You owe it to yourself to educate yourself on what is happening

Discussion in 'Economics' started by ProfitTakgFool, Oct 6, 2008.

  1. bidask

    bidask

    i read an explanation on how the u.s. government uses the fractional reserve system to pay for the deficit every year.

    see the site below.

    http://www.themoneymasters.com/faqs.htm#collapse


    the example says that when the government needs to pay a $400 billion deficit, the open market committee first instructs the Federal Bank of New York to buy $40 billion of bonds. then this cash gets loaned and reloaned until $360 billion of money is created.

    the problem is that i don't quite follow how the money eventually returns to the government to pay for the deficit after this point. can someone please take a look and explain the final link?

    Edit: Federal Bank of New York is buying $40 billion, not selling. I corrected it above.
     
    #61     Oct 7, 2008
  2. #62     Oct 7, 2008
  3. 9999

    9999

    #63     Oct 7, 2008
  4. Mecro

    Mecro

    You gotta try search the websites of these groups, most of these documents are publicly available. United Nations is probably the biggest thinktank.

    “Food is power. We use it to change behavior, some may call it bribery. We do not apologize.”-Catherine Bertini, executive director of the U.N. World Food Program.

    Think that was in 1997 in Beijing. Check out Agenda 21 and Codex Alimentarius. NONE of this is hidden, but how many people are willing to even entertain this idea, let alone go read pages upon pages to find the key information.

    By the way, I do believe there is an overpopulation problem the way we live now. You have individuals who consume enough to sustain thousands of others. The world spends enough on military & defense in a few years that could feed the starving for decades.
     
    #64     Oct 7, 2008
  5. Rufawana

    Rufawana

  6. Mecro

    Mecro

    The thread title is about educating yourself, not having everything spoon fed to you. I bet you can't even read 1/10th of the first part of the pdf I linked.

    Uhm no it has not, it's been right on point while the Keynesians struggle to adjust their rationale every decade.

    Uhm no, Ron Paul is one of the few who is an old school Republican and gets laughed at by his fellow party members when he speaks common sense. Regardless, it's a one party system, with a few good apples and majority of sell outs.

    Have you ever looked at a "dollar bill"? It's a Federal Reserve Note. Do you need the wikipedia link to explain the Federal Reserve, let alone their own website, where nothing is actually concealed?

    Honestly, if you do not understand that the government is no longer represented by the people at this point, you deserve to sink with the ship. The people are strongly opposed to the bailout, yet it was still voted in, in spite of masses of phone calls, letters, promises to vote the representatives out of office. How about the Patriot Acts, Homeland Security Act, Military Commissions Act? Did any of us even get a chance to say anything before Congress followed suit and just pushed it through?


    Because you have nothing to offer in a barter system and would rather be a leech. That is until you can't leech anymore, then you will cry.
    A barter system was key in establishing a uniform unit of currency.


    Hmm, let's see. The Fed blows up credit/money supply causes a boom. Then it contracts credit/money supply causes a crash. The data is there, a strong contraction was done into the 1930s. So you basically just proved yourself wrong. Even a couple Fed higher end employees who write papers have noted this on many occasions, that their "mistake" back then was deflating money supply at a rapid rate.

    Did you know that House of Morgan almost got taken to court over that? They orchestrated that 1907 panic in a strong push for the Fed, the same trick that has been done for centuries. There is a lot of history to this, ever hear of Andrew Jackson and his battles with the First & Second Bank of the United States?
    I dare you to go look up Woodrow Wilson's memoirs in which he confesses that he sold out the country to the international banks. He even prophesized that USA will lose its industrial power and become nothing more than an economy based on credit. This is from a person once very naive and trained to be put into a role of the President who signed the Federal Reserve into law.
    Either way, the reality is here, enjoy the rate cut and further deteriorating dollar. It will get even more interesting when China realizes that USA can't buy any more of their crap and hence they have no need to support USA financially. Oh, and I will give you some advice, even though I believe you're nothing more than wilful lamb to the slaughter. Stock up on food & water.
     
    #66     Oct 8, 2008
  7. Mecro

    Mecro

    Power of taxation. But since you have to repay in Federal Reserve notes, which only get issued with interest, it is mathematically impossible to ever repay the debt+interest.
     
    #67     Oct 8, 2008
  8. You referring to The Mystery of Banking? It's a fairly large pdf and I have other things to read and do. A glance at it though seems to indicate it is written in a fairly simple style. If it is clear enough for you to recommend it as a primer I doubt it is even remotely as challenging to read as Keynes' General Theory. You have read that haven't you?

    I guess that's why everyone is still on the gold standard.


    Old school Republican? As in how old? As old as Herbert Hoover? No wonder he's on the fringe.


    I don't know why you bother with this comment unless you are suggesting the government has no influence with the Fed. Is that what you are saying?

    Furthermore if nothing is actually concealed on the Fed's website I wonder why you don't cite from it more and instead have to draw from a partisan source like the Mises Institute.

    Then vote for the Democrats or call for a revolution.


    I like convenience and being able to pay with cash or credit card.

    Maybe you want to live the life of the Amish. Why don't you join one of their communities?


    The way I understand it the Fed didn't actively deflate the money supply. They just stood by, or to put it more generously, didn't do enough while the money supply was destroyed by the numerous bank failures. You should know why of course. They were following Austrian School classical economics orthodoxy: Thou shalt not intervene.

    Almost taken to court isn't the same as taken to court. Taken to court isn't the same as winning in court. Gee, I wonder why the case wasn't followed through?

    I guess in your view every financial crisis that occurred in the United States prior to the creation of the Fed was because "they" wanted the Fed to be created. Spare me the conspiracy theories. Just because you're paranoid doesn't mean everyone else is.


    Thank you for the advice. I would note however that the US dollars I've been holding recently have been appreciating in value, but I'll change that soon. Anyway it's reassuring to know having land with its own water supply might not be a complete waste. Should I build a bomb shelter as well?
     
    #68     Oct 8, 2008