Quantcast
Feeds: Email, RSS & Twitter

Get Our Videos By Email

 

8,300 Unique Visitors In The Past Day

 

Powered by Squarespace

 

Most Recent Comments
Cartoons & Photos
SEARCH
« Wall Street Executive Air: "In the unlikely event of a loss in profits, bailout funds will drop from the panel above your head" | Main | Florida's Housing Bubble - What $1.4 Million Bought At The Height Of The Insanity »
Monday
Jan242011

How The Federal Reserve And The Zombie Banks Are Monetizing The National Debt Right Before Your Eyes

Tim Geithner and Ben Bernanke

Ben Bernanke and Tim Geithner Dollar

Ben Bernanke smiles

Ben Bernanke

A true must read.  The spender and the printer.  Governments and central banks do not have the same constituencies.  The power to print would be a frightening force in the hands of politicians, much as it is for the Fed.

---

 

The spender and the printer

Governments and central banking do not mix

By Gonzalo Lira

Source - Gonzalo's Blog 

Governments spend money. They spend money on social programs to keep the people docile and happy, wars to keep up the illusion of safety and security, and—almost as an afterthought—infrastructure. Ordinarily, they get the money for all of these things from taxes and other fees that the government collects.

On the other hand, central banks print money. Most of the world’s economies depend on fiat currency—currency that has value because someone says it has value. The person who says it has value is the central bank. They are the custodians of the currency—they take care that it retains its value.
 
Tons of people say that a fiat currency is unstable, and doomed to fail, and that we will all rue the day that we accepted that abomination into our lives!—and blah-blah-blah, rant-rant-rant.

But in most cases—all cases, actually, regardless of what the tin-foil hat brigade might rant—fiat currency works like a charm. The proof of this is the last 40 years: All of the world’s major currencies have been fiat since at least 1970. The dollar has been fiat since 1973, and by certain definitions, fiat since 1933, or even 1913—and it’s still around. That’s been because of the Federal Reserve (the U.S.’s name for its central bank).
 
Central bank independence is key for a successful fiat currency. If the government ever got its hands on the central bank’s printing presses, all hell would break loose. Rather than raise taxes and collect fees—which are politically unpopular—the government could (and would) direct the central bank to print all the money needed to carry out the government’s various programs.

This is monetization.

Continue reading...

 

##

 

 

Spoiler ALERT -- Do not miss #7:

---

 

Have you seen these photos...

New Slideshow - From Time Magazine - See a pic of Bernanke at age 13, hair slicked back, playing the saxophone - These are VERY RARE photos

---

 

Check out this one...

Editor's Note - Fans of women's swimming might want to make sure to see pic #4...

---

 

More slideshows:

 

 

 

---

 

 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (13)

http://us1.institutionalriskanalytics.com/pub/IRAMain.asp

Will the Fed have to intervene to bailout the States?

Chris Whalen
Oct 1, 2010 at 4:24 AM | Registered CommenterDailyBail
Oct 1, 2010 at 4:40 AM | Registered CommenterDailyBail
Wallace Turbeville: Report from the Frontlines – Mission Not Accomplished on Derivatives Reform

By Wallace Turbeville, the former CEO of VMAC LLC and a former Vice President of Goldman Sachs who writes for New Deal 2.0

http://www.nakedcapitalism.com/2010/09/wallace-turbeville-report-from-the-frontlines-%E2%80%93-mission-not-accomplished-on-derivatives-reform.html
Oct 1, 2010 at 4:55 AM | Registered CommenterDailyBail
Only been a few Congressmen have weighed in on the mortgage documentation mess so far, since wrapping up the current Congressional session and campaigning consumes a lot of bandwidth. Nevertheless, I am getting reports from DC that people on the Hill are starting to take the issue of foreclosure document fabrication, errors, and improprieties seriously.

http://www.nakedcapitalism.com/2010/10/congressmen-attack-lps-servicer-misconduct-pr-counteroffensive-starting.html
Oct 1, 2010 at 4:57 AM | Registered CommenterDailyBail
Oct 1, 2010 at 5:00 AM | Registered CommenterDailyBail
Lira's guest post at ZH was one of the best I've read for the new QE/FX intervention "normal". I posted it one month ago today, and everything has been proceeding accordingly ever since...
http://letthemfail.us/archives/5380
Oct 1, 2010 at 1:34 PM | Unregistered CommenterWil Martindale
yes it's outstanding stuff...lira just sent it to me earlier in the week...i guess he just found our site...
Oct 1, 2010 at 3:41 PM | Registered CommenterDailyBail
"But in most cases—all cases, actually, regardless of what the tin-foil hat brigade might rant—fiat currency works like a charm. The proof of this is the last 40 years:"

If you knew much about history then you would know that on average fiat paper, in general only lasts about 40 years and the clock started counting for the fiat US$ in 1971 when it was force off the gold standard by the French.

