Krugman: personal austerity versus government austerity

[starcraftzzz]

this is where you say what caused the Great Depression or realize that you're the only to whom it isn't obvious that you're changing the subject.

Um is saying that what caused the great depression is what you've said caused it considered not saying what caused it?
The great depression was caused by a lot of things of which I’ll list some of them

1) A debt financed stock/economic bubble
2) High income inequality which resulted in a debt financed consumer binge which resulted in a collapse in consumption when poor people and to pay back their debts
3) A large banking crisis.

Some things that deepened it include.
1) A Gold standard that prevented the powers at be from adjusted to large economic shocks
2) Poor farming techniques that lead to the dust bowl
3) A failure of the FED/government to increase the money supply, prevent deflation or enact stimulus programs.
4) Deflation which deters investment, consumption and increase debt loads.

Good for you, you looked up a list. How odd though that you said my list of one item was "spot on" in post 90 ???

Jesus I say you are correct you and you respond with nope I am wrong. ROTFL
The problem is that your goal is not to be honest, to find the best policies, or to learn your goal is to stoke your ego by never admitting you are wrong, making yourself look good, and making it look like you won a debate

 

[Mr. Jones]

Um is saying that what caused the great depression is what you've said caused it considered not saying what caused it?
The great depression was caused by a lot of things of which I’ll list some of them

1) A debt financed stock/economic bubble
2) High income inequality which resulted in a debt financed consumer binge which resulted in a collapse in consumption when poor people and to pay back their debts
3) A large banking crisis.

Some things that deepened it include.
1) A Gold standard that prevented the powers at be from adjusted to large economic shocks
2) Poor farming techniques that lead to the dust bowl
3) A failure of the FED/government to increase the money supply, prevent deflation or enact stimulus programs.
4) Deflation which deters investment, consumption and increase debt loads.

Good for you, you looked up a list. How odd though that you said my list of one item was "spot on" in post 90 ???

Jesus I say you are correct you and you respond with nope I am wrong. ROTFL
The problem is that your goal is not to be honest, to find the best policies, or to learn your goal is to stoke your ego by never admitting you are wrong, making yourself look good, and making it look like you won a debate

The above post by Starz is correct.
But, Milton Friedman and his neo liberalism economics policies are a fail, as witnessed throughout the countries it was implemented in. The Keynesian economic policies depend on printing the money supply into existence and expanding the credit causing a boom and bust cycle,
THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED (Ludwid Von Mises)

The reason that Keynes' model does not work is that "governments worldwide are totally incapable of stopping the money printing. This is their only means of staying in power and buying votes. But not only that, this is the only method they know. This has been their patent solution to all economic problems in the last decades. Not that this is new in history."

Politicians and government organizations are one massive drag on the economy: "The transfer of capital from private enterprise to government by massive taxation is approaching 50% in many countries. The average for 18 industrialised countries is almost 40%. This means that on average 40% of the productive economy is transferred to a non-producing entity (government) which wastes most of the money in the process of redistribution."

In addition, despite the repeated promises of austerity and fiscal restraint, the governments here and in Europe have proven repeatedly to be completely incapable of cutting spending and reigning in deficits: "There will be no lasting austerity programmes in any country that can print money. Governments are incapable of sticking to austerity measures since in the end that is a guaranteed way of losing power. As power is the main purpose of all governments, they will use any method to retain it."

This Keynesian system has created a gigantic welfare class that gets bigger by the day. Every god damn month in the United States the percentage of people who get food stamps increases: "For a great many people it is now totally natural to rely on the state for their needs rather than on themselves."

"In order to preserve wealth and keep capital intact, it is critical to keep a major part of investment assets in precious metals held outside the banking system. But for investors who continue to follow conventional wisdom, they will sadly find that their investment strategy was merely conventional and contained no wisdom."

Governments are creating credit and paper money and consequently through their fraudulent actions “stealing” from the people whilst at the same time increasing the people’s dependence on the state. And the people does not understand that the value of paper money is declining continuously. But gold reveals the deceitful destruction of paper money. This is why governments do not like gold and try to suppress the gold price.

