Rules of the Road

[lrice]

Today a congress lady pointed out the "phoney money" some wanted to save with a $700 Billion bail-out.


The question remains, will we pay the way the financial house of cards wants us to do,
or will we avoid that quicksand trap and just go through recovery the substantial way, spending that 700 Billion on hard asset producing endeavors...instead of paying for paper derivatives of paper derivatives of paper bookkeeping entries.

In the last 30 years, Congress has bailed out companies with tangible products on several occasions.

But this bailout is for a pyramid of expanding money, called by some "rehypothecated" funds. Basically meaning, after you put a dollar into my bank, I re-loan it out to 10 more banks, based on the theory that you won't be asking anytime soon for your whole dollar back. Then those ten banks, use the book-keeping entry they made of "phoney-money" in their banks to buy notes from other banks, ie put the money in 100 more banks (as a bookkeeping entry) on which interest is charged. And then make special "derivatives" to sell to financial speculators on what the interest rate will be when the loan is closed. All speculation on a pyramiding house of cards (paper entries of money multiplying from one "financial house" to another.

This, piled on top of the government authorized printing press of dollars and release of bonds, and extension of credit (by paper bookkeeping entries of "phoney money") has caved in on itself, and now America must pay.

That's the essence of what happened.
Reference: Creature from Jekyll Island
Reference: Ron Paul, he wrote endorsement on above book title
Reference: John Birch Society bookstores, many titles on this
Reference: www.ChristianParents.com/moneym0.html