Billions of Dollars pumped in overnight? Where is it coming from?

by restrangled 76 Replies latest jw friends

  • BurnTheShips

    People, think about this for a second:

    We the people become more productive over time, all the time. We use our brains and brawn to learn to make better things and more cheaply all the time. Unless there is a monopoly prices drop. Look at computers for example and what happened with price and performance over the years.

    What should be the reward for our collective ingeniousness and hard work?

    Lower prices.

    Easier living.

    Most things should cost less over time, not more.

    Fiat currency inflation robs us of the fruit of our labors. It is a stealth tax.

    The machine keeps us running in the hamster wheel.


  • Dagney

    I am watching the interest flux today. I borrow at work using Libor and Banker's Acceptance rates.

  • drwtsn32
    True, but gold has the longest track record of any medium of exchage as a store of wealth. [snip]

    All excellent points. I do realize gold's value is much, much more stable than the US currency could ever hope to be. Hopefully we won't ever be able to make it out of thin air. :)

  • Brother Apostate
    Brother Apostate

    I think this is just the beginning of pangs of distress. Who said that?


    Yes, pangs of distress, indeed. Babylon the Great has cast her spell in the form of worthless fiat money, and most people remain committed to running in the hamster wheel, trying to make more worthless money, all their lives. As Christ said, you can not serve God and Mammon. You must choose one or the other. Choose wisely.

    Oh, and by the way, your dollar just got seriously devalued by the bailing out of AIG, Fannie Mae, Freddie Mac, etc.


    . But at least in the case of AIG, the 18 billion dollar loan has an 11% interest rate. Also, the Feds are holding 80% of AIG as collateral. AIG is a trillion dollar company, so that is good security. The Feds might actually profit off this in the end. Let's hope so.


    Well, to simplify it, let’s focus on how the Fed works. In order to loan AIG 18 billion dollars, they must pay the Treasury to print 1.8 billion dollars in currency. Assuming the mean bill to be printed equates to a 20 dollar bill, then the Fed pays the treasury 1.8 million dollars (1.8 billion/20*.02) to print that money so the loan can be made. Now, I’ll break this down into three issues:

    1- AIG now pays the Fed around 200 million per year in interest (simple interest since the term is unknown). So the Fed makes around 198 million dollars per year for this "loan" that they created out of thin air. Keep in mind that the Fed is a privately owned corporation. Now, do the math on Fannie Mae and Freddie Mac. The Fed gets paid interest on those bail-outs as well, of course.

    2- If there is 10 trillion dollars in circulation, and the Fed pays the Treasury to print 1 Trillion dollars, they just devalued the dollar in your hand, the one you work for, by 10%. But, since it is truly worthless already, based on faith alone, your really just like Pavlov’s dog. Except the dog actually got something of value.

    3- The Ponzi scheme is being exposed, and the only Presidential Candidate running on a platform that would abolish the Federal Reserve is Ron Paul. But as long as people choose to remain ignorant of what is causing the problems, they will vote for the candidates the elite have propped up through their lobbies- Obama or McCain, two sides of the same coin.

    Brother Apostate:
    I looked up what you said and it seems to be very true..... for those doubting see the following link.

    That link is misleading, as it states that the Fed is not a privately owned corporation.

    This link tells all the juicy details that the foxes guarding the henhouse don’t like folks to know:

    I'm not a big fan of Keith Olbermann on MSNBC, but he was really nailing Rupert Murdoch for saying it was good for these banks to be suffering losses.

    As BTS stated, there should be no bailout for failures. Fannie Mae, Freddie Mac, AIG, should all have been allowed to bleed to death. This move by the Fed will only encourage more failures. As I stated previously, look for around 1000 failures by the end of 2009. Interesting that the CEOs of the two failures, Fannie Mae's Daniel Mudd and Freddie Mac's Richard Syron, will each get around 7 million as part of a severance package for failing miserably. Rewarding failure only encourages more failure.

    Perhaps he is one of the owners of the Federal Reserve.

    No, the owners of the Fed (Rothschilds, Rockefellers, Morgans, Lazards- full list here, though it’s out of date: ) are craftier than that. They create a weak economy by manipulating markets, then wait for the failures to occur, then profit from loans to and bailouts of the failures. It’s the elites way of getting richer while they devalue your money, making you poorer. Fun stuff.

