Yes, we should tie treasury yields to the deficit as a % of GDP.
Yes, we should tie treasury yields to the deficit as a % of gov't spending.
No, we should let bankers keep running the Federal Reserve.
The way I see the Fed is that it is required to give confidence to the paper it distributes and that would be Federal Reserve Notes. Ergo, it often states its' confidence in the status quo, whatever that mey be, just like any confidence man hawking his wares. It's like a big balloon full of confidence. As you get more and larger holes in the balloon, just install bigger pumps to maintain the status quo of inflation, and work around the holes. Now, if you or I or Three fingers Pete, the renowned artist and amatuer printer, try this, we are arrested for counterfeiting, fraud, etc. One man's bad paper should be just as good as another's, don't you think? That is the reality. It's about debt, not real money. A bad joke that will end badly. However, like the recent big Banking crisis of 2008 and the GWShiiteForBrains Great Depression, noone will be held accountable, so the joke is on us, the USA.
The real purpose of the FED is to prevent exactly what I just said. It's given 2 contradictory missions:
1) Prevent inflation
2) Maximum employment
The FED came about when gold was replaced by paper money, and the last thing you want with paper money is Congress determining every week how much is printed and how much of that new money is simply used to pay off debt.
The last time paper money wasn't valued in Gold or Silver (without the FED) was Continental Currency, which was printed into uselessness.
And no the solution isn't to back money in Gold or Silver like the Ronulans claim, this massive trade deficit will simply mean giving China all of the Gold in Fort Knox in less than 6 months. What exactly would that accomplish other than giving China all the Gold in Fort Knox in less than 6 months and then backing it with nothing again.
And no the solution isn't to back money in Gold in Silver, sorta'like like the Ronulans claim, then if you couldn't trade the money for gold and silver than it's no different than not backing it with gold and silver, you simply changed a few words around.
Last edited by Matt Foley; 05-18-12 at 03:10 PM.
We have a budget deficit because we can't get tax reform passed.
And the reason why we can't get tax reform passed is because the corporate lobbyists who pay campaign contributions to our Representatives and our Senators won't let them.
So I don't see why we should blame the Fed for what's Congress' fault.
Also, we need to legalize recreational drugs and prostitution.
Actually the Fed was created after a banking crises in 1917 (I believe) and was created to be the lender of last resort. The previous banking crises depended on JP Morgan (the guy) and other investors to bail out a failed NY bank to stave off a bank run.The FED came about when gold was replaced by paper money, and the last thing you want with paper money is Congress determining every week how much is printed and how much of that new money is simply used to pay off debt.
“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.” John Maynard Keynes
But after Executive Order 6102 and France demanding gold in exchange for American notes during a trade deficit, there is no going back.
It's always France isn't it, they're always involved in something.
Last edited by Matt Foley; 05-18-12 at 03:56 PM.
And refusing to raise taxes when there's a deficit has a psychological effect on voters: "Whatevah, I'll do what I want." It's sort of the opposite effect the "Starve the Beast" theory predicted.
Last edited by Matt Foley; 05-18-12 at 03:59 PM.
The FED was created in a deal on Jekyll (sp) Island to get Woodrow Wilson elected President. The bankers financed Wilson and were paid back with a Central Bank that is the FED. That was around 1914-17 and the FED quickly created the Great Depression. They seem to be real good at that. The FED is a private Corporate entity, not part of the USGovernment and does not allow its' books to be audited, nor will it allow its' list of stockholders to be revealed. You can be sure those stockholders names are the Big Money of the second decade of the 20th century and some big banks, including the Bank of England, the Rothschilds, Rockefellers, JP Morgan, etc.
I'm not saying there aren't many issues - but I'd like to start the 'fixing' in the engine, first.
A screaming comes across the sky.
It has happened before, but there is nothing to compare it to now.Pynchon - Gravity's Rainbow