You can sit by and hope and pray that things turn around in this country. But that's insane thinking because they won't. The spending deficits, economic decay and corruption will continue to get worse until the U.S. dollar collapses.
Again why do you think all the police state laws are being rushed into existence? They BS you into thinking it's for a "boogyman" that hates us for our freedoms,? All the while the government is the one who removes the freedoms from us that the "terrorists" hate?

No it's because they know this cycle of perpetual debt can never be payed off, and the ponzi scheme is collapsing, especially for those at the bottom of the pyramid.

For almost 100 years we have lived on a system based on debt. This has created a false prosperity as well as false values.

DEUS EX MACHINA - by Egon von Greyerz

 

[JohnLocke1799]

1) A person is not a country , according to Krugman

2) If a person spends, drinks, or takes drugs too much the obvious solution is to cut back, according to Krugman. But if many individuals cut back it will depress the economy he says.

3) Conversely, if a drunken government spends too much the solution is too keep spending since that stimulates the economy. To cut back would depress the economy and sustain the Obama depression, according to Krugman.


Does this make sense to anyone?

Of course not. Keynesians like Krugman do not recognize that government "stimulating the economy" is merely an application of the time-value of money. In short, pay me now or pay me later. The longer we put off the "later" the worse the contraction will be felt.

 

[JohnLocke1799]

EdwardBaiamonte has no quote.

EdwardBaiamonte has no link.

Krugman never said it.

In his typical fashion, EdwardBaiamonte is simply making shit up.

Have you ever heard Krugman? EdwardBaiamonte is accurately paraphrasing.

 

[Zander]

Krugman, the former Enron adviser, has a long history of being wrong. This is no exception.

 

[EdwardBaiamonte]

The reason that Keynes' model does not work is that "governments worldwide are totally incapable of stopping the money printing.

this is 100% true. Krugman says deficitis are important but we'll worry about them later. In turth, liberals never worry about them because their only real priority is more and more welfare entitlement Marxist redistribution vote buying.

 

[EdwardBaiamonte]

Krugman never said it.

want to be $10,000. Bet or run away again with your liberal tail between your legs

Beside, EdwardBaiamonte doesn't understand anything
that Krugman, or any economists, say,

if so why is the liberal so afraid to present his best example for the whole world to see? What does your fear tell you?

 

[ERGO]

11 Reasons Why The Federal Reserve Is Bad

Millions of Americans are waking up to the fact that the Federal Reserve is bad, but very few of them can coherently explain why this is true. For decades, an unelected, privately-owned central bank has controlled America's currency, run our economy and has driven the U.S. government to the brink of bankruptcy. It operates in great secrecy, it has never been subjected to a comprehensive audit and yet the actions it takes have an impact on every single American. It is an institution designed to drain wealth from the U.S. government (and ultimately from the American people) and transfer it to the ultra-wealthy. Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone? Have you ever wondered why a sovereign nation such as the United States does not even issue its own currency? Have you ever wondered why we allow a group of unelected private bankers to run our economy?

Those are some very important questions. Hopefully what you are about to read will open the eyes of many. The truth is that our financial system is centrally-controlled and centrally-managed by a group of banking oligarchs [a banking cartel] who have constructed an ever-expanding debt spiral which has been efficiently designed to slowly transfer all wealth into their hands.

1 - The Federal Reserve was created as a way to enslave the U.S. government with debt. The truth is that the U.S. government only goes into debt if it chooses to. Theoretically, one day that U.S. government could simply decide to print as many U.S. dollars as it wants and pay off all government debts. But under the current system that is not allowed. You see, today the U.S. government does not issue any money. The Federal Reserve issues all money. That is why they are called "Federal Reserve notes".
The following are 11 reasons why the Federal Reserve is not good for the United States....
Under the current regime, whenever the U.S. government wants more currency to be created it has to go into more debt.
It Is Now Mathematically Impossible To Pay Off The U.S. National Debt

If you will pull a dollar bill out and take a look at it, you will notice that it says "Federal Reserve Note" at the top.

It belongs to the Federal Reserve.

The U.S. government cannot simply go out and create new money whenever it wants under our current system.

Instead, it must get it from the Federal Reserve.

So, when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes.

The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).

