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Originally posted by DataWraith
One thing that bothers or even confuses me with this or any other financial institution is where does the interest come from?
Working in a bank myself I know we have loans to other companies and countries that has to be repaid 'with interest'.
Most people can't see that interest is only making the problem worse , and if someone defaults on their loan then they are charged a fee or an increase in interest.
Interest just magically appears in most peoples minds, as if its a tangible resource ready to be tapped, the interest just springs into existance when the need is there. Sorry but its not, interest and payments in general have to come from somewhere , whether its from you and your family making extra payments in higher taxes raises or higher costs for food and fuel or simply 'printed' by the central banks to cover the loses. What ALL the financial insitututions need to do to get the economy back on track is FORGET all their debts from others, like forgetting the third world debt, and your credit card debts, start afresh , but thats me wishing and hoping so it isn't ever going to happen. Flame me if you want , I really couldn't give a monkeys today.
[edit on 28/7/09 by DataWraith]
Originally posted by getreadyalready
reply to post by memarf1
Good analogies with first Revolution. I contend that this one began brewing during the Eisenhower administration when he started warning of the "military-industrial complex" and admitted that he was not in control!
That gives us 5 or 6 decades of build up.
Making money out of thin air, allowing Fed to run unchecked, and eroding State's rights and People's rights are going to be the final pick in the lock. Obama is a patsy. He is all smiles now, but this will be his fault, regardless of his true intentions. I personally think he had good intentions, but he is playing right into the Master Plan!
We are in a Depression, it may be 2 or 3 years before economists admit it, but it is happening now!! We all said we were in a recession a full year before the economists finally agreed, and then said it started a year earlier!! This will be the same. Sometime next year they will say a Depression started in Oct. 2008.
Bernanke has already stated that they underestimated the drastic effects, and that this 'may' be worse than the Great Depression!
Ben Bernake States: "We see little indication today of the beginnings of a 1970s-style wage-price spiral, in which wages and prices chased each other ever upward,"
The independence of the FED is designed to reduce the likelihood that political pressures will adversely affect its ability to follow a stable, noninflationary monetary policy.
Studies indicate that when a country's central bank is strongly influenced by political considerationos, the bank is more likely to follow inflationary policies... politicians in a country with high budget deficits might lobby their central bank to expand money supply to help finance the governments spending.