Showing posts with label o'robin hood. Show all posts
Showing posts with label o'robin hood. Show all posts

Sunday, September 4, 2011

o'massah panders - "Blacks Been Played by Obama"

9.11 fading?  Listen: Secure-Skies small speaker icon
From: kd Sent: Sunday, September 04, 2011 Subject: Blacks Been Played by Obama
     This is an excellent article with a lot of contact sites.  If you speak with a black person who voted for Obama, its like talking to a fence post.  Their minds are made up, don't confuse them with facts lilke the black unemployment rate under the past two administrations (10.4) and under Obama (16.7) and yes I have talked to a couple of blacks regarding the above.  Isn't it strange blacks can only see the black side of Obama.  Don't they realize he is also half white...KD

     It was a fairly tense scene at a Congressional Black Caucus [CBC] - sponsored event in Miami, where President Obama's executive director of the President's Council on Jobs and Competitiveness, Don Graves had to dodge heated questions from the likes of Maxine Waters ( D-CA) and Laura Richardson (D-Ca) in front of a fairly hostile crowd.
     In his remarks, Graves said that the president is "focused on every community across the country" but when he attempted some careful race pandering, saying that "certain communities have been hit harder than other communities," Waters pushed him.  "Let me hear you say 'black,'" the California Democrat yelled.
     As the crowd cheered, The Washington Post said in its report on the event that Graves tried backtracking, saying: "black, African-American, Latino — we're going to focus on getting people back to work."
     Notice what groups this fine public servant, who gets paid a handsome salary by all of the American people left out.
     Rep. Laura Richardson (D-Calif.), who being an expert practitioner herself knows a lie when she hears it referred to Graves' remarks as "a bunch of bull."  She later asked Graves to bypass Congress and shuttle dozens of pieces of special interest legislation authored by CBC members to the president so he could enact them using executive authority.
     "Let's be honest", Richardson said.  "We have met with the president.  We are asking you in the capacity of your position [at the council on] jobs, are you willing to review our bills, to work with us?"
     "You may not feel like the president is listening to you, but he hears you loud and clear," Graves said.  And of course, he blamed "folks who are going to stand in the way and block the legislation that the Congressional Black Caucus has proposed."
     Waters interrupted him. "What people are you talking about?" she said, according to the Miami Herald.  "Say tea party. Say it!"
     Graves did, though the Post described him as doing so "reluctantly."  "It was tea party Republicans," he said.
     Except I don't think it was so reluctant at all.  Graves was merely playing to the crowd.  After all, at the same event race-pimp-in-chief Jesse Jackson described the Tea Party as the "Fort Sumter tea party that sought to maintain states' rights and slavery."
     I'm sure it went over big, and that Bull Connor, Lester Maddox,Governor Faubus, Bill Clinton's old mentor Senator Fulbright, Senator Byrd and the rest of the Dixiecrats had a real chuckle wherever they are now.
    But here's the real irony.  After all the adulation and support for Barack Obama and the Democrats by most of the Black Community, do they realize they've been sold out?  And it wasn't by the Tea Party.
     Black unemployment was a huge problem in America even before the current recession.  And it has skyrocketed primarily due to one major factor, the huge influx of illegal aliens into America.  Not only is there significant competition for jobs in industries like construction, but the costs incurred by states with significant illegal alien populations have contributed significantly to budget crunches and hiring freezes in the county, municipal and state jobs where the black middle class has historically been created.
     It was President Obama, not the Tea Party who just legitimized that influx and turned his back on the black community by ignoring Congress and US law and pushing through the DREAM Act by executive order.
     It's quite simple, really.  There's an election coming up.  Obama needed to pander for votes to those Hispanics who favor amnestia rather than concern himself about black unemployment, because he figures that he can take the black vote for granted no matter what...especially with shills like AL Sharpton, Jesse Jackson, much of the Congressional Black Caucus and Obama's pals in the media pushing the narrative that 'the racist Tea Party did it'.
     They cynically figure that enough black voters are stupid enough to believe it.  And politicians like Laura Richardson and Maxine Waters, safely hunkered down in racially gerrymandered districts are more than happy to pimp the unwary.  It's worked for years, and they've done pretty well out of it.  Call it a new form of parasitic slavery, refined and brought up to date for the 21st century.
     Rep. Allen West, the only Republican member of the Congressional Black Caucus put this clearly when he advised his fellow blacks that it was time to "get off the plantation" and start voting their interests and referred to Jesse Jackson as an 'overseer.'
     The sign of a truly post racial America along the lines of Dr. King's famous vision will be when a significant amount of black voters think things through, look at where their real interests lie and follow Rep. West and Dr. King's advice.
     UPDATE: Another prominent member of the Congressional Black Caucus apparently weighed in on what is obviously going to be a major theme for the coming elections to try to build black turnout.  At the Miami event mentioned above, Rep. Andre' Carson (D-IN) said:
     "This is the effort that we're seeing of Jim Crow.  Some of these folks in Congress right now would love to see us as second-class citizens.  Some of them in Congress right now of this Tea Party movement would love to see you and me hanging on a tree."
     Carson, who inherited his racially gerrymandered Indianapolis district form his late grandmother Rep. Julia Carson is the second Muslim member of Congress along with Keith Ellison(D-MN) and likewise a member of the far Left Progressive Caucus.  Carson was also the one who stated that racial epithets were thrown by Tea Party members at Georgia Democrat Rep. John Lewis in Washington during the protests against the ramming through of ObamaCare.
     As you may know, there were countless cameras and microphones in attendance looking to capture just that kind of utterance, and conservative icon Andrew Breitbart offered $100,000 in cash to anyone who could provide proof of this accusation.  That money remains unclaimed, for obvious reasons.
     When contacted about the ridiculous rant comparing the Tea Party to his Democrat fore bearers in the Klan, Carson's spokesperson said he stood by the remarks.
     Look to hear a lot more of this kind of language.

