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To: Parley Baer

or, Ron Paul. I loved the Santorum line that Paul is mostly wrong, but not always wrong.

I liked Paul’s thought about cancelling the 1.5 trillion in treasuries the Federal reserve is sitting on and drawing entrust on. WTH? What are they doing with that?


13 posted on 08/11/2011 8:34:31 PM PDT by FreeAtlanta (Fight for Liberty)
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To: FreeAtlanta

They printed 3T+ and are ready to ship it out to all the banks, but the banks don’t want it. They have the paper (IOU) and can call for it but they know that inflation is going to kick in soon so they won’t draw it from the Federal Reserve because it will then be sitting on their books. If they drew and loaned it and inflation kicks in, the loans will be repaid with inflated dollars. The inflation rate will far exceed the interest rate they can currently demand and they would lose alot of money, hence, no one is loaning money and they are happy to get .25% interest instead.


38 posted on 08/11/2011 8:49:21 PM PDT by John.Galt2012 (I'll take Liberty and you can keep the "Change"!)
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