    My mom and Dad grew up during the Great Depression. Their Mantra was pay off your home as soon as possible and stay out of debt. They kept their money out of the stock market. They followed their own advice. My father is gone but my mom at 74, is very financially secure....home paid for and no worries of losses in the market.


    That’s good advice, and everyone should follow it.

    BA- Enjoy.

  • 2112

    Brother A is so right on.

    Thomas Jefferson warned about allowing a private banking institution having control of our monatary system, but hey what did he know?

    It is true we never learn. Too many Americans just sit back and expect some one else to fix everything and to do it befor ethe next commercial. Then they just bitch and moan when nothing ever changes.

  • sammielee24

    Interview with Amy Goodman of Democracy Now..partial due to length..

    AMY GOODMAN: Meanwhile, John McCain tried to strike a populist tone on the campaign trail.

      SEN. JOHN McCAIN: While employees, shareholders and other victims are left with nothing but trouble and debt, the people who helped cause the collapse make off with tens of millions in severance packages. Disgraceful. I’ve spoken out against the excess of corporate executives, and I can assure you that if I’m president, we’re not going to tolerate that anymore.

    AMY GOODMAN: Professor Hudson?

    MICHAEL HUDSON: That’s his constituency. His constituency are the people who have caused the crisis. That’s who he’s representing. Now, of course, you’re not going to come in and say, “I’m going to support the people who have caused this crisis at your expense.” If you’re going to bail out your constituency, you’re going to say exactly the opposite. So what he’s saying has no reality at all.

    These are the people who sang, “There’s no money for Social Security. We’re going to have to privatize it. We’re going to have to turn over your Social Security to Bear Stearns, to AIG”—to the very people who have shown how they’re mismanaging money. Imagine if the Republican program had gone through and Social Security had been privatized and these were the jokers who were managing your Social Security. They’d stick you with the losses.

    So, these are his constituency. He knows he’s not telling the truth. He’s not paid to tell the truth. He’s pretending that it’s a crisis that has to be bailed out, that it’s the financial system. But it’s not the financial system that’s being bailed out; it’s the debt system. And it’s the debts that the homeowners own and the industry owns. And now the government is coming on the side of the creditors, who are going to close down the industries, sell them off to pay the debts, foreclose on the houses, sell them off to pay the debts. And the economy is going to shrink and shrink. That’s the program that they’re standing for.

    AMY GOODMAN: They’ve always said that Social Security can’t be bailed out, but that it’s going broke.

    MICHAEL HUDSON: That [inaudible] bailout. They’ve already spent $5 trillion in the last two weeks to double the size of the national debt by taking over Fannie Mae. How can they bail out the gamblers, how can they bail out Wall Street and not—and claim that the Social Security system doesn’t really exist? They’ve used the Social Security money basically for the bailout. There it goes. They’ve made a choice. The choice is to bail out Wall Street against the people.

    The Treasury is supposed to represent the government and the economy, and the Fed is supposed to be the board of directors of commercial banks, but now Wall Street plays both sides of the game. It not only supplies the heads of the Fed; it supplies the Secretary of the Treasury. And that’s why I said the class war is back in business with a vengeance.

    AMY GOODMAN: Nomi Prins, you worked at a number of these places, like Bear Stearns. You worked at Lehman Brothers, too, now bankrupt. Let’s talk about the money that Obama and McCain get. According to the Center for Responsive Politics, Obama, it’s nearly $10 million from the securities investment industry; McCain, it’s nearly $7 million. So Obama actually gets more. Employees of Merrill Lynch, the investment bank that’s been taken over by Bank of America, have given the largest corporate money to Senator McCain’s campaign, Merrill employees giving some—close to $300,000 to McCain, close to $200,000 to Obama. Lehman Brothers, which filed for bankruptcy, given—has been the eighth-largest corporate giver to Senator Obama’s campaign. Democrats have become increasingly reliant on Wall Street money. The industry ranks as the third-biggest giver to Senator Obama’s presidential campaign. How does this influence the debate, and what are the proposals of the two men?

