My degree is in Aerospace Electronics and in Electrical Engineering, so I plan on working on that as much as I can.
I am convinced that the sea weed bio fuel is going to be the major replacement to fossil fuel technologies. According to a lab at Embry Riddle Aeronautical University, the sea weed biofuel can grow in volume by a factor of ten in a single day. It is very cheap and safe. It is probable that this will slowly find its way into the existing gasoline station infrastructure and will begin to replace gasoline engines with the use of similar flex fuel technologies we see today with some cars and trucks.
When this happens, the use of personal aircraft will be all that much more cost friendly for the general public. Additionally, I'll note that vertical takeoff continues to be refined by companies like boeing and lockheed martin.
Your idea is really not that far off. Just sounds crazy by todays standards.
Ah yes I have seen a few news pieces on that, it does look very promising. I also like what Blacklight is working on as well, they are working on developing a chemical process which releases latent energy from hydrogen atoms. http://www.blacklightpower.com/
So temporalsky, (I think from this point forward I'll just call you Scotty) when you build the Enterprise please make sure take me with you.
If you want a good perspective on how Weimar fell into hyperinflation in 1919 here is a good read, it discusses that and where we are at and how we may or may not fall into that trap.
We're not going to just fall into hyperinflation, Vegas, the dollar is going to flat out lose its worth. Too many numbers are flying around, something like 90% of money is electronic.
It's like using a sailboat to shuttle gigantic warships around a harbor. The system isn't designed for the prerequisites of the environment it functions in!
It either needs to be redesigned or a newer and possibly more effective system must replace it, and with the way things are, it's probably better to just get a new model since the current one is out dated, if you know what I mean. That guy named Jacque Fresco is an example of what i'm talking about. I learned about the guy awhile ago and I really liked his ideas, but im not gonna preach. He's got some things that ought to be seriously considered though.
We're not going to just fall into hyperinflation, Vegas, the dollar is going to flat out lose its worth. Too many numbers are flying around, something like 90% of money is electronic.
It's like using a sailboat to shuttle gigantic warships around a harbor. The system isn't designed for the prerequisites of the environment it functions in!
It either needs to be redesigned or a newer and possibly more effective system must replace it, and with the way things are, it's probably better to just get a new model since the current one is out dated, if you know what I mean. That guy named Jacque Fresco is an example of what i'm talking about. I learned about the guy awhile ago and I really liked his ideas, but im not gonna preach. He's got some things that ought to be seriously considered though.
I agree, I think we learned a few things from past examples, however we will see double digit inflation likely worse than 1970's. If they blow it from there, well it's possible but at this point I don't think hyperinflation. The electronic factor though brings me no comfort because we could end up in trouble faster at the stroke of key. Because we exist on fiat currency it's already backed by nothing, the difference between electronic money and paper money is just the cost between printing and not printing.
I agree our system needs to be redesigned, the problem I have with fiat currency is it's manipulation is way too easy. It was the manipulation of derivative and credit default swap paper funny money that got us into this mess. We need a solid anchor tying every dollar to some kind of mechanism that can't be easily played with. It was utter insanity to allow firms to be able to package time bomb mortgage debt into paper bundles and then allow people to invest in them as an asset. That's like packaging wet shit into an air tight container and then selling it to people as flowers. Wait till the open the lid.
Ah yes I have seen a few news pieces on that, it does look very promising. I also like what Blacklight is working on as well, they are working on developing a chemical process which releases latent energy from hydrogen atoms. http://www.blacklightpower.com/
So temporalsky, (I think from this point forward I'll just call you Scotty) when you build the Enterprise please make sure take me with you.
damn straight i'll build the enterprise. and yes i'll take you with me if you want haha
i dont mind if you call me scotty lol
I think countries should only be allowed to barter. Tea for salt, oil for corn, steel for copper, and so on and so forth. This way it would be impossible for a country to rack up debt. It would also stimulate production across the board. Our job as Americans is to consume, most of our jobs facilitate this consumption. The problem is that other countries are completely capable of consuming what they produce for us. The only way to fix this is to equalize production and consumption. This might cost a lot of people their fluffy desk jobs but it is necessary if we want to maintain our title as leaders of the free world. Each country should be able to stand on its own. Outsourcing bit us in the ass.
