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View Diary: Wall Street is Doing it Again: The Looting of America Continues (128 comments)

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  •  Classical economic theory is a crock-- (9+ / 0-)

    invented by people who arrived with the prejudice that humans prefer leisure and must be bribed to work. Since bribery is wrong, those who labor and actually make things, were categorized as immoral from the start.

    As far as the federal government, which issues our own currency, never running out of money, you can look to Greenspan, Bernanke and Paul Krugman for that information. It is fact. States and municipalities are, of course, in a different situation, because, like the ordinary household, they have to rely on the issuers of currency. The nations which have recently adopted the Euro as a common currency are still discovering what our several states have known for a long time--havng the currency controlled by an unreliable or irrascible autority can be a real pain. Their sovereignty is severely undermined. But then, the Bank of England isn't making it easy for the U.K. either.

    The bankers have long enjoyed being able to take a cut of interest out of every public dollar spent, especially since the Congress determined that the Treasury should send the dollars through the Federal Reserve Bank before it is made available to be used for a public purpose. Making dollars available to be lent and borrowed before they are used in the exchange of real goods and services was a nifty trick -- a boon to Wall Street at the same time the Congress got to pretend that managing the public purse is not really its obligation.

    The value of the dollar, our certified debt, depends on the good faith and credit of the American people. Our representatives, assembled in Congress, threatening not to pay our debts may put a dent in that credibility, but the situation isn't in any way comparable to Zimbabwe, where the "ruling power" printed bank notes and distributed them to cronies who had nothing of value to buy or sell. These notes have some collectible value on Ebay, but day to day transactions in Zimbabwe have to rely on handshakes, U.S. dollars or South African rands.

    Wherefor the myth? Our Congress was hoping to use the dollar as an instrument to impose its will on the people. They likely feel stressed by the notion that government BY the people might be insisted on and are searching for some handle by which to rein in the unruly "mob." Us.

    We organize governments to deliver services and prevent abuse.

    by hannah on Fri Feb 01, 2013 at 08:08:30 AM PST

    [ Parent ]

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