China warns Federal Reserve over 'printing money'

The Chinese were big investors in triple A rated junk backed by CDS contracts --they have a lot to learn about money.

The US is going to monetize some of its debt. Free market capitalism imploded: "the financial markets fell apart". The financial system is like a balloon with a hole in it. As bad debt leaves, it deflates the balloon, the Fed inflates the balloon by puffing money in.

The Chinese should worry about the collapse of the dollar regime which would result in famine and riot in China, and ultimately, world war as global order breaks down.

(This may be a duplicate post, something went wrong on my first attempt.)

My fellow Americans,

It is WORSE than you think.

Take a heart pill and watch these videos in the order below. SOMETHING WICKED THIS WAY COMES.

Money As Debt
http://video.google.com/videoplay?docid=-2550156453790090544

The Money Masters: How International Bankers Gained Control of America

http://video.google.com/videoplay?docid=-515319560256183936

1932, A True History of the United States

http://www.youtube.com/watch?v=RgcdRCWEt4Q&feature=channel

Zeitgeist II Central Banking Exposed

http://www.youtube.com/watch?v=1gKX9TWRyfs&feature=related

The Gig Is Up- Money, the Federal Reserve and You.flv

http://video.google.com/videoplay?docid=-4020719354420953428&hl=en

Good article - thanks.

The Fed's neither Federal nor a Reserve... get with it people! Of coarse their sucking America dry. You can't put Dracula in charge of a blood bank.

Michael A. Kamperman, banker shill.

Yeah we need to print more money! What a great idea! We must paper over the crimes of the pigmen by printing money and giving it to those same pigmen. These are criminals, and they need to be brought to justice. If the only way that is possible is for America to be broke, then so be it. Paying off the criminals on the backs of the law abiders only begets MORE LAWLESSNESS. Michael A. Kamperman loves that idea because obviously he is comfortable slithering around in a den of vipers. Disgusting piece of wormfood. Worst of all, he knows how destructive it would be to print as he suggests. But he doesnt care because he shills for the criminals who would benefit at the expense of everyone else. And the more they print, the more criminality is encouraged, giving more cover to shady characters like himself. That is the key to understanding people like Kamperman. Yes, there is a "general criminal lobby" out there, and it is even more powerful than the Israeli lobby!

Michelle says, "... Reagan proved that deficits don't matter."

The difference is that Reagan did not encourage monetarization of the debt like the Obama Administration is doing. Reagan had the courage and the foresight of a Fed Chairman like Volker to let interest rates rise to levels that wrung inflation out of THAT badly mismanaged economy.

The posts on this page are very informative and spoken with intelligence for the most part. I don't have my 2 cents worth to add because it has already been said. Keep it coming folks.

Our problems stem from our elected officials ignoring the Constitution of the United States and even allowing a private bank like the Federal Reserve to print money and loan it to us at interest. This seems to be a point missed by Mr. Kamperman and others. The other half of the problem is that the government, along with most of the citizens no longer save and instead are heavily in debt. We print money with nothing behind it, printing more and more money making our dollars worth less. We tax our citizens to death instead of making them responsible for their own lives. The government needs to shrink and allow liberty to do it's job. We do not need to become another socialist state. We need to return to the principles in the Constitution.

Simon: "PS Constituions don't run countries, governments do."

Constitutions should run Governments, and restrain Governments with the Rule of Law.

People confuse Government with Politics. They aren't the same thing.

Politics (of whatever irrelevant and manipulated 'ISM') Globally, has come to think, once again, not that it is even above the Law, but that is IS the Law!

We have returned to the Divine Right of Kings, in all its tyranny, via the back door. We have petty and despotic wannabe Monarchs, at every level of our lives.

John Locke proved conclusively and irrevocably, that "If the Law makes the King, then the King is subject to the Law".

In which case, just how much truer does "If the Law makes the Government, then the Government is subject to the Law" need to be?

Which is where Constitutions come in, of course (and why rejecting such badly thought out and tyrannical abortions as the proposed EU Constitution, is so important).

If you don't recognise the above is 100% relevant to what is happening in the World today, and the danger the ignorance of such reality poses to you and your childrens future, then you need to get up to speed fast.

Time is running out for us to avoid a return to guillotines and ropes being set up to remove the corrupt and criminal, from every level of Society, as a last option. These people, Worldwide, have to go.

The risks of letting things get to the point of Guillotines and ropes, are very real.

Too often, we end up with the likes of Napoleon Bonaparte or Adolf Hitler, as a result, and they tend not to be interested in the Rule of Law either.

The Rule of Law has been debased. The criminal has become the citizen, the victim has become the criminal, the thief is rewarded, the crook is now the Judge, the Representative has become the traitor, representing nobody but themselves. Etc.

And some wonder why we are in this mess?

My favorite line from a politician regarding the deficit is the one said by Mr. Richard Cheney. In it,
Mr. Cheney said, "Paul, (O'Neill) Reagan proved that deficits don't matter. We won the mid-term elections and this is our due. Perhaps Mr. Cheney might speak to the Chinese on behalf of the Federal Reserve, since he has become so chatty in recent weeks.

