The GOP especially would find that offensive - oh they might talk about it but they'd never pass it. Boehner needs his pockets filled by graft.

Kostoniann: odd how it was NOT the GOP that drafted health care legislation that did not effect Congress......

When will you morons quit blaming the party with the MINORITY in Washington and start looking at how lousy the LEADERSHIP is?

So sad that when DEMOCRATS ran the House, the President was to blame, but today when REPUBLICANS run the house, the President can do no wrong (even though he has passed more executive orders than any other President.....).

FACT: this is Obama's economy, and it is struggling because of him, and his parties unwillingness to even allow GOP legislation to pass the Senate let alone receive a vote!

Operation Twist - aka "5 Dollar Gas"!

Thanks A-hole, prop stock prices while sticking it to consumers.. Sounds about right.. Free Markets, yea right, keep dreaming..

quit all the Republican this and democrat that talk.... we are americans... unify and fix the freaking problem instead of fighting each other

Finally a subject that we all seem to agree with... THE FED = Propped Up Markets!

Since the housing market collapsed in 2007, the U.S. central bank has siphoned roughly $2 trillion worth of bonds - much of them backed by shaky mortgages - out of the banking system.

One of those moves, dubbed "Operation Twist," would represent a reshuffling of the bonds the Fed already holds in its vaults. By exchanging short-term notes for longer-term bonds, the Fed is hoping to push long-term rates even lower than the already bargain basement rate of roughly 2 percent.

Hmmmmm,

So, lemme get this straight. First of all we monetize the system on the backs of bonds that are unstable at best. Next we will offer short term bonds to support the “shaky” long term bonds to make them more attractive at lower rates and hope someone will be STUPID enough to buy them!

Hold on. Let me think. Where did I hear this being tried before?

Oh yeah! In Italy. They did the exact same thing.

Uh oh, Italy was just downgraded today by S&P. I wonder if any of this had to do with it?

I think if Barrack, Uncle Ben, Timmy Turbo Tax and Paul Krugman try to twist and strain to carry this economy Barrack is collapsing they may end up walking around with double hernias.

I hope that’s covered under Obamacare

Great idea!

Can we get a Constitutional Amendment by getting the required number of states to pass it without the Federal Government involved? Because it is highly doubtful those in Washington would ever do this.

It is certainly not easy to fix the wall street fiasco and banking fiasco started way before Obama and 2009. As the article said housing in 2007. But it is convenient to blame Barrack, etc. Certainly not; Whoever or Whatever the cause. Guess if you name them some stupid names, people will believe it! But, hey all you smart people, what is your brilliant solution? Oh, don't have one?

@Shaking: Yes.

The problem has never been laws being passed which do not apply to Congress. Since the executive enforces the laws such an idea would subjugate Congress to executive enforcement. Would the left really have wanted Bush to have that much more power over Congress, or the right would want Obama to have a similar amount of power over Congress?

Nope, the problem is now the same as it has always been--it's the fundamentals, stupid. No matter the endeavor in life, whether sports or academics or business, it's always about the fundamentals. Economics is no different. What Bernanke wants to do is what most voters in the USA have wanted for many decades--get something for nothing. What we really need instead is a return to fundamentals--simple tax codes meant to raise operating revenue for the government rather than to social engineer, responsible exploitation of the natural resources in our country and elsewhere, legal reformation so that the whiniest among us doesn't get a payday, and more.

What do we have today instead? Most people see the "pie" as fixed in size and so they want a larger piece at someone else's expense. It doesn't have to be this way. But so long as this remains a prevalent attitude in the USA we will continue to have miserable GDP growth and a much darker future. You want to blame someone? For the vast majority of us we should look in a mirror.

Kostoniann:

Keep on LYING see where it gets you> Your party had the House the Senate and the Presidency and YET NOTHING is the DEM fault. GET REAL

We're screwed. Nothing will be fixed. We all will be a third world country very soon.

Hi Sandy,

You are right that our problems predate Obama as president. But you would be wrong to claim he has not made then far worse as president. The solutions are simple to see, but may be impossible politically. What we have today is a pro-government administration. We need a pro-growth administration.

We need more mining, more drilling, more damming, more timbering--we need more of the basics. But we also need less tax code confusion (not necessarily lower taxes, though I believe that as more people knew what they actually do pay more people would want less government), less governmental regulation (it has its place but we've far exceeded what minimal regulations are needed), and we need smaller, by far, government.

It's not that every extraconstitutional government program is an epic failure, it's just that none of them work as promised or do a better job than you could with your own money and your own freedom to use it. But there is one other thing we need, and we need it badly. I don't know how to get there from here, and maybe you can help. We need to accept and even embrace the simple truth that not every bad thing in our lives must be fixed by our federal government, that most things are just part of living and that if a governmental solution is needed it should come at the local or state level.

I like how they use the word, "trick" in the headline...instills sooo much confidence

Sounds like the sweet sound of printing money and having it go no where. The idea of reducing interest to zero for money banks keep in the Fed vaults sounds like a good idea but it will not make banks want to increase lending.

Sounds like to me that Operation Twist is just about the same as stirring the compost pile... at the end- you still have a steaming pile of crap!

I wonder what tricks the Fed has up its sleeve designed to help Main St and the unemployed, as without a rise in employment numbers and consumer spending, Main St isn't going anywhere good???

Why all of the concern for Wall St over and over? Is Wall St going to be able to spend us out of the morass that we are in all by themselves?

I would like to do a "twist" myself and wring somebody down on Wall St's neck!!! First we want to file a lawsuit against the banks and investment houses that caused this mess, by repackaging and selling fraudulent securities, and even betting against their own products, then we want to print-up some more money so that they can better "afford" their fines through another devaluation of the Dollar???

Perhaps it is time for Wall St to have to make do with a lot less and live like the rest of us!!! Imagine Wall St getting cut back to 1975 income levels??? That is where the bottom 60% of us are!

Petrey

"unify and fix the freaking problem instead of fighting each other"

Only in your dreams, I come to the conclusion that Obama , democrats and the media made this country more divided than ever. It was 10 years ago after 9/11 we where one country united , until politicians in the other side sought the popularity of Bush went to high, dangerous for democrat ambition , so they start fighting again. Now with the far left in power they are in war , class warfare , race warfare, gender warfare. and Republicans are the enemy , Obama's word.

