As Go Tunisia and Egypt, So Goes US?

[editec]

When the US dollar no longer functions as the world's reserve currency, hundreds of thousands of combat vets will return home to 17% un/under employment levels.

That should scare you a little more than Bill Ayres or Van Jones.

btw, it wasn't radical lefties that inflicted homicidal violence on Korea, Vietnam, Laos, Cambodia, Afghanistan and Iraq.

Any attempt at violent overthrow of this government will come from those carrying Crosses in one hand and Old Glory in the other.

Oh, I see. The Tea Party is the real threat now.

Probably not.

But any real threat to the INSIDERS is going to come from today's clueless right...

..once they get a clue....

..if ever.

The question is...will they ever understand who is really pulling their strings?

Clearly they don't yet.

Some of you rightests got some clue when BUSH II started bailing out what?

Stay with me here, now

Who did Bush II bail out?

Communists?

No kids, BANKSTERS.

And who has Obma bailed out?

WElfare mothers? Abortionists?

No...once again the BANKSTERS.

Are yas getting it YET?

No, not yet.

You're still all having way too much fun feeling personally superior to those strawmen enemies that the PROPAGANDISTS keep confusing you clueless morons with.

But one of these days, you right wingers are going to wake up.

And when you do?

Molly bar the door.

 

[mudwhistle]

When the US dollar no longer functions as the world's reserve currency, hundreds of thousands of combat vets will return home to 17% un/under employment levels.

That should scare you a little more than Bill Ayres or Van Jones.

btw, it wasn't radical lefties that inflicted homicidal violence on Korea, Vietnam, Laos, Cambodia, Afghanistan and Iraq.

Any attempt at violent overthrow of this government will come from those carrying Crosses in one hand and Old Glory in the other.

Oh, I see. The Tea Party is the real threat now.

Probably not.

But any real threat to the INSIDERS is going to come from today's clueless right...

..once they get a clue....

..if ever.

The question is...will they ever understand who is really pulling their strings?

Clearly they don't yet.

Some of you rightests got some clue when BUSH II started bailing out what?

Stay with me here, now

Who did Bush II bail out?

Communists?

No kids, BANKSTERS.

And who has Obma bailed out?

WElfare mothers? Abortionists?

No...once again the BANKSTERS.

Are yas getting it YET?

No, not yet.

You're still all having way too much fun feeling personally superior to those strawmen enemies that the PROPAGANDISTS keep confusing you clueless morons with.

But one of these days, you right wingers are going to wake up.

And when you do?

Molly bar the door.

Most of the TARP money was distributed during Obama's watch. Who do you think got it? Who do you think Obama is telling must keep their pay under $500k?

Wanna see all of the foreign bankers Obama bailed out.

It's a pretty long list.

Meet The 35 Foreign Banks That Got Bailed Out By The Fed (And This Is Just The CPFF Banks)
Tyler Durden's picture
Submitted by Tyler Durden on 12/01/2010 17:11 -0500




One may be forgiven to believe that via its FX liquidity swap lines the Fed only bailed out foreign Central Banks, which in turn took the money and funded their own banks. It turns out that is only half the story: we now know the Fed also acted in a secondary bail out capacity, providing over $350 billion in short term funding exclusively to 35 foreign banks, of which the biggest beneficiaries were UBS, Dexia and BNP. Since the funding provided was in the form of ultra-short maturity commercial paper it was essentially equivalent to cash funding. In other words, between October 27, 2008 and August 6, 2009, the Fed spent $350 billion in taxpayer funds to save 35 foreign banks. And here people are wondering if the Fed will ever allow stocks to drop: it is now more than obvious that with all banks leveraging the equity exposure to the point where a market decline would likely start a Lehman-type domino, there is no way that the Brian Sack-led team of traders will allow stocks to drop ever... Until such time nature reasserts itself, the market collapses without GETCO or the PPT being able to catch it, and the Fed is finally wiped out in one way or another.