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Saturday, August 13, 2011

o'amnesty - o'pander's Illegal Immigrants' healthcare

Left-wingnuts often make the claim that o'scamcare doesn't "mandate" that illegal aliens are to receive medical care ... typical '1984 Orwellian' "Newspeak." -- rfh
From: Minuteman PAC  Sent: Friday, August 12, 2011 Subject: Stop ObamaCare for Illegal Immigrants


Joe Wilson was right... ObamaCare DOES cover illegal immigrants!

     Earlier this week, we let you know about the $8.5 million in ObamaCare funding directed by the Department of Health and Human Services solely to provide free or reduced healthcare to migrant workers and their families - in other words, illegal immigrants!
     Remember all the flak Rep. Joe Wilson of South Carolina took from the Obama-loving leftwing media back in September 2009 when he yelled "You lie!" when Obama promised the nation that ObamaCare would not cover illegal immigrants?
     Now, we have our answer.  Wilson was right and Obama continues to be a liar...
    
     Sadly, providing illegal immigrants with free healthcare subsidized using YOUR tax dollars is nothing new.
     In 2007, we learned about Mexico's Ventanillas de Salud (Health Windows) program that directs MEXICAN citizens who illegally live in the U.S. to use taxpayer funded clinics in a dozen cities which have Mexican consulates.
     In Los Angeles County alone, illegal immigrants cost taxpayers nearly $440 million in health services annually and whopping $1.1 billion statewide.
     The Mexican consul in Los Angeles proudly announced that nearly 300,000 illegal immigrants hailing from Mexico and living in the area benefited from the referral program.
     To really rub salt in the wound, the whole referral operation promises to assess "consulate clients" (illegal immigrants) for eligibility to government-funded (that's U.S.-funded) health insurance and other primary care services and offers free legal assistance to those who are denied coverage.
     That must be nice.
     One of the most memorable quotes during the process of passing ObamaCare was Nancy Pelosi's "We need to pass Obamacare so that the public can find out what's in it."  One of the more memorable results of ObamaCare thus far was all of the friends and loyal lobbyists in the Obama Club who have received ObamaCare waivers.
    
