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We Are Now Paying for the Destruction of the US Dollar and Economy… Literally

Phoenix Capital Research's picture





 

 We just hit
another milestone in insanity.

 

I’ve written
before that thanks to its QE lite and QE 2 programs, the Fed is now officially
the single, largest owner of US debt. However, even that nonsense pales in
comparison to the Fed’s latest accomplishment, that of owning over $1 TRILLION
in US debt.

 

That’s
right, as of yesterday afternoon the Fed now owns over $1 trillion in US debt. This amounts of over 7% of the US’s total
debt, own by our central bank.

 

Now, many
commentators have pointed out the various ways in which this policy has
endangered the US’s balance sheet, economic clout, and currency. However,
there’s one element that NO ONE seems to have picked up on. That is…

 

You, me, and
everyone else in the US, is now PAYING the Fed for its insane, anti-Middle
class policies.

 

Remember, we
are continually paying the debt via interest payments drawn up from tax
receipts. Thus, by buying up US Treasuries, the Federal Reserve is in effect
reaping interest payments from the US populace.

 

Now,
consider that none of us had any say in the Fed’s policies, nor the appointment
of our esteemed Fed Chairman, Ben Bernanke. None of us voted for him. None of
us influenced his policies. And, at this point, virtually none of us approve of
what he’s doing.

 

But ALL of us are NOW paying him and the
Fed for doing it.
In fact, because the Fed is officially the single,
largest owner of US debt, the Fed is, in effect, raking in more money from our
debt situation than ANYONE else on the planet.

 

Thus, we are
paying LITERALLY for the insane policies of the US Federal Reserve. Never mind
abstract arguments of “paying” for the Fed’s mistakes in the sense of the US
Dollar collapsing or the US’s economy imploding. We are LITERALLY paying
BILLIONS in interest payments to the Fed.

 

This in turn
means we are:

 

1)   Helping
the Fed to continue destroying the US Dollar

2)   Funding
the Fed’s bubble-blowing efforts

3)   Financing
the very same policies that have eviscerated the Middle class and retirees

 

 

Given that
we have no vote or say in the Fed’s actions, I know of only one way to deal
with this situation and that’s to buy assets that will maintain their
purchasing power and produce REAL returns to counteract the Fed’s anti-Dollar
policies.

 

Good
Investing!

 

Graham
Summers

 

PS. If
you’re getting worried about the future of the stock market and have yet to
take steps to prepare for the Second Round of the Financial Crisis… I highly
suggest you download my FREE Special Report specifying exactly how to prepare
for what’s to come.

 

I call it The Financial Crisis “Round Two” Survival Kit.
And its 17 pages contain a wealth of information about portfolio protection,
which investments to own and how to take out Catastrophe Insurance on the stock
market (this “insurance” paid out triple digit gains in the Autumn of 2008).

 

Again, this
is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.

 

PPS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.

You can
access this Report at the link above.

 

 

 


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Thu, 12/23/2010 - 02:37 | Link to Comment alexwest
alexwest's picture

##. We are LITERALLY paying BILLIONS in interest payments to the Fed.

yep most funny thing...

feds dont have money  but buy bonds,

then feds get coupon money

then fed put money  into federal bidget..

ola la la.. deficit is less ... life is beatifull..

well what is the reason to work anwyay ??? lets FED buy all bonds and  finance

budget deficit

 

alx

Wed, 12/22/2010 - 23:23 | Link to Comment GoinFawr
GoinFawr's picture

Wow, home values go down, but property taxes go up... those US pluotcrats sure are out to eviscerate their middle class support team.

 Heh, even the French wouldn't put up with that for long, their middle class is at least smart enough to enlist the poor.

Not in America. There it's like what George Carlin said about "the elitists keeping the poor around to scare the hell outta the middle class."

You buncha genetically modified, short-tempered and kinda-dumb, duped Babbitts.

Bonne Chance!

