muses of the moment

February 12, 2012

The Fed

Filed under: Taxes, The Federal Reserve — totallygroovygirlfriday @ 1:04 am

ETF Daily had a very good post last Thursday about the actions and damages of the US Fed. Click here.

And if it looks to you like a giant ponzi scheme….good for you, you get it. IT IS! Remember a ponzi scheme goes down for one reason….no new suckers. It is confidence game. If there is not enough new money coming to pay the interest on the remaining money, the game collapses.

If you examine the post, there are a couple of ways that could happen. Here are a few of them: all new US debt doesn’t cover interest payments on existing debt, US can not raise taxes to cover this short fall. Fed stops buying US debt. Global investors stop trading/investing with US and Fed because of loss of confidence in the ponzi schemes. Fed can not unload any US debt on the globe and they are getting no interest payments from the US.

Do you understand why Ron Paul wants to End the Fed? The US taxpayer and US government are slaves to the Federal Reserve and they are wasting huge amounts of money that could be used productively to move the country forward.

Unfortunately, any collapse of the Fed system whether mandated by government or a global loss of confidence, it will be painful.

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