So that is how the U.S. government gets more green pieces of paper called "U.S. dollars" to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.

So every time the U.S. government does this, the national debt gets even bigger and the interest on that debt gets even bigger.

Now, apologists for the Federal Reserve system are quick to point out that the Federal Reserve does not make much of a profit. Once a "statutory dividend" of 6% is paid to member banks and a capital account surplus is "maintained", the rest of the profits of the Federal Reserve go back to the U.S. Treasury.
Wrong.

The point is not how much of a profit the Federal Reserve makes or does not make.

The point is that the Federal Reserve is a tool for creating U.S. government debt which slowly drains our national wealth and which ends up greatly enriching the global elite.

The U.S. government spent $454,393,280,417.03 on interest payments in 2011 to the holders of the national debt. So far in fiscal year 2012, $241,473,971,063.13
Source: Government - Interest Expense on the Debt Outstanding

Have you ever wondered who gets all that money? The truth is that the wealthiest individuals around the globe have been getting very rich for a very long time off of government debt.

The Federal Reserve creates money out of thin air, In a previous article Created Out Of Thin Air – That Is Where The Federal Reserve Got The 1.3 Trillion Dollars That It Bought All Of Those Mortgage Backed Securities With I noted how this fact comes out in congressional hearings and yet the American people just don't seem to get too upset about it....

During a recent Joint Economic Committee hearing on Capital Hill, U.S. Representative Ron Paul directly confronted Federal Reserve Chairman Ben Bernanke about this 1.3 trillion dollars. As Ron Paul described how this 1.3 trillion was just created out of thin air, all Bernanke could do was nod his head. Why? Because it was the truth.

The rest of the article can be read at:11 Reasons Why The Federal Reserve Is Bad

U.S. Congressman Louis T. McFadden's Speech in the House of Representatives June 10 1932
Louis T. McFadden's U.S. House Speech,10 June 1932
[ame=http://www.youtube.com/watch?v=STbVPLNwLRw]The Federal Reserve, Rothschild, and Vatican Banking Cartels - The Monetary Axis of Evil - YouTube[/ame]

[ame=http://www.youtube.com/watch?v=D04O7pfMdbI]The Money Powers - International Banking Cartel And Corruption In The United States - YouTube[/ame]

 

[ERGO]

PULLING BACK THE CURTAIN ON THE WALL STREET MONEY MACHINE

On November 27, 2011, Bloomberg News reported the results of its successful case to force the Federal Reserve to reveal the lending details of its 2008-09 bank bailout. Bloomberg reported that by March 2009, the Fed had committed $7.77 trillion in below-market loans and guarantees to rescuing the financial system; and that these nearly interest-free loans came without strings attached.

The Fed insisted that the loans were repaid and there have been no losses, but the Bloomberg report said the banks reaped a $13 billion windfall in profits; and “details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.”

The revelations provoked shock and outrage among commentators. But in a letter to the leaders of the House and Senate Committees focused on the financial services industry, Fed Chairman Ben Bernanke responded on December 6th that the figures were greatly exaggerated. He said the loans were being double-counted: short-term loans rolled over from day to day were counted as separate cumulative loans rather than as a single extended loan.

Bloomberg was quick to rebut, denying any exaggerated claims. But either way, the banks were clearly getting perks not available to the rest of us. As Alan Grayson observed in a December 5th editorial:

The main, if not the sole, qualification for getting help from the Fed was to have lost huge amounts of money. The Fed bailouts rewarded failure, and penalized success. . . .

During all the time that the Fed was stuffing money into the pockets of failed banks, many Americans couldn’t borrow a dime for a home, a car, or anything else. If the Fed had extended $26 trillion in credit to the American people instead of Wall Street, would there be 24 million Americans today who can’t find a full-time job?
All in the Name of Liquidity

It was all explained, said Grayson, with “the Fed’s all-time favorite rationale for everything it does, ‘increasing liquidity.’” In 2008, bank liquidity dried up after Lehman Brothers collapsed, and the banks could not get the cheap, ready credit on which their lending scheme depends. The Fed then stepped in as “lender of last resort,” doing what it had to do to keep the banking scheme going.

