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Crisis Contained as Fed Purchases Mortgage Backed Securities

I don't appreciate a damn thing the FED is doing, because all it can do is create money by creating more debt. In an economy strapped by too much debt, how is creating more helpful? A complete overhaul of the fractional-reserve, debt-based money system is in order. It was created by an act of Congress in 1913, rolling over as usual to special interests back then as now. You can't keep re-arranging deck chairs on the Titanic. The debt-based money system is a creature with voracious tentacles. Put a knife in its heart already and let a treasury-based money system emerge that is not interest-bearing and that is not managed by a fractional-reserve banking cartel that is strangling the world. And while we're at it, insist that that lame body of men called the House and Senate balance the Federal budget, just as everyone else has to do in their respective households when they don't have access to a debt-money machine that turns the American people into indentured servants!

Our Economically Frugal Present

When you allow a privileged elite to control the issuance of money based on debt, of course you must eventually have a correction. This is the mother of all corrections and all the pundits are running around like chickens with their heads cut off----how do we fix this, how do we fix this, how do we fix this? IT CAN'T BE FIXED! Go ahead, re-arrange the deck chairs on the Titanic all you want. The unconstitutional debt-based, fractional-reserve, fiat money system is itself the problem. When even Nobel Prized winning economists cannot see the root of the problem and continue flailing away ineffectually at the branches, you know we are in for some turbulent times that will eventually humble even the most arrogant, and necessitate a return to honest money and ethical, 100% reserve banking administered as a service to society rather than as a scam to screw the productive class.

What Causes Inflation

This is a very interesting article in support of the current system of fiat, debt-based currencies controlled by nine white men sitting around an oval table at the Federal Reserve Headquarters in D.C. (Den of Charlatans) artificially setting interest rates. The author has gone to great pains to bring out the subtleties of the relationship between money supply and inflation. While not disputing the points he does make in explaining the many complicated influences on inflation, I liken his argument to that of someone at a fire pointing out the differences in the spectrum emitted by various parts of a building being engulfed in flames.

The fundamental problem with a fiat, debt-based money system in a "Republic" of free citizens is that it gives too much control over the medium of exchange to so-called financial experts and the politicians who collude with them. Gold and silver may not be perfect (I happen to think they are, however, having arisen as an archetypal solution to the problem of exchange in a division of labor economy) but they are not interest-bearing, and once mined can be used over and over again to facilitate exchange. In a debt-based money system money is created when loans are made and destroyed when loans are paid back, after first subtracting off the interest which is recycled back into society as the purchasing power of the FIANANCIAL ELITE who have been legally empowered to do this legerdemain of money creation ex nihilo by the politicians, whom the financial elite reward of course. (By financial elite I do not mean the productive, rich people of the world, with whom I have no quarrel other than their poor taste and selfish tackiness, as at least in a free market they have provided something tangible to exchange and I am given the option to buy or not buy. My objection is with those who are given this immense power to control the market's money, and they are only given this power by governments willing to give it away.)

No thank you to fractional-reserve money systems anywhere, anytime. They are fundamentally dishonest and are designed to reward an elite for what is essentially a bookkeeping operation----a bookkeeping operation with devastating consequences to the world. This will be seen in the coming years when the derivatives tangle unwinds and our money is driven down to the point of worthlessness. Then there will be no arguments over the fine points of managing inflation. You don't argue fine points when someone is attempting to cut your throat.

Enlightening the Gold Bugs

Faith in the integrity and arcane manipulations of politicians and fractional-reserve bankers creating credit ex nihilo

vs

Archetypal gold, silver as money with inherent value...

Hmmmm, let me think....still thinking.....nope, I 'll stick with gold and silver, and balanced budgets and government funding solely out of taxes the people are willing to pay and investing out of savings and strict enforcement of laws against FRAUD and limitations on the powers of governments (which is the real reason politicians don't like gold).

This article really is about the hubris of a man who is unknowingly walking toward a cliff in the dark. Under our glorious paper money, fractional-reserve monetary policies we now have more bureaucrats and financiers than people actually making useful products. It is unsustainable. Gold bugs are simply people who aren't clever enough to be derivatizing wealth from nothing and prefer solid accomplishment over flim-flam.

How the Fed Is Making Banks Lend

One minor, teensy, weensy little question: since in our glorious, debt-based monetary system in which currency is created ONLY by people or enterprises going into debt to the private banking cartel who create the medium of exchange ex nihilo, what happens if no one wants to go further into debt?

Whoops.

But by all means, continue re-arranging deck chairs on the Titanic.

Federal Commitments Now Total $5 Trillion

The tone of this article is wildly optimistic and is rehashed Keynesianism at its worst. If bailouts are so great, why don't we just give everybody a trillion dollars and be done with it. Then we would have some spending power, by golly! Then we can all be rich together. Of course, nothing will be produced but we sure will have a boatload of paper money to use. We could play Monopoly all day long while we boil our grass soup dinners using dried twigs collected by...by... no one, actually, we're all too busy playing Monopoly with our new enriching paper money.

Zimbabwe here we come. Thanks, all you economic experts, for making it possible. You're so scientific, and you gotta love those charts!

Wake Up America, You’re Sinking

When you have a politically empowered financial system that creates money ex nihilo for the benefit of the banking and political class, and indebts the rest of the productive citizenry in an unending and constantly rising sea of promissory notes and credit card debt in order to provide the medium of exchange, the lifeblood, of a division of labor economy, WHAT THE F* DO YOU EXPECT, SHEEPLE? Wake up and think!