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Change?
by HellFire
 Change?
Jun 09, 2011 | 548 views | 2 2 comments | 17 17 recommendations | email to a friend | print | permalink
June 30, 2011, remember that date. 
The Fed’s QE2, quantitative easing II, the printing press have been busy printing billons in greenbacks. In recent months, the Fed bought $600 billion in treasury bonds, that’s unsecured government debt if you did not know. 
This follows QE1 that ran from March 2009 to March 2010 and consisted of $1.75 Trillion purchases of treasury bonds, government issued debt.  
The fed’s debt is 400% higher than the GDP.  The printing press has kept the economy propped up by buying treasury bonds, not the GDP. No denying it, no matter how much spin the government puts on it. 
What is going to happen when and if the government stops printing money?  Who knows, America has never been in such danger of default since the Civil War. 
Some suggest a temporary support of the dollar, which would hurt commodities sending most investors and speculators into cash and bonds as the false appearance of goods costing less would set in. 
If the debt limit is not extended this would cause a default in the treasury bonds.  Now how will the economy survive, by the lies and deceit of the government for the last few years?  The US dollar will no longer be the worlds currency.
The piper is nearing the door. United States debt holders will have only one reaction and that is the knowledge they hold a debt that will never be paid.
By the way, this is similar to what recently happened to the countries economies that failed.
Can’t happen in America you say. Whoever thought possible investments banks failing, GM going bankrupt, Fannie May - Freddie Mac liquidation, AIG failure, hundreds of banks being seized, million of homes in foreclosure and the true unemployment rate over 20%?
Remember that June 30, 2011 the Fed will stop buying Treasury Bonds. The economy will have to stand without the government lies and a 400% deficit to the GDP indicator.
More evidence of looming disaster is one of the wealthiest and proven investment entities,  the University of Texas endowment fund buying 1 billion in physical gold bars and Mexico buying 100 tons of gold with US dollars. 
Remember whose policies have landed America where we are. 
So how do you like the “change”  that now threatens the American way of life?


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HellFire
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June 10, 2011
Solution, my solution as of this time would be intolerable. In time it would be perfectly acceptable and is as old as nature itself. Hiding ones head in the sand will not dissuade the beast.

I have as of yet never encountered one person with a net worth of which you claim protest, condemn and have the point of view shared the blue collar working class.

Pay the unemployed you state, with what, IOU’s because that’s whats on the horizon. Maybe you can set up some kind of trickle down from your wealth.

Yes the vote for “change” is not what was expected is it?

The democratic political machine seems to be running out of fuel with the great deceiver at the wheel.
laselva
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June 10, 2011
Hellfire-

I wondered where you've been and what you've been up to. Doing your homework I see. All legitimate points and pretty scary too, but like Y2K, the Rapture, and the War on Terrorism, those who run things in this country won't let any of this happen...to them.

I'm of course talking about the wealthy 10% who, like J.P. Morgan at the turn of the 20th Century, bail out the country and might have to kick down some money - in this case in the form of higher taxes - to alleviate the mess they've created. Wall Street, the Wars, the inability of Congress to pass anything and more all lead to the doors of the lobbyists and lawyers for the super rich.

For the rest of America - guess what? You've been replaced by automation. Count on a permanent 10-20% unemployment rate because your jobs have been eliminated. And I don't mean shipped overseas. I presently do the work 10 people used to do - and I do it with ease because I'm digital. If you're a machinist-your job is gone. A baker - replaced by automation. Everything has been affected and yet, we still think we can see full employment someday.

We've had a phony service economy for close to thirty years, and now there's no more homes to build, cabinets to install or golf clubs to buy.

What are we going to do with our permanently unemployed? Pay them, I say. Pay them with government money to work part-time in private industry until full-time work can be found.

Slightly socialistic, but that's what works when Capitalism fails.

Anyway, that's just my opinion. You made some excellent points, but other than buying gold, what's your solution?