Thu, 12/23/2010 - 21:14 | Link to Comment chopper read
chopper read's picture

land of the free.  ;)

Wed, 12/22/2010 - 23:20 | Link to Comment Madhouse
Madhouse's picture

Wow. I think a few did not get the point. When the panic starts (easily started by the Chinese), at first the Fed will pretend it is gladly buying from spooked sellers. But rates will continue to rise. Gold will soar to 2200. Why ? We are bankrupt and we are the only madhouse on the planet that can buy its own worthless debt. Look at the insane last few days: cheering for "Don't Ask Don't Tell", a topic brought to light because of an insanely bloated military (I'm not against the bill but this is #500 on the list of items needing fixing in this country, not #5), for Salt, $85 billion for nukes that won't ever matter (psss, you'll be dead the day they are used and so will all the Russians, it won't matter a shit that half em' won't work) plus $800 billion in tax give aways.

Anyone notice that Washington, at the height of its insanity, just shoved down a few more giant debt cocktails and called it another successful year  ?  Feeling great, yeah ! 

Of course few did.

PS: A truckoad of Jack Daniels bot today will be worth a lot of gold in 10 years..

Wed, 12/22/2010 - 22:23 | Link to Comment YHC-FTSE
YHC-FTSE's picture

 

Has anyone actually tried to work this out from the Fed's (Bernanke's) point of view? Like everyone else I've been scratching my head wondering how, pushing the dollar into tp value, inflating the markets, and propping up failed banking institutions will work to keep their mandate: raise employment and keep prices stable. But despite all evidence to the contrary, their actions still somehow make sense to the Fed because they keep doing it! Why? 

 

I wrote a post about "Debt as Wealth" a few years ago, and in it, I basically mourned the passing of tangible assets as investment vehicles that had been usurped by shadow financial instruments - Investments that aren't even real, but vaguely related to real things. The vaguest and most unreal of them all were, yep you guessed it, MBS's. The asset-backed synthetic securities market, of which CDOs were the main feature, gave returns several points above the average, and were the darlings of all the clever boys and girls who repackaged them in pretty ribbons, sent them to the insurers to get them stamped AAA, and resold them to suckers all over the world. (Including me).

 

On the surface, what better investment than an almost guaranteed income from house owners in the wealthiest country in the world, backed by real assets that grows in value year by year? Win-win, right? Yeah, a real winner like the Titanic. 

 

The reality of the situation is, when a house buyer signs the mortgage papers on his new house, the moment the ink dries, those papers instantly become an "Asset" to the bank. The moral implications of selling and buying an "Asset" of this type will dawn on you when you consider that what this asset represents is a slice of that house buyer's working life (10 to 25 years) and his/her legal obligation to pay a proportion (Usually sizable) of his/her wages to the holder of the debt. On interest-only payment mortgages, the debtor will still owe the principle of the loan after 10 to 25 years of hard graft.

 

That's the reality and this is debt as wealth. The holders of this type of asset class grew wealthy, the market demanded more of it, and so they made more of it by signing up crackheads to own their own homes. One of the ultimate humiliations of a human being is peonage, and even worse is to have their debt obligations bought and sold on the open market as though they were mere slaves. But that's exactly what these securities are! They are a form of voluntary slavery/indentured labour: Debt bondage and contract slavery. Ordinary middle class people with aspirations thought they were signing a contract between them and their local friendly bank. They didn't count on the massive amounts of reselling, diversifying, and insuring derivations of their simple loan to buy their dream house. (Which made the banks more money than they could have dreamt until the house prices went down, the crack heads defaulted, and ordinary people got caught up in the maelstrom of the economic downturn). I am beginning to understand the people who are leaving the USA and urging others to do the same. Staying is like agreeing to indentured labour.