We will need to allow some destruction of poorly run businesses and, yes, some deflation. We need the stronger dollar in stronger hands.

well china's government at least has the balls to start stepping up to the terrorist organization known as the federal reserve. THEY ARE A PRIVATE SECTOR,(seriously look them up in a phone book, they are right next to FEDERAL EXPRESS which is also a PRIVATE company) that controls OUR OWN GOVERNMENTS money. this is insane. we need a president strong enough to abolish the federal reserve and kick them out of our country

Gov't pensions are not the demise of our country. Our country has gotten lazy. The sense of patriotism for our great country has gone down the tubes. Not enough people actually care about what they do and the consequences for their actions. Someone else is always to blame for their problems and someone else will fix it for them. We have become a country of "political correctness". A bunch of "pussies" if you will. Everyone was patriotic as hell after 9/11. But, our society has become one that is looking for the next thing. Once the shine wears off they aren't interested. You ask anyone around during WWII about Pearl Harbor and how they felt and still feel about it! You ask 10 folks about 9/11 and I would guess over half don't get emotional about it. But, the country as a whole has lost it's passion for being the greatest country on the planet. They have become complacent. They are not worried that our gov't has gotten out of control. It doesn't matter what affiliaton you have. For the most part they are only out for themselves and whatever social program will keep us dependent on them. Get off your ass and do something besides bitch about retirements. Now, elected officials I will agree with you on. F them! But, come and try to get my military retirement after what we military folks have done for you.

It's funny how the government is always to blame by the people whom work for companies who've caused all of these problems in the first place... The media lead people to believe that the root cause is always the governments when it's the corporations whom are bending rules, breaking rules, creating their own rules, ignoring rules, exploiting workers or breaking laws...then when the pieces fall it's up to the government to save them...
Our minds have been engineered by corporate spin and media reporting into believing and blaming government for all their denied habits.
Wealth used to be based upon physical holdings of gold. When bankers saw this, they soiled their hands in the prospects of replacing gold with debt and ideology....Now wealth is based upon a banks 'creation' of debt... When you take out a mortgage, the bank creates a debt 'bubble' from then assumed value of an asset you 'own' The bank sells that debt for a profit [aka lower interest rate].
..and so the gravy train of derivativs begins... But in the end someone underwrites that debt... Someone who's already made money from your debt, or has gold themselves..
So returning home, no wealth is actually created, no asset is created, objects are sold and on-sold for profit.
Corporations off-shore labor and manufacturing to cheap labor states...again.. underwritten by banks, investment houses and derivative investors...
The interest alone on the approx 100 trillion in superannuation should be an investment in infrastructure, health, assets in order to strengthen the country. Not on defence budget of habitually beligerant individuals for making profit off of soldiers backs...like has been done in the past decade.
Core values of asset creation need to be reinvigorated and not off-shored or continentally outsourced as they are these days.

And to think it would have been communist China having the wherewithall to bring capitalist USA to 'DO THE MATH'.
Sadly, the USA still will likely not come to understand its financial and monetary position in a timely manner.

Focus on self esteem in US public schools has sealed our fate. American Idol and Reality TV nonsense now occupy the thoughts and dreams of American youth. Meanwhile Chinese, Koreans and Indians are studying hard and working even harder. The entitlement mentality of the US public will soon be confronted by stark reality. The lazy won't inherit the earth.

California voters recently sent a message to their legislature that they aren't going to approve the blank check anymore. It won't make any difference. The sad fact is that only 29% of eligible voters could pry themselves away from TV to send this messsage. The politicians will spin this defeat as not really reflective of public opinion.

The US reminds one of the Roman Circus prior to the fall of Rome.

In the meantime the Messiah enjoys 60% plus approvals because most Americans are oblivious to what is really happening.

Oh, the grand manipulators of currency are going to warn the US? What a joke.

Yea, invest in the Yaun, good luck.

Just follow the money. President Bush I and II, millions in Saudi and Dubai money. President Clinton and Obama, tens of millions in Saudi, Dubai, Intenational Banksters, and Red Chinese money. We've been sold out to not the highest bidder, but to anyone who will pay anything. Welcome New World Order. Now the Libs will be happy when we join the rest of the 3rd world as our standard of living goes down the toliet. As President Obama said during his inaugaration, "American must stop using more than their fair share of the worlds resourses". He'll get his wish!

In California, unions of public employees, most notably firefighters, police, nurses, and prison guards, have done well for their members. Batallion chiefs with Cal-Fire can make $200K+/year; new academy graduates for police in many parts of the Bay Area start at $120K/year. Nurses start at $90K/year. These salaries are outrageous--and their retirement is even more significant--80% of their high 3 after 20 years. Just remember that the next time these unions come asking for money in the name of "safety," and reject their demands. Where else are lowly educated people going to make that kind of money? They have no bargaining power if the people don't get duped by their misleading arguments.

i mean totally, just, like, don't go there, it's sooo scary.

Hope that politicians in the capitol are reading these posts and many other posts simular to these. As more and more people starting express their dissatisfaction with direction of US goverment, its a narrow bridge to cross from writing to standing up and fighting.

John Haro,

If you think military life is so cushy, then perhaps you should join and get your soft corporate hands dirty in a combat zone so you can save on your income taxes and get put up in some luxurious tent or make-shift dorm. I've served in the military and currently work in the corporate world. There is no comparison. Your Navy friend is not telling you the truth if he tells you he's making $40/hour to work on trucks. Tell him to divide his pay for a day by 24 because as active duty military you are on call 24 hours a day and there is no such thing as over-time. I also see that you are critical of the pay that police get. Why don't you join the military, or apply to be a police officer if your corporate life is so tough? I'm sure telecom has prepared you for it...

99 Trillion of unfunded liabilities? If that is true, or even half true, it seems default has to be in the cards somewhere down the road. This has less to do with politics and economics then just plain simple math.

If you are tired of this out of control government join the March for Liberty on July 4th in Washington DC.

These politicians need to see how many of us are willing to leave the barbeques, beaches and amusement parks behind to demonstrate how committed we are to defend the rights our founding fathers fought for.

