• About Elkhart County Grassroots Hub

Elkhart County Grassroots Hub

Elkhart County Grassroots Hub

Tag Archives: Reality

Why Obama’s happy talk won’t be ENOUGH to save the United States’ economy…

29 Monday Jul 2013

Posted by HattieBelle in Bureau of Labor Statistics, Depression, economy, Employment, Federal Reserve, Food Stamps, Income Taxes

≈ Leave a comment

Tags

Barack Obama, Economy, Employment, Food Stamps, Full-time Work, OBAMACARE, Part-time Work, Politics, Reality, Statistics

Even as the President tells the American public they are so much better off...it appears that the trajectory on the chart above is going down.

Even as President Barack Obama tells the American public they are so much better off…it appears that the trajectory on the chart above is going down.

THE FACTS:

  • In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 – an all time RECORD HIGH.
  • Full time jobs? DOWN 240,000.  And looking back at the entire year, so far in 2013, just 130K Full-Time Jobs have been added, offset by a whopping 557K Part-Time jobs.
  • 23 million households receive food stamps.
  • 47% of all working age adults don’t pay INCOME TAX.
  • Study: Record Number 21 Million Young Adults Living With Parents..
  • BLACK TEEN UNEMPLOYMENT RATE 40.8%..
 Imagine how much better this chart could be if ObamaCare weren't encouraging employers to hire so many part-time workers.

Imagine how much better this chart could be if ObamaCare wasn’t encouraging employers to hire so many part-time workers.

Since 2007 real GDP has gone up $500 billion while total credit market debt has gone up by $6 trillion.

DEBT versus GDP. Since 2007 real GDP has gone up $500 billion while total credit market debt has gone up by $6 trillion.

Monetary Policy: What are our choices?

09 Thursday Aug 2012

Posted by HattieBelle in Banking, Business, Debt, economy, Federal Reserve, Federal Reserve Transparency Act, Fiscal Cliff, Fractional Banking, Indiana, Quantitative Easing, Regulation, Repeal of Glass Steagall

≈ 2 Comments

Tags

Bond, Central Bank, Counterfeiting, Duration Mismatch, Federal Reserve, Federal Reserve System, Fractional reserve banking, Government debt, Government Spending, Monetary Policy, Money Supply, Murray Rothbard, New York Federal Reserve Bank, Reality, U.S. Government, United States, United States Treasury security

Here is where we stand.

It is mathematically impossible for the U.S. government to pay off the U.S. national debt. EVER. You see, the U.S. government now owes more dollars than actually exist. If the U.S. government went out today and took every single penny from every single American bank, business and taxpayer, they still would not be able to pay off the U.S. national debt.

If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt–and then, ONLY IF, we didn’t increase the debt by a SINGLE penny.

Now why doesn’t the U.S. government just fire up the printing presses and print a bunch of money to pay off what we owe?

Well, for one very simple reason. The U.S. government does not issue U.S. currency – the Federal Reserve does. Pull a dollar bill out and look at it. It says “Federal Reserve Note” at the top. The Federal Reserve is a private bank. It is owned and operated, for profit, by international bankers.

When the U.S. government needs more money, it cannot simply create the needed money.

Instead, when the U.S. government runs out of money (which happens a lot these days) it has to BORROW IT by going over to the Federal Reserve and asking them for green pieces of paper called Federal Reserve Notes.

The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves.

So that is how the U.S. government gets more green pieces of paper called “U.S. dollars” to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.

Every time the U.S. government borrows from the federal reserve, the national debt gets bigger and the INTEREST on that debt gets EVEN bigger.

Are you starting to get the picture?

To make the situation worse, NOBODY, not even the federal reserve, has a clue how much money even EXISTS in the United States today because our financial system is based on fractional reserve banking.

When you go over to your local bank and deposit $100, your bank doesn’t keep your $100 in the bank. Instead, only a small fraction of your money stays at the bank. The bank lends out the rest to someone else. If the “someone else” then deposits the money that was just borrowed at the same bank, that “same bank” can loan out most of that money once again. In this way, the amount of “money” quickly gets multiplied. But in reality, only $100 actually exists. The system works because we do not all run down to the bank and demand all of our money at the same time. (Not that it could never happen.)

