Let the Lawsuits Begin

Another excellent article by someone who not only knows the problems, but has some solutions! Thanks, Ellen Brown.

However, I think relying on the federal government to take over banking obligations is jumping from the frying pan into the fire. A Congress that realizes a COLA reward for overspending the government budget has precipitated a near (if not actual) $10 trillion government debt. It is the Federal Reserve's accommodation of this debt which has been largely responsible for the swoosh of money so easily available for banks greedy to borrow and then, by the 10.1 rule, to lend money they don't have.


Imagine what would happen to the money supply under a goverment like this!!!!!

Both the local region suggestions seem very doable. Would we need a "squeeze play" of attorney general lawsuits? Wouldn't it be simply sufficient to let the banks fail, which would involve the government guarantees of bank accounts? That in itself, would involve humungous government payouts. The ultimate solution may be for the federal government to declare bankruptcy, with the kinds of arrangements you suggest to allow orginal owners to remain in their homes on a rental basis.

by Jean Braun (0 articles, 0 quicklinks, 0 diaries, 29 comments) on Tuesday, July 15, 2008 at 12:25:52 PM
 

into the fire

Hi Jean, I agree the federal government is bankrupt.  In 1933, FDR declared the government bankrupt and took the dollar off the gold standard.  I think the government needs to say we don't have the money to service those bonds anymore so we're buying them back -- with U.S. Notes or Greenbacks, the kind Lincoln issued, the American colonists issued, and Kennedy may have been thinking about issuing (we'll never know for sure).  Right now the government borrows from a bank that creates money out of nothing.  The government could just as well have issued the money itself and skipped the debt.  I've written about this at length, but it's a bit hard to make the case in a short comment.  Basically, everything we've been taught is upside down -- there IS no money in the economy, only debt.  The solution is simple once you see the problem.   Everybody thinks it would be inflationary to let the government issue money instead of the Federal Reserve and the banks, but it would actually be far LESS inflationary than what we have now; but again, you probably have to read whole chapters to be convinced.  Thanks for writing, Ellen

by Ellen Brown (25 articles, 0 quicklinks, 2 diaries, 42 comments) on Tuesday, July 15, 2008 at 1:42:42 PM