Borrowed Money is FREE if We Borrow It From the FED

Discussion in 'Economy' started by Neubarth, Mar 13, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Remember the FED was set up under wise Democratic leadership. Read the history of how it was wisely created.

    The most important thing to know is that the FED does not collect interest. When the US Government makes a payment to the FED the money is deposited directly into the Treasury. Thus all loans (bonds and notes) from the FED are effectively Interest Free!

    That is the greatest system in the world!

    Time to spend ourselves to prosperity.


    Seriously!
     
  2. Care4all
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    Care4all Warrior Princess Supporting Member

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    What do you mean, time to spend ourselves in to posterity?
     
  3. RetiredGySgt
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    RetiredGySgt Platinum Member

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    You mean you have not seen our wise and intelligent Liberals and democrats all claiming Obama has to double the deficit to save us FROM the deficit? That he has to double the deficit to save the economy? That he has to spend and spend to pull us up? What planet have you been living on?

    These same people were wise enough to complain about Bush doubling the deficit and now realize that Obama doubling that is the SMART thing to do.
     
  4. Neubarth
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    Neubarth At the Ballpark July 30th

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    The moral to the story is this, There is no such thing as debt when we borrow from the FED. It is all free money. In reality, we do not owe it to anybody because the FED is not a person, it is a bank and we have an unlimited expense account. Republicans never could understand that. They are genetically blind to reality. (i.e. really really dumb!)
     
    Last edited: Mar 13, 2010
  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    Your astute paraphrase is well met. Indeed, we can spend ourselves to prosperity for our posterity. Amen! Halleluia! Obama will be seen as a God Like figure in world history in the future.
     
  6. Toro
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    Toro Diamond Member

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    I can never tell if Neubarth is joking.

    Assuming that he is not, borrowing from the Fed is inflationary. We are doing that now because the forces in the economy are highly deflationary, so the quantitative easing is to offset deflation. However, in a normal economy, we would have rampant inflation.
     
  7. Neubarth
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    Neubarth At the Ballpark July 30th

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    Now why would you think that I was joking just because I went from being a conservative to a liberal overnight?
     
    Last edited: Mar 14, 2010
  8. Neubarth
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    Neubarth At the Ballpark July 30th

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    Alas, genius that you be, Toro, you are under one of those Republican delusions. There are two types of borrowed debt: One you borrow from the FED and Two you borrow from real people. Borrowing from real people is inflationary, but borrowing from the FED does not in any way cause inflation. Look at the reality and you will see that the solution to inflation is to never borrow from the public (or at the very least to borrow only a small portion from the public so that they can get a guaranteed interest payment from the government in retirement.)
     
    Last edited: Mar 14, 2010

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