Keep your fiat and i'll keep my silver and lets see who wins out in ten years time when China stops bank rolling the USA and your politicians have robbed you all blind.

"Lending money to the Federal government is totally safe."

Are you for real or did you not know the goverment is taking peoples 401k and using it as collateral or that some people put the total USA debt at well over $100tr or are you one of them that beleived building seven fell down on it's own during the false flag on 9/11.

tell us your joking right
Jan 24, 2011 at 8:15 PM | Unregistered CommenterMr Smith
so mr. smith....do you advocate giving the power of printing currency to Congress...would it be any safer than giving it to the fed...?...both options are recipes for failure...
Jan 24, 2011 at 9:06 PM | Registered CommenterDailyBail
Read this again:

"Central bank independence is key for a successful fiat currency. If the government ever got its hands on the central bank’s printing presses, all hell would break loose. Rather than raise taxes and collect fees—which are politically unpopular—the government could (and would) direct the central bank to print all the money needed to carry out the government’s various programs."

My point is this:

Jewish power has controlled the money since 1913. Now 100 years later over 70% of the most powerful people in the U.S. are Jewish. Of the top 100 in the "Business Round-table" again over 70%.

All the top Banks, Brokerage, Investment Banks, controlled by Jewish, all linked to the FED which is all Jewish. Access to credit allows them to dominate, buy, manipulate and takeover any company they want. That is why there is a long list of Jewish takeover artists, do you really think its a co-incidence? And it will not stop. Whats the cost to hardworking Americans to be under the ruthless power of this group? I'll bet its much more expensive than you can possibly imagine.

So it hasn't been without a HUGE price already, right?

They are now the richest of the rich, rubbing our noses in it. Israel gets whatever they want to the point they now believe they run the U.S. The laws are bent to favor them,...there can be no criticism of Jews or Israel. They forced through hate laws not to protect gays but to cover themselves.

Whatever mistakes the politicians of some-other entity might have made, we now see what giving the Jewish minority this much power has wrought. They are not the best or the brightest, but they now control academia also. Where will it end.

What if your Uncle ran the FED and could give out favors to the family and friends and be as secretive as they are about keeping their mouths shut, with no audits,..... don't you think you would have a leg-up on any competitor, anywhere in the world? Now they also control the World Bank and most other sources of capital to countries, to what end? DOMINANCE.

They also control the central access points in our communications hubs and can eavesdrop on anyone any time including the most brilliant innovators in our country and steal and use this information. Or on any companies privileged information including mergers, acquisitions, new products, contracts under negotiation (huge, if they step in and steal business by knowing the bids and whats included), etc.,etc.

It must be stopped and a level playing field re-instated. NOW or you will suffer further as they consolidate at the top of the pyramid, in a more and more repressive society.

Wake up America, my country.
Jan 24, 2011 at 9:42 PM | Unregistered CommenterCustomersman
Customersman, you're right on the mark. It's nice of the author to point out the obvious here, but I'm stunned that he seems to think that allowing a select group, especially a private, for-profit corporation that has never been audited, to have money printed up for basically nothing more than the cost of the ink and paper, and then loaned to the "government" at interest, "works like a charm." I am of the opinion that the CONstitution is not legally binding on anybody, but if people want to believe that it's the "supreme law of the land," where in hell does it authorize an arrangement like this?

Every single society in history that has gone from a precious metal-based currency to a fiat currency has gone under economically. It will be no different in this country, and it would have happened long ago if not for the warmongers in DC being able to blackmail or bludgeon every other government on Earth into accepting worthless paper in exchange for real goods.

Speaking of the CONstitution, we're always reading that the rat bastard Nixon unilaterally took the U.S. off the gold standard in 1971. Would anybody care to point out to me just where in hell is the legal authorization for one person to do something like that?
Jan 25, 2011 at 11:35 AM | Unregistered CommenterBig M
it's a good question regarding nixon and the gold standard...if i come across something in research i will post it here...
Jan 26, 2011 at 11:07 PM | Registered CommenterDailyBail

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.