-5 votes

Obama supporters have got it exactly right. (On Monetary policy.)

Obama supporters see the banking and corporate elite getting welfare in the form of bailouts, QE and subsidies in the trillions. The Elite welfare is now at a minimum of $85 billion a month in FED buying from these entities at super inflated prices MBS and Treasuries. Without this welfare the Corporate elite would be bankrupt overnight.

Obama supporters hate this and don't think that's fair. Nobody disagrees with that sentiment, whatever your political leaning is. RP supporters want the same thing but their way to stop this unfair looting is a Gold convertible US Dollar to prevent this type of welfare.

Obama supporters are deploying a different method to even out the playing field. I call it the, "If you can't beat them, join them monetary policy." If you are going to print money, which they are. Then, where is my printed money. If the corporate and banking elite are getting a minimum $85 billion a month, then the 330 million Americans should get at least that much a month for themself, if not more.

Therefore, I put forth a new monetary policy. Every American citizen, man, woman and child, should get and demand at least $300 a month ($99 billion a month). Obama has the right idea. Not only would the economy improve, it makes perfect sense. Either nobody gets welfare, or everybody gets welfare. It's only moral.

If a stock splits, do you accept your shares? Same concept.




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Inflation

...ever heard of it? You Greenbackers are incorrigible.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Do you understand

basic economics?

“When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” – Dresden James

Honestly, this is a really

Honestly, this is a really good idea if your goal is to ensure/speed up the collapse of the system. And frankly, we won't be making any progress until this corrupt temple does fall.

Simple Facts and Plain Arguments
A common sense take on politics and current events.

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Cyril's picture

+1 For the Ugly Truth

"And frankly, we won't be making any progress until this corrupt temple does fall."

+1 For the Ugly Truth

How (now long-denied) free markets used to work :

http://www.laissez-faire.me/Economics/

Peace.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Ridiculous. End this welfare,

Ridiculous.

End this welfare, raise interest rates, and weather the storm

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

jetguy writes: "We already

jetguy writes:

"We already owe $16 trillion. Interest of even 1% on that is $160 billion per year. If interest even goes to 3% its $480 billion per year. We only take in about $800 billion in taxes. At 3% interest more than HALF of all money coming into the US government will be going for interest. "

All the money coming in the form of theftation (taxes) already goes to pay the interest and it does not cover it so they borrow more just to continue the party, look up grace commission report... Now the fed is buying bonds to keep it going because no one else will.

We are closer to the big crash then most think...

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End The Fat
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Think about it this

Think about it this way...

The US in total has 58 trillion of public debt. 16 from federal, 3 from state and local, 16 from household/credit card/student, and 23 from corporate debt.

If interest rates went up 1%, that would be a big cost to the economy

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

THATS what I am saying.

The Fed has been buying about 80% of our debt as the lender of last resort. Because other countries simply would not buy it. And of course, where does the Fed get them oney to do that. It prints it. It writes a check on money that doesn't exist and then, poof, it exists.

Okay this is only for people who understand what I wrote above. Most people don't so I don't want to confuse them. But there are two interesting other facts.

#1. Actually the Fed is buying a little less than 80% now. Demand for the Fed to print money is actually going down, as people foolishly run to the dollar (ie Treasurys) for protection against the world economic crisis - they are actually buying MORE. (What fools)

#2. Since the vast majority of the money we owe is TO the FED with created dollars - and we are paying interest TO the Fed (which by law returns most of that interest to the Treasury) it isn't quite as bad as it sounds.

The government has an Ace in the Hole in that it can default on the Fed debt by making it dissappear the same way it created it in the first place. It buys us some time. Not a lot though.

Do you seriously know anything about hyperinflation?

Google Weimar Republic and learn.

Workers arranged to be paid several times per day and men would meet their wives at noon with that mornings wages. They had to because by afternoon that money wouldn't even buy what it could buy at noon.

I happen to have a 100 trillion dollar bill issued by Zimbabwe.

It was once enough to buy a loaf of bread. Now its worthless except as a collectors item.

Hyperiflation is not a cool situation to be in.

If all that money is out there competeing for goods and services - prices go up. If EVERYBODY has plenty of money - an apple will cost $10 and go up.

True..

I'd take the extra money and buy more gold and silver.

Cyril's picture

Well, good luck with buying those precious metals

Well, good luck with buying those precious metals, or even, copper, with money which is barely worth to be BURNT for heat :

http://lewrockwell.com/orig13/hewitt-m1.1.1.html

Or is that History that was all made up by some crazy mind in a basement ?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

The end game is the US Dollar will be backed by gold to stop

the inflation. But, we will need gold priced at or above $10,000.

