Real0ne
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I found it difficult to pick out one little snippet of this rather long read on money. Perhaps that in itself is why people in America are so clueless on how money works.
But this time, going to the IMF it will be different right? The IMF will fix it?
While our attentions are kept securely focused on idiot presidents, terror and more alqaeda we are literally being robbed blind. Ron Paul is one of 3 people in government who seems to understand the negative impact this is having on our country as a result of inflation.
This is a historical account of our money system, how it came into existance, how it is kept in existance and not only the failure of both parties to correct the problem but infact promote the problem to the extent of selling America to the highest bidder yet we are led to believe we are a wealthy country.
It begs the question that if we are so wealthy why then did bush quietly sign treaties to start the infrastructure of the NAU? We are after all wealthy are we not?
Is anyone up to the challenge of explaining why we need to continue in a monetary system that has historically failed the people time and time again?
This is a rather long but nicely simplified read for those who are not well acquainted with the money system, the history of failures, and why we cannot seem to break away from it:
http://www.safehaven.com/article-8658.htm
Now we want to use that system on the whole world?
I have googed it and cannot find where even Bill cosby admonished and advised the black community to stop using credit and credit cards on a tv interview! Odd that I cannot find it?
95% less buying power than in 1935. Did you ever notice that charts of the economy NEVER show the debt payback costs? Think maybe there is a reason for that?
In Summary The current Federal Reserve banking system is modeled after the European central banking system Americans revolted against during their War of Independence.
Every dollar created under the present monetary system does not represent a tangible asset. It represents an I.O.U. from the government, and therefore the people, to the central bank. After three failed attempts, central bankers finally gained control the monopoly on the issuance of American money with the creation of the Federal Reserve in 1913. There are two unavoidable results of the Federal Reserve System: (1) devaluation of the dollar and (2) accumulation of debt.
Devaluation Since the establishment of the Federal Reserve, the U.S. dollar has lost over 95% of its purchasing power.
Rising prices is not intrinsic to free-market capitalism. It is a monetary phenomenon caused by increasing money supply. Money, like anything else, is subject to the laws of supply and demand. The more abundant the money, the lower its value. If the amount of money were to remain constant relative to population, we would see a general decrease in the prices of goods as technologies and transportation efficiencies improved. This would be a boon to consumers.
Consider the rapid spread of telecommunications and computers, two industries where technological improvements have actually been able to outpace the price escalation caused by the monetary inflation of central banks. Lower prices have led to a surge in consumer usage. People don't hold onto their money in hopes of waiting for a better computer or phone. Quite often they buy a second or third one. The consumer base grows as well because for those who previously could not afford one now can do so.
Despite these blatant observations, conventional economic thought believes that decreasing prices are bad for the economy because it encourages saving. It is widely held that consumer spending, not saving, is what drives the economy. This is a falsehood, perpetrated by those would stand much to gain by further and further indebtedness of the public. Savings leads to capital investment which is the real driver behind capitalism.
Debt Every dollar created is an instrument of debt lent out at interest. The extra money required to pay back the interest can only come from one place, that being the central bank. As such, the central banks must continuously increase the money supply.
Growth of Currency For the 2007 fiscal year ending Sept 30, 2007, the total interest charges to the Total Outstanding Public Debt of the United States was US$430.0 billion making it the forth largest expense after Human and Health Services, Social Security Administration and National Defense.
By means of comparison, for that same 2007 fiscal year, the total revenue collected from individual income taxes was US$1,156.8 billion (see table S-8 Receipts by Source on page 169 of the Budget for the Fiscal Year 2008 here). Thus, the equivalent of a little over 37 cents of every dollar the U.S. government collects under the Sixteenth Amendment goes towards paying the interest on the national public debt. This amount doesn't include any repayment on the principal, nor does it include any State or Local public debt.
Not a bad rate of return for the Federal Reserve which literally creates the money that indebts the nation out of nothing but the want thereof!
How do We Get Out of this Mess? The current monetary system uses questionable practices on both moral and legal grounds. Monetary inflation erodes the wealth of citizens. Fractional reserve banking enable banks to fraudulently lend out more than they have. Debt is incurred every time new money is created. This debt must is inherited by future generations. Below are three measures that would establish an honest monetary system.
So how much robbery is acceptable robbery?
< Message edited by Real0ne -- 10/23/2007 8:14:08 AM >
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