The "Penny Plan"

NoDrama said:

Yep we need to be in debt to $16.7 trillion ASAP. Sure. You guys crack me up. These things always end in default, it is the plan. We can print all the money we need.

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londonfog said:

Nodrama are you joking ??? I think you know that we can't just go print money like that..It would only devalue the dollar and what good ia a dollar thats not worth a dollar..Remember Zimbabwe..well that would happen to the American dollar if we just printed "all the money that we need"..we would have the Zimbabwe dollar..but why do I think you knew this and was only joking and being sarcastic

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NoDrama said:

I was actually being facetious. Sarcasm is a remark intended to hurt another person.

The USA has no ability to print money, our government cannot do it, they have zero authority. The Federal Reserve prints money, and they will print and print and print. It makes no difference what the politicians do or say, the Federal reserves decisions cannot be overruled by anyone. That is the law. The USA Govt will continue to borrow at ever higher costs to the tax payer. They will try so much stimulus and NONE of it will help. In fact the inflation that will come of it will erode peoples savings to such an extent as to make them valueless. The government will probably raid all IRA's and 401K's and force you into purchasing treasuries, so you can help finance your own countries debt. Hey the US dollar has only lost 60% of its purchasing power in only a decade. What a deal, and now they work on the 40%. It might take a while to get to Zimbabwe levels, after all we have the reserve currency and ALL other countries must hoard our dollars in the form of treasuries so that they may buy oil on the open market. OPEC only sells oil for USA dollars, nothing else. This hegemony in the energy market gives the US Dollar vast staying power and a buffer against horrid inflation. The clock is ticking, how much longer until a black swan appears?

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NoDrama said:

I was actually being facetious. Sarcasm is a remark intended to hurt another person.

The USA has no ability to print money, our government cannot do it, they have zero authority. The Federal Reserve prints money, and they will print and print and print. It makes no difference what the politicians do or say, the Federal reserves decisions cannot be overruled by anyone. That is the law. The USA Govt will continue to borrow at ever higher costs to the tax payer. They will try so much stimulus and NONE of it will help. In fact the inflation that will come of it will erode peoples savings to such an extent as to make them valueless. The government will probably raid all IRA's and 401K's and force you into purchasing treasuries, so you can help finance your own countries debt. Hey the US dollar has only lost 60% of its purchasing power in only a decade. What a deal, and now they work on the 40%. It might take a while to get to Zimbabwe levels, after all we have the reserve currency and ALL other countries must hoard our dollars in the form of treasuries so that they may buy oil on the open market. OPEC only sells oil for USA dollars, nothing else. This hegemony in the energy market gives the US Dollar vast staying power and a buffer against horrid inflation. The clock is ticking, how much longer until a black swan appears?

Click to expand...

NoDrama said:

I was actually being facetious. Sarcasm is a remark intended to hurt another person.

The USA has no ability to print money, our government cannot do it, they have zero authority. The Federal Reserve prints money, and they will print and print and print. It makes no difference what the politicians do or say, the Federal reserves decisions cannot be overruled by anyone. That is the law. The USA Govt will continue to borrow at ever higher costs to the tax payer. They will try so much stimulus and NONE of it will help. In fact the inflation that will come of it will erode peoples savings to such an extent as to make them valueless. The government will probably raid all IRA's and 401K's and force you into purchasing treasuries, so you can help finance your own countries debt. Hey the US dollar has only lost 60% of its purchasing power in only a decade. What a deal, and now they work on the 40%. It might take a while to get to Zimbabwe levels, after all we have the reserve currency and ALL other countries must hoard our dollars in the form of treasuries so that they may buy oil on the open market. OPEC only sells oil for USA dollars, nothing else. This hegemony in the energy market gives the US Dollar vast staying power and a buffer against horrid inflation. The clock is ticking, how much longer until a black swan appears?

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redivider said:

first of all,

the FEDERAL RESERVE DOES NOT PRINT MONEY. THE FEDERAL RESERVE AFFECTS MONETARY SUPPLY BY SETTING INTEREST RATES. THE US MINT PRINTS THE MONEY.

THE FEDERAL RESERVE BANK DOES NOT HAVE ANY AUTHORITY WHATSOEVER TO PRINT OR CREATE CURRENCY. THE FED USES THE CURRENCY AUTHORIZED BY THE US GOVERNMENT, RIGHT NOW IT'S CALLED THE US DOLLAR. THE FED AFFECTS MONETARY SUPPLY BY SETTING INTEREST RATES.

PRINTING MONEY IS THE US MINTS JOB.

tell me of one such instance where peoples savings in the US have been eroded to the point they are valueless because of the Feds irresponsible monetary policy. please, just once..... you can't. because it won't happen. because our monetary system is too good.

the us dollar has lost purchasing power because petroleum has gone up so high that more of the money you pay for goods is going to pay for the fuel to get us that good. nothing to do with the monetary policy the fed uses....

horrid inflation... oh god.... go and hide in your bunker please... the rest of us who live in the real world will be happy to go on with our lives without your lunacy....

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OK, as promised, here's my informative answer. The Federal Reserve doesn't "print" money, per se, since most of our currency these days really only exists in computer databases. But the Fed IS responsible for CREATING currency, or more accurately, limiting its creation by lower banks. I will elaborate...

It should be clear that the primary cause of inflation is an increase in the total amount of currency in circulation, which (until recently) was measured by a statistic called M3. But where does the new money come from? I know it seems complicated, but it's really not... let me explain....

There's an old trick called "fractional reserve banking."