Now, with healthcare funding and services for illegal immigrants and cuts for the care of U.S. Citizens, we have one more reason to add to our laundry list for defeating Barack Obama in 2012.
     Thanks to Americans like you, who care about the safety and future of our country, there is mounting pressure to stop Obama from transforming America into a socialist state jam-packed with illegal immigrants benefiting from our tax dollars.  But it will take the lead of an emboldened House and Senate to turn up the pressure.  THEY MUST HEAR LOUDLY FROM PATRIOTS LIKE YOU!      Our mission is clear: Help elect candidates who carry out their constitutional duty to defend our borders and oust those who do not.
      Everyday Washington tells us we can no longer afford to care for our own citizens in need, so why are we caring for Mexico's?
For America, Minuteman PAC
          P.S.  As you well know, Minuteman PAC is an independent Political Action Committee of the Minuteman civilian border security movement, supported by many volunteers of the nation's oldest, largest and most-effective citizen's border vigilance group, the Minuteman Civil Defense Corps.  ... If you can afford it, please generously give a contribution of $20, $30, $50, $100 or more to Minuteman PAC to get this word out to your fellow Americans!  We will need funds above and beyond $250,000 to help make our case on radio, TV, in newspapers and on the Internet to in order to secure our border with Mexico, crush Obama's plans to grant mass-Amnesty, and nix ObamaCare for illegal immigrants.


Wednesday, August 10, 2011

o'van jones - Brainwashing Kids: Spend, Tax, Spend More, Tax More, Spend Still More, Tax Still More!

Van Jones Group Uses Kids Video to Push Universal Health Care, Higher Taxes
  • Posted on 'The Blaze' August 10, 2011 by Jonathon M. Seidl 

  •      Because there‘s nothing more convincing than using kids who don’t understand government and economics, Van Jones’s Rebuild the Dream group is employing tiny tots to push a progressive liberal agenda in a new video.
    Hot Air sums it up with the appropriate level of snark:
         If you’re wondering how we can possibly afford “Medicare for all” when we can’t afford Medicare for some, you obviously missed this video from a few weeks ago of Jones reassuring America that we are not in fact broke, no matter how many zeroes there might be up on that national debt scoreboard.  All we need to do to build the progressive welfare state of our dreams is get out of Iraq and Afghanistan, nationalize health care so that we can dictate the price of services to medical practitioners from coast to coast, and hike taxes on the rich — and eventually the middle class, of course — way way waaaaay up.  How far up? Really far.  It’s working for Europe, isn’t it?

    Monday, August 1, 2011

    o'redistribute - Poverty in America

    From: baja Sent: Thursday, July 28, 2011 Subject: Poverty in America
    Study: Americans "in Poverty" Are Seldom Poor
         Most of the Americans the federal government defines as "in poverty" are "not poor in any ordinary sense of the term," according to a new study - especially when compared to the poor in less developed countries.
         "To the average American, the word "poverty" implies significant material deprivation, an inability to provide a family with adequate nutritious food, reasonable shelter, and clothing," the study from The Heritage Foundation states.
         "The actual living conditions of America's poor are far different from these images."
         The Census Bureau reports that there are 43 million Americans living in poverty.  To help them, taxpayers spend some $900 billion a year in federal and state dollars - over $20,000 for each person deemed poor - through more than 70 means-tested programs providing cash, food, housing, medical care and more.
         But according to the government's own survey data, in the past decade the average household defined as poor by the government lived in a house or apartment with air conditioning and cable TV, The Heritage Foundation study found.
         The household had a car - one-third had two or more cars -  two color televisions, a DVD player, and a microwave.
         "The home of the average poor family was in good repair and not overcrowded," the study observes.
         "In fact, the typical poor American had more living space than the average European - average, not poor.
         "When asked, most poor families stated they had sufficient funds during the past year to meet all essential needs."
          Study authors Robert Rector and Rachel Sheffield cite U.S. Department of Energy data showing that in 2005, the most recent year on record:
    • 62 percent of poor American households had a clothes washer in the home, and 53.2 percent had a clothes dryer.
    • 65.1 percent had more than one TV.
    • 54.5 percent had a cellular phone.
    • 38.2 percent had a personal computer.
    • 36.6 percent had an answering machine.
    • 29.3 percent had a video game system.
    • 25 percent had a dishwasher.
    • 5.2 percent had a photocopier - and .6 percent even had a Jacuzzi.
         The study also found that 5.9 percent of households "sometimes" did not have enough food, and just 1.5 percent "often" did not have enough.
    "Some poor Americans do experience significant hardships, including temporary food shortages or inadequate housing, but these individuals are a minority within the overall poverty population," the study authors concluded.
         "Poverty remains an issue of serious social concern, but accurate information about that problem is essential in crafting wise public policy. Exaggeration and misinformation about poverty obscure the nature, extent, and causes of real material deprivation, thereby hampering the development of well-targeted, effective programs to reduce the problem."
         Former Congressman Ernest Istook, now a distinguished fellow at The Heritage Foundation, echoed that sentiment in a recent Newsmax blog: "By defining poverty so broadly, we drain resources that instead could be focused on those who truly are in dire straits.   And we spend billions that could be cut from the budget instead."


