The unveiling of the Obama financial regulatory plan is the next big diversion to facilitate continuation of the government spend, spend, spend binge. It will divert American’s attention from the real tasks at hand, the complete overhaul of Wall Street and the rescue of our monetary system.
Eighty percent (80%) of the credit derivative industry is comprised of bets where the betters do not need to own an underlying security that is involved in the bet. See my previous article “Fat Cats Stacking the Deck”. These bets are akin to those in Las Vegas, where chits are exchanged for money to play games. Nothing of value is involved in the exchange of the chits by gamblers. Twenty percent (20%) of the industry is comprised of insurance that has not undergone underwriting prerequisites of insurance laws. The startling simple diagnostic cure to the demon derivative dilemma is stop the Las Vegas like credit gambling on Wall Street and regulate the insurance like derivatives under the insurance laws.
Handing money intended for use in a free market monetary system to chip holders to maintain their bets is complete insanity. That is exactly what the government financial and insurance institution bailout entails. Fat cats on one side of these bets get their chips from leverage (borrowing of script indirectly provided by taxpayers). See my previous article “Government Needs a 180 Degree Turn”, fourth paragraph. Now taxpayers are also providing the bailout backup script for chips in the hands of institutions on the other side of the Las Vegas type bets. If Congress were doing their constitutionally required job to protect the people in the first place, there would already be clearly explicit laws preventing Las Vegas type gambling with the people’s money. Las Vegas betters provide their own chips. Why should the American taxpayers provide financial institutions and fat cats their demon derivative bet chips?
Without laws designed to protect our monetary system, financial oversight by government cannot be effective. Inability to quantify leveraging in demon derivative contracts makes protective oversight ineffective. See an explanation of such leveraging in my previous article, “Government Needs a 180 Degree Turn”. Inability to unravel the demon derivative bundling of Wall Street as alluded to in my previous article, “It’s Time to Let American Know What’s Really Going On” also makes oversight ineffective. Don’t be misled. Outlawing the debilitating use of leverage and the obstructive bundling is prerequisite. The outlawing of the Las Vegas type betting on Wall Street is obviously a huge priority.
Laws are absolutely necessary to mitigate against situations alluded to above. We are on the path to destroying our form of government (the highest achieving one in the history of mankind). Why? Because of the complete incompetence of our Congressional electees to fulfill their governmental roles. We citizens must besiege Congress with demands that term limits be placed on Congress. This is the best hope clear thinking Americans have to cope with our dilemma. The obstructionalists must be removed so that civilization can advance.
To rescue our financial system, we must give priority to retrieving bailout script setting in the behemoth institutions as back up support for the Las Vegas type bets. This is the exact opposite of the policy now being followed by the government.
Citizens must voice their opposition to the thrust of the Executive Branch of government to continue the spend, spend policy which is destroying our form of government. We must discuss this with each other. We must work to advance our knowledge and insight to what is happening in America. We must demand better analysis of facts from all media through letters, boycotts and enlightened use of a free computer internet.
Above all, we must foster a groundswell of opposition to spend, spend, spend. The stakes have been raised far beyond social arguments. The survival of the United States as a leader of the civilized world is in great doubt. Even the Socialist governments of Europe meeting in Brussels drafted a statement on June 19, 2009 announcing they were working on an exit strategy for unwinding previously implemented fiscal stimulus. The world has been telling us to outlaw Wall Street abuses. It’s time we the people insist upon it by protesting in the streets, if necessary. The time to stand up and fight for our economic freedoms in now.
We are not far removed from a potential attempt to devalue the U.S. dollar. For what? To destroy our monetary system and complete the usurping of power by the Executive branch of government. We have moved past possibility toward probability. Citizens must resond.
Tuesday, June 30, 2009
Monday, June 15, 2009
Where is Our Government Leading Us?
Foreigners holding rights to U.S. dollars (U.S. Treasury bonds) no longer believe that investing in the U.S. monetary system has future prospects. They have recently taken losses by selling long term U.S. Treasury bonds. Why losses? Because no one wanted the bonds except the U.S. Treasury, who was forced to prevent a free fall in value, in order to continue what increasingly appears to be a complete bailout and stimulus fraud. The U.S. spending policy has transparent revealings to everyone but the sleeping or brain washed American electorate. We continue to plunge headlong toward full blown uncontrollable bankruptcy of our entire country.
