Abolish the Federal Reserve/Central banking.

[C-Gold]

Abolish the FED.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><o></o>
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Since the Fed was created in 1913 a dollar has lost 97% of its value through inflation. Inflation is a hidden form of taxation on all. It is used as an instrument to steal money from people right under their noses.<o></o>
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Politicians want to spend money because it buys them votes, allegiances, and gives them credit for "doing something" to fix problems. To spend money, politicians need to get it form somewhere and one way to do that is to raise taxes. Raising taxes is unpopular. A much easier way to raise money is to simply printing more of it. Printing money creates inflation because you have more dollars chasing the same number of goods which by definition would bid up prices. <o></o>
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Inflation allows politicians to get what they want in the short term, and then once the increased prices come along in round two, they can blame others. Politicians are the CAUSE of inflation, but they always blame other people for what they caused. Historically, politicians blame foreigners and bankers.<o></o>
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Foreigners are an easy scapegoat because they are lesser known and they can't vote. Not being able to vote means they can't harm the politician and can't kick them out of office.<o></o>
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Money isn't supposed to work this way. Before people created money (notice that governments never invented money), people used to trade with one another.<o></o>
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One of the early problems with trading, was that you had to mix and match buyers and sellers. If I wanted to trade a cow for some clothes, I had to find a clothes dealer who wanted a cow which takes time in itself. If I wanted to trade a cow for apples, What if I only wanted 1 apple and I didn't want to trade 1 cow for 1 apple when it was really worth 10,000 apples? People around all parts of the world developed money to solve many trading problems.<o></o>
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There were many things that were used as early money around the world. Livestock, gold, silver, bronze, tobacco, Weapons and many other things that had value.<o></o>
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Metals and especially gold seemed to evolve as the worlds money. People started melting and creating their own uniform money, and gold was traded by weight.<o></o>
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Did you ever wonder why they call it the British Pound? The British Pound is short for the Pound Sterling. It is because the pound used to be redeemable for an equivalent value of Sterling SILVER. Instead of walking around with heavy silver in your pocket, people traded the paper, but were able to trade that paper into their local bank for the silver on demand.<o></o>
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In ancient Roman times, money was counted via Scales. If you went to market and wanted to trade goods, merchants had scales. You would place your gold or silver onto the scales. Later people started creating coins and labeling the weights so that they wouldn't have to carry scales around. (1 LB of Gold), (5 pounds of gold) right on the coins. I would also like to point out that tampering with scales was an offense punishable by death in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-comffice:smarttags" /><st1:City w:st="on"><st1lace w:st="on">Rome</st1lace></st1:City>.<o></o>
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Somewhere along the line greedy governments started getting involved in money. In the past, people would take Gold to a shop and have it melted down and labeled ( even with your name on it), but then governments took over the money supply.<o></o>
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The Roman government was famous for debasing their currency. They started shaving the edges off of coins to make more coins, and they started mixing different metals together to debase the currency. These early forms of inflation did NOT fool investors and merchants.<o></o>
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A coin that was shaved off was NOT worth a coin that hadn't been tampered with. A Gold coin with Bronze in it was not worth a pure gold coin. Merchants then started charging more than 1 LB for something they were selling for 1 LB and inflation was born ( due to governments and not merchants). <o></o>
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The government started making laws that merchants had to accept the funny/debased money, and Fiat currency was born. There was back and forth between Merchants and government and the governments continued to debase the currencies and then have the nerve to BLAME the Merchants for the inflation. You literally got to the point where "gold coins" had more Bronze in them than gold making them worth far less than the stated values.<o></o>
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Today we have paper money. It isn't worth anymore than the toilet paper in your bathroom. The only reason a 100 dollar bill is worth more than a 1 dollar bill is because the Government says so. There is no inherent value in that 100 dollar green paper over that 1 dollar green paper. You are trading little green pieces of worthless paper. You used to be able to trade 1 dollar for 1 dollars worth of Gold, but not anymore. No more gold standard in <st1:country-region w:st="on"><st1lace w:st="on">America</st1lace></st1:country-region>. You are literally trading around Green Paper. The good thing about the Gold standard, is that it made it more difficult for the government to print/steal money.
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Even as it is, the government is printing that green paper at an alarming rate. It is hidden taxation, it is theft, and it is bullshit.

Look at what 1 dollar bought in 1913, and look at how little 1 buck goes today. It will only get worse. Trying to fix the system won't work and it isn't the right approach. We have got to simply get rid of the fed.

 

[C-Gold]

Why do you think we are suffering from painful inflation? Why do you think the price of oil, gold, wheat, coal, silver, grains and everything else is going up? Tampering with the system has consequences. I am an investor and I am profiting off this crap.

 

[DarrylParsons]

I agree with all of the above, as do other posters I bet like Tizzy and the Woofster, and likely most Ron Paul supporters as well (of which there are plenty here).

Just curious...are commodities still a bargain, or do you see more of a correction in the works?