    Tuesday, July 26, 2011

    o'debt - The Ceiling, Deficit, Budget recommendations

    (faxed to their offices and emailed direct via their web sites - rfh)
    To: (Barry Dunham) Barack Hussein Obama (Soetoro [Lolo Soebarkah]) II Jr.  (President)
           Dianne Goldman Berman Feinstein (Senator, D-CA)
           Barbara Levy Boxer (Senator, D-CA)
           Robert Earl (Bob) Filner (Representative, D-CA 51st)
         ● People 'outside the beltway' do know what the debt ceiling is.   We don't all have "low, sloping foreheads." (NYT)
         ● Do not raise the debt ceiling!   If anything, lower it.
         ● Pass a balanced budget amendment to be sent to the states for ratification.
         ● Legislate federal spending cuts.   Real cuts...no more phony "down the road promises." 
         ● No more passing the buck to "study commissions, panels, or committees"
         ● You are responsible for our fiscal mess.   Do the job you were elected to do - fix it.
         ● Quit laying off your responsibilities on previous administrations, both Democrat and Republican, and that holds for previous Democrat and Republican led Houses of Congress who may have failed to do their jobs but that doesn't excuse your failures to 'step up to the plate' and get our fiscal house in order.
         ● Cut entitlements including medicare.
         ● Repeal o'scamcare.
         ● Cut taxes, across the board, military, civilian, foreign aid, entitlements, benefits, ...any federally funded or subsidized programs.
         ● Cut budgets for all government agencies, across the board, at least 10% starting this fiscal year.
         ● Cut any entitlements or benefits that Representatives or Senators and your staff have that ordinary folks don't have.
         ● Pass a budget.  Going almost 3 years without is a fraud upon the people, if not criminal negligence.
         ● Instead of playing "robin hood" with our tax money, pass a scheme whereby all people pay taxes equally be it a flat tax or a fair tax.
         ● Eliminate at least four (4) trillion from the federal budget, now, not 'down the road'...real cuts, not bookkeeping juggling.   Make those cuts permanent.
         ● Mandate a defined downsizing of the government payroll and expenditures.
         ● You were elected to represent the people, not a political party, not a party line, not some foreign socialist ideology but American Republicanism and capitalism.
         ● We have to pay our bills.   We have to balance our check books.   We have to budget our expenses.  We have to cut expenses and live within our means.   So must the federal government.
         ● Do the job we elected you to do and quit making excuses for your failures to manage our monies properly.
         ● I and my friends will vote in November 2012 and vote against anyone who fails to 'clean up' the budget circus in Washington, D.C.
         ● We know who pays taxes and who doesn't.
         ● Knowing that nearly 50% of all people pay no taxes should be a warning that must not go unheeded.  Consider a proposal that no one can vote on a tax or revenue issue unless they are paying federal income tax or property taxes.
         ● You are responsible for the fiscal mess we are in and you sought the responsibility to manage it.
         ● You are not doing your job.  Show us that you can.
    Sincerely, a constituent who'll vote in November 2012.
    Robert Harrold, El Centro, California 92243
    "The fact that we are here today to debate raising America's debt limit is a sign of leadership failure.  It is a sign that the U.S. Government can't pay its own bills.  It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies.  Increasing America's debt weakens us domestically and internationally.  Leadership means that "the buck stops here."  Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren.  America has a debt problem and a failure of leadership. Americans deserve better." -- Sen. Barack Obama (D-IL), March 20, 2006


