The U.S. Government.. Ponzi Scheme...

Discussion in 'Clean Debate Zone' started by Lumpy 1, Sep 18, 2012.

  1. Lumpy 1
    Offline

    Lumpy 1 Diamond Member Supporting Member

    Joined:
    Jun 19, 2009
    Messages:
    33,136
    Thanks Received:
    8,541
    Trophy Points:
    1,370
    Ratings:
    +14,857
    MMM.. just how much longer can this Ponzi scheme of the Federal Reserve ordering the printing of more U.S. dollars to pay for government, raising the national debt, denying inflation go on before investors realize U.S. bonds are relatively a broken promise and worthless paper?
     
  2. jwoodie
    Offline

    jwoodie Gold Member Supporting Member

    Joined:
    Aug 15, 2012
    Messages:
    8,757
    Thanks Received:
    1,287
    Trophy Points:
    245
    Ratings:
    +3,905
    This is not a Ponzi Scheme! A Ponzi Scheme is illegal. This is a Bernanke Scheme.
     
  3. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194
    The lack of alternatives sorta plays in our favor I think. What other currency or assets would you want to trust more than the US dollar? To answer your question, it could be quite awhile; the Japanese have a very large debt to GDP ratio somewhere north of 200%, but investors still buy their gov't debt.
     
  4. Saigon
    Offline

    Saigon Gold Member

    Joined:
    May 4, 2012
    Messages:
    11,434
    Thanks Received:
    870
    Trophy Points:
    175
    Location:
    Helsinki, Finland
    Ratings:
    +1,240
    It's called Quantitative Easing.

    Both Japan and the EU have been doing the same thing.

    It can noyl be a temporary fix, but the IMF support it as a short-term solution.
     
  5. P@triot
    Online

    P@triot Gold Member

    Joined:
    Jul 5, 2011
    Messages:
    23,305
    Thanks Received:
    2,750
    Trophy Points:
    280
    Ratings:
    +8,638
    The only solution - whether short term, medium term, or long term - is a free market and a government forced to strictly adhere to their Constitutional limits.

    With each step of government interfernce, we have seen a giant step in failure (higher unemployment AFTER all of the stimulus, higher debt, etc.).
     
  6. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194
    Meanwhile, the hole gets deeper and we haven't put down the shovels yet. I feel really bad for future genrations that will have to clean up this mess and pay for it too.
     
  7. Lumpy 1
    Offline

    Lumpy 1 Diamond Member Supporting Member

    Joined:
    Jun 19, 2009
    Messages:
    33,136
    Thanks Received:
    8,541
    Trophy Points:
    1,370
    Ratings:
    +14,857
    I need some study on this, I'm an admitted novice but it seems to me that there is actually nothing backing the dollar but the faith investors/other nations have in the US dollar. The gold standard was, "temporarily halted" back in the Nixon years and has never been re-instated since.

    There is no way of knowing how much gold reserves the US has, how much has been physically transferred to other nations or how many, "trusting investors" have purchased the same ounce/brick of gold that's held (?) in reserve.

    All trust seems to be centered on the United States Department of the Treasury and Federal Reserve which.

    According to the Board of Governors, the Federal Reserve is independent within government in that "its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government."

    Federal Reserve System -
    Wikipedia, the free encyclopedia


    mmm.. perhaps a little knowledge is a dangerous thing...:lol:..it's just how I'm seeing it!!
     
  8. Intense
    Offline

    Intense Senior Member

    Joined:
    Aug 2, 2009
    Messages:
    44,909
    Thanks Received:
    5,849
    Trophy Points:
    48
    Ratings:
    +5,863
    As long as they have bullets and missiles? ;)
     
    • Thank You! Thank You! x 1
  9. oldfart
    Offline

    oldfart Older than dirt

    Joined:
    Nov 5, 2009
    Messages:
    2,354
    Thanks Received:
    462
    Trophy Points:
    140
    Location:
    Redneck Riviera
    Ratings:
    +527
    Nothing backs any modern currency except its use in trade. No body is on the gold standard anymore. A dollar has value only to the extent of what it will buy.


    You shouldl have kept reading in Wikipedia. The largest stock of gold in the world is at the Federal Reserve Bank of New York.
    While only a very small part of the United States gold reserves are held in New York, most of the gold in the Bullion Depository is owned by the United States Treasury.
    While not on view, a strict accounting of the gold is kept.

    For comparison, her are the larger holdings of monetary gold:

    United States of America 8,133.5 metric tons
    European Union 15,784.1 metric tons (in possssion of 27 members)
    --- Federal Republic of Germany 3,396.3 metric tons
    --- Italian Republic 2,451.8 metric tons
    --- French Republic 2,435.4 metric tons

    International Monetary Fund 2,814.0 metric tons
    People's Republic of China 1,054.1 metric tons
    Swiss Confederation 1,040.1 metric tons
    Russian Federation 883.2 metric tons
    Japan 765.2 metric tons
    Republic of India 557.7 metric tons
    European Central Bank 502.1 metric tons


    Note: Monetary gold is not sold to investors. Private companies buy gold on the open market and sell the gold as bullion to be shipped to te buyer or warehoused with the company.

    The real value of gold (price in constant dollars adjusted for inflation) varies dramatically over time and is chiefly determined by real interest rates (low rates=high gold prices). The current run up in the price of gold is the most dramatic example of this. When real rates of interest begin to rise, the price of gold will plummet, possibly by up to 85% if real interest rates return to historically average rates.
     
    • Thank You! Thank You! x 1
    Last edited: Sep 19, 2012
  10. bripat9643
    Offline

    bripat9643 Diamond Member

    Joined:
    Apr 1, 2011
    Messages:
    67,833
    Thanks Received:
    8,081
    Trophy Points:
    2,030
    Ratings:
    +27,366
    Over the past 20 years Japan has had QEs 9 times, and their economy has been in the toilet the entire time.

    It looks like they didn't "fix" anything.
     
    • Thank You! Thank You! x 1

Share This Page