Taking notice that today Rand Paul talks about influencing 'the FED'eral reserve, and that Trump has mentioned it several times since taking office --- their doing so reminds me of some info from an article released a few years ago that is most likely WHY it's so heavily on their minds;
I am about to share with you some numbers that were originally reported by CNS News. As you can see, far more debt is being redeemed and issued today than back during the middle part of the last decade...
The only way that this game can continue is if the U.S. government can continue to borrow gigantic piles of money at ridiculously low interest rates.
And our current standard of living greatly depends on the continuation of this game.
Considering that info it's no wonder the politicians who want to keep our country financially afloat a while longer are so concerned about the interest rate THE FED sets. Raising the interest rates on the annual borrowing would almost certainly expedite the ponzi scheme's inevitable collapse.
..of course, it's all temporary anyways - it has to be considering we have demonstrated zero intent to pay off this YUUUGE debt for decades. Over those decades our best efforts have been to try to add less debt annually, not even pretending to try balancing a budget, let alone start paying off the monstrous debt we have. The only reasoning i can think of for that kind of behavior is either the political realm believes money will cease to exist, or it will be taken from the private sector by government and alloted back as it deems best.
I, myself, have not incurred any debt for the past 20years. How is this possible you may ask. I spend within my means. I never buy anything unless I have the money to pay for it. I don't eat out, I wear my clothes until they fall apart and drive my car until it's not worth fixing. I save my money to pay for any repairs incurred like my HVAC being replaced last year. I'm now saving to have my main water line replaced along with my septic tank and lines or the County replaces them with a sewage line. Whoopy for you says they.
I must also add this is how I've spent my life and now those pennies my husband and I saved has made retirement easier. I could have taken vacations and eaten out once a week but I made a choice, debt or temporary pleasure. I now enjoy long time pleasure in knowing I have owed no one for 20 years. I find there are two things politicians love, spending tax-payers money and lying about it.
The Leftist are trying to crash the market, the Fed loves to loan money to the Government because the people can pay for it. Both know there are still trillions in worthless paper from the mortgage collapse of 2008 left floating around between the Banks and Wall Street. Now that Obama's Regime is no longer throwing trillions of Tax-payer's dollars at the Banks and Wall Street that dead paper worth trillions has no place to go. One could say that the dead worthless paper mortgages has been sold and resold that no one wants to buy them unless the Government backs them. Our Government cannot back them unless they borrow the money from the Fed and get paid by the Treasury. One might say we are in a game of Monopoly. The Democrat's legacy to President Trump and the people is an impossible debt and no way of paying it off until the Government stops spending.
The people have started in a small way by starting a "GoFundMe border wall" Yes, it will be "The People" who will help President Trump. Again there will be no dinners out or new clothes this year. I said once I would forgo 20% of my SS to help cut down the debt. But, knowing politicians they would only spend that 20% to get elected again. So, I will fund the wall through "GoFundMe". This will do two things. It will show my support for President Trump and give him leverage against the Fake Democratic Congress next year.
No, it won't help solve the elusive floating trillions in dead paper mortgages problem but it will let President Trump know he is not alone. All he has to do is ask for our help and we will come.
an accurate and more detailed account of the situation than most could probably give Christine.
The 2008 financial fiasco did put $trillions of debt based (no intrinsic value) dollars into the economy, which only served inflation - and the already uber-wealthy elite bankers. (or bank-note printers, I highly recommend reading BROTHERHOOD OF MONEY - The Secret World of Bank Note printers by Murray Teigh Bloom. It's a collectors item due to it's supposed accurate depiction of how much global power the very few banknote printers have and is hard to find. But it may be available here, I'm unfamiliar with the site = https://openlibrary.org/books/OL8385178M/The_Brotherhood_of_Money )
The only thing I'd add to your account of it all that I think is important to remember, and I think ya'll already know, is that GWB's last act was to give the incoming president obie a $trillion check to begin his siphoning of money upwards to the banking elites.