    Who Pays Income Taxes and how much?

    Tax Year 2008

    Percentiles Ranked by AGI
    AGI Threshold on Percentiles
    Percentage of Federal Personal Income Tax Paid
    Top 1%
    $380,354
    38.02
    Top 5%
    $159,619
    58.72
    Top 10%
    $113,799
    69.94
    Top 25%
    $67,280
    86.34
    Top 50%
    $33,048
    97.30
    Bottom 50%
    <$33,048
    2.7
    Note: AGI is Adjusted Gross Income
    Source: Internal Revenue Service

    http://www.federalbudget.com/


    Actually, Wealthy Americans Pay A Larger Share of Federal Taxes Than Ever Before

    Saturday, July 16, 2011

    o'debt - "Hugely Partisan and the Deathly Debt Ceiling" (by Fox & Friends, ConservativeByte.com)

    reposted from ConservativeByte.com & Originally Posted on ConservativeByte.com July 15, 2011 by Jay Taylor, Conservative Byte; video produced by 'Fox and Friends', Fr.15Jul11
    video source: http://conservativebyte.com/2011/07/hugely-partisan-and-the-deathly-debt-ceiling/

        "Media Matters of course didn’t like the spoof that Fox and Friends put together and aired this morning on their show. It is a bit of a tribute to the release of the latest Harry Potter movie that just came out today and also the great debate going on with raising the debt ceiling.
         The clip replaces Harry Potter characters with real politicians as they talk about the looming debt crisis.
         The video never shows who Voldemort is, but here at Conservative Byte we have little doubt." -- Jay Taylor, ConservativeByte

    Posted on  by Conservative Byte:
    President Obama on Friday kept up the pressure on Republicans to agree to revenue increases in a deal to raise the debt ceiling, claiming 80 percent of the public supports Democrats’ demand for tax increases. “The American people are sold,” … Continue reading 

    Tuesday, July 12, 2011

    o'redistribute - Entitlements?

    From: bham  Sent: Sunday, July 10, 2011 Subject: Entitlement??
         Entitlement my backside.  I paid cash for my social security insurance!  Just because they borrowed the money, doesn't make my benefits some kind of charity or handout!!  Congressional benefits, aka. free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that's welfare, and they have the nerve to call my retirement entitlements!
    ..... scroll down............
         Someone please tell me what's wrong with all the people that run this country!  We're "broke" & can't help our own Seniors, Veterans, Orphans, Homeless etc?
         In the last months we have provided aid to Haiti, Chile, and Turkey.  And now Pakistan ... home of bin Laden.  Literally, BILLIONS of DOLLARS!!!
         Our retired seniors living on a 'fixed income' receive no aid nor do they get any breaks while our government and religious organizations pour Hundreds of Billions of $$$$$$'s and Tons of Food to Foreign Countries!
         They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives and now when its time for us to collect, the government is running out of money.  Why did the government borrow from it in the first place?
         We have hundreds of adoptable children who are shoved aside to make room for the adoption of foreign orphans.
         AMERICA: a country where we have homeless without shelter, children going to bed hungry, elderly going without 'needed' meds, and mentally ill without treatment -etc,etc.
         YET... They have a 'Benefit' for the people of Haiti on 12 TV stations, ships and planes lining up with food, water, tents clothes, bedding, doctors and medical supplies.
         Imagine if the *GOVERNMENT* gave 'US' the same support they give to other countries.
         Sad isn't it?