 

The simple fact of the matter is, despite the best efforts of certain sections of our society to make money lending respectable, debt is not an asset and it should never have been classed as one. But I have a strange feeling that is precisely what Mr.Bernanke and others of his ilk still think. I reckon that as they are buying up the debts, they feel they are getting richer in "Assets", and as they flow magic dollars into the markets through their 18 banks, they feel like they are being magnanimous in allowing the world to share more debt, whilst giving their friends free money to shop around the stock exchanges. So, in the ideal statistical world Mr.Bernanke resides, the working population will simply grow, pay more taxes, produce more goods, and for the next millennia work their fingers to the bone to give profit to the already wealthy. And if some of his ultra wealthy banking friends deign to trickle some money down to the peasants to give them a livelihood, it's a bonus. By these acts he thinks he will achieve employment and price stability. Someone should tell him that in real life, there is no such thing as ceteris paribus. 

 

Wed, 12/22/2010 - 21:29 | Link to Comment Buck Johnson
Buck Johnson's picture

This isn't going to end well and many in the world knows it.  Eventually we will have hyperinflation in the US, and when that happens those checks we work for will be almost worthless.  Eventually their will be an event that pushes this whole system down and shows that it was just a house of cards.  And then everybody will be rushing out the same door but not enough room.

Wed, 12/22/2010 - 21:47 | Link to Comment BigDuke6
BigDuke6's picture

Things are gonna go downhill but i don't buy the wiemar, guns and ammo, shit hits the fan stuff.

People are way too fat and lazy now.

They'll just eat shit and watch their standard of living slide slowly down the gurgler.

While apple and globalised companies are happy to pay a nominal amount to USA inc for their welfare to stop the riots.

Ancient Roman proverb.

'When men start wearing make up - you are 20 years off being invaded.'

i think its about being weak.

Wed, 12/22/2010 - 22:04 | Link to Comment Uncle Remus
Uncle Remus's picture

3%

Wed, 12/22/2010 - 20:58 | Link to Comment BigDuke6
BigDuke6's picture

Lets stop knocking Ben Shalom Bernanke.

He's the dude partly responsible for my gold getting shinier year after year.

My retirement fund is goddam 50% gold miners and is doing nicely.

And i know i'm not alone brudders. 

a high US dollar only allows your geriatrics to get off cruise ships and buy tons of shit to take home. and you're only going to have to start paying for gas what the rest of the world has been paying for years.

what is that compared to my stash value?

Wed, 12/22/2010 - 20:50 | Link to Comment dizzyfingers
dizzyfingers's picture

Is there any sign of a critical mass and/or a tipping point through which something will happen?

Wed, 12/22/2010 - 21:44 | Link to Comment penisouraus erecti
penisouraus erecti's picture

I'm no expert, but I play one on TV. All kidding aside, I feel the tipping point is going to be when enough countries quit using/recognizing the USD as the worlds reserve currency.

How exactly, or when exactly, I do not know. I believe the Arabs are using several currencies now instead of pricing only in USD. Eventually they will quit accepting USD in favor of some other less worthless currency(ies).

At that point the ponzi scheme of running the printing presses overtime will end, and end badly. IMHO anyways.

Wed, 12/22/2010 - 20:36 | Link to Comment honestann
honestann's picture

Power corrupts, absolute power corrupts absolutely.

Remember that saying?  Well, the FederalReserve has managed to improve on that saying.  They not only have absolute power to create their fraudulant "money", but as they insist, they can also exercise their power in absolute secrecy.

What a combination: absolute power and absolute secrecy.

Yeah, no problem there, right?  Sheesh are humans dumb.

Wed, 12/22/2010 - 20:09 | Link to Comment The Alarmist
The Alarmist's picture

Yeah, well, the Oreos I bought a year-and-a-half ago for $2.85 now cost $4.05, and the strip steak that used to cost $9 now costs roughly $14.  We've been paying for this for some time already, and the interest is just the icing on the cake.