Then it will be confiscated from us at $500 or so per ounce for

"National Security".

It happened before. And people got about $35 per ounce when gold had been selling for around $72 per ounce on the open market.

No need for confiscation. People are selling their gold now

voluntarily. The sheeple will always be fleeced.

Obviously more people are still buying as the price continues

to go up. Or stay up.

If everybody was selling their gold the price would fall.

And since we only have around $500 billion in reserves - the government will need all the gold it can get. So it WILL take yours (and mine - I have a lot). Make no mistake.

I have considered taking mine out of the country and putting it in a ssfety deposit box in Canada - but it could be confiscated even now at the border.

Better for me to sell it here - and rebuy it in Canada - to put in a safety deposit box. I just haven't done it yet.

Selling it here and rebuying it in Canada would require me to

pay two commissions of course and I would have to pay capital gains tax on the gold which has appreciated quite a bit since I bought it at around $800 per ounce.

The investors are buying. The sheeple are selling.

.

But INVESTORS are the people from whom gold will be confiscated

at a very low rate. Thats what I am saying.

We will see.

.

Seriously, I hope that everyone realizes that we have a world of

hurt coming no matter what we do at this point.

First of all - for those waiting for interest rates to go up, forget it. It is never going to happen because it can't.

We already owe $16 trillion. Interest of even 1% on that is $160 billion per year. If interest even goes to 3% its $480 billion per year. We only take in about $800 billion in taxes. At 3% interest more than HALF of all money coming into the US government will be going for interest. And it gets worse.

Obama added $5 trillion to the national debt in his first four years. If he does that again we are $21 trillion in debt. 3% on that is $630 billion - that will leave us only $170 billion for everything else without borrowing MORE. And thats not even enough to support the military for 3 months at current rates much less ANYTHING ELSE.

The other choice is to just keep printing. And if we do that eventually corporation and banks will not be simply sitting on the money - it will get into the economy. And then hyperiflation will occur.

There is NOTHING to stop one of these scenarios from occuring.

That's the point.

.

I get that you are trying to be funny.

But its not.

It's not funny.

but don't dismiss the strategy out of hand.

Food stamps, cash assistance, free telephones, etc.

that is money printing. QE, bailouts also money printing. Not everyone is getting some money equally, those who receive it have advantage. Yet we all pay for it through taxation and currency devaluation.

If a stock splits, do you accept your shares? Same concept.

Sorry...

...but "RP supporters" do not want a gold convertible dollar. Where in the heck have you ever heard Ron Paul say he wants that? And whats with "RP supporters" all lumped together? If you know anything about "RP supporters" its that we have many beliefs that intersect, but everyone holds their own opinion outside of the collective...maybe some would like a gold backed dollar others definitely not. Ron Paul has suggested Competeing Currencies, and that makes a lot more sense to me...let the market decide what is money.

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Thank you for saying that

Any currency can and will be manipulated.

As Neal Boortz says about inflation and other monetary maniplation..."I choose to outrun it."...meaning to make such a high income, the government can't bring you to your knees, like 95% of people.

People just don't save, don't invest in valuable skills/knowledge, etc. They play lotto, play the market, buy gold, borrow money, and other nonsense. Then they hit late middle age and get laid off, get hospital bills, etc...and suddenly, they are facing bankruptcy. One hospital bill wipes out about 50% of people's wealth. They end up in the poor folks home...if they are lucky.

This stuff is for real people. You will get older. You will need to go to the hospital. Exposing the truth about the government will not help you. People think that Ron Paul is all about exposing the truth, but he first got valuable knowledge (gasp, a worthy degree), then worked hard to build a practice, then he made wise investments in gold mining/distribution companies...not just gold. Then, after he was set, he got into politics. 99% of the people here have it backwards...getting into politics broke, then hoping for a market miracle to make them wealthy. That is not going to happen people.

Obama won the election, competing currency is not on the

table. But, this policy doesn't exclude a competing currency.

So... lemme get this straight

The way to stop the devaluing of our currency which is currently done by creating more of it to give to the banks, is to create double that and give the same amount to be split between all of the people (which, ironically enough, happens to include the people who run the banks), and somehow, this isn't going to devalue our currency twice as fast?

Is this really a thing?

If your going to print, and they are printing,

it must be for all not a select few. No printing is preferred but that's not happening.