How to keep the bailout from getting off the ground?
People complain about big government, but continue to invest in it, why?
We have to remember that the U.S. government is a corporation which issues stock, better known as T-bills. Like any corporation, if no one is willing to buy the stock, or if investors begin to sell their stock, then the price of the stock falls.
In order for this "bailout" to raise money (FRNs), the government will have to finance the debt with T-bills.
Again, the U.S. Government is like any corporation, it needs to raise money, how do they do this, they issue T-bills which is nothing more than a fancy name for stock. They issue T-bills and pass them off to the Federal Reserve which issues FRNs. The Federal Reserve reserve then needs to lend the FRNs out to banks and the banks need to lend it out to fools.
There is a way we can defeat this bailout. If people refuse to participate and not borrow!
If the banks don't earn interest, they won't be able to pay the Federal Reserve their interest who then will not want to hold T-bills, since T-bills are worthless. If this occurs then the T-bills will lose their investment rating and become more difficult to sell or sell at a big discount.
People would be stupid to continue with the current credit pyramid scheme.
People want real money, not T-bill generated government credit...
Don't accept credit for anything, don't even take out a student loan. It is best to work and save to pay for your education, there is no rush.
Seems to me that if we want to take power away from the elite who benefit from the Federal government, then people need to stop supporting T-bills by not borrowing FRNs. Demand real money and when possible put wealth in your own personal bank. Supporting T-bills empowers the elitists controlling the Federal government.
Remember T-bills are just paper, just like FRNs. Withdrawling your investment by not borrowing is their biggest fear.
Stimulate your local economy and the individual is empowered. If necessary barter and trade your goods and services.
grant
True
Foreign countries have been cheated out of their goods, but this blame does not fall alone on the American people. It was and is an invention of governments, and there were and are many foriegn government who participated in this deal. There are also many foriegners who have benefited from this deal as well.
grant
This bill has not passed the people.
People don't be rediculous. This bailout did not pass. It has yet to come to the people for approval.
In order for this to pass they have to convince people to go out and borrow more FRNs and become enslaved.
If people do not borrow money for new cars, homes, home entertainment systems ect... then this bailout fails to pass and will be rejected by the people.
Our job is to teach people to be responsible with their wealth and not go into debt.
Remember, the government is only a reflection of the people.
I think looking for outlets
I think looking for outlets to our fiat currency problems are noble and just.
The obstacle, I see in all this, is that the rest of the world is going to be extremely pissed once the ponzi scheme is done. Dollars to donuts a massive war will ensue and who would blame the rest of the world coming for what they feel is partly theirs. If only we (the population at large) were smart enough to listen to a Ron Paul type and ween ourselves off of this system, would we even stand a chance at redemption.
For instance. If you had cheated someone out of tangible goods for IOU's wouldn't you expect that person to come looking for the goods or a piece of your ass as payment? I would.
The message to me is clear. We must be very careful about what we wish for in these trying times. The collapse of the Federal Reserve system will most probably mean the complete end of the republic and war. I can't see it ending any other way.
Puppets come and puppets go but the world's stage is getting cluttered.
Good morning bump...
Did you all have a exciting night?
b
b
It won't be long before the
It won't be long before the FRN tanks, so we are going to have to fight to return to our original money, silver and gold. You think maybe the $700 billion is going to be used to buy up silver and gold?
grant
bump
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Be thrifty, you will get where you want a lot faster...
We have to teach our friends, family and children not to play this game. Don't borrow money from these thieves. Work and save, work and save, work and then buy what you need.
grant
I wonder what the $700
I wonder what the $700 billion FRN bailout currency is going to be invested in. Do you really think bankers are going to take more risks, or just take the cash and run.
grant
I just heard
natzi california needs a bailout
Bailout is just a safety net for the elite.
I have a hard time believing that the markets will ever recover. Especially when there are other ways to invest.
grant
The bankers golden parachute!
Paid by taxes and devaluation of savings!
Which do you mean?
