The national debt and the Fed…
Before I get in to an overdue piece on the federal reserve I would like to mention that today congress’s first day back in the new year the republicans were touting a bill authorizing money to carry the government for three months. The reason they appeared on any news cast that would have them was because they added the clause that if they did not have a budget by the end of the same three months every member of congress and the senate would not receive their pay checks. Does anyone with a brain really think these men and woman depend on that government paycheck to survive?
A short time ago the nation of Germany asked the Federal Reserve for their gold back, no they did not want all of it just 300 tons of it. It seems that the Federal Reserve bank of the US ‘stores’ the gold of many of the nations on the planet. They told Germany it would take 7 years to return the 300 tons it seems they do not have the Gold Germany gave them to hold.
Now this may not seem like a big deal to the average man in the street, but what it does mean is that the bank that stabilizes the currency of the United States does not have all the assets on hand it says it does. If this were the local bank down the street it would be closed down and audited. But if an audit of the Fed was even mentioned the stock market would have a melt down the likes of which we have never seen. Germany being the good ally it is has said fine they will wait, but what if other countries follow suit and want their holdings returned?
It appears the Federal reserve bank like many other banks has ‘borrowed’ on the holdings it has from other countries, or used these holdings as security when it is printing our fiat money. Now apparently because they have no one else’s gold to borrow on there is talk of the ‘Fed’ minting a Trillion dollar coin. This coin would be used to back the trillion dollars they will then print to cover payments on the national debt.
Why are we allowing congress and the President to continue to function when they will not address the fact that we can not continue spending when we can not even pay the bills we already owe? I think this is partly because we feel there is nothing that we can do, so we continue to focus on just balancing our own budgets and trying to just keep our heads above water. Yet why do we allow our leaders in Washington to ignore the constitutional law that says a budget must be submitted each year? This policy of ignoring what Washington is doing may indeed not effect us at this moment but sooner or later we will indeed pay for this ignorance.
And if not us then our children will face the full effect
of our ‘bury our heads in the sand’ policy.