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alstry (34.93)

Will Bernanke FLOCK America????

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June 09, 2009 – Comments (2)

It is the role of the Federal Reserve to remain independent.  Right now America faces the largest budget deficit in human history.....It is so large, that if you taxed its non government benefitted private citizens 100% of their incomes....it is not enough.

As this blog is written, interest rates on U.S. Treasuries have risen at the fastest rate in history.....almost doubling in the last half year.

Due to the massive amount of outstanding debt that has accumulated over the past 10 years.....interest increases today have a much bigger impact on the economy than just a decade ago.

Due to an ever expanding money supply without a corresponding rise in PRIVATE Productivity....factoring the contraction in the private sector, government spending has become OVER 2/3 of the economy.....

As long as there is a private sector generating enough tax revenues to support such spending.... all is fine.......however, when little is being generated by the private sector.....the only option government has to keep spending is to borrow......

But if government borrows too much......lenders will demand higher and higher interest rates.......and as it becomes riskier and  riskier to be paid back.....rates go up further the more you borrow creating even higher borrowing needs.....

At a certain point....., once it becomes clear that there is no possiblity of ever getting paid back, things get out of control and rates grow parabolicly.... and the need to print exponentially destroys the value of the currency where it could take a lifetime of savings simply to heat your house for a month.

In the private sector, we can't simply print money, so the mechanism to prevent over borrowing is simply a refusal by lenders  to lend and the natural consequence is bankruptcy or zombulation.

Since the government can "print" unlimited amounts of money....parabolicly monatizing debt is the equivalent of bankruptcy to a lender since they are getting paid back with worthless paper.....

The problem with printing unlimited amounts of money is that sheeple get flocked since their savings or income never is sufficient to cover the rising costs and ALL go bankrupt and often go hungry.

Bernanke KNOWS that trying to monatize a $2 Trillion dollar deficit without producitivity backingt is financial armageddon for the American people.....he would be basically signing our collective death warrant and placing us in economic concentration camps waiting to get exterminated.

It is Bernanke's role to make sure our government simply can't print more money than it has....just as it is the bankers role not to lend to those who can't pay back.......whooops..........

If we keep going down this path....Alstry can pretty much guarantee that every single American citizen and corporation that exists and functions primarily within the US will go bankrupt and we will experience an economic distress in America much more severe than anything we have seen before.

Benny B can give his banking buddies all they want....do you think he will give you a dime???

Benny has a loaded 45 right up to your temple....now the only question is whether will he pull the trigger?????

2 Comments – Post Your Own

#1) On June 09, 2009 at 11:41 PM, alstry (34.93) wrote:

This could be common in Benny's World.....

MINNEAPOLIS, June 8 (UPI) -- A Minneapolis man said he was preparing to leave his foreclosed home for the last time when contractors boarded up the house with him still inside.

 

Ted Poetsch, 53, said he was finishing packing and loading his cat into its carrier May 12 when he heard drilling coming from the frame of his front door, the Minneapolis Star Tribune reported Monday.

Poetsch, who walks with a cane, said he descended the home's stairs to find the contractors had already completed boarding up the house without making sure there was nobody inside.

City officials said Poetsch had been warned the contractors were coming that day, but they admitted boarding him up inside was a mistake that was unprecedented for the city.

Poetsch said he escaped his house-turned-prison with the help of his one-time lawyer....

It is good to see a lawyer doing a good thing every once in a while;)

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#2) On June 10, 2009 at 12:34 AM, millionby24 (< 20) wrote:

http://www.youtube.com/watch?v=y-R_nF9rWHY


Here's a perspective on the U.S dollar, outside of the U.S

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