There's one question I think you haven't answered Vegas. Let's propose we tie the dollar to gold again. Where are we gonna get the gold from? There's almost no gold left, yet the world needs more and more money and is producing more and more. How can you tie the dollar to a guarantee which there is simply too little of?
Quote from "Murderface" »
I think countries should only be allowed to barter. Tea for salt, oil for corn, steel for copper, and so on and so forth. This way it would be impossible for a country to rack up debt. It would also stimulate production across the board. Our job as Americans is to consume, most of our jobs facilitate this consumption. The problem is that other countries are completely capable of consuming what they produce for us. The only way to fix this is to equalize production and consumption. This might cost a lot of people their fluffy desk jobs but it is necessary if we want to maintain our title as leaders of the free world. Each country should be able to stand on its own. Outsourcing bit us in the ass.
It would also be impossible to invest.
"I want to start a farm to raise cattle."
"Great, I'll give you some timber to get started. But you must provide me with 20,000 avocados in trade."
"Wait, wha..?"
And you just hop into your bubble over there in the US and go back to the stone age, and watch as the rest of the world blows you out of the water. Economic crisis or not, you're not going to win by sitting there on your own.
PlugY for Diablo II allows you to reset skills and stats, transfer items between characters in singleplayer, obtain all ladder runewords and do all Uberquests while offline. It is the only way to do all of the above. Please use it.
Supporting big shoulderpads and flashy armor since 2004.
Each country would still have its own currency so its not like everyone would be bartering, just countries. It would make investing in other countries impossible. Your currency would be tied to your citizenship, so in order to invest in another country you would have to sell your stock and become a citizen of that country. If you want to go on vacation to another country you would be given a special currency that couldn't be used for buying stock.
You make it sound like we would be shutting ourselves in, when in truth we would be exporting more. It wouldn't be a bubble, it would be a union of self contained nations that trade surplus materials. This is the most effective way of trading. You cant value a dollar in a fiat system accurately but you can value raw materials.
There's one question I think you haven't answered Vegas. Let's propose we tie the dollar to gold again. Where are we gonna get the gold from? There's almost no gold left, yet the world needs more and more money and is producing more and more. How can you tie the dollar to a guarantee which there is simply too little of?
There's one question I think you haven't answered Vegas. Let's propose we tie the dollar to gold again. Where are we gonna get the gold from? There's almost no gold left, yet the world needs more and more money and is producing more and more. How can you tie the dollar to a guarantee which there is simply too little of?
It would also be impossible to invest.
I'll give you a detailed answer tonight after I get home, I'll dig up a few good reads that answer that.
Quote from "Ranim" »
Silver, add Silver to the equation.
Possibly but there is even less silver above ground than gold, so that is an interesting market too.
Quote from "PhrozenDragon" »
There's one question I think you haven't answered Vegas. Let's propose we tie the dollar to gold again. Where are we gonna get the gold from? There's almost no gold left, yet the world needs more and more money and is producing more and more. How can you tie the dollar to a guarantee which there is simply too little of?
It would also be impossible to invest.
OK, sorry it took so long to get this up, I had to write a letter to chew out my HOA, evil things they are.
With respect to how we could implement a new gold standard I think Ron Paul said it best
Ron Paul: Well, we should just go to the Constitution and look for our guidance. It says only gold and silver can be legal tender. When they debated this at the Constitutional Convention, they debated paper. They had [already] had the runaway fiat currency experience of the Continental dollar, and they didn't want that to happen [again], so they said there will be no "emitting bills of credit" -- which is paper money. So we'd have to go back to gold and silver coins.
But I don't like the notion that we have to return to exactly what we had in the 19th century, because there were some shortcomings. We had bi-metalism, so the government went and fixed the ratio of gold to silver. And markets don't [like that]. Governments can't set a market price. So you should either turn it over completely to the marketplace and let private money evolve, and use gold and silver, or if the government was to be involved, they should issue a currency and define it as a weight of gold or a weight of silver, but not fix the ratio. That to me would be a better standard than we had in the 19th Century.
About 3 minutes in he makes the above comments
With respect to not having enough gold, first I would say it was only 38 years ago we had a 40% gold exchange standard. Gold historically is money and the banks still consider it money as every central bank lists it as a reserve asset on the books. It's called God's money because it's no mans liability, it has no counter party risk. Gold has few industrial uses, jewelry the biggest. A high percentage of all the gold ever dug up remains above ground in the possession of people. If you get into learning about gold and silver mines you discover there is still a fair amount of gold below ground that can be procured.