FYI - the federal government filed insolvency papers March 31, 2009. As I understand it, this is a step past claiming bankruptcy. If that's the case we're in trouble now and most of America doesn't even realize it. The insolvency filing was never reported in the news and one would think that would be a major headline in every newspaper and online news source in the country.

Misconceptions about the concept of creative destruction could deepen the depression as the global economic collapse continues unabated. The WSJ just ran an article quoting Dallas Federal Reserve Board Governor Richard Fisher saying �At heart, Mr. Fisher says he is an advocate for letting markets clear on their own. �You know that I am a big believer in Schumpeter�s creative destruction,� he says referring to the term coined by the late Austrian economist. �The destructive part is always painful, politically messy, it hurts like hell but you hopefully will allow the adjustments to be made so that the creative part can take place.� Texas went through that process in the 1980s, he says, and came back stronger.� Mr. Fisher�s world view is also formed by his experiences at the Treasury in the late 1970�s where he witnessed first-hand how high inflation rates wrecked the Presidency of Jimmy Carter. This combination of belief and experience means unfortunately that Fed Governor Fisher is nothing but a general fighting the last war who is to slow to see how the world has rapidly and dramatically changed around him. My purpose is not to pick on Mr. Fisher who I�m sure is a good man. It is to highlight the mindset he has that is currently pervasive in elements of our leadership. We are not in the midst of a near return to high inflation rates. What we are witnessing in the economy with companies such as GM is not creative destruction. And the Texas experience of the late 1980�s can only serve as a guide to the severity of our situation, not as a guide on how to weather the storm and steer the ship safely into port.

This is no time for laissez-faire thinking. We are not witnessing the positive innovative process of creative destruction where new technologies like a refrigerator replace ice boxes. Take for example the auto industry. GM has seen a series of poor management decisions over the last three decades lead it to a weakened state. But the reason GM is on the verge of bankruptcy is not because someone has invented a replacement for the automobile. It is not even because someone has developed a superior version of the automobile. GM is in trouble because we are in the collapsing phase of a debt-induced asset bubble and the credit market GM relies on to sell cars is broken. Only half the people that qualified for a new car loan two years ago can qualify for one today. Sales for GM�s large foreign competitor Toyota are down over 40% from a year ago and Toyota is now hemorrhaging money as well. If we were witnessing creative destruction, then Toyota�s sales would be up to replace the GM sales that are down. In fact, the broken credit markets are severely limiting access to fresh capital for entrepreneurs delaying the next innovation that could provide true creative destruction. Inflation is the product of too many dollars chasing too little supply. We currently have massive oversupply in the world of autos and shrinking access to dollars to drive demand. We are in a deflationary environment and we are not on the verge of re-inflation despite the cries of wolf from the same crowd that assured us less than two years ago the economies of the world had decoupled from the U.S. economy.

Irving Fisher is the economist who introduced the concept of connecting the downward spiral of asset prices in a high debt society to the eventual downward spiral in goods prices primarily from the natural economic urge to hoard money thereby reducing the velocity of money in the economy. We are living in the Irving Fisher world of the 1930�s and not the Richard Fisher world of the 1970�s. According to Jeremy Grantham a couple of years ago it is estimated that approximately $50 trillion in U.S. asset prices supported $25 trillion in U.S. debt. Today, the assets are worth closer to $30 trillion. Texas went through this debt-induced asset bubble popping in the late 1980�s and lived to tell about it. But that was because Texas had vibrant businesses that had growing customer bases outside of Texas. I know this for a fact because I was a banker in Texas in the 1980�s and witnessed 9 of the 10 largest banks go out of business. Also, people flocked to Texas from California and New York to scoop up cheap real estate. Texas received a life line that wasn�t available to the U.S. in the 1930�s. Similarly Japan has received a life line of global trade from growing economies in the U.S. and China that wasn�t available in the 1930�s either. Where is our life line Fed Governor Fisher? The German and Japanese economies are in worse shape than ours. Mexico is in a serious depression. We cannot export our way out of this crisis and massive amounts of foreign money will not be coming to our shores to snap up bargains. They have bargains in their own backyards. In short, the only way out of this crisis is to monetize the debt. We need massive quantitative easing and we need it yesterday. If we don�t monetize the debt the federal government will have to reduce spending. If that happens then we could see asset prices in aggregate fall below the amount of the total outstanding debt.

In fact the book How America Can Escape the New Great Depression calls on the Federal Reserve to print enough money to buy back all but a few hundred billion dollars worth of outstanding U.S. Treasuries.

R Richter ---

How nice of you to make the military sound so bad. Working holidays?! How dare they!? I have to work holidays sometimes at my crappy telcom job...all I can say is suck it up boys.

The fact is, young people joining the military make quite a bit of money. They pay zero taxes on their income if they are in any type of combat situation. They get housing...nice housing too, they get it based off the area they live in. Medical insurance, money for school, guaranteed home loan. I know a guy in the NAVY who makes about $40 an hour working on trucks. He gets more perks than the average corporate slave. Corporate workers have it much worse than military, so quit your crying. QQ

"The public pensions of teachers, police,firemen,military,government employees,and elected officials will crush this country. People retiring after as little as 20 years of service and living for another 50 is rediculus"...so true, so true. People who are meant to work for us are working us over. Entry level sherriffs in Ventura County, California are making $85,000 to $90,000 per year. Teachers are making half of that. Does it suprise you that our education system is failing while our police are only used as another form of collecting revenue?? Young people are joining up in law enforcement to make money and have power instead of protect our people. So when you get pulled over on the way to your teaching job (if you still have one) for speeding 6 mph over the limit and the officer gives you a "holier-than-thou" attitude, you know why...he makes twice as much money as you and has less than half the education.

