Why not just monetize the debt?

[Allan from Fallbrook]

Ignorance truly is bliss.

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple that the mind is repelled”. John Kenneth Galbraith

“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered”. Thomas Jefferson in a letter to Albert Gallatin, Secretary of the Treasury, 1802.

“I went looking for trouble, and I found it”. Quote from Charles Ponzi, after being convicted of fraud.

“There’s a sucker born every minute”. Often attributed to P.T. Barnum.

[blahblahblah]

Great quotes Allan. Here are a couple more of my favorites on the subject, both from men much smarter than myself:

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

— Henry Ford

“Permit me to issue and control the money of a nation, and I care not who makes its laws.”

— Mayer Amschel Rothschild

[Leon del Norte]

sreeb is right here. This just effectively devalues the dollar globally. It is already happening see
https://www.google.com/finance?q=USDCHF and https://www.google.com/finance?q=USDSGD

Look at the last five years of data.

You fellows can decide what you want to do but a lot of my assets are going to be in Singapore dollars thank you.

LdN

[Allan from Fallbrook]

[quote=CONCHO]Great quotes Allan. Here are a couple more of my favorites on the subject, both from men much smarter than myself:

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

— Henry Ford

“Permit me to issue and control the money of a nation, and I care not who makes its laws.”

— Mayer Amschel Rothschild[/quote]

CONCHO: That quote by Rothschild is especially timely, isn’t it? Its also interesting how little has changed over the last 200+ years. The same financiers who underwrote Napoleon’s wars (and his opponents as well) are still doing a brisk business.

I read an article recently about how the Rothschild family is still actively involved in finance and same for the Warburg family (Warburg Pincus). The more things change…

[briansd1]

Allan, did you hear that RF (Republique Francaise) stands for Rothschild Freres? Not only that, the Rothschild have married into and are part of the British elite.

They do have beautiful castles and good wines.

[Allan from Fallbrook]

[quote=briansd1]Allan, did you hear that RF (Republique Francaise) stands for Rothschild Freres? Not only that, the Rothschild have married into and are part of the British elite.

They do have beautiful castles and good wines.[/quote]

Brian: Its interesting how the British elites have
“accommodated” those of Jewish blood. Disraeli, the former PM, was Jewish and dealt with quite a bit of anti-Semitism. The Rothschild family bailed out the British during the Napoleonic Wars (and played the French side as well), which provided their entre and “acceptance” into the upper stratum of British culture.

Can’t argue about French wines, but I like German castles better. The scenery in both countries can be spectacular, especially the Rhine River valley in Germany and the Rhone valley in France.

[briansd1]

[quote=UCGal]
As far as toxic assets eventually recovering… not so much with the mortgage backed securities. Foreclosures force a recognition of the loss. If enough houses foreclose that MBS will never be above water. The AIG credit default swaps paid off dollar for dollar to Goldman… those will never be anything but a loss.[/quote]

The Fed is buying financial assets on the secondary markets at current market value.

The risk that the Fed is taking is when when it lends out money and in exchange taking collateral that may lose value if the loans are not repaid.

Plus the Fed is not buying bonds directly from the Federal Treasury, so, in that respect, it’s not really monetizing the debt.

Another thing to note is that US Treasury is not having problem selling bonds and raising money on the open markets (unlike some countries in Europe).

[briansd1]

[quote=Allan from Fallbrook]
Brian: Its interesting how the British elites have
“accommodated” those of Jewish blood. [/quote]

That happened throughout Europe because it was not considered noble to be a businessman. The nobles were profligate and got poor fast; so they had to marry rich Americans and enter convenient money making schemes.

[quote=Allan from Fallbrook] Disraeli, the former PM, was Jewish and dealt with quite a bit of anti-Semitism. [/quote]

The next and first Jewish president of France was to be Dominique Strauss Kahn. But that will not be. In France, there is plenty of talk of anti-semitic conspiracy.

[quote=Allan from Fallbrook]

Can’t argue about French wines, but I like German castles better. The scenery in both countries can be spectacular, especially the Rhine River valley in Germany and the Rhone valley in France.[/quote]

I have never been to Austria, but I read about the fabulous Rothschild palaces of Vienna which were unfortunately destroyed.

[Author]

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