European governments had been urging Obama to clean up our Wall Street mess, as their economies have been hit hard by the economic slowdown that everyone knows was caused by the demon derivatives. Now the European governments have no choice but to prop up their own monetary systems by retrieving their investment in long term U.S. Treasuries. British politicians are feeling the heat from their own constituencies, who are knowingly fed up with government gullibility in not dealing realistically with their situation.
The U.S. has had a reprieve of sorts, by the fact that the Chinese government has a vested interest in the U.S. monetary system. It is the U.S. consumer who provides the majority of the growth funding for the Chinese economy, by consuming a large portion of Chinese goods. The Chinese reinvested some of the proceeds of their long term U.S. Treasury bond sales, but only after the U.S. Treasury offered short term bonds for interest rates it was forced to pay.
This was a response to the Treasury Secretary Geither’s visit to China, where a usually polite Peking University audience snickered at his assertions that the U.S. government was taking necessary measures to protect the U.S. dollar. The Chinese know all about how to keep the power of money out of the hands of its people. It’s not hard to objectively perceive the Treasury tactic I have pointed out to you in a previous article of mine, The Destroying of the Dream on May 27, 2009. The government is poised to bankrupt the U.S. monetary system at will. Complete monetary power does not need a free market monetary system. It just needs taxation power.
Any currency the Chinese government can control in China will serve their purpose. The Chinese are now flexibly poised for the future. The U.S. market is not the only large market in the world. India is enjoying robust growth. It is a beneficiary of employment cutbacks in Europe and America. Improving computer technology is facilitating the transfer of jobs to India.
Not only is the U.S. government trashing our free market monetary system, it is destroying the economic psyche of American savers who are trying to live the American dream. Consider that, utilizing taxpayer money to control General Motors, the government used controlling corporate power to ban “Mom and Pop” bondholders from reorganizational planning meetings. Disregarding “Mom and Pop” bondholders preferences under bankruptcy laws, the government gave legally inferior contractual debtors (labor unions) the more advantageous position in reorganization. This blatant political payback to a controlled voting block, ignored the systemic structure of society that recognizes the rights of a worker to the fruits of his invested savings. Thwarting a basic natural law of civility with political corruption is insanity. It is interesting to note that the “fat cat” bondholders were not given the same shoddy treatment.
Individual investors throughout the Unites States are not going to be indifferent to such an outrage. Are you going to invest your earnings in corporate bonds with government running amuck in our American society? Is such an outrage just another government tactic to insure that everyone follows their lead to spend, spend, spend? What could be more damaging to the operation of a free market? But remember, anarchy doesn’t need a free market, only monetary power.
If the American public were paying attention they would be witnessing the dismantling of a free market monetary system (impending systemic bankruptcy), the destroying of the dominant world free market economy and the creation of a run of the mill anarchy, dictating the use of the U.S. dollar.
Can you believe that’s what the majority of Americans want? It’s not what I want for my grandchildren. There is much to clear up in Wall Street, but we need to reign in the government now. The spend, spend, spend policy must be stopped in its tracks. It will destroy the American economic system and remove the underpinnings for the achievement of economic growth and justice for all citizens.
Wednesday, June 3, 2009
Defiance of the Laws of Nature, Human and Economic
Humans originally led a nomadic life as hunters and gatherers. Civilized growth flourished when reasoning minds realized that accumulations of fruitful work could be shared if workers could be assured of receiving benefits for their labor. This assurance became the cornerstone for an advancing civilization. Our constitution is based on this same premise and provided a unique opportunity for sustaining economic growth.
The work incentive in our free society emanates from what I have described as the America dream and, most importantly, from an innate natural human quality for self preservation that achieves extraordinarily in an atmosphere of human freedom. Consider that savings can only result from work. Without savings being injected into an economy, the economy cannot grow. Without growth there can only be economic contraction through consumption. It’s what people want and need to sustain life (i.e. life essentials) that determines where savings are directed in a free market economy. A disciplined monetary system where money values are determined in an exchange environment dependent upon productivity (work values) is prerequisite for keeping the economic focus on essentials of life.