Wed, 12/22/2010 - 20:52 | Link to Comment dizzyfingers
dizzyfingers's picture

Outside Chicago a tank of gas for a Hyundai Sonata now costs about $50.

Wed, 12/22/2010 - 19:29 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Very simple.  The more they print the more they make.  If I was the FED I would print as much money as possible.  Because the more money I printed the more I would make.

It appears that the Crisis which I happen to believe was manufactured was so they could continue to print money.  Where is the money they print going.  To the Banks of course, especially the Banks that are the Owners of the Federal Reserve.

So, it makes sence from the FED's standpoint.  Print more Money give it to the Banks that are part of the Federal Reserve and charge the bill to the American People.

How else would you take the Wealth of a Nation while they were not watching.  They are litterally taking America's Wealth, giving it to themselves (the Banks that are a part of the Federal Reserve) then turning around and collecting not only the Debt created but the Interest from the American People thru Taxation.  They even have the IRS that will seize people's house and all property to pay them and then put them in Jail.  How much better could the FED have it.

It has become very obvious that the FED and the Member Banks want to control Ameria and its Citizens forever.  Yet, I do not think they will stop there they will in my opinion make sure that we lose our Soverenty.  As they will control the World Bank and in addition America and its Citizens.

Thu, 12/23/2010 - 21:00 | Link to Comment chopper read
chopper read's picture

this is why they despise the U.S. Constitution, and buy with their counterfeit fiat all politicians who promise to trample it. 

Wed, 12/22/2010 - 16:56 | Link to Comment gerryscat
gerryscat's picture

It is all explained in the 10 year old documentary "The Money Masters - How International Bankers Gained Control of America"

Wed, 12/22/2010 - 16:59 | Link to Comment SheepDog-One
SheepDog-One's picture

So now everyone knows about it, anyone with a brain anyway...the question is now what are we going to do to stop it? 

Wed, 12/22/2010 - 20:17 | Link to Comment honestann
honestann's picture

Well, they've pretty much rigged the game so nothing conventional we do has any impact on their predatory scams.

However, we CAN and most certainly SHOULD opt-out --- to the extent we can.  And indeed, we can opt-out in one very important way.  We can convert all our paper assets into real, physical gold, silver, and other durable goods.  In other words, we can and should abandon their fiat, fake, fraud, fiction, fantasy, fractional-reserve debt-ridden toilet paper for savings and holding our wealth.

Sure, when you buy things, you might find it easier to convert some of your gold or silver to cash once each month or three, to buy with cash or pay your credit card bill.  Or just pay with gold and silver when you can.

After 3 years of experiments, I found that I can exchange physical gold or silver bars or coins for 96% of expenditures.  Yes, it took me a while to figure out how to best convince them to accept gold or silver for my purchases.  And yes, I do deal with those who accept gold and silver in preference to other places who "can't be bothered" (though I refuse to pay more just to transact in gold or silver).

But the most important point BY FAR is... convert all your savings into real, physical gold, silver or other durable goods.  You help move the world towards a new gold standard, you tend to thwart the central banks, you protect your wealth, and you avoid being totally screwed when the predators-that-be in DC decide to surprise everyone someday, declare a bank holiday, and steal a large portion of your wealth.  They are already starting to do this with retirement accounts, so cash ALL your retirement accounts in, take a one-time hit if necessary, and convert all your paper wealth into physical that is totally under your own control.  Which means, do not keep your wealth in bank safe deposit boxes!!!

Wed, 12/22/2010 - 22:00 | Link to Comment Uncle Remus
Uncle Remus's picture

nothing conventional we do has any impact on their predatory scams

ergo...

Wed, 12/22/2010 - 19:12 | Link to Comment mynhair
mynhair's picture

Never vote for an incumbent, for starters.  Vote for the lamest running.

Like OBummer.....oh, hold on....