As I recall, under President Clinton we had a strong economy and were heading toward fiscal responsiblity and starting to pay-down our national debt. What was it about a strong economy and a balanced budget that you Republicans hated so much??? Perhaps the 38% top tax rate, which was half what the top tax rate was when Richard Nixon was President??? I would far rather have the left in power than the right, as every time that the right is in power the economy where I live goes straight in the trash.

It was the lack of oversight and regulations on the financial industry that caused our country to be in the awful mess we're in. So when you see Republicans trying to defeat legislation passed to prevent the gamblers from going wild again with Main Street's money that they intentionally had put into low risk investments it makes you wonder where the Repub's loyalty lies. When Republicans defeated legislation last year that would have ended the tax breaks given to U.S. corporation for outsourcing jobs, it makes you wonder just who are these people? When they opt to slash funding on safety net programs at a time when America is suffering most since the Great Depression it makes you wonder. Especially when they go to battle like no body's business when it comes to protecting the wealthy's safety net. They would rather cut funding to school lunch programs than raise the tax on capital gains. They shield hedge fund managers from tax increases at all costs while pushing to cut the food stamp program because feeding kids and raising the historically low tax rate on capital gains is "CLASS WARFARE". LOL @ the GOP and their propaganda phrase snippets. It's only "class warfare" when middle and lower income Americans are waking up to the fact that they have been screwed. And no, it's not free entitlements they've been screwed out of, most have never received those "entitlements" (another word snippet the GOP loves to propagandize) When the top 10% of the population has seen their after tax income increase by 400% over the last 15 years while the bottom 86% has increased 26% (barely keeping up with inflation) that is "class warfare". It's not the middle and low income wage earners in America that have been waging that war. "Silent Class Warfare" has been raging in America going on almost 2 decades now. The politicians didn't seem to notice that "class warfare", not when they are reaping the rewards. What's the average net worth of a member of Congress. Their incomes are higher now than they were in 2007, before the recession. The richer you become, the richer you become under the Bush tax changes. Heck yeah they'll de-fund school lunch programs before they'll raise taxes on themselves and their friends.

HowieD2, why don't you QUIT YOUR BITTER "CLASS WARFARE" whining and INVENT SOMETHING so that we can compete with the Chinese??

Please Howie- Spare us from the Republicans did it all hyperbole!! BOTH side did this!! I can point to MANY things both sides did to cause this problem we now are faced with. Get over the idea that it was only the Republicans made it happen.

Carter started the Housing problems with the notion that EVERYONE should own a home- whether they could afford it or not, whether they were LEGAL or not. He forced the banks to deliberately make bad loans- with the notion that Freddie & Fannie would buy the loans later. Then every single president since then has okay'd the idea- so they are ALL to blame. Barney Frank taking control of Fannie & Freddie did more to destroy the economy than all the presidents put together just by buying bad debt and having nothing to back it against artificially high home prices! And who were the top recipients of the F&F kickbacks- Dems like Chris D, Barrack, John K! BUT Republicans also made out okay as well! Seems everyone EXCEPT people who aren't in congress did pretty well.

tinyurl dot com/5ar7qo

Both parties are deep into the pockets of Wall Street- period! People think Bush was on the take- but Obama is even deeper into it- plus he seems to owe the Unions Big Time!! Boehner has something holding him back as well- not sure just where it's coming from- but there is someone/something pulling strings there. Banks give to the Dems 2 to 1 over Republicans. Wonder why that is? Because the Dems will ensure the rules always favor the banks- BUT so do the Republicans!!

Sorry- but the Congress and the White House needs a serious enema!!

Both of them need to be cleaned out and brought to attention- WE the PEOPLE will not stand for politics as usual any more!

and just so you know where I stand- I am a Conservative- NOT Republican.

Hey Old Timer,

I won't dispute that our fiscal position in the 90s was easily better than it is today, but your facts are wrong. In each year of the Clinton Administration the national debt increased and this includes the supposed two years of surplus. There is a sleight of hand at work, one that you have bought into as true, and that is a shame. A shame because we can never get a handle on our national finances so long as a majority are economically and financially delusional.

There is a bigger point too about Clinton and the budget. In every proposed budget submitted by Clinton he predicted a deficit of no less than $200bn. In fact, when we went into technical balance in FY98, Clinton proposed a deficit for that year of $200bn, AND for every year after that in the next ten years. I don't think a wise voter would credit the president for his fiscal prowess when the president failed to predict technical balance in the year it occurred. Like most people I think you are ideological and partisan and not really interested in an honest debate, just a debate outcome you can smile about.

Take one more fact...the 38% tax rate you mention. When the feds had a top marginal rate of 90% can you believe that the actual effective rate was about 19%? And when the top marginal rate was dropped to 70% can you believe that the actual effective rate was about 19%? And when the top marginal rate dropped below 40% can you believe that the actual effective rate was about...wait for it...here it comes...19%? The point is that the government uses marginal tax rates to guide our behavior, not to raise money. Whatever the rate it turns out we tend to float right around 19% paid to the feds. Knowing this would you support an idea, call it a flat tax, where the rate is established to be 19% with no deductions or credits?

Wouldn't such a rate raise the historically normal percentage but do so without all the social engineering and game-playing class warfare garbage? Do you want to properly fund the government, or do you really just want an issue to play games with?

The very best thing that could happen with the Fed is that it be abolished.

Folks, the only way out is inflation. BOHICA.

Both parties wanted wide spread home ownership and gave incentives to banks to loan; However, no bank was ever forced to make any loan. Those who say that either don't know what the are talking anout or have no regard for truth. Banks wanted those bad loans , because they rhought housing would continue up and the would sreal half the world. Whe things went sour the devised a scam that should have put many in prision; Instead they got big bonuses and they continue robing the people.

Our big banks with trillions in assets have been getting billions in 0% loans to play the market. The low life pigs have been driving up the price of gas by manipulating the commodities market. So, they use the peoples own money to rob them when they are already hurting. You can't get much lower and everyone knows it; But nobody is doing a thing to stop the pigs.

How long will we act like pawns and peasants to a totally corrupt financial system and their government?

Oskar I realize this will get me suspended, but YOUR AN IDIOT... Grow Up and think for yourself you freaking clown!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Posted by Rich:

Knowing this would you support an idea, call it a flat tax, where the rate is established to be 19% with no deductions or credits?

Wouldn't such a rate raise the historically normal percentage but do so without all the social engineering and game-playing class warfare garbage?

