Book Club Interactive:  Utilize Meg’s Blog to discuss the Federal Reserve – What do you know about our monetary system?  How does this system impact you?

Book:  The Creature from Jekyll Island, G. Edward Griffin

Link to Book: www.amazon.com (4th edition/2008)

Rules: This forum is intended to promote higher education of our monetary system. It is also a forum to discuss any topic that will empower an individual or individuals to make informed and positive financial decisions. If you have something educational to promote, you are welcome to do so.  Please feel free to express your political views; but do so kindly, being respectful of others.  There are many people who come here to learn for learning’s sake. If you feel the need to bash a candidate, or anyone for that matter, please excuse yourself!

Introduction:  “IT TAKES A VILLAGE”…an African proverb that I believe in whole-heartedly.  I have become the expert in my field due to the people entrusted in every loan transaction – from the underwriter, to the appraiser, to the real estate agent, the first-time homebuyer, and real estate investor.  I want to invite you along this journey as we explore this book. I look forward to learning from you! My first question is:

1. What do you know about the group of people that make our monetary policy?
See Appendix – pg. 590. Did you know that there is a national Board of Governors, appointed by the President, confirmed by the Senate, whose sole function is to determine our system’s monetary policy?

2. Knowing this, how important is it that you vote in this election?
Which candidate makes the most sense to you and WHY?

3. Did you know that the U.S. has experienced nine (9) market “crashes” since the reserve’s inception in 1913?
Were you a part of any of these market “crashes” and if so, how long did it take for stability to be experienced?  If not, what do you think it’s going to take for the United States to get back on its feet?  Do you think we should go back to the gold standard?

4. HOMEWORK: Read Chapter 1 with the question in mind,
“Is our Federal Reserve System a cartel or does it protect my interests?”

I’m looking forward to hearing and learning from you!
 

Megan McDonald, Licensed Mortgage Planner
Excel Home Lending
383 Inverness Parkway, Suite 140
Englewood, CO  80112
Cell: 303-717-9995
Fax: 303-468-6133
www.excelhomelending.com
www.mcdonaldlendingservices.com 

 

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1.  Did you know that the U.S. has experienced nine (9) market “crashes” since the Federal Reserve¹s inception in 1913? If the Reserve was designed to stabilize our economy, why have we experienced 9 crashes?

 

COMMENTARY: Because we don’t adhere to a Gold Standard (*definition of gold standard below)

 

When you deposit $100.00 into a bank account, the premise of a Gold Standard is that the bank has collateral-in the form of gold – to support a payback to you of your $100.00 should you call it due from that account. A bank makes money by lending that same $100.00 you deposited to others and charging interest to do that lending. What would happen if every single account holder of that bank withdrew their $100 deposit money at the same time today? Does the bank have collateral to do that? NOT LIKELY! Their model is based on hope that not everyone will ask for their money back at the same time. The failure of banks to collateralize their assets with gold is precisely why we are experiencing a massive banking crisis in 2008 – AGAIN.

 

*What is a “gold standard”? As defined by Answers.com: A monetary standard under which the basic unit of currency is equal in value to and exchangeable for a specified amount of gold.

 

2.  This book was written in 1994 and its second Chapter is, “The Name of the Game is Bailout”. You as a taxpayer are now responsible for paying off someone else’s bad debt. Do you want to know HOW/WHY?


COMMENTARY: Another bailout with the passage of our government’s 2008 4th quarter “Bail Out” bill. The author of our book, Griffin, uses the game of football as an analogy of the U.S. Monetary system. Here’s the first comparison:

 

Football/Federal Reserve: There are plays in football that are repeated over and over again throughout the game. BANKS LOAN MONEY AND COLLECT INTEREST – REPEATEDLY.

 

A consumer will likely borrow money to hopefully repay a loan. This often occurs repeatedly. If a borrower borrows over and over again, they become burdened with debt they can no longer repay. So they go to their bank for help. The bank “helps” by rescheduling debt. A reschedule of debts usually means a lower interest payment but longer period. Do you see where this is going? It’s very difficult for someone to repay debt using the rescheduling practice. Banks don’t want you to pay off debt, they make money from interest.

 

Our government just rescheduled Fannie and Freddie’s debt because Congress was convinced that if there wasn’t a bailout, then there will be massive implications, i.e. unemployment will skyrocket, foreign investments will disappear etc. The taxpayer will now pay interest on these loans in hopes that there will be new programs down the road that will generate massive profit and therefore we will be paid back.

 

This Week’s Discussion Question: What do you believe would have happened if our government decided to let Fannie and Freddie fail?


Megan McDonald, Licensed Mortgage Planner
Excel Home Lending
383 Inverness Parkway, Suite 140
Englewood, CO  80112
Cell: 303-717-9995
Fax: 303-468-6133
www.excelhomelending.com
www.mcdonaldlendingservices.com 

 

Book Club Interactive:  Utilize Meg’s Blog to discuss the Federal Reserve – What do you know about our monetary system?  How does this system impact you?

Book:  “The Creature from Jekyll Island”, G. Edward Griffin (4th edition/2008)