The FDIC Reserve Is Gone.

Originally posted by reasonable

Originally posted by Raud
Okay...and on the news this morning, financial experts said the recession is turning now and that the Amercian economy will rise over the next three years.
I am very sorry, but I just can't see that happening.

Oh, it's happening. USA is too big to fail, so China will see to it we get back on track. So it's going to be tough times ahead for the GOP, economy on the upswing.. universal health care a success. All their hopes that America crashes have been dashed and they will be further marginalized.

I'm a memeber of the Democratic party, and I don't see a bit of what you just said....


the USA is not "too big to fail" USSR ???????

reply to post by jimmyjohen


Is it helping? In a a sense, yes; however, the question boils down to magnitude.

Would the band, who continued to play as the Titanic sank, have been helping if they would have put down their instruments, grabbed coffee cups, and started bailing water? Sure, but in the overall scheme of things that "help" wouldn't have been enough to make a significant difference to their circumstance.

Likewise, Coca Cola (or any other "U.S. company") creating more jobs in China isn't helping the U.S. economy in any significant manner. All it equates to is Muhtar Kent, and a select few executives, possibly getting a nice bonus for keeping the stock prices afloat; so he/they can get a new German automobile ('love those Bavarians, so meticulous. ), or similar exotic purchase.

To help the U.S. economy in a meaningful manner, we need these multinationals to invest in America, not China.

[edit on 11/25/09 by redmage]

reply to post by redmage


Touché redmage for your post. I dont see how a company investing thier money overseas is going to benefit the economy at home. People need to buy americian made products even if it is going to cost aliitle more for that product. I blame sloppy government acts of endless spending and companys like WALMART thatstock thier shelfs products made in CHINA to be able to sell these products at a lower price to the public undercutting the compition. The government should have seen this trend taking place and passed LAWS to force companies like this to stock thier shefts with a minuim percentage of americain made products. Lets say 75% minium of amercian made products to keep the economy strong and the companies manufaccturing in the US.

You night ask wy a CANADIAN is so concerned what happens in the STATES? Well, Canada depands so much on the US econemy that if it really fails our economy will fail with it.



edit to add Great post LOAM!! Star and Flag!!!

[edit on 25-11-2009 by toddtenexpa]

[edit on 25-11-2009 by toddtenexpa]

[edit on 25-11-2009 by toddtenexpa]

Originally posted by redmage
reply to post by jimmyjohen

 

Is it helping? In a a sense, yes; however, the question boils down to magnitude.

Would the band, who continued to play as the Titanic sank, have been helping if they would have put down their instruments, grabbed coffee cups, and started bailing water? Sure, but in the overall scheme of things that "help" wouldn't have been enough to make a significant difference to their circumstance.

Likewise, Coca Cola (or any other "U.S. company") creating more jobs in China isn't helping the U.S. economy in any significant manner. All it equates to is Muhtar Kent, and a select few executives, possibly getting a nice bonus for keeping the stock prices afloat; so he/they can get a new German automobile ('love those Bavarians, so meticulous.

), or similar exotic purchase.

To help the U.S. economy in a meaningful manner, we need these multinationals to invest in America, not China.

[edit on 11/25/09 by redmage]

Actually you are right in a sense. China isn't helping us in order to protect what dollar assets they have from going down in value. If many of you haven't noticed, China has been on a buying spree across the planet buying up strategic resources to fuel the future. They are spending the money. Yes they want to invest in the US but smartly and if allowed, we won't allow them to invest in banks for know or in strategic areas like more docks. Remember back in the 90's there was a scandal on Wallstreet that an arab individuals where trying to corner a bank so they could own it. So congress passed a racists law that says no arab country can own a bank in the US. China has been stopped before from buying and investing in things THEY want not what WE WANT TO SELL THEM. They would rather not have to many investments in the US because they don't want it to be taken over by force majeure or just outright national security reasons.

China and the rest of the world knows that the dollar is going down the tubes, what they and the other countries are trying to do is to set up a new currency system that won't have the dollar as a major factor in the valuation. And as for the dollar assets and hard currency that China has from the US, I'll give you an example. Lets say you find out from a confidential source that that on December 30th, the govt. is going to announce that they will use instead of dollars, monopoly money for currency and they will be the sole issuer of this. You run out and buy up as many monopoly games with currency that you can or buy up assets with the dollars you have so they may be worth something in monopoly money. Once it's announced people get a valuation of 5 dollars for every 1 monopoly dollar which wipes out alot of people, but you getting the tip was able to sell your dollars by buying other currencies and assets before the dollar is considered null and void. The countries outside of the US are trying to figure out how to get rid of this green toxic mess called the dollar.

Also in regard to the FDIC and the media pundits that are saying everything is alright and things are just turning around, what should they say? If they came out and said that we will be losing 1,000 banks in the first quarter of next year and that the U3 unemployment numbers will be closer to 11.2% in the first quarter and will continue to go higher during the year, what do you think would happen in the market. People wouldn't spend in the 70% consumer economy that we have in the US. They are making the market go up on bad news and good news because they want to give the appearance this holiday season that things are turning for next year, even though it won't. Next year we are going to see the market tumble the bubble pop on the prime mortgage loans and the commercial realestate. We will see more banks fail and we will see the dollar continue to go down. The fed is printing money and playing with the numbers in order to not SHOW inflation even though we are slowly seeing it in the stores and to protect whats left of the economy by not raising the rates which would derail it.

What's happening know is a game of delay delay delay, they know eventually horrible sacrifices will have to be made but they don't want to deal with it right now. They are throwing a hailmary and hoping for a win.

Originally posted by jimmyjohen
reply to post by conspiracyrus

 

Please attend your local community college for Economic 101.

Profits = taxation = governments get more money.

Profits = spending = simulate economy.

There is no more things I can explain to you if you don't know the fundamentals.

And do you know China is run by CCP a.k.a. communists.


edit: typo


[edit on 25-11-2009 by jimmyjohen]

you my friend needed to stay in school long enough to take a few econ three and four hundred level classes...

Lets take a peek at one case study where a company focused it's attentions on an overseas market...
Do you remember Dick Cheney's old company Halliburton? How bout the "NO BID" contracts that led Halliburton the create the worlds largest war mongering corporation in history KBR?

When congress started to question Halliburton this true blue all American company packed up and moved to United Arab Emirates city of Dubai ...
why did they move?
In February 2007, "Congress was told that $2.7 billion paid to Halliburton and its subsidiaries and subcontractors for work done in Iraq was either excessive or unsupported. AKA Dubai has no extradition agreement with the United States, meaning that Mr. Lesar could not be compelled to return to the US to testify, stand trial or serve any sentence related to any Halliburton activities under investigation."
and now that there abroad guess how much of their billions of taxable earnings this former Duncan Oklahoma company pays in to the country that gave them there start???

no buddy going hat in hand to other countries is bad for America as you can be sure they have their own agenda
Big Companies go abroad to hide income Coke is no different


[edit on 25-11-2009 by DaddyBare]

reply to post by loam


Am I out of the loop? I thought this was common knowledge months ago.
I'm not picking at you, OP, for bringing this up. I just thought this was a known sort of thing months ago. Maybe I get caught in time warps. I don't know. To me this is old news. I thought it was a done deal a while ago. Just saying. Not complaining about the topic. I just wonder, am I the only one caught in these time warps?

reply to post by DaddyBare

good assesment. Why do these former government employees go there to speak and reap great rewards? It's a cabal, folks. It's a dog and pony show and money changes hands, and freakoids have a great time. Meanwhile, you and me just remain "you and me",

reply to post by DaddyBare


Nice history lesson.

So the money that Halliburton earns turns into space dust and floats to outer space for eternity right? or maybe the executives and majority holders burn the money.

The money spent from their profit is taxed. Employees living in the states are taxed. Just because they don't pay corporation tax doesn't mean they don't pay tax at all.

How about Halliburtons vendors, who supply raw materials, labor, etc. etc. Some are based off shore and some are based on US soil.

Our economy is being stimulated. Recovery is on the horizon as long as the media does not bring down consumer and investor confidence.

And I am not saying that China or any 1 company will bring the US back to its golden age. But they are definitely contributing. FDIC and banks being "broke" is creating a lot of opportunities for average investors/consumers (people like you and me). This is where creativity starts.

I seem to have a hard time getting my message across. My message is stop fear mongering. Discussion on issues like this is constructive and educating.

Originally posted by ziggy1706
Has the FDIC ever gone bankrupt before? Or is this the first time? Was it Gerald Celente or webot, made a rpediciton for 3rd week in november, its gunna be real bad economically? someone was right about the 3rd week! but about an economic collpase so far i dont know...

In the early 90's it went bankrupt as well. The fund can never disappear, so money is always safe. Congress can actually mandate the FDIC press a surcharge to the banks for emergency funding. Seeing as many banks are reporting profits, another charge will be coming down the line. It takes a while for the funds to reach the FDIC. Last spring the FDIC added an additional fee, which most banks have yet to pay. The FDIC is insured by the Treasury, which is insured by the Federal Reserve. Since the Treasury actually has no money, the money will come from the Federal Reserve.. it won't be a massive bailout as of yet, but over time it could be overwhelming .. just two years ago the fund was in the 9 digit reserve range.

The FDIC does have a secondary fund with approx 20b in reserve .. it's primary account being defunct, the secondary account is likely depleted, or soon will be.

The most important aspect of the news is that it shows the US Financial market is still far from healthy.

I'm no expert but Karl sure is

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