I'm afraid that I don't see it your way Rich, though I might very well vote for a Federal sales tax in the 10-15% range, along with a supplemental tax rate that grows with income level with few deductions. I am not in favor of discontinuing the first mortgage deduction, nor am I in favor of discontinuing various business and overnight travel deductions, nor educational deductions, or the earned-income credit either. I am in favor of an income tax rate higher than 19% on our wealthiest citizens, and I am in favor of imposing penalties on currency flight too.

Why is it that the wealthy in America see those who have a lot less than they have as some sort of leeches instead of their fellow citizens? Your statement about "class-warfare garbage" is a testament to that. For the last 95 years our wealthiest citizens have been expected to pay their fair share, and since the New Deal that fair share has included a social-engineering component. I am afraid that I do not see why right now, in the middle of the worst recession since the Great Depression, is the right time for a huge rearrangement of American economic policy that favors our wealthiest citizens at the expense of everyone else. We have already given your kind "free" trade, which has been a ruinous policy for the vast majority of America. Who cares if our retail prices are lower if our wages are a whole lot lower too? Do you exclusively spend all of your extra profit in America? Are you investing locally in new plants and equipment or are you using a large chunk of your extra profit to move an ever-larger share of your production offshore?

The fact is that the spending power of the bottom 70% of Americans has fallen by 40% since the mid 1970s, while the spending power of the wealthiest 2% has risen by over 400% during the same period. Since 2001, all of the progress President Johnson's Great Society program had enjoyed, which had been quite effective at reducing poverty through the end of the Clinton admistration, has been lost. Our national poverty rate now stands at exactly the same level that it was at in 1965, and now the wealthy think that they should be let off the hook in trying to rectify the problem through a flat tax without deductions even though the "free" trade policies that the wealthy want so badly have greatly contributed to the problem?

How about if we tax 75% of all income above 1975 levels, figured for inflation, and impose severe penalties against capital flight too, in an attempt to as rapidly as possible pay-down our national debt??? You wouldn't think such a policy woul be fair obviously, nor do I think that your desire for an end to "social engineering and game-playing class warfare garbage" would be a policy fair to many millions of your fellow citizens either. My own belief says that if we tax the wealthy at a higher rate, then they will work extra hard and take even greater chances to produce an even greater level of profit. I view low top tax rates as anti-growth, anti-investment, and anti-American myself.

If we are ever going to get out of the morass that we find ourselves in, we are going to have to raise tax rates, pay-down our national debt, and cut spending too, both for social programs as well as for national defense and overseas aid too. (Social Security is a viable stand-alone program which is not a part of the Federal budget). Everyone is going to have to do their fair share, including our wealthiest citizens, and it may be that continuing unrestricted "free" trade is a policy not in the best interests of all of us, especially not with countries like China who manipulate their currency as well as various commodities markets too.

When we begin to lose our compassion for each other, start blaming each other, and raise the whole "game-playing class warfare garbage" angle, that is when the America that I know and love is starting to slip away, slowly being replaced by a cold, cruel world entirely driven by asset values, profits, and proxy votes, where the needs, hopes, and dreams of average citizens are savagely crushed. The reason that most of the 47% of us who do not pay Federal income taxes is that they don't earn enough to pay income taxes under the current tax code. Does that bother you because they don't pay income taxes, or does it bother you because they don't earn enough to have to pay taxes???

Obviously Rich, your idea for the future of America and my idea are vastly different ideas. I feel the fact that 40% of adult Americans don't earn enough to have to pay income taxes is such a serious problem that our government needs to take immediate remedial steps to rectify the situation, which may include asking the 60% of us who do earn enough to pay income taxes to contribute a little extra, whereas you indicate that the problem is that poor people don't pay income tax, without any suggestion as to how to improve their economic standing other than to identify a perceived "class warfare garbage" component. Are you one of those people who thinks that we need to gut our environmental protection and worker safety laws too, on the grounds of cost to the bottom line???

I'll stand behind my previous suggestion for a 10% Federal sales tax on consumption (other than for grocery store food and prescription drugs), in combination with an income tax code similar to what we have now, with greatly reduced deductions, as well as a standard deduction at least double of what it is now, on income levels above the standard deduction. If we kill the homeowners deductions, we also do further damage to our housing markets, though the deduction might be revamped as a credit.

I also feel that in order to strengthen Social Security that everyone needs to pay into the program on all of their income, not just those of us whose entire income is less than $106,800 per year. If everyone earning over $106,800 had to contribute some part of all of their income to funding Social Security, the program would be viable in perpetuity, and either the benefit amount could be raised by double or the tax rate could be halved. The rich are eligible for Social Security benefits, so why should they get off the hook for paying into the program? Let me guess: My guess is that Social Security taxation is one place that you might not favor a "flat" tax on all incomes???

And on another subject:

In each year of the Clinton Administration the national debt increased and this includes the supposed two years of surplus.

Actually, because of borrowing from the Social Security Trust Fund, President Clinton only ran a surplus for one fiscal year, and the amount of the surplus was fairly trivial at just $18 Billion (which handily beats the $1.8 Trillion 2008 deficit that GW presided over, not including the $1.5 Trillion worth of Fed bailouts of both US and overseas banks during the Fall of 2008). This figure is available from the US Treasury website. Other facts included on the same website include President Carter's total deficit for his 4 years, (under $400 Billion), and the sum total of the Reagan and Bush I administrations, which together came to a nearly $3 Trillion contribution to the national debt.

The fact is that Reagan and Bush I together nearly tripled the national debt, while the eight years under Clinton only increased the figure by a little over 30%, in-line with the percentage increase under Carter. Also according to the US Treasury October 2009 Revision, when the $2.2 Trillion that the GW Bush administration borrowed from Social Security and other smaller Federal trust funds was added, GW's total increase in the national debt was a greater Dollar value than the total increase under Carter, Reagan, Bush I, and Clinton all put together!!! Not only that, but President Obama's total percentage increase in our national debt so far, since January 25th of 2009, is not even 30% yet either.

Isn't it amazing what can be done with raw numbers?

Rich, are you one of those people who thinks that the Fed should keep acting to devalue our Dollar just so that Wall St can have some more money to gamble with? (Or maybe the Fed should enact QE3 just so that those investors who weren't smart-enough to get out as QE2 was ending can have another chance to hang onto a greater share of their imaginary profits when the music stops)???

"Twist and shout" a.k.a "Smoke and Mirrors"

More like squirm and whine!

WHERE IS THE FED GETTING THE MONEY TO DO THIS???

Once again, Washington IS the Problem.

A Messenger, what you say is true but it is also true for most countries as they ALL answer to a central bank. Ending the Fed won't happen because that's who really runs things...

