Sunday, November 28, 2010

California Dreaming In The QE2

I love California. 
I wish  to remain in California as I have for all of my life except for vacations. We all are all about to experience the so called Austerity Measures or QE2 "Quantitative Easing 2". A simple cartoon probably on the last page of my blog does a pretty good job of explaining this.  The first Quantitative Easing  happened at the end of the Bush era with the AIG and bank bailouts. 
What happens is the President and the Federal Reserve print a lot of money and give it to the banks.  Congress has nothing to say about this stuff unless they are motivated by the electorate or the corporations that pay for their campaigns that keep them elected.

I am not an economist but from what I know, Green Backs or dollars called green backs can be printed to deal with this kind of money manipulative system that requires sudden bursts of capital for large scale infrastructure projects, artificial bubbles or in times of war.  See History.  Read about the green backs. Instead of printing money and giving it to Goldman Sachs and then buying it from them at a percentage that goes to Goldman Sachs, they could just print money that is guaranteed for taxes and government contracts.  This kind of money could be used to rebuild the US infrastructure and create jobs that would create demand for goods that ultimately would help to restart our economy.

Could green backs pay down the debt as we inflate our way out of this mess?  I don't know.  But we are spending 600 billion dollars for QE2 (Not the ship) , now and more is planned for the future and all totaled I am told that the dollar is worth about 20 % less that it was in  2007.

Green backs don't get sold to Goldman Sachs and there is no interest to the government when they are issued.
Surely someone out there knows more about this than I do.  Why aren't issues of green backs being considered for debt relief in the US?  Why are we paying the Goldman Sachs?

With that rant, Charles Douglas of the
Sentinel,  turned me on to a good ( or sad) piece from On The Edge With Max Keiser called California Dreaming.  After watching both parts I just had to say, Isn't there another or better way  to fix the country and the ecomomy, than giving money to the banks that gambled it away?

Should California start a State Bank like
North Dakota?

Part 2

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