They Get The Cake While We Get The Crumbs

She's an old noxious fart for a reason.

The fact is that the government does create new money all the time.

There is no way that we are so much in debt, owing other countries money, bailing corporate banks out of debt, all while maintaining a "semblance" of financial stability without creating new money.

 

"They" then

 

The government doesn't create the money, but the private entity which is the banking system creates the money, which in turn loans to governments (at interest), which it basically owns via the control over the money supply and the creation of debt.

And of course we are not really in debt, because, like money, debt is completely artificial (and farcical) and is part of the ruse which is economics.

Many people talk about how we're in debt, but they never ask themselves who we're in debt to if we are able to print our own money (which we don't).

Most of the money in circulation today exists as nothing more than a series of zeros entered into a computer database.

 

Oh Jesus, this again.

Since the end of the gold standard, fiat currency has been created by central banks. The quantity of money in the economy is largely regulated by the interest rate (the reserve rate or the overnight lending rate), which in turn is (usually) managed through open-market operations (buying and selling of bonds). Central banks have a mandate to keep inflation low (in Canada between 1 and 3 percent) or to maintain low inflation and use monetary policy to stimulate AD during recessions (depending on the country). In many countries, the head of the central bank is given a long-term specifically to give them independence from the government.

Income inequality is growing. This is caused by structural changes to the economy (a decrease in manufacturing and therefore a decrease in demand for unskilled labour) and changes in tax structures since the 1980s. It could easily be reduced by increasing the marginal tax rates on high income earners and a wealth tax on estates.

In the United States, these policies are harder to implement because of the constitutional arrangement. Not needing to maintain party discipline (as in a parliamentary system) leaves representatives more open to lobbying by special interest groups. The US also has relatively lax laws about donations that encourage influence by special interest groups.

Debt from previous generations is unpleasant. But at the same time, you are also benefitting from investments made by previous generations. And by being a resident of the US right now, you are benefiting from this by borrowing at the expense of future generations.

I don't understand how people can take such basic information and somehow twist it into a vast conspiracy theory of shadow bankers and slavery.

 

I don't see how you can actually admit it's a con game yet say there's nothing conspiratorial about it.

 

Because there is no conspiracy, it is just the cumulative effect of greed, apathy, lazyness and 99% of the population not being smart enough

Any dumbass that buys cheap stuff at walmart is just as guilty, and at a higher percentage of his/her net worth, than the richest 1%

 

Which part is a confidence trick?

Who owns government debt? The holders of US treasury bills and bonds. Anybody can buy them in bond markets. They make up part of my portfolio. They're considered a relatively safe way to invest money.

In the hypothetical situation that the government chose to "print" money (increase the money supply) in order to pay off their debt, you would see a large increase in inflation. This inflation will act like an invisible tax, and will disproportionately affect the poor and those on fixed incomes. It is also likely to trigger a decrease in exports and thus have recessionary effects (further hurting the working class).

 

So are you claiming that the government doesn't do this, and that inflation doesn't actually already exist and continues to increase? Because it sounds like that's what you're saying. The increase in inflation can be seen in the ever-increasing cost of things. There is nothing "hypothetical" about it. Inflation is something that is continual. The fact is the Federal Reserve (a PRIVATE, NON-GOVERNMENTAL entity) DOES print money out of nothing ALL THE TIME, and this is what fractional reserve banking is all about. This is why the dollar is worth less and less over time.

 

Inflation exists. Depending on the country, usually between 1-3 percent. This is a not a bad thing - the oil that greases the labour market, and so on. It certainly isn't the same as the hyperinflation that would result from increasing the money supply to pay the debt.

I called your plan "hypothetical", not the existence of of the federal reserve. Calling the Federal Reserve a non-governmental organization is a misnomer. It's a central bank, whose mandate comes from the government, whose board of governors is legally described as a federal agency.

 

The REAL inflation rate in the US is over 6%.

http://www.profitconfidential.com/economy/ron-paul-real-inflation-rate-is-over-6/

The Fed is governmental in name only. Sure, the president appoints the chairman (in reality he's told who to appoint), but that means little once you realize the president is nothing more than a puppet of the same financial elite.

 

This is just blatantly false. Your article is discussing the PMI which isn't a measure of prices, it's an index of employment, exports, new orders, etc from a survey of producers. This can describe changes in market conditions, but it isn't measuring inflation.

The traditional measure of inflation is the CPI (measuring a basket of consumer goods). It is hovering at less than 1%.

For a less volatile basket of goods, you can remove fuel and food and calculate the core rate of inflation. This is hovering between 1.5 and 2 percent (ie: it is higher because it doesn't reflect the huge decrease in the price of fuel).

If you're trying to predict future inflation, it is probably best to use the Producer Price Index (ie: measuring the price of intermediate or wholesale goods). It is currently hovering around 0.5 percent.

All of these are widely used tools to measure inflation.

I'll ignore the comments about being the Chair of the FR and the president being puppets. It's an example of begging the question and isn't really constructive.

 

Double take, Lol, what?

 

(To the posts other than the Sanders post)What a bunch of obfuscatory bullshit. Who talks that shit? Every 20 to 40 years, the systematic fleecing of the mass of citizens reoccurs
with often times disastrous results. Except for the people who talk that gobbeldy-gook bullshit and benefit from causing financial collapse. Always the same fuckers who know the so-called "rules," which by the way can and do change according to their needs. (bank bailouts,paid legislators,etc)

 

I see ignorance where you see malice.

 

Yes--I'm ignorant, if you're referring to me. You are a genius, mainly because you know how to talk that shit. Who was ignorant in 1893? 1929? 2000 to 2008? Neither the rich nor the more minor gamers. I can't bring up morality, because that doesn't figure into the long con to which we are and have been subjected.

I don't think we'll have to wait long for the next middle class fucking. Comes around again and again, as sure as the sun rises in the east.

 

I wasn't referring you to. I was talking about policy decisions that were made. As in you you believe that they are purposefully exploiting people, and I think they were mostly poor policy choices or mostly caused by political events.

 

but they also said...."Let them eat cake!"

 

What about crumb cake?

 

Look, people have always been exploited and I don't see that ever changing. Again----there is no moral justification for amassing inordinate wealth, while people around the world have nothing --not even homes or clean water or food, some even being blown to smithereens. OH SHIT--THERE I GO AGAIN worrying about OTHER people. Fool am I--need to dig out A RAND novel to get my head on straight. The fuck was I thinking?