Our American monetary and economic systems are uniquely designed to accommodate the advance of human civilization. Our government and the fat cats in our society are on the path to control of the money supply which will result in destruction of the system that is facilitating the advancement of civilization itself. A reading of my article “Destroying of the Dream” is informative in this regard.
Fat cats and our government itself are on course to degrading our standard of life, the highest ever achieved. Take away the American dream and the survival incentive of the human spirit and you are succumbing to autocratic control of the many (people) by the few (politicians or fat cats). Politicians and fat cats are adept at hiding truths and vying for monetary power control. Civilization (people) is the huge loser.
Societal structure will regress 233 years if civilization acquiesces to the dismantling of the American dream and stripped of the hope of the hunters and gatherers. Can you envision how the Pharaohs convinced the people to direct their work to the building of pyramids (the desires of the few) instead of sustenance of life necessities (the needs of the many)? Humans have been subjected to autocrats throughout history. When will we learn that life is not sustained by impressive infrastructure, but by natures provisions? Big show and empty promises will eventually prove fatal as they have throughout human history.
When you are lulled to sleep by expectations that someone will give you something for nothing, you have contracted a fatal disease. The best you should strive for in the real world is that you can work for the advancement of civilization while providing for your own welfare. That opportunity is uniquely provided in the United States. However, it is being subjected to rapid elimination in today’s America. The snake oil salesmen are blinding Americans with baseless illusions.
Autocratic control is control over life and death itself. The autocrats control who lives or dies. Confiscation and population control are tools in their hands. They are ultimate destroyers of civilization. Their fruits for mankind are a return to hunting and gathering by the surviving few.
Autocrats have failed miserably at every turn in the history of mankind. Our government is regressing rapidly to autocratic power.
My comments are not predicative of what is about to happen. But I am frightened that without an American reawakening, they are the logical course. Our government must stop its spend, spend, spend and bailout policies without delay.
The work incentive in our free society emanates from what I have described as the America dream and, most importantly, from an innate natural human quality for self preservation that achieves extraordinarily in an atmosphere of human freedom. Consider that savings can only result from work. Without savings being injected into an economy, the economy cannot grow. Without growth there can only be economic contraction through consumption. It’s what people want and need to sustain life (i.e. life essentials) that determines where savings are directed in a free market economy. A disciplined monetary system where money values are determined in an exchange environment dependent upon productivity (work values) is prerequisite for keeping the economic focus on essentials of life.
Our American monetary and economic systems are uniquely designed to accommodate the advance of human civilization. Our government and the fat cats in our society are on the path to control of the money supply which will result in destruction of the system that is facilitating the advancement of civilization itself. A reading of my article “Destroying of the Dream” is informative in this regard.
Fat cats and our government itself are on course to degrading our standard of life, the highest ever achieved. Take away the American dream and the survival incentive of the human spirit and you are succumbing to autocratic control of the many (people) by the few (politicians or fat cats). Politicians and fat cats are adept at hiding truths and vying for monetary power control. Civilization (people) is the huge loser.
Societal structure will regress 233 years if civilization acquiesces to the dismantling of the American dream and stripped of the hope of the hunters and gatherers. Can you envision how the Pharaohs convinced the people to direct their work to the building of pyramids (the desires of the few) instead of sustenance of life necessities (the needs of the many)? Humans have been subjected to autocrats throughout history. When will we learn that life is not sustained by impressive infrastructure, but by natures provisions? Big show and empty promises will eventually prove fatal as they have throughout human history.
When you are lulled to sleep by expectations that someone will give you something for nothing, you have contracted a fatal disease. The best you should strive for in the real world is that you can work for the advancement of civilization while providing for your own welfare. That opportunity is uniquely provided in the United States. However, it is being subjected to rapid elimination in today’s America. The snake oil salesmen are blinding Americans with baseless illusions.
Autocratic control is control over life and death itself. The autocrats control who lives or dies. Confiscation and population control are tools in their hands. They are ultimate destroyers of civilization. Their fruits for mankind are a return to hunting and gathering by the surviving few.
Autocrats have failed miserably at every turn in the history of mankind. Our government is regressing rapidly to autocratic power.
My comments are not predicative of what is about to happen. But I am frightened that without an American reawakening, they are the logical course. Our government must stop its spend, spend, spend and bailout policies without delay.
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