The Fed can only control the supply of money

In the U.S., the Fed can only control the supply of money; it cannot control the velocity of money or the rate at which it turns over.

The dramatic collapse in securitization over the past 18 months reflects the continuing collapse in velocity as financial engineering goes into reverse.

The modern economy and the real world

Confusion, uncertainty, doubt, distrust, distrustfulness, incertitude, misgiving, mistrust, mistrustfulness, skepticism and suspicion,

That is the modern economy and the real world.

The system is dysfunctional

There's something very strange about issuing debt to solve a problem caused by too much debt.

If something cannot go on forever, it won't.

The system is dysfunctional.

Where does government get the money?

Every dollar government injects into the economy must first be taxed or borrowed out of the economy.

No new spending power is created.

It's merely redistributed from one group of people to another.

Economic growth -- the act of producing more goods and services -- can be accomplished only by making people more productive.

The current crisis

The current crisis resulted primarily from anticapitalists forcing banks and mortgage companies to lend money to people with little or no means to pay it back.

Market-suffocating policies

Market-suffocating policies will put the country in Great Depression.

What the government gives with one hand

What the government gives with one hand, through increase spending,
it take away with the other, through increase taxation.