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Bernanke and Company (the Fed) can eliminate American POVERTY (right Now)! HOW?

December 22, 2013

In November 2012 the U.S. Census Bureau said more than 16% of the population lived in poverty in the United States, including almost 20% of American children,[7] up from 14.3% (approximately 43.6 million) in 2009 and to its highest level since 1993. In 2008, 13.2% (39.8 million) Americans lived in poverty.[8] California has a poverty rate of 23.5%, the highest of any state in the country.[9]  Let’s think about the issue of Poverty in America and how Bernanke and Company (the Fed) can eliminate this scourge from our land in 2014. As of now, there are approximately 50 million Americans living in a state of Poverty (insufficient food, clothing, shelter, and transportation). The official level of income needed so that a family of four are above the threshold of Poverty is about $23,000 (that’s digital dollars).

Poverty could be eliminated by Bernanke and Company right NOW! Do the math!

So how can our 50 million Americans (now living in poverty) exceed this threshold income level in 2014?  Let’s first of all discuss what Bernanke and Company are currently doing at the Fed. These policymakers are currently creating some $75 to 85 billion of digital dollars per month for what is called ‘ASSET PURCHASES’. These digital dollar units emerge from merely ‘typing’ numbers (called dollars) into the computer screen. There is ‘no cost’ for this ‘money from heaven’ operation. All Bernanke and Company need to do is punch in numbers (into the Fed Checking Account called the SOMA..now an on-line computer account) and ‘money’ emerges from this ‘typing’ action. It’s magical but happening as of now. We call this magical operation QE! Today, we do not have material money (silver/gold) but merely units of ‘nothing’ created OUT OF NOTHING. What a world we now live in! It’s magical. So how can we eliminate Poverty for every American…that is our issue!

Poverty is growing in America. Some 50 million have insufficient income to purchase the essentials!

Let’s do some MATH. If we now have 50 million Americans living in poverty and we provide each person with a loaded Debit Card of $1,500/month (issued by the New York Federal Reserve Bank from their computer trading room) we can provide these recipients with sufficient monthly income to bring every American OUT of POVERTY. The math:  50 million x $1500 = $75 billion (digital dollars). Bernanke and Company are currently creating some $75 to $85 billion (digital dollars) via their QE operations. This QE operation is called by the name ‘Asset Purchases’. Why not allow the big boys (the primary dealers) to purchase these ASSETS which our Fed is now purchasing and provide (in lieu) $1500 to each American now living in Poverty? Wouldn’t this be a better ‘trade off’ for these Dollars from Heaven? Poverty could be eliminated (given the above assumptions) instantaneously. Bernanke and Company could be given all the credit! What is illogical or inappropriate with this proposal? Think about this proposal for the American citizens now living in Poverty (insufficient food, clothing, shelter, and transportation)!!!

The current policies of our politicians/banksters are not working (note the graph)!

This image reveals the disparity between the Wealthy (in digital dollars) and the Poor (those who can not purchase the essentials of life)!

The American dollar has become merely a photon generated digit ($1.00) within our computer screens, so why not use this imaginary/virtual/digital unit to create benefits for real Americans? We could eliminate Poverty for everyone and then we could simultaneously encourage these Americans to do some real work so that new WEALTH is created to replace what they consume! The moral principle of ‘Give and it shall be Given unto you’ could be the philosophy for this new policy! Think about this option going into 2014. Bernanke and Company could be given credit for initiating this new poverty elimination program. After all, wasn’t it Bernanke and Company who started the QE operations? Now that we have this policy of ‘money from heaven’ (the consciousness of our FOMC policymakers) why not put this policy to some practical use for real suffering Americans? I see no reason this policy would not work. Just load up some 50 million plastic Debit Cards with $1500 of digital dollar units and reload each Card monthly. The logistics don’t seem that difficult. Also, the recipients may actually desire to volunteer their labor for some productive projects which generate New Wealth for our Nation. Personally, I think this would work! Think it over! Pass this missive on to others who might agree with this idea! Enjoy the Holidays! I am:  https://kingdomecon.wordpress.com

2 Comments leave one →
  1. December 29, 2013 11:04 pm

    Now that’s thinking out of the box! I’m curious, what are the implications of putting the U.S. currency back on the gold standard? What would immediately happen in your opinion? Also if you have any spare time I have recently started a blog on how the poor are treated in the U.S., please check it out if you have a chance. http://thewaronthepoor.blogspot.com/

    Like

    • December 30, 2013 11:56 am

      Justin: Thanks for reading my blog. I looked at yours and your ideas seem sound to me. Keep up the good work. With respect to going back to a gold standard, this would not be possible at this time. The current Keynesian system would need to crash and after some years we could go back if the people would desire this standard. It’s really up to the American people and the World community. My blog will keep you up to date on what is happening: https://kingdomecon.wordpress.com. D

      Like

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