Posted on 12/14/2009 9:00:16 AM PST by FromLori
April Fool! "Hope and Change"=worthless US government IOUs like California.
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.
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.
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%.
I like you.
Ok! Thanks for looking on the bright side, sickoflibs!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.