The politicians in the West are running about like headless chickens the moment and it wouldn't matter who was in power they would all be doing the same thing, i.e. whatever they are told to by the economists who aren't sure themselves.

Pretending this is anything to do with Obama or 'socialism' or reforming healthcare is just childish nonsense in the same way that your politicians used to spend half their time ranting on about irrelevant crap like gay marriage.

Scary times.

GAR

11-12-2010, 10:34 PM

I never read the original post but if it's about some Obama economic hidden agenda then it's just wrong.

In a nutshell: Using vague language that common people (like me) do NOT understand (I have to wiki shit everyday to follow this crap), the Fed Reserve's Bernanke has announced we're going to print $600 billion US dollars to:

- buy fuciking US Treasury Bonds
- from the very banks that broke us,
- who must first obtain the bonds FROM the Treasury,
- which then go onto the Slush fund shelves and filing cabinets at Social Security.

Except that 2 years ago the figure floating at the time was 300 and today it's TWICE that amount.

GAR

11-12-2010, 10:39 PM

Why can't government do it's job and balance the budget? Nobody sent them to DC to whip out this grand agenda, thinking they were going to ignore the basic order of business.

THAT is why the Democratic party imploded.

As misguided as the Dems are, you can't ignore the fact they were inventive. I expect the Republicans to counter that with similar creativity. It's so frustrating - it's like watching a crime show where the Dems are ALWAYS the fucking thieves, and the Republicans the lazy cops that do no good leaving the whole town to get shot up by Mexicans. It's fucked up!

Nitro Express

11-13-2010, 12:57 AM

My degree is in finance and what I learned studying it and working in the finance industry is it's made esoteric on purpose. They want to confuse you. In actuality finance is simple as hell if you know what's behind the magician tricks. It's all about knowing the tricks and being connected. Any idiot can be an investment banker.

Ok here's the lesson:

Derivatives: Simply buying an asset on credit and reselling the debt to another party. Then the next party takes out another loan using the debt purchased as collateral on the loan. So basically it's using purchased debt as an asset (assets=liabilities+owner's equity) to buy more on credit and then sell it. It's a snowball effect and creates bubbles that pop.

Credit Default Swap: It's a bet. It's two or more parties betting on anything and if you win the bet you win and if you lose, you hide the loses on a separate set of books and then have the government (tax payers) cover them.

Now let's use some common sense. The Federal Reserve is printing money (so to speak because most of it created on a computer) then they give the big banks the money at 0% interest and the Federal Reserve buys it back at 3% interest. But who owns the Federal Reserve? The big banks. Also, every dollar issued by the Federal Reserve has an interest amount charged to the US Treasury. So basically, the big banks and fed have a money making scheme going and the US tax payer is getting charged interest on all the funny money being made.

On top of that none of the money is going to the smaller banks and going to the regular people. So it's stimulating nothing. Of course the big players are rallying the stock market but gold is increasing in price as well. A sign of a rigged stock market and a world who is pulling their money out of paper and buying gold. Weird times indeed.

GAR

11-13-2010, 01:18 AM

I know it's going to take many months for me to figure out, basically because I'm pretty dense - that's my problem. But what I'd like to know is: how is it that the private banks are in charge of the money supply?

And the gold bricks in Manhattan Federal Reserve and at Ft. Knox - I'm learning that doesn't belong to the taxpayer - but the banks?

And the banks, when they get hauled before Congress and just sit there like Bernanke does panfaced while our Senators rail in his fuckng face, he just brushes it off as a bad day and doesn't have to respond, reply, provide, or do anything they ask him to do because the Fed is a private corporation?

Why can't I just go back to being the goody-twoshoes tax evader I've always been all my life, instead of getting stuck with having to figure out all the problems with this shit so I can explain it again to myself or other people?

Is this any way to treat a non-paying taxpayer when he sends you off to DC to do this job? I feel like with all my research in the last few years, I'm doing that cocksuckers' job don't you?

Fuck this! Nobody wants to know this bullshit - that's we they get paid

Nitro Express

11-13-2010, 01:46 AM

Why does a private bank have control over our currency? The Federal Reserve Act and Income Tax Act of 1913. Like the Obamacare bill it was passed late at night on a holiday and president Woodrow Wilson signed it into law. Before this, there was no federal income tax and the US Treasury Department minted US Dollars based on gold and no private bank was involved.

Nitro Express

11-13-2010, 01:47 AM

GAR

11-13-2010, 02:02 AM

The Federal Reserve Act and Income Tax Act of 1913. Like the Obamacare bill it was passed late at night on a holiday

I know that's the reason for a solution in 1913, but it's not the solution for 2010 then is it.. I'm asking myself this every day now.

