Stop the presses, Arjay has spoken!

>>Obama has not a clue and transfers responsibility to a GROUP OF PRIVATE BANKS WHO CREATED THIS WHOLE DEBACLE!<<

Frankly, Arjay, if I had to choose whom to believe on the topic of US finances between you and President Obama, I have to admit that it would not be you.

I hope you are not offended, but I'm dead cetain he knows considerably more than you do about finance.

In fact, I suspect the First Dog, Bo, would be well in the running for that honour.

If you had the first inkling, even the tiniest glimmer, of finance knowledge, even merely of simple balance sheets, you would not embarrass yourself with these outbursts.

This is classic:

>>The Fed is not doing it's job since the business community is now suffering from a shortage of credit <<

One minute you rail at the Fed for creating money, now you accuse it of constraining credit.

Which, just so that you cannot possibly misunderstand how silly your statement is, is the exact opposite of "creating money"

And thanks for another edifying video, Philip Tang.

>>What do you think of the following documentary, "Monopoly men, (Federal Reserve Fraud)" <<

Well, for a start, it is not a documentary.

It is tabloid journalism, the sort with which Today Tonight would be embarrassed to be associated. I'm only surprised that they didn't point out that the Fed's Board of Governors are in fact aliens, whose spacecraft, even now, is being held in readiness for their departure in Area 51.

If you really want to understand the need for the Fed, do some research on what happened when the US Government actually tried to run the currency on their own. The nineteenth century was littered with credit crises, culminating in the Wall Street Panic of 1907, that "caused what was at that time the worst economic depression in the country's history"

http://odur.let.rug.nl/~usa/E/usbank/bankxx.htm

Rather than rely on YouTube dross, take a straightforward walk through the essay at the above link. It is not too long, very interesting, and deals only in reality.

Ahhh, but WHOSE reality?
Sorry, couldn't help throwing a little perspective in there.

perculior<<The/reality..the creation of an asset automatically..brings..the creation/liability.>>..pure insanity and typical of the dross you consistantly post

go to the gold fields..finding a nugget creates an asset..[show me where..<<''the..creation/finding..of the asset created a liability''>>]...and if/your going to say transport costs or some other debt is a liability,...i will remind you that your saying the creation AUTOMATICLLY brings a liability

[so i will say i walk in my garden..finding a four-leaf/clover,or a rare plant..or some hidden stash of coins,..or make a pot from clay found in my yard..[fired in leaves..picked up off the ground..[where is the liability the asset creation..''automaticlly'..created]lol

<<This is most often in the form of a promise to repay,at sometime in the future,..the amount that was"created".>>...your talking about BUYing an asset..[yet..again your excluding barter or simply exchange or even gift..or any one of the many other possabilities to aquire assets..

[you still persist in yout ignorance to overstate..your simplistic over-simplifications..quote<<..There is absolutely...lol..no exception..to this rule...None.>>...lol

you wanted it..in my own words..[yet refuse to listen to the proofs i provided]...ok i am the fed...i give you a fixed unit of exchange[legal tender]..in the form of a one dollar note..[it costs me..like the fed]..7 cents to print]

in exchange i get from you an iou..[at the generous ursury of 5 percent]...you have a devalueing asset..[1 buck]...i have a negotiatable instrument,..that inflates in value,..next year your dollar is still worth one dollar..[my negotiatable instrument is worth one dollar AND five cents]...where are you going to get the 5 cents..ursury from..to ever repay me

oh and by the way..i onsold your iou..[for a dollar 15cents]..in the form of a 5 year note...[they got a discount/but hey..im generouse to my real mates...but you can still make your payments to me...lol

[gotta love..this exclusive franchise/me and me mates have..via this banking cartel...i got my dollar back on the securities market..[and have printed..10 more dollar bills..=70 cents..[plus my costs of 35 cents for the bus fare]

and will give govt their share after i pay my other costs..[think i will pay myself 7 cents..in wages that should buy me an other dollar note]

