Posted on 02/27/2021 4:03:24 AM PST by Kaslin
At the Federal Reserve semi-annual testimony before Congress this week, Chair Jerome Powell should have been asked whether the Fed has become the national Reddit.
The Reddit stock frenzy created a pool of motivated buyers, irrespective of the value of the underlying company.
For more complicated reasons, the federal government is the biggest Redditer of all, Reddit on crack cocaine. Instead of billions, the government plays in the trillions. Instead of a handful of small cap stocks, it has hijacked the entire stock market. But the mechanism is the same. Flood the market with funds, and for good measure force interest rates to zero, eliminating alternative investments. The recent congressional Reddit hearings are parody in comparison to the government's role in driving market prices, in particular the Fed.
Let's make it specific. When Joe Biden promises to spend $1.9 trillion, where exactly does that money come from? Beyond that, even excluding the $1.9 trillion, how does the government finance four years of deficits, which the Congressional Budget Office recently estimated at $5.9 trillion? That's an expected one-term cumulative deficit of $7.8 trillion. Where indeed does this money come from?
The wrong answer is tax receipts. In FY2020, federal budget revenues — i.e., tax receipts — totaled $3.4 trillion — $1.6 trillion from income taxes; $1.3 trillion from payroll taxes; $0.2 trillion from corporate taxes; and the balance of $0.3 trillion from excise, custom duties, estate taxes, and miscellaneous. Spending, on the other hand, totaled $6.6 trillion, versus the pre-COVID budget of $4.8 trillion. The result is a record $3.1-trillion deficit.
(Excerpt) Read more at americanthinker.com ...
The people at the FED are professional bankers - they KNOW what they’re doing! /s
Everything is fine.
This is by no means uncharted. It has happened throughout history for thousands of years and always ends in war.
The worst depression in US history occurred AFTER the Feral Reserve was created.
The “Federal Reserve” is one of the biggest rackets ever created.
I KNOW..!! Lets sell Washington DC to the Chinese..! Oh wait.. They already own that... :(
Ever hear of hyperinflation? It is coming to a country near you (and me). Best example is the Weimar Republic (Germany) after World War I. It gave foundation and rise to Hitler. More recent examples are Zimbabwe and Venezuela. Prices rise by 50% or more every month. Interest rates of 20% and greater. Two winners - those that borrow at low interest rates and exporters for foreign currency instead of sovereign currency. Three staples to endure the period - real estate, energy, and precious metals. War is indicated as the terminus; either worldwide or civilly.
Ammo is the best currency. If you find some, buy it. It may not be your caliber, but it will serve as excellent “coins” for those that need it.
Hang on to your morals, ethics, an humanity.
Gwjack
I’m no economist, but I know that in the past (Lincoln with greenbacks in the Civil War), government have just “created money” that did NOT come with a debt. No interest due to the issuer. The money circulated, people were paid wages, debts were paid, the economy grew and value was created that matched the issued money. This has worked.
But the Central Banking model is different. As a Central Banker, I can let you borrow $100, but you need to pay me back $105. Where does that other $5 come from? Oh, I’ll just create it. But if you need it (to pay me back) you’ll have to borrow it from me. And then pay me back a bit more than $5.
This game can go on a long time, and the Central Bankers always win, because it is a rigged game. But we’re now playing with Trillions, and the unsustainable game is pretty obviously unsustainable.
They say we cannot repay the debt.
They also say that we cannot default on the debt.
They say ruinous inflation is the only way out.
IMO, defaulting on the debt is less ruinous, and although many will suffer, the ones who will suffer the most are the Bankers. I say it’s their turn.
“Lets sell Washington DC to the Chinese.”
Some literal truth to that.
The people in power seem bent on forcing the dollar down in value, enough to where the world will replace the dollar as the reserve currency. Next...
Well, we thought the Afghan war was permanent - wait til the war with the rest of Eurasia
OR we will all end our lives here as citizens of a 3rd world nation
OR the left coast may welcome the Chinese army as liberators.
OR all of the above.
Balanced Budget Amendment.
Getting old watching me type this I suppose. The pain and suffering soon to appear from uncontrolled government is soon to be upon us. We the people MUST control government by limiting spending, and ridding ourselves of a graduated tax system that empowers people to “tax the rich”.
Everyone MUST feel the weight of the government on our backs (financially speaking) or it cannot be controlled. Every war, every donation to transgender reassignment in Pakistan, all of it must be felt by all Americans.
“…an expected one-term cumulative deficit of $7.8 trillion. Where indeed does this money come from?...”
Take a wild guess!!
Cloward-Piven is finally here to destroy the US economy. They must be dancing at US Communist Party HQ.
Debt is a system of slavery and it would have been really great if Lincoln and included a Balanced Budget Amendment along with the 13th Amendment. No slaves. Not chattel slavery in the Confederacy, not slavery to a federal government with a crushing debt.
And we should abolish the Income Tax.
The government should survive on tariffs and sales tax. Basically, the amount of money for the government to play with should be much, much smaller than it is. Nowadays, if you want to get rich, you should figure out how to game the system and get in good with cronies in the government. They have all the money in the world.
How it should be — if you want to get rich, stay in the private sector and create real wealth. Ignore the government: they have no money to spare.
Well at least the guy mentioned block chain. Soon the quantum financial system will be put into motion. The central banking system will be gone and the debt will disappear with it.
The owners of the Fed always win. You can take that to the bank.
I don’t doubt it, but who are the owners of the Fed?
“but I know that in the past (Lincoln with greenbacks in the Civil War), government have just “created money” that did NOT come with a debt.“
Bankers thoughts, in The London Times editorial at the time.
“If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world; the brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.”
I highly recommend this documentary. It is long but worth every second spent.
https://m.youtube.com/watch?v=mB-pdPaQNKA
Let me just say that your post 14 is phenomenal. Well worth the scroll back up if you missed it.
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