What I love most about the possible future these people might put us through is the Dollars for Euros idea. Wouldn't it be amazing if we got a ton of Euros just in time for the European Union to break up resulting in the Euro being worth only the paper it is printed on? To make things worse, we wouldn't actually be getting real paper, so when the weather gets cold, we wouldn't have anything to toss on the fire to keep us warm. Lets take on the Greek debt. I'm sure their 14 months per year pay will cover it.

Fed may control monetary supply, but it can't control stupid trade agreements. No demand. Well naturally, all the well paying jobs that created demand were sent to other places where they could pay little. And funny money games won't work if there is a fundamental structural problems with demand.

But at least they're not doing another QE. It was worth a try, it didn't work, it just made commodity prices higher which were not off set by export demand from the US. You can't get much demand from low over-seas wage labor. Especailly, when near perpetual low labor cost is the only competitive advantage. You get a problem where they are not competitive in areas such as natural resources availability and quality so they just cause themselves inflation rather than true wealth ability to create their own demand. And the quality aspect, they lose on any existing demand.

The Fed has a couple of very blunt instruments at their disposal; and they are spent. This is just another bank oriented bunch of crap that we have tried several times - the old definition of insanity applies.

Until the Fed is able to understand the problem (banks) they will not be able to consider truly bold moves like opening the fed window to all companies or injecting cash directly into small and medium size business. We have spent nearly 4 trillion digging the banks out of their absurd mess and the banks have in turn completely shut off small business. A trillion dollars pushed directly into small and medium sized businesses would have an immediate and efficient effect on employment. But, the Fed is far too stupid and corrupt to ever think this far.

What I have asked and not gotten an answer, why does this non-elected bunch of super rich countries, corporations and people have control over our economy and the ability to print our money out of thin air? GET RID OF THE FED.

Each state can have a central bank if it is needed but one set up under the control of the state government, not one like this that can lend out 8 trillion and not have to answer to where the heck it went. If I understand how this works all the banks have to belong to the FED and they have a great deal of their cash deposited there and are paid interest by the FED.

Well Folks if these numbskulls get into a bad deal which they are prone to do, and the money isn't there to give to the banks when they need it, guess what if the bank is holding your money it means you can't get it either. Ponder on that potential disaster personal and country wise.

Ive seen Geese F--t in water.

But ive never seen the Fed Bite the Bubble!

The fed is controlled by money it does NOT control money. Who has all the money? If not the fed............hum?

Ryan in Texas

WHERE IS THE FED GETTING THE MONEY TO DO THIS???

Once again, Washington IS the Problem.

They have the money through the sell of U.S. Bonds duh. U.S. bonds are still the safest investment in the world. Where do you think investors run when the stock market gets too risky? .... U.S. treasury bonds. That's the hilarious part of S&P lowering the U.S. credit rating. If caused a sell off in the stock market (why...who knows) and the stock earnings were invested in U.S. bonds. So S&P's political move actually enticed a surge in investment in the federal treasury. Purchasing short term notes right now is no lose investment unless anyone actually thinks interest rates are going to stay at this level beyond two years. Same goes for us swapping dollars for Euros. We get a lot more Euros for the dollar and again. the financial crisis in Europe won't last more than a few more years down the road. Then the fed will have a fistful of Euros worth twice as much as we paid for them. FYI.......just because Washington is broke it has no relevance to the U.S. treasury. All those trillions of dollars that the banks aren't lending is not sitting in your local bank branch's vault. They're letting it sit in the federal reserve and making a a little interest off of it. This is an extremely wealthy country. Just not for the bottom 90% of it's population. Think about it, if half of all the people in the country only hold 2.4 trillion in wealth, one cannot even fathom how much wealth is floating amongst the top 10%. Just because America's middle class is trending toward the poverty level doesn't mean the money they use to have was thrown in a pit and burned.

HowdieD2 -

The FED didn't by the US Bonds with money they had. They created it out of thin air.

That's called printing money.

Inflation is already higher than growth.

When a retired person goes to the store and sees 2.7% inflation, but who has investments paying less than 1.5%, then we can all see what the effect of the Fed printing money is.

It's time to end the Fed. They created the housing bubble with ultra low interest rates. Remember, NO ONE AT THE FED SAW THE CRASH COMING.

There is no one with more blame for the present mess than the Fed. And now we still let them run loose without regulation?

It's time to regulate the Gov't. and especially the private bank known as the Fed.

Perhaps we should wait until tomorrow and see what the Fed does next . . it's only the Future Generation's money.

Inflation is the only way out of this mess. BOHICA.

Agree....should have been done long, long, ago.

And now, the "Fed" has run out of options and is again, playing the SHELL GAME.

Mark my words. The Feds so called "fixes" are remedies that will surely cause terrible inflation which will turn out to be worse than the problems they're trying to fix. Our devalued dollars won't buy what we need and the imbecilic government will again "fix" the problem and make it even worse.

If you really want to END THE FED, vote for Ron Paul. He literally wrote the book on it. He has been warning us about the Fed for the past 30 years, but no one would listen...until now.

Ron Paul 2012!

Ladies and gentlemen:

I see here ideas such as dissolve the Federal Reserve, do this or do that with the Fed. My dear citizens the Federal Reserve Bank is a foreign banking conglomerate type Corporation. It is not part of the US Government. Federal Reserve is the name given to it and the ignorant does not understand it is just a corporate name like Federal Express. In fact the US Dollar is not even our sovereing monetary unit. Please study it.

Please understand once and for all that there is nothing the US government can do outside of paying the Federal Reserve bank a debt that cannot be paid realistically. We have no authority over the Fed (Rothschild/Rockefeller Corp).

You want the truth? They enslaved their colony with debt! Apparently Ron Paul is the only one willing to expose them so support him instead of being railroaded into thinking the candidates in the limelight of the media are your only choices.

Since the housing market collapsed in 2007, the U.S. central bank has siphoned roughly $2 trillion worth of bonds - much of them backed by shaky mortgages - out of the banking system.

One of those moves, dubbed "Operation Twist," would represent a reshuffling of the bonds the Fed already holds in its vaults. By exchanging short-term notes for longer-term bonds, the Fed is hoping to push long-term rates even lower than the already bargain basement rate of roughly 2 percent.

Hmmmmm,

So, lemme get this straight. First of all we monetize the system on the backs of bonds that are unstable at best. Next we will offer short term bonds to support the “shaky” long term bonds to make them more attractive at lower rates and hope someone will be STUPID enough to buy them!

