The Federal Reserve Banking system is creating the money for him "out of thin air." This 5 minute video is a great primer for beginning to understand how the banking system works. The more you know about our banking system, the more the whole thing seems like a scam. This video is very interesting and well worth your time.
Money - How it gets created out of thin air(video)
Hat tip to stevesimon.us/blog/
4 comments:
Obama certainly didn't invent this, it is the standard state of affairs.
I'm a gold standard supporter, but I've been getting less uptight about the dollar the more I understand this system. I think one of the key things people need to realize is that this (video) is the way the system works. Dollars aren't wealth, they aren't safe, and they are themselves promissory notes (debt) built upon other debt, built upon other debt, built upon nothing but the gossamer rigging of belief in their value.
Once you accept this, you realize that the things you buy with dollars are the wealth. The dollar is a hot potato. Use it as a convenient source of liquidity for your transactions into less volatile sources of value. The craziest thing is, even with the trillions we have flushed into the system in recent months, the dollar is up 16% in the past year, which shows just how much worse the rest of the world was hit by all of this than we were.
I'm wondering what Obama will do if the day comes that the Chinese ask him to step down? After all that seems to be what you ask of the CEO of a failing company or administration.
That was actually a pretty good video.
I recently read the book "Meltdown" by Thomas E. Woods, which goes into more detail about everything in that video. He blames the economic collapse on the Fed and its policy of easy credit and artifically low interest rates.
Steel Phoenix brought up the gold standard, which could very well be a major part of the solution. Since our currency is not backed by any metal (gold, silver, or anything else), that means the Fed can print money whenever it wants, devalue our currency, and face no real opposition to it because the Federal Reserve Notes cannot be exchanged for the metal. That means we're all just stuck with the currency we have.
A monetary system backed by gold or some other metal makes it difficult for the government to devalue it because the paper money would be able to be exchanged. The fiat currency we have is one of the prerequisites needed for bailouts to occur. It's easy to get and there's literally nothing the people can do about it.
Thanks for all the insightful comments and analysis. You are a great bunch of posters.
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