Fed handed out $1.2 Trillion in secret loans

[aslan]

Originally Posted by QFIT

According to whom?

Our entire currency system is based on outstanding loans, which in turn backs the printing of currency. The FED loans to businesses, other countries, and the US Government. Loans to businesses inflate the money supply. Loans to foreign countries inflate the money supply. And when the FED buys US Securities it is the same as loaning money to the government; it pays for the US Securities with new currency, with the US securities becoming the backing for the new currency. Essentially, the US becomes indebted to itself. The entire system is based on promises to pay; the more IOUs that are held by the FED, the larger the money supply. The more these monies are spent, that is, put into play, the more inflation is felt.

[zengrifter]

Originally Posted by aslan

I thought all currency required at least prime commercial paper or government securities to back it up since we left the gold standard.

Nothing "backs" US fiat except the full faith and confidence of the US gummint - provided they got that credit-line increase - in G-D we trust! zg

[QFIT]

Originally Posted by aslan

Our entire currency system is based on outstanding loans, which in turn backs the printing of currency. The FED loans to businesses, other countries, and the US Government. Loans to businesses inflate the money supply. Loans to foreign countries inflate the money supply. And when the FED buys US Securities it is the same as loaning money to the government; it pays for the US Securities with new currency, with the US securities becoming the backing for the new currency. Essentially, the US becomes indebted to itself. The entire system is based on promises to pay; the more IOUs that are held by the FED, the larger the money supply. The more these monies are spent, that is, put into play, the more inflation is felt.

What inflation?

The TP has been making predictions based on their blather for a couple years now, and none have come true. This recession was caused by lack of regulation and dishonest businessmen. The TP solution to gut regulation and put everything in the hands of businessmen makes no sense. The data show that we are pulling ourselves out of the problem. But, it's damn hard when you have a bunch of screaming, no-compromise, chicken-littles blocking every effort based on simplistic slogans and patently absurd accusations that the president of the country is a socialist, communist, illegal alien, Muslim, terrorist, atheist, Anti-Christ, that hates America, wants to turn your kids into homosexuals, and set up death panels to kill your children and grandparents. These people are wacko.

[zengrifter]

Originally Posted by aslan

\The entire system is based on promises to pay; the more IOUs that are held by the FED, the larger the money supply. The more these monies are spent, that is, put into play, the more inflation is felt.

"Remember, its the HORNS, stupid!" >>

[zengrifter]

Originally Posted by QFIT

What inflation? The data show that we are pulling ourselves out of the problem.

The data is skewed and fraudulent, thank you very much. zg

[zengrifter]

Originally Posted by aslan

Essentially, the US becomes indebted to itself. The entire system is based on promises to pay; the more IOUs that are held by the FED, the larger the money supply. The more these monies are spent, that is, put into play, the more inflation is felt.

"Give me control of a nation's money and I care not who makes its laws."
-- Lord Rothschild
"If you wanna make an omelet you gotta break a few eggs."
-- Lord Bernanke

[aslan]

Originally Posted by QFIT

What inflation?

The TP has been making predictions based on their blather for a couple years now, and none have come true. This recession was caused by lack of regulation and dishonest businessmen. The TP solution to gut regulation and put everything in the hands of businessmen makes no sense. The data show that we are pulling ourselves out of the problem. But, it's damn hard when you have a bunch of screaming, no-compromise, chicken-littles blocking every effort based on simplistic slogans and patently absurd accusations that the president of the country is a socialist, communist, illegal alien, Muslim, terrorist, atheist, Anti-Christ, that hates America, wants to turn your kids into homosexuals, and set up death panels to kill your children and grandparents. These people are wacko.

Blather? There is no inflation for exactly the reason I stated, the companies are sitting on the profits derived from the TARP borrowings and on other monies borrowed from the FED and other profits made. This is a well publicized fact. If you believe in Keynesian economics then you should believe that huge government deficit spending is highly inflationary due to the multiplier effect. I hope we can find some way of moderating things once the dam of hoarded money breaks.

The recession was sparked by the Fannie Mae debacle which derived NOT from a LACK of regulation, but instead from poor, misguided government regulation that allowed, no, encouraged and almost mandated the granting of mortgages to persons unable to afford them. Another part of the poor regulation is the very existence of so-called "privatized" Fannie Mae and Freddie Mac, which left them in a position to take enormous risks all the while relying on the confidence that the US Government backed their every action, which it did in writing and in fact. Had FMae and FMac been actually privatized, this entire debacle would never have taken place. Private businessmen do not stick their necks out like the two FMs did; it was precisely government regulation that caused the problem, which you want more of instead of less. Better we also protect the country from dishonest and inept government officials as well, not just dishonest businessmen.

Where is AnIrishmannot2brite when you need him? What you are saying is like me stereotyping every liberal on the Forum as a disparager like him. The truth is, he is only one garbage mouth among many liberals who are balanced and reasoned individuals. It is difficult to search out an find these whacko Tea Partiers you speak of because they are the exception and not the rule.

Screaming? Being loud at rallies is normal behavior. Were Obama rallies full of "screaming" individuals, or were they full of highly spirited, motivated ones? Beauty is in the eye of the beholder. No-compromise is a fault unless it is over principle; then it becomes a virtue. Since you don't recognize the principle, it's easy to mis-characterize it as a fault.

