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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Land Shark who wrote (113519)	5/16/2012 6:02:27 AM
From: RetiredNow	Respond to of 149317

Money is debt. Debt creation in this country is how the Federal Reserve creates money. Too much money/debt creates systemic risk, when it is not contained to a growth rate slower than the growth rate of the economy. Our Federal Reserve and Congress have been creating debt much much faster than our economic growth for quite awhile now. It's gotten to the point that much of our economy is now built on a house of cards and it can easily be toppled. The very structure of our economy is now fraught with risk. We are literally kept afloat on a mountain of debt. That's what debt has to do with both the last financial crisis and the ones that will most surely hit in the future. There's only one way out. We need to allow deleveraging to take place and break up the big banks and remove their executives from any positions of influence over the Federal Reserve. Utlimately, we're going to have to default on our debt either through inflation over a long enough period of time or through refusal to pay it and moving to a more sound currency policy. Either way will be painful for the US tax payer. There's no escaping it. My guess is that we inflate it away, which means the tax payer will pay the debt back with a much devalued currency, which means our standard of living will be eaten away to pay for the excesses of the big banks.