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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: UncleBigs who wrote (73198)	10/30/2006 1:59:24 PM
From: orkrious	Read Replies (1) \| Respond to of 110194

Mr. Griffins appears to not even understand the basic concept that the Fed gives all interest earned on government securities back to the US treasury after subtracting costs. I suspect there isn't a whole lot that he doesn't understand. He says over and over that the Fed creates money out of thin air and then charges US taxpayers for loans Say that again? He talks repeatedly about creating money out of thin air. He also talks about loans to other countries that don't get paid back that the US taxpayers get stuck with. His whole argument is that the Fed must inflate or die. Inflation screws the taxpayers. He posits that interest earned on money created out of thin air helps the banks more than anyone.

To: UncleBigs who wrote (73198)	10/30/2006 4:14:27 PM
From: bart13	Read Replies (1) \| Respond to of 110194

... the basic concept that the Fed gives all interest earned on government securities back to the US treasury after subtracting costs. Technically true, but in practice for at least the last 7 years and likely a lot more, it has made no difference. The Fed's costs (plus the mandated 6% profit) have been higher than what was earned - whether Enron style accounting was used or not. In other words, there is no indication that any significant payments have been made.