To kill the dollar or to kill the FRNs?
In less
than 5 minutes after it was announced that the bill had passed on ABC they were talking that it would not be enough and it would take more.This evening on the news they said it would be months before anything showed to the positive and that things will continue to go downhill for a long time.
it wasnt done to get
off the ground it was done to kill the dollar
Updated post
I have updated this post...
People complain about the government, but continue to invest.
The U.S. Government is like any corporation, it needs to raise money, how do they do this, they issue T-bills which is nothing more than a fancy name for stock.
My point is that the Treasury will not make money out of thin air. They will need some of us to invest in the government and others to become enslaved by debt. However this scheme will not work without our participation.
First the Treasury needs to issue T-bills and go out onto the market to trade them for bad stocks and other papers, then companies will use these T-bills to get FRNs from the Federal Reserve or other bank which will use them to create credit for people to buy cars, houses ect...
But if people refuse to participate and not borrow, then the banks don't make money, the companies will find it difficult to get FRNs for their T-bills, the T-bills will lose it's investment rating and become more difficult to sell.
People would be stupid to continue with the current credit pyramid scheme.
People want money, not T-bill generated government credit...
grant
depends on what your definition of work, is.
For all of the culpable who will escape criminal prosecution in Czar Hank's new fascist America, I think the bailout is going to work really well. It's just everybody else who's screwed.
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"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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It did not get off the ground...
in fact, it crashed on takeoff. The DJIA was +285-ish while the vote was taking place, and finished -157. That's a 442 point drop in less than 3 hours. Why would anyone believe a single word that comes from the mouths of Bush, Paulson or Bernanke?
Not the best but still real money. Copper.
Currently a $1 dollar coin is made of copper, so it is backed by copper. My point is that it is better in two ways, when compared to the FRN , first the government would mint coins, thereby bypassing the Federal Reserve and secondly the coins could be made in larger denominations of $5, $10, $50, $100, $1000, $10000 as inflation kicked in, the difference would be that people could pay their debt instead of this rediculous pyramid system of endless debt.
I am talking about a minted dollar, not paper FRNs.
grant
see......
even if the government itself wanted to, they can't print there own money because the Federal Reserve has gained those powers. They are above the law. I thought about that too and some odd reason the force is strong with the Fed!
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"The real terrorist's are in this country and they are not planning to blow us up, but rather, take our money, our freedom, and our country."
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"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."
We already have a commodity
Are you saying that our FRNs are backed by copper or are you referring to pennies? Pennies since 1982 have been made with 97.5% zinc. Prior to 1982 they were 95% copper. The copper pennies are currently worth around 1.7 cents due to their metal content. The zinc pennies are worth less than half a cent.
It seems that whenever the value of the metal content of coins exceeds the denomination of the coin itself, the government then goes and removes the more expensive metals and replaces that with cheaper metals. In my opinion, this will go on and on and on until we have really strange coins in the US (although, that might be many years away).
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Follow histories example.
But that's the thing, if people don't go out and get loans from JPMorgan and Goldman Sachs then the bailout fails.
Ultimately it doesn't matter if the government passes this bailout, we still have to power to reject it.
Look at the Christian example in Rome, they were able to bring down the empire because they withdrew from the system.
We need to teach people how to unplug themselves.
Barter, trade and refuse their debt backed FRNs.
grant
Goldman Sachs and JP Morgan, that's who.
who cares about you, the American taxpayer. These guys need to free up more credit.
"Free government is founded in jealousy, and not in confidence; it is jealousy and not confidence which prescribes limited constitutions." Thomas Jefferson, Kentucky Resolutions of 1798
We still have to participate by going out and running up debt.
They expect people to go out and take on more debt, why would anyone in their right mind want to do this?
They don't even know whats out there
They can't quantify the extent of the problem. They just aiming a financial nuke at the problem and crossing their fingers.
Bump at the bottom of the page so we don't clutter the top
don't let morons attack dailypaul!
It's working. Just look at
It's working. Just look at the market.