What is Digg?97 Comments
- inactive, on 10/10/2007, -5/+22Number 1 in big bold letters SHOULD be CHINA. China has a TRILLION of our debt right now.
- bobsander87, on 10/10/2007, -7/+24The Canadian dollar recently broke even with the US for a small period of time... How rad is that?
- NoTiG, on 10/10/2007, -0/+13I like how they put inflation last.
- shig, on 10/10/2007, -0/+8I like how they also put #23, increase in money supply, under "Economic Theory" instead of "Inflation", for which it is the very definition of.
- Jack9, on 10/10/2007, -3/+11-This is a pretty complete list however the burning question is WHY is the dollar dropping this time?
Um, perhaps because the Federal Reserve has been hyperinflating the money supply so badly they stopped issuing the M3 report 3 years ago to hide it?
This is another crappy blog ppl take as fact because they dont remember anything from school and have no real interest in the economy. Marked inaccurate. - NaciremaDream, on 10/10/2007, -0/+6"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States 9th Circuit 1992
"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982
So, now about why the mass media isn't covering Ron Paul. It runs deeper than your health care and illegal immigration... they are robbing your labor blind by just printing up money...
Imagine the power to print money in the hands of a criminal ... guess what happens to the rule of law ? (Constitution) - NaciremaDream, on 10/10/2007, -0/+6"We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." --Robert H. Hamphill, Atlanta Federal Reserve Bank
"Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." -- Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975
"When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank
http://www.freedomdomain.com/bankquot.html - jdh24, on 10/10/2007, -0/+5Probably because there should be a big giant #1. THE FEDERAL RESERVE.
#23 should be moved up to #1 and the font should be huge. - inactive, on 10/10/2007, -5/+10Dugg down for not blaming it on Bush.
- dubstyle311, on 10/10/2007, -0/+4Well, he is wrong. China doesn't one trillion dollars of US debt. They hold around 1.4 trillion dollars in their currency reserves. Very different than debt. They own less than 500 billion in debt. Japan is still the single largest holder of Treasuries.
- shig, on 10/10/2007, -0/+4Social programs such as medicare, medicaid, and social security, account for over 50% per dollar of taxpayer spending. For example the entire budget of the military, in this "time of war", account for little over 20%. Not to mention our young people will never see a dime of return on their social security tax spending.
If you told that to the Euros there would be riots on the streets for everyday it wasn't completely abolished from the budget. - etnu, on 10/10/2007, -0/+3Social Security and Medicare are separate payroll taxes, so lumping them together with the general budget is inaccurate. Now, many of the feds would LOVE you to think that they're one big budget for a few reasons:
- Allows the general fund to continue robbing the social security nest egg.
- Makes the military budget look smaller
Medicare is a stupid system because it's abused. We pay almost as much in medicare, per capita, as the socialized medical systems of other major countries, and yet medicare only covers a small fraction of the population.
Social Security is a stupid system because it's based on a flawed concept. Rather than saving and investing, it encourages young people to pay for those who have since retired. - NaciremaDream, on 10/10/2007, -1/+4"Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" -- Congressional Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and
Currency (12 years) June 10, 1932
http://www.freedomdomain.com/bankquot.html - halligan00, on 10/10/2007, -0/+3"If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. The difference between the bond and the bill is that the bond lets the money brokers collect twice the amount of the bond and an additional 20 per cent...."
-Thomas A. Edison
Debt-Free Money FTW! - micromause, on 10/10/2007, -0/+3AMEN!
- halligan00, on 10/10/2007, -0/+3Such a gold-based paper would really just be a more convenient form of barter. Such paper should not be outlawed, nor should it be required as legal tender.