    Monday, July 11, 2011

    o'quantitative - Why QE2 Failed: "The Money All Went Offshore" (Ellen Brown, GR)

    From: kd Sent: Monday, July 11, 2011 Subject:  Ellen Brown: Why QE2 Failed - The Money All Went Offshore
    We all knew we had been had but what could we have done about it?
    Remember when we next vote out every rat incumbant. ...KD


    The url address of this article is: www.globalresearch.ca/index.php?context=va&aid=25566
    Why QE2 Failed: The Money All Went Offshore
    By Ellen Brown, Global Research, July 9, 2011
         On June 30, QE2 ended with a whimper.  The Fed's second round of "quantitative easing" involved $600 billion created with a computer keystroke for the purchase of long-term government bonds.  But the government never actually got the money, which went straight into the reserve accounts of banks, where it still sits today.  Worse, it went into the reserve accounts of FOREIGN banks, on which the Federal Reserve is now paying 0.25% interest. 
         Before QE2 there was QE1, in which the Fed bought $1.25 trillion in mortgage-backed securities from the banks.  This money too remains in bank reserve accounts collecting interest and dust.  The Fed reports that the accumulated excess reserves of depository institutions now total nearly $1.6 trillion.    
         Interestingly, $1.6 trillion is also the size of the federal deficit – a deficit so large that some members of Congress are threatening to force a default on the national debt if it isn't corrected soon. 
         So here we have the anomalous situation of a $1.6 trillion hole in the federal budget, and $1.6 trillion created by the Fed that is now sitting idle in bank reserve accounts.  If the intent of "quantitative easing" was to stimulate the economy, it might have worked better if the money earmarked for the purchase of Treasuries had been delivered directly to the Treasury.  That was actually how it was done before 1935, when the law was changed to require private bond dealers to be cut into the deal.   
         The one thing QE2 did for the taxpayers was to reduce the interest tab on the federal debt.  The long-term bonds the Fed bought on the open market are now effectively interest-free to the government, since the Fed rebates its profits to the Treasury after deducting its costs.   
         But QE2 has not helped the anemic local credit market, on which smaller businesses rely; and it is these businesses that are largely responsible for creating new jobs.  In a June 30 article in the Wall Street Journal titled "Smaller Businesses Seeking Loans Still Come Up Empty," Emily Maltby reported that business owners rank access to capital as the most important issue facing them today; and only 17% of smaller businesses said they were able to land needed bank financing.      
    How QE2 Wound Up in Foreign Banks 
         Before the Banking Act of 1935, the government was able to borrow directly from its own central bank.  Other countries followed that policy as well, including Canada, Australia, and New Zealand; and they prospered as a result.  After 1935, however, if the U.S. central bank wanted to buy government securities, it had to purchase them from private banks on the "open market."  Former Fed Chairman Marinner Eccles wrote in support of an act to remove that requirement that it was intended to keep politicians from spending too much.  But all the law succeeded in doing was to give the bond-dealer banks a cut as middlemen.   
         Worse, it caused the Fed to lose control of where the money went.  Rather than buying more bonds from the Treasury, the banks that got the cash could just sit on it or use it for their own purposes; and that is apparently what is happening today.
         In carrying out its QE2 purchases, the Fed had to follow standard operating procedure for "open market operations": it took secret bids from the 20 "primary dealers" authorized to sell securities to the Fed and accepted the best offers.  The problem was that 12 of these dealers – or over half -- are U.S.-based branches of foreign banks (including BNP Paribas, Barclays, Credit Suisse, Deutsche Bank, HSBC, UBS and others); and they evidently won the bids.   
         The fact that foreign banks got the money was established in a June 12 post on Zero Hedge by Tyler Durden (a pseudonym), who compared two charts: the total cash holdings of foreign-related banks in the U.S., using weekly Federal Reserve data; and the total reserve balances held at Federal Reserve banks, from the Fed's statement ending the week of June 1.  The charts showed that after November 3, 2010, when QE2 operations began, total bank reserves increased by $610 billion.  Foreign bank cash reserves increased in lock step, by $630 billion -- or more than the entire QE2.  