Left unexplained is why the banks’ need for “liquidity” justifies such extraordinary measures. Why do banks need cheap and ready access to funds? Aren’t they the lenders rather than the borrowers of funds? Don’t they simply take in deposits and lend them out?

The answer is no. Today when banks make loans, they extend credit FIRST, then fund the loans by borrowing from the cheapest available source. If deposits are not available, they borrow from another bank, the money market, or the Federal Reserve.

Rather than loans being created from deposits, loans actually CREATE deposits. They create deposits when checks are drawn on the borrower’s account and deposited in another bank. The originating bank can then borrow these funds (or others created by the same process at another bank) at the Fed funds rate—currently a very low 0.25%. In effect, a bank can create money in the form of “bank credit,” lend it to a customer at high interest, and borrow it back at very low interest, pocketing the difference as its profit.

If all this looks like sleight of hand, it is. The process has been compared to “check kiting,” defined in Barron’s Business Dictionary as:

[An] illegal scheme that establishes a false line of credit by the exchange of worthless checks between two banks. For instance, a check kiter might have empty checking accounts at two different banks, A and B. The kiter writes a check for $50,000 on the bank A account and deposits it in the bank B account. If the kiter has good credit at bank B, he will be able to draw funds against the deposited check before it clears, that is, is forwarded to bank A for payment and paid by bank A. Since the clearing process usually takes a few days, the kiter can use the $50,000 for a few days and then deposit it in the bank A account before the $50,000 check drawn on that account clears.
Setting Things Right

As suspicious as all this appears, the economy actually needs an expandable credit system, and an expandable credit system needs a lender of last resort. What is wrong with the current scheme is that it discriminates against Main Street in favor of Wall Street. Banks can borrow very cheaply, while individuals, corporations and governments pay “whatever the market will bear.” The banker middlemen take their cut in a scheme in which money is actually manufactured in the process of lending it. The profits are siphoned off to the 1% at the expense of the 99%.

To fix the system, the profits need to be returned to the 99%. How that could be done was suggested by Thom Hartmann in a recent editorial:

Have the central bank owned by the US government and run by the Treasury Department, so all the profits . . . go directly into the Treasury and you and I pay less in taxes . . . .

For a model on the local level, he pointed to the Bank of North Dakota:

The good people of North Dakota . . . established something very much like this—the Bank of North Dakota—and it’s kept the state in the black, and kept its farmers, manufacturers and students protected from the predations of New York banksters for nearly a century. It’s time for every state to charter their own state bank, just like North Dakota did, and for the Treasury Department to either buy the Fed from the for-profit banks that own it, or simply nationalize it.

We have been distracted here and in Europe by a sudden panic over our “sovereign debt” crises, when the real crisis is that our debt is NOT sovereign. We are indentured to a Wall Street money machine that creates our money and lends it back to us at interest, money our sovereign government could be creating itself, with full democratic oversight and accountability to the people. We have forgotten our roots, when the American colonists thrived on a system of money created by the people themselves, debt-free and interest-free. The continued dominance of the Wall Street money machine depends on that collective amnesia. The fact that this memory is surfacing again may be the machine’s greatest threat—and our greatest hope as a nation.

Link to article: PULLING BACK THE CURTAIN ON THE WALL STREET MONEY MACHINE

[ame=http://www.youtube.com/watch?v=swkq2E8mswI]The Secret of Oz - Winner, Best Docu of 2010 v.1.09.11 - YouTube[/ame]

[ame=http://www.youtube.com/watch?v=JXt1cayx0hs&feature=related]The Money Masters - Full - YouTube[/ame]

 

[EdwardBaiamonte]

debt

simply put, you're a standard conspiracy nut!!!!

How do you figure debt is not a result of Congress spending more than it taxes ??????

 

[EdwardBaiamonte]

Left unexplained is why the banks’ need for “liquidity” justifies such extraordinary measures.

very very simple!!! Without liquidity you have panics, runs, and another Great Depression.

A child would know this just not a conspiracy nut

 

[starcraftzzz]

Krugman never said it.

want to be $10,000. Bet or run away again with your liberal tail between your legs

Beside, EdwardBaiamonte doesn't understand anything
that Krugman, or any economists, say,

if so why is the liberal so afraid to present his best example for the whole world to see? What does your fear tell you?