Let's say you have a bank, and in your vault you have $1000 from all your depositors. Someone comes in to take out a loan for $10,000. Uh oh! You don't have that amount! Doesn't matter. Under a fractional reserve monetary system, you are allowed to issue credit for, say, 10 times the amount you actually have. This works because all the banks are in agreement to honor one anothers' credit.

So the person wishing to take a loan for $10,000 signs his house away as collateral. His house actually has value. In exchange, you, the banker, issue him a bank credit for $10,000. In the moment he signs his name, $9000 was just created out of THIN AIR. You have just robbed this man, and he is none the wiser because he fails to understand the trick. He has just traded his house for a slip of paper.

Many people think that money is created when printed by the Treasury. This could not be more wrong. Money is created every day, by the banks themselves, as liquid credit.

This is why it holds no value. It's an ongoing scheme to rob the American people of their property, and bury them under insurmountable debt. Between the taxes, the inflation (the devaluing of the dollar which is never accurately reported) and the interest on the debt, we have been made to be slaves to our creditors.

So where does the Fed come in? Well, the Fed determines the Fraction part of the Fractional Reserve System. It is the authority to which all the lower banks refer. It also determines the interest rate on new currency (which the Fed technically LOANS to the Treasury)... but I want to keep my answer short so I won't get into this aspect.

Still confused? Here, watch this documentary:

http://www.neithercorp.us/nforum/serious…

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redivider said:

first of all,

the FEDERAL RESERVE DOES NOT PRINT MONEY. THE FEDERAL RESERVE AFFECTS MONETARY SUPPLY BY SETTING INTEREST RATES. THE US MINT PRINTS THE MONEY.

THE FEDERAL RESERVE BANK DOES NOT HAVE ANY AUTHORITY WHATSOEVER TO PRINT OR CREATE CURRENCY. THE FED USES THE CURRENCY AUTHORIZED BY THE US GOVERNMENT, RIGHT NOW IT'S CALLED THE US DOLLAR. THE FED AFFECTS MONETARY SUPPLY BY SETTING INTEREST RATES.

PRINTING MONEY IS THE US MINTS JOB.

tell me of one such instance where peoples savings in the US have been eroded to the point they are valueless because of the Feds irresponsible monetary policy. please, just once..... you can't. because it won't happen. because our monetary system is too good.

the us dollar has lost purchasing power because petroleum has gone up so high that more of the money you pay for goods is going to pay for the fuel to get us that good. nothing to do with the monetary policy the fed uses....

horrid inflation... oh god.... go and hide in your bunker please... the rest of us who live in the real world will be happy to go on with our lives without your lunacy....

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Charlie Ventura said:

I believe that the coinage act of 1792 is still in effect.

http://www.google.com/url?sa=t&sour...94DDBg&usg=AFQjCNHFjz3SohdbEZpE2eOgIaKwJ9YInQ

Would someone direct me to the nearest U.S. mint so I can have some gold bullion minted into some Gold Eagles?

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Luger187 said:

im watching freedom watch, and this guy has a plan to cut federal spending by 1% every year for 6 years. somehow this will fix the economy by 2019. i havent looked into it yet, but id like to know your thoughts. his name is Connie Mack btw

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NoDrama said:

When we talk about printing money we are talking about check book money too. The actual printed money is only about 3% of TOTAL supply you ignorant fool. The vast majority of Dollars is ones and zeros in a computer somewhere. The MINT cannot print a single physical dollar without the go ahead of the Fed. The dollar cannot exist without someone first going into debt to create it. You cannot refute these facts.

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NoDrama said:

When we talk about printing money we are talking about check book money too. The actual printed money is only about 3% of TOTAL supply you ignorant fool. The vast majority of Dollars is ones and zeros in a computer somewhere. The MINT cannot print a single physical dollar without the go ahead of the Fed. The dollar cannot exist without someone first going into debt to create it. You cannot refute these facts.

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Charlie Ventura said:

See, I believe this will happen also. For those who say the government will never confiscate the IRAs and 401k accounts, tell that to the citizens that had personal gold holdings confiscated, and/or gold payment clauses in their in private contracts cancelled in 1933.

And by the way, the same thing could happen again with gold. The skyrocketing price of gold is a complete embarrassment to the FED and to Keynesians of every stripe.

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redivider said:

oh really?? how did fractional reserve banking work before computers then???

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actual printed money is very close to the overall monetary supply. however, you will NEVER be able to pay off all outstanding debt at any given moment (public AND private) with just the physical monetary supply available at that particular moment.. too much for you???

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US Mint said:

The Bureau of Engraving and Printing (BEP) headquarters is located in Washington, DC. The BEP is responsible for designing and printing U.S. paper currency. There is also a satellite production facility located in Fort Worth, Texas, which began operations in January 1991. The BEP produced approximately 37 million currency notes each day with a face value of about $696 million, and 45 percent of these notes are the $1 denomination. About 95 percent of the currency notes printed each year are used to replace notes that are already in circulation.

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.. this is some of the more theoretical and dare I say poetic parts of financial markets... it's not a glitch in the system, it's how it's designed to work. its all perception of value and opportunity cost.... you perceive gold to have more value than dollars, but that's only because there's somebody somewhere willing to pay you in dollars for your gold. think about it....

the mint doesn't work by itself to just print money. the relationship isn't 'the fed controls the mint'. it's more of a mutually beneficial relationship. the mint benefits from working closely with the fed because each setup and print run costs millions of dollars.. it is in the mints best interest to have a close relationship with the fed, the fed does set interst rates and that affects overall money supply, and it is in the best interest of the fed AND national security to have an official, government backed printer for all notes....

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