The 35 companies in question:

UBS
Dexia SA
BNP Paribas
Barclays PLC
Royal Bank of Scotland Group
Commerzbank AG
Danske Bank A/S
ING Groep NV
WestLB
Handelsbanken
Deutsche Post AG
Erste Group Bank AG
NordLB
Free State of Bavaria
KBC
HSH Nordbank AG
Unicredit
HSBC Holdings PLC
DZ Bank AG
Republic of Korea
Rabobank
Sumitomo Mitsui Banking Corporation
Banco Espirito Santo SA
Bank of Nova Scotia
Mizuho Corporate Bank, Ltd.
Syngenta AG
Mitsui & Co Ltd
Bank of Montreal
Caixa Geral de Depósitos
Mitsubishi UFJ Financial Group
Shinhan Financial Group Co Ltd
Mitsubishi Corp
Aegon NV
Royal Bank of Canada
Sumitomo Corp

 

[gautama]

When the US dollar no longer functions as the world's reserve currency, hundreds of thousands of combat vets will return home to 17% un/under employment levels.

That should scare you a little more than Bill Ayres or Van Jones.

btw, it wasn't radical lefties that inflicted homicidal violence on Korea, Vietnam, Laos, Cambodia, Afghanistan and Iraq.

Any attempt at violent overthrow of this government will come from those carrying Crosses in one hand and Old Glory in the other.

Oh, I see. The Tea Party is the real threat now.

Probably not.

But any real threat to the INSIDERS is going to come from today's clueless right...

..once they get a clue....

..if ever.

The question is...will they ever understand who is really pulling their strings?

Clearly they don't yet.

Some of you rightests got some clue when BUSH II started bailing out what?

Stay with me here, now

Who did Bush II bail out?

Communists?

No kids, BANKSTERS.

And who has Obma bailed out?

WElfare mothers? Abortionists?

No...once again the BANKSTERS.

Are yas getting it YET?

No, not yet.

You're still all having way too much fun feeling personally superior to those strawmen enemies that the PROPAGANDISTS keep confusing you clueless morons with.

But one of these days, you right wingers are going to wake up.

And when you do?

Molly bar the door.

I don't have the time to correct all the inundation of the TOTAL BULLSHIT that editec inundates us with.....including a smattering of same in this latest post.

But there is one of my pet peeves that Obamarrhoidal LIEberrhoids keep harping on that is so BLATANTLY FALSE that it literally makes me wanna puke when I hear it: and, that is Dubya's supposed fault for this Economic Debacle when it is clearly the machinations of Bwarney Fwank, Chairman of the House Finances, and the non-convicted criminal Chris Dodd, Chairman of the Senate Finances plus the CORRUPT RACIST Congressional Black Caucus members (amongst other Dems).....but especially Maxine Waters, and the other 2 or 3 Black congressmen that made a spectacle of themselves howling and yowling against Bush's reps in the Congressional Hearings on the Fannie & Freddie Fiasco, when Bush's reps (and numerous Republicans) REPEATEDLY called for the regulation of the freewheeling and DISASTROUS money-lending policies of Frank Raines, the Fannie CEO that walked off with $100 MILLION for the financial rape of America.

BTW, shortly after the Financial Debacle of American History.... both Frank Raines (Fannie CEO), the CROOK SUPREMO, and the other Freddie CEO were miraculously appointed to Obama's cabinet: Raines as the Chief Financial Advisor, and the other as Chairman for the selection of Obama's veep. Both of these Dem catspaws suddenly evaporated when the spotlight turned on them, and are no doubt languishing in the Financial Heaven reserved for the more prominent Dem Non-convicted Criminals.

All this is caught on National TV, and there are 16 or so videos on this Dem Travesty on Youtube......and publicized in some detail in other threads on USMB.

And, yet.......OUTRIGHT, FLAGRANT LIARS like Editec keep trashing Bush who only had to vote for a MINIMAL, ABSOLUTELY NECESSARY STIMULUS to save the Economy (which ALL economists agree was necessary), a minor fraction of the DISASTROUS NON-PRODUCTIVE $ 5-7 TRILLION STIMULUS of Obami Salaami.....getting us into a $14 TRILLION DEBT which even our children, and our grandchildren will probably be unable to repay.