Wed, 12/22/2010 - 16:33 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Commoner senior citizens know who The Bernank is and are getting pissed. There are articles in the Lame Stream Media now about how retirees and seniors are blaming The Bernank for their terrible household budget ("let them eat catfood," retorts The Bernank).

I think these lyrics from a recent pop song, will reflect The Bernank's mindset once the crisis hits:

One minute I held the key
Next the walls were closed on me
And I discovered that my castles stand
Upon pillars of salt and pillars of sand

Revolutionaries wait
For my head on a silver plate
Just a puppet on a lonely string

Oh who would ever want to be king?

Wed, 12/22/2010 - 16:26 | Link to Comment proLiberty
proLiberty's picture

Allow me to add that under SOX, the value of a public corporation's assets must be fairly valued and reported on their annual financials.  What is one share of the Federal Reservee Corporation worth?  How would the Federal Government go about purchasing majority control, and how would it create the money to purchase the shares?  And if someone like Ron Paul introduced legislation to repeal the Fed's federal corpoate charter, would the Fed file suit on grounds of a Taking?  

This is ROFL funny and world-class pitiful at the same time.  It is time to end the Fed.  For that matter, it is time to return to using gold as money.

 

Wed, 12/22/2010 - 16:54 | Link to Comment SheepDog-One
SheepDog-One's picture

Its definitely time now, and theres very little time left. Next up is the collapse into global slavery 1 world govt, 1 world currency 'cashless society' your life on a chip in your arm. They have it all planned already, and nothing really stopping them now, they can pull the popper anytime they want really, what or who is to stop them?

Wed, 12/22/2010 - 17:32 | Link to Comment Bob
Bob's picture

Revise that vision, SD1.  The chip in your arm is so passe.  More than that, it is effectively a red herring.  The electronic currency thing is good enough.  That way your arm remains your own problem, and may you celebrate not having a chip in it, but you won't have money any other way but on a card. And those $600 1099's will be constructed in the background, automatically. 

Currency?  Why simplify things with a single currency?  The divide and conquer action between nations will remain essential to TPTB.  Read 1984.  There won't be a formal NWO.  I guess we could embrace that as another "victory."  Just another red herring, though, imo.  No doubt it will be sold to us as a great victory--probably as the cost of "freedom" or something equally precious.

Thu, 12/23/2010 - 20:55 | Link to Comment chopper read
chopper read's picture

interesting point-of-view, Bob.

Wed, 12/22/2010 - 16:24 | Link to Comment GoldSilverDoc
GoldSilverDoc's picture

As much as I hate the FED, this post is mostly hype and BS.  Shame on us, Zerohedge, for posting this kind of drivel.

All profits of the FED are returned to the Treasury, after it funds its operations.  Therefore, the interest paid on the bonds which the FED owns, which produce the profits of the FED, are then paid back to.... the Treasury, which is the place where the interest came from.

Yes, the FED sucks.  It is evil, it is bad, and it should be abolished for numerous reasons.  But this one is a bad one to parade around, unless you are hoping everybody you are parading in front of is ignorant.  Not the best audience choice.

 

-1000

 

Wed, 12/22/2010 - 20:44 | Link to Comment honestann
honestann's picture

How incredibly naive!

The FederalReserve is owned by JPMorgan, GoldmanShafts and other big banks.  So, when the FederalReserve prints zillions of dollars, hands it on platters to the international ganster banksters who own them... and therefore has little to none left to "return" to the Treasury --- you think that's just fine.  Holy crapola!

Why do you think the FederalReserve scrams so loudly and often that they must have absolute power and absolute secrecy?  Duh.  Because then it would be totally documented (as well as it is obvious already to anyone with at least 10 functional neurons) that they are 100% self-serving megalomaniac predators.

Give us a break.  Stop drinking koolaide.

Thu, 12/23/2010 - 20:53 | Link to Comment chopper read
chopper read's picture

exactly.  nevermind the 'transparency' that allows the International Banking Cartel to front-run the U.S. Treasury Bond market to unspeakable $Trillions.  This is the greatest ongoing theft in the history of mankind.  

