Treasury Greenbacks Would Keep FDIC Solvent

The FDIC's dwindling reserves was graphicly shown in Bill Bonner's newsletter a few days ago. It looks like this reserve of last resort is running out if and when more banks get taken out.

However, FRDIC reserves don't have to run out. The Treasury simply has to bypass seeking loans from the privately owned Federal Reserve and simply print U. S. Treasury greenbacks and issue those to depositors. Or the equivalent electronic cash.

Doing so helps keep money supply from deflating even more - and the U. S. taxpayer will not have to pay interest to the privately owned Fed as it would if the Fed puts up fiat money for the FDIC.

Russia, as I understand it, simply prints money when it wants to fund a project. Then it soaks up the excess with taxes as the multiplier effect boosts economic activity overall.

The U. S. government could help jump start the U. S. economy too by restoring Social Security checks to their true inflationary level by using non Federal Reserve greenbacks. Senior citizens with pent up demand would be able to spend more and again the multiplier effect would help jump start the economy better than the Treasury has done by simply plugging the banking system's black hole from deriviatives and mortgage fraud.

Of course, the last president to issue greenbacks, JFK, was murdered. A president before him, Lincoln, was murdered also after issuing greenbacks. But this was likely coincidental because other over riding motives were in play in both instances.

Congress has to think outside the box and totally ignore the adivce it is getting from self serving investment bankers. Of course, it won't