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View Diary: President Obama's Original Sin (68 comments)

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  •  ? Somebody funds the criminals (2+ / 0-)
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    emal, 3rdOption

    on Capital Hill. Those in DC are only tools.

    •  No, see, that's the grand deception. Congress is (3+ / 0-)

      tasked with the origination and distribution of the currency. They have set up the Federal Reserve as a middleman to launder the funds, which the Federal Reserve requisitions from the Treasury on demand from member banks. Routing dollars through the Fed makes it possible to pretend that collections come before dispersal. But, that's the reverse of the logical process. The federal government (but not the states) spends dollars into the economy and then is supposed to levy taxes that bring them back to be counted and sent out again. The MMT people call the dollars that don't come back "leakage" but I don't think it's a good term. Wall Street hoarding dollars to play with an inflate stock prices is not a leak.
      The Fed has been pouring dollars into the economy, but the uncertainty caused by the jokers on capitol hill keeps them from doing anything but the equivalent of playing volley ball with the dollars.

      I'm beginning to think that the Congressional habit of rationing, which has been going on for at least three decades, actually prompts Wall Street to hoard. What is effectively rationing reverberates all down the line. States hoard because they never know how much money they'll have to work with. Cities hoard for the same reason. The red states don't know they've been privileged with more dollars than anyone else; nor do they know that these dollars have come at the price of getting minimal public services because all the public officials and the financiers take a cut.

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