Thursday
Jul282011
Obama's Debt Solution: Crack-O-Nomics
Video - Ryan Dawson explains how Obama's crackhead cure is... more crack
Give clip this a few minutes. Dawson offers alternative deficit solutions that will sound familiar to DB readers. Related story from yesterday:
WAKE UP AMERICA! - The Real U.S. Budget Problem: Defense & War Spending Equal 94% Of All Federal Income Tax Revenues
Jul 28, 2011 at 2:46 PM
Reader Comments (9)
If every asset has a dollar value, everything is overpriced or we need to print "MO MONEY".
http://www.visualeconomics.com/the-value-of-united-states-currency-in-circulation/
Call 911! I can't stop laughing.
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Pay them what? When? What for?
Any surplus the FED generates is transferred back to the government.
The deficit has nothing to do with bailouts - though the deficit has been made much worse by the lower tax receipts which are a result of the recession, which was itself a result of the crises which required the bailouts.
You're mixing up a whole lot of different things here.
A couple of things to make clear:
1) any "profit" the FED makes is returned to the government. It returned a record $90Bn last year, IIRC. Considerable, but small beer in the big scheme.
2) Assets bought by the government via FED as part of "bailout" are......assets. It beggars belief that they are ALL bad, so eventually they will generate income when returned to market, or they will mature, whatever. At some point they will produce INCOME.
3) Interest payments are not substantial in terms of buget, nor GDP.
4) US Taxes are lowest for 60 years.
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So, y, cut military spending......and raise taxes. But raving about "not paying back the FED" is....dumb.
NYT:
WASHINGTON — Profit at the Federal Reserve banks soared to a record $82 billion last year, a windfall for taxpayers that also underscores the depth of the Fed’s continued involvement in the nation’s financial markets.
The 12 regional banks that make up the Federal Reserve system held $2.4 trillion in government debt, mortgage-backed securities and other investments at the end of 2010, according to a combined financial statement the Fed published Tuesday. The banks transfer almost all of their profits to the Treasury Department. The $79 billion received by the government this year is a 66 percent increase over last year’s payment of $47.5 billion.
The Fed transferred roughly $25 billion a year in the decade before the crisis.
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Q: What is the definition of a United States Dollar, according to United States Code?
A: A United States Dollar is defined as the value of 371 grains of silver (this is current United States Code).
Q. What is the definition of 'legal tender', according to the Constitution For The United States?
A: Article 1, section 10: " No state shall...make any thing but gold and silver coin a tender in payment of debt."
Q. What is printed on the paper emitted from the PRIVATE BANKING CARTEL known as the Federal Reserve?
A: "Federal Reserve Note"
Q: What does this mean?
A: The Federal Reserve 'system' is emitting bills of credit (notes), which is strictly forbidden under Constitutional law. It does not promise that these are redeemable in REAL 'legal tender' (gold or silver coin).
Q: What REAL value do these bills of credit have?
A: NONE.
Q: How does the current United States Government get fiscal support?
A: It asks the Federal reserve to put bills of credit into circulation, which the Fed does, after it gets promisory notes (BONDS) from the Government, for ownership of Federal holdings, and also asks for payment back AT INTEREST. The Fed, therefore, purchases REAL assets with valueless bills of credit (and charges a premium for doing so). The Government then uses tax revenues from the people to back these 'loans' by the FED...
TLNL:
What was that you were saying?
The FED returned worthless scrip back to the Government, representing this phony money as 'legal tender'?
WOW!
This young man on the video has a fairly good grasp of the issues, and Obama, Geithner, Bernanke, Reid, Pelosi, McConnell, and most of Washington are, indeed, 'CRACK WHORES', and perhaps TLNL is just not educated in how things work (benefit of the doubt given).
Thanks, Daily Bail, for what you do.
MontgomeryScott
Wait until rates rise, then you will see that the interest will become unpayable. Sure it's manageable now, but soon enough it will usurp everything. Mark my word. Especially since Treasury has chosen to finance most of the last $5 trillion in short term paper. When rates go up and the paper needs to be replaced, it's going to get VERY expensive.
The exact same "worthless scrip" that the guy on the video is complaining about having to pay.
IF IT'S WORTHLESS - THEN DON'T COMPLAIN ABOUT HOW MUCH OF IT YOU HAVE TO PAY IN TAXES? (Which is what the video does - says it's worthless then complains about how much it all costs.) You can't have it both ways.
How can you complain about "how much money it all costs" whilst also complaining that "money" is worthless?
Please, explain?
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Replies are very poor - don't address the issue at all.
Dude in the video complains about having to "PAY THE FED"........whereas in reality the FED pays the US Gov.
He's completely wrong - but no matter?
Are you kidding me ........This Must Be Said.......................!
http://www.youtube.com/watch?v=8SGyVNippvA&feature=youtube_gdata_player
They are very good at "Fuckin" with peoples brain-cells. All we can do is help them understand what the truth realy is and help them fight for the American People.........If they cant get it, they are a Democrat and suckking on the rest of us real people.......
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Errr......you notice there's been nothing posted in support of this crackpot idea that American workers "owe the FED".
Nothing to refute anything I said...... yet I'm the one being criticised, not the person in the vid voicing silly complaints.
People want to blame the FED for everything, when it's hardly the problem at all. The problem is people are letting the rich get away with cutting taxes and cutting services - and much of the American working class is helping them do it - by whining about irrelevancies such as the FED rather than demanding services be retained, military spending cut, and taxes raised significantly for the better off, with a long-term effort to transfer wealth to the masses of people, rather than the few.
Tax revenues are down because of low growth......low demand. Because of the crisis. Now you want to cut public services! Because you "can't afford it". Rubbish. Tax the rich, spend on infrastructure and major projects - get people working - transfer wealth to the workers and poor - stimulate demand. Don't do the opposite......eh? That's what those responsible for the crisis want!
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Anyway - can anyone answer........why there's all this complaining about the cost of things when measured in "money" that you claim is "worthless"?
If it costs (a lot), then it certainly isn't worthless. If it's worthless, it doesn't cost a thing. WHICH IS IT?