And, note: MOST of these $TRILLIONS are doled out to Cronies and Obama-favorable Unions and Corporations (like GE).....without producing what may even be a nanogram of increasing the employment of jobs lost in the private sector.

 

[georgephillip]

um...no.
As long as the TV still works, and fast food still exist - Americans are too otherwise occupied to notice much anything else.

What if the Federal Reserve turned every $10 bill in the country into a $5?

Or worse??

The USA economy would start recovering.

Assuming that you meant inflation, of course.

We need some.

If the richest among us hold a significant percentage of their wealth in non-dollar denominated assets, would inflation on this scale widen the gap between the rich and the rest of America?

I'm left wondering if we've reached a point where government should start taxing the rich instead of borrowing from them?

 

[California Girl]

What if the Federal Reserve turned every $10 bill in the country into a $5?

Or worse??

The USA economy would start recovering.

Assuming that you meant inflation, of course.

We need some.

If the richest among us hold a significant percentage of their wealth in non-dollar denominated assets, would inflation on this scale widen the gap between the rich and the rest of America?

I'm left wondering if we've reached a point where government should start taxing the rich instead of borrowing from them?

I'm left wondering why you're wasting time posting here.... there's a revolution to get started. On you go.... get to it.... facebook it, tweet it.... get out there and change the world!

 

[georgephillip]

George seems to think money is supposed to be distributed like a monopoly game .

For thousands of years all governments have functioned to redistribute wealth by socializing cost and privatizing profit for a select few.

Much of the money the richest 1% of the US population has acquired in the last four decades came from Republicans AND Democrats redistributing national income, largely through tax biases that favor debt over equity investments.

You and Toto aren't playing board games in Kansas anymore, and the US rich will continue looting this country until they're dealt with like Mubarak and his sycophants.

Putting aside your lack of understanding of history and the purpose of government ,

You want a revolution so no one has any chance of bettering themselves .you are assigned a position, a station in life and that is it ,unless you are willing to shoot someone in the back of the head If you can get a gun ?

Government's purpose over the past five thousand years seems pretty obvious to me.

Socialize cost and privatize profit.

For-profit war and private bond markets seem to have been to favorite tools used by rich parasites to control their governments and plunder their economies.

Since History has always been written by the "winners," understanding revolution requires getting beyond the need for all killing not directly connected to self defense.

 

[georgephillip]

Oh I'm sorry...I accidentally walked into the "Delusional Nutjobs Who Hate America and Americans" forum. Excuse me and carry on.

I thought every time an Obama supporter posts the forum becomes exactly that.

I have trouble believing that you are confused by who pulls the strings that control Obama and those who controlled the Gipper's "revolution."

Why do you think the richest 1% continue to increase their share of national wealth?

Obama's socialism?

 

[Mr.Fitnah]

For thousands of years all governments have functioned to redistribute wealth by socializing cost and privatizing profit for a select few.

Much of the money the richest 1% of the US population has acquired in the last four decades came from Republicans AND Democrats redistributing national income, largely through tax biases that favor debt over equity investments.

You and Toto aren't playing board games in Kansas anymore, and the US rich will continue looting this country until they're dealt with like Mubarak and his sycophants.

Putting aside your lack of understanding of history and the purpose of government ,

You want a revolution so no one has any chance of bettering themselves .you are assigned a position, a station in life and that is it ,unless you are willing to shoot someone in the back of the head If you can get a gun ?

Government's purpose over the past five thousand years seems pretty obvious to me.

Socialize cost and privatize profit.

For-profit war and private bond markets seem to have been to favorite tools used by rich parasites to control their governments and plunder their economies.

Since History has always been written by the "winners," understanding revolution requires getting beyond the need for all killing not directly connected to self defense.

You haven't explained your Utopian alternative.

 

[editec]

Oh, I see. The Tea Party is the real threat now.

Probably not.

But any real threat to the INSIDERS is going to come from today's clueless right...

..once they get a clue....

..if ever.

