Killing the Currency

Look at the bright side, when the developing nations get the Obama-dollars for Climate Change reparations they will find out no developed country will take them.

April Fool! "Hope and Change"=worthless US government IOUs like California.

To impose the entire package on an economy that is mired in the worst postwar recession, is a recipe for disaster.

Duh. Which is exactly what conservatives should want to happen. Socialism never works; not Russia, not here. The sooner this mofo blows up, the sooner we can get working on USA 2.0.

Clearly the U.S. government will be incurring massive new debts in the years to come.

Wrong. The USA as we currently know it won't be around in a few years to incur "massive debt". Forget secession, armed rebellion, tax parties, etc. It all comes down to money, specifically, who has the ability to coin & regulate commerce.

When states begin to issue their own script (configured in whatever fashion necessary to circumvent Constitutional prohibitions) in earnest during 2010, primarily for inter-state transactions such as state income, property, sales & vehicle taxes, then we'll finally begin down the road towards de-federalization.

The next big step will individual state repudiation of the $50 trillion or so of federal debt & unfunded liabilities like S/S, Medicare, etc. When no one is left to pay, the paper contracts they are written upon will have the same value as Confederate money.

USA 1.0 is going to end not with a bang, but with a whimper. The reformation of USA 2.0 will very similar to the 1st version, in that it will be a voluntary association of sovereign states aligned to provide common defense, etc.

Only a fraction—typically around 10 percent—needs to be held “on reserve” to back up the $100 balance of the original depositor.

Wrong. With the repeal of Glass-Steagal, the investment banking sides of commercial banks are allowed leverage up around 50:1. Even better, with US taxpayers on the hook for AIG, both US & Euro banks can leverage even higher, but still meet int'l Basel II capital requirements, with the help of CDS.

The banks are levered so highly, that even an increase of 1-2 pts in interest rates will destroy their MBS portfolios to the tune of $1T plus. Thus, the Fed will ALWAYS print the necessary dollars to corner the entire market for both Treasuries and GSE (agency) paper to keep rates between 2-5%.

Socialism never works; not Russia, not here. The sooner this mofo blows up, the sooner we can get working on USA 2.0.

I like you.

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

How about the positive benefits of a worthless dollar ? :1) Illegals won't be able to come here to send money home, 2) companies will flee to USA for cheap labor, 3) We will feel rich as our houses will be worth millions (can we refinance each month instead of working?)

Ok! Thanks for looking on the bright side, sickoflibs!

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