Economy

[freethinkingg]

Wow, another huge bank going under. This is no looking good at all. I think we are seeing the beginning of a financial crash. I wish McCain would address the problems with the Federal Reserve system which is creating all this mal investment and inflation. So what does John McCain have to say about the economy, pretty much the same thing as Bush, "

Comments

[lordremo]

Maybe if you understood the topics you whine over, you wouldn't make such idiotic blurbs to poke at us

[freethinkingg]

The Fed is a bad thing because it causes inflation through t's debt based, fiat monetary system. With fiat money, it's value comes through confidence in it, legal tender laws and taxes, basically. It has no intrinsic value, unlike gold, silver, platinum, palladium, copper, land, or any other commodity, since it's supply is virtually unlimited. Only running out of paper will stop it from being made(but that is only physically, not the computer entries which "make" most money today. The more there is of something, the less value it has. This is where inflation comes from. It also encourages banks to make loans to people that they have a better than average shot of not paying, since it allows fractional reserve banking. Fractional Reserve banking allows a bank to "create" money from your loan signature by allowing a bank to lend money it doesn't have. It can lend roughly 7 or 8 dollars out for every dollar it has in it. Also, when the bank "creates" the loan, it only ever creates the principal, never the interest, making it impossible

[gopdude]

NO, no, no, our debt is caused by the Government spending more money than its taking in. The fed is such a small part of our debt that worrying about is like complaining about a sun burn in the middle of a forest fire. The Goverment is like you but if you had no limit on your credit card and never had to repay it. I don't really like the "fed" but I trust it more than congress.
More over you sources are questionable Gold-Eagle makes money from people buying gold, I've never heard of Kwaves, and the video could not be watched. If you have libertarian views look at the Cato institute, or heritage foundation. Heritage is Conservative but Republicans and libertarians have the same view one the economy they only really differ on socal issues.

[zz_neena]

Well, lordremo, unless you are a friend of johnnysquest, you've ganked my icon.

[i_am_pellucid]

The Fed is the only thing keeping us from economic meltdown right now, actually.

[reality_hammer]

Actually the fundamentals are strong. Companies go bankrupt all the time.

When the tech bubble collapsed it was tech companies that went bankrupt. Now the mortgage bubble is collapsing and it is mortgage companies going bankrupt.

No big surprises here.

[freethinkingg]

except when the mortgage companies go under and the government takes over, they put all the debt on the citizens

[freethinkingg]

And its not normal for all the huge financial companies to go under. Have you looked around recently. Unless your rich, you would notice that everything has gone up in price. I know for one that I am struggling right now.