I finished reading "end the Fed", and I got to say I am really enraged with the crap the Fed does. the American Dollar, by all accounts, has the same value of toilet paper. You all do realize there is nothing backing the money in our pocket or in the bank, right? There's no gold or anything backing up the money. This government uses the Fed-that consortium of private banks-to pay for everything regardless of how it devalues the money. We don't have any money to pay for something? The Fed "prints" more (by "print" I mean just make shit up in a computer and then all of a sudden billions is created). Funny thing is that they can do this, but you and I are on this thing where we have so much in hte bank, but the inflation the Fed creates making more money affects us.
Here's how it works:
-Government wants to make the people/country look strong
-The tell the Fed to keep interest rates low so dumbasses take huge loans out for crap they could never afford. Usually this involves the gimmick of the day (cars, houses, business loans, etc)
-So everyone is now with their shiny new toys or the big houses, living off of phantom money they never earned and living off credit and nothing tangible like hard cash
-Eventually, these poeple default on the loans, and the banks are holding the bag but take everything from the deadbeats and leave them with nothing
-So all the banks say they are too big to fail, cry poor and get a "bailout" from the Government.
-Now, the Government is broke, where do they get the cash? they ask the Fed-the people who are made up of the Bansk they have to bailout, to make more money!!
(there is also selling our asses to the Chinese, Japanese, or Arabs, but that's another thing)
-So the poor and stupid are out of cash, the banks fuck up but don't pay for it, and it's all thanks to the Fed. You can also apply this to other industries.
Then the cycle will repeat and repeat. The problem is like when a publicly funded company sells all their stocks, but needs more capital. They issue more stock, and then need more cash. They issue so much stock that the value of the share is so diluted it's almost worthless
I made the decision that I no longer want my money a part of this. my two options are to find a bank who didn't take any TARP payment (local community banks or things of that ilk), or go Italian and take my cash and put it in the mattresses. I have started something like that: I took money out of my account, put it in an envelope, and I also put $1 every day in it. It's saved a good amount so far, and I haven't been tempted to use it. I remember reading a study about something like this. In short if you have physical cash, you are a lot more mindful of it and how you use it rather than have it "virtual". People with the physical cash was a lot less impulsive with their purchases than those with a debt ot credit card, paypal, check, etc. Seeing the money makes you think more about the value of it and what you need it for.
I was thinking of trying both in a way where I just have a checking account for bills and spending money, and the rest in cash somewhere for rainy days or savings. yes I want to horde my money somewhere. Yes I know having all that fat cash ain't smart. Yes it doesn't help the perception I'm a bit of a crackpot. But I am sick of others making money off of my money when it's sitting in an acocunt. I'm sick of having my money stolen from me in one way or another-either in "fees" or in bailout money.
Ok, I just had a weird moment here. As I was reading what I wrote I realized I am really turning into my Godfather more and more everyday. The parallels are scary. Funny thing is that my Goddaughter's first birthday party is this weekend, and I wonder if I'll have the same influence on her as my Godfather had on me.
I think I'll stop now. Her's a song still stuck in my head: