posted September 05, 2012 01:34 AM            

This will erase most of the American Debt [which is in any case a number in computers and can be "written off" without any consequence whatsoever].

This gets rid of the need for austerity measures too.

Try to convince your local representatives to enact such a law that wipes out deficit by making compound interest already paid from the government as illegal and unconstitutional.

Think: Why should not the Federal Reserve pay a fee to American Citizens for giving them the patronage of using their currency notes?

posted September 05, 2012 08:28 AM            

That is a material Event of Default on every single Treasury bond indenture out there. It will place the USA in technical default on its bonds, which is cross defaulted to the debt of every single US government agency and supranational agency.

This will lead to a minimum Moody's and S&P downgrade in ratings to at least sub-investment grade, if not much lower, closer to CCC.

This will also shut down the Federal Funds market and the Treasuries Repurchase market, not to mention the CMO markets for RBS and CMBS, as well as ABS. It'll freeze up the CDO and CLO markets as well.

Every single country is going to pull its gold reserves from the NY Fed's Vault.

posted September 05, 2012 09:36 AM            

Somethings seriously amiss in the global banking system, something that perhaps a top notch financial brain like you can find out if you dug deeper.

And I am not saying do not repay the Principal Amount nor the Simple Interest on every Principal, only the compound interest has to be eliminated from 1913.

This move will have the support of every Small Businessman and Exporter. It may rev up the local Real Estate Market.

Fresh Loans can be raised for US Citizens alone, backed by a combination of US GDP, US Real Estate and Precious Metals, issued by US Treasuries WITHOUT Federal Reserve Bank based compound interest.

Something like this WAS the System in the 17th, 18th and 19th century prior to the Fiat Currency model of borrowing from private banks.

Another point: As per fractional reserve system, a bank lends 100 bucks to 10 people while having only 100 bucks as reserve. Why should it charge N% compound interest? Should it not be N/10 % as compound interest?
Have you thought about this logic?

Just imagine how much excess compound interest has been taken from US Citizens in the name of a fraudulent compound interest system based on fractional reserves and without any precious metal backing ?

It is your blood, sweat and tears that I am asking be given back rightfully.

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