oldroy Loc: Western Kansas (No longer in hiding)

Now that is one funny thing for him to say but I believe that he really believes he can teach young people something about that. I don't know how he thinks that way since he has created more than $6 trillion of debt in 4 years and that doesn't even count all the money his Fed has printed and the damage it will do to our economy once its inflation sets in.

http://politicaloutcast.com/2013/04/obama-seeks-to-teach-young-people-how-to-budget-responsibly/

WhoIsJohnGalt

I get sick every time I see an article on this subject. The Fed, by the way, does not print money. It lends money. We are just the suckers borrowing it.

oldroy Loc: Western Kansas (No longer in hiding)

Who does do the printing? Does the Fed have anything to do with what days banks have to be closed for national holidays?

My first question had to do with the fact that Bernanke is the one who has caused all that money to be printed.

WhoIsJohnGalt

The Government Printing Office is in charge of printing bills. The US Mint makes coins. The Federal Reserve is a privately owned bank and is not part of the United States Government. The Federal Reserve loans fiat currency to the government and other banks. Only a fraction of a percent of our money is printed or coined. The overwhelming majority of it is purely digital, stored on the computers of nearly every bank in the world. In essence, our currency is a vast store of nothing. It is worth nothing. It is a form of t***sferable credit that has our government in debt to a private bank. I know that sounds positively fantastic, but it is the t***h.

oldroy Loc: Western Kansas (No longer in hiding)

You are so right on all that, but what happens when we get enough paper money in circulation that is causes monstrous inflation? I think I see that being attempted when more money is printed than is really needed.

I remember the days when we weren't allowed to have US currency in Europe because spending it would make it possible for Iron Curtain countries to hoard it for later release to inflate our currency system. Were they lying to us about that or what was the reason we had to spend Scrip to buy foreign currency to spend?

Slingblade68 Loc: Charleston SC

Hear, Hear,
Roy, my point exactly. In a previous post I stated rather than be distracted by the relevant issues. Ie the Federal reserves continually printing money that is all style and no substance. Only reinforcing the devaluation of the dollar. Then there is the debt/spending situation. Both of which are and have been unsustainable. After-all (the Federal Reserve) is not an arm of the Government. At least the last time I checked it was a Private Entity. However, Timothy Geightner is slated to take over the reigns. Just as he did with the whole Mortgage scandal. The only problem I see (And I am not the Financial wizard Geightner is) If you continue to print money , Yet you have essentially no gold to back it up. Isn't it well, for the sake of a better term, Worth-Less.
My other observation is. Why does Our Federal Government own 85% of the home mortgages in the country. I am simply asking as a concerned citizen. Didn't a Great man once say, A government able of providing you all that you need. Is also capable of taking all you have.

oldroy Loc: Western Kansas (No longer in hiding)

I remember seeing pictures of people going to the store to buy a loaf of bread with a shell barrow. That would have been during the days of the Weimar Republic and a lot of the reason that Hitler had such an easy path. Also, I remember seeing the same kind of thing about 1950 of a man in China going to the grocery store. We are well on the road to just that and most people just can't believe it. It is too bad the leaders, like I Won, don't understand all that.

Your last sentence was very true but lets not tell progs who that great man was. They wouldn't want to have to change their beliefs in the words of the man because of that.

oldroy Loc: Western Kansas (No longer in hiding)

I remember seeing pictures of people going to the store to buy a loaf of bread with a shell barrow. That would have been during the days of the Weimar Republic and a lot of the reason that Hitler had such an easy path. Also, I remember seeing the same kind of thing about 1950 of a man in China going to the grocery store. We are well on the road to just that and most people just can't believe it. It is too bad the leaders, like I Won, don't understand all that.

Your last sentence was very true but lets not tell progs who that great man was. They wouldn't want to have to change their beliefs in the words of the man because of that.

WhoIsJohnGalt

I can tell you that every computer in the world is stuffed to the gills with bookkeeping entries in US dollars. There are so many digital dollars lying around in bank accounts that the Aussies, who have put their boots on the ground right alongside our wherever we have gone, have started doing business with their own currency rather than converting their dollars into ours first.

What I see happening in the very near term, say in another year, is that our banks will begin lending money out to concerns in the petrochemicals industry. Those companies are eager to take advantage of low interest rates and the phenomenal amounts of natural gas that we have discovered in deep lying shales.

KBR and other engineering companies in and around Houston are already advertising for piping and vessel designers. It will not be long before we see a full fledged engineering boom in Houston and its vicinity and elsewhere on the Gulf Coast. As the engineering nears completion, and engineering goes much faster today than it did when I first hired out as a helper, they will start hiring construction companies and the construction companies will start hiring pipefitters, welders, boilermakers, electricians, instrument fitters and what have you. Those people will all be paid with the money that the banks will be lending out. The construction workers will want to buy things with this unexpected bonanza and they will. Suppliers will step in to fill the sudden needs that will start cropping up from Houston to the Florida panhandle.

What is this a fertile ground for? Inflation, just as you feared. We will have inflation that is much worse and harder to shake than what we had under Jimmy Carter. The "Nixon/Carter Bubble" ended in tears because it unexpectedly went bust. This "Bush/Obama Bubble" is going to be far worse and will end in a far worse way than it did under JimmyCarter/Ronald Reagan. I think that this will prove to be the dollar's complete undoing. It will not recover its value. It will turn into toilet paper with green ink smeared on it. I am planning accordingly. Burn me once, shame on you. Burn me twice shame on me.