The US Gov't should demand that all debts owed to it (taxes, user fees, etc.) be paid in US Treasury Notes, which it could simply issue in a manner to provide a supply consistent with demand. IOW, it could supply to keep the value constant. - shig, on 10/10/2007, -2/+5It's nice to know that counterfeiting operations have absolutely zero impact on the value of the dollar. Of course, one could list this under inflation, but they don't even list the increase in money supply, #23, under inflation. Instead they put #23 under "Economic Theory", which made me immediately stick a finger down my throat to rid myself of the nonsense that followed it's description:
#23 Increase in money supply
"With every new dollar printed, each one is valued less than before. The more dollars there are in circulation, the less the currency is valued because the supply has been increased. In practice, this usually causes inflation, which directly eats into the value of the dollar. While this would seem difficult to measure, the Federal Reserve periodically publishes M2 and M3 data reports on the US money supply."
Did someone forget to tell her that the M3 hasn't been published by the Federal Reserve since 2005? That was big news to every other currency investor, but not Jessica Hupp. She magically still gets M3 reports. What those reports could tell her is that the currency has doubled in the last 10 years, and the economy has grown by negative 50% in the last 6. The whole article contains ridiculously worthless information when this is taken into account.
Here's a quote from the announcement the Federal Reserve made about the M3:
"The costs to the Federal Reserve and the private sector of collecting data and publishing M3 now outweigh the benefits."
We Americans can be some dopey-headed bastards. "Oh, look the DOW is HIGH at 13000!" *****-tards, the whole lot. Excuse the language, but I've lost 50% of my money, and I didn't do anything but keep it a bank so I'm understandably angry unlike the cool yuppie kids that haven't a clue. - 1013, on 10/10/2007, -3/+6More intellectual BS designed to make the average person think that our monetary problems are too complicated to understand. Get rid of the privately owned Federal Reserve and let the government issue real /Constitutional money. Under the current system, our income tax is solely used to pay interest to the elitist a**holes who own the Federal Reserve.
- NaciremaDream, on 10/10/2007, -0/+2Congress does not control economic policy... You can throw all the precentages out you want about supply, productivity and deficits.
It is against United States Public Policy to "pay" debts, debts can now only be discharged. (Hosue Joint Reolution 192. 1933
The truth is every Federal Reserve Note was loaned in existence and the "Country" operates in debt, hence you credit cards and mortgages. The American people are not represented by the Federal Reserve, I will agree that it is the fault of the generation living in 1933. It is not the fault of those that came after. Their education system does not even teach them how money is created. There is no lawful authority to steal the labor from generations not even born yet, hence Federal Reserve Notes are voluntary according to Title 12, S 411 and can be redeemed. We should be looking to educate peopel on this instead of throwing useless economic rhetoric the United Nations , via the Federal Reserve has programmed into the college courses... its all smoke and mirrors. - halligan00, on 10/10/2007, -0/+2Nothing wrong with interest on a loan, it's loaning money into existance that bothers me. The banking system gets to loan money that they don't have, and receive interest on it. With debt-free money, banks could only serve as brokers between lenders and borrowers, rather than creaters of money.
- 4Runner, on 10/10/2007, -0/+2http://www.youtube.com/watch?v=_3jdQxDC7pA
On this CNBC interview, a vice president of market maker Jefferies International says: "The Amero is the proposed new currency for the North American Union (NAU), which is being developed now between Canda, the US and Mexico, to make a borderless community like the EU. The dollar, Canadian dollar and the Mexican peso will be replaced by the Amero." - timcoulter, on 10/10/2007, -5/+7This is great...very informative and well-written.
- shig, on 10/10/2007, -1/+3Correct. Since the Federal Reserve Act of 1913, our dollar has been devalued every consecutive year with ZERO exceptions. In the past few years it's been devalued over 50%, but every yuppie drives around like they don't have a clue as to what's happening to their bank accounts on a daily basis.
- mrASSMAN, on 10/10/2007, -2/+4Heh.. every single one of those factors are at their worst point at the moment.. which is why the dollar is breaking records lows.
- halligan00, on 10/10/2007, -0/+2Like everything else, the price of the dollar (it's value) increases with demand and decreases with supply.
Having an absolutely fixed supply would be disastrous; the supply must keep pace with demand. OTW dollars would be interest bearing, and people would tend to hoard them rather than exchanging them for labor, capital, land, & wealth.
