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To: DoughtyOne; LuigiBonnafini; stephenjohnbanker; rabscuttle385; mkjessup; exit82; AuntB; pissant; ...

“...There’s a big game being played on us, and very few people have any idea what is taking place...”

And then there are those who KNOW something is wrong, but don’t care, because they believe it doesn’t directly affect them. You’ll hear them say things like “I don’t care about politics!” or “That has nothing to do with me...”

What was that old saying?? “You may not have an interest in politics, but sooner or later politics will have an interest in YOU..”

I believe that’s where we are now...”politics” and those who thrive on the rush of power are taking an interest in all of us...


51 posted on 07/20/2010 9:11:42 AM PDT by NFHale (The Second Amendment - By Any Means Necessary.)
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To: NFHale
I've got a good one for you. For starters, the category of money that's been dumped is categorized as M3 (I "think"). Don't quote me on this because I read a terrible LOT about this the other day and am still trying to absorb it largely.

Anyway, the level at which the money was dumped was into banks and financial institutions... the likes of which should have been permitted to suffer insolvency. Also bear in mind that because our national economy is fiat based, that we must have some level of inflation in order to keep it running. I've read that 1.5 to 2% is healthy. In order to keep inflation from running away, the Fed can (and does) raise interest rates to financial institutions...a percentage point one way or the other... or fractions of a percentage point.

But right now, we have a situation whereby raising the interest rates isn't having the desired effect. People aren't buying (enough). So in order to stimulate this, the Fed lowers the interest rate. They can only go so low before effectively lending institutions aren't making an acceptable profit on interest rates. At this point, we can (for all intents and purposes) say that the interest rate is zero. Let's assume that it were to go to zero. At the current projections of decline, this will happen eventually.

What then? :-) BTW, nobody seems to want to talk about this. I've brought this up with a few I know who are financial experts and the blood drains from their faces and they seem to briefly panic. Then they proclaim that it will "never happen". But they're lying to me. I can tell by the looks on their faces that they don't believe what they're telling me.

This is what people should be watching... the lowering interest rates. Not this BS from the current knuckleheads in charge who seem to only be capable of second grade math. Because when the interest rates go below a certain point (which we're very, VERY close to already), very BAD things happen in a fiat based economy, and they happen quickly. It's called deflation, and from what I read, once it starts in a fiat based economy (such as ours) it's nearly impossible to turn around. At that point, it simply must run its course.

Unfortunately, most people see lowering interest rates and believe the ole "Hope and Change" BS because after all, lower interest rates are better, right? Sure they are! So long as your national currency is actually worth something to start with! They're forgetting that the value of our money is based on factors of trade and commerce and is largely representative of something intangible since we departed from a gold standard.

I actually know people who aren't aware that we don't have a gold standard anymore. Then again, I know people who believe that AR-15s load themselves, jump off the wall and mow down crowds of people. :-)

I find it very interesting that since recently looking into this whole notion of a deflationary financial collapse in a fiat based economy that the Obama administration has changed the IRS tax code in a way that mandates that the individual report over a certain amount of coinage.
52 posted on 07/21/2010 9:35:13 AM PDT by hiredhand
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