Gar Posted October 11, 2013 Posted October 11, 2013 My understand is; the Federal Reserve creates money buy buying securities from banks, then the banks buy treasuries from the government. The federal government (the US treasury) then distributes this money to mostly entitlees and a fraction to people employed in social programs (including the military) . This viewpoint is not often identified or discussed. What do you think? Is this true?
Hannibal Posted October 11, 2013 Posted October 11, 2013 Does the government borrow money to pay it's debts and obligations? yes.
Gar Posted October 11, 2013 Author Posted October 11, 2013 Does the government borrow money to pay it's debts and obligations? yes. Is the governments purpose to protect people FROM people or to protect SOME people from nature at the expense of OTHER people without limitation? Just borrow more and the problem is solved? For how long? And why?
amommamust Posted October 12, 2013 Posted October 12, 2013 They are funding wars and trying to get people to blame the poor people. Or the brown people. Or the marijuana smoking people. Or the (insert whoever it is OK to look down on here) people. Of all the people on the planet, THEY know their money is worthless. If they are just printing it up out of thin air, does it REALLY bother you that they give a pittance of it to your neighbor? Taking taxes is BS, but most of this money they are robbing by inflation and that is not the fault of people getting government assistance. I dunno. I have this rule of thumb... If someone tells me to blame my neighbor, I look for the bankster hand up that puppet's ass. The very word "entitlement" is meant to create division. And here we are, on opposite sides... LOL! At least this is civil discourse!
Gar Posted October 12, 2013 Author Posted October 12, 2013 The objective is to buy votes. Are you saying that my understanding of the situation is true?
MysterionMuffles Posted November 5, 2013 Posted November 5, 2013 Is the governments purpose to protect people FROM people or to protect SOME people from nature at the expense of OTHER people without limitation? Just borrow more and the problem is solved? For how long? And why? What do you mean by protecting some people from nature? How does the government protect people from nature, especially at the expense of other people -- without limitation? I feel discombobulated by this question. I'm sure there's a valid question in there, but it seems like a vague string of words to put together.
LanceD Posted November 8, 2013 Posted November 8, 2013 There is more to it. Basically the fed is propping up the financial sector and both government and Wall Street profit. Through Quantitative Easing the Fed is buying bank assets and treasuries to maintain their value. The banks then use the money to buy Treasuries who's value js increased by fed buying and thus funds government debt. This also allows the banks to continue to invest in other markets and loan money, thus propping up the financial sector. However once you consider fractional banking you realize how scary this practice is. Banks are allowed to leverage their assets for 10x their actual value. So a bank that has balanced books is actually considerably over leveraged and even the slightest reduction in value of their assets would send them plunging into insolvency. This creates a situation in which the Fed absolutely has to continue to pour money into these banks to keep them afloat, and simultaneously making them rich and inflating our government out a debt. It's a vicious cycle that will only end with an inflationary depression and complete destruction of the currency.
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