Entry level sheriffs in Ventura County, California make ~85k per year. This is not a high-crime area. Two cities in this county have topped the 'safest cities in the US' list for several years. "Dangerous job" b.s. does not justify this much pay. I wonder why California, and much of the rest of the US, is going bankrupt.

Gomer--"Nobody" in the US said that Social Security was in a lockbox. In reality, Social Security funds have always been available as general revenue funds. This is the truth.

If you are reading this then I have one question for you. Here it is:

Do you know what money is?

Sounds like a stupid question right! I urge you to get an understanding of what money REALLY is. It will shock you. Money is CREATED at the whim of a group of people. Whenever they do this, the VALUE of the money you own is lowered. You do not complain because the numbers in your account do not change. You ARE being robbed. If you do not understand this then you deserve to be robbed of everything.

Bin you TV.

Proactively get MANY sources of information rather than one or two passive sources (like TV news).

Prepare for a senario where money is worth a LOT less than now (for the dim, imagine the prices for everything are more than double what they are now).

Buy some gold.

I get tired of the statements such as "its not my problem I didn't vote for them" if you did not vote against them ITS YOUR FAULT! /too claim other party affiliation as the reason its not your fault is also foolish, there are 2 read two party's that votes are counted and if you didn't participate, ITS YOUR FAULT!

It does seem a little bit odd to me that the majority of the comments seem to be from American citizens discussing this rather important matter �that was brought to their attention by a British newspaper. It would be a bit much for the US media outlets to cover real news these days. They have their hands full with handling all the public relations puff pieces that come from Washington. Thank you to the Telegraph.

We citizens need to divest ourselves from Washington, DC.

The forces that installed Bush41, Clinton42, Bush43 and now Obamba44 need to be destroyed.

Washington needs to be cut off of *** ALL *** money. It needs to be euthanasied.

We need to be the United States of America *** NOT **** the federal republic of washington, dc, it is MASSIVELY CORRUPT AND CANNOT BE FIXED...

China is as invested in us as we are in them. They can't let us fail. We are to big to fail. They will throw in good money after bad. Then one day they will throw out all of our standing agreements and claim nearly 70% of the United States. Sound familiar?

It should be obvious to every American now unless they are deaf, dumb, blind, and stupid, that the powers that be, through the Congress, intend to break the dollar thus collapse the U.S. economy. I say this with some degree of certainty, because it the Congress and the Executive Branch really wanted to preserve the middle-class and protect a sound US economy, they would have chosen to provide the middle-class and small business with a one to two year moratorium on the Federal Income tax which would have flooded the economy with trillions of already �existing� currency as opposed to printing trillions of new collateralized interest bearing currency that would saddle the American people with a debt that could never be overcome.

In addition, if a bailout were really warranted and the government really wanted to put America back to work, would it not have been better served to provide those trillions of dollars to small business and start-up businesses that employ 80% of the workforce instead of the investment houses and banks that were responsible for the collapse to begin with, and employ less than 8% of the work force? No! There is another much darker, much more evil force at work here. One that would have America and freedom destroyed rather than save it. And that to, should be obvious to every American. Give me liberty, or give me death.

The "holder's of last resort" soon will emerge- and when these global-dynastic-banking-families do.....America will then totally understand that no nation ever survived with a fiat currency! The question then becomes is this: What will replace our monetary system as we know it?

Hey waldo (5/27 @ 2:47pm), I can agree with you on the teachers adn government employees. But we part ways on the policemen, firemen and military. THEY are the ones who put their lives on the line every day. This country has gone ape-stupid over the "teacher appreciation" stuff as well. We have elevated this profession needlessly. They are now full-time babysitters and the level of education reflected in THIS country proves it. We are at the bottom rung. WHY are we elevating these people who get a THREE-MONTH PAID VACATION every year? And those who WOULD teach properly have their hands tied by the government.

So let's substantially reduce their public pensions, as well as every single government employee. And let's let ALL government, including the "president", use the same public bathrooms and restaurants WE THE PEOPLE have to use. I'll bet two things... our borders would be sealed pronto and capitalism would return!

We are all at fault. We that elected our Representatives, and allowed them to become corrupt by not kicking them out when they started moving that direction. And we are at fault for being a "Me, Me, Me" society, and insiting on Entitlement programs.

For the past 10 years, I have been very worried about what will happen the day that China cashes in on that debt. Our Government needs to cut back, just like regular families have in their budgets. The Government also needs to be reminded that they work for the American Public, and not themselves.

THIS IS WHAT HAPPENS WHEN YOU ALLOW THE FEDERAL GOVT TO MAKE YOUR CHOICES FOR YOU.

THE FEDERAL GOVT SHOULD SERVE TO PROTECT THE INDIVIDUAL RIGHTS OF THE PEOPLE AND NOTHING MORE.

STOP VOTING DEMOCRAT AND/OR REPUBLICAN IF YOU WANT TRUE CHANGE.

THE FEDERAL GOVT THRIVES ON THE UNEDUCATED CITIZENS. THE UNEDUCATED CITIZENS ARE HELPLESS PAWNS CONTROLED BY THE FEDERAL GOVT.

THERE ONCE WAS AN ERA IN WHICH THE PEOPLE FEARD 'BIG BROTHER' AND WANTED HIM OUT OF THEIR LIVES.

NOW 'BIG BROTHER' HAS DECEIVED YOU INTO THIKING THAT YOU NEED HIM. THIS IS A LIE!

EDUCATE YOURSELVES! KNOW THE TRUTH! THE NEXT REVOLUTION IS NEAR!

"Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."

Could this be a polite Chinese way of asking if the USA is going to put it's money where it's mouth is? Here in the UK one sometimes hears the expression of "voting with one's feet" which is another type of final or last resort even citizens with no money can go to. Otherwise we can always "take it on the chin" (ie losses) when we can see this may be the quickest way to reduce burdens all round. Thus people can walk away from foreclosed opportunities and then start afresh a few years later even though this may be hard initially. But what happens to those who can't do it the hard way for reasons of eg ill-health? They've got virtually no chance. I think people should be able to retire early without any formal fuss when they can't do their normal job due to ill-health because only then will working citizens truly regain control of our own lives when it matters and therefore be less of a burden on others or the state. Thus perhaps in principle the best way to use "creative destruction" would be in order to help those who are disempowered because of their ill-health do some "creative reconstruction" when necessary to improve things. �Pensions� due to ill health should be something all of us can appreciate.

Your best investment right now is the Rosetta Stone Mandarin Chinese Language course..

"...When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them,"

Funny thing is these "representatives" have told us for years the Soc Sec. fund was in a lock box, plenty of money in there - BIG LIE.

Next, We The People opposed TARP1 99:1...yet our elected officials crammed it down our necks. The Obama budget blowout was also opposed by the same margin....yet our "elected officials" crammed that pork down our throughts in the middle of the nigh WITHOUT EVEN READING TH F-ING THING!!

So, say that again. Who do we blame?? The American people? You gotta be kidding me.

There is some truely ill informed ignorance here (largely I think from American readers -read into this what you will). The Chinese are locked into a cycle of purchasing US government debt. They have so much of it they can't afford to let the US dollar fail. Unless inflationary measures are undertaken (ie. printing money) the recession will ultimately become a depression. The net effect of the US policy is to ultimately devalue the currency. For the Chinese this is naturally worrying as they have so much debt.
The US consumer cannot rescue the economy this time, so this policy will have to run its course. The days of the capatlism as we know it are over.
Lessons have been learned and in future the free-marketeers will be restrained by government to protect the global economy from the damage they can cause.
PS Constituions don't run countries, governments do.

Blaming U.S. citizens for "electing our representatives" is such a lame attempt to lay ALL the blame where it simply does not belong. Our elections are rigged at every level by the monied class. Choice? There is no choice except between the "lesser of two evils". It IS our fault that we did not rebel against this corrupt system long ago!

The Chinese are just as stupid as we are, for accepting IOUs (T-bonds and Dollars) in lieu of something of value.
The Chinese will be hurt just as badly as we will when the paper dollar collapses, as it soon will.
The dollar is the biggest fraud, far bigger even than the subprime, dot-com, or housing fiascos - and it is yet to pop.

Our 'leaders' are not elected here in the U.S. rather they are installed. The Bilderberg members decide which candidates get onto the U.S. presidential ballots. This Texas bank official is misleading you all. Furthermore, the FED has CREATED the very problems he describes by way of a complete breakdown in regulatory oversight and accoutability in the financial markets. There is over 700 TRILLION in toxic derivatives that are unwinding and will pul this market much further down. Couple that with the pending Commercial Real Estate meltdown and times will be much tougher than today. We are merely the slaves that work for that paper that's printed out of thin air. That is the key concept that so many people out there can't seem to understand. The paper money comes from NOTHING (no assets) on a printing press - just like a newspaper. The only real insurance policy is the productivity of the American people, but as we see today, NAFTA, GATT, WTO has siphoned off much of the industrial backbone of the U.S. Iconic industrial giants like GM and Chrysler are being purchased by the FED at pennies on the dollar...this is NO ACCIDENT - this is how the banster elite thrive - by creating receession / depression and profiting as the 'rescuer' when in reality it is criminal theft. The $700+ trillion Derivative tsunami is going to be the last straw so prepare any way possible.

Come see and comment on the tellit like it is news. www.maverick.weebly.com

I don't think this 'bailing out' and government takeover of near every business is by ignorance. I think Pres. Huessein Obama is intentionally sabotaging our country. Biden is token whitey and Michelle is now proud of her country.
Plan for the worst, we have 4 years left.

i over heard prison guards in texas saying"yea,once i get my 20 years in,it will be 50k a year the rest of my life in retirement".... does that apply here in massachusetts..what about senators that only serve one term and get 125,000 a year the rest of there life,,, on and on.. its not sustainable!!! in fact its over NOW

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights that among these are life, liberty and the pursuit of happiness.

That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed.

***That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness."

The Declaration of Independence, read it.

Since feb, the dollar has lost 25% of its value relative to the EURO. It would be better to keep your savings in a more stable currency and then when you need to buy something, convert it back just to protect yourself from the inflation. I own several Zimbabwean trillion dollar notes I got off ebay for about $1. I show this to those people who dont get "the printing of money to pay for stuff"

"And now they think they can dictate to the Fed. That's a good one!"

They can. They are.

They are our bank, holding out credit cards. They have the power to 'dictate'. Do you not get it?

When they stop buying our debt, just wait and see what happens.

With both Obama (who calls himself fiscally responsible.. LOL) and the Democratic Congress, they will keep spending, even if it threatens to raise interest rates to double-digits if the Chinese stop buying.

It's too late now. We voted these idiots in. We'll have to deal with it.

Anyone remember 20% mortgages in the 70's? Those days will be coming back again. Joy.

$99 trillion?
Thats $330,000 for each of our 300 million population.

who cares just keep printing money o by the way is thier any gold left in fort knox?

Recall Congress!