Notice how firs y you respond with "no he said it but I wont post it" then you're like oh if you're not afraid then source it. Hypocritical retard.

 

[EdwardBaiamonte]

Krugman never said it.

want to be $10,000. Bet or run away again with your liberal tail between your legs

Beside, EdwardBaiamonte doesn't understand anything
that Krugman, or any economists, say,

if so why is the liberal so afraid to present his best example for the whole world to see? What does your fear tell you?

Notice how firs y you respond with "no he said it but I wont post it" then you're like oh if you're not afraid then source it. Hypocritical retard.

show your parents your gibberish before you post it please

 

[ERGO]

The U.S. government spent $454,393,280,417.03 on interest payments in 2011 to the holders of the national debt. So far in fiscal year 2012, $241,473,971,063.13

debt

simply put, you're a standard conspiracy nut!!!!

How do you figure debt is not a result of Congress spending more than it taxes ??????

I don't think you took the time to read all that I posted or watch any of the videos Eddy If you did indeed read all of it or watch any of the videos then you sure must have a comprehension problem and you're not as smart as you think you are.
What is the supposed "conspiracy" to what I posted?.
What I posted evidently went way over your head for you to be resorting to ad hominem.
Take the time to read and watch the videos. Follow the hyperlinks...it's not conspiracy theory material! Wow You're a trip!


A study of American Colonial history will reveal that Benjamin Franklin went to England as a representative of the Colonies.

The English officials asked how it was the Colonies managed to collect enough taxes to build poor houses, and how they were able to handle the great burden of caring for the poor. Franklin's reply was most revealing: "We have no poor houses in the Colonies, and if we had, we would have no one to put in them, as in the Colonies there is not a single unemployed man, no poor and no vagabonds." Think long and hard about this. In the American colonies before the American Revolution, there was "not a single unemployed man, no poor and no vagabonds"...no one on Welfare, no one on Social Security, no homeless, no income tax, no alphabet agencies, No IRS, BATF, FBI, DEA, CIA, HEW, OSHA, SBA, and on and on and on to provide for the "general welfare" of our villages, towns, cities and states. How did Benjamin Franklin explain this to the British officials of his day?
How would he explain it to today's lawyers, judges, politicians and other government officials?[ or people that think they know it all on message boards]"It is because, in the Colonies, we issue our own paper money. We call it Colonial Script, and we issue only enough to move all goods freely from the producers to the Consumers; and as we create our money, we control the purchasing power of money, and have no interest to pay." -Benjamin Franklin No Privately run banker cartel Federal Reserve System to make a nations currency at interest. Something the government could and should do WITHOUT the FEDERAL RESERVE The U.S.Congress gave away it's power to create currency to PRIVATE bankers in 1913. I don't know what it is that you're not grasping about this? Why should the U.S. Government be giving a PRIVATE bank the power to create a nations currency and then pay interest on it? The U.S. government spent $454,393,280,417.03 on interest payments in 2011 to the holders of the national debt. So far in fiscal year 2012, $241,473,971,063.13 ....Have you ever wondered who gets all that money? The truth is that the wealthiest individuals around the globe have been getting very rich for a very long time off of government debt.

Maybe this video may help.

[ame=http://www.youtube.com/watch?v=f6uuAupT4AQ&feature=related]Money as Debt 3 - The Rothschild mafia (Paul Grignon) - YouTube[/ame]

 

[itfitzme]

Krugman never said it.

want to be $10,000. Bet or run away again with your liberal tail between your legs

Beside, EdwardBaiamonte doesn't understand anything
that Krugman, or any economists, say,

if so why is the liberal so afraid to present his best example for the whole world to see? What does your fear tell you?

Sure, just like your claim that Bernanke and Friedman said the Great Depression was caused by not following the rules of The Gold Standard.

Yeppers, another piece of bs.

And once again, you don't just prove it, because you can't. Why is the wing nut so afraid to present his best example to back up his bull shit?

Because, that's what your fear tells you. That you're full of shit.

My fear tells me that you actually are allowed out in public.