 

[tiznow]

tizgloom thinks deflation coming on the near term (next few years as the doom and gloom plays out and eats into global consumption therefore bad for commodities)

but the woofsters, jdogs, etc...will disagree with me on that....

long term i'm right with um......20 year outlook dollar is scroomed to no end

 

[Spytheweb]

Republicans say Dems want to raise taxes, republicans don't because they don't need tax money, the federal reserve prints all they need. That money has to be paid back with interest. So you pay them now or pay them later, with interest.

The fed is not a part of the government. If it were, why would the government charge itself interest on it's own money? Why not print all the interest free money it needs?

Colonial script, money system that worked.

During a visit to Britain in 1763, The Bank of England asked Benjamin Franklin how he would account for the new found prosperity in the colonies. Franklin replied.

"That is simple. In the colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers.

In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one."
Benjamin Franklin [SIZE=-2]¹[/SIZE]

America had learned that the people's confidence in the currency was all they needed, and they could be free of borrowing debts. That would mean being free of the Bank of England.

In Response the world's most powerful independent bank used its influence on the British parliament to press for the passing of the Currency Act of 1764.

This act made it illegal for the colonies to print their own money, and forced them to pay all future taxes to Britain in silver or gold.

Here is what Franklin said after that.

"In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed."
Benjamin Franklin

 

[DarrylParsons]

scroomed? Is that a cross between screwed and tizgloomed?

 

[tiznow]

y combo of screwed and gloom LOL

 

[Romanowski]

lol at spytheweb quote

 

[tiznow]

this is a good read DP

although i think he's wrong on gold

gold did fine during the deflationary 30s

also I.O.U.S.A. the movie comes out this week about the longer term issues of our long term debt/entitlement program problems

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The Incredibly Shrinking Dollar? Think Again ...
Greenback Surges, Euro Shrivels

By MIKE WHITNEY

The greenback has surged 6 per cent in the last month alone. The euro, on the other hand, has been caught in the same recessionary downdraft that is buffeting a number of other currencies, all of which are unwinding at the same time although unevenly. Currency markets don't move in straight lines, but don't be fooled, most paper money is steadily losing value due to the unprecedented expansion of credit. Investors are moving to cash and hunkering down; the stock and bond markets are just too risky and real estate is in a shambles. As the equity bubble continues to lose gas, balance sheets will have to be mended and lending will slow to a crawl. At present, Germany's slowdown and Spain's housing crash are drawing most of the attention but, the spotlight is shifting fast. Next week it could be shining down on the America's failing banking system or poor corporate-earnings reports in the US. Then it will be the dollar marching off to the gallows.

Europe's troubles have put to rest to idea that other countries can "decouple" from the US and prosper without the help of the US consumer. That might be true in the long-term, but falling demand is already visible everywhere. Retail and auto sales are taking a thumping and 2009 is shaping up to be even tougher. It's looking more and more like the Europeon Central Bank was faked-out by the early signs of inflation and missed the deflationary sledgehammer that was about to come crashing down. It was a catastrophic blunder by European Central Bank (ECB) chief Jean Claude Trichet and it could cost him his job. Raising interest rates while sliding into the jaws of recession is madness. Now all of Europe is headed for a hard landing and there's no way to soften the blow. The ECB doesn't have the same tools as the Fed; Trichet can't simply backstop the whole system with green paper and T-Bills like Bernanke. He can either slash rates or sit on his hands and hope for the best.

Deficits are expected to soar in the European south (particularly Spain, Greece and Italy) while growth in the industrial north, e.g., Germany, will continue to shrink. Also, Spain, Ireland and England are undergoing the biggest housing meltdown in history after indulging in the same mortgage hanky-panky that took place in the US. Billions of dollars of low interest loans, that were issued to unqualified mortgage applicants, are gumming up the whole system and sending foreclosures skyrocketing. Now the losses have to be written down and thousands of unoccupied houses sold at auction.

The perception that the dollar is getting stronger is mostly an illusion. Deflation is "dollar positive" because investors who flee from toxic assets naturally move into cash. But that doesn't mean they have faith in the dollar; far from it. The fundamentals for the greenback get worse by the day. Fiscal and trade deficits are out of control, the national debt is tipping $10 trillion, foreign investment is drying up, and confidence in US leadership has never been lower. Paper currency is a country's IOU; and foreign central banks are wary of taking checks from a country that no longer wins wars or has the capacity to pay off its debts. That's why, for the first time, there's serious talk about the US losing its triple A rating on government debt. And it could happen sooner than anyone thinks. Every time the Fed uses the dollar to prop up the faltering banking system or provide limitless capital for defunct GSEs like Fannie Mae and Freddie Mac, the dollar comes under greater and greater pressure.