"The USA sent China all the money it has. We are the leading buyer of its goods, and we are the reason they have success, now we are being berated by them."

This is the typical American ego in denial. China got where they are through hard work and can get by perfectly fine without Americans. Go to any Chinese takeout food joint and watch how hard the employees work, then go to any McDonalds filled with American high school dopes and you'll see the difference in attitudes and work ethic. It's lazy Americans who want to live off welfare instead of work a job, retire early, vote for politicians that hand out the most goodies or resell Chinese products at a 200% markup who will be screwed. Liberal Americans who worship their government and treat their businesses like the bad guys are finally reaping what they sew. You can't bury your business sector under regulations, lawsuits, taxes, union demands and retarded environmental restrictions and expect them not to leave the country. China is not so stupid as to kill the goose that lays the golden egg, and will become king of the hill as a result.

You Obamabots continue to ignore facts:
- Since Obama has been elected and average of 600k jobs have been lost each month.
- The National debt under the democrats led congress was 3.5 trillion when bush left office.
- The debt belongs to congress and not the president as the congress allocates funds and creates the budget.
- Since Obama took office the project debt has grown to 11 trillion dollars by 2012.
- This is Obama�s and the democratic congress recession/depression.
- Just wait when the bush tax cuts expire in 2010, the hyper inflation due to deficit spending, and the continued decline of revenue to the IRS. Add to that the tax increases on energy, food, Global warming hoax tax, the possible VAT tax and everything in between.
- If we make it to the 2010 election cycle we will be lucky. Let�s add a nuclear war in Asia and see what happens to things.
- How you liking your �Hope and Change� America. Don�t blame me, I didn�t vote for the Marxist!!!!!

Fellow citizens: Please keep a really close eye on our basic constitutional rights: Freedom of speech, right to keep and bear arms, the right to own property, etc. When any bills are introduced that threaten any of these rights, call your congressmen and politely ask them not to support the legislation. We must reverse the socialism that is taking over our free country. One basic problem with the U.S. is that people just don't see the danger (to our freedoms) that policies like universal health care will cause. On the surface it sounds good, but below the surface I see the federal government using it as an excuse to control our lives. Just think about it. Almost every product or activity can be given a health risk coefficient (a term I just invented, but a concept the feds will no doubt adopt); and be subject to government regulation. What kind of a country would that be? Don't listen to the eloquent talk from our leaders. Talk is cheap and it's only meant to console. Instead watch their actions (policies put into place, laws passed, actions taken against citizens). REMEMBER, DO NOT EVER TRUST THE GOVERNMENT!

They intentionally ship lead-laden toys for our children. They undercut our industries with near-slave labor and cheap, environmentally disastrous manufacturing methods. They can't be bothered to do anything useful with regard to North Korea. And now they think they can dictate to the Fed. That's a good one!

Obama's spending spree will result in one of two things: either a default by the U.S. government, or runaway inflation fueled by a runaway printing of money. It's a safe bet the U.S. government will choose the latter approach.

If China gets left holding buckets full of dollars, well, bummer for them. Join the club.

It is time for the Chinese to tell us that we are cut off. Which point our economy and country will come to a stand point. Dems and Repubs will push blame to the opposite party while the situation continues to get worse. Much like now.

The American people need to wake up and take back their freedoms from Washington. They have poisoned the environment while making billions. Now the want to fix it so they can make trillions.

All of the politicians from POTUS to the mayor of small town USA needs to be fired and start fresh.

Burn the IRS tax guide and start fresh, ban all lobbiests, and base to government on what the constitution states it should be not what some half-wit's opinion of it should be.

Living another 50 years? They believe we can live 500 more years. The elite can't have poeple living that long.The government can't be giving benefits for poeple 60 years after they retire. What will they do require people to work to 110?

Why are all my problems caused by my own government?

Thank you Mr. Richter for excellent post.

Please, honorable Chinese! Save America from the communist dictator, Obama. When he ruins american citizens, he'll also hurt China.

When you wait until the horses are already out of the barn to close the door, then you have to plow your fields by hand. Maybe the government should have closed the door on the Billions of dollars in social programs and free methadone to heroin addicts. Stop spending billions defending Europe, S. Korea, Kuwait, Afghanistan, Iraq, and every other tin horn country from aggressive states. Stop exporting our grain and food around the world and feed the homeless in Detroit and New Orleans. Stop exporting our manufacturing jobs to China, India, Korea and Mexico so the youth of MY country can find work and pay for their own health care, buy their own groceries, pay there own mortgage and taxes. Why are we stamping out poverty in Africa when there is poverty in America? Do the citizens the elect their representatives, pay their salaries, and listen to they�re constant lies deserve less?
Oh Wait, I forgot, we're suppose to show compassion to our fellow man while they rob us blind and threaten to kill us at every opportunity. So now that the horses are out, pay the bill for new horses or pick up a plow and take your a$$ back to the field.

Keep those presses running,let the good times roll,our gov. set the precedent.

Yes, I agree but we have obama and his administration that have no clue of what they are doing.

99 trillion dollars?
Who are we kidding? It is at least 100 trillion dollars, and climbing at an astronomical rate! When will the idiots in Washington and Main Street wake up to the fact that our children will be living in poverty unless the truth is totally revealed that we are destroying their future!

After eons of emminently predictable behavior, I don`t expect human(?) nature to change in my lifetime

T quote SFCMAC...

Hey waldo,

Talk to us whenever you retire

First of all it's "ridiculous" thus you are correct with your eigth grade teacher's pension being pulled.

