Forum Post: Stop Complaining about the Deficit and The federal reserve and read up on Econ101
Posted 12 years ago on Oct. 28, 2011, 9:05 p.m. EST by jhoffman
(22)
This content is user submitted and not an official statement
To me the deficit isn't really as important as Job creation because our country has a GDP/debt ratio just over 80%, and still maintains a triple A bond rating, and therefore the idea that this country could default is absurd when considering that countries like Japan and Britain also have AAA bond ratings, despite the fact that their GDP/debt ratio is well above 170-180%. Furthermore because recessions naturally weaken the tax base, they are almost always the main culprit in drying up tax revenue and thereby have the greatest impact on our deficit. What caused the previous recession and the 2007 financial crisis? I would place the blame primarily with corporations/investment banking firms that caused all of this, and therefore they are also the primary culprit in causing our tax base to be so weak right now. Fortunately if another stimulus gets passed then the tax base may grow stronger, and therefore bring in revenue.
//The government passed a regulation in 1998 Forcing banks to issue subprime mortgages (or else be sued for discrimination).// you must be thinking about the CRA passed in the 1970's. Those loans are not sub-prime, and secondly they have a low rate of default. //AND when our government has to send Hillary to China to beg for money// Do you know what a Treasury Auction is?
Interesting considering Hilary's long relationship with the Chinese, that they told her no. Do you think possibly that Americans are missing something here in their sense of a global relationship?
The Fed has exclusive control over the money supply. Our money supply was privatized with the creation of the Fed. The Fed creates Federal Reserve Notes and credit out of thin air and they "loan" in to the government and into circulation. Every bill in your wallet and every digit in your bank account is DEBT, loaned from the Federal Reserve. On the debt that they issue as currency, they make interest. Remember, they have no reserves, no money of their own; they merely order the "money" created and then make their profit on the interest. The entire national debt is owed to the Federal Reserve Bank, and the balance (over 14 TRILLION) accumulates interest (their profit) every second. Neither the Fed nor the IRS, their collection arm, are government agencies. The Fed is owned by member banks and their shareholders, and other shareholders not part of the member banks. All shareholders are private. The Fed is a privately owned, for profit corporation, created in 1913, to loot the American people. Prior to their creation, our money was owned by the people and issued interest free, and not for the profit of a private cartel of international financiers. Privatizing our money was as harmful as privatizing all water would be. We need to reclaim the people's money and abolish the private cartel that is raping us. The creation of the Fed was unconstitutional. Our founders warned about our money supply falling into private hands (because this financial cartel has operated for centuries) and the constitution mandates that our money supply belong to the people. Abolishing the Fed would dramatically reduce our debt and restore prosperity to the country.
The Central Bank is an institution of the most deadly hostility existing against the principles and form of our Constitution. . . . I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the Government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs. If the American people ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied.
– Thomas Jefferson
Jefferson never said that. That quote came from a politician in the late 1800s.
more from Jefferson: "The end of democracy and the defeat of the American revolution will occur when government falls into the hands of the lending institutions and moneyed incorporations."
"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs."
"I hope we shall crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country."
More false quotes from Jefferson that he never spoke or wrote See here:
https://www.google.com/search?q=false+quotes+from+jefferson
OK, these are 'spurious' but the following are not:
[The] Bank of the United States... is one of the most deadly hostility existing, against the principles and form of our Constitution... An institution like this, penetrating by its branches every part of the Union, acting by command and in phalanx, may, in a critical moment, upset the government. I deem no government safe which is under the vassalage of any self-constituted authorities, or any other authority than that of the nation, or its regular functionaries. What an obstruction could not this bank of the United States, with all its branch banks, be in time of war! It might dictate to us the peace we should accept, or withdraw its aids. Ought we then to give further growth to an institution so powerful, so hostile?
Everything predicted by the enemies of banks, in the beginning, is now coming to pass. We are to be ruined now by the deluge of bank paper. It is cruel that such revolutions in private fortunes should be at the mercy of avaricious adventurers, who, instead of employing their capital, if any they have, in manufactures, commerce, and other useful pursuits, make it an instrument to burden all the interchanges of property with their swindling profits, profits which are the price of no useful industry of theirs.
there's much more
COOL.
Thanks
:-)
WE MUST FORM A National credit union - only flesh and blood citizens can join !!!
Banks in many ways had more power then than they do today. There was also more sensitivity to interest rates as the result of religious sentiment. And the money supply was spurious and far more volatile. Traditionally, amongst the Virgina aristocracy loans were arranged between friends; there was no need of a bank, and in true gentlemanly fashion, there were likewise no stipulations whatsoever as to repayment, nor even any means of even requesting repayment. It was simply not socially acceptable. Washington was well aware that government could not be financed in such a manner. But there's more... the very fact that Washington serves as the pick, to which all voluntarily defer, allows those such as Jefferson the freedom to adopt the moral high ground. Jefferson was vocal in philosophical opinion, exemplary, but he also deferred to Washington. When you finally get into the mind of Jefferson, you will also realize, as possessed of the very same writing skill, that he manages to speak volumes in obvious silence. And what he has to say there, will blow your mind.
and the rating agencies aren't corrupt ... lulz
seriously ... spend some time @ zerohedge ...
//The Fed has exclusive control over the money supply.// no, they only control the monetary base. This is because the greater money supply is only going to move when individuals start to cash their checks and start spending. For example when the reserve buys bonds from the public they get a check, but this money is not going to spent unless business feels that it is not worth the risk. Thus how does the federal reserve control the money supply if it can only increase if individuals are willing to put the currency into circulation?
Ummmm...were you camping in a park when S&P downgraded US Debt to AA a couple months ago?
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Your post has so many errors I really don't know where to begin. Maybe it's not worth the time trying to correct you, and instead just ask you to Google Walter E. Williams and listen to some of the free college lectures he provides.
I will say this: The government UD passed a regulation in 1998 Forcing banks to issue subprime mortgages (or else be sued for discrimination). That was the start of the housing bubble and when those subprime borrowers could no longer reply the mortgages, the bubble burst in 2008. Had the government not passed the "Affirmative Action Housing" regulation (or else be prosecuted by the DOJ), the subprime crisis would have never happened (because banks don't loan to people too poor to payback).
AND when our government has to send Hillary to China to beg for money, that's how you know we're in sad shape. The EU is now having to do the same thing. We are poor. We are only solvent because China gave the US and EU some cash.
//The government passed a regulation in 1998 Forcing banks to issue subprime mortgages (or else be sued for discrimination).// you must be thinking about the CRA passed in the 1970's. Those loans are not sub-prime, and secondly they have a low rate of default. //AND when our government has to send Hillary to China to beg for money// Do you know what a Treasury Auction is?
No I'm thinking of this 1998 regulation (see the first few minutes of this video). This is when turning-down poor people became illegal, and is the root cause of the subprime default ten years later - http://youtu.be/Lr1M1T2Y314