         In a June 27 blog, John Mason, Professor of Finance at Penn State University and a former senior economist at the Federal Reserve, wrote:  
         In essence, it appears as if much of the monetary stimulus generated by the Federal Reserve System went into the Eurodollar market. This is all part of the "Carry Trade" as foreign branches of an American bank could borrow dollars from the "home" bank creating a Eurodollar deposit. . . .
         Cash assets at the smaller [U.S.] banks remained relatively flat . . . . Thus, the reserves the Fed was pumping into the banking system were not going into the smaller banks. . . .  
    [B]usiness loans continue to "tank" at the smaller banking institutions. . . .
         The real lending by commercial banks is not taking place in the United States. The lending is taking place off-shore, underwritten by the Federal Reserve System and this is doing little or nothing to help the American economy grow.  
    Tyler Durden concluded: 
    . . . [T]he only beneficiary of the reserves generated were US-based branches of foreign banks (which in turn turned around and funnelled the cash back to their domestic branches), a shocking finding which explains . . . why US banks have been unwilling and, far more importantly, unable to lend out these reserves . . . .  
    . . . [T]he data above proves beyond a reasonable doubt why there has been no excess lending by US banks to US borrowers: none of the cash ever even made it to US banks! . . . This also resolves the mystery of the broken money multiplier and why the velocity of money has imploded. 
         Well, not exactly.  The fact that the QE2 money all wound up in foreign banks is a shocking finding, but it doesn't seem to be the reason banks aren't lending.  There were already $1 trillion in excess reserves sitting idle in U.S. reserve accounts, not counting the $600 billion from QE2. 
         According to Scott Fullwiler, Associate Professor of Economics at Wartburg College, the money multiplier model is not just broken but is obsolete.  Banks do not lend based on what they have in reserve.  They can borrow reserves as needed after making loans.  Whether banks will lend depends rather on (a) whether they have creditworthy borrowers, (b) whether they have sufficient capital to satisfy the capital requirement, and (c) the cost of funds – meaning the cost to the bank of borrowing to meet the reserve requirement, either from depositors or from other banks or from the Federal Reserve. 
    Setting Things Right
         Whatever is responsible for causing the local credit crunch, trillions of dollars thrown at Wall Street by Congress and the Fed haven't fixed the problem.  It may be time for local governments to take matters into their own hands.  While we wait for federal lawmakers to get it right, local credit markets can be revitalized by establishing state-owned banks, on the model of the Bank of North Dakota (BND).  The BND services the liquidity needs of local banks and keeps credit flowing in the state.  For more information, see here and here.  
         Concerning the gaping federal deficit, Congressman Ron Paul has an excellent idea: have the Fed simply write off the federal securities purchased with funds created in its quantitative easing programs.  No creditors would be harmed, since the money was generated out of thin air with a computer keystroke in the first place.  The government would just be canceling a debt to itself and saving the interest. 
         As for "quantitative easing," if the intent is to stimulate the economy, the money needs to go directly into the purchase of goods and services, stimulating "demand."  If it goes onto the balance sheets of banks, it may stop there or go into speculation rather than local lending -- as is happening now.  Money that goes directly to the government, on the other hand, will be spent on goods and services in the real economy, creating much-needed jobs, generating demand, and rebuilding the tax base.  To make sure the money gets there, the 1935 law forbidding the Fed to buy Treasuries directly from the Treasury needs to be repealed. 


    Ellen Brown is an attorney and president of the Public Banking Institute, http://PublicBankingInstitute.org. In Web of Debt, her latest of eleven books, she shows how the power to create money has been usurped from the people, and how we can get it back. Her websites are http://webofdebt.com and http://ellenbrown.com  Please support Global Research -- Global Research relies on the financial support of its readers.  Your endorsement is greatly appreciated -- Subscribe to the Global Research e-newsletter


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    bcc'd "red diaper babies"