Show me a soldier, fireman or cop that is field or battle capable after age 50 and I'll show you the tooth fairy. The reason why those three professions retire out early is they are young mens' and womens' jobs. To expect any of the three to go into battle, arrest perps and fight fires into their sixties and seventies is not just short sighted it would be disasterous. And after they have risked life and limb during their service life how should we reward them? Like Obama tried to do with combat injured vets, i.e. tell them to use their private insurance carriers! By the way police who retire out, that work shift work, generally live about five years past retirement before they die. There is room to reform the system but not on the backs of those who put their lives on the line. One last note; people don't get into these fields for the high pay and glamour. They serve, get paid every two weeks and if they are lucky enough to make it through 25 or 30 years they've earned their pension at the expense of their families and lost holidays as those three categories are 24/7 occupations. If your house is ever on fire or your being robbed call a corporate banker or Barney Franks. Maybe they can bail you out. Next time your sitting outside having a cold one and see USAF cargo plane or a refueler flying over head you might want to think why he's not sitting on his a$$ enjoying the Memorial Day weekend. By the way fire, teachers and police all pay into their pensions. Notice how no one ever mentions the drain that illegals who don't pay taxes and overuse health care and those who don't work by choice are already getting a pension of sorts without having contributed. Eliminate the free ride, bring manufacturing back into the country and stop the Federal and State governments from pi$$ing away every last cent they can bleed from us and the economy will recover. Duh!

Fisher is wrong about one thing.

It isn't my fault. I didn't vote for the bastards. I vote Libertarian.

If Americans weren't brainwashed into believing that they must vote for one of the two competing divisions of the Demublican Party, the US would not be in the mess that it is in.

What an absurd world we live in when US and UK are so fiscally irresponsible that we are rightly scolded by the Chicoms. As a American, I feel more affinty for China's leader (at least when it comes to economics) than our treacherous and degenerate leader.
The US Fed is so degenerate that it's buying TIPS.
What is it going to take? Hyperinflation, eschewing fiat currency and a de facto gold/precious metal standard? I guess then, the world government would outlaw private gold again and it's going to be chaos and barter.

A guy named Rob wrote something which is disturbing, because many Americans actually believe this. When your assets are in American dollars and you have accepted payments for goods in American dollars, then the nation issuing the currency purposely destroys it, with plans to replace it with another currency, what do you think will happen? What the Federal Reserve and Washington is doing is virtually an act of war against China, Japan and the American people. China will survive just fine without the United States and they had better get used to this notion sooner as opposed to later. Americans are totally blind. The Roman Empire fell. The Ottoman Empire fell. The Babylonian Empire fell. Now America will fall and the world will continue without us. This delusion of grandeur, complacency, materialism and general evil has permeated nearly all of American society.
Here's what this guy "Rob" wrote:

"Stop 'printing money' or what? The Chinese are hopelessly dependent on buying US debt because their entire economy is dependent on US exports and they need to buy US debt to maintain their artificially low exchange rate so that we keep buying their junk products. If China was forced to revalue its currency their entire export economy would crumble."

The current disparity between the pay, benefits, and job security non-government employees and employers and GOVERNMENT EMPLOYEES is increasing at an accelerating rate. Does anyone see any hope and change for non-government employees and employers in their future?

The United States is bankrupt. The Federal Reserve is a private organization that has systematically robbed hard working Americans of their prosperity. Now the Chinese are in a dilemma. Save the US dollar? Perhaps for a short while they will keep trying, but the boulder has been pushed off the cliff. China has already begun spending the US dollars they hold at an alarmingly fast pace. They don't want to cause panic. So they are buying tangible things as opposed to simply dumping US dollars for other currencies or precious metals.

The dollar will soon be worthless. Now is the time to buy gold, silver, and other currencies, preferably from nations with a low debt to GDP ratio.

Hope and Change!! We have lost hope, and soon we will only have change left in our pockets. Thank you America for electing the communist party!!!!

David Cantwell..AMEN, AMEN, AMEN!!! So well put. Spot on!!!

Congressional approval rating - 11%. Incumbent re-election - 98%. I guess it's "my congressperson is good and the rest are terrible." Right.
David Cantwell
on May 27, 2009
at 02:51 PM

John Holmes:

If Social Security "truly is broke", as you so eloquently state, it is only because our so-called leaders have broken it...intentionally. They have been plundering it for years because it is the only "tax" that is truely paid by any corporation. The only portion of a tax that most corporations end up paying, after write-downs, losses, deduductions, etc. is social security tax. So, the government has been raiding the savings account of SS to fund all of their spending because there is no real tax to fill their checking account. Broken? Hardly. Destroyed, looted, plundered? Yup.

Stop 'printing money' or what? The Chinese are hopelessly dependent on buying US debt because their entire economy is dependent on US exports and they need to buy US debt to maintain their artificially low exchange rate so that we keep buying their junk products. If China was forced to revalue its currency their entire export economy would crumble. I'll start worrying about what China thinks when their per capita GDP gets over $2,000 per year.

Life, Liberty, Freedom, Assets, Honor is being sold by politicians to China and foreign governments. Its time for Americans to VOTE OUT THE RULEING PARTYS REF: DEMOCRATS AND REPUBLICANS AND SUPPORT THE CONSITUTION OF THE UNITED STATES.

The writing is on the wall for all to see. The U.S. has deficits at every level of the government, from local municipalities to the federal government. The U.S. is reacting to a recession caused by too much leverage by releveraging. Our manufacturing jobs are gone and our citizens have a misguided sense of entitlement. We are the next Argentina.

The treasury bubble is gonna burst, be ready people!

The golden state of California will be the first to declare bankruptcy.....the United States of America will not exist as a country by 2020...nor will Great Britain at this rate of decline.....its greed that killed the beast.... and those British prime ministers that resigned in shame....called Blair and Brown.
Democracy is a broken arrow....