David Morgan is one of worlds most renown experts on silver and mining in general. He and Michael Maloney cover some of this here in this video. http://goldsilver.com/player/id/14/cID/2/
Some really good videos I have found are on GoldSilver.com, Maloney gets interviews with some big names. At the bottom is an awesome 3 hour presentation (probably the best 3 hour presentation you can sit and watch for the next 20 years of your life) with Chris Martenson called the Crash Course where he covers the 3 E's Energy, Economy, and Environment. Really eye opening. http://goldsilver.com/videos/
I don't get how people make poor decisions like all this economic how-to-do. I mean the only conclusion based on all i've learned is that it's an artificial situation. So then what benefit is there in a market meltdown?
I don't get how people make poor decisions like all this economic how-to-do. I mean the only conclusion based on all i've learned is that it's an artificial situation. So then what benefit is there in a market meltdown?
To some degree it is a confidence issue but there is more to it than that. There are numbers which need to maintain a certain degree of balance. For example we can't be just borrowing from everyone forever without it causing problems, it makes other countries lose confidence us.
The rich love downturns, it makes shorting a stock easy and they can make more in weeks shorting than they could in years of a bull market. There will always be up and down cycles, every 70 to 100 years there are huge cycles, google a Kondratieff cycle.
Obama just today admitted we are broke, flat penniless broke.
'WE'RE OUT OF MONEY'
Sat May 23 2009 10:32:18 ET
SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?
Could probably get more money out of the corporate tax, considering lots of corporations don't pay it.... Eliminate the income tax and put in a consumers tax... that would probably increase our GDP a lot....
Shut down military bases in Europe, stop giving money to other countries to maintain the empire, impose stricter welfare qualifications, and decrease government spending by severely limiting credit....
maybe that would be enough to almost balance it.
If we could just have a world war so that we would start producing out of despiration like back in WW2.
See, this is what I hate about the monetary system. We have the resources to do it... just we don't have the money. That's fucking financial slavery.
Unfortunately you can't trust the CPI, unemployment figures, or even the GDP. This is why I don't buy any of this green shoot or recovery talk. They first have to answer what have they fixed? The prevented us from having a proper correction in 2001, and they did it again this time. All they have done is buy time by re-inflating an over-inflated market. Get a load of this from Peter Schiff's book Crash Proof.
The GDP started out as the GNP (gross national product) during World War II, when it was used to measure wartime production capacity. It was never intended to be used as a measure of the country?s economic well-being, and its shortcomings are laughably numerous.
By definition, the GDP is the sum total of the monetary value of all final goods and services bought and sold within U.S. borders in a given year. The distinction between GDP and GNP, incidentally, is that GDP doesn?t care about the nationality of the producer. It includes everything transacted within our borders, even BMWs manufactured in North Carolina. (GNP, which is almost never used, would exclude foreign manufacturers in the United States and include goods and services produced by U.S. firms operating abroad.) GDP thus includes the totality of consumer, investment, and government spending, plus the value of exports, minus the value of imports.
One big problem with GDP, although represented as a measure of economic health, is that it makes no effort to distinguish between transactions that benefit the nation?s health and those that subtract from it. Destructive activities are included as well as productive activities. The GDP may not have been designed to measure economic well-being, but since it is used for that purpose, everything it includes?every monetary transaction that takes place anywhere and anytime within its time frame is, by definition, progress and a contribution to the nation?s economic health. Thus Hurricane Katrina added to the GDP despite tragic losses to the populace, as do other negative expenses, such as crime prevention costs, expenses incurred in divorces, medical costs, and national defense expenditures.
Peter Schiff - P42 Crash Proof
I voted for Obama because he was better than McCain in my estimation, I think McCain is probably a nice guy but I was tired of Bush's "stick a boot up the worlds ass" international policy and McCain married that policy too much. The Republican's hypocritical debate about the Democrat's reckless spending was too much when Bush was spending like a liberal on steroids. They of course were going to try and spend our way out of this mess also, just differently like how you spend too much money would make a difference. Either way we would be where we are today regardless.
