Title: Where is the Federal Reserve Taking the American Economy, and Why?
Author: Andrew M Molchan
Date: Tue October 9th, 2012
Oct 9th 2012. ANDY'S UNPOPULAR INSIGHTS. What do we Do about America already Being Balance Sheet Bankrupt?
All of America's total DEBTS for everything, both public and private are about $55 Trillion Dollars. (a few reputable economics say it's already above $75 Trillion.) Whatever, it's all the same, American is Balance Sheet Bankrupt.
Some banking idiots will say, "But one person's debt is another person's asset so it evens out?"
WRONG. Debt only "evens out" on the Real World balance sheet if the Debt is repayable. Most of America's Debt will NEVER be repaid. Most of American's long term DEBTS (including its T-Bonds) are dog crap on the sidewalk.
To REPAY A DEBT you have to Produce with Work MORE than you Consume. The biggest joke in America is expecting that to happen anytime soon. At 10% profit how much "product/work" do you need to pay back $75 Trillion Dollars of Debt? It's $750 Trillion dollars gross product/work. That's 18 times the Total Gross Product of the Total World economy.Or, fifty (50) times America's total Gross National Product. Call me crazy, but I view the CONTINUED massive growth of American Debt as already a problem.
In America, over the next 10 to 20 years, America's "Assets" of Debt are going to take a $20 to $30 Trillion Dollar DOWNGRADE.
Everyone knows of a house that in year 2005 was "worth" $500,000, and now in 2012 the same house is worth $200,000. The FED faggots have America on the Bigger road to a Downgrade that will lower the value of EVERYTHING IN AMERICA. There will be a BIG downgrade in American's standard of living that will deeply hurt the already poor.
I can hear 65% of all of the Congressmen in Washington DC saying, "No problem, we'll just have the FED faggots create $25 Trillion Dollars of Queer Money and America's Balance Sheet will balance. We can have our welfare for almost everyone, our endless wars, and our butter too."
Yes, FED queer money can "balance" the balance sheet. THAT'S EXACTLY WHAT IS HAPPENING RIGHT NOW. Yes, the FED's queer money CAN cocaine up the Stock Market. That's what's happening right now.
However, what Congress and the Kramer clowns of America see as the FED faggot SOLUTION, I see as the problem. One of us is wrong.
A grand strategy question is, "Can all of this Bernie Madoff accounting, and another $25 Trillion queer dollar debt work for the next 10 to 20 years?" Where is the "Red Line" on the US dollar collapsing? Where is the "Red Line" on the world looking at America's economic mess and saying, "We've had it!"
A grand strategy question is, "All of the FED's queer money up to now has made it possible for Washington DC to keep kicking all of the cans down the road. There have been NO fundamental, positive, changes coming out of Washington DC in DECADES. The only thing Washington DC has done for 25 years is take proven failures and make them bigger with borrowed money. Exactly and specifically WHY will America be any different 10 years from now, other than having $25 Trillion dollars MORE Federal Government Debt on its books?"
The Federal Reserve was created in 1913 to manufacturer LIQUIDITY during the periodic Liquidity droughts that DO happen. That was a Excellent plan, and definitely needed both then, now and in the future. However, in modern times the FED transformed itself into a collection of faggots providing queer money cocaine to Congress and the White House so the Government could continue to live in its drug dreamland, and the Gordon Gekkos on Wall Street could continue to make Billions via a queer money cocaine driven stock market.
In the Liquidity Drought of 2008 the FED did Create Liquidity and it DID Work to end the 2008 Liquidity crises. Then the FED turned into Hitler who said, "If I can take Czechoslovakia then I can take the World." The FED faggots became the biggest victims of their owe propaganda and lies. They said, "If we can end the Liquidity Crises then we can manage the total American economy." It all ended badly for the fat head followers of Hitler, and I can guarantee you that it will eventually end very badly for the fat head followers of the FED faggots.