This is a Comment I made on the CBS online newscast for 9-18-13--- [The ADDENDUM below is not part of the original Comment.]
ScottHaley says---
1. RE: Fed to keep interest rates low by buying more bonds--- Ask yourself, where does the Fed get the money to "buy bonds"? Is it from the Treasury (fiat printing, out of thin air), or from its member banks (which, according to a 1984 Fed Court case, "are not Federal instrumentalities, but are private corporations")? ["Buying T-Bills or Gov't Bonds" is Gov't-Speak for loaning the Gov't money.] Who gets the interest payments when the Fed "buys bonds"?
2. The Fed Reserve is authorized by the 1913 Fed Reserve Act, a LAW. That Law allowed the Congress to abrogate one of its required constitutional duties: to regulate the value of our money. But there's a problem with that, long ignored by the DC politicos: no law supercedes the U.S. Constitution. Politicians know that full well, but ignore it. This issue is important because Congress supposedly answers to the People, but the Fed (according to Greenspan on a PBS interview back when) "answers to no one"..."no one has authority over us".
3. RE: Obamacare--- According to my research and what was reported on CBS News, a policy via Obamacare tailored to me personally would cost approximately $600 per month. I can't afford a policy for $100 per month. So much for the grand benefits of Obamacare...at least, in relation to me.
4. RE: shutting down the Gov't v. raising the Debt Ceiling--- For the past 80-85 yrs or so, the Fed Gov't has been adhering to Keynesian Economics...essentially, institutionalized deficit spending. It's not a matter of the Gov't being bankrupt in the future; it's already bankrupt, & has been for decades. The politicians have no intention of ever eliminating the National Debt; the Debt Bubble will continue to grow until, like all bubbles, it eventually bursts. The recent "sequestration" efforts did nothing substantial to reduce spending; those efforts only addressed the proposed INCREASES in spending. Even those are being exempted by Congress passing laws to that effect. Deficit spending is continuing, & will continue, until the Debt Bubble bursts. Then it's goodbye Keynes... & our economy...game over.
ADDENDUM: Since going completely off the Gold Standard in 1971 (under Nixon), the only reason the dollar has any value at all is because it is the world's reserve currency. With ongoing institutionalized deficit spending and the ever-increasing national Debt Bubble, inevitably the time will come when other countries decide that the dollar should no longer be the world's reserve currency. That's when the bubble will burst; countries will dump their U.S. dollars. That will cause our economy to tank. Game Over. What can be done to prevent that scenario? In my opinion, nothing substantial---the propaganda favoring Keynesian Economics is too thick. Will we recover from the biggest crash in history? I believe so, but it will be an incredibly long, difficult and painful recovery.