Hold on. Let me think. Where did I hear this being tried before?

Oh yeah! In Italy. They did the exact same thing.

Uh oh, Italy was just downgraded today by S&P. I wonder if any of this had to do with it?

I think if Barrack, Uncle Ben, Timmy Turbo Tax and Paul Krugman try to twist and strain to carry this economy Barrack is collapsing they may end up walking around with double hernias.

I hope that’s covered under Obamacare.

Joe-755363 Post #4

I agree. Who are they any way? A private group, not related to our government.

They are in for themselves and a select few.

Just make them pay taxes and they would be out.

I'm glad to see people finally catching on to this debacle that can ruin our economy for good. One of Obama's heros FDR, Democrat extraordinary started this FED fiasco and got his congress to approve it before he left office. Now is the time for CHANGE so we can have some HOPE of a future for America.

What, FDR started what? The Fed? In 1910? 23 years before he was elected?

The Federal Reserve Act was passed in 1913 by Woodrow Wilson. In one fail swoop he handed the soveriegty of a nation and it's entire economic destiny to a handfull of foreign and domestic banking elites. This was Wilson reaction to his catastrophic mistake.

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men."

Yup the FED is the bane of Americas existence

The "Fed" is not the answer, it is the problem.

The Federal Reserve Bank is NOT as the name implies, an entity of the Federal Government, it is a PRIVATE CENTRAL BANK, owned and operated by the richest families/corporations on earth, including the Rothchilds, Rockfellers, Morgans, et al, and has been since they hoodwinked Woodrow Wilson into signing the Federal Reserve Act in 1913.

One of the architects, Mayer Amschel Rothschild (yes, the bankers themselves wrote the bill) said: "Give me control of a nation's money and I care not who makes her laws."

Look it up, W.W. later apologized to the American people once he realized what he'd done.

John F. Kennedy signed an Executive Order (#11110) in 1963 that would have made it illegal for the US to borrow money from the Fed, at interest, making the Fed unnecessary. He also began issuing new US currency to replace Federal Reserve Notes, which were, and still are, worthless paper.

5 months later he was shot dead, and his "United States Notes" were quietly and completely removed from circulation.
The Executive Order was never rescinded, so it is still in fact, in effect. It is now, simply ignored by those in power.

Perhaps the assassination of JFK was a warning to all future presidents not to interfere with the private Federal Reserve's control over the creation of money.
{ see why at www.john-f-kennedy.net/thefederalreserve.htm }

B.S . !!! This is wrong, wrong, wrong. Those that have saved, aren't in debt are getting sucker punched with these " mandated" low interest rates. Screw the people who were stupid enought to get into debt over their heads and screw the banks that lent them the money.

Good Work jam3965...may I borrow and repost in other places?

Q: Who owns the Federal Reserve Bank?

A: There are actually 12 different Federal Reserve Banks around the country, and they are owned by big private banks. But the banks don’t necessarily run the show. Nationally, the Federal Reserve System is led by a Board of Governors whose seven members are appointed by the president and confirmed by the Senate.

FULL ANSWER

The stockholders in the 12 regional Federal Reserve Banks are the privately owned banks that fall under the Federal Reserve System. These include all national banks (chartered by the federal government) and those state-chartered banks that wish to join and meet certain requirements. About 38 percent of the nation’s more than 8,000 banks are members of the system, and thus own the Fed banks.

The concept of "ownership" needs some explaining here, however. The member banks must by law invest 3 percent of their capital as stock in the Reserve Banks, and they cannot sell or trade their stock or even use that stock as collateral to borrow money. They do receive dividends of 6 percent per year from the Reserve Banks and get to elect each Reserve Bank’s board of directors.

The private banks also have a voice in regulating the nation’s money supply and setting targets for short-term interest rates, but it’s a minority voice. Those decisions are made by the Federal Open Market Committee, which has a dozen voting members, only five of whom come from the banks. The remaining seven, a voting majority, are the Fed’s Board of Governors who, as mentioned, are appointed by the president.

The Fed is a little defensive about the question of ownership. In its Frequently Asked Questions section, the Federal Reserve Board says: "The Federal Reserve System is not ‘owned’ by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects." It continues:

Federal Reserve Board: As the nation’s central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Are you out of your mind? That is not true at all and if you believe that I got a bridge to sell to you.

"Brain in Use Q: Who owns the Federal Reserve Bank?"

I saw that too, on factcheck.org.
That information came directly, word for word, from federalreserve.gov.

What do you expect them say?

Check this out: www.john-f-kennedy.net/thefederalreserve.htm

In the recently found "lost" recordings of Jackie Kennedy, she explains who she believes really killed her husband.

Her response was "Texas tycoons and bankers".

the FED you can just say the bank of england! Abe Lincoln tried to stop them , we all know what happened to him,only some know why.

At last, some one who posts with facts! Bravo

david bion - that's correct.

Abe Lincoln was the first president who attempted to free the US from the grips of the bankers.

John F. Kennedy was the second. We see what happened to them...

Ron Paul would be the third, because he too wants to "End the Fed".

But because he's been around so long, has seen so much, and knows too much, the controlled media ignores him, and he'll never get elected. In other words, he has enemies in all the right places.

Sorry, but this is nonsense. I don't think the Fed is a good thing to have and I want it ended, but not because it is nefarious and conniving and devious. I want it ended because politicians are allowed to avoid their duties in part because the fed works to control monetary policy. We, through our representatives, should do this work. This crap about the Fed killing presidents is just lunacy.

Lincoln wasn't the first president to talk about bankers, let alone central bankers. Hell, the guy on the $20 railed against central banks. Jefferson spoke at length about the concerns of fractional banking and central banks. They weren't assassinated. And by making the ridiculous claim that Lincoln and Kennedy were killed by bankers conspiring to destroy the USA confuses the issue, excuses the actual killers, and fails to take notice that the USA had better days before it after each man died. Not because they died though.

Argue your point from a less delusional perspective and you will find more allies. Our current problems are not Fed created in any event. We are suffering economically because, even after all that has happened, most Americans still want free stuff given to them from the government. This mentality will always lead to failure.

They have drawn far too much attention to themselves and they have no idea what to do. Like I have said to the FED before, the gig is up RUN! Maybe you can catch the next flight to the ISS. We won't miss you!

End the FED -

operation cliff hanger has already been used-------By Bush

Republicans 2012:
"Keeping millions out of work, just to put one man out of a job."