Nitro Express

11-13-2010, 02:09 AM

So see. If we can clean house politically here in the US and put the Federal Reserve under the control of congress, there is a lot of money offshore that will reinvest here, but until we get ride of Obama and replace him with a pro American and pro business president, clean congress and give the money minting authority back to the Treasury Department, we are going to continue to have hard times. The first step is to get good leadership in and clean the government up or nothing is going to change for the better.

Nitro Express

11-13-2010, 02:11 AM

Basically Ron Paul has had the right idea for years. His plan on how to turn the US around is the best I've heard from anyone. That's why the Republican Party snubbed him in the last election.

Nitro Express

11-13-2010, 02:19 AM

GAR

11-13-2010, 02:23 AM

Ron Paul wants to abolish it, when not even Congress has the authority.

First you get the authority, then you reorganise. Only he'd like to see it AND taxes be completely done away with - the masters of Market Chaos would just drool at the thought of such a thing.

GAR

11-13-2010, 02:31 AM

Nitro Express

11-13-2010, 02:36 AM

No. Ron Paul knows you can't just get rid of the Fed over night. He basically wants to audit it, find the corruption, prosecute those liable, take back stollen US funds, and then incorporate the Federal Reserve into the US Treasury where it will be under congressional control.

There are a lot of US citizens who have pulled their money out of the US and it's sitting in offshore investments. That money will come back here if the political and monetary systems are flushed out. Then it's time to rebuild and the capital will be there. Much like rebuilding a country after it's been bombed by an air force but in our case we were bombed economically. We need to focus on quality and excellence again instead of cheap Asian junk. Name one thing made in China that means quality. Plus, even with all our problems we can kick their ass in innovation.

Nitro Express

11-13-2010, 02:43 AM

Obama is a nation destroyer and I think that was what his goal is. I think this is all calculated to bring the US down, create such a crises that the people will come crawling to the big bankers for help and then they run the show. I don't think it's going to happen because too many Americans still know their rights and value their freedom. Plus, too many of us were onto Obama pretty damn quick. Him, Pelosi, and Reid got a lot of the agenda done in a short amount of time but instead of closing escrow, they awakened and enraged the public. I just wish people would have woken up sooner, it would have been easier to fix.

But we can turn things around. It will take a few elections but the reality is, we are going to have to produce our way out of this mess and it's not going to be business as usual.

GAR

11-13-2010, 03:36 AM

I was reading up on this shitfacedbook.com phenomena, after I saw the movie.. wikipedia says Barbara Boxer owns about the same amount of Facebook that Microsoft paid 250million for.

And here she was in the TV ads "oh look at my opponent, billionaire, fired tens of thousands of people" yet shit, here she was herself a quarter-billionaire in one stock alone.

I ask you, do you think she had the inside tip or what on this?

GAR

11-13-2010, 03:39 AM

And Feinstein's term is up next election, she's worth tens of billions and her husband is worth a hundred-billion in CBRE handling B of A's foreclosures!

Glen Beck is correct, they don't need more pay than the enlisted who also serve the country putting everything on the line though for it.

FORD

11-15-2010, 10:43 PM

Here's a video that explains "Quantitative Easing" in terms that even GAyR can understand.....

http://www.youtube.com/watch?v=PTUY16CkS-k

Fuck Gold Mansacks, Bernanke, and the "Federal" Reserve.

SunisinuS

11-15-2010, 11:26 PM

GAR

11-16-2010, 03:01 AM

Here's a video that explains "Quantitative Easing" in terms that even GAyR can understand.....

http://www.youtube.com/watch?v=PTUY16CkS-k

Fuck Gold Mansacks, Bernanke, and the "Federal" Reserve.

Hey, FORD today's show had Glen Beck showing excerpts of this clip! Way to go - you and your buddy Beck have something in common!

FORD

11-16-2010, 11:21 AM

Well that figures...... BecKKK isn't known for his originality. :biggrin:

SunisinuS

12-06-2010, 12:02 PM

But Bernanke continued to argue firmly against that view.

"One myth that's out there is that what we're doing is printing money," he said. "We're not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way."

While the Fed is pressing hard on the monetary accelerator, banks would have to ramp up lending for the money supply to increase -- and loan demand is still tepid.

Economics 101. But on another front:

Government can’t print money properly
By Zachary Roth
Buzz up!6 votes Share
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EmailPrint..By Zachary Roth zachary Roth – 2 hrs 23 mins ago
As a metaphor for our troubled economic and financial era -- and the government's stumbling response -- this one's hard to beat. You can't stimulate the economy via the money supply, after all, if you can't print the money correctly.

Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them -- more than 10 percent of all existing U.S. cash -- in a vault in Fort Worth, Texas, reports CNBC.

"There is something drastically wrong here," one source told CNBC. "The frustration level is off the charts."

