One thing...what if the government turned around and told the Fed to go whistle for it's money?
Sort of "Sorry, we've decided that to pay you what you say we owe you would bring our country to it's knees, and that, we cannot allow at *any* price...go away, and suck it up..."
...Just remember that it is a scam and if you keep that fact in mind then you'll have no trouble comprehending what's going on.
Here's how it works.
It starts with the government side of the partnership, it starts in Congress which is spending money like crazy. It spends far more money than it takes in. It is spending way beyond its income. How can it do that? Basically this is what happens. Let's say Congress needs an extra billion dollars today so it goes to the treasury and says "we want a billion dollars" and the treasury official says "you guys have got to be kidding, we don't have any money here, you spent it all a long time ago, everything that we've taken in taxes you fellows have spent by March." Congress says "we thought that was true but we thought we'd stop by just in case somebody sent some more in."
They get together and they go down the street and they get the idea that we'll borrow the money. So they stop at the printing office and they don't print money at the printing office, they print certificates and they're very fancy things with borders on the edge with an eagle across the top and a seal at the bottom and it says "US Government Bond" or "Note" or "Bill" depending on the length of the maturity of it. If you hold it up to the light it really says "IOU" because that's what it is.
They print these things up and it looks very impressive and then they offer them to the private sector; they're hoping that people will come up and loan money to the federal government and a lot of people do and are anxious to lend money to their government. Why? Because they've been told by their investment advisors that that's the most sound investment that you can make. Why? We've all heard that these loans are backed by the full faith and credit of the US government. They're not quite sure what that means but it sure sounds good. I'd like to explain for you who are in doubt what that means.
The full faith and credit of the US government means that the government solemnly promises to pay back that loan plus interest if it has to take everything you and I have in the form of taxes in order to do it, it's going to do it. It will take everything we have if necessary to hold its pledge. People don't realize that they're putting themselves on the line, they're going to get their own money back minus a substantial handling fee.
Plenty of money is loaned to the government but never enough. Congress needs more money than that. They say not to worry. They go further down the street to the Federal Reserve building. The Fed has been waiting for them, that's one of the reasons it was created. By the time they get inside the Federal Reserve building the officer of the Fed is opening his desk drawer. He knows they're going to be there and he's ready and he pulls out his checkbook and he writes a check to the US Treasury for one billion dollars or whatever the amount is that they need. He signs the check and gives it to the treasury official.
We need to stop here for a minute and ask a question. Where did they get a billion dollars to give to the treasury? who put that money into the account at the Federal Reserve System? The amazing answer is there is no money in the account at the Federal Reserve System. In fact, technically, there isn't even an account, there is only a checkbook. That's all. That billion dollars springs into being at precisely the instant the officer signs that check and that is called "monetizing the debt," that's the phrase they throw at you. That means they just wrote a check, a big rubber check.
If you and I were to do that we would go to jail but they can do it because Congress wants them to do it. In fact, this is the payoff, this is the benefit to the government side of this partnership, this is how the government gets its instant access to any amount of money at any time without having to go to the taxpayer directly and justify it or ask for it. Otherwise, they would have to come to the taxpayer and say we're going to raise your taxes another $3,000 this year and of course if they did that, they would be voted out of office real fast.
They like the Mandrake Mechanism because it's a no questions asked source of money. You may have noticed that it's been many years since Congress has even discussed what anything costs, it's not an issue. It doesn't make any difference what the cost is because regardless of the overrun they know they can go down the street to the Federal Reserve and by law the officer has to write that big check and give it to them and they're off and running....
www.bigeye.com...
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We have the "RIGHTS" we are willing to demand! No matter what the cost... Far better Men and Women than us who have gone before secured these rights for us and now it is our watch and we owe it to their sacrifices for us to see that these rights are protected today and for generations to come.
in the media so we have to do
this by word of mouth.Originally posted by WWJFKD
reply to post by Realtruth
RT, the bottom is about to fall out, that is inevitable. Can you really blame someone for trying to position themselves for it. Survival stores, truth sites, you name it, it still comes down to people and their families in the end. If I thought I could profit off of all of this mess somehow believe me I would because I am no where near ready for this, are you?
How the hell is it constitutionally legal to *not* be able to feed your family what you wish to?
How can they put a ban on what people wish or do not wish to grow for food?
...That's bloody outrageous!
How many independent farmers are there in the US?
There must be hundreds of thousands...why don't they tell the government crooks and their Monsanto frankenfood mates to go **** themselves, and to come and arrest us all then...
The USA produces 25% of the world's grain so if we do
not grow any for ONE season maybe we can wake Americans up. All that pasta and bread makes us fat any way 
Originally posted by bigyin
reply to post by Realtruth
Thanks for the link, but it's a good example of a not very Dummy friendly production.
Your average sheep is not going to sit through it.
We have to make things as simple as possible.
Originally posted by WWJFKD
reply to post by Realtruth
RT, the bottom is about to fall out, that is inevitable. Can you really blame someone for trying to position themselves for it. Survival stores, truth sites, you name it, it still comes down to people and their families in the end. If I thought I could profit off of all of this mess somehow believe me I would because I am no where near ready for this, are you?
It would be great if this were out there for free but I'm not going to damn someone for trying to better prepare themselves for what is coming. Information is the new demand, it makes since and is reasonable to request compensation for providing the supply.
just my .02
what is unclear to me is fluidity, if that is the right word. the amount of money to keep goods and services flowing, the problem seems to be the vast pools of stagnant money, what if we had a trickle up economy? you know the wealthy will still end up with most of it anyway but at least the poor could have some to spend sometimes
"The Return to Sound Money,"
The first step must be a radical and unconditional abandonment of any further inflation. The total amount of dollar bills, whatever their name or legal characteristic may be, must not be increased by further issuance.
No bank must be permitted to expand the total amount of its deposits subject to check or the balance of such deposits of any individual customer, be he a private citizen or the U.S. Treasury, otherwise than by receiving cash deposits in legal-tender banknotes from the public or by receiving a check payable by another domestic bank subject to the same limitations. This means a rigid 100 percent reserve for all future deposits; that is, all deposits not already in existence on the first day of the reform (p. 448).
In Human Action, Mises said that the government's task is to enforce contracts. Among these contracts are contracts for redeeming money-certificates for money metals on demand. He defined a money-certificate a receipt for a money metal that has 100% of the promised metal in reserve. He said that banks should not be favored by the government. They should not be allowed the right to break contracts, which is what a refusal to redeem money-certificates on demand is. "What is needed to prevent any further credit expansion is to place the banking business under the general rules of commercial and civil laws compelling every individual to fulfill all obligations in full compliance with the terms of the contract"
Mises on Money: www.lewrockwell.com...