The crowd shown above is gathered in front of the Guardian Trust Company and National City Bank on February 28, 1933..

The New York Federal Reserve Bank, explains fractional reserve banking like this….

“If the reserve requirement is 10%, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the initial deposit of $100 into a maximum of $1,000 of money ($100+$90+81+$72.90+…=$1,000).”

So much of the “money”counted on bank books as assets is basically made up out of thin air.

And, in fact, most banks have no reserve requirements at all on savings deposits, CDs and certain kinds of money market accounts. Primarily, reserve requirements apply only to “transactions deposits” – essentially checking accounts.

Banks are freer today to dramatically “multiply” the amounts deposited with them than ever before. NONE of WHAT CREATED THE BANKING CRISIS OF 2008 has been fixed.

The U.S. government CAN GO OUT AND and DEMAND every SINGLE dollar from EVERY banks, businesses and individual in the United States and it would not be able to collect 14 trillion dollars. IT COULDN’T COLLECT 8.5 trillion dollars.

The Federal Reserve Banking System is a game designed which the United States Government CAN’T WIN.

We could solve this problem by shutting down the Federal Reserve and restoring the power to issue U.S. currency to the U.S. Congress (which is what the U.S. Constitution calls for). But the politicians in Washington D.C. are not about to do that.

The politicians have become more concerned with their own perpetuation than with service to society. As they blunder from crisis to crisis, they blame markets and freedom for the problems created by poor central planning and structure within the financial system.

Giving banks a monopoly over the initial allocation of credit and money enriches the banks at the expense of society. Banks and bankers — who produce nothing — allocate resources to their interests. The rest of society — including all the productive sectors — get crumbs from the table. The market mechanism is perverted, and bent in favour of the financial system.

Such a system is unsustainable. The subsidization of incompetence breeds more incompetence, and weakens the system, whether it is government handing off corporate welfare to inept corporations, or whether it is the central bank bailing out inept financial institutions. The financial system never learned the lessons of 2008; MF Global and the London Whale illustrate that. Printing money to save broken systems just makes these systems more fragile and prone to collapse. Ignoring the market mechanism, and the interests of the wider society to subsidise the financial sector and well-connected corporations just makes society angry and disaffected.

Between fractional reserve banking, extreme leverage, mismarking of books, questionable derivatives and rehypothecation is there ANY possibility of a free market?

What if these mechanisms are contrivances PURPOSEFULLY designed to skim off everything left to skim while driving the financial system the point of collapse?

Even if a financial collapse wasn’t planned, now that the endgame is clearly in sight…

“You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before.” ~Rahm Emanuel

Related articles
  • Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand (blacklistednews.com)
  • Where does money come from? The giant Federal Reserve scam that most Americans do not understand (antioligarch.wordpress.com)
  • Why A Debt Based Financial System Will Always Fail In The Long Run (GLD, SLV, UUP, UDN, XLF) (etfdailynews.com)
  • Are we AT the end of the road? (elkhartcountygrassrootshub.wordpress.com)
  • The Giant Federal Reserve Scam That Most Americans Do Not Understand (wealthwire.com)

Recent Posts

  • Holy Cow! The war on milk…
  • Corruption is Legal in America
  • Indiana candidates Stutzman & Young debate for US Senate Seat

Archives

  • April 2016
  • March 2016
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • September 2012
  • August 2012
  • July 2012
  • June 2012

About Elkhart County Grassroots Hub

  • About Elkhart County Grassroots Hub

2012 Election 2013 Activism American Bill of Rights Civic Engagement Civil Rights Community Community Service Event Community Services Compassion Constitution economy Education Elkhart Elkhart County Events Family times Food GOP Health Care Hoosier Indiana Jackie Walorski Neighbors Obamacare Politics Richard Mourdock Tea Party Volunteer
January 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Apr    
  • RSS - Posts
  • RSS - Comments

Blog at WordPress.com.

Cancel
Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy