The dollar bubble has been inflating for some time. When this bursts no one will be safe and nothing good will come from this. Life savings will be destroyed and no one will be able to buy anything even though tons of money will be available.
Over the last hundred years, the goal of securing individual liberties within the framework of a constitutional republic has been replaced with incessant talk of democracy and fairness. America was never suppose to be a democracy. The transition from republic to democracy was gradual and insidious. It seeds were sown early in our history. In many ways, the Civil War and its aftermath laid the foundation for the acute erosion that took place over the entire 20th century. Chronic concern about war and economic downturns- events caused by an intrusive government’s failure to follow the binding restraints of the Constitution- allowed majority demands to supersede the rights of the minority. By the end of the 20th century, majority opinion had become the determining factor in all that government does. The rule of law was cast aside, leaving the Constitution a shell of what it once was- a Constitution with rules that guaranteed a republic with limited and regional government and protection of personal liberty. The marketplace, driven by voluntary cooperation, private property ownership, and sound money was severely undermined with the acceptance of the principles of a true democracy.
Unfortunately, too many people confuse the democratic elections of leaders of a republic for democracy by accepting the rule of majority opinion in all affairs. For majorities to pick leaders is one thing. It is something quite different for majorities to decide what rights are, to redistribute property, to tell people how to manage their personal lives, and to promote undeclared, unconstitutional wars.
The majority is assumed to be in charge today and can do whatever it pleases. If the majority has not yet sanctioned some desired egregious action demanded by special interests, the propaganda machine goes into operation, and the pollsters relay the results back to the politicians who are seeking legitimacy in their endeavors. The rule of law and the Constitution have become irrelevant, and we live by constant polls.
This trend toward democracy was tolerated because, unlike a military dictatorship, it was done in the name of benevolence, fairness, and equity. The pretense of love and compassion by those who desire to remold society convinced the recipients, and even the victims, of its necessity. Since it was never a precipitous departure from the republic, the gradual erosion of liberty went unnoticed.
First of all the Government does not have this money. The US has to sell Treasury Bonds to the Federal Reserve. And the Federal Reserve doesn't have this 'money' either so the system will create new money. After this newly created money is spent, expect massive inflation in the money supply - a far greater problem than letting the big three fail because it affects everyone using dollars not just the workers in the big three.
This privately run system was entrusted by our congress to have control of the money supply. The decisions the Fed makes cannot be overturned by anything. And since they have the authority of increasing and decreasing the supply of money, the central bank regulates the value of the currency being issued, that is, the value of what you work for. Slavery sucks...
Yes!! Ramster is right, we should start by looking at the entity setting the federal funds interest rate (the rate that directly affects the demand for dollars). By controlling this rate you can mislead people who think they are producing/consuming in a free market.
I'm not saying one party is better than the other. I am saying they are both working against what is right. Freedom is what is right and both parties think you and me are too weak to make decisions for our selfs.
Let me clue in as to what Clinton actually did since your party affiliation is clearly covering ur eyes. Clinton stood idle while Greenspan manipulated the interest rates, the price of money to a borrower, such that everyones dream of owning a home could be fulfilled. And Obama will do the same when the Fed makes `affordable health care` I.E creating money from nothing.
The problem is that money doesn't grow on trees and when money comes from nothing it dilutes the value of everyone else's money. Once you realize this, things might make more sense...
Re: Re: Grabage is the foundation of our monetary system.
The current financial crisis has everything to do with market participants inability of coming together to determine a market interest rate. This interest rate is set by foreigners (and some domestic) running the Federal Reserve System.
The Fed's actions in setting the federal funds rate is central economic planing, because it reflects the price of money to a borrower and thus affects demand for money, affecting prices throughout the economy in a manner less pervasive but just as damaging as direct price controls.
If you look at low interest rates and think its a good time to buy a house, you are being mislead. These interest rates are not set by the market. It is being used to manipulate the markets so that knee-jerk reactions will be used to enhance power to the Fed.
Do you really think it is that hard to predict a financial crisis when unelected foreigners control the flow of money; making it tight and creating unemployment or printing more and giving it to select few - creating inflation?
I am not saying I could come up with a system that works better, but at the very least shouldn't we be thinking of a new open monetary system so that the power to control the value of currency is a function of the people who use it?