As the US housing market continues to collapse, trillions of dollars in equity and credit are disappearing in a deflationary bonfire. When a $400,000 home--with no down payment and negative equity--goes into foreclosure; $400,000 vanishes from the digital-pool of credit and has to be written down as a loss. So far, much of the losses have not yet been accounted for because the banks are using their own internal models for determining the value of their downgraded assets. Two weeks ago, Merrill Lynch sold $30 billion of mortgage-backed junk for 20 cents on the dollar. But they also financed the deal, which means that they really only got 5 cents on the dollar! This reflects the true "market value" of these assets. They are virtually worthless. Naturally, Merrill's sale sent tremors through Wall Street where banks and other financial institutions are sitting on trillions of dollars of this garbage marking it down at a few percentage points every reporting period rather than doing what Merrill did and putting it all behind them. As a result, the banks have less capital to lend, which means economic activity will continue to slow and the country will go into a deep recession. The point is, that the Federal Reserve now holds about $400 billion of this junk-paper on their balance sheets and the US Treasury is planning to take on hundreds of billions more (perhaps as mush as $800 billion more under the new legislation!) to prop up Fannie Mae and Freddie Mac. The Bush administration is using the credibility of the dollar as collateral in its plan to bail out the most reckless, high-stakes Wall Street gamblers.

So, how does this affect the dollar?

The nation's debts are entirely balanced atop its currency. The greenback is like a circus strongman holding a barbell precariously over his head; as the weight is increased, the sweat begins to appear on his brow while the veins in his neck and forehead begin to bulge. Finally, the knees buckle and the and the over-matched weightlifter crashes to the canvas in a heap. That's the future of the dollar in a nutshell.

But how does that explain the sudden fall in gold prices; after all, gold is the logical alternative to paper money, right?

Wrong. Gold is "real money" alright, but it's also a commodity. And when commodities are smashed by a deflationary tidal wave--as they have been the last few weeks-- gold will follow them into the basement. In truth, gold has taken an even worse pasting than the euro; free-falling from $980 per ounce in mid-July to $786 at Friday's market close. $194 in a month.

When the economy is in the grips of deflation; all asset-classes get dragged down, gold included. Many of the hedge funds and other big market players are selling their gold positions recognizing that the commodities boom is over and it's time to move on. That doesn't mean that gold won't rebound sharply when Bernanke slashes rates or if Bush blows up some new part of the globe. It simply means that in the short term, "cash is king". Pension funds and hedge funds will continue to deleverage to reduce their credit exposure to put themselves in a better position to roll over their debt. That means that gold's slide could last a while. This doesn't look like a conspiracy to me, but I have my tin-foil hat in hand just in case.

No one knows where the bottom is for gold, but one thing is certain; its future prospects are a lot brighter than the dollar's. The Bush administration has yet to demonstrate that it can enforce Dollar Hegemony via military intervention. That is a very big deal indeed. If the dollar isn't backed by Middle East oil, then the $6 trillion stockpile of dollars and dollar-denominated assets that are languishing in foreign central banks and sovereign wealth funds, will continue to dwindle until the dollar's position as "reserve currency" comes to an end.

That's one doomsday scenario, but there is another one, too. If Bernanke and Paulson continue to pile all of the nation's credit problems (bad paper) on top of the greenback; foreign capital will head for the exits and the dollar will crash. Either way, the dollar's troubles are mounting and something's got to give.

 

[C-Gold]

This isn't new stuff. Governments have been doing this crap since the Romans. In fact the roman empire fell because of the debasement of the currency, taxation, regulation, government programs, quotas etc.

This is NOT what the founders of our country intended on creating.

 

[C-Gold]

Who are the Libertarians or Ron Paul supporters on this site?

I think C-hovers only had 1.

 

[tiznow]

yup got that right on debasement

all we got left now are copper, zinc, and nickel

in pennies and nickels and shit

got rid of silver a while back

romans did the same exact thing to massively expand their empire which eventually collapsed

 

[eek.]

Abolish the FED.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><o></o>
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Since the Fed was created in 1913 a dollar has lost 97% of its value through inflation.

...and yet us little people are all so RICH compared to 100 years ago???

It must be the magic fairies who gave us our money. Yup.
:drink:

 

[tiznow]

y the invention of the automobile, assembly line, airplane, computer, list goes on and on

all that occured solely due to money moving more and more towards fiat money

we have more wealth because we made more cool shit along the way

you crack me up eekster

 

[eek.]

The cracking up is mutual my little bearcub friend.

Until 1940 most people didn't have a pot to piss in, even though 12 to 18 hour days were common from around 1850 with the industrial revolution.

The ONE big change from 1945 onwards?

Fiat money.


And by A_M_A_Zing coincidence, the little peepul started accumulating some wealth around the same time.

Yup.
It woz them Magic fairies wot gone and dun it.

 

[tiznow]

well talk to me in 20 or 30 years if you still alive and kicking LOL

think your love for fiat will be changed by than

may have worked out good for you old timers giving you a little more near term fun than you otherwise would

like our current boom of fun relentless consumption time of the past 5 years was funded on unsustainable debt that is now about to implode

long term its screwing the normal joe over

europe heading for a deep recession too my friend....lot of housing bubbles and lots of deficits to deal with over there

 

[gtc08]

fed runs the country, needs to be destroyed. fed is the front for the illuminati

 

[Romanowski]

lol

 

[tiznow]

as usual romo pops up anytime that abolishing the fed comes up

:howdy: ex ron paul supporter who "changed his mind" :nohead:

 

[Romanowski]

I dont laugh at you guys persay

I do however chuckle at some of the reasoning behind your position

i.e Illumanati