    NOMI PRINS: Well, the proposals of McCain have to do with—well, they’re very nondescript. Basically, he says there is a greed situation, and we need to contain it. And we need—

    AMY GOODMAN: And he says we have to set up a commission.

    NOMI PRINS: We need to set up a commission to understand what’s going on. Well, we have seven different regulatory bodies in Washington, and they’re supposed to be watching various aspects of the financial community. And we have state ones that are supposed to be watching over insurance companies. So we actually have regulatory agencies. And Obama has basically said the same thing. He wants to strengthen the ones that do exist.

    The problem is being connected to Wall Street, in terms of your funding. And Washington, in general—Wall Street, in general, was the biggest contributor to all of the politicians in Washington over the last decade. It’s where the most money comes from. So you have a situation where that money doesn’t want oversight, even when it so badly, as Michael was talking about, mismanages and over-leverages and over-bets and gets into such a tremendous problem that we haven’t seen. They don’t want the regulation.

    What you should do, what the candidates should do, is step back and say, OK, well, you know what? Instead of having them dictate the terms and us coming in to bail them out with no strings attached—we’ll bail you out, and we won’t even ask you to explain to us what the heck has been going on with your balance sheets; we’re taking stuff on we don’t even understand—actually have to make it transparent and actually have to dissect the businesses back into a form where speculative businesses and commercial businesses are once again separated, at least until our government can understand what’s going on and understand the hook onto which they’re taking American public money to bail them out.

    AMY GOODMAN: Professor Hudson, Phil Gramm was the top adviser to McCain. What was his role in all of this, the former senator from Texas?

    MICHAEL HUDSON: He’s the frontman for the biggest crooks in the country. Basically, he says don’t regulate. He has responded to the lobbies by cutting back all of the information. The regulatory agencies don’t collect the information to let them know what’s happening. The government has no adequate statistics on what the value of real estate is, what the amount of debt is, because if it did have statistics, it would show that the volume of debt is far in excess of the ability of debtors to pay. And when you have that, you would have to do something about it.

    Gramm has said don’t collect statistics, because if you know how these guys are making money, they’re going to pay taxes on it. And if you don’t look at what they’re doing, if you let them all do it through offshore vehicles, if you let them all bury everything, then they’re not going to be taxed. And that’s his constituency, to un-tax finance and to shift it onto labor and industry.

    AMY GOODMAN: Where does Glass-Steagall fit into this?

  • restrangled

    Burn, you brought back some funny memories for me. Around the early 80's the commodore 64 was huge, I was on the sales floor selling them. VHS movies and VCR's had taken off, then came Beta. During the late 80's I remember my husband's cell phone weighed in at about 3 pounds, and was probably microwaving the hell out of his brain and cost about a $1000.00. Our cell phone bill at that time ran $800.00 a month during high season.

    There was no internet, or cable. We bought our 2nd home for 85,000.00, and a brand new honda civic for 6000,00...which gave us 250,000 miles and sold for 800.00 at that point.

    AHHHH, The good old days of a 49 year old!


  • flyphisher

    brother apostate

    As BTS stated, there should be no bailout for failures. Fannie Mae, Freddie Mac, AIG, should all have been allowed to bleed to death.

    This is a systemic financial crisis. No help found for the global investment banks would mean: the next step would be the great tribulation. Chaos, bank-runs, global crisis and so on...

  • truthlover

    Has anymone thought about other countries buying into the North American industries?? Iran buys and sells oil in american dollars and is loaded with it..same goes for the OPEC nations, what a way to take over without a war??

    Just a thought, as the regulators are not worth a pinch

  • jaguarbass

    The republicans are destroying America by missmanagement or no management at all.

    The money is imaginary they just move the decimal point.

    Money for wars and repubican spending is immaginary money that creates debt for the tax payers.

    Money for social security and health care always has to be real money.

    When they spend to much play money they start robbing social security.

    This is the result of a war chasing an imagenary boogie man. That W. is hiding and hopes all the republicans with 2 week memories has forgotten about.

    This is the result of worrying about another country rather than the one the president stole the election to represent.

    This is the result of the government allowing all of the jobs to leave america.

    People have been taking the equity out of their homes to survive.

    This is what it looks like when the birds come home to roost.

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