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Originally posted by trancaholic Okay, thanks for clearing that up for me. I guess what you're saying is that the US gets by on loaning money from the private sector (through selling bonds)?

Essentially. And the biggest buyers right now are foreign central banks because they want to keep their currencies pegged to the dollar. However, everyone has their limits. The Chinese already switched to a basket of currencies, so you're starting to see some shifting attitudes.

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Me too. Even if Denmark isn't directly dependent on the US economic momentum, experience tells me that eventually we will suffer when it slows down. However, I would like to see some of the homophobic fools that voted for Bush be put in a situation where they would have to sell their mobile home.

Yea there is too much integration in the global economy now. If the US economy dropped, with no viable replacement, Canada and the EU would surely suffer.

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Retro ...

Another economic indicator warns of inflation:

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Inflation warning for U.S. economy Thursday, October 6, 2005 Posted: 0125 GMT (0925 HKT) NEW YORK (AP) -- The U.S. economy has received another inflation warning, with a survey of industry executives showing that energy costs drove prices higher in September while the services sector slowed. The report, released Wednesday, reinforced expectations that the U.S. Federal Reserve would continue to raise rates as the economy struggles with rising fuel costs aggravated by Hurricane Katrina. The Institute of Supply Management, which conducted the survey, said its non-manufacturing business activity index was at 53.3 percent in September, down from August's reading of 65 percent. The group's index of prices paid rose 14.3 points to 81.4 percent, the highest level and the biggest jump for the index in the eight-year history of the report. The survey, whose results chipped away at broader Wall Street stock indexes on Wednesday, found that many business executives are concerned about the continuing rise in oil and gas prices after Hurricane Katrina and about the toll rising energy costs will take on the economy. The Dow Jones Industrial Average skidded 123 points to 10,317 on inflation concerns stirred up by the ISM report. "That is the $64,000 question: if and when manufacturers and businesses decide they have to pass through these rising prices to consumers?" said Jerry Zukowski, deputy chief economist at Nomura Securities International Inc. "A lot of it is energy. We are clearly not out of the woods in terms of these price pressures." While the survey uncovered worries about energy prices, economists cautioned that some of its findings may have been exaggerated by the major storm. "These numbers were highly impacted if not distorted by Hurricane Katrina," said Hugh Johnson, chief investment officer at Johnson Illington Advisors. "Many members' comments expressed concern about the continuing rise in oil and gas prices," Ralph Kauffman, chair of the ISM's non-manufacturing business survey committee, said in a statement. Zukowski added that it may be another four or five months before the higher prices are passed on to consumers. "This gives you an idea of why the Fed raised rates in September," he said, referring to the central bank's eleventh consecutive rate increase announced last month. Clear signal Dallas Federal Reserve Bank President Robert Fisher warned Tuesday inflation was nearing the high end of the Fed's comfort zone - a clear signal that the Fed's short term interest rate hikes would continue. Further rate hikes would bring higher costs for consumers looking to borrow money for a car or a home. It also will make it more expensive keep an unpaid balance on a credit card. Expectations the Fed will try to snuff out any signs of inflation prompted one Wall Street firm to revise upward its forecast for short term rates to 4-1/2 percent from 4 percent by year-end. In an analysis published hours after the ISM report, Citigroup's Robert DiClemente said "there are hints that the (Fed's) task now has turned to pre-empting a more tangible inflation threat." Hurricane Katrina not only has ravaged numerous facilities involved in the production and delivery of oil, it also promises to create supply shortages because of goods being delivered to the stricken region. Respondents to ISM's September survey in the utilities industry said they were "concerned with possible shortages in utility products in the near future; for example wood poles, electric wire, transformers ... as they may be diverted to the states affected by the hurricane." Executives within business services, meanwhile, expressed "obvious concerns about the availability and prices of raw materials affected by Hurricane Katrina." Hurricane Katrina also slowed deliveries on roads and railroads and this helped to drive higher ISM's supplier deliveries index component, a gauge measuring the performance of suppliers to non-manufacturing businesses. The ISM survey found that commodities hit by price increases included aircraft fuel, beef, building materials, copper, and diesel fuel. The ISM's new export orders index fell 8.5 points to 55 percent, while its employment index dropped 4.7 points to 54.9 percent. According to the ISM, industries experiencing growth included construction, communication, mining, insurance, retail trade and utilities. Industries showing a drop in activity last month included real estate, entertainment, agriculture, business services and finance and banking, the ISM said. Wednesday's report on the services sector of the U.S. economy follows a survey of manufacturers published on Monday by the ISM. That survey also recorded a dramatic rise in its prices paid component. "It is troubling to see so many more purchasing managers, manufacturing and non-manufacturing, paying higher prices to their vendors," said Johnson. "It suggests that the Federal Reserve is faced with an economy which is weaker and inflation which is stronger. That is not a particularly good configuration." Some of the inflation pressures may already be pinching wallets and pocket books. FedEx Corp. said Wednesday it plans to boost rates on air shipments by the largest percentage in at least nine years and carpet and floor maker Mohawk Industries Inc., said last week Hurricane Katrina increased its raw material costs, forcing it to raise carpet prices 5 percent to 8 percent. http://edition.cnn.com/2005/BUSINES...n.ap/index.html