Jobs aren't all that tricky for Republicans.

No they're not. After all they currently have what, 15,16, bills that would create jobs stilling on Harry Reid's desk?

And as long as Republicans keep preventing anyone else from creating any jobs, they think the American people will reward them. We'll see in November!

Democrats are playing the same game my friend, you just need to open both eyes now and put down the Kool Aid.

C'mmon, say it!

Don't be shy, we are all big boys and girls around here.

I know you can !

Who are the Republicans trying to fire by blocking everything he does, so the presidency will fail?

joe too much malt liquor my friend ... you forget so soon that obammys first 2 years were completely demorat controlled... what did he get done.... you god oblamer is going down

jam -

Democrats 2012:
"Keeping millions out of work while borrowing and spending away the future to buy votes, just to put one man IN a job."

P.S. "Our replacements are "Extreme" and anyone who opposes us is "Obstructionist".... looking for accomplishments? we have none."

List those bills backcountry! Find a single one of them that isn't another tax cut.

They aren't about fixing the economy they are about paying off their wealthy contributors and that's all.

Harbinger and Joe Reyna -

Einstein said that the defenition of insanity is to do the same thing over and over again and expect a different result.

Where do you get the idea that the first stimulus worked? Had it worked, do you think Obama would need to repeat it? It also did not work for Roosevelt. Central Government stimulation, and control has never worked, just ask Greece, Portugal, Spain, Cuba, Russia, etc.

pjam - spending is on the bills that have already been racked up. 3.3 trillion on 2 wars, one of which was based on a lie that even 8 years later still has not proven true. Another 1.5 trillion in Bush tax cuts that not only did not stimulate the economy in 2002 when they were supposed to but have driven the economy into disaster. Add another 750 billion in TARP to banks that passed it out to itself and gave great bonuses but did nothing to fix the economy.

In case you people haven't noticed ,our money isn't worth the paper it's printed on. Look at the exchange rate, more and more places aren't taking our money and that includes places in the US. As debt keeps piling up with our open credit card, our enemies are rubbing their hands How much longer do you think the world is going to keep using our dollar? France and China have already suggested we use their countries currency. Have you bought groceries lately? The Depression is coming better prepare yourself.

To Jim Bletso,

I can careless for who wins in 2012 sir, so that throughout my working years I have positioned myself in a way that I do not become a victim of this corrupt system we live under by being dependent on it.

Neither Obama, nor any GOP, or Tea-bagging candidate is going to look after myself, my business or my family the way I do.

I'm sorry you took my comment the wrong way, I was just trying to be sarcastic.

You need to put down the malt beer brother!

Later.

The next Depression is coming and it will make the Great Depression of the 20th century look like a picnic! We can all thank our leaders, especially the flaming republicans and our self serving corporate world who care nothing about America!

@Bob-1952

List those bills backcountry! Find a single one of them that isn't another tax cut.

They aren't about fixing the economy they are about paying off their wealthy contributors and that's all.

H.R. 872, the Reducing Regulatory Burdens Act;

H.R. 72, a Resolution to direct committees to inventory and review existing, pending, and proposed regulations and order from agencies of the federal government, particularly with respect to their effect on jobs and economic growth

H.R. 4, the Small Business Paperwork Mandate Elimination Act

H.R. 1230, Restarting American Offshore Leasing Now Act

H.R. 1229, Putting the Gulf of Mexico Back to Work Act

H.R. 1231, Reversing President Obama's Offshore Moratorium Act

Now why don't you put your money where your mouth is and show me where the "tax cuts to pay of the wealthy" are in any of these bills? If you're not too busy gagging on your Kool Aid.

Obey, you do realize the Corporate world doesn't exist with out us buying things right? So wouldn't be in the best interest of the Corporate world to have customers with jobs?

FYI - the reason we aren't coming out of this is pretty simple, most middle class Americans are in debt up to their ears, the country is in debt up to, actually way over its head. States and Counties are going bankrupt. Until people can pay down there debt they can't buy anything.

No jobs/spending bill or anything the Fed does is going to help this. You can't bail out the citizens because inflation would wipe out everything.

I don't know, Backcountry. The first 3 bills listed sound like eliminating regulations - not creating jobs - even though that seems to be typical Republican rhetoric - somehow cutting regulations creates jobs (?). No one has ever explained how that works. The last 3 bills all have to do with offshore leasing, which, I suppose will create some jobs, but will mostly create more money for oil companies. How about some REAL job creation bills?

Jim Bletso and all others that keep repeating the "Senate Super majority" lie

There was never a "super majority" for any length of time. Stop with the lies. The GOP/TP has set a historical record for the number of filibusters in this administration and it continues to obstruct any bills to move us forward. And don't forget about the Blue Dog Dems and the Independents.

Senate Supermajority myth

January 3, 2009 - 111th Congress sworn in. 55 Democrats, 41 Republicans, 2 Independents, 2 vacant.

January 15, 2009 - Roland Burris sworn in to Barack Obama's seat. 56 Democrats, 41 Republicans, 2 Independents, 2 vacant.

April 30, 2009 – Arlen Specter changes parties. 57 Democrats, 40 Republicans, 2 Independents, 1 vacant.

July 7, 2009 – Al Franken seated. 58 Democrats, 40 Republicans, 2 Independents.

THIS IS THE FIRST TIME THE DEMOCRATS HAD A SHOT AT A
60-VOTE MAJORITY.

August 25, 2009 – Teddy Kennedy dies. Kennedy had missed 97% of the votes in 2009 and over 90% in the last half of 2008. 57 Democrats, 40 Republicans, 2 Independents, 1 vacant.

September 25, 2009 – Paul Kirk appointed to Teddy Kennedy's seat. 58 Democrats, 40 Republicans, 2 Independents.

THIS IS THE SECOND TIME THE DEMOCRATS HAD A SHOT AT A 60-VOTE MAJORITY.

February 4, 2010 – Scott Brown sworn in to replace Paul Kirk. 57 Democrats, 41 Republicans, 2 Independents.

June 28, 2010 – Robert Byrd dies. Byrd had missed over 90% of the votes in 2010 and almost 50% in 2009 due to illness. 56 Democrats, 41 Republicans, 2 Independents, 1 vacant.

November 29, 2010 - Mark Kirk sworn in to replace Roland Burris. 56 Democrats, 42 Republicans, 2 Independents.

Super-majority? It existed only for a total of 6 months AND only during
two periods when Teddy Kennedy and/or Robert Byrd were unable to vote AND
required them to get the votes of every Democrat plus BOTH independents.