The question is...will they ever understand who is really pulling their strings?

Clearly they don't yet.

Some of you rightests got some clue when BUSH II started bailing out what?

Stay with me here, now

Who did Bush II bail out?

Communists?

No kids, BANKSTERS.

And who has Obma bailed out?

WElfare mothers? Abortionists?

No...once again the BANKSTERS.

Are yas getting it YET?

No, not yet.

You're still all having way too much fun feeling personally superior to those strawmen enemies that the PROPAGANDISTS keep confusing you clueless morons with.

But one of these days, you right wingers are going to wake up.

And when you do?

Molly bar the door.

Most of the TARP money was distributed during Obama's watch. Who do you think got it? Who do you think Obama is telling must keep their pay under $500k?

Wanna see all of the foreign bankers Obama bailed out.

It's a pretty long list.

Meet The 35 Foreign Banks That Got Bailed Out By The Fed (And This Is Just The CPFF Banks)
Tyler Durden's picture
Submitted by Tyler Durden on 12/01/2010 17:11 -0500




One may be forgiven to believe that via its FX liquidity swap lines the Fed only bailed out foreign Central Banks, which in turn took the money and funded their own banks. It turns out that is only half the story: we now know the Fed also acted in a secondary bail out capacity, providing over $350 billion in short term funding exclusively to 35 foreign banks, of which the biggest beneficiaries were UBS, Dexia and BNP. Since the funding provided was in the form of ultra-short maturity commercial paper it was essentially equivalent to cash funding. In other words, between October 27, 2008 and August 6, 2009, the Fed spent $350 billion in taxpayer funds to save 35 foreign banks. And here people are wondering if the Fed will ever allow stocks to drop: it is now more than obvious that with all banks leveraging the equity exposure to the point where a market decline would likely start a Lehman-type domino, there is no way that the Brian Sack-led team of traders will allow stocks to drop ever... Until such time nature reasserts itself, the market collapses without GETCO or the PPT being able to catch it, and the Fed is finally wiped out in one way or another.

The 35 companies in question:

UBS
Dexia SA
BNP Paribas
Barclays PLC
Royal Bank of Scotland Group
Commerzbank AG
Danske Bank A/S
ING Groep NV
WestLB
Handelsbanken
Deutsche Post AG
Erste Group Bank AG
NordLB
Free State of Bavaria
KBC
HSH Nordbank AG
Unicredit
HSBC Holdings PLC
DZ Bank AG
Republic of Korea
Rabobank
Sumitomo Mitsui Banking Corporation
Banco Espirito Santo SA
Bank of Nova Scotia
Mizuho Corporate Bank, Ltd.
Syngenta AG
Mitsui & Co Ltd
Bank of Montreal
Caixa Geral de Depósitos
Mitsubishi UFJ Financial Group
Shinhan Financial Group Co Ltd
Mitsubishi Corp
Aegon NV
Royal Bank of Canada
Sumitomo Corp

I know that you desperately WANT to disagree with me, but the above post actually supports the point I was making, lad.

When the meltdown started the Insiders circled the wagons and started taking care of the Insiders.

Bush II started it, and Obama is continuing it.

Now what does THAT tell you?

 

[georgephillip]

"One cause of the revolts in Tunisia and Egypt is popular outrage over the monopolization of wealth by a small cadre of elites.

"The grievances of the Middle East's dispossessed probably seem justified to most Americans, who view the region as a relic of feudalism and stomping ground for despots.

"But what about America itself?

"As has been widely noted over the past few days, income inequality in the United States is actually much worse than in Egypt, Tunisia, or Pakistan.

"Could the US government feel the push of inequality's domino effect?

Comparative prosperity seems to argue otherwise since, as a group, America's poor have about as much wealth as India's richest.

"Yet those arguments neglect some of the major disadvantages of being modestly middle class in a wealthy country: A much higher cost of living and a perceived need to keep up with the Joneses, which fueled the explosion of subprime home loans that caused the recession.