Officials with the Treasury and the Federal Reserve had touted the new bills' sophisticated security features that were 10 years in the making, including a 3-D security strip and a color-shifting image of a bell, designed to foil counterfeiters. But it turns out the bills are so high-tech that the presses can't handle the printing job.

More than 1 billion unusable bills have been printed. Some of the bills creased during production, creating a blank space on the paper, one official told CNBC. Because correctly printed bills are mixed in with the flawed ones, even the ones printed to the correct design specs can't be used until they 're sorted. It would take an estimated 20 to 30 years to weed out the defective bills by hand, but a mechanized system is expected to get the job done in about a year.

Combined, the quarantined bills add up to $110 billion -- more than 10 percent of the entire U.S. cash supply, which now stands at around $930 billion.

The flawed bills, which cost around $120 million to print, will have to burned.

The new bills are the first to include Treasury Secretary Tim Geithner's signature. In order to prevent a shortfall,the government has ordered production of the old design, which includes the signature of Bush administration Treasury Secretary Henry Paulson. That, surely, is not the only respect in which the nation's lead economic officials would like to turn back the clock to sometime before the 2008 financial crisis.

Nitro Express

12-06-2010, 12:11 PM

fifth element

12-06-2010, 12:15 PM

120 Million to make 110 Billion worth of FLAWED cash......

now THERE's economics for you.....

Nitro Express

12-06-2010, 12:17 PM

Anyways, banking in the US has gotten stupid. Last time I was in Hong Kong I opened an account with the Hong Kong Shanghai bank. This is Communist China and I just walked in and set up a new account. It took 20 minutes and no government red tape.

This summer I went to start an new business account with a local bank. My hell was it a royal pain in the ass. Homeland Security said my business charter wasn't the same as I was trying to start the account in. The state screwed up the paperwork. It took a month to get that account started up. It wasn't the bank's fault. We had to wait for the government to fix their problems; meanwhile, we could no do business.

SunisinuS

12-06-2010, 12:20 PM

The majority of monitary transactions are electronic and yes Ben is making plenty of that with the Federal Reserve's computers. Try and draw a large sum of money in cash from your average bank branch. They may not be able to give it to you in cash because they don't have the cash on hand. I had a friend in Seattle that got panicky and wanted his money out of the bank and wanted it in cash. Sorry, the Bank didn't even have $8,000 in cash to give him.

So yeah, they are printing less bills because people are using debit cards now but they are increasing the money supply in the computer banks.

Would be quit interesting to see how much "control" any government organization has over "electronic" money. It seems the Invisible Hand is now an Ethereal one.

And those flawed $100 bills I bet would trade very well......but better not use Ebay.........*Starts plotting how to set up "ACME Currency Burning Inc." For all your Government Bill burning needs...

Nitro Express

12-06-2010, 12:21 PM

120 Million to make 110 Billion worth of FLAWED cash......

now THERE's economics for you.....

It's just a screwed up government because every one has their hand out and wants something from it. Just like Chertoff and Rapiscan making money off the TSA, someone on the inside probably sold the government the new security gimmicks because they could. Nobody is managing things on an efficiency program. Everyone wants a piece of the pig or wants to sell the pig something. The government workers just pretend to work and the government pretends to pay them.

Nitro Express

12-06-2010, 12:26 PM

Would be quit interesting to see how much "control" any government organization has over "electronic" money. It seems the Invisible Hand is now an Ethereal one.

I imagine there are trillions of dollars that have gone out the back door of the Federal Reserve to connected organizations and the US Government doesn't have a clue. That's why congress needs to pull their heads out their asses and audit the thing. When the president of a private bank (Ben Bernanke) can tell the US Congress he isn't going to tell them where our tax bailout money went; something stinks big time. Not only are they getting our tax money and charging us interest on it, they aren't even telling our elected officials where it has gone. This is all done in plain sight and nobody seems to care. Unbelievable. Probably because too many people are dependant on the system for a pay check and don't want to ruffle any feathers. As long as they get their pork, they don't care who else is getting screwed.

Nitro Express

12-06-2010, 12:30 PM

Before the Federal Reserve the US had two other central banks. Both failed. The Federal Reserve will fail. We survived the failure of the previous two, we will survive the failure of the Federal Reserve. We just need to stop feeding the bastard and let it die.

Nitro Express

12-06-2010, 12:34 PM

I see the world going back on a gold/silver standard. The free market will set the price. Banks will all have their stash. People tell me this won't work because there isn't enough gold and silver but you can cut a pie up as small as you need to in order to meet demand. If will cause deflation and you just might be able to buy a hamburger with a dime. Like expensive drugs, maybe a gram of silver might buy you something. And stop this central bank shit. Have the US Treasury base the notes on a stash of commodities set by market prices and then have yearly audits to make sure everything is legit. The Federal Reserve has never been audited and it's the cause of much of the madness.