I would have voted for Ron Paul if I thought he had a prayers chance in hell of winning, but the writing was on the wall, Ron Paul didn't make a compelling case as a candidate despite being better than all on the economy. The media of course made sure the truth didn't get represented and so went Paul's chances, in their defense he is a little squirrelly. Fiscally though we should be listening to Ron Paul a lot more than the rest of Washington.
Oh this just gets more fun as time goes by. If anyone is wondering Obama can't fix this, it goes beyond his influence alone.
China warns Federal Reserve over 'printing money'
China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds.
Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."
"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.
From James Turk of Gold Money
Hyperinflation is caused by the central bank buying the debt of a government for which spending is out of control, and then turning that debt into currency, which describes what is happening in the US today. So falling dollar exchange rates as we have seen in recent weeks is a normal response to the Fed's actions. And the more Treasury paper the Fed buys, the lower the dollar will fall in the foreign exchange markets and more to the point, the higher gold will rise. http://goldmoney.com/en/commentary.html
It all seems like a paradox, why are we even using credit. I mean isn't it technically illegal to use credit as trade tender?
It is unconstitutional here in the US, but congress gave that power away. Notes of credit are are also expressly forbidden but the Federal Reserve Note which is just that. So our dollars are not really dollars anymore. The US has seen at least two failed currencies before, our first currency was the Continental and the second was the Greenback dollar. Both died after becoming utterly worthless. Paper is easily manipulated. The U.S. Constitution forbids the states from making anything other than gold and silver coin legal tender for payment of debts. It was intended that the metal value of the coin, which people in the business call ?melt value,? would equal the nominal value of the coin.
In 1863 (until 1934) the first US Currency was issued, the Gold certificate and it read ?This certifies that there have been deposited in the Treasury of the United States ten dollars in gold payable to the bearer on demand. Silver Certificates has a similar inscription and were in circulation until 1963. Then along came the Federal Reserve Note under the Federal Reserve Act of 1913 (Owen-Glass Act ? now there is an interesting story worth looking up).
One of the newly formed FED?s actions were to introduce the Federal Reserve Note and modify the message on our gold backed money to say they were redeemable ?in gold or any lawful money?, they also were given the power to provide for an ?elastic money supply.? and then the final blow was in 1934 the Gold Reserve Act removed the word gold from Federal Reserve notes and a new redemption clause read, ?This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank.? the dollar was now intrinsically worthless.
The dollar lost it?s backing in gold but was still considered ?good as gold? because of the Bretton Woods Agreement. In that agreement the dollar was pegged to gold and for that reason all other currencies pegged to the dollar as the reserve currency. By 1971, President Nixon was forced to close the ?gold window? because under the agreement France was emptying our vaults of gold. The significance of that repudiation cannot be minimized. It was the national equivalent of declaring bankruptcy.
You see we have been slowly robbed of our wealth over time. Today the dollar placed into the system at interest, we owe interest on every dollar printed. The dollar itself is now a debt. We have even been screwed out of our coins, until 1964 dimes, quarters, half dollars, and silver dollars we made out of 90% silver. Then that ended except for the Kennedy half dollars between 1965 to 1970 they were made out of 40% silver and then none.
It kind of pisses me off when I think of it.
We've broken fresh ground with the printing press above 1,800 billion dollars.
So we basically owe the Federal Reserve a percentage of every dollar that we buy from them to use in circulation?
We'll never repay the debt, will we?
This makes me wonder how were able to become confident that it was ever going to work.
That is exactly right , we pay interest on every dollar ever printed. When the FED raises or lowers interest rates, it is the rate they are loaning dollars to the banks. So every dollar in circulation is a debt to the FED, a private company that has never been audited and is tax exempt. The FED is owned by the banks, JP Morgan Chase (it's largest holder), BofA, etc. The banks in turn get to engage in fractional reserve banking and loan out up to 40 elf'n magic dollars for every real dollar deposited. That is why helicopter Ben started dropping dollars from the sky on the banks, if there was a run on the banks by the people to pull their money out, the banks wouldn't be stuck in the hole they were in 1929.
So when the FED bails out the banks or engages in quantitative easing, they are taking care of themselves. The interest rates alone on the dollar from the FED is the means by which the FED makes tax free money at the expense of the tax payers, it's a stealth tax. Another stealth tax is inflation, by diluting the value of the dollar through the excessive printing the FED is borrowing money from unwilling and hand tied participants such as China and placing the burden of repayment on the tax payer as it hands the money to large financial institutions.
