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Political & Elections -> Economics, Philosophy and Isms -> Can the Federal Reserve Go Broke?
Post Info TOPIC: Can the Federal Reserve Go Broke?
BigG


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Posts: 825
Date: Jan 30, 2011
Can the Federal Reserve Go Broke?
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The dollar is failing now, in "slow motion".

Because of the huge debt and the decline of the income tax base  due to outsourcing, we simply CANNOT cut, tax or grow our way out of our current financial difficulties.

Sooner is better than later. If we don't monetize, which gives creditors something, why not simply repudiate the foreign part of the debt? The offended are free to sue in the "court of international opinion".

Nuke those who don't like it.

International trade is a loser for the average United States citizen.

But who bleeds and dies to secure corporate access to oil and other commodities?

Increasing stratification of wealth with 10% unemployed and 25% "underemployed" defines the US as a society in decline.

Save the general political structure, trash the financial artifacts. 



-- Edited by BigG on Sunday 30th of January 2011 06:38:54 AM

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longprime


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Date: Jan 29, 2011
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So what happened to those countries that at one time a lot gold? Midas, Espana, China, Rome, and other ancient empires?

So how many pounds of corn will an ounce of gold buy? As I have heard before, gold will seek its own value. But until that time comes,  life will be extremely difficult.


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ImSoAnarchist


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Posts: 105
Date: Jan 15, 2011
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Why not have the Fed buy all the debt, then dissolve the institution?

To dissolve the institution would require a fundamental change to our monetary system. And to have it purchase the entirety of the debt would almost guarantee the failure of the dollar, so it would have to be replaced, hopefully with what the market choses (probably gold).

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BigG


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Date: Jan 14, 2011
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This article is so weird;
http://www.reuters.com/article/idUSTRE7096FE20110111?pageNumber=2

This pretense that "money"somehow has existence apart from and as a result of something other than government action is ridiculous.

The fed can "print" money. It CANNOT have liquidity problems. 

To those who say the Federal Reserve isn't part of the government; BULL!
It was created by an act of Congress and can be dissolved or modified by the same mechanism.

It sounds like those in power are trying "smoke and mirrors" to hid the fiat nature of the dollar.

Why not have the Fed buy all the debt, then dissolve the institution?

-- Edited by BigG on Friday 14th of January 2011 04:17:10 AM

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