...and going just a little further into remembering presidential Bush history, it was GHWB who created our country's 'too big to fail' banking elites - who got the $trillions. He did it in response to the S+L Crisis (that incidentally was triggered by THE FED hiking it's interest rates for the S+Ls to 15-18% - as result for a bunch of bad behavior by S+L CEOs), within his banking deregulation 'ACT', in his 1st year in office, allowing interstate banking and branch banking and a bunch of other things that were opposite of what our country's 'principles of banking' were since inception. -- I know that due to actually being in a 'Principles of Banking' community college class at the time of the S+L crisis paid for by my employer - which was a bank. That made Bush's deregulation ACT especially confusing to me -- IT WAS against everything I was learning in class, and had to answer on tests. That deregulation ACT created the 'too-big-to-fail' banks that recently got those $trillions.
Great post, Larry. "And our current standard of living greatly depends on the continuation of this [game]"
What you refer to as "game" I refer to as "patterns of behavior. And, despite the FACT that the ponzi scheme is about to collapse like an avalanche, this post/WARNING will fall on 10s of millions of deaf ears. As always.
As far as DT "influecing" the FED -- never-gonna-happen. The FED has the XVI Amendment behind it.
So, who's to blame? The corrupt capitol; or over a century of a negligent population? The answer is BOTH.
btw - 'game' was not my wording - unlike most everybody I don't find anything about any of this or politics in general a 'game' and especially object to partisans flippantly using the word - it's far too serious and impactful on our lives to be considered simply a 'game'.
Nothing I could add to add to or top what Christine, Larry and Luis have said, bless them all.
Larry I get your objection to using the word "game" -- but games are what flippant politicians do and they are all in for winning. Its not games for country nor we the people it's a game for politicians and as Pelosi recently said "there will be casualties so so be it".
I have to agree GW looks like he is responsible for the 2008 housing collapse but it began with Clinton. I had been telling everyone I know to get out of debt 2 years before the housing collapse but, like the politicians, no one would listen. Any one with eyes and ears knew what was happening with the housing situation. We had a preview in Reagan's era when the economy sky-rocketed out of control.
We know what Big Business does when Enron was caught cooking the books. It's happening now but on a much larger scale. What do I think the problem is that people don't see? I call it the "I Want You to Love Me Syndrome". Yes, buying love by giving even if they have to go into debt to do it. It sounds rather simple but look at all those commercials that tug at people's heart strings. Yes, just 19 cents a day will give you love in your heart. I'm not against choosing one charity and giving if you can afford it on a regular basis but if you can't you can give a one-time donation within your budget and feel good you have done your best.
Unfortunately, most people cannot control themselves and don't know when to stop. Poor or rich, street cleaner or President, all want to keep giving until the debt gets so large they can no longer control themselves. That's when it becomes an addiction and, society enforces this behavior. Then one day that loving feeling turns to despair and then hate for their loss of self control. Eventually that hate for themselves is transferred to someone or something else and the vicious cycle continues. If parents and grandparents keep giving and spending their retirement then why would we expect better of our children and grandchildren. Dave Ramsey has taught debt free for years. His course should be taught in all schools and taken by every politicians and businesses.
A simple solution even for Countries. President Trump is giving 10 billion to South America and Mexico to keep their people home. Excuse me, we are throwing more of our tax dollars to politicians of Countries who are pushing their citizens to invade America. Why not build the Border Wall with that 10 billion? I say build military bases along the border with that 10 billion. You see, I don't give a fig what Mexico, South America or the World thinks of us. When they start supporting the World like we do and stop yapping against us then they can speak.
If our Government cannot control themselves from spending tax-payers dollars then how can we blame other countries and big business from taking it. Most politicians cannot buy love, they just buy votes. Votes are power. Banks and Businesses do not love us, they only love money. So, who do you love.
The fuse to the housing collapse goes back even further than wild Bill Clinton. Remember Jimmy Carter's Community Reinvestment Act of 1977?
Imo, none of the federal social programs have worked or are working. And the only thing that TARP(Bush43) and the stimulus (BHO) did is make the banks even more WEALTHY and POWERFUL. And the local/community banks started to disappear. And that was destined to happen from the moment Billy signed a law in 1999 that repealed Glass/Steagall
The one thing that federal social programs do is keep the majority of the population dependent on and under the thumb of the federal govt by stripping away an individuals very drive of self-reliance and accountability.. It changed how the American culture thought and behaved prior to the XVI and XVII Amendments. And this co-dependence...which I usually describe more as a mental/emotional addiction...had become ingrained within the culture's dna. Ever tried breaking a drug addicts addiction? It's HARD as hell! Now try it w/ 10s of millions across the country. We're gonna see a taste of that when the food stamp program collapses soon enough.