They get the full value of the dollar up front while we get the bland watered down dollar later. That $3.00 gallon of milk today will cost $10.00 tomorrow. No we will not pay the debt down, The FED is stuck in a liquidity trap, if they dare raise interest rates it will crush a recovery, it would make the housing situation worse, and plunge us further into a deeper downturn. But then the FED is already doing that now with the bond market and buying it's own Kool-aid.
We can't print our way out of this mess, it doesn't work.
This why I choose silver over gold.
David Morgan is one the fore most experts on silver in the world, and explains why silver is a great long term investment as a store of wealth. In short according to the USGS says we?ll run out of silver from Earth?s surface around 2020. If you understand how silver mining occurs this is not at all a stretch. http://www.silver-investor.com/davidmorgancommentary/articles/5-29-09_ibtimes61_Silver-LongTerm.html
Another good reason is it moves up and down in greater percentages than gold.
NEW YORK (MarketWatch) -- Silver futures surpassed $15 an ounce Thursday for the first time in more than nine months, rising more than 1%, as a possible economic recovery raised inflation concerns.
The metal has many industrial uses, but it is also seen as a hedge against inflation. With newly released economic data indicating an economic recovery and with concerns over long-term inflation rising, investors pushed up silver prices. The metal has gained 33% this year. In comparison, gold has risen less than 10%. http://www.marketwatch.com/story/silvers-tops-15-on-economy-inflation-worries?siteid=
Major wake up call
Chinese students laugh at Geithner's assurances
"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.
His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home. http://www.reuters.com/article/companyNewsAndPR/idUSPEK14475620090601
Debt Debt Debt
China?s Yu Tells U.S. Not to Be Complacent About Debt (Update1)
June 2 (Bloomberg) -- China?s former central bank adviser Yu Yongding will meet Treasury Secretary Timothy Geithner today and tell him the U.S. shouldn?t be complacent about China continuing to buy Treasuries.
?I wish to tell the U.S. government: ?Don?t be complacent and think there isn?t any alternative for China to buy your bills and bonds?,? Yu said in an interview yesterday. ?The euro is an alternative. And there are lots of raw materials we can still buy.? http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aoE7033VGQcI
Rollback Post to RevisionRollBack
To post a comment, please login or register a new account.
Ah yes I have seen a few news pieces on that, it does look very promising. I also like what Blacklight is working on as well, they are working on developing a chemical process which releases latent energy from hydrogen atoms.
http://www.blacklightpower.com/
So temporalsky, (I think from this point forward I'll just call you Scotty) when you build the Enterprise please make sure take me with you.
If you want a good perspective on how Weimar fell into hyperinflation in 1919 here is a good read, it discusses that and where we are at and how we may or may not fall into that trap.
The Weimar Hyperinflation? Could it Happen Again?
http://globalresearch.ca/index.php?context=va&aid=13673
It's like using a sailboat to shuttle gigantic warships around a harbor. The system isn't designed for the prerequisites of the environment it functions in!
It either needs to be redesigned or a newer and possibly more effective system must replace it, and with the way things are, it's probably better to just get a new model since the current one is out dated, if you know what I mean. That guy named Jacque Fresco is an example of what i'm talking about. I learned about the guy awhile ago and I really liked his ideas, but im not gonna preach. He's got some things that ought to be seriously considered though.
I agree, I think we learned a few things from past examples, however we will see double digit inflation likely worse than 1970's. If they blow it from there, well it's possible but at this point I don't think hyperinflation. The electronic factor though brings me no comfort because we could end up in trouble faster at the stroke of key. Because we exist on fiat currency it's already backed by nothing, the difference between electronic money and paper money is just the cost between printing and not printing.
I agree our system needs to be redesigned, the problem I have with fiat currency is it's manipulation is way too easy. It was the manipulation of derivative and credit default swap paper funny money that got us into this mess. We need a solid anchor tying every dollar to some kind of mechanism that can't be easily played with. It was utter insanity to allow firms to be able to package time bomb mortgage debt into paper bundles and then allow people to invest in them as an asset. That's like packaging wet shit into an air tight container and then selling it to people as flowers. Wait till the open the lid.
damn straight i'll build the enterprise. and yes i'll take you with me if you want haha
i dont mind if you call me scotty lol
Fuck you, I'm a dragon.
