The Greatest Heist In History

Combine US Debt with the coming inflation rates, both intentionally engineered, and you get one result; robbery on mass scale.

Category:

News & Politics

Tags:

• US Debt
• Deficit
• Treasury
• Obama
• America
• White House
• China
• Clinton
• Buying
• Debt
• Borrow
• Geitner
• Robbery
• Off Shore Accounts
• Corruption

[eatenmyeyes]

For your little theory to make any sense, inflation would need to be removed from the calculation of the debt. As it stands, any change in the value of the currency is reflected proportionally in the debt.

Also, your understanding of the money supply seems questionable.

[BiggsReport]

How so? China holds reserves in dollars. Dollars are still the principal reserve currency in the World. Dollars are subject to our monetary policy choices, including those that incur massive inflation. If the debt itself is denominated in dollars, then there is no problem with the theory at all, since we have borrowed when the dollar was strong, bought hard assets, and then repaid when the dollar was weak. Also, what is your problem with my "understanding of money supply"?

[eatenmyeyes]

The loans adjust for inflation. The loans are structured such that the scheme you are proposing is not feasible. However in cases in which an economy shrinks, devaluation may follow. In that case, the party loaning capital would face the same risks as investing in a money market fund.

When the Fed "prints money" they don't just throw it in the street for people to grab. Interest rate and minimum reserve adjustments provide incentives for banks to make more loans.

Do you understand now?

[BiggsReport]

First you say the scheme I am proposing is not feasable, then you describe exactly what I said by saying; "However in cases in which an economy shrinks, devaluation may follow. In that case, the party loaning capital would face the same risks as investing in a money market fund."

That is EXACTLY my point.

As to the incentives for banks to make more loans; that is not even pertinent to my point. The more money is in circulation, the less each dollar is worth. Whether that be banks loaning it...

[BiggsReport]

...or Ben Bernanke shoveling cash out of a helicopter over a city (look up "helicopter Ben"; his old nickname) doesn't matter at all. In either case you have an inflationary effect whenever you create new money. We have tripled our money supply in about a year. That means inflation. The only reason we haven't seen it hit is because banks have been sitting on their shares of the bailout money. Apparently your "incentives" aren't working too well.

[JosephHuntington]

The collapse of the American economy will occur on May 21, 2012. Families without food and water, clothing and tools set aside will be thrust back to the typical lifestyle enjoyed 300 years ago. I implore you read what that daily life style was really like. My words are truth. To the wise, they give life, security and peace. Stay in your homes. Ignore government edicts and cover your chimneys at night.

[risecat]

shoot, i've known about that fraud since i was a child. glad someone talks more than i do! :P

[eatenmyeyes]

It's a fiat currency backed by people's faith in the US economy. Since the economy is not doing so well, it makes sense for the dollar to lose value.

Since the result of the scenario you are proposing would be Anti-Pareto, there is no motivation to provoke this if people are acting reasonably.

[BiggsReport]

... do you want to vote Libertarian? A libertarian government would put less control, not more, on the private sector. In fact, it was stupid, centralized control that caused the problem, so you would be right to vote that way, except it doesnt match up with anything you seem to believe. Why aren't you a Democrat?

[BiggsReport]

Oh, brilliant; so if a "company gets too big" then the world explodes huh? There were these two, ever so small things called Fannie Mae and Freddie Mac that were huge mechanisms for distortion of the mortgage industry; now what industry caused all the damage? Mortgage. In addition to this, the Fed caused a borrowing bubble by keeping the interest rates too low for too long; once again, government intervention. You don't want companies to get "too big" -to limit their freedom... why...