The Fed has to go. Its a private bank and the constitution forbides anyone but congress to make and regulate money. Besides can someone here tell me why we owe the Federal Reserve (private bank)debt that the treasury printed for them. Its our money not there's. We owe no one. Screw the federal reserve.

The Chinese should be concerned about the massive increase in dollars due to our policy of debt monitization. We know from basic economics that increasing supply results in lower prices-in other words the dollar will experience significant devaluation; and it will take many more dollars to purchase a product or service (ie. inflation)

And they want us to let them manage our healthcare while offering free health insurance to everyone? Does that make ANY sense to anyone? They can't even handle what we've already trusted them with and they are asking for more. And on top of that, it concerns my health!

China could save us from financial disaster by cutting off our credit line, also China and India have become more captialistic everyday and they hate the Muslins. they might be our best friends in the future.

Money's scarce, times are hard, so this will be your birthday card.. Happy birthday to all the folks who told me I was a fool to buy American products when the imports were so cheap!China building a blue water navy,Korea with long range nukes,gotta-go now.....

It's the government, at all levels, that got us into this financial mess. Do you see any cutbacks or layoffs in the fed. government? NO - they have insulated themselves from any pain such as wage cuts or layoff while the rest of us are left to pay for their extravagance. The political class has always fancied themselves as Royalty - now they are truly living it. Life goes on, as always for them, while the masses suffer to sustain themselves.

Hey waldo,

Talk to us whenever you retire.

That's what happens when you allow a hostile foreign country like China to dig its claws deep into our financial infrastructure. They start dictating rules; just like Obama's socialist regime is doing to the auto industry.

If I were Richard Fisher, I would find someone else to start my car from now on. I don't think that oobonga is going to like the fact that this man is not kicking in the same direction as the rest of his mouth breathers.

If you are an American citizen, congratulations! You are the equivalent to being a first class passenger on the financial Titanic. We have already struck the iceberg and taking on serious water. See you at the bottom! You can forget all that recovery crap!

It's like we're at that point in time when everything catches up to you. The rate of spending isn't proportional to the rate of revenue, so, look at California to see what is really going on. Ohio isn't that far behind and Michigan is a disaster. I sure hope everybody enjoys the 'change you can believe in'.

It interesting that we are now taking advise from China. Is this the change we can expect from this administration. We are now a third world country.

The USA sent China all the money it has. We are the leading buyer of its goods, and we are the reason they have success, now we are being berated by them.

Our leaders did the AMerican a diservice by helping modernize China, and the backlash will be severe

This situation is the voters own creation, berating politicians for the mess we are in is really berating ourselves, and we elected them so says Fisher. I did not vote for the Bushes, Clinton, nor Obama. There has not been a good choice to vote for. Politicians are for party first, selves second, and to H*LL with the rest of us. Fisher is crazy to blame us for this mess, we did not pass the budget, the political fools did. I blame Fisher and his commrades.

You can't entirely blame the voter anymore these days, since the politicians outright lie about their intentions during their election campaigns and then do the opposite of what they promised once they get in office. It happens in both parties, so the voter has no way to avoid this corruption.

It probably goes without saying we have dug ourselves a mighty tall hole. The few rational voices sounding the warning will not be heard. Policy is directed to appeal to the lowest common denominator, and these people rely on someone else to carry the load, so severe consequences are always someone else's problem.

And we keep spending and spending and spending and spending... There is NO WAY that could be good for our economy. The Chinese are wise to be worried about us printing money to pay for our endless spending. Politics is destroying our economy rapidly. We all need to wake up.

Old Ambrose must really think he's got something here to dredge up a story that's already old news. Fischer, unfortunately, is a classic example of a wonk who looking at a small slice of a picture while convinced he's seeing the whole thing.

It's only a matter of time before the US does lose it's AAA rating. It HAS to happen.

last quote from Fisher is the best. implication: democracy is failing? it would be nice to have some politicians that represent the people.

Congressional approval rating - 11%. Incumbent re-election - 98%. I guess it's "my congressperson is good and the rest are terrible." Right.

Interesting.

Reading the next-to-last paragraph, the Communist are essentially saying two things: 1) The electoral process does not work. 2) The electoral process does not work because the electorate makes really bad choices.

Another really bad estimate shows up in paragraph 9 - the US liabilities related to our entitlement programs is estimated to be over $99 Trillion dollars. Wow! This is further proof that Social Security will provide no benefit to future generations - it truly is broke.

Let me inform you Mr. Fisher, No We Don't elect them, that crap has been rigged for years.

The liberal and compassionate conservative policies of our esteemed elected officials created this disaster. There were several factors that caused our mess. Congress and Clinton telling banks that they had to give mortgages and credit to those who they knew couldn't pay it back. Bush1 and Clinton selling our country out to big business with "FREE TRADE AGREEMENTS" that those with common sense knew would send jobs overseas. The Democrats, beholden to the environmentalist fringe, insisiting we couldn't explore and develope our own energy sources (and we have plenty). So what does the new and improved President do? Spends trillions that we don't have! About the comment we are to blame because we elected them, being an independent I didn't vote for them and will continue to oppose the feel good politicians and work for the pragmatist that might actually get us out of this mess. I don't see an American demise but I do see a second "political" revolution coming down the road if our political leadership continues to steer our national ship into the Abyss. P.S. God Save the Queen!

The public pensions of teachers, police,firemen,military,government employees,and elected officials will crush this country. People retiring after as little as 20 years of service and living for another 50 is rediculus