The supply needs to increase in a controlled manner, such that the 'price' of the dollar remains constant. The dollar-price of a suitable & broad basket of goods should be kept within $1000 +/- $10. When the dollar value of this basket is below $990, create more dollars. When the dollar value of this basket is above $1010, destroy some dollars.
These dollars should be created on printing presses owned & commissioned by the U.S. Government - Treasury Notes. These dollars should not be created by fractional reserve banking. - 1013, on 10/10/2007, -0/+2You might want to do some "on your own" research. The economic garbage they feed you in college doen't tell the whole story. Sorry, but your way off on your "domain of the treasury".
- brad3378, on 10/10/2007, -0/+2This list is in no particular order of magnitude. It is sorted by category type.
- siszam, on 10/10/2007, -1/+3"As a significant government expense, entitlement programs can have a large impact on the way investors view the value of the dollar. If it looks like the US is letting things get out of hand, these programs can shake the confidence of investors. These are a few of the programs and issues that affect the dollar."
Wrong. Programs that help people are not "out of hand". Other countries manage these kinds of things plus universal healthcare. The thing that's out of hand is government spending on pork, war, corporate welfare, tax cuts for the rich, no bid contracts to rebuild countries we tear apart for no reason, spreading propaganda against leaders who do things better than our country........there is an endless list of trillions of wasted dollars. I'm sick of people making every excuse in the world to keep them from doing the right thing. Many people and our government want to be selfish, evil, greedy demons who would rather squeeze a dollar in their tight little fists as they watch a child die from lack of care. If that's you at least admit it. Stop making it sound like it's impossible to do the right thing. It's not. - NoTiG, on 10/10/2007, -0/+2I think what dub is trying to say is that increasing the money supply only increases inflation if it does not increase equally in production to back it up. Quite frankly there are only two things that can change the value of money: Inflation, and deflation.
- BESTenemy, on 10/10/2007, -0/+2Number 17 - acceptance of oil in dollars, is the key to our dominance and ability to export debt onto the rest of the world. Only half the problem that it costs much to wage wars in order to enforce our foreign policy. The other half is peak oil - something we can do nothing to avoid. At first, as the supply diminishes, the prices will keep growing, still increasing the dollar circulation, but when the decline in supply makes oil economically unfeasible as an energy source, then we're in trouble. Electricity is the new oil, and everything that makes it, but we don't hold electrical monopolies. We can't stop countries from developing their own self-reliant powerplants...
... oops. I take back whatever I just said. Iran just came to mind. - AFJon, on 10/10/2007, -0/+2"Um, perhaps because the Federal Reserve has been hyperinflating the money supply so badly they stopped issuing the M3 report 3 years ago to hide it?"
Source on hyperinflation?
Mine says about 3% for the past 7 years, hardly hyperinflation
http://inflationdata.com/inflation/inflation_rate/CurrentInflation.asp - brad3378, on 10/10/2007, -0/+2It is implied in multiple sections of the article.
- jimmythorton, on 10/10/2007, -0/+1Prices would be higher on average for imported goods. But, this would be short term; the weaker dollar would encourage exports boosting our economy and strengthening the dollar. The market will likely right itself. I fail to see why the dollar will become worthless futureinmind if our economy continues to produce. The dollar is your claim to our GDP. So long as we produce and the Fed continues to keep inflation in check (under 3% which it has) then the dollar willl not become worthless.
- AFJon, on 10/10/2007, -0/+1source or reason?
- whatsagoodname, on 10/10/2007, -0/+1Silly list:
Reason n: x goes up.
Reason n+1 : minus x goes down.
@brad3378
Well if the dollar isn't worth much, and you want to buy something made in another country....?
And this list doesn't even mention productivity! If an hour of an American's time produces a huge amount of value compared to an hour of someone else's time, then our currency will be worth more. And relative changes in productivity will change the value. Why wasn't this key fact mentioned? - inactive, on 10/10/2007, -0/+1CORRECTION: POINT 23 Reads: Increase in money supply; "While this would seem difficult to measure, the Federal Reserve periodically publishes M2 and M3 data reports on the US money supply."
