A very VERY modest proposal: For preventing the middle class of America from being a burden to the Banks and Federal Government

It is indeed melancholy to drive our economically sensible SUVs down the main street of modern America and see foreclosure signs, beggars on the streets who at one point in time may have held highly esteemed occupations, senseless violence, over 40 million+ Americans on food stamps, and indeed very long breadlines as people scramble to make daily ends meet.

I think it is agreed by all parties that the unsustainable amount of debt, insolvent banks, and bankrupt federal government is the root cause of the strife and daily despair experienced by Americans all over this great nation. It should, without a doubt, be the common goal of the people to find an inexpensive and sustainably sound solution to this crisis. I believe that I have found a simple solution that would transform all citizens into preservers of this great nation.

My solution is far from only providing ease to the bankers, financial elite, and federal government. As we can see now, according to statements recently released by the Federal Reserve, our economy is on a path for modest growth thanks to the unprecedented intervention and stimulus in the markets by said central bank. Quantitative easing has worked wonders, as newly non industrial and non productive jobs have started reemerging and are now available to the general public. The reality is, this is truly not enough to ease the despair and hopelessness many American's are experiencing.

My mind has wondered for many year in how to deal with this grossly outrageous situation that we the citizens have put ourselves in. But this morning, I woke up and was enlightened by an idea that was available to any and all citizens that have a pulse, the credit card!

In the past, the credit card was only used to buy things that the citizens could not afford but really wanted. As real wages have steadily decreased, consumers turned to debt instead to continue down the road of a very high standard of completely sustainable living. When the prices of commodities and assets went up, while wages decreased and only decreased, it only made sense to continue the consumption binge with this debt. How can a person live without Ipads and not watching dancing with the stars on a 50 inch flat screen TV in high definition when it was completely out of their budget?

However, it is with a very melancholy tone that I announce that this completely sustainable lifestyle has hit a brick wall, because for some reason, people are losing their jobs and houses. It is in the job of the citizen to not question why this has hit a brick wall, but listen to our political demagogues and mainstream media that to get out of this crisis, we must spend our way out.

However, my new brilliant scheme is much more productive that just buying these much needed and extremely necessary assets with debt to grow our economy. Instead, we the people can use our credit cards to directly pay the Treasury Department through this website generously provided by the Federal Government. https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=23779454. Notice that on this website, there is a function in which you can pay off the national debt with your credit card! According to my research and analysis, the average American has roughly 10 credit cards. If we all band together, and in no due time, the national debt can be paid off if we all max our credit card simultaneously! No more talk of raising the debt ceiling, no more foreclosures, no more unemployment, only the continuation of our highly sustainable standard of living is the result!

note: please make sure you use a credit card that is attached to a too big to fail bank or financial entity to avoid any issues. As a last result we can always ask China for help.

QE binge and its affects

The whole world is playing a game of financial fiat musical chairs on a tilt-oh-whirl that is spinning to fast it gives it a sense of stability, artificial gravity if you will, but the bolts and structure are eroding exponentially. It's a perfect storm of government failure and banking greed about to change the face of the earth...what might have been a worldwide systematic crash due to fraud and misallocated resources has now been exasperated by Benocide Bernanke's monetary polices, coupled with wallstreets symbiotic relationship with the federal government, which is bringing the world wide foundations of civilization to its knees

The whole US monetary system is a ponzi scheme in which money is created out of debt. There is always more debt in the system than there is money to pay off the debt. New money must always be created to pay off the old debts, which are compounding. This means that money creation in itself, is exponentially increasing, as is the debt. It is inherently inflationary and punishes savers, which in turn undermines capital investment and promotes speculation which leads to even more inflation. This system is clearly unsustainable, and will inevitably reach a tipping point in which even if the citizens are taxed 100% of their income, it is not enough to even pay the interest on the new money creation. With National debt at $14 trillion, social security and medicare at $77+ trillion, and fannie mae and freddy mac debt (which is kept off US balance sheets, along with medicare, medicaid, and social security) the total debt balloons to multiple times the US GDP.

We have reached that tipping point after 40+ years of this fiat system. The only choices are a US default on the debt, or a slow inflationary default on the debt. The Fed Reserve has chosen the latter with its QE policies. A slow inflationary default on US debt by printing money and saying "here is the money we owe you!"

With QE the federal reserve is trying to get rid of banking debt and national debt via printing money and buying treasuries from dealer banks (such as JPM, Morgan Stanley, Goldman Sachs, etc.) The Federal Reserve is now the largest single owner of US debt, surpassing China this last fall. These banks are investing excess liquidity into the equities market, which is a huge reason why stocks have been rallying despite 3 years straight of mutual funds pulling out of the stock market. The powers that be have manipulated the economy in a way that the only way markets can function is ever increasing deficit spending, since the government must always borrow more and more because expansionary monetary system requires it.

The thing about QE is that excess liquidity that the banks got from dealing treasuries to the Fed are pouring into commoditties, causing inflation. Inflation fears are causing long term treasury yields to rise, meaning people are starting to dump them. It's a two sided coin as Ben must impose QE to keep the ponzi scheme together, however the money printing he is creating is pouring into commodities and adversely affecting the bubble he has blown in treasuries.

Inflation hasn't been felt too bad here yet, minus food inflation and commodities. This is because with world reserve currency status, the US can print, monetize debt, then export the inflation to the rest of the world. US monetary policy is the number one driving force behind these food inflation riots world wide, despite Paul Krugman insisting to his readers that it is global warming and not his own monetary policies he supports.

There is no end in site for QE, no exit strategy at all, with exponentially increasing money and debt, we have passed the point of no return. Who is the Fed going to unload these treasuries to at the rate of $15B per day? Ben Bernanke, in his hubris and desperation to keep the ponzi going, has blown the last bubble he can, the treasury bubble. This is the most dangerous bubble as when it bursts, it won't be an asset like housing, or equities like in the nasdaq bubble, thats get affected, but the currency itself. The dollar becoming toilet paper.

The problem Bernanke faces is that he might have to sacrifice the equities market, hoping people pour their liquidity into treasuries (the standard fall back) to keep the bubble alive, or they could pour it into commodities, which would spur a treasury dump and massive inflation.

It is possible that this system can go on for years, as the world has no alternative to the dollar and the US military industrial complex protects the system in which the world must accumulate dollars because all OPEC nations require oil be purchased in dollars. They are trying all they can to get out of the US dollar ponzi scheme run by our overlords..

When QE2 ends in June, I expect there to be plans for QE3, which will buy state and muni bonds, and QE will go on forever until the treasury bubble bursts or the dollar loses its reserve currency status as it is inflated away to toilet paper.