The Federal Reserve

[thug the bunny 0]

http://www.youtube.com/watch?v=5K41O2QfpjA&feature=player_embedded

 

The more I learn about the illegal, immoral, and unconstitutional cartell called the Federa Reserve and the nature of fiat currency, the more convinced I become that we are in for some tough times ahead.

[Golf battery 1,223]

If you really check out the fed reserve you will be amazed. It is a private institution like the post office. Its all a joke. It is all manipulated to control the us economy. Which is so fragile. Yes i know tin foil hats and all that stuff. But check it out.

[O-gre 7]

Blah, don't worry. Everything will be FINE! :wild:

[thug the bunny 0]

EVERY fiat currency in history has failed at one time or another. The US dollar became fiat in 1971 when Tricky Dick removed the gold standard.

 

The gold standard effectively prevented the US government from today's unchecked, unrestricted borrowing from the Fed with subsequent printing of (fiat) monies to pay off previous loans. This is otherwise known as a Ponzi scheme.

 

So our enormous house of cards keeps getting bigger, and the only question is how long it will stand..

 

 "I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." - Thomas Jefferson

[maintenanceguy 510]

 

Managing the growth of the economy used to be done by manipulating interest rates.  Raise rates a tiny bit when the economy is growing too fast to prevent "bubbles" that eventually collapse and lower rates a tiny bit when the economy slows down.  The goal is slow but steady growth.  Slow and steady doesn't win elections so the FED has let things grow too fast for too long.  The result:  a big bubble collapse in 2008.

 

Now, interest rates don't work any more.  Once you hit 1/4% there's no where else to go.  Now we use a new trick: Quantitative Easing.  QE is just buying up investments to keep them off the market - mostly mortgage backed securities.  Why do you think every American "deserves" a home and the government will provide the money and insurance to make sure they get one - whether they can afford one or not.

 

That won't work for much longer and I don't know what they can do next.