The World's Best Kept Secret Revealed

[Drew99GT]

Originally Posted By: Merkava_4
Originally Posted By: Drew99GT
Granted, the power of the United States to have it's own sovereign currency and be able to fund itself internally comes from military, political, and economic power.


But the government doesn't own the money; the money is owned by the Federal Reserve bank.


No it isn't. Money isn't "owned" per se when it comes to it's origin. It is a unit of account. It is exogenous. here is how the government funds itself in today's digital age: when it needs to spend a dollar say to buy a bomb to drop in Iraq, it credits the account of the company it buys services from. Period, end of story, zip zilch. In the course of a year, if it has debited it's account at the Fed more than it's account has been credited with tax revenue, it has run a deficit. That's it. The federal Reserve plays no role in funding, lending, NOTHING, other than to act as the intermediary. The "money" spent literally comes into existence through the spending process. In fact, that is how the entire banking system works. banks don't lend your deposits out, they literally create it out of thin air subject to reserve requirements and capitalization requirements.

 

[Mr Nice]

Drew,

I was talking about the stock market bubble


PBM,

I agree a million % that our infrastructure especially up north is in bad share but we have billions for helping our so called allies.

 

[d00df00d]

This girl is confident in front of a crowd, she speaks clearly, and she can memorize a speech.

Seriously, good for her.

If that qualifies as intelligence, I think it's safe to say that the word "intelligence" no longer has much meaning.

 

[jrustles]

 

[jrustles]

How does any government of any nation become indebted to some private foreign entity? How is that even possible, operating under the assumption that "the government" of any sovereign nation is the controlling head of state.
protip: 'the government' is not the controlling head of state

PS_ we're back in Iraq, great time too with so many other distraction stories


http://www.washingtonsblog.com/2012/01/a...al-banking.html

 

[KrisZ]

Drew, everything is fine and dandy with your explanations, but tell me this. Why are we running ever increasing deficits and have to pay interest on them? To whom are we paying said interest? Is the interest money also created out of thin air?

 

[Petersubaru]

.. Quoted out of context…" They have no secret power only to serve as a Clearing House for the entire banking system." ..so the real secret is that the bankers are just really well paid bureaucrates caring for us.. Hmmm ..reminds me of this new movie..A Century of Enslavement @ https://www.youtube.com/watch?v=5IJeemTQ7Vk

 

[Merkava_4]

^ ^ ^ What a coincidence!! I just got through watching that video!!

 

[CourierDriver]

2 pages of responses, amazing...............

 

[dave1251]

I am just awaiting for the explanation on how the topic in this video is true.

 

[Vikas]

Originally Posted By: KrisZ
Drew, everything is fine and dandy with your explanations, but tell me this. Why are we running ever increasing deficits and have to pay interest on them? To whom are we paying said interest? Is the interest money also created out of thin air?
I am guessing interest is paid on T-Bills. Whoever has T-Bills, gets the interest?? But I think his main point seems to be valid that these are all nothing but some ones and zeros on a computer.

 

[Drew99GT]

Originally Posted By: KrisZ
Drew, everything is fine and dandy with your explanations, but tell me this. Why are we running ever increasing deficits and have to pay interest on them? To whom are we paying said interest? Is the interest money also created out of thin air?


Why? Because we can. It would be a political decision not to pay interest. Obviously the interest paid goes to the people who own treasuries. In terms of that being a budgetary constraint, it's a drop in a bucket. Yes, it can be money created out of thin air if the interest is spent via deficit spending.

Essentially, modern economies with sovereign currencies that float on international exchanges and are not backed by precious metals, are in between the transition from "hard" money systems to fully digitized. aka, many of the same institutions like the treasury market are still in place, but the Fed acts as an intermediary in funding deficits. Whenever the treasury needs to issue a primary auction, they have by Federal law employed primary dealers who have to buy that debt by law and it either a) gets resold into the secondary market, or b) their account gets swapped with the treasuries account and its netted out. aka, that is purely money created out of thin air. All that stuff doesn't need to happen; they could simply get rid of the Treasury market all together but it's the main vehicle by which they alter money in the system to control short term interest rates.

 

[Drew99GT]

Originally Posted By: Petersubaru
.. Quoted out of context…" They have no secret power only to serve as a Clearing House for the entire banking system." ..so the real secret is that the bankers are just really well paid bureaucrates caring for us.. Hmmm ..reminds me of this new movie..A Century of Enslavement @ https://www.youtube.com/watch?v=5IJeemTQ7Vk


You think you're enslaved by the Federal Reserve? Why not move then to some other country that is more free and break free of those shackles! How exactly is the banking system holding you back???

Every employee of the Federal Reserve's salary, up to the chairman, is publicly available. Ben Bernanke drove a Ford Focus for cripes sake. He's not some evil doer.

now, if you want to talk about PRIVATE banks that rip people off and screwed up the entire system during the housing meltdown, yea, I agree. They are shysters.

 

[jrustles]

lol. Really?

 

[Drew99GT]

Originally Posted By: jrustles
lol. Really?


LOL. Thanks for the substantive rebuttal.

 

[Petersubaru]

Originally Posted By: Drew99GT
Originally Posted By: Petersubaru
.. Quoted out of context…" They have no secret power only to serve as a Clearing House for the entire banking system." ..so the real secret is that the bankers are just really well paid bureaucrates caring for us.. Hmmm ..reminds me of this new movie..A Century of Enslavement @ https://www.youtube.com/watch?v=5IJeemTQ7Vk


You think you're enslaved by the Federal Reserve? Why not move then to some other country that is more free and break free of those shackles! How exactly is the banking system holding you back???

Every employee of the Federal Reserve's salary, up to the chairman, is publicly available. Ben Bernanke drove a Ford Focus for cripes sake. He's not some evil doer.

now, if you want to talk about PRIVATE banks that rip people off and screwed up the entire system during the housing meltdown, yea, I agree. They are shysters.
…You may find this hard to understand, so while I support the youtube movie, I also support and agree to what you are saying…there are many sides to this developing story and if we lived as neighbors probably better discussed over a bottle of wine or your favorite beverage…So to answer your question about enslavement…on a personal level, of course not, but I am not speaking for the greater community (country)…not because I have money in the bank or a good job or even have low wage people working for me and live off there benefit, … By not living or encouraging debt to finance ones quality of life has given me the privilege of being, in a way "my own banker" borrowing against my own assets ….I don't know where you come up with these questions, but I will continue to answer, so,…Moving to another country makes no sense, since being a tax payer in both countries gives me the benefits of both countries…more importantly, my family escaped from a communist country and has seen and experienced what debt financing does to a country against its people …It really comes down to a philosophical position..for example, a working father may say he works to provide for his family …for me, my family is secondary…I work to stay out of debt and my family benefits… Unlike the gov't I don't have the privilege of printing money out of thin air…wellll on second thought maybe I do, sort of, by using my credit card or some other method to enter into there controlling game..No thanks...

 

[Petersubaru]

Drew99Gt… I wanted to ask a question ..who are the We in your beginning sentence "Why? Because we can…