Wed, 12/22/2010 - 19:09 | Link to Comment mynhair
mynhair's picture

"funds its operations"

Junk you, and junk the dip you rode in on.

Wed, 12/22/2010 - 16:57 | Link to Comment SheepDog-One
SheepDog-One's picture

YES the FED and guys like Bernank always follow the rules, for instance theyll never monetize the debt as thats illegal and The Bernank swore under oath he'd NEVER do such a thing, ever! Oh, wait....

Wed, 12/22/2010 - 16:19 | Link to Comment Everyman
Everyman's picture

I love the movie "The last Boy Scout" with Bruce willis.  The movie is about corruption in sports, but it is applicable here as well.  Just put "Ben Bernake" in for the "Senator in this memorable quote from the movie

Sheldon 'Shelly' Marcone: The commission's gonna vote next March. I got every one of 'em in my hip pocket, except Senator Calvin Baynard. I tried to bribe that son of a bitch, Joe. He gave it back because it wasn't enough.
Joe Hallenbeck: [chuckles] What's he want?
Sheldon 'Shelly' Marcone: Six million. Or he'll go straight to the police. You know, I think it's just gonna be cheaper to kill that son of a bitch.

 

 

Wed, 12/22/2010 - 16:18 | Link to Comment proLiberty
proLiberty's picture

The Federal Reserve is a federally chartered corporation whose shares are entirely owned by the member financial institutions in proportion to their capital.  The Federal Government does not own an single share.  The Fed voluntarily returns any excess profit to the US Treasury. 

Thus, we have authorized the banks to inflate our wealth to their benefit with only the assurance that some of it will end up in the Treasury.  This is especaily tyrrranous when coupled with a tax on the nominal changes in the value of the dollar that only reflect inflation and not real increases in wealth.

The Fouding Fathers would have considered that had any foreign power attempted to impose such a grand theme of theft to be an act of war.  And in truth, our own government is at war with its citizens to maintain its position as optimum paraiste.

 

Wed, 12/22/2010 - 20:08 | Link to Comment slvrizgold
slvrizgold's picture

Right you are Proliberty.  The FED is at WAR against US citizens and the Constitution.   Time for oathkeepers and others to DEFEND against ENEMIES FOREIGN AND DOMESTIC.

We need to raise general awareness of how the Fed is thieving and treasonous creation.   How socialism leads to Communism and loss of property rights.   How a growing govt kills liberty of its citizens.

 

Thu, 12/23/2010 - 20:49 | Link to Comment chopper read
chopper read's picture

our own government is at war with its citizens

 

exactly.  first thing is first.  end the fed.  then, we go after every Constitutional oathbreaker for treason until each is tried and hanged for treason.  

Wed, 12/22/2010 - 19:30 | Link to Comment lincolnsteffens
lincolnsteffens's picture

Bravo, well said. The perfect wealth confiscation scheme. Establish a capital gains tax. Inflate the currency and take some of the inflated dollars in tax when the item is sold.

Wed, 12/22/2010 - 16:15 | Link to Comment steve2241
steve2241's picture

Isn't the Federal Reserve, by law, required to remit back to the U.S. Treasury any interest that it earns on U.S. Treasury debt??? I believe it is.

Wed, 12/22/2010 - 16:51 | Link to Comment SheepDog-One
SheepDog-One's picture

OH well then theyll certainly do it Im sure. Along with never monetizing the debt.

Wed, 12/22/2010 - 15:51 | Link to Comment chopper read
chopper read's picture

a lot of us have picked up on this, we simply do not have the forum to be heard.

http://www.zerohedge.com/forum/plot-enslave-you

none-the-less, nice of you to join us. 

Wed, 12/22/2010 - 15:34 | Link to Comment GottaBKiddn
GottaBKiddn's picture

How rude! Did somebody just wake up PCR?

