Pro FED people here are true examples of human failure of highest proportions. United States has un-payable debt United States Currency lost large % of value FED has been caught buying its own bonds incognito FED was unable/didn't want to stop 1929 crash and depression FED was unable/didn't want to stop subprime economic crash AND LO AND BEHOLD PEOPLE STILL SUPPORT THE FED People stand behind the FED. You are morons of the highest order, even if you are paid to be FED shill, You are still morons because you are helping to destroy future of your own country how fuking moronic is that
The fractional reserve banking system can generate more money than Bernanke... if there are 100 million homes in the US and they all rise $13,000 that's 1.3 Trillion.. if people are buying and selling maybe 20% of those homes in a business cycle and borrowing to do so, and borrowing some extra to spend, then just the RE market might create more than Barnanke in one business cycle run-up... To put things in perspective, the richest person on earth could not pay to feed all the birds on earth for one day... Otoh, we have unfunded liabilities to the tune of about $1 million per taxpayer... so it's over, whatever is being done is just rearranging the seats on the Titanic..
But.....the FED controls interest rates which controls lending demand, which controls money supply. The whole thesis behind Central Banks was to mitigate the business cycle (tighten during booms, loosen during busts). Instead, the FED exacerbated it. Kept it low during booms, then ultra-low during busts. The net effect is the system never purged itself of malinvestment so we've got 3 decades worth of excess crap lodged in the system. Doesn't anybody wonder why the DJIA did 600% over thirty years? Nope. They just think its "Free money". Same with home prices. Average per annum GDP is ~2%, yet home prices were going up like 8% a year. Nobody cares or even thinks where this money comes from. It's all Greek to them
what is disturbing is the trillions were to pay for the 10 billion dollar booked profits for wall street firms and million dollar bonuses. it's not printed,,,it's debt...that the taxpayer now owes. those newly printed money is IOU...money is hot potatoes in theory. The FED owes money..that is why the FED doesn't want to be audited. there is no incenetive to save or can't save with lower standards of living. min. wage job earners don't have any savings. you are better off spending the money than putting it in the bank making no interest..there was a time when money had value,,you pay interest to 'borrow' money. and the savers are paying for the rise in the markets with zero 2% interest and rising gas prices...oh yeah there is no free lunch...who paying for this... dollar lost 30% in value since 2000.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=192311 Check the above ET post. Now that the Fed has helped the banks, they don't want to monetize any normal gov't debt.
Go buy a new Miami condo before the Greeks with sneakers snap them all up. They cost $350 per foot to build and you can get them for around $65 per foot....what kind of inflation is that?
I read somewhere the US currency is the easiest of the major currencies to forge and the Russian mafia has printing presses going full tit printing notes. Maybe I should run myself up a million or 2. Better make it a billion or 2 while we are at it. If widow Twankey can why not me too ? I can just see Ivan playing poker with Bernanke I will up your billion by another 2 billion !! Make that 1 billion, the ink isn't dry yet on the last run
What's all the FUSS about. Have we been asleep the last 100 plus years. Evidently YES. Inflation is nothing new. It's the way of the world. Monetizing is the way govmts pay for election promises and overspending to buy your votes. That's why over70% of the world's millionaires acheived wealth through REAL ESTATE. They bought & held fot 20 plus years and inflation (monetization of debt). takes care of the rest. Why are Glen Beck and the conspiracy cults trying to change something that has been with us for decades. NEWS FLASH! You are not going to change the world. You're not that important! Stop whining, and figure out how to use your newfound knowledge to you advantage. Buy and hold and pass it down to your kids. This is the main way to wealth when your name is not Mayweather, Woods, Gates etc. Get it now?????? LOL!