State of the Union

[laoilman]

Got this e-mail today from a friend and thought I would share it.



It's a slow day in a Mamou, Louisiana . The sun is beating down, and
the streets are deserted. Times are tough, everybody is in debt, and
everybody lives on credit.

On this particular day a travelling Shreveport salesman is driving
through town. He stops at the Hotel Cazan and lays a $100 bill on the desk
saying he wants to inspect the rooms upstairs in order to pick one in which to
spend the night.

As soon as the man walks upstairs, Bosco,the owner, grabs the bill and
runs next door to pay his debt to Boudreaux the butcher.

Boudreaux takes the $100 and runs down the street to retire his debt to
the Trosclair the pig farmer.

Trosclair takes the $100 and heads off to pay his bill at T-Boy’s
Farmer’s Co-op, the local supplier of feed and fuel.

T-Boy at the Farmer's Co-op takes the $100 and runs to pay his debt to
the local prostitute, Clarise, who has also been facing hard times and has
had to offer her "services" on credit.

Clarise rushes to the hotel and pays off her room bill with Bosco, the
hotel owner.

Bosco then places the $100 back on the counter so the travelling
salesman will not suspect anything.

At that moment the salesman comes down the stairs, picks up the $100
bill, states that the rooms are not satisfactory, pockets the money, and
leaves town.

No one produced anything. No one earned anything. However, the whole
town is now out of debt and now looks to the future with a lot more optimism.

And that, my friend, is how the United States Government is conducting
business today.

[MrGiz]

Phuck Left / Right. . . . . Right or Wrong. . . . Democrat or Republican. . . . what I wanna know is.....
is Obama Agency? or Independent??

Giz

[MrGiz]

Oooooops....double post!!

Oh Well..... just like some other's we're not quite sure about.... all we really know, is that he's corrupt as Hell!


Giz

[laoilman]

I would definately say agency but the question is which one?

[dilbert firestorm]

Originally Posted by MrGiz

Phuck Left / Right. . . . . Right or Wrong. . . . Democrat or Republican. . . . what I wanna know is.....
is Obama Agency? or Independent??

Giz

if ya ask me, he's a double agent!

God help us all if hes' not on the ball, cause this will happen to us - see emoticon..

[dilbert firestorm]

Originally Posted by laoilman

Got this e-mail today from a friend and thought I would share it.



It's a slow day in a Mamou, Louisiana . The sun is beating down, and
the streets are deserted. Times are tough, everybody is in debt, and
everybody lives on credit.

On this particular day a travelling Shreveport salesman is driving
through town. He stops at the Hotel Cazan and lays a $100 bill on the desk
saying he wants to inspect the rooms upstairs in order to pick one in which to
spend the night.

As soon as the man walks upstairs, Bosco,the owner, grabs the bill and
runs next door to pay his debt to Boudreaux the butcher.

Boudreaux takes the $100 and runs down the street to retire his debt to
the Trosclair the pig farmer.

Trosclair takes the $100 and heads off to pay his bill at T-Boy’s
Farmer’s Co-op, the local supplier of feed and fuel.

T-Boy at the Farmer's Co-op takes the $100 and runs to pay his debt to
the local prostitute, Clarise, who has also been facing hard times and has
had to offer her "services" on credit.

Clarise rushes to the hotel and pays off her room bill with Bosco, the
hotel owner.

Bosco then places the $100 back on the counter so the travelling
salesman will not suspect anything.

At that moment the salesman comes down the stairs, picks up the $100
bill, states that the rooms are not satisfactory, pockets the money, and
leaves town.

No one produced anything. No one earned anything. However, the whole
town is now out of debt and now looks to the future with a lot more optimism.

And that, my friend, is how the United States Government is conducting
business today.

Interesting take on this situation with the U.S. debt.

I know the U.S. govt. & the FED plays game with the money & the accounting that goes with it, but how accurate is this analogy as it relates to our debt situation?