In actual fact: The federal reserve no longer prints the M3 data, there is NO figure for the actual number of dollars in circulation. - mrASSMAN, on 10/10/2007, -1/+2At least half of these factors can be attributed to the Bush administration.
- corneliusJones, on 10/10/2007, -1/+2national social programs like Medicare, Medicaid, Social Security, etc. do cost a lot of money. dollars. now people might argue about the effectiveness or efficiency of said social programs, but they are expensive none the less and make up nearly half of the federal budget each year. That's a lot of dollars comrade, and that means it can effect the value of the dollar depending on how much is spent and where.
- patch6, on 10/10/2007, -0/+1They do address the expansion of the money supply, but it should probably be the highest factor, and not one amongst 50 of undeterminate rank.
- patch6, on 10/10/2007, -0/+1People like being screwed, apparently.
- NaciremaDream, on 10/10/2007, -0/+1Thanks for the link
- generalloy, on 10/10/2007, -0/+1How will you produce enough at low enough wages (to compete with China)?
- NaciremaDream, on 10/10/2007, -1/+2Yeah who teaches that stuff... Lolol... The actual US treasury hasn't done much in 74 years..... The FEderal Reserve does employ the Bureau of Engraving and Printing... but the FEderal Reserve is not a government agency.
"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States
9th Circuit 1992
"The regional Federal Reserve banks are not government agencies. ...but are independent,
privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239
9th Circuit 1982
Heres congressional record. Congressional Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932 "Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" --
This is why Ron Paul is being demonized by mass media... its no coincidence he wants to get rid of the IRS. - generalloy, on 10/10/2007, -0/+1A NAU and Amero is an insane idea by a greedy bunch of companies. Canada and the US are already like *TWO* Europes.
It's like Canadian Confederation and the US Confederation never happened...though I'm sure those companies wish they never did. - wvernon1981, on 10/10/2007, -0/+1Overall, to really understand a lot of this list, one would need to study economics which takes a lot of time to really learn.
- AFJon, on 10/10/2007, -0/+1From:http://en.wikipedia.org/wiki/Hyperinflation
"One simple definition requires a monthly inflation rate of 20 or 30% or more."
3% is much less than 20-30%, and yes I do know what compound interest is - hughdal, on 10/10/2007, -0/+1Definitely not rad if your living in Canada but being paid in US dollars. More like RAT
- NaciremaDream, on 10/10/2007, -0/+1The USGovernments National Debt is not the peoples, its the governments... it , however, can not get a job, and need you to pay for it through the Income Tax (Grace Commission) ... in doing so, you can get perks and benefits like social security and being licensed and permitted to do things... ... this was the "New Deal" ....
However, what they do not want Americans to know is that the "Old Deal" is still on the table, you just have to know how to access it... the "old Deal" is the COnstitution. - halligan00, on 10/10/2007, -0/+1Ah but they do. They've only to have ~10% of their deposits as reserves. So you deposit $1000, and they'll lend me $900. The rub is that I'll spend $900 and you'll still have $1000. So there'll be $1900 in existence (plus $900 of debt), which is not the same as only having $1000 in existence. And, the problem is compounded, because I'll spend my $900 somewhere, and that person will deposit in their bank, which will then lend out $810, to be spent & deposited, resulting in a loan of $729, so on and so forth. In the end, depending on how much is kept in pocket vs. deposited, that $1000 of money has become $10,000 of bank-credit.
- halligan00, on 10/10/2007, -0/+1Well, just the supply of gold isn't fixed, you trade bankers for miners. And fractional-reserve banking was invented for gold: I'll keep your gold, and give you a receipt for it - you can trade the receipts with each other.
Money supply does not have to keep pace with demand, but if it doesn't, you'll have deflation, and all the problems that go with that, among which include:
"In more recent economic thinking, deflation is related to risk, where the risk adjusted return of assets drops to negative, investors and buyers will hoard currency rather than invest it, even in the most solid of securities." http://en.wikipedia.org/wiki/Deflation -
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