Let fiscallly irresponsible spending continue ...

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Originally posted by occrider Another economic indicator warns of inflation: Let fiscallly irresponsible spending continue ...

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The Federal Reserve Act and the National Bank Act is in its operation and effect contrary to the whole letter and spirit of the Constitution of the United States, confers an unlawful and unnecessary power on private parties; holds all of our fellow citizens in dependence; is subversive to the rights and liberties of the people. It has defied the lawfully constituted Government of the United States. The Federal Reserve and National Banking Acts and Sec. 462 (392) of Title 31, U.S.C. are not necessary and proper for carrying into execution the legislative powers granted to Congress or any other powers vested in the Government of the United States, but, on the contrary, are subversive to the rights of the People in their rights to life, liberty and Property. The aforementioned acts of Congress are unconstitutional and void and I so hold. ... The meaning of the Constitutional provision "No State Shall make any Thing but Gold and Silver Coin a tender in payment of debts" is direct, clear, unambiguous and without any qualification. This Court is without authority to interpolate any exception. My duty is simple to execute it, as written, and to pronounce the legal result. From an examination of the case of Edwards v. Kearzev, 96 U.S. 595, the Federal Reserve Notes (fiat money), which are attempted to be made a legal tender, are exactly what the authors of the Constitution of the United States intended to prohibit. No State can make these Notes a legal tender, are exactly what the authors of the Constitution of the United States intended to prohibit. No State can make these Notes a legal tender. Congress is incompetent to authorize a State to make the Notes a legal tender. For the effect of binding Constitutional provisions see Cooke v. Iverson, 108 M. 388 and State v. Sutton, 63 M. 147. This fraudulent Federal Reserve System and National Banking System has impaired the obligation of Contract, promoted disrespect for the Constitution and Law and has shaken society to its foundations. ... The Court is at a loss, because of the non-appearance of Plaintiff to determine upon what legal theory Plaintiff could possibly claim that the Notes in question are a legal tender. If they have any validity it must come from the Constitution of the United States and laws passed pursuant thereto. Inquiry was made of Mr. Daly as to what laws these Notes could be possibly based upon to sustain their validity. To aid the Court he presented the following: Section 411, 412, 417, 418, 420 of USC Title 12 and Title 31, USC Sec. 462 (392). ... Slavery and all its incidents including Peonage thralldom and debt created by fraud is universally prohibited in the United States. This case represents but another refined form of Slavery by the Bankers. Their position is not supported by the Constitution of the United States. The People have spoken their will in terms which cannot be misunderstood. It is indispensable to the preservation of the Union and independence and liberties of the people that his Court adhere only to the mandates of the Constitution and administer it as written. I therefore hold the Notes in question void and not effectual for any purpose. January 30, 1969 BY THE COURT /s/ Martin V. Mahoney MARTIN V. MAHONEY JUSTICE OF THE PEACE CREDIT RIVER TOWNSHIP SCOTT COUNTY, MINNESOTA

