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

To: Sr K who wrote (122188)	10/2/2012 7:13:36 PM
From: RetiredNow	Read Replies (1) \| Respond to of 149317

If you buy that line, then I have a bridge to sell you. Let me try for some common sense. Have you ever invested in bonds directly? I have. One bond I bought years ago had an outstanding yield, something like 9%. I was paid interest on that bond for 2 years, then the company who sold the bond defaulted. The market value of that bond plummeted. It turned out the company wasn't cash flowing enough to pay interest. The fact is the Fed has bought up a massive amount of toxic assets from the banks. They bought those assets at full value, not at discounted marked to market value. So yes, they may receive interest payments on those bonds, but many of them will default and the gov't will take massive losses. As far as Treasury securities go, the interest payments they remit back to the Treasury as a profit will be in devalued dollars, since the Fed themselves are the cause of devaluation. What you need to get through your head is that the Fed is playing a giant shell game and Ponzi scheme all wrapped into one. The end goal is to bleed the American people slowly and in complex ways so they don't understand they are being bled to pay for the Congress' profligacy and the failed risk taking of the big banks. The other, more honest way to accomplish the same thing would have been to tell the American people that we need to pay for the $1.3 trillion in deficits per year with higher taxes and they need another $500B per year to cover the recapitalization of the banks. Then the 150M working Americans would each pay $12,000 extra in taxes per year and we could all decide whether we want to keep these politicians in office any longer or whether we'd want politicians in place who would find a way to wind down the insolvent banks and decrease spending, so that we would not have to pay for the sins of others. That is what you all need to start thinking about. These people are robbing us blind and you are all happily handing them your money.