Quote:
Originally Posted by Heretic
...the 700b bailout seems to be a worse threat to me ATM.
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I agree Heretic. The public backlash form this alone may be reason enuff for Marshall Law.
As I see it, this an inflammatory move. AIG was bailed out by the tax payer backed load of 85 billion. The privately owned Federal Reserve Bank gets 11.4% p. a. interest. In round figures this act of "charity" nets a cool $807 million per month. At that rate, the $700 billion will net them $6.65 billion per month.
This is both
1) outrageous and
2) preposterous.
1) It is outrageous because it is obscenely greedy in the face of the impact this would have on the tax payer. It is money that would not be dispersed with the usual caution nor with any significant accountability. Will the rate settled on be fully charged until the "loan" is repaid? Will the interst be charged on just the principal outstanding? I don't know any of these important details but it can be done a much better way.
Where does the Federal Reserve Bank (FRB) get $700 billion from in the first place. The short answer is that it gets it from thin air (look for "Money as Debt" and "The Money Masters" to get the long answer for that).
2) It is preposterous because the government, without incurring any debt, could issue this amount without any debt whatsoever. If there were no other option other that the FRB then one
might agree but only without interest. Interest is extortion and inflationary in this context.
The 1913 FRB Act may need to be removed/modified for this to work but there is not reason to use bank debt to for the government issue finance. If Lincoln and Kennedy could do it, why not Bush? Lincoln used fiat currency to issue $450 million, Kennedy used silver backed currency. Lincoln's method was probably better because the bankers are hoping like anything that fiat currency will get the blame for this crisis rather than the greedy banking system. The bankers have cornered the gold and silver market for just this situation to unfold. IMO, this may be where Ron Paul has got it wrong. Gold and silver backed currency is the bankers fall-back plan. After all, the system we have now was put into place from the gold and silver backed system. Gold and silver is the globalist banker's stock and trade.
In Short?
Just say "no" to the $700 billion package if it involves the FRB. It will cost trillions and trillions over years and years.
Anybody else studied this stuff or seen those presentation on money? ("Money as Debt" by Paul Grignon and "The Money Masters")
Regards, nodrog.