Prt 5 - The Right to Do Wrong: the denationalization of money and “too big to fail”.
“[T]he greatest financial crisis since the great depression”
There are two parts to this blog entry, or maybe two aspects is a better descriptor: one aspect is for people familiar with the subject matter and the other is for regular ordinary proleteriat nobodies like me.
1st of all - an immediate solution - to the reasonable fear regarding the last banking crisis and more to come is to define what “quality capital” is and to require far greater amounts of it as bank reserves.
But apparently some of the Banksters and political theorists that Mittney &co have decided to pander to for campaign contributions and who knows what else, want to recreate the Lincoln Greenback era - i.e., abolish the Fed and let National banks do what thou wilt, with little to no capital requirements (through the use of derivatives, capital arbitrage &c) or else feign a return to the Robber Baron era with some sort of anachronistic ‘bullion standard’ with the same lack of regulation.
And if you, Mittney, try to blow this off by saying you support greater capital requirements I’m going to show everyone the bogus slight of hand you intend to deploy in order to con the public in that regard, which is actually in place right now, anyway. The only thing I’m presently aware of that even addresses it is “The Volcker Rule”
It seems like the “too big to fail” Banksters have a tantrum whenever such things are even mentioned. Apparently they’re such radical individualist/megalomaniacs they want to pretend they’re JP Morgan bailing out what was left of the Federal government under Grover Cleveland.
A temporary solution, is to vote all GOPstapo members out of Congress, restore Glass Steagall and return to classic levels of capital reserves.
But in fits of Demagoguery, at it’s extreme worst, Mitt Romney, Paul Ryan, Mitch McConnell and other less notable, yes men, all obsequiously trunkin ‘n’ tailin’ it in the GOPstapo procession of animal life are still allegorically lambasting President Obama for USA government handling as well as International coordinated handling of what the OECD has correctly identified as “[T]he greatest financial crisis since the great depression”; and the GOPstapo, have in fact, avowed to abolish all of the enabling legislation for the various international agreements regarding Basel III and Dodd-Frank, which the USA and most of Europe have already agreed to.
Paradoxically, Basel III and as far as I can tell Dodd Frank don’t do what has to be done, but do serve as a skeletal regulatory structure.
But I assure you, that this tact of Mittney, is yet one more example of the abject irresponsibility and inexcusable recklessness of these no nothing full of shit GOPstapo “hobbyists”. And seeing that we’re on the subject, Mittney, you and Paul Ryan are such hot shit big fucking deal, businessmen, why don’t you take your money and actually do something useful with it, like this guy growingpower.org:
It is absolutely appaling that these ridiculous GOPstapo self professed geniuses can’t think beyond a hamburger and milkshake and even take a stab at explaining these financial matters to the Public or for that matter any of the other things that they whine and bitch about regarding President Obama. It would be nice to have an alternative view on these things - by people seeking political office - and one that could be explained in a manner the common person can understand; but clearly the reason Mittney &co don’t do this is because they can’t; they simply don’t have the ability or knowledge. So they leave it to the handlers who haven’t a clue either. Yeah, smooth move, ex lax.
It’s also painfully apparent that Mittney & co., aren’t even aware of these issues - aside from what they read here - or what they’re told to do or say after accepting one of their myriad 10s of millions of dollar$ checks; and yet Mittney wants to be President of the USA. O he’s so cute, isn’t that nice, winner of the two bit political hack award, too. It’s electronic,
Ok, well, since he can’t do it, I’ll do it for you - no fee - Let’s start here:
1) Leverage, Public Credit and Central Banking
Leverage is a pretty simple concept and it involves what is now referred to a “fractional reserve banking”. This is the way Central Banking was always done. If your reserve
is 25% you can have 3 times that amount available as credit - that is 25% is reserve and 75% is loaned. So the question is, what is the reserve.
Originally, the reserve was specie - that is, gold coin and then in almost all instances the gold coin was augmented by silver coin and thence with national securities. The only time fractional reserve banking wasn’t utilized, at the US National level was when Andrew Jackson abolished the Central Bank and moved all government money to his favorite State banks or else the modest amount of money the Federal goverment collected by taxation, which had to be paid in gold coin, just sat around fallow until Congress had him spend it. Eventually a Federal Reserve system was established which eventually led to a gold bar standard. Just previous to that time, during “The Great Depression”, James P. Warburg recommended a reserve rate of 40% to avoid bank runs.
Nowadays, for the 1st time in post Constitutional history, the conservatives want to
“denationalize” money . They want the various too big to fail banks to be allowed to make up their own money by making up their own reserves and essentially not having any reserve requirements at all. Bill Clinton as well as other US Presidents were duped into going along with this which was sold simply as “banking deregulation” but what it amounts to is the unconstitutional Federal Government abdication of the US Constitional powers of money creation arbitrarily to private Business; and at least it appears that Bill Clinton now realizes that this has to
be corrected. So should everyone else after seeing the results:
When I 1st looked into modern financial and monetary history one of the 1st things I found was that historians mark the birth of capitalism with the Charter of the Bank of England. This confused me, but at the same time, interested me, so I looked more.
My supposition was that this event was the 1st massive commercial enterprise made possible by the throne: by granting privilege to a group of persons pooling their capital, to be paid in to one common treasury or stock, solely for the purposes of commercial enterprise; and thus recognized under the law as one corporate person; yet distinguished from municipal corporations, eleomysonary corporations and Universities; but there was a more. This Public Credit made possible by the actions of this Bank, facilitated a general means whereby Public borrowing was made possible thereby alleviating the burden and necessity of an otherwise much higher degree of
And from this credit, joint stock commercial adventures (from whence the term “venture” capitalism was derived) could more readily assume an eventual permanence as well as with a growing number of diverse commercial corporations and enterprises. This was an opportunity for those beyond the Landed Gentry to participate.
A commercial corporation is essentially a group of private persons pooling their capital into a common treasury to facilitate a particular enterprise granted by the Charter of incorporation.
US Political Distinctions
2) Now the Relationship between Public Credit and Private Party Capital in the USA came into being about 100 years later.
And when the USA government was new, it had assumed a considerable degree of debt and with very modest resources at its disposal. But the Federal government, through this institution, could likewise exploit capitalist commerce, and thus the US Central Bank, would in a similar manner, as the Bank of England, facilitate the functioning of government through the use of Public Credit. And stood as the Chief Financial Asset of National Sovereign Power.
As commerce grew and incorporations became more diverse, so would the size of the Public Credit, which could then facilitate an even greater provision for purposes of the General Welfare.
And thus the heart of the Federalist commercial system.
But when I was researching all of this, I found the foregoing presented in a far more abstract and in some cases an even misleading manner; and given the peculiarity of Democratic-republicans in regard to banking along with the dominance of Southern Confederate racism, Thomas Jefferson, Andrew Jackson and hard money Democratics (most of whom presumed that Jewish Merchants were trying to take over the world) that anything genuinely Federalist (not to be confused or confounded with “the federalist society”, who are actually anti-federalists) is considered to be equally evil if not more so than communism or public use of the word “fuck”.
But in very recent times, there now appears, a growing number of Democratics that have cleared this foregoing shit from their brains and are beginning to see things in a reasonably pragmatic and National Light, which stands in stark contrast to the GOPstapo who seem to be living in some anachronistic Lost in Space States Rights CSA limbo, which they now ask you to bless for them “in the name of God”, so that their various old fart refugees from the 1940s and 50s can die in a pipedream, rather than just keeping their peculiar beliefs, at