 

[itfitzme]

The U.S. government spent $454,393,280,417.03 on interest payments in 2011 to the holders of the national debt. So far in fiscal year 2012, $241,473,971,063.13

debt

simply put, you're a standard conspiracy nut!!!!

How do you figure debt is not a result of Congress spending more than it taxes ??????

I don't think you took the time to read all that I posted or watch any of the videos Eddy If you did indeed read all of it or watch any of the videos then you sure must have a comprehension problem and you're not as smart as you think you are.
What is the supposed "conspiracy" to what I posted?.
What I posted evidently went way over your head for you to be resorting to ad hominem.
Take the time to read and watch the videos. Follow the hyperlinks...it's not conspiracy theory material! Wow You're a trip!

Don't forget the Getty's and Colonel Sander's, who puts an addictive substance in the chicken to cause you to crave it fort-nightly.

Let me explain why your cartoon is wrong. It is this simple. Gold has no inherent or intrinsic value. It only has value because someone finds value in it. Paper money also only has value because someone finds value in it. There is no difference.

A piece of gold alone in the woods has no more value then a piece of toilet paper alone in the woods.

Nothing has inherent or intrinsic value. Money does not inherent value from being backed by gold. Money is already backed by whatever can be purchased with it. I know, because I went to the store yesterday and bought a basket of goods.

Yes, you are a conspiracy wing nut. Strait out of the box, I can tell because of your statement, "you sure must have a comprehension problem and you're not as smart... "

Right there, I can tell your a moron, because only morons say, "you're not as smart..." That is the moron excuse, everyone else is to dumb to make the insane connections.

 

[itfitzme]

Good for you, you looked up a list. How odd though that you said my list of one item was "spot on" in post 90 ???

Jesus I say you are correct you and you respond with nope I am wrong. ROTFL
The problem is that your goal is not to be honest, to find the best policies, or to learn your goal is to stoke your ego by never admitting you are wrong, making yourself look good, and making it look like you won a debate

The above post by Starz is correct.
But, Milton Friedman and his neo liberalism economics policies are a fail, as witnessed throughout the countries it was implemented in. The Keynesian economic policies depend on printing the money supply into existence and expanding the credit causing a boom and bust cycle,
THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED (Ludwid Von Mises)

The reason that Keynes' model does not work is that "governments worldwide are totally incapable of stopping the money printing. This is their only means of staying in power and buying votes. But not only that, this is the only method they know. This has been their patent solution to all economic problems in the last decades. Not that this is new in history."

Politicians and government organizations are one massive drag on the economy: "The transfer of capital from private enterprise to government by massive taxation is approaching 50% in many countries. The average for 18 industrialised countries is almost 40%. This means that on average 40% of the productive economy is transferred to a non-producing entity (government) which wastes most of the money in the process of redistribution."

In addition, despite the repeated promises of austerity and fiscal restraint, the governments here and in Europe have proven repeatedly to be completely incapable of cutting spending and reigning in deficits: "There will be no lasting austerity programmes in any country that can print money. Governments are incapable of sticking to austerity measures since in the end that is a guaranteed way of losing power. As power is the main purpose of all governments, they will use any method to retain it."

This Keynesian system has created a gigantic welfare class that gets bigger by the day. Every god damn month in the United States the percentage of people who get food stamps increases: "For a great many people it is now totally natural to rely on the state for their needs rather than on themselves."

"In order to preserve wealth and keep capital intact, it is critical to keep a major part of investment assets in precious metals held outside the banking system. But for investors who continue to follow conventional wisdom, they will sadly find that their investment strategy was merely conventional and contained no wisdom."

Governments are creating credit and paper money and consequently through their fraudulent actions “stealing” from the people whilst at the same time increasing the people’s dependence on the state. And the people does not understand that the value of paper money is declining continuously. But gold reveals the deceitful destruction of paper money. This is why governments do not like gold and try to suppress the gold price.

You can sit by and hope and pray that things turn around in this country. But that's insane thinking because they won't. The spending deficits, economic decay and corruption will continue to get worse until the U.S. dollar collapses.
Again why do you think all the police state laws are being rushed into existence? They BS you into thinking it's for a "boogyman" that hates us for our freedoms,? All the while the government is the one who removes the freedoms from us that the "terrorists" hate?

