swaps'  Instablog

   Gary A, his comments shown below, has the right idea about how to get out of our federal government debt conundrum.
    Default to the central banks and the bankers who own them.
    Then figure out a way to pay down the treasury debt which is owed domestically and offshore.
     It has been laughable - and tragic - that the world's greatest nation was brainwashed into thinking it had to borrow money to operate on.  It has always had the Constitutional right to just print money and issue to pay off bills and obligations and entitlements and, of course, the payroll, especially to our wise minds in Congress.
    Whenever the multiplier effect from government spending overheated then taxation could be adjusted to soak up excess.
    Rumors of the collapse of the dollar remain rampant. I just double checked a dollar in my wallet. It clearly says Federal Reserve note. The nation's money is issued by and backed up by the full faith and credit of the privately owned Federal Reserve.
    The federal government and its people were separated from its own money in 1913.
    Japan, China and Europe will have to go to the World Court and seek litigation against the privately owned Federal Reserve, its offices and managers, and its bank shareholders for any damages sustained from being given worthless dollars.

    A new currency now backed by the U. S. government with the elected Congress accountable for its value, can be put into circulation.  The idea of an Amero regional currency remains a dumb idea. Only culturally inbred CFR types could come up with that.
    Then the U. S. will have to borrow a page from Iceland and tell foreign and domestic creditors it will pay them down from any expanded production in future years.  If the elites continue to outsource U. S. production and flood the country with illegal cheap workers to bust wage inflation, then there will be little excess production thrown off to pay down debt. If the global elites want their money back, they will have to give back the United States its lost productivity that was sent offshore.

    The Federal Reserve will be replaced by a new agency whose sole function is check clearing.
    Never again will a privately owned bank be allowed to create artificial booms and busts.

    Then, and only then, it will be morning in America again.

    Disclosure - own some public debt through a modest money market account at a brokerage firm. I hold Federal Reserve currency in my wallet in varying amounts and have Federal Reserve - backed cash in checkng and saving accounts.

Capitalism calls for destruction of capital when it is mismanaged or misallocated. Failure to allow capitalism to run its cyclical course only buillds up a backflow of unreleased pressure.

Repeated attempts to plug an ever larger finger into successively larger holes has led to this current state of continually being on the rim of an ever deepening hole that has now turned black and bottomless..

The succession of events since 2000 illustrates that the artificial construct of the Federal Reserve cannot in the long run overcome cycles that are endemic to the natural order.

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This response could not be posted on two different sites this morning so I will attempt a blog.

Is the Federal Reserve solvent if Benranke won't let anyone look at the books? If the government had to authorize TARP money is that not a sign the Fed's assets and resources were tapped out?

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