Forum Post: The Whole Economic Problem is created by the Central Banks (FED here in the USA)
Posted 13 years ago on Oct. 15, 2011, 9:14 a.m. EST by ShawnHydeDOTcom
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FED Prints 100 Billion and lends it out to banks and governments at 1%,
After 1 year, banks and government owe 101 billion however only 100 billion exists so they are forced to barrow again from the Central Banks/FED(which is an independent corporation that we are not allowed to audit). Year after year and we owe Trillions of dollars to the FED that cannot possibly be paid back.
How much do the people running the fed pay themselves?
In order to compensate interest rates and taxes go higher and higher even though the fed lowers the rates the banks and governments continue to raise the rates on the 99% because only the ultra rich have access to the 0-1% rates. that they can borrow and change 20% on with a profit of 19%.
Sure the banks paid back the bailout but they charged the people who gave them that bailout 19% interest in return.
What is the solution?
We need a stable currency that is not handed out to only the ultra rich. We need a solid conservative government that is not wasting our money on wars and massive programs that waste more than half of the money before it even gets used.
If money is going to be printed it needs to be handed out evenly across all citizens of the United States. No snowball interest based system. Just a flat we are printing x $'s and every citizen gets a check for their fair share.
Without these two simple changes we will fall as a nation, more people than ever cannot put food on the table, pay their bills or get a job. Unemployment numbers are inaccurate due to the unemployed being unemployed for so long.
That is an interesting approach. Seriously. I'd also check out www.monetary.org. Those folks want to nationalize the fed and used the funds for public purposes(i.e. infrastructure like roads/bridges) -but your approach assures things would even out from day one. I think a polls on this would be interesting.
That said, the fed is only part of the problem. Fixing it would mean $500 Billion/year or so in the pockets of ordinary Americans. The thing is, the fed isn't totally plutocratic as is-not all of the funds are completely squandered. The upper 1% control 40% of all assets-which is an even bigger issue. We are looking at about 25-35 Trillion in in assets which is about a $1000 Billion each year to service those folks. If we nationalized the fed and taxed assets of the top 1% at 3% above $5 Million, we could write every man woman and child in the US an annual check for $5000-which would completely elminate poverty in the US-and would impose no additional taxes on 99% of the population.
The US economy is like a casino-and the very rich-and a few institutions like the fed are the house. The thing is: the trickle up effects in the present situation are so huge, the very rich might not be any worse off in monetary terms. Their taxes would raise, but their net worths wouldn't decrease that much because eliminating poverty would cause property values and consumer demand to rise. We'd probably decrease certain kinds of crime too. (Charles Murray talks about this in In Our Hands).