[MrGiz]

Guess I'd have to say The Chicago Socialist Agency

Giz

[pornodave69]

Originally Posted by dilbert firestorm

Interesting take on this situation with the U.S. debt.

I know the U.S. govt. & the FED plays game with the money & the accounting that goes with it, but how accurate is this analogy as it relates to our debt situation?

This would actually be BETTER than what is actually going on. Right now, we are monetizing out debt. I don't understand it 100% but google it and you can find out more. But basically what's happening is this:

The government does not have the power to issue new currency to pay its bills. It must instead finance the deficit by issuing new bonds and selling them to the public to acquire the necessary money to pay its bills. However, if these bonds do not end up in the hands of the public, the only alternative is for them to be purchased by the central bank. For the bonds not to end up in the public hands the central bank must conduct an open market purchase. This action by the central bank increases the monetary base through the money creation process. This process of financing government spending is called monetizing the debt. Monetizing debt is a two step process where the government issues debt to finance its spending, the central bank purchases the debt from the public and the public is left with high powered money.

When governments reach the point where they are borrowing to pay the interest on their borrowing they are coming dangerously close to running a sovereign Ponzi scheme. Ponzi schemes have a way of ending unhappily. To get out of the Ponzi trap, governments will have to raise taxes, or cut spending, or monetize the debt--or most likely do some combination of all three.

It also leads to inflation and lessens the dollar's value, which means we need more money to but the same stuff because a buck isn't actually worth a buck.

[Jacquie]

To quote my dear Ron Paul, "Continuation of the same inflationary policies that led to this disaster cannot revive the current system or bring back the Bretton Woods system of 1944. They are finished. What it can do is destroy the dollar... Since the destruction of the dollar will create, mainly out of fear and lack of any other ideas, an even greater collapse of the international financial system.
The evidence is abundant that the Fed is at fault and should be abolished. So far, though, all Congress has done is give it even more power as the principal central economic planner."

Very, very sad words.

[docdavid49]

Got to love Ron Paul... by the time you get out of school Jacquie there won't be any need for lawyers..... no legal system.

Not only sad words but true and no end in sight.

[Jacquie]

Ah, well, then I'll have to marry into money/a man with lots of gold. I'd love to do pilates and tennis all day.

[docdavid49]

Gold, silver, diamonds, whatever as long as it is not paper. I worry, hope and pray.

[laoilman]

I agree things are in a sad state but can be rectified in Nov if we take care of business. We should clean house in Washington and make some attempt to straighten out this mess we're in.

[docdavid49]

Originally Posted by laoilman

I agree things are in a sad state but can be rectified in Nov if we take care of business. We should clean house in Washington and make some attempt to straighten out this mess we're in.

Straighten out this mess WE'VE ALLOWED OURSELVES TO GET INTO...

[dilbert firestorm]

Originally Posted by pornodave69

This would actually be BETTER than what is actually going on. Right now, we are monetizing out debt. I don't understand it 100% but google it and you can find out more. But basically what's happening is this:

The government does not have the power to issue new currency to pay its bills. It must instead finance the deficit by issuing new bonds and selling them to the public to acquire the necessary money to pay its bills. However, if these bonds do not end up in the hands of the public, the only alternative is for them to be purchased by the central bank. For the bonds not to end up in the public hands the central bank must conduct an open market purchase. This action by the central bank increases the monetary base through the money creation process. This process of financing government spending is called monetizing the debt. Monetizing debt is a two step process where the government issues debt to finance its spending, the central bank purchases the debt from the public and the public is left with high powered money.

When governments reach the point where they are borrowing to pay the interest on their borrowing they are coming dangerously close to running a sovereign Ponzi scheme. Ponzi schemes have a way of ending unhappily. To get out of the Ponzi trap, governments will have to raise taxes, or cut spending, or monetize the debt--or most likely do some combination of all three.

It also leads to inflation and lessens the dollar's value, which means we need more money to but the same stuff because a buck isn't actually worth a buck.

one thing they're not doing in completing this "circle" is "cutting spending".

is acquistion of power that important than being fiscally responsible?????