http://video.google.com/videoplay?docid=1866496783791986992 interesting video that discusses related topics.
http://www.youtube.com/watch?v=TunrUzGBjlY&mode=related&search= another interesting fact i bet you never knew
if you guys are out there, it would be great if the ppl who posted on the original thread about the austrian town that was shut down, and the lincoln assassination in the context of his monetary policy could repost
Well i am sure the fed + other major world central banks used to be ultra corrupt and prolly still are a little (insider trading etc). This and plenty of other dodgy stuff goes on every day in the world of finance i am sure in the name of making money. However, some of the things you have said and are stated in documentaries as facts such as the debt spiral are not true. Eg. the interest on taxation that could be avoided if the govt printed money to be spent not debt. this is false since if we had banks not making money 'from nothing' as debt. Then they would have 100% reserves at all times => they would have to charge customers interest just to HOLD their money since the banks would not be able to make much money. This would effectively be taxation of the public, but in a different way. Also in this case economic growth would probably be slowed as business/people could not borrow money as easily. This and other myths are debunked in this article: http://home.hiwaay.net/~becraft/FRS-myth.htm#hd0 Bear in mind that i think banking etc IS corrupt in alot of ways, this cannot really be avoided imo. Too easy to get away with things that give a big potential reward.
i see what you mean. i guess then, i'm questioning the value added by the banking industry and US creditors as a whole in return for interest paid to finance our national debt. we can create as much money as we need. why borrow it back at interest? the national debt is currently almost $9,000,000,000,000 and increases by almost 1.5 billion a day. $29,000 per person the difference between inflation and depository interest is substantial, and exacerbated (one can argue even caused) by the printing to finance the debt. i can't imagine the cost of depositing would exceed the costs to ordinary people of inflation in the system. maybe banking should be a non profit public service
In 2000 the debt was about 5.8 trillion. At a conservative 6% avg interest the total yearly interest was 350 billion give or take. According to your link, the FederalReserve âsurplusâ that was to be given back to the US treasury was 3.7 Billion. The rest is some nice chunk of change for a business that prints a product out of thin air, and the taxpayers paying for it, debt, interest and all. â(b) Transfer for fiscal year 2000. (1) The Federal reserve banks shall transfer from the surplus funds of such banks to the Board of Governors of the Federal Reserve System for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury, a total amount of $3,752,000,000 in fiscal year 2000.â It appears this is the ultimate business model bar none.
Good job. Can someone better versed in economics and Fed market operations 'debunk' this? I know not all Government debt is financed by the Fed via money creation. A good proportion of US debt is purchased by individuals, investors, Corporations and Countries (notably China) via T-Bill purchases. Anyone know what the ratio is?