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View Full Version : It Ain't Medicare and SS That Will Bring Us Down


Rohirrim
07-28-2014, 10:53 AM
Limited to her tools, there probably is no great answer. All the king’s horses and all the king’s men could not rein in the growth of the shadow banking system, despite the 828-page Dodd-Frank Act. Instead, the derivatives pyramid has continued to explode under its watch, to a notional value now estimated to be as high as $2 quadrillion.

At one time, manipulating interest rates was the Fed’s stock in trade for managing the money supply; but that tool too has lost its cutting edge. Rates are now at zero, as low as they can go – unless they go negative, meaning the bank charges the depositor interest rather than the reverse. That desperate idea is actually being discussed. Meanwhile, rates are unlikely to be raised any time soon. On July 23rd, Bloomberg reported that the Fed could keep rates at zero through 2015.

One reason rates are unlikely to be raised is that they would make the interest tab on the burgeoning federal debt something taxpayers could not support. According to the Treasury’s website, taxpayers pay about $400 billion a year in interest on the federal debt, just as they did in 2006—although the debt has nearly doubled, from $9 trillion to over $16 trillion. The total interest is kept low by extremely low interest rates.

Worse, raising interest rates could implode the monster derivatives scheme. Michael Snyder observes that the biggest banks have written over $400 trillion in interest rate derivatives contracts, betting that interest rates will not shoot up. If they do, it will be the equivalent of an insurance company writing trillions of dollars in life insurance contracts and having all the insureds die at once. The banks would quickly become insolvent. And it will be our deposits that get confiscated to recapitalize them, under the new “bail in” scheme approved by Janet Yellen as one of the Fed’s more promising tools (called “resolution planning” in Fed-speak).

As Max Keiser observes, “You can’t taper a Ponzi scheme.” You can only turn off the tap and let it collapse, or watch the parasite consume its food source and perish of its own accord. http://www.truthdig.com/report/item/you_cant_taper_a_ponzi_scheme_time_to_reboot_20140 727

Rohirrim
07-28-2014, 10:58 AM
And since crony capitalism is our form of government, nobody can do anything about this but stand by and watch it all go over the cliff. Enjoy! :wave:

Rohirrim
07-28-2014, 11:13 AM
BTW, amazing how much Clinton had to do with this: http://www.pogo.org/blog/2014/04/how-the-clinton-team-thwarted-effort-deregulate-derivatives.html

B-Large
07-28-2014, 12:19 PM
The framers of the founding documents saw a future where large, extensive over powerful government would bring on more pain that it would be prosperity.

I wonder if they ever considered Quadrillions in their discussions?

L.A. BRONCOS FAN
07-28-2014, 01:08 PM
The framers of the founding documents saw a future where large, extensive over powerful government would bring on more pain that it would be prosperity.

I wonder if they ever considered Quadrillions in their discussions?

The government has no power of its own - it's merely a tool of multinational corporations and Wall Street.

B-Large
07-28-2014, 01:50 PM
The government has no power of its own - it's merely a tool of multinational corporations and Wall Street.

By your very definition it is extremely powerful. Think of a government so small in scope and influence over inumerated duties constitutionally that it could not sway favor to entities like Banks, Investors or Large Conglomerates.

Tax Code- Power
Regulatory Might- Power
Federal Reserve- Power
IRS- Power

Its frightening.

Arkie
07-28-2014, 03:13 PM
Once the Corporations stole that tool from the people, they rewrote the laws in their favor. Now it's too powerful to take back. How do you fight back against big money without shedding some blood?

L.A. BRONCOS FAN
07-28-2014, 06:08 PM
By your very definition it is extremely powerful.

Only if you fail to see the "man behind the curtain."

nyuk nyuk
07-28-2014, 09:30 PM
BTW, amazing how much Clinton had to do with this: http://www.pogo.org/blog/2014/04/how-the-clinton-team-thwarted-effort-deregulate-derivatives.html

It's only amazing if you believe Democrat lies about how they're interested in helping the little people.

Their pushing amnesty says otherwise.

L.A. BRONCOS FAN
07-29-2014, 09:45 AM
It's only amazing if you believe Democrat lies about how they're interested in helping the little people.

Their pushing amnesty says otherwise.

I guess you didn't get the memo: Clinton was a DINO for the most part (although the "little people" certainly fared better on his watch than during the GeeDubya misadministration.)

Furthermore, it's ironic how ditto monkeys like you have always given the GOP-controlled Congress all the credit for Clinton's successes while blaming the prez exclusively for the failures.

Your credibility, therefore, is understandably null and void. Ha!

nyuk nyuk
07-29-2014, 10:39 AM
I guess you didn't get the memo: Clinton was a DINO for the most part (although the "little people" certainly fared better on his watch than during the GeeDubya misadministration.)

Furthermore, it's ironic how ditto monkeys like you have always given the GOP-controlled Congress all the credit for Clinton's successes while blaming the prez exclusively for the failures.

Your credibility, therefore, is understandably null and void. Ha!

Back when I was extremely liberal, I believed the common canard that the Democrats protect the little people. Thus, I had full faith Bill Clinton would block the Welfare Reform Act. Suffice it to say, I was shocked and had such a deep sense of anger and betrayal that he signed it that I quit the Democratic Party then and there.

On top of this, multiple government studies including but not limited to the Barbara Jordan Immigration Commission ruled that 1) illegal aliens are taking jobs away and lowering the market wages for unskilled American laborers, and 2) too many legal immigrants are coming which are also lowering market wages for unskilled American laborers -- many of which by the way are black.

But hey let's keep repeating the tired old mantra of "Democrats are for the working poor" crap while Bill Clinton signs NAFTA, Obama extends and expands the Patriot Act (note how Democrats quit bitching about the evils of the Patriot Act beginning in early 2009) and pushes for even more amnesty, shall we?

It's really too bad you don't know the difference between the historical behaviors of a political party with its actions which are anti-US worker.

nyuk nyuk
07-29-2014, 10:40 AM
The government has no power of its own - it's merely a tool of multinational corporations and Wall Street.

Thank you Mr. Marx.

Rohirrim
07-29-2014, 12:54 PM
Back when I was extremely liberal, I believed the common canard that the Democrats protect the little people. Thus, I had full faith Bill Clinton would block the Welfare Reform Act. Suffice it to say, I was shocked and had such a deep sense of anger and betrayal that he signed it that I quit the Democratic Party then and there.

On top of this, multiple government studies including but not limited to the Barbara Jordan Immigration Commission ruled that 1) illegal aliens are taking jobs away and lowering the market wages for unskilled American laborers, and 2) too many legal immigrants are coming which are also lowering market wages for unskilled American laborers -- many of which by the way are black.

But hey let's keep repeating the tired old mantra of "Democrats are for the working poor" crap while Bill Clinton signs NAFTA, Obama extends and expands the Patriot Act (note how Democrats quit b****ing about the evils of the Patriot Act beginning in early 2009) and pushes for even more amnesty, shall we?

It's really too bad you don't know the difference between the historical behaviors of a political party with its actions which are anti-US worker.

This is not an immigration thread. Feel free to start one.