Reply #16: I agree we're screwed to benefit the Wall St bankers.

[howaboutme]

Unless we can get our debt levels reversed we will undoubtedly lose world reserve currency status, and then we are going to be in a big pickle without a good way out except for major sacrifices. If we lose reserve status we can't print our way out of a money crisis. We'll be in the same status as the other countries that face super austerity.

This is a result of decades of cutting revenues (taxes) and implementing frivolous foreign policy of fighting stupid wars, often for other nations and special interests, and defending the interests of other nations at our own sacrifice, such as the oil embargo of the 1970s. The latter cost the USA trillions.

The Federal Reserve has rigged the system so that their cronies on Wall Street have benefited.

- First they create a bubble (housing) because of absurdly easy money,
- then they allow bankers such as Goldman to encourage commodity prices to rise (through CTFC exemption) by encouraging speculation,
- that $150 oil pricks the economy and the bubble,
- stocks and asset prices fall,
- public sells on the cheap, retirement money lost
- investment banks get bailed out with taxpayer money and Fed Reserve access,
- investment banks become chartered as commercial banks to get access to the Fed printing presses via discount window,
- investment houses push up stock prices and buy up other distressed assets on the cheap,
- bankers profited with predatory ill gotten gains and now they will profit again but only because of taxpayer help,
- Fed Reserve initiates QE2 to expand their balance sheet and print money to subsidize US Treasuries, keep interest rates low and push stock market. Bankers win again at expense of US Dollar and taxpayers
- dollar weakens, commodity bubble created as food, energy prices rise again
- bubble breaks again???