"'Global unemployment remains at record highs, with widening income inequality adding to social strains,' Dominique Strauss-Kahn, the chief of the IMF, said this week during a speech in Singapore, citing turmoil in North Africa as a prelude to what may happen elsewhere.

"'We could see rising social and political instability within nations—even war.'"

And he wasn't referring to banana republics exclusively.

As Go Egypt...

Do these words and phrases sound familiar to you?

Solidarity
Workers of the world unit
Social Justice
Collective Salvation
Tranformational Figure
Hope and Change
New World Order
Power To The People


(kŏm'yə-nĭz'əm) pronunciation
n.

1. A theoretical economic system characterized by the collective ownership of property and by the organization of labor for the common advantage of all members.
2. Communism
1. A system of government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people.
2. The Marxist-Leninist version of Communist doctrine that advocates the overthrow of capitalism by the revolution of the proletariat.


Communists, Fascists, Socialists, Progressives, and Marxists have changed their tone to become kinder and friendlier. But they're still the same and their goals are still the same.

Obama specialized at the University of Chicago in training revolutionaries into sounding more palatable to the masses. He felt is was better to sound kind and use flowery rhetoric instead of the old "In Your Face" rhetoric they used in the 60s.

Is Obama a Socialist?

If so...

Where's the worker control over the conditions of their work?
What has Obama done to enhance collective ownership of major capital assets and the means of production in this country?
Why have the richest 1% of Americans increased their share of national income since he took office?
Why haven't there been any prosecutions for stock or control fraud on Wall Street?

"In reaction to the issues of the day, a socialist would fight to nationalize the banks, create a national health system, and end imperialist occupations in Iraq and Afghanistan.

"That the right wing can accuse Obama of being a socialist when he does none of those things is one indication of how impoverished and dramatically skewed to the right our politics has become.

"In most of the civilized world, discussions of policies based in socialist principles are part of the political discourse, while here they are bracketed out of any serious debate. In a recent conversation with an Indonesian journalist, I did my best to explain all this, but she remained perplexed.

"How can people take seriously the claim that he’s socialist, and why does applying that label to a policy brand it irrelevant? I shrugged. 'Welcome to the United States ' I said, 'a country that doesn’t know much about the world or its own history.'”

 

[georgephillip]

When the US dollar no longer functions as the world's reserve currency, hundreds of thousands of combat vets will return home to 17% un/under employment levels.

That should scare you a little more than Bill Ayres or Van Jones.

btw, it wasn't radical lefties that inflicted homicidal violence on Korea, Vietnam, Laos, Cambodia, Afghanistan and Iraq.

Any attempt at violent overthrow of this government will come from those carrying Crosses in one hand and Old Glory in the other.

Oh, I see. The Tea Party is the real threat now.

The real threat is still ignorance.

For example, the ignorance the makes some people on the right confuse Obama with a socialist, and some on the left confuse him with Hope or Change.

 

[editec]

What if the Federal Reserve turned every $10 bill in the country into a $5?

Or worse??

The USA economy would start recovering.

Assuming that you meant inflation, of course.

We need some.

If the richest among us hold a significant percentage of their wealth in non-dollar denominated assets, would inflation on this scale widen the gap between the rich and the rest of America?

I'm left wondering if we've reached a point where government should start taxing the rich instead of borrowing from them?

Now THAT is an excellent question.

But as right now the world's pprimary unit of exchange specie is the USD then most debt instuments held by the wealthy and banks are held in US denominated debt instruments.

But as we are not on the gold standard, there is no easy way that I know of to devalue the USD in the way FDR did in 1933.

Then he just did it by proclaimation (many proclaimations mostly changing the price of gold to the USD, actually until he finnally just took us off that standard) and the immediate results were very dramatic and highly productive.

Days after the USD went off the gold standard the stock market soared by 15%.

During the first quarter, after they went off gold standard, wholesale prices jumped 45% and stocks doubled.

With nearly a 100% increase in new orders for heavy machinery, and autos the real cost of borrowing dropped and overall industrial production rose 50%.

WHY?

