-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.



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Sure no problem, if you don't mind

paying $50 for a gallon of milk next year, maybe $200 the next.

=======
RON PAUL 2012

That's going to happen anyway.

.

Cyril's picture

Clues

FWIW, the second link in my signature, as well as a few of my posts tagged "Economy" give some useful clues on what always end up coming with ever-increasing government intervention in economy, and forceful welfare schemes.

Now, of course, one can always remain free to blame free markets and capitalism.

Especially since neither has been around anymore for almost a century.

"The absent are always wrong", as they say, sure.

Woa. Big news ??? Ever heard of the Jekyll island meeting in 1910 ?

Ahhh... ignorance, if maybe not a bliss, is sooo much convenient... anyway ! ISN'T IT ?

'HTH,

"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

Still wouldn't solve

the petrodollar wars. In fact, it would make them even more essential now that the regular citizen of the US would have a direct interest in keeping the dollar as the reserve currency. There's also many other reasons why it can't happen: the QE by the Fed is actually printed by the banks via loans to other banks and corporations (they get the money first with lower interest) and eventually makes it`s way down to citizens (increasing the interest rate incrementally all the step of the way). How would your plan get the $ in circulation directly to citizens if it isn't through private loans (banks)?

Answer: The treasury would have to print it not the Fed (via banks). Your plan is nothing more than the old greenbacker's plan ie: state MANDATED currency.

The ONLY sensible solution to all those problems is competing currencies.

"If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom — go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, an

This sounds like a suggestion

This sounds like a suggestion from the 'Occupy' camp. No thanks.

Unsustainable... but let's not talk about that!

Obama supporters worship Paul Krugman, as he is the source of the justification for an entitlement society. They are like rabid hungry animals that see the rich as a quick way to fill their pockets. When the rich are broke, where will they get the money to support themselves?

Obama supporters monetary policy, as is Romney supporters, is funny money and feel-good investments. They all love the FED.

Cyril's picture

The game of fake money that kids love to play.

Yes. It's because they love the game of Monopoly.

Clueless on the mechanics and impacts of economic models on real life and markets, they believe that their secret wish in the game of Monopoly to get bills for free under the table to buy houses and hotels more easily with zero risk can work the same in life, closing their eyes on who creates the money and why exactly.

Oh, and don't suggest them to read more about fractional banking or the correct definition of inflation (increase of money supply, not just prices) ... They are not interested in knowledge.

They prefer to stay in the state I quit before my 20s.

Day dreaming about fair share money schemes.

Again :

ignorance is SOOO much convenient to abandon your intellectual and moral responsibilities.

Q.E.D.

"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

do you think

theft is right as long you get a piece of the pie ?

If a stock splits, do you take your shares or do you give them

back? The deed is done, if you don't take your share then you will be diluted. Same concept.

Cyril's picture

Oh yes, Obama supporters got it exactly right on monetary policy

Indeed.

You can sum up their views and desires quite simply with :

"Let's get ourselves some FREE STUFF UP IN DA HOUSE, Baaaby, Yeaaah !

Thank You, Master** Obama !

Keep it coming, O Master !"

Bear.

P.S.
** Also sometimes referred to as "King Obama" by his servants.

On this end, I prefer to give him either of handles :

1. ObaMARX (most oft-suitable)

OR

2. ObaMAD (events context-dependent)

Your Mileage May Vary...

Well, IT WILL vary, no doubts :

as ObaMARX's "Change" is for sure a kept promise ongoing. DOWNHILL.

"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

Why give them $300, when we

Why give them $300, when we can give them ...one meeelion dollars ;|

(Hint, prices would skyrocket, that is why they don't do it and it is bad science)

Southern Agrarian

$300 is just an illustration.

This proposed policy would bring about RP's views on a gold convertible currency by necessity. Otherwise as we complain, the corporate welfare recipients are getting a larger and larger proportion of the currency.

Uhhhh.... No. You are

Uhhhh.... No. You are veering way off course. For one, the gubment will never do that unless they think they are about to lose control, which based on the number of zombies who voted, won't be any time soon. For another, that kind of dumping cash directly into the economy would cause skyrocketing inflation on day one. Pouring gasoline on a fire will not smother the fire but it would make a nice brief spectacle. Do you really think a measly 300 bucks a month is going to make a difference for anyone anyway? No offense but I dont think you understand the true nature of QE and bailouts. It is not to prop up the balance sheets of the banks. That is what they say on TV, therefore it can't be true. Read Modern Money Mechanics and then think about the subject from another perspective.
If the gov had given the original bailout money to the people directly, every mortgage in the country could have been satisfied and the banks would have been the recipients of all the cash anyway, although through an indirect method. They chose not to do that for some reason. Why do you think? Would you have supported that if they did? 'What's in it for me?' Will be the death of America. RP never said that in his entire career because he doesn't think that way.

Respectfully, you are wrong.

It is to prop up the balance sheets of the banks.

just give everyone a million

just give everyone a million dollars each--we'd all be millionaires!

This is not a new policy. It is as old as the hills.

This is the policy the tribunes in ancient Rome used to win votes from the plebs. Bread and circuses was the norm for all poor citizens of Rome who depended on government largesse to survive. It was how the government kept the peace by preventing riots. The equivalent policy today is food stamps, welfare and television.

You do realise I trust that if they did this that aggregate demand would skyrocket and prices would follow. Remember the effect of unlimited student loans on college tuition fees.