It would also be impossible to invest.
"I want to start a farm to raise cattle."
"Great, I'll give you some timber to get started. But you must provide me with 20,000 avocados in trade."
"Wait, wha..?"
And you just hop into your bubble over there in the US and go back to the stone age, and watch as the rest of the world blows you out of the water. Economic crisis or not, you're not going to win by sitting there on your own.
You make it sound like we would be shutting ourselves in, when in truth we would be exporting more. It wouldn't be a bubble, it would be a union of self contained nations that trade surplus materials. This is the most effective way of trading. You cant value a dollar in a fiat system accurately but you can value raw materials.
Fuck you, I'm a dragon.
I'll give you a detailed answer tonight after I get home, I'll dig up a few good reads that answer that.
Possibly but there is even less silver above ground than gold, so that is an interesting market too.
OK, sorry it took so long to get this up, I had to write a letter to chew out my HOA, evil things they are.
With respect to how we could implement a new gold standard I think Ron Paul said it best About 3 minutes in he makes the above comments
With respect to not having enough gold, first I would say it was only 38 years ago we had a 40% gold exchange standard. Gold historically is money and the banks still consider it money as every central bank lists it as a reserve asset on the books. It's called God's money because it's no mans liability, it has no counter party risk. Gold has few industrial uses, jewelry the biggest. A high percentage of all the gold ever dug up remains above ground in the possession of people. If you get into learning about gold and silver mines you discover there is still a fair amount of gold below ground that can be procured.
David Morgan is one of worlds most renown experts on silver and mining in general. He and Michael Maloney cover some of this here in this video.
http://goldsilver.com/player/id/14/cID/2/
Some really good videos I have found are on GoldSilver.com, Maloney gets interviews with some big names. At the bottom is an awesome 3 hour presentation (probably the best 3 hour presentation you can sit and watch for the next 20 years of your life) with Chris Martenson called the Crash Course where he covers the 3 E's Energy, Economy, and Environment. Really eye opening.
http://goldsilver.com/videos/
This is another reason why you see people buying gold now.
May 22 - Gold visits old relationship with the US dollar
http://www.theaustralian.news.com.au/business/story/0,28124,25520890-5017999,00.html
The world may never know...
To some degree it is a confidence issue but there is more to it than that. There are numbers which need to maintain a certain degree of balance. For example we can't be just borrowing from everyone forever without it causing problems, it makes other countries lose confidence us.
The rich love downturns, it makes shorting a stock easy and they can make more in weeks shorting than they could in years of a bull market. There will always be up and down cycles, every 70 to 100 years there are huge cycles, google a Kondratieff cycle.
Obama just today admitted we are broke, flat penniless broke.
Shut down military bases in Europe, stop giving money to other countries to maintain the empire, impose stricter welfare qualifications, and decrease government spending by severely limiting credit....
maybe that would be enough to almost balance it.
If we could just have a world war so that we would start producing out of despiration like back in WW2.
See, this is what I hate about the monetary system. We have the resources to do it... just we don't have the money. That's fucking financial slavery.
I would have voted for Ron Paul if I thought he had a prayers chance in hell of winning, but the writing was on the wall, Ron Paul didn't make a compelling case as a candidate despite being better than all on the economy. The media of course made sure the truth didn't get represented and so went Paul's chances, in their defense he is a little squirrelly. Fiscally though we should be listening to Ron Paul a lot more than the rest of Washington.
China warns Federal Reserve over 'printing money'
China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds.
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warns-Federal-Reserve-over-printing-money.html
From James Turk of Gold Money
Hyperinflation is caused by the central bank buying the debt of a government for which spending is out of control, and then turning that debt into currency, which describes what is happening in the US today. So falling dollar exchange rates as we have seen in recent weeks is a normal response to the Fed's actions. And the more Treasury paper the Fed buys, the lower the dollar will fall in the foreign exchange markets and more to the point, the higher gold will rise.
http://goldmoney.com/en/commentary.html
It is unconstitutional here in the US, but congress gave that power away. Notes of credit are are also expressly forbidden but the Federal Reserve Note which is just that. So our dollars are not really dollars anymore. The US has seen at least two failed currencies before, our first currency was the Continental and the second was the Greenback dollar. Both died after becoming utterly worthless. Paper is easily manipulated. The U.S. Constitution forbids the states from making anything other than gold and silver coin legal tender for payment of debts. It was intended that the metal value of the coin, which people in the business call ?melt value,? would equal the nominal value of the coin.
