For some reason you appear to have an attitude and for that I am sorry if I offended you. Clearly neither of us really know what is actually going on inside the government and or where all this money is going and or to whom and or what interest rate our true debt is at.

I do not believe I ever stated I knew or know everything and I believe this is why I solicited your input. I do understand just how busy you are and we all are and just how valuable all our time is… especially when we are all attempting to survive in this world of mounting debt. This debt just does not seem to go away for most of us peasants…or at least for those that are the producers and or income earners that acquire property through loans. Even the property that our homes sit on is just leased to us…property tax….never goes away and seems to only go up year after year.

If we were to go to the new Amero and the North American Union the government would
have to consolidate all these banking institutions…like they are doing now. Here is a video to check out…not sure if it is all true…but you might like it.
http://video.google.com/videoplay?docid=-594683847743189197

If you ever find out the real percent please let me know…and I wish you the best.

To know the truth is to know power of the lie… often disguising it.

I asked you what I thought was a question that you could answer…It appears that you can not give me the total percent or percentage of debt interest to be payed back for every dollar generated as debt and or borrowed to finance the countries “federal government operations and debt” and or current projected borrowing practices. It is said we have 59 trillion in future not financed obligations already coming. So this is not a game or an interpretation of some kind of a game that I am playing…I am looking for the truth. If we owe 60 trillion what is the true interest to be repaid…6%+ or what?

I understand that some people think money grows on trees…and based on what I have seen this government and federal reserve do recently…they surely do. So these actions will affect every future generation for many years to come…if not… then the system needs to be dismantled because it is funny money that they are printing for those in power control positions only…while we the actual holders of the debt….get nothing. Get the point Sherlock!

The 12 Federal Reserve banks provide the financial means to operate the Federal Reserve. Each reserve bank is organized much like a private corporation so that it can provide the necessary revenue to cover operational expenses and implement the demands of the board. Member banks are privately owned banks that must buy a certain amount of stock in the Reserve Bank within its region to be a member of the Federal Reserve System. This stock “may not be sold, traded, or pledged as security for a loan” and all member banks receive a 6% annual dividend.[27] These member banks must maintain fractional reserves either as vault cash or on account at its Reserve Bank; member banks earn no interest on either of these. The dividends paid by the Federal Reserve Banks to member banks are considered partial compensation for the lack of interest paid on the required reserves. All profit after expenses is returned to the U.S. Treasury or contributed to the surplus capital of the Federal Reserve Banks (and since shares in ownership of the Federal Reserve Banks are redeemable only at par, the nominal “owners” do not benefit from this surplus capital); the Federal Reserve system contributed over $29 billion to the Treasury in 2006.[29]
http://en.wikipedia.org/wiki/Federal_reserve

You still have not answered my question and that is OK…since the Government can never get out of debt…the citizen will never be able to get out of debt and is actually… a legal slave through the taxation programs set up by the government to pay back a debt that can never be repaid. This makes the entire system a scam and one based on similar Ponzi Schemes set up just like… say social security.

Since this Federal Reserve system appears to be severely broken at best it needs to just go away and the citizen needs to stop paying any taxes on a debt that not only can not actually be repaid… but is based on fraudulent behavior of a government that does not represent them.

You can not base any government system on future growth and expect that system to be sound from a controllers aspect… when the system itself has no product or way of funding it self or its operations. The enslavement of its citizens and the destruction of the planet is the by-product of these types of mental mind games and control mechanisms played directly on the populations of the world at large.

We appear now to be reaping the benefits of a poorly played game designed purely for the elite population to control… and tied directly to the government…which by the way will have no foreclosures on its government owned lands or buildings… while her citizens are kicked to the curb unable to pay their mortgage loans. Here the whole time the government has had no intention of ever repaying its own debts….and now only looks to rape the citizens for more taxation to create more government income to pay for what…interest on more debt and runaway spending? Clearly the entire Federal Reserve System is and was corrupt from its initial conception.

We see a little confusion here. Lets revisit the basics . The authority to propose and authorize federal government expenditures is held by the Congress. Although the President proposes a budget, the true authority requires the Congress to propose and approve a budget bill and send it to the President. The Congress not only authorizes the budget, it also authorizes the total amount of Government debt. Just as an historical aside, the proposal made by the President has never contained pork. Pork is added by Congress when it proposes its budget. The President’s budget is prepared by Federal Departments following Presidential guidelines and is refined before completion by the Office of Management and Budget. It follows a multi year strategic plan determining Government needs and plans, contains recommendations for cutting Government expenses such as eliminating Government programs that are obsolete or redundent. The President’s budget has for years warned of the sub-prime market in general and Fannie Mae and Freddie Mac in particular. These warnings in addition to warnings from the Comptroller of Currency and the GAO have been ignored by Congress.

