The American economy has stalled yet again and the US Federal Reserve is about to create another $ trillion in their computers,get the US Govt to issue bonds( ie IOU's to that amount) and pay it back in interest.Last year the Fed created $2 trillion for no result.

I call it counterfeiting because when any institution creates money from nothing,without a commensurate increase in production,it devalues the wealth of everyone in that community.

Last yr much of the money went into bailing out a financial system that was errant and dysfunctional."Too big to fail".There exists no such corporate entity.Put them into bankruptcy re-organisation.Obama, Congress and the Fed have sacrificed the US economy for the expediency of their own immediate avarice and power.

When countries around the world begin to divest themselves of a collapsing US $,there'll be no stopping the rush for the exists.Once the derivative market begins to unravel,$ trillions will enter the real economy thus causing hyper-inflation.

The way out for the US people is to rid themselves of the US Fed,begin to create their own debt free money via Govt Banks,and re-vitalise their manufacturing industry.

Pres Andrew Jackson and Abraham Lincoln created their own Govt debt free currency.Thomas Jefferson wanted to and JFK had signed executive order No.11110 that returned once again the power of the US Govt to issue currency just before he died.That order was recinded by LBJ.

It has been a success in the past so long as Govt is constrained by the parameters of monetary discipline.

Didn't even have to look to see it was you Arjay :) poor boy.

Ur barking up the wrong tree mate... start naming people.

Strong?
Gore?
Soros?

Are they 'good guys' with white hats in your vast conspiracy theory or 'bad guys' ?

There's something about Arjay and govt; run banks. Thats socialism.
When USA turn the corner that play money will have to be withdrawn a bit at a time.
If our govt; suggested a govt run bank, There would be screemes of communism, never mind the upside.

579 It is not socialism.The new money for GDP + inflation of $ 91 billion pa belongs to all Australians not just a select group of private banks.Why do you think we are in so much debt?

Eventually under this system the total amount of money in the economy will equal the amount of debt.It is called slavery.

I said 12 mths ago that bailing out a corrupt dyfuntional finance system would not work and now the chickens have come home to roost.

Times will only get tougher as interest rates rise with the inevitable inflation of the Fed counterfeiting our currencies,yet very few have the intellect to realise what is actually happening.Very sad indeed.

*the chickens have come home to roost.*

The chickens are doing fine Arjay, clucking away,
eating their food and laying eggs. They do indeed
come home to roost each night, that is normal
chicken behaviour, if you were not aware of it :)

As to the American Dollar, I remind you that you claimed
that the US could never repay its debt, which is in US Dollars.
I also remind you that SE Asia has manipulated currencies for
years, to try and gain a trade advantage. They ignored the
free market, China in particular.

So now they have vaults full of $! Do you still think that
America can't repay the $ that it owes them?