FACT: The "Democrat supermajority" is a G.O.P. lie.

FACT: The GOP used every roadblock, filibuster, and secret hold they could think of so that EVERY bill had to have a 60-vote margin to pass.

@Judy1217

I don't know, Backcountry. The first 3 bills listed sound like eliminating regulations - not creating jobs

"The burden of regulation on Americans increased at an alarming rate in fiscal year 2010. Based on data from the Government Accountability Office, an unprecedented 43 major new regulations were imposed by Washington. And based on reports from government regulators themselves, the total cost of these rules topped $26.5 billion, far more than any other year for which records are available."-http://www.heritage.org/research/reports/2010/10/red-tape-rising-obamas-torrent-of-new-regulation

You can't stick business with $26 billion dollars worth of new rules (that's just last year) and expect them to also invest in expanding their businesses or creating new ones. Would you hire people today if you weren't sure you'd be able to afford them tomorrow? Maybe do some research yourslef instead of waiting for someone to explain it to you.

The last 3 bills all have to do with offshore leasing, which, I suppose will create some jobs, but will mostly create more money for oil companies. How about some REAL job creation bills?

You talk about typical republican rhetoric but then you come back with the typical liberal rhetoric. This may be hard for you to get a grasp of but why would anyone expand or invest in their business if they weren't going to make more money? You think oil companies, or anyone for that matter, are going to invest and hire just so they can break even?

I am sure you have tons of fiscal and economic policies ready to provide everyone....

Backcountry - the Fox News Network would like to present you with the "100% Fact Free Award"

Bob, and CNN would like to present you with the Braille award.

@Jackie-814920

I am sure you have tons of fiscal and economic policies ready to provide everyone....

"TONS" of fiscal and economic policies are a large part of the current problem, hence the idea- get the F out of the way!

Jackie and wlee, I assume you both are aware that James Carville (Clinton's Campaign chief and pretty vocal DNC supporter) has publicly stated that the time has come for Obama to change personnel because obviously his current advisors are not coming up with solutions but are merely trying different versions of fixes that have already been shown to have failed.

You listed the bills, now which one was a jobs bill? I couldn't determine any one of them being a "jobs" bill. Regulations elimination yes, jobs bill no! Help me out by pointing out the "jobs" bill!

LA what does that have to do with my comment?

wlee, surely you are aware that James Carville is often on CNN? So you using them as a rebuttal to a snide anti-Fox remark is sort of invalidated as they sometimes do present more than just the "braille" side of an opinion. Let's face it, they cannot help it if their audience only wishes to see the one side that supports their argument and beliefs.

LA, are you saying Fox doesn't show the opposing side or CNN? If you were implying Fox then it's obvious you have never watched Fox.

You listed the bills, now which one was a jobs bill? I couldn't determine any one of them being a "jobs" bill. Regulations elimination yes, jobs bill no! Help me out by pointing out the "jobs" bill!

You think mini stimulus two is any different from the first one just because they put a new title on it. Really? It's that simple for you. Just call it something else and you'll believe it? Don’t look past the title because that would require actual thought. You don’t understand how over regulation hurts business? Maybe you should avoid discussions on subjects that you really don’t understand.

Yes folks, let's let the rich SOB's that sent our jobs to communist china and don't want to pay any tax decide on what to deregulate and how to make more jobs (for communists).

Tax the rich SOB's, share the profits not just the pain.

Yes folks, let's let the rich SOB's that sent our jobs to communist china and don't want to pay any tax decide on what to deregulate and how to make more jobs (for communists).

The regulations are the REASON they are sending many of the jobs overseas. Duh. You think Boeing is ever going to build another factory in this country after all of the BS they are going through now? Why the F would they? Our clueless President makes it harder and harder for business even as he pretends he's interested in creating jobs.

BRAVO!! Well said. This dysfunctional 2 party system we have does nothing but create roadblocks to real recovery.

Yes, you get it! Go communist and we get our jobs back! ROFL

What is it about the economy that is heading in the right direction?

It's not growing much. It's not creating more jobs than are lost.

Obama Lies is exactly correct!

Are you using both hands? Be careful, you might go blind.

Bernanke - served as Bush's chairman of the Council of Economic Advisors from 2001-2004. Appointed by Bush in 2004 to chairman of the Fed for a 14 year term.

To a republican - All Obama's fault.

Bob no ,Bush spent like a Democrat too

Bush was being honest when he announced in 2008 that the U.S. economy was on the verge of collapse. It is apparent, by the comments posted in blog like this, that most Americans don't understand the magnitude or severity of the fiscal and economic mess we are in, or the reasons for the high unemployment that may prove to be a chronic problem for generations to come.

Our problems are not the result of policies put in place 2.5 or even 10 years ago, they are the result of greed, bad government and corporate decisions, and fiscal irresponsibility at all levels from successive administrations to the electorate during the last 4 or 5 decades. We simply can not continue to demand services while refusing to pay for them or letting those who can afford to do so bear the burden of our largesse and irresponsibility.

The outsourcing of jobs did not start in 2009, it started in the 1970s and has been getting progressively worse since then. As long as there are countries willing to do assembly line work and service-related work for a fraction of what an American worker expects the erosion of work will continue.

The problem is not Bush, Obama, Clinton or anyone else. The problem is us. We are the ones that demand the best military that money can buy, social programs that allow us to live with a modicum of decorum while doing little to earn a living, and we are the ones that drop out of high school or choose easy liberal majors to avoid the sacrifices inherent in studying hard sciences to qualify for the jobs that do exist, go unfilled and are often moved elsewhere because companies can not find qualified applicants to fill them.

Some of the largest increases in government spending, and accumulation of debt to the point that it required 18 increases of the debt ceiling to keep up with it, occurred when President Reagan was in office. Spending is not new, our problem is not new spending, the problem is that interest on the national debt continues to go up and the programs that are already in place continue to grow. The only major new expenditures the last 4 years were Bush's TARP and Obama's stimulus package. Both were life lines designed to prevent the collapse of the U.S. economy and a second Great Depression. What is taking place now are desperate attempts by our government and financial institutions to save our economic system.

In your dreams!

Dominick, to a point you are correct, but the last two Presidents have not listened to the people, and have gone off on their own. For example the health care bill. My fear is that we are to far down the road, it won't be long now where our money is totally useless. Look at conversion rates,gas prices ,grocery prices. There's talk about dropping us from being the worlds currency.