In any event, the Budget comes from Congress. It is up to the Departments of the Government to stay within these parameters and carry out the directions of Congress. Spending, such as the “Bridge to Nowhere” is specifically required by Congress and the Departments, by law, must carry out the mandate. The Department of the Treasury is responsible for handling the cash flow of the Government. It consolidates Government revenues such as taxes, payment of Government direct loans, fee income and sale of assets into a General Fund which is used to pay the cost of Government. Revenues flucuate during the year. If revenues exceed costs, the Treasury retires debt. If revenues fall short of needs, the Treasury borrows money to make up the short fall. When the Treasury borrows it enters the private market for Government bonds. The private market for Government debt bids competively for the right to buy the Government’s debt. Many entities make up the market for Government debt. These include, but are not limited to foreign governments, bond traders, bank trust departments and even private individuals. All of these entities are interested in investing in something that carries no risk of default and therefore are willing to accept a lower rate of interest

There is no magical 6% that anyone earns. Treasury interest rates for debt are determined by auction. They could be 3% or they could be 10%, it depends on the market’s willingness to hold debt that has no risk of defaulting.

No one makes 6% by printing money. Money is printed to (1) replace old or damaged bills and (2) to maintain a level of liqudity in the economy.

If we understand the meaning of your term “true debt in interest” you are asking for the percentage rate that tax payers will be required to repay for Government debt. The tax payer will be required to pay the exact interest rate, determined by competitive auction, on the debt instrument issued by the Government.

Will the debt ever be repaid? Doubtful. Could it be? Sure. Should it be? No. For example, say the Government takes in 2 trillion in tax and other revenues and expends $2 trillion to run the Government and maintain debt service on its borrowings. We will call this a balanced budget. There is very little in the budget considered “discetionary”, most goes to debt service, the military and to fund other Government promises to pay such as Social Security. Then we have a war or a natural disaster. We could keep the budget in balance by slashing expenses in funding for some part of Government to pay the cost of the war or natural disaster. For example, we could cut off medicare. We doubt that would be a popular choice. Therefore we borrow to handle the short fall. If the economy continues to grow, increased tax revenues will pay off this debt over time.. At least that is the way it is supposed to work. Unfortunately, Government expenditures have continued to grow at a faster pace than tax revenues have increased.

How much debt can we afford? This is usually calculated by comparing the debt to the Gross Domestic Product, roughly the value of what our economy can produce. WE are in better shape than most countries, but in worse shape than our economic competitors.

So who is making 6% profit for printing money for the USA ….and will the country ever get out of debt? If 6% is raked off the top immediately to print the money…what is the rate of interest or profit on the debt instrument then sold to the lender of the money ie. bonds, treasuries etc. for every dollar borrowed…what is the true “debt in interest” to be paid back for every dollar borrowed…that inturn creates the debt? Thanks

Apparently you read only one half of my discussion. I said inflation was a push for those rich and liquid enough that they could match inflation by swiching deposits.
As to the other half, I agree with you completly. Inflation is a killer for fixed income families or for income that lags inflation.

No the banks don’t profit from inflation. Typically, for a loan of average risk the bank lends at a rate that averages 3 percent over their marginal cost of money (MCC).
MCC includes the weighted average of their checking, savings and cd deposits plus the cost of their own borrowings. The 3 percent is divided into 1 percent profit, 1 percent for losses and 1 percent for managing the debt. This has been true for the last 100 years.

Banks charge a little more for car financings and a lot more for credit cards. This is because these loans are riskier than say second mortgages. When inflation hits the banks costs of money goes up, in other words they must pay more interest to attract deposits. Their loan values go down unless they are tied to inflation. Even these loans decrease in value because they lag inflation and become more risky at higher interest rates.

No Lew, no one including the Government makes a market in Federal Reserve stock. Think about the bank’s stock as an equity contribution. Initially the contribution was made in gold, Eventally this changed. The amount of stock the banks own is a function of their capital or the equity in each bank. As their capital goes up, their contribution grows. No one buys or sells this stock unless there is a merger or takeover, even then it is simply transferred to the surviving bank.

I wish that this Country’s debt were confined to the Fed stock. It is not. For example, the Chinese own about a half trillion in Treasury bonds. One half of our national debt is owned by foreign countries. Most of this debt is conveyed electronically, there is very little actual cash in the system.. Hopefully most of this debt will stay over seas. If it is cashed in we will see a lot of dollars being printed.

Isn’t it obvious that the minimum wage, for example, (which in many cases is actually the “maximum” wage companies will pay) does not keep up with inflation?

Isn’t it also true that the banks, which don’t produce anything are the real winners in any inflation environment? They loan other people’s money at interest rates or fees far above the the originator’s rates, no matter what they are.

Isn’t the “intentional” and universal minimum 5% unemployment rate the hedge against inflation ever being a negative sum gain?