The magic of loaning into existence

Growth is an indicator of a robust economic system. Consumer spending will always stimulate growth. Somehow consumers were not invited to the economic recovery party. Consumer are not spending because banks are not lending their bailout and stimulus monies. This money is being used to prop up banks balance sheets. Consumer confidence has not returned to a point where taxpayers are comfortable about their financial future. Plus there is no equity left in their homes that can be used to burrow money. Institutions that supply credit cards have jacked up interest rates. It is the tax paying consumer who is the engine to any economic recovery. Yet consumer credit is spiraling down into negative territory.

Now here is where real magic is performed. Taxpayers through the magic of Federal Reserve and Federal Government have become the growth engine of last resort. Government is barrowing money from the Fed. Federal Reserve is buying debt from the government. Neither institution has the reserves, capital or collateral to make such loans but by the income taxes of taxpayers. The Fed simply performs an accounting trick and loans money that it does not have. Paper stenciled Federal Reserve Note rolls of the printing press. In other words they promise to give the taxpayer more paper promissory notes when taxpayers try to collect a dollar

Now is the time for taxpayers to liberate their captured Federal Government from psychological shackles of an International Financial Cartel (IFC). Taxpayers must sacrifice their congressional representatives for the preservation of the political structure of the country. It is time to throw all captured incumbent politician out of congress. Congress has become infected with a corrupting virus. Taxpayers do not have an antidote or vaccine to immunized members of congress from this contagious pandemic. The only cure is an emergency quarantine of all political representatives. This is done by voting the infected out of political office.

Loaning into existence must exercise fiduciary guide lines, rules and barriers. Taxpayers must prevent congress from spending quadrillions of dollars trying to jump start the economy. Compounding interest on a growing debt will eventually lead to a quadrillion dollar debt. Exponential growth of the supply of money will debauch all fiat currency. Debauch US dollars is one reason why nations talk of a new global currency. By the way, stacking $23 trillion dollars on top of each other will reach a height of around 1,380 miles into space.

When the Federal Reserve loans money into existence it should only accept physical assets such as commodities as collateral in exchange for credit. Accepting toxic assets which are over valued, fraudulent and non existent in exchange for treasuries only promotes the ponzie scheme.

Legislation has been dismantled, reversed and repelled by orders given to a captured federal government. These political prisoners of the financial crisis are at the mercy of the IFC. Regulated and monitored institutions should not be allowed to utilize non-approved alternative trading systems. Passing laws are useless if enforcement of rules is prohibited. Unless there are investigations, hefty fines and jail time for those who violate the rule of law, it is a useless act of hyperbole.


Please give what you can.

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