Kids are Clueless on Debt!
November 22nd, 2008
Dave Ramsey Gone Wild Cancun
November 22nd, 2008Dave Ramsey on Moms and Money
November 22nd, 2008Dave Ramsey for President 2012?
November 2nd, 2008The Federal Government is in very bad need of a Total Money Makeover.
Let’s get this election over so we can have Dave Ramsey back
October 21st, 2008
I love Dave Ramsey, but I have had to switch to Dr. Laura the last week weeks. I am ready to get so much politics out of the show. I love it when Dave says that Democrats and Republicans all suck, I wish he would leave it at that and move on. I would love to hear him say “I am not voting for either of the bozos.” “Be Weird!” They say Democrats fall in love and Republicans fall in line. I am hopeful that Dave will buck that trend in the presidential race. I realize it’s called “The Dave Ramsey Show” and he can say or do whatever he wants. I am a tad sick of hearing about Socialism if it’s not going to be evenly applied to both main candidates. He said he would not support anyone who voted for the bailout, so I am going to be disappointed if he says he is going to vote for McCain as the Lesser of Two Evils.
Chicken Little for President
September 30th, 2008Those with a long term investment strategy should ignore the drama this week and keep on keeping on.
Money as Debt
September 20th, 2008Very enlightening video on what is going on today and just how much control bankers have over our entire system. The first half is a little slow, but worth it to understand the last half.
Whoever controls the volume of money in our country is absolute master of all industry and commerce…when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.
~James Garfield, 20th President
Assassinated, 1881
Anyone who hasn’t watched “Money As Debt,” an animated DVD by Paul Grignon, should consider purchasing this extraordinary explanation of money’s origin in an economy totally dependent on debt. Almost everyone has seen footage of federal printing presses cranking out paper money, and some of us have even visited a government mint or two and have observed the process firsthand. But like so many other illusions with which the U.S. economy is replete, money is not created by government printing presses.
During the first few minutes of “Money As Debt” I began feeling my eyes glazing over in anticipation that I would soon begin viewing photo footage instead of animation. I then realized that I, like the masses of Americans who demand that every video experience provide them with entertainment, was unconsciously holding the same expectation. I then promptly hit the rewind button and started over, this time listening and watching attentively.
“Money As Debt” is not entertainment-far from it. The film offers amazingly elementary facts about the creation of money in the United States, narrated by a soothing voice, which could make for a bland presentation, yet the film’s message is anything but vapid. In fact, if it doesn’t leave your blood boiling, it behooves you to check your vital signs.
Beginning with the most fundamental question of all, Grignon asks: Where does money come from? The answer to this question will almost never be found in grammar school-or even college. What we aren’t told in formal education is that money is created by central banks.
Banks create money, not from their own earnings or from the funds deposited by customers, but from the borrowers’ promises to repay loans. Most importantly, borrowers not only promise to repay, but to repay with interest, and the bank writes the amount of money of both into the borrower’s account.
Grignon opens with a story from antiquity. In the days before paper money, goldsmiths produced gold coins and kept them safe for the purchaser in the same way that banks hold deposits today. These goldsmiths soon noticed, however, that purchasers rarely came in for their actual gold and almost never all at the same time. So the gold merchants began issuing claim checks for the gold which made the exchange of gold in the marketplace easier and less cumbersome. Thus, paper money was born which made doing business much more convenient.
Eventually, goldsmiths began loaning money to customers and charging interest on the loans, and borrowers began asking for their loans in the form of claim checks. The goldsmith shared interest earnings with depositors, but since no one actually knew how much gold he was holding, he got the idea that he could lend out claim checks on gold that wasn’t actually there and soon started becoming enormously wealthy from the interest paid on gold that didn’t exist.
Thus began the power to create money out of nothing, but it wasn’t long before bank runs began, and banking regulations evolved regarding how much money could be lent out. However, the regulations allowed a ratio of 9 to 1-that is, banks could lend out 9 times the amount of the deposits that were already there. This policy has come to be known as Fractional Reserve Banking. Regulation also arranged for central banks to support local banks with emergency infusions of gold, and only if there were many runs at once would the system crash.
Fast forward to 1913 when that so-called progressive president, Woodrow Wilson, signed into law the Federal Reserve Act which created the banking cartel now in charge of America’s money system.
For those who have not seen Aaron Russo’s DVD “Freedom To Fascism” - run, don’t walk to see or purchase it. It is required viewing for understanding the Federal Reserve System and the power it has over the U.S economy and over our individual lives. Very few Americans know how money is created and even fewer know how the Fed originated and what it actually does. Does anyone really believe this is an “accident”? As the media guru Marshall McLuhan is reported to have said, “Only the small secrets need to be protected. The big ones are kept secret by public incredulity.” Whereas U.S. paper currency used to be backed by gold, that is no longer the case, and we have instead a fiat currency backed by nothing except the word of the Federal Reserve that the money is worth its stated value. Moreover, money today is created as debt, that is, money is created whenever anyone takes a loan from a bank. In fact, every deposit becomes a potential for a loan-a process which can be and is repeated many times, ultimately creating infinite amounts of money from debt.
Whereas the 9 to 1 ratio reigned at the beginning of banking regulation, today in some banks, ratios are as high as 20 to 1 or 30 to 1, and frighteningly, some banks have no reserves at all!
The bottom line is that banks can create as much money as we can borrow!
Some Perspective …
September 19th, 2008
DOW UP 40 POINTS IN PAST MONTH… UP 18% PAST 5 YEARS… UP 44% PAST 10 YEARS…
Amazing New Program: Don’t Buy Stuff You Cannot Afford
September 17th, 2008The Rave Damsey Toddler Steps to Financial Slavery (The Anti-Dave Ramsey)
September 10th, 2008 
The typical, normal, American is broke. Most view the Dave Ramsey plan as some kind of strange cult and hope those on the plan will come to their senses. For decades, Americans have been doing the exact opposite of achieving financial peace, the Rave Damsey plan.
The Rave Damsey Toddler Steps to Financial Slavery (AKA: Normal in America):
#1 - Get your Over Draft “Privilege” down to minus $1,000 at your bank.
#2 - Apply for every credit card offer that hits your mailbox for as long as they keep sending them (don’t forget to sign up the dog and your dead relatives!). Buy yourself a NEW car. You deserve it since you breath air!
#3 - Rave Damsey suggests that you have a rainy day fund. Be responsible!!! Set aside 3 to 6 credit cards for your “emergency fund”.
#4 - Cash-out your retirement accounts. Use this money to buy things you “need” like a new car, a high-def television, or a maybe that much needed family vacation.
#5 - Spend your kid’s college fund. If there is no college fund, piggy banks will do the trick.
#6 - Get a 2nd or 3rd mortgage on your home. If you have any equity, you’re not trying hard enough.
#7 - Invest in Zero Down Real Estate and try to guilt trip your friends and relatives on the Dave Ramsey plan to loan you some money (it won’t work, Gary Coleman).
Join Rave Damsey at his 70 year series on spending money you don’t have and being broke, Financial Slavery University (taught at a local bank near you) and be sure to pick up his latest New York Times Best Seller, The Total Money Meltdown.
