Great article - on two counts...

[jtuck004]

If one is operating under the mistaken assumption that the nation must borrow to get money to spend, ponder the words of the Fed
in the first part of this article.

The graphic in the middle of "Bailout vs Public spending" is pretty illuminating on its own. In the author's words...

"The stack on the right is money used for public purpose: The New Deal, for example. The stack on the left is money handed to the banksters in the bailouts. Different, aren't they? Like, the public stack is a lot smaller, and spread over 200 (two hundred) years. And the bankster stack is a lot bigger, and took place all in 1 (one) year. Any questions?"

----------------------

One has to wonder where we would be today if the banks had been placed with the FDIC, old mgmt booted out and new mgmt installed over smaller pieces, and that money used to rebuild manufacturing and create demand in this country. In other words a program that would have performed as if the gov gave a rat's ass about anyone but the bankers...

[RandomThoughts]

1. Yea knew that was going to happen.

Just before it did, there was a 'get the money out' meme on some 'channels'

It was advertised before the fact to some people, that's how I knew it was going to happen.



Basically once they knew a Democrat was being elected, they wanted to get maximum amount of money out of public sectors. Although because of greed and a few other things, it happened in Bush term, not during current Administration like they probably wanted.

[girl gone mad]

2. An excerpt:

The stack on the right is money used for public purpose: The New Deal, for example. The stack on the left is money handed to the banksters in the bailouts. Different, aren't they? Like, the public stack is a lot smaller, and spread over 200 (two hundred) years. And the bankster stack is a lot bigger, and took place all in 1 (one) year. Any questions?

So, indeed, the program was a "success." The banksters and the MOTU put the rest of us peasants on the hook for $22 trillion dollars, kept their jobs, kept their bonuses, never did the perp walk in orange jumpsuits on the teebee for accounting control fraud, and are still too big to fail. Mission accomplished!

But let's return to first principles for a moment:

1. Who creates money? The state. See http://topics.law.cornell.edu/constitution/articlei#section8">Article I, Section 8, at "coin Money, regulate the Value thereof, and of foreign Coin."***

2. Why should money be created? To serve the public purpose. See http://topics.law.cornell.edu/constitution/preamble">the Preamble at "general welfare."

Did Julie Remache and her team use the powers of our state**** to create money for a public purpose? No. They did not. If they had done so, disemployment wouldn't be 10% nominal (20% real), we wouldn't be losing our homes, we wouldn't be getting sick and dying for lack of health care. We might have a Jobs Guarantee. But our money wasn't used for that, now was it?

This is one huge source of frustration to me. The PTB know exactly how money works and they regularly use that knowledge to their own advantage while doing everything they can to ensure that the population at large remains clueless.

Wake up, America.

[TexanRudeBoy]

4. "coin Money, regulate the Value thereof"

No where does that give the government the right to steal money from the public through inflation. Our founders absolutely abhorred paper money backed by nothing because they understood the consequences. What we are experiencing now is the unraveling of nearly 40 years of inflation since the collapse of Bretton Woods. We've been in a constant bubble state for the entire time, never actually allowing a recession to clear the malinvestments from each one.

[Blue Meany]

5. They may have hated it, but Revolutionary War was fought

and one using the scrip that they printed.

[TexanRudeBoy]

6. How do you "one" a war?

Anyways.......

What in the world does that have to do with the destructive properties of fiat money?

Also many, many things early in the Republic were accomplished with slave labor....does that make an argument for slavery?

Logical fallacies FTW!!!!!!!!

[girl gone mad]

7. Inflation is easy enough to combat.

BTW, the collapse of Bretton Woods was brought about by high inflation. Speculative bubbles have little to do with real inflation.

[TexanRudeBoy]

9. LOL

Yes Bretton Woods did collapse due to inflation of the money supply. The same as the dollar standard is collapsing now due to inflation of the money supply. That's the nature of a fiat monetary system. That's why our founders gave no authorization for such a system.

What's "real inflation"?

What is a speculative bubble but inflation of the prices of the assets in that sector? You can buy the government lines all you want, ie that spiking home prices isn't inflation, but its simply not true.

You can't have it both ways. You can't on one hand say home prices skyrocketing isn't inflation and on the other say falling home prices means we're in deflation.

[jtuck004]

8. btw, thank you for posting that graphic.

I had to run an errand, ran out of time.

It sure makes clear the comparative size of what is invested for the public good, vs that spent to prop up various criminal financial interests that may well start all this again. I have handed that to a few people, suggesting that they are mad at the wrong things. It makes people think...

[BrklynLiberal]

3. Get back to this!