Think about it. For every dollar I give the Federal government, the Federal
government spends $1000, and charges me the interest on the difference.
Who plays chicken?. With no clear policy in place past June, and the economy
showing worrying signs of slowing again, the stakes are high for Bernanke. For
much of its 97-year history, the U.S. Federal Reserve has been an opaque,
imposing, somewhat mysterious institution that relied on secrecy to hide its
innermost deliberations from global financial markets. No more. In the five
years since the ascension of Chairman Ben Bernanke, Fed board members and
regional bank presidents have been increasingly outspoken about policy
disagreements. Bernanke's testimony to Congress has transformed
"Fedspeak" the imponderable dialect spoken by his predecessor Alan
Greenspan, into plain English. That policy of openness - some have called it
the Fed's Glasnost - will reach a new milestone Wednesday when Bernanke holds
the first regularly scheduled briefing ever given by a Fed chief, kicking off
what is to be a quarterly event. The briefing, to be broadcast live on the Fed's
website and other outlets, will begin at 2:15 p.m. EDT after a regular meeting
of the policymaking Federal Open Market Committee. Bernanke could face a long
list of questions about the Fed's effort to stave off economic disaster.
People proposing state banks and state currencies are delusional. Only the
federal government has the power to print money. As long as Utah is part of this
union we have to play by the rules. I suppose Utah could always secede... but
didn't several states try that a while back? Yeah... see how that turned out.
A state central bank? A state currency? Would Wyoming accept my currency when
I go to buy a Subway sandwhich in Laramie or would I have to carry two
currencies? Can we really live off the grid?
Realistically, S&P would be foolish to lower the US Govt's credit rating. As
we are one of the largest economies in the world, everything we do has an effect
on all the world's nations. If US debt is seriously downgraded it would
essentially collapse the world economy, which is something (I hope) S&P is
particularly aware of.The 50's through the 80's were the military
Cold War, with both sides sitting on "the button" that would end
everything. Now we're in an economic Cold War and the credit bureaus are sitting
on that button. If they press it, the entire civilized world is doomed.
More rediculous political rhetoric from demagogues from both parties who play to
the emotions and fears of the largely cynical, ignorant and irrational populous.
We always hear from those that say the government should live within
its means like a family must do. Well the problem in our country today is that
most families are in debt over their heads, and they want to vote themselves
entitlement benefits that are more than the nation can support. The demagogue
politicians are just telling us what we want to hear.The fact is
entitlements and other areas of government spending need to be brought down to
sustainable levels. The entitlement programs should be a safety net for the
needy not a retirement and universal health plan for everyone. Means testing and
a gradual raising of the retirement age will achieve most of the solution.Families and our government should solve their debt problems, by living
within their means. They should not and cannot solve the problem by defaulting
on their current obligations. That will only make matters much much worse. Reduce spending, bolster the economy with sound policy, lift the tax
base, but do not refuse to pay our debts.
So much that could be said on this. But shouldn't it really be on the opinion
We could cure this almost overnight in the State of Utah. Getting rid of the Fed
is just a start. The smaller banks that spring out from the Fed must stop the
criminal practice of fractional reserve banking. Utah can establish it's own
bank and state currency that is from the people for the people. This pain can be
avoided by creating a state central bank, of which the state pays no interest to
borrow and distribute funds. It will take the people to back it up when the fed,
and their "bought-and-payed-for" friends feel enticed to send troops
to our streets because we value freedom and won't be slaves to their fraud
No matter how this congress addresses the issue of our deficit and spending it
will not change as long as they continue this spiraling economy going nowhere.
Our economic power is beyond saving and we are no longer a world leader. The
death of the American dream is near its end thanks to government debt.What government has done to this country with socialism and what corporate
america has done by deserting its country has put the US in to a reverse
economy. The power and wealth of a nation depends on its industry and production
for its self and the world. The US is no longer a productive self supporting
industrial nation, we are a dependent nation with more poverty than any other
3rd world country. In the last 30 years the only thing this nation has produced
is poverty and welfare. Gradual at first but now it is in a landslide. When most
of a governments budget goes to welfare what can that tell you? The people don't
have enough money to tax them to get the government out of debt. Besides, they
would only be taxing the welfare payments given to illegal aliens and citizens.
All are great and informed comments about the intentional "criminal
negligence" of the Federal Reserve. Be ready to stand as a people as our
federal government self destructs under their own gluttonous power grab. They
will never succeed with their purposes in America. Their days are numbered.
10 years? Add Paulsen and Greenspan and you have the four largest thieves in
modern history. Their actions have robbed trillions and shifted hundreds of
billions. And not just in America. Their work via Goldman Sachs (two of them
alums of) include theft in Greece and Portugal via hidden bonds, etc. And when
they went bad, We The People bail them out. AIG, massive bailout for the same
crew. All of this reported in the pages of the Dnews, but how many read or
connected the dots?If we knew the full measure of the Federal
Reserve we would likely grab pitchforks tomorrow, hence their absolute fight
over being audited.
Seeing that picture of Geithner and Barnache makes me nauesated. Two more
"big business" crooks that have gutted this country in the last 10
Just like any business, there are two things to do, 1. Cut back on expenses and
2. increase revenue. So Congress needs to trim the budget and increase taxes.
Both the D's and R's spend way too much but the tax cuts for the past 20 years
have also left their mark on our debt. If we had the same tax rate as we did 20
years ago we'd have a balanced budget. So it's time to rethink what government
is about, fund what we want it to be, get rid of what we don't want it to be,
and make sure we have enough revenue to pay for what we government we have left.
Our government has adopted the plan to shoot the messenger rather than address
the problem of national debt. Criminal negligence describes the administration's
performance on budgetary matters.
Decent play-by-play with yet another economist kicking the can down the road. He
correctly notes that we are following in the steps of Greece, Portugal, Ireland,
even the UK has shown serious pain. The pain of government greed is evident in
all countries, the big difference is the Dollar. The US is the world's reserve
currency via the dollar. As that implodes it forces a "New World
Order" of austerity on us that will be as shocking as diving into the Great
Salt Lake January 1 at dawn in your boxer shorts. Forgive my play on
the 'new world order' thing but things are going to change. America has played
the balancing act of welfare/warfare state for far too long. It's the 'Republic'
versus 'the Empire' game, and the Welfare/warfare empire is winning.Jeff, I am a subscriber to your newsletter, love your opinion in general. I
hate that you've bought the Geitner line that only mature people destroy the
economy with more debt. Your are more afraid then wrong. You and so many others
hope that this 'kick of the can' actually works. Been saying that for decades
now: Keynes is dead!