No it's because they know this cycle of perpetual debt can never be payed off, and the ponzi scheme is collapsing, especially for those at the bottom of the pyramid.

For almost 100 years we have lived on a system based on debt. This has created a false prosperity as well as false values.

DEUS EX MACHINA - by Egon von Greyerz

The reason that Keynes' model does not work is that "governments worldwide are totally incapable of stopping the money printing.

Here is why you are wrong. The money supply is not increased by the Federal Reserve "printing money". The money supply is increased by businesses borrowing money when they see an opportunity to get a return on investment. Money only enters the economy because businesses borrow it, not because the Federal Reserve prints it.

This is why the system is referred to as like "pushing on a string", because the Federal Reserve can print all the money they want, and nothing will happen unless businesses decide they want it.

 

[starcraftzzz]

and has driven the U.S. government to the brink of bankruptcy.

ROTFL so the FED giving the government free money makes the government bankrupt.
I can already tell that this whole article is bogus and full of shit

It operates in great secrecy, it has never been subjected to a comprehensive audit

Wrong. Dodd-Frank audited the FED. Odd that republicans voted against that

It is an institution designed to drain wealth from the U.S. government (and ultimately from the American people) and transfer it to the ultra-wealthy.

I hope this article tells us how giving the US government money drains money from the US government

Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone?

Hm so are you saying that the US goverment should be able to get free money with out paying interest rates? Oh wait right now some innterest on govt debt are 0 or below 0

The truth is that our financial system is centrally-controlled and centrally-managed by a group of banking oligarchs [a banking cartel] who have constructed an ever-expanding debt spiral which has been efficiently designed to slowly transfer all wealth into their hands.

I think a good solution would be to elect liberals who do not cave to corporations/banks so they can appoint like minded people to the FED instead of Republicans/conservative democrats who bow down to banks

Id go through the rest of the trash but I'm deciding to just say fuck it

 

[ERGO]

and has driven the U.S. government to the brink of bankruptcy.

ROTFL so the FED giving the government free money makes the government bankrupt.
I can already tell that this whole article is bogus and full of shit

It operates in great secrecy, it has never been subjected to a comprehensive audit

Wrong. Dodd-Frank audited the FED. Odd that republicans voted against that

I hope this article tells us how giving the US government money drains money from the US government

Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone?

Hm so are you saying that the US goverment should be able to get free money with out paying interest rates? Oh wait right now some innterest on govt debt are 0 or below 0

The truth is that our financial system is centrally-controlled and centrally-managed by a group of banking oligarchs [a banking cartel] who have constructed an ever-expanding debt spiral which has been efficiently designed to slowly transfer all wealth into their hands.

I think a good solution would be to elect liberals who do not cave to corporations/banks so they can appoint like minded people to the FED instead of Republicans/conservative democrats who bow down to banks

Id go through the rest of the trash but I'm deciding to just say fuck it

"ROTFL so the FED giving the government free money makes the government bankrupt.
I can already tell that this whole article is bogus and full of shit"

You know Ignorance and arrogance makes a person pompously foolish. You don't even understand the basic relationship the privately owned federal reserve bank has with U.S government do you?....you're a pretentious MORON who doesn't even know how the money in the U.S. is created. it's quite evident you don't!
The Federal Reserve Bank doesn't give the government "free" money you moron it loans it to the government at interest it has since it's inception 1913 you RETARD!

It operates in great secrecy, it has never been subjected to a comprehensive audit [/quote]
Wrong. Dodd-Frank audited the FED. Odd that republicans voted against that
No you're wrong
The key word was COMPREHENSIVE audit.The Fed has not had one and the Dodd-Frank bill is a lame ass bill that doesn't do much. For the definition of comprehensive: Complete; including ALL or nearly ALL elements or aspects of something: "a comprehensive list of sources".
Of large content or scope; wide-ranging.
That's not the same as COMPREHENSION, which you seem to have a problem with!

Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone? [/quote]
Hm so are you saying that the US goverment should be able to get free money with out paying interest rates? Oh wait right now some innterest on govt debt are 0 or below 0
foll
Here once again you demonstrate your lack of comprehension of what I posted so far.
The government has the power to create it's own money, the government hasn't been creating it's own money since 1914. The privately ran Federal Reserve Bank has, at interest. If the government created it's own money it wouldn't have to borrow it from the private bankers.The interests rates have been only near zero since Dec. 2008. For more on this search the Feds power over the interest rates of the country and a chronological history of what the rates were.

The truth is that our financial system is centrally-controlled and centrally-managed by a group of banking oligarchs [a banking cartel] who have constructed an ever-expanding debt spiral which has been efficiently designed to slowly transfer all wealth into their hands.[/quote]
I think a good solution would be to elect liberals who do not cave to corporations/banks so they can appoint like minded people to the FED instead of Republicans/conservative democrats who bow down to banks.

More of the same lack of understanding of the U.S's money system

The FED is a Corporation that has a monopoly on money creation and the issuance of credit.
The Federal Reserve is NOT part of the U.S. government .It's controlled by the private bankers. The FOMC. The Federal Reserve Board

 

[ERGO]

Frank Dodd Act is Dodd Frank Act

A 2000 page bill that calls for more than 350 regulatory rule-makings, 47 studies, 74 reports will cause major uncertainty, making it harder for business to raise capital, make investments and ultimately create new jobs going to be called either the Frank Dodd Act or the Dodd Frank Act. Source: Tom Donohue, President and CEO, US Chamber of Commerce

What we call this bill is very important, since the bill does nothing to help regulate financial markets. Giving it the proper name is, frankly, more important than making it law. If we could just skip the ‘making it a law’ part, well that would be great.

Frank and Dodd, the financial geniuses behind Freddie and Fannie Mac, didn’t bother to do a cost-benefit study on the effect on end users. If Dodd-Frank passes the Senate, U.S. companies could be forced to put up an additional $1 trillion in collateral to continue using derivatives to reduce their business risk.

“The Dodd-Frank Act is an Empty Effort at Financial Reform”
Congressman Kenny Marchant (TX-24) issued the following statement after the House passed the “Dodd-Frank Act” (H.R. 4173), which fails to reform Fannie Mae and Freddie Mac and will place more unrestrained power in the hands of irresponsible regulators.

“Today House Democrats chose to ignore the root causes of our financial meltdown and plowed irresponsibly ahead with an empty, politically motivated effort at “reform” that will continue to thwart our economic recovery. I, along with many of my fellow Republicans, am a staunch advocate for meaningful reform. However, this bill offers no such thing. A majority of its 2,300 pages are hollow and superfluous powers, and the rest takes punitive measures against those who had nothing to do with the financial crisis.

“While the risky behavior of those in the subprime mortgage industry infected the lion’s share of our financial sector, the regulators were asleep at the switch. Unfortunately, it is these very same regulators–many of them now top economic officials in the Obama administration–who are the real ‘winners’ in this bill.

“The American people would be well served by subjecting large financial institutions to structured bankruptcy proceedings. Instead, the Dodd-Frank Act institutionalizes ‘too big to fail.’ The American people would be well served by reforming Fannie Mae and Freddie Mac. Instead, we ignore them entirely and give them unlimited access to taxpayer money – a cost that could reach $380 billion. The American people would be well served by instituting an exacting standard for regulators. Instead, we just create more of them. Perhaps most importantly, the American people would be well served by implementing policies that empower businesses large and small to create jobs and spur economic growth. Instead, we penalize community institutions with burdensome changes to capital requirements, penalize large institutions with nearly $6 billion of increased FDIC premiums, and penalize non-financial institutions with limits on their ability to manage risk.

“This bill does not best serve our constituents. While they are demanding Congress to reign in spending, this bill hikes taxes and makes bailouts permanent. As a proponent of limited government, we must force the private sector to pay for their own mess through traditional bankruptcy rather than strap it on the backs of American taxpayers. Despite the vigorous opposition of the bill, Democrats continue to pass partisan legislation and ignore the voice of the American people.”

Where is the media on all of this today? Well if you are the Wall Street Journal, other financial news service, or a blogger, there are plenty of articles.

But if you are with the main stream media, you get no balanced news just one short story on Obama getting his way