In 1863 (until 1934) the first US Currency was issued, the Gold certificate and it read ?This certifies that there have been deposited in the Treasury of the United States ten dollars in gold payable to the bearer on demand. Silver Certificates has a similar inscription and were in circulation until 1963. Then along came the Federal Reserve Note under the Federal Reserve Act of 1913 (Owen-Glass Act ? now there is an interesting story worth looking up).
One of the newly formed FED?s actions were to introduce the Federal Reserve Note and modify the message on our gold backed money to say they were redeemable ?in gold or any lawful money?, they also were given the power to provide for an ?elastic money supply.? and then the final blow was in 1934 the Gold Reserve Act removed the word gold from Federal Reserve notes and a new redemption clause read, ?This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank.? the dollar was now intrinsically worthless.
The dollar lost it?s backing in gold but was still considered ?good as gold? because of the Bretton Woods Agreement. In that agreement the dollar was pegged to gold and for that reason all other currencies pegged to the dollar as the reserve currency. By 1971, President Nixon was forced to close the ?gold window? because under the agreement France was emptying our vaults of gold. The significance of that repudiation cannot be minimized. It was the national equivalent of declaring bankruptcy.
You see we have been slowly robbed of our wealth over time. Today the dollar placed into the system at interest, we owe interest on every dollar printed. The dollar itself is now a debt. We have even been screwed out of our coins, until 1964 dimes, quarters, half dollars, and silver dollars we made out of 90% silver. Then that ended except for the Kennedy half dollars between 1965 to 1970 they were made out of 40% silver and then none.
It kind of pisses me off when I think of it.
We've broken fresh ground with the printing press above 1,800 billion dollars.
http://research.stlouisfed.org/publications/usfd/page3.pdf
We'll never repay the debt, will we?
This makes me wonder how were able to become confident that it was ever going to work.
That is exactly right , we pay interest on every dollar ever printed. When the FED raises or lowers interest rates, it is the rate they are loaning dollars to the banks. So every dollar in circulation is a debt to the FED, a private company that has never been audited and is tax exempt. The FED is owned by the banks, JP Morgan Chase (it's largest holder), BofA, etc. The banks in turn get to engage in fractional reserve banking and loan out up to 40 elf'n magic dollars for every real dollar deposited. That is why helicopter Ben started dropping dollars from the sky on the banks, if there was a run on the banks by the people to pull their money out, the banks wouldn't be stuck in the hole they were in 1929.
So when the FED bails out the banks or engages in quantitative easing, they are taking care of themselves. The interest rates alone on the dollar from the FED is the means by which the FED makes tax free money at the expense of the tax payers, it's a stealth tax. Another stealth tax is inflation, by diluting the value of the dollar through the excessive printing the FED is borrowing money from unwilling and hand tied participants such as China and placing the burden of repayment on the tax payer as it hands the money to large financial institutions.
They get the full value of the dollar up front while we get the bland watered down dollar later. That $3.00 gallon of milk today will cost $10.00 tomorrow. No we will not pay the debt down, The FED is stuck in a liquidity trap, if they dare raise interest rates it will crush a recovery, it would make the housing situation worse, and plunge us further into a deeper downturn. But then the FED is already doing that now with the bond market and buying it's own Kool-aid.
We can't print our way out of this mess, it doesn't work.
This why I choose silver over gold.
Another good reason is it moves up and down in greater percentages than gold.
Major wake up call
Chinese students laugh at Geithner's assurances
"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.
His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home.
http://www.reuters.com/article/companyNewsAndPR/idUSPEK14475620090601
Debt Debt Debt
China?s Yu Tells U.S. Not to Be Complacent About Debt (Update1)
June 2 (Bloomberg) -- China?s former central bank adviser Yu Yongding will meet Treasury Secretary Timothy Geithner today and tell him the U.S. shouldn?t be complacent about China continuing to buy Treasuries.
?I wish to tell the U.S. government: ?Don?t be complacent and think there isn?t any alternative for China to buy your bills and bonds?,? Yu said in an interview yesterday. ?The euro is an alternative. And there are lots of raw materials we can still buy.?
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aoE7033VGQcI