This notion that the way out of the problems associated with creating money from nothing is to increase the amount of money being created from nothing is patently irrational. Money must come into existence and derive its value from the activities of human beings in the normal everyday exchange of goods and services. To try to short circuit this process as we have done for so long is to transfer the power in society into the few hands that control the creation of the "money". This causes all kinds of distortions in the way that markets work and leads to the economic mess we have today throughout the world.

Of course you may be saying this tongue in cheek. I hope so. Otherwise it would appear that you have learned nothing about how an economy works and what money actually is.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

I understand the effect it causes on the value of our currency.

But, if the FED is going to print then it must print fairly. I may take that currency and buy gold and that is my prorogative. But, until they stop printing the only fair way is to hand out the currency fairly.

You do realise that is merely a fantasy, right?

Why would you encourage a wrong action in the name of Justice? Why would you in the name of Fairness require the government to act in a way you must know is destructive? The action will not accomplish the good you seek.

Yes gold would definitely increase in price but that would be because the purchasing power of the dollar had collapsed. You might personally be better of marginally but your fellow Americans would be far worse off. Is this what you are truly after? Somehow I doubt it. As I say it is merely a fantasy, a night vision that will dissipate in the clear light of the morning.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

It's happening as we speak, already.

We are just not in on it.

No it isn't, not the way you have described it.

The money is being created to assist the banks take the bad loans off their balance sheets and in the long run to create deflation...the opposite of the effect it would have if distributed to the population at large as you have mooted in your OP.

The deflation is caused by the open market operations that provide the banks with an opportunity to front run the Fed for risk free speculative profits. This creates a falling interest rate environment that has been going on for thirty years. Lower interest rates mean higher bond values that mean higher long term liabilities on corporate balance sheets. This combined with "efficient" balance sheets and mark to market accounting results in failing companies and fire sales i.e. deflation and falling prices. This helps the global behemoths to gobble up their competition with the aid of their private equity partners like Bain Capital.

This is what has been going on for at least two decades or more. This is why there has been a radical decrease in the number of publicly traded medium size companies and banks. It is significant to me that the most successful SME companies are private family owned businesses.

It is conceivable that the central bankers who are academics are simply naive and their advisors who come from the big investment banks and bullion banks are the real Machiavellian influence. Whatever the situation behind the scenes the result is there for all to see.

This is what is happening and we are not "in on it" because we do not belong to that class of our society and speaking for myself I have absolutely no desire to be "in on it". This is the pull of the "Inner Ring" that is best avoided if one wishes to remain sane.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

You are making a moral argument.

In a deflationary environment, those who receive printed money buy up the assets at pennies on the dollar.

I believe that is what I said.

That the reason for the QE is ultimately to prop up the Banks and enable the Behemoths to consolidate their industries. That is the situation as it stands. Whether there is a moral judgement contained in the description is in the eye of the reader.

For my own part I do see it as the normal behaviour of predatory creatures acting according to the basic principles of their nature which are unlawful by the yardstick of the Law of God which commands that boundary stones not be moved and fields not be added to fields.

Do you personally have a disagreement with that position? It is not clear from your response exactly what you wish to say.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

Obama supporters don't see

Obama supporters don't see anything. They just like watching their messiah on Ellen, Letterman, and Leno.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Problem is....

The Obama nuts arent' justifying it by looking at the root causes as you are doing. You have the advantage of knowing about monetary inflation, bond purchasing and leveraged loans, the very existence of the Federal Reserve (every Obama-voter friend I have doens't have a clue what the FED is) etc.... They just know that rich people should pay taxes and they should get their money. Slight difference there, hence, they are not right at all.

"In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot."--Mark Twain

Obama supporters are not the enemy.

They are just in their simple practical way, copying the Corporate and Banking elite agenda. We can achieve our objective by using the same policies to even the playing field and nullifying the advantage the elite are employing against the population, using reverse psychology. Don't dismiss it out of hand. Don't down vote, it's worthy of at least a DP discussion.

Cyril's picture

Not in the strict sense, granted.

Because I pay attention to the usage of words, I would agree.

They're not "the enemy" per se, in the strict sense. They are just "people".

But they are for the least very deceived or very complacently ignorant people. Deceived and given "bread and circuses" by the same CROOKS, THIEVES, and MURDERERS. Also, TRAITORS.

We all have free will. To seek this or that knowledge ... or not.

But, unlike before 1989, we have no more excuse to remain grossly and dangerously ignorant. Or am I inventing something ?

"He who ignores history is doomed to repeat it." Etc, etc.

I would strongly suggest them to read this, relevant :

http://www.dailypaul.com/144648/saudi-markets-fall-over-6-go...

(plus the links in my signature, as always; self-pimping)

Because, like many deceived or ignorant people, they have forgotten what the noun "MONEY" actually means.

SERIOUSLY.

'HTH,

"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

Not so.

They are the enemy. Along with 9 out of 10 Republicans. I have no problem calling them that. To claim they are just victims means they have no responsibility. The German soldiers believed they were on a Christian crusade and their motto was "God is with us". Does that mean they were not culpable for their actions because they were brainwashed? (Sorry, I hate WWII references but it was the first thing that came to mind).

They have a choice - be our enemy or join us. And, that does not include monetary stupidity.

"In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot."--Mark Twain

I had this same exact thought last night

while trying to see the silver lining in Obama's re-election. Re-distribution of wealth is not something i agree with, but hey, if the banking cartel is to continue raping the country and auditing the Fed has small chance of making it through the Senate, maybe Obama's policies are the way. At least for the next 4 years.