Comments on: Will the Bailouts Transform Us from Global Superpower to Banana Republic?

By: john redmond

john redmond — Fri, 27 Mar 2009 07:03:28 +0000

All you need to understand about all this nonsense is that when you pump new dollars into the US economy without the backing of an equal amount of new real wealth (Gold,Oil,Etc.) you debase the value of all existing dollars. It does not matter where the new funny money comes from. The bottom line is that if you have your life savings in T-bills, federal bonds, CD's, or cash, you are going to be thrown into a hell of poverty and woe.

By: Kim Beyeler

Kim Beyeler — Thu, 26 Mar 2009 23:38:10 +0000

There is a lot about money that most people don't know, like-the federal reserve notes are printed by government and sold to the fed for cost of printing then bowwered back at face value plus interest. All money in circulation is bowwered into circulation plus interest. No money to pay interest is created so someone has to lose principle so someone else can pay their interest. The system is designed mathmaticly to fail. More and more money must be bowwered to keep the supply from shrinking. Whenever someone pays off their dept, that money leaves the supply. For more information google "money creation". We need Honest money now.

By: Mary Diane Dolan

Mary Diane Dolan — Thu, 26 Mar 2009 18:06:30 +0000

Jacob and eric are saying something interesting, but I am failing to follow what they are saying. The US Treasury is the entity that is on the hook for the money owed to foreign creditors. The US Treasury doesn't have enough money to pay the creditors. So, the Treasury borrows (at least most of) the money from the Fed (said here to be a privately owned and operated company. Okay). Well, where does this company get ITS money?

One possible answer: The company is a company of bankers. That is to say, they profit from lending long and borrowing short. Right now they are, overwhelmingly, LENDING. To the US Treasury. Just as the foreign creditors are. And, like the foreign creditors, they're getting near-zero interest.

I wonder if I am getting this anywhere near right???

By: Martha

Martha — Thu, 26 Mar 2009 17:11:28 +0000

Granny git your gun and your bible. These guys are a lying.

By: Richard Lefcourt

Richard Lefcourt — Thu, 26 Mar 2009 16:23:43 +0000

What we're suffering from is the distortion caused by trillions of dollars shifting relatively quickly from developed economies to OPEC and China: prolonged negative foreign trade. The credit and housing meltdowns are collateral damage caused by desparate, mostly American, consumers, trying to maintain their former lifestyles while their jobs got out-sourced and our country imported more and more oil, and the greedy bankers and mortgage brokers who facilitated their borrowing. The damage would not have been nearly as traumatic if the cash had stayed within our borders. The quickest fix: more domestic drilling for oil and gas, and more domestic manufacturing- fast.

By: eric

eric — Thu, 26 Mar 2009 14:51:31 +0000

What Jacob said is true. The government owns no such printing press. If the "Federal government" wants to spend money they either need to raise that money through taxes or borrow it from the "Federal Reserve" Corporation which is a privately owned and operated company. If we could print our own money then we would owe no interest on the national debt. In fact there would be no national debt, just dollars which would resemble the Mexican peso in value.

By: Jacob

Jacob — Thu, 26 Mar 2009 13:35:38 +0000

"will be made with money created out of thin air through the government’s printing presses."

That is an outright lie trying to make the People believe that the money belongs to the people. The Federal Reserve does not belong to the government. It belongs to private out of state shareholders that are full of adverice and malice to the people of the United States of America. They hate you and want you all "Naked and homeless" As Tomas Jefferson told the American people they would become if they adopted a fiat currency that is privately owned and controlled by outside interests. I think that an apology is due to the people.