The problem is the first stimulus was only at a maximum, half the size it should have been and a large portion of it was in tax cuts that during a recession people tend to tuck away not spend. Cutting spending now is going to make things worse, much worse. Yelling "cut spending" may get some of these critters re-elected but it's going to destroy our country for several decades to come. Bottom line, unless we get this economy jump started, however and whatever the cost, those grandchildren the GOP loves to hold up as poster children are going to be born into a much different America than we were. No, not the grandchildren of America's elected office holders, they'll probably be born into an even wealthier family than their fathers were. The grandchilden of the middle and low income families are the ones that will be born into the ugly two-thirds of America. The Pols better dump another 20B into the war on drugs because it's going to get much worse if this economy doesnt turn around. Idle hands are the devil's workshop.

Problem, we allowed the rich SOB's to sellout America. Now the Republicans/Teabaggers want to keep that system going. Folks, the rich SOB's have sent our jobs to communist china. Get a clue! Don't vote for the rich SOB party! Don't vote for the GOP.

Tax the rich. Share the profits, not just the pain.

To money madness,

Did you mean to ask how worthless your savings already are?

What happens when the money runs out for the salaries of those I just mentioned.

That money will be spent by the people who are doing the work, so it ends up back in the economy. It creates jobs not only in the literal sense but also in the sense that these aforementioned people end up spending money on goods, services, housing, etc. That leads to more money to businesses, etc.

Or we could just say we let our infrastructure crumble because we can't afford to pay it.

So the money earned by policemen, teachers, firefighters and construction workers are going to bring us out of this mess? Just answer how this Jobs "plan" is going to create any jobs for those of us NOT in those fields. IT WON'T!! Sorry, but the spending/purchasing by those alone will not be enough to create real sustainable jobs for the rest of the country. And when the stimulus money runs out to support those jobs, are we going to ask for a third stimulus, increasing the national debt another half trillion dollars?? No one is going to spend, not banks, not businesses, not people until they are confident the economy is heading in the right direction and that isn't going to happen for quite a while I'm afraid. The market is going to have to correct itself and its going to take years. Tax cuts like the republicans won't do it because businesses will just sit on the savings. Spending won't do it because the money always runs out. We're in this for a while...

Jason 1975 says "This will not do a thing to create jobs." Not for you and me maybe. But it is intended to keep President Obama and lots of Congresspeople employed for four more years! There is time for a couple more dances before the ship sinks.

Folks, we have to print money to spend money to have jobs. That's an inflationary tactic. It's the only way out of this mess. Soooooo, BOHICA!

We are not fixing the structural problems of our economy. Merely spending money on granite counter tops is not going to get us anywhere! Instead of creating scientists, engineers, workers, the population rides the wave of hope and optimism with more and more real estate agents, mortgage brokers, investment bankers. The new economy is hailed as the service economy. It is a new way of life.

People make money giving haircuts to each other. They then marvel at the GDP increase they create doing that. In the darkness, a little secret looms. Everyday more of their income goes to service existing debt.

When the entire money supply is borrowed from the banks, it has principal and interest to pay back. In order to pay interest, borrowing must increase exponentially. If borrowing stops, economy stops:

www.tradingstocks.net/html/jaguar_inflation.html

If deflation is allowed, the house of cards will crash. Thus the dream must continue at all costs. To achieve this the FED lowers interest rates to attract more borrowers. The government turns a blind eye on sub-prime. No 20% down. The more you borrow, the better it is. Liar loans are ok as long as you are a home buyer (aka good citizen). Credit card companies make 0% offers to any breathing soul just so that you can write a balance transfer check and inflate the money supply. Or deflation will start.

At the end, all futile efforts give way to the simple fact: We run out of borrowers. As the expansion of money supply stops, it becomes impossible to pay existing debt (which is the money supply), with interest. Principal exists, but interest portion is not created yet.

Weakest borrowers fail to earn enough to pay the interest. They foreclose, or go bankrupt. The money to earn to pay the total debt does not exist!

FED still claims it is goldilocks economy. As the crisis gets worse, the shortage of money becomes obvious. Some banks fail. Banks who now hold toxic consumer debt are bankrupt and are kept alive by accounting rule changes. FED prints money and gives it to the banks so that they remain solvent. FED keeps printing as deflation keeps showing it's ugly head.

www.tradingstocks.net/html/prepare_for_market_crash.html

Foreign creditors are disgusted at the FED's printing press. Eventually they refuse to lend money in US dollars. This causes market rates to increase for US treasuries. FED follows with higher rates. Credit dependent industries such as housing take another hit and practically become cash down markets.

Salaries stagnate even though consumer prices may go higher due to expensive imports. Unemployment exceeds Great Depression levels. Tax rates go higher to service existing public debt. Consumer economy is wiped out. People can only afford basic necessities. Service sector suffers. As the value of the money supply falls, US becomes poorer and poorer. As the debt is wiped out first via deflation, and then via printing press, we hit the bottom.

At the bottom people see no choice but to educate themselves to create real value again. If investment in science and technology starts to match other nations, then we start the cycle all over again. If not, then we stay at the bottom with a miserable life.

What is the solution? There is no solution. This is not about what we are going to do. This is about what we have already done. An entire nation cannot borrow from the future for decades and then hope that all will be fine when the future arrives. You can only save yourself if you were lucky enough to stay out of debt. At the bottom of the kondratieff cycle, it will be the time to borrow again. We are not there yet. How do we know? Stock market tells us:

www.tradingstocks.net/html/near_bottom.html

Excellent dissertation! The "bottom" isn't even within hailing distance yet...This is going to be very ugly for decades...

Behind curtain #3....Breton Woods III.....

Excellent! Finally someone who is willing to speak the truth no matter how ugly it is! The big money people all know that the bottom is going to fall out of this market someday. They have already planned their exit strategy. They will ride this market up as high as they can and then in the blink of an eye they will be out and the small investor will be left holding the bag. My suggestion is simply this... when things seem like they are going great and we are out of this depression, when the market is flying high and when everyone feels good times are here again .... GET OUT. Remember, there are three types of investors... bears, bulls, and hogs....and hogs get slaughtered! Don't be afraid to get out when things look their rosiest .... that is a sure sign that the big money will start pulling out! Good luck.

Wow! What a simply elegant strategy for investing in the market! We can now invest like the big boys (and girls) without fear. Hooray!

"Into the streets they will throw their very silver, and an abhorrent thing their own gold will become......." Ezekiel 7:19

It's not hiding anything! It's inflationary! BOHICA