Can you say this? can you talk about true concerns with the forum?
Well I am going to find out.
This thread is one of a few that concern me.
I am no angel, my entry into this forum was blighted by poor spelling and heated by genuine dislike and distrust of the then federal government.
I still feel unhappy on looking at some of those posts, mine.
And yes I fought battles I should have avoided with posters no longer active here.
But we seem to have lost some good ones , is it our fault?
Pericles takes the task on here, but we seem bogged down on
falsehoods in mud throwing at shadows ideas that some one must be to blame for this crisis.
I miss[ strange he looked for me in my absence] Forrest gump is he still here?
We all should try very hard to get threads started that are fresh and bring posters not turn them away.
I highlight again this thread started because business put an idea up no one intended it was to be law no one should be told your idea is not worth debating but some of the things being said here are stopping debate I am sure many do not return to such threads onceis enough

belly/here is my concern..[bankers control money..[and monetary supply,..its their exclusive franchise,..they create the money..[but dont create the ursury[intrest]..needed to repay the outstanding debt..[thus we have the boom/bust cycle..thus..we have this beast called inflation...all controled by issueing more or less credit..[by the banks]

quote from percules link<<..economists blame the state banking system for contributing to the volatility in the economy,..<<the banking system not be the cause..[they charge us/more of their exclusive franchise[money]..needed to pay the intrest..[than they issue..via lending]

<<..overly/optimistic banks..would issue too many banknotes..which would accelerate..the growth of the economy...However,this would eventually..lead to inflation and an over-extension of credit.>>>it still does..[quote/from] http://odur.let.rug.nl/~usa/E/usbank/bank08.htm

look at the graph,..revealing the boom/bust/value/cycle..because more or less money is issued/defaulted..[BUT because of ursury..it..never can..all be repaid...its created by borrowing it..from the banks..[via the issue body/the fed]

<<A random downturn..and banks..call in loans and contract the money supply.>>..egsactly..the contraction of money supply..results in people unable to finance everyday business..[resulting in banks taking back the pledged/securities..[resulting in people getting broke and asset stripped,..and the banks owning the assets that devalue..[till the whole scam begins again..[and banks lend..new..money

a previous link said..states copntrol monetary supply[wrong],,,the links percules gives is very simplisticly/wrong

<<Sometimes..this led to cases of depositor panic..and further reductions..in the money supply,..which brought the next contraction of economic activity>>>..yes the boom and bust due to ursury..[intrest]..needing others to default..because the ursury hasnt been borrowed into egsistance..to enable all the loans/to get full repayment

realise baNKS..GETTING THE MONEY BACK..is the best security for us[and the banks]..[they still print money at will..[but drop the lie that it is borrowing only/the money WE banked[...its lending..new money..it creates/as an exclusive franchise]...

fed orders the mint to print every cent..[the fed..should allways..insure we ALL..get our money back..but..stop making more of it..than was banked/or backed by real assets..stop/keeping our repayments..as well as seizing our assets

[full repayment of all debt..[and no bankruptsies]..and minimul ursury..[the extra money[for usrury]..being issued by govt not the banking cartel]...like the greenback's isued be the govt of usa

I understand your confusion, oug, this might help.

>>go to the gold fields..finding a nugget creates an asset..[show me where..<<''the..creation/finding..of the asset created a liability''>>]<<

You take your nugget to a Bank, and a couple of different things could occur.

Scenario 1: You put the nugget in the Bank vault, and they give you a ticket that identifies the safe deposit box.

No value has changed hands at this point. Your nugget could be pyrites, or - as far as the Bank is concerned - it could be your sandwiches. No asset has been recognized. If it is gold, it is potentially valuable, but that value has not yet come into existence.

The Bank's books are untouched. They have merely issued a ticket.

Scenario 2. We are in a gold standard economy, so the weight of the gold determines its value. The Bank weighs the gold, tells you it is worth $1,000, and you can then do a couple of things.

You can sell the Bank the gold. Or you can deposit it with them at the value stated.

If you sell it to them, you get $1,000. The Bank registers the value of your nugget as $1,000 asset, and decreases its store of cash - another asset - by exactly the same amount. Their balance sheet does not change, as value has been exchanged for value.

Are you with me? Good. Because this is the interesting bit.

You deposit the nugget, on the basis that the Bank can use its value, in exchange for interest. You can withdraw your $1,000 at any time, or - because we are on the gold standard - demand $1,000 in gold at any time.

Note that you can't get your exact nugget back, because you have allowed the Bank to use its value.

The Bank registers an asset of $1,000, and simultaneously a liability of $1,000, because they have to recognize their obligation to pay you back any time you like.

Once again, their balance sheet remains in balance, with $1,000 added to each side of the ledger.

I hope this helps.