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Originally posted by Trancer-X

Heh, while we both may agree on reckless deficit spending issues, I'm rock solid on monetary policy. A return to the gold standard imo would result in massive deflation and recessionary pressures due to the immense liquidity reduction. Put simply, the value of the economy is worth more than all the gold and silver in the entire world. You can't peg a figurative infinetely growing economy to a finite material and not expect there to be financial crises. Plus I shudder to think of an economy attempting to run without any fiscal and monetary policy ...

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Originally posted by occrider Heh, while we both may agree on reckless deficit spending issues, I'm rock solid on monetary policy. A return to the gold standard imo would result in massive deflation and recessionary pressures due to the immense liquidity reduction. Put simply, the value of the economy is worth more than all the gold and silver in the entire world. You can't peg a figurative infinetely growing economy to a finite material and not expect there to be financial crises. Plus I shudder to think of an economy attempting to run without any fiscal and monetary policy ...

I would never suggest going back to the Gold Standard. I am no economist but I do know for a fact that they can manipulate the price of gold as well as any other commodity. Case in point, the Hunt Brothers and Silver Thursday

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...I lived through the conditions which led up to what is known as the crash of 1929. I witnessed what was tantamount to the collapse of the structure of the United States as a whole. Much to my surprise, I was confronted by my superiors in the middle of the panic in which they were immersed. I was confronted with the question: “Norm, what do we do now?” I was thirty at the time and I had no more right to have an answer to that question than the man in the moon. However, I did manage to say to my superiors: “Gentlemen, you take this experience as proof that there's something you do not know about banking, and you'd better go find out what that something is and act accordingly.” Four days later I was confronted by the same superiors with a statement to the effect that, “Norm, you go find out.” And I really was fool enough to accept that assignment, because it meant that you were going out to search for something, and nobody could tell you what you were looking for, but I felt so strongly on the subject that I consented. I was relieved of all normal duties inside the bank and two-and-half years later I felt that it was possible to report back to those who had given me this assignment. And so, I rendered such a report; and, as a result of the report I rendered. I was told the following: “Norm, what you're saying is we should return to sound banking,” and I said, “Yes, in essence, that's exactly what I’m saying.” Whereupon I got my first shock, which was a statement from them to this effect: “We will never see sound banking in the United States again.” They cited chapter and verse to support that statement, and what they cited was as follows: “Since the end of world war one we have been responsible for what they call the institutionalizing of conflicting interests, and they are so prevalent inside this country that they can never be resolved.” This came to me as an extraordinary shock because the men who made this statement were men who were deemed as the most prominent bankers in the country. The bank of which I was a part, which I’ve spoken of, was a Morgan bank and, coming from men of that caliber, a statement of that kind made a tremendous impression on me. The type of impression that it made on me was such that I wondered if I, as an individual and what they call a junior officer of the bank, could with the same enthusiasm foster the progress and policies of the bank. I spent about a year trying to think this out and came to the conclusion that I would have to resign. - Norman Dodd, Research Director of the US House of Representatives' Reece Commission (House Committee on Un-American Activities) http://www.realityzone.com/hiddenagenda2.html

I have the video in which this is the transcript of. I suggest that you watch it one day as it's quite revelatory.
I could even send it to you if you'd like.

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posted I have the video in which this is the transcript of. I suggest that you watch it one day as it's quite revelatory. I could even send it to you if you'd like.

Or you can get it here:

http://www.torrentreactor.to/torrents/view_39398

(I'm pretty sure that's the one with the Norman Dodd interview)

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"Learn, child, to catch a hint through whatever agency it may be given. 'Sermons may be preached through stones." - Helena Petrovna Blavatsky, Letters from the Masters of Wisdom, first series, p. 74, letter 31