Why the 700 billion or 700 trillion or 700 gazillion dollar bailout does not matter!

[abumbyanyothername]

If you watch the linked movie, "Money as Debt", you will see that there is no possible way to save the inherently flawed banking system.

You will also see that the solution is stunningly simply. We, the government, create our own money and use it to get people to do whatever we deem wise (build alternative energy, house the homeless, pay for health care, pay pensions to our elders). People exchange the money we create for whatever they want. Well, just watch the 47 minute movie/lecture with animation.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=7136315&mesg_id=7137327

http://video.google.com/videoplay?docid=-9050474362583451279

[truedelphi]

1. You are about to come under attack from the worst of the Conspiracy theorists

Those who defend the Federal Reserve.

Anyone who thinks this insitution, with its Heads of State like Greenspan promoting Globalization and the schlepping of our jobs overseas, and the idea that "SUpply SIde" economics is a good thing, and that consuming is more important than employment, all these ideas are in the toilet, heading South.

Yet if you say anything nasty about the Fed, these people rise up to say, "Oh you don't understand it."

I understand it all too well. It created the monstrosity that it was supposed to help our nation avoid, i.e. The great Depression, a mere sixteen years after its inception. (An inception that was never ratified, and so is indeed not even supposed to ahve legal standing.)

And the fed would have created this Monstrous Depression sooner, except that we had certain safeguards in line, such as the Glass Steagall act in place. They needed to demolish the safeguards first (And those safeguards had never come into place because of the Fed, but as a reaction to the Great Depression that the Fed empowered.)

[abumbyanyothername]

2. Let's try to keep this kicked until enough people get a chance to see it

It's a revolutionary movie, and in truth, we don't even need the government to go along with it.

[abumbyanyothername]

3. One more slef kick, and then I'll quit. nt

[Motown_Johnny]

4. Don't We, the government, create our own money and use it to get people to do whatever we deem wise

already?


That green stuff.. with the pictures of the old dead white guys

[abumbyanyothername]

5. Actually we don't

The Federal Reserve creates money by writing a check "on air" typically to buy US Treasury debt issued against future tax receipts.

This money is then multiplied many times over in the banking system.

The problem with the game is that debt needs to keep growing by the amount of interest payable on the debt, or else there is not enough money to pay the outstanding debt plus interest. This is exactly what is happening now, and this is why the bailout will fail regardless of the size.