Because their problem (ours is not identical) was a DEFLATIONARY cycle. Basically there was just not enough money in circulation to service the needs of the economy

And bear in mind that we went off the gold standard when the USA owned nearly 60% of the worlds known gold reserves.

You see, gold bugs, the gold standard is not in and of itself a universal panacea to our economic woes. Governments can and did still print money while the money supply while on the gold standard...just as they ALL did to pay for the first world war.

There are states of the economy that benefit from inflation to recover its balance.

But the specie has to get into the right hands to make difference.

And that's my complaint about the Stimulus....the money didn't get into the right hands (the people) it all went covering the insane risks that the BANSTERS took.

Why did we bail out all those foreign banks?

Because they were holding US demoniated debt instruments as though it has VALUE.

Only, thanks to the RE and derivatives fiascos those instruments weren't worth jackshit unless the USA taxpayers bailed them out.

 

[georgephillip]

if you dont have irrational hatred for people who have more money than you, it really doesnt matter how much they have does it?

I highly doubt the people have been rioting because the rich have so much money.

Consider alternative interpretations.

What if it were instead a very rational irritation with policies and practices? What if certain policies and practices are harmful to the majority of people, with the only benefit being to a relatively select few who do not need any kind of special benefit? Isn't that at least just as likely an explanation as an alleged irrational hatred for people who have more money than one's self?

Given the degree to which our society is dominated by corporations, the primary institution through which capitalism operates, most rational people have some very good reasons to question the dominant economic system of their time.

Robert Jensen:

"But capitalism is not only inhuman and anti-democratic; it’s also unsustainable, and if we don’t come to terms with that one, not much else matters.

"Capitalism is an economic system based on the concept of unlimited growth, yet we live on a finite planet. Capitalism is, quite literally, crazy."

 

[whitehall]

Unfortunately I think Georgie is typical of the far left revolutionaries. Even after Bill Ayers bombed the Pentagon and corporate headquarters and recruiting stations and Police departments and his girlfriend and other comrades were killed by a bomb he helped make he said he "didn't do enough". The violent overthrow of the US government is the dream of Ayers and Van Jones (and Georgie?) and the aging weatherscum who once terrorized Americans. Obama is typical of the evoloution of the revolutionary movement in the 60's and 70's only he wants to remake America from the inside by reducing the US to a 3rd world country.

 

[georgephillip]

if you dont have irrational hatred for people who have more money than you, it really doesnt matter how much they have does it?

I highly doubt the people have been rioting because the rich have so much money.

They will if they start starving.

If the government takes all of our free cash and gives it away guess how upset we will be at the rich?

How much of our free cash have Republicans AND Democrats given to Wall Street in the last two years?

How many $ have the richest 1% of Republicans AND Democrats added to their share of our national wealth in that time?

FLUSH the DC toilet in 2012.

 

[georgephillip]

The USA economy would start recovering.

Assuming that you meant inflation, of course.

We need some.

If the richest among us hold a significant percentage of their wealth in non-dollar denominated assets, would inflation on this scale widen the gap between the rich and the rest of America?

I'm left wondering if we've reached a point where government should start taxing the rich instead of borrowing from them?

I'm left wondering why you're wasting time posting here.... there's a revolution to get started. On you go.... get to it.... facebook it, tweet it.... get out there and change the world!

Einstein's Waiting

 

[georgephillip]

Putting aside your lack of understanding of history and the purpose of government ,

You want a revolution so no one has any chance of bettering themselves .you are assigned a position, a station in life and that is it ,unless you are willing to shoot someone in the back of the head If you can get a gun ?

Government's purpose over the past five thousand years seems pretty obvious to me.

Socialize cost and privatize profit.

For-profit war and private bond markets seem to have been to favorite tools used by rich parasites to control their governments and plunder their economies.

Since History has always been written by the "winners," understanding revolution requires getting beyond the need for all killing not directly connected to self defense.

You haven't explained your Utopian alternative.