Wed, 12/22/2010 - 15:26 | Link to Comment Gully Foyle
Gully Foyle's picture

Black Dynamite: I guess you forgot about the time you and Bravo company left my black ass for dead, huh? But I remember. I remember everything. I remember Vietnam like it was yesterday. I remember that village in Tainan that we cut down. It was a massacre. All the dead Chinamen we left in our tracks. I remember the faces, the children. This one child I'll never forget. Poor little bastard was still alive. His little Chinese legs were blown clean off! Still see his little shins & feet hanging from the ceiling fan across the hut. He was charred from his head down to his little Chinese knees. He tried to get up, but he fell over when what was left of his right leg broke off. As he laid there, flat on his face, he looked up at me. His little Chinese eyes burned right into my stomach, deep into my soul. He said something to me in Chinese like, 'Boo coo sow!', sounded like some cartoon shit. But I understood it to be a question that he was asking me. And I don't have to know how to speak Chinese to know what that question was. 'Why, Black Dynamite? Why?'
[Long pause]

Wed, 12/22/2010 - 16:40 | Link to Comment Bob
Bob's picture

+100

Wed, 12/22/2010 - 15:19 | Link to Comment AnAnonymous
AnAnonymous's picture

Has the author any data to back up the fact that the FED is reaping more interests than usual through US tax payers collection?

Because downturn, holiday taxes, tax cuts, lower collection while borrowing more and more would require a meaningful increase of the share of collected taxes allocated to debt repaiment for the author delusion to be true.

So what are the data?

Wed, 12/22/2010 - 15:53 | Link to Comment chopper read
chopper read's picture

no 'data' needed.  this is a simple function of how a debt-based monetary system works.  we are getting robbed by central money planners who promised to eliminate boom/bust cycles who have, in fact, achieved the opposite effects.

 

http://www.zerohedge.com/forum/plot-enslave-you

Wed, 12/22/2010 - 17:26 | Link to Comment AnAnonymous
AnAnonymous's picture

Well, for the moment, all that can be seen is that the US uses funny money that ends buying things from an outside.

That the operation does not go without damage for US citizens, okay. Still an ocean between what the author implies and what looks like the reality.

 

It seems to me that over the course of years, in spite of a huge surge in the amount of debt, the interests paid on the US debt remains quite steady.

People who are able to multiply by ten their debt while only multiplying by two the interests on it do not make the worst of deals.

Wed, 12/22/2010 - 15:17 | Link to Comment flattrader
flattrader's picture

Here's something fresh.

A Christmas Present for the END THE FED crowd.

http://www.dailypaul.com/node/72873

http://globaleconomicanalysis.blogspot.com/2010/12/fatally-flawed-end-fe...

Ho, ho, ha, ha, ha.

Thu, 12/23/2010 - 15:09 | Link to Comment flattrader
flattrader's picture

Gee, I thought the END THE FED crowd would be cheering than Rep. Dennis Kucinich proposed legislation to do just that.

Ron Paul didn't step up.

Or are the chirping crickets a function of "Becareful What You Wish For?"

Fri, 12/24/2010 - 01:30 | Link to Comment hugolp
hugolp's picture

Kucinich is not trying to end the Fed, just trying to have a Fed with more political control. Its not really a change os system, just a regulatory change on how to control the Fed.

He is framing it as an End the Fed legislation to fool the people that support ending the Fed and gain support for his legislation.

Wed, 12/22/2010 - 15:04 | Link to Comment hugolp
hugolp's picture

The Fed returns its benefits to the Treasury, so in reality you are paying the Treasury.

Wed, 12/22/2010 - 17:08 | Link to Comment William F. Dulle
William F. Dulle's picture

The Fed returns its profits to the treasury, profits which are breaking records year after year. But, member banks get a fixed 6% dividend every year, which I assume is also breaking records. They're not doing it for free, believe me.

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