Chicken Littles? Again, if the sky were falling, and the "economic sky," pressured by such enormous debt, may be falling, then it is not a false alarm at all. It all depends on whether one is a liberal or a conservative, that's all.

Obama favors many of the features of European countries which can be broadly characterized as socialistic. He may not fit the dictionary definition of a socialist, but in the popular mind he is close enough in his actions and in his rhetoric to call him a socialist. He was seen in the past as trying to keep the far left behind him, many of whom are socialists, and that also earned him the label, however inaccurate it may be. Let's just say, he pushes the socialist agenda further forward, although he may never intend to push it too far.

Some few birthers, largely NOT in the Tea Party, still cling to the notion that he was not born in this country.

I would not call him a Muslim, but he was born of a Muslim father, and he was educated as a youngster in a Muslim school. His appeasement approach at times toward the Muslim world, unlike most Presidents, has made him seem to be a Muslim sympathizer by his opponents. Again, this does not appear to be a tenet of the TP in any way, shape or form.

Communist. He attended a Christian church for 20 years that appears to preach Liberation Theology. This type of theology is typically found in South American countries and often develops into Marxist/Christian alliances, if such a thing could ever be (and it can't). Real Christians cannot support the Marxist agenda. The Liberation Theology sees God as supporter of the oppressed (so far so good) and advocates doing anything and everything possible to liberate them from their oppressor (quickly gets dicey, doesn't it?). I belonged to a church at one time that I suspected was funneling money of unsuspecting members to rebel forces in South America to help free the oppressed people of a country. For that and other reasons, I left that church. The Christian religion has no business supplying arms. It's mission is to preach and teach spiritual truth, and help men seek spiritual fulfillment. I am not decrying any righteous cause, but as Jesus said, "My kingdom is not of this world." Combine the association of Liberation Theology with a socialist-leaning agenda, and people think "Communist." Not fair. But again, this is not a plank of the TP.

Pro-homosexual, anti-Christ, and killer of children-- c'mon now, Qfit! Some whacko's in the general population voice such things, but this is not and never has been something typical of the TP. In fact, none of your charges against them are typical of the TP. You're painting them as far out whackos. There tenets are smaller government, the need for deep spending cuts to counter out of control Federal spending, the need for a pro-business atmosphere at least during these stressed economic times, including a lower tax rate on business and elimination of those regulations that strangle business without serving any commensurate redeeming social good. They don't want to eliminate regulation altogether; that would be irresponsible. They are not the far right. They are more a coalition of conservatives and libertarians, with a smattering of moderates and liberals who are disappointed in the two parties. They are certainly not as extreme as me-- I say, get out of these foreign wars, stop meddling in the business of other countries (hasn't the past 60 years taught us anything?), become energy independent, and step in the gap between business and worker by making American labor competitive with foreign labor and America a better place to manufacture its products once again.

[Jack_Black]

Originally Posted by zengrifter

As always, citations are at Zzone >>

$16 Trillion Secret Bailouts Revealed in Fed Audit

GOP Congress Redirects $30 Billion For Struggling Homeowners To Pay Debt

Let's slow things down a bit before getting into political discussions, ok? Namely, how can there be 2 numbers being posted by 2 different news sources? one says 16 trillion, the other 1.2?

[QFIT]

1. The companies that are sitting on huge profits did NOT partake of TARP. Apple, Exxon, Microsoft have no TARP money. Just piles of cash. The TARP money has been recirculated into the economy.

2. No, Keynes did NOT say that gov't spending will necesarily cause inflation.

3. Fannie Mae came later. The cause was the failure of securitized mortgages, based on junk, the miss-rating of those securites, which caused the failure of AIG, which caused a meltdown. This was the fault of lack of regulation and greedy, dishonest businessmen that took advantage at the lack of regs. Again, I blame both the Reps and Dems for this. Privatizing Fanie Mae would have made no difference.

4. The TP wackos are not the exception. Look at every single one of their candidates. Every one sad they would refuse to take a deal where they get 91% of what they want and Dems get 9%.

5. It is NOT a vitue to say you must get 100% of what you believe in and people that believe otherwise must get 0%.

6. Any suggestion that Obama is a socialist is ignorant. His actions have been conservative. His health plan is more conservative than Nixon's or Romney's.

7. He was NOT educated in a Muslim school. Appeasement makes no sense as a description. Muslims are not our enemy. Unless you are a bigot.

8. A poll showed that about one-third of Republicans think Obama is the Anti-Christ. AM just posted that he would kill those he thought not worthy. Bachmann and Palin have repeatedly stated that he is setting up death-panels to kill children and old people. I know this is so insane it sounds like I am making it up. But, it is true.

9. Bachmann has called for the EPA to be padlocked. Cain has called for environmental regs to be decided by a panel that includes oil company execs. I know this is so insane it sounds like I am making it up. But, it is true.

[aslan]

Originally Posted by zengrifter

"Remember, its the HORNS, stupid!" >>

Bernanke is horny? Who'd a thought! It's time he appeared on the cover of Playgirl.