Einstein Does It Better

 

[Samson]

Unfortunately I think Georgie is typical of the far left revolutionaries. Even after Bill Ayers bombed the Pentagon and corporate headquarters and recruiting stations and Police departments and his girlfriend and other comrades were killed by a bomb he helped make he said he "didn't do enough". The violent overthrow of the US government is the dream of Ayers and Van Jones (and Georgie?) and the aging weatherscum who once terrorized Americans. Obama is typical of the evoloution of the revolutionary movement in the 60's and 70's only he wants to remake America from the inside by reducing the US to a 3rd world country.

Now he's in his echo chamber....


***unsubscribes***

 

[georgephillip]

Unfortunately I think Georgie is typical of the far left revolutionaries. Even after Bill Ayers bombed the Pentagon and corporate headquarters and recruiting stations and Police departments and his girlfriend and other comrades were killed by a bomb he helped make he said he "didn't do enough". The violent overthrow of the US government is the dream of Ayers and Van Jones (and Georgie?) and the aging weatherscum who once terrorized Americans. Obama is typical of the evoloution of the revolutionary movement in the 60's and 70's only he wants to remake America from the inside by reducing the US to a 3rd world country.

The misguided violence that Bill Ayers espoused was in direct response to the mass murder of millions of Vietnamese civilians by the US military/industrial/congressional complex.

Instead of shedding crocodile tears for the Pentagon, maybe you should ask yourself why the richest 1% of US citizens have increased their share of the nation's wealth in the last two years.

Along with virtually every elected Republican AND Democrat in DC, they are the reason the US is being reduced to third world status.

 

[georgephillip]

The USA economy would start recovering.

Assuming that you meant inflation, of course.

We need some.

If the richest among us hold a significant percentage of their wealth in non-dollar denominated assets, would inflation on this scale widen the gap between the rich and the rest of America?

I'm left wondering if we've reached a point where government should start taxing the rich instead of borrowing from them?

Now THAT is an excellent question.

But as right now the world's pprimary unit of exchange specie is the USD then most debt instuments held by the wealthy and banks are held in US denominated debt instruments.

But as we are not on the gold standard, there is no easy way that I know of to devalue the USD in the way FDR did in 1933.

Then he just did it by proclaimation (many proclaimations mostly changing the price of gold to the USD, actually until he finnally just took us off that standard) and the immediate results were very dramatic and highly productive.

Days after the USD went off the gold standard the stock market soared by 15%.

During the first quarter, after they went off gold standard, wholesale prices jumped 45% and stocks doubled.

With nearly a 100% increase in new orders for heavy machinery, and autos the real cost of borrowing dropped and overall industrial production rose 50%.

WHY?

Because their problem (ours is not identical) was a DEFLATIONARY cycle. Basically there was just not enough money in circulation to service the needs of the economy

And bear in mind that we went off the gold standard when the USA owned nearly 60% of the worlds known gold reserves.

You see, gold bugs, the gold standard is not in and of itself a universal panacea to our economic woes. Governments can and did still print money while the money supply while on the gold standard...just as they ALL did to pay for the first world war.

There are states of the economy that benefit from inflation to recover its balance.

But the specie has to get into the right hands to make difference.

And that's my complaint about the Stimulus....the money didn't get into the right hands (the people) it all went covering the insane risks that the BANSTERS took.

Why did we bail out all those foreign banks?

Because they were holding US demoniated debt instruments as though it has VALUE.

Only, thanks to the RE and derivatives fiascos those instruments weren't worth jackshit unless the USA taxpayers bailed them out.

As I understand it, inflation favors debtors and works against the interest of creditors. This is often offered as an explanation for Alan Greenspan's policies at the Fed. Since inflation diminishes the value of large private fortunes, monetary policy should protect those with the most to lose first and foremost.

I think it's fair to say had Ralph Nader or Ron Paul(?) moved into the White House when Obama did, the Stimulus would have been used differently, and every time we saw Tim Geithner or Larry Summer on TV in the last two years they would have been in a courtroom.

Our bail out of foreign banks only confirms in my mind how many Americans are ignorant/indifferent to the global nature of the class war.

If some day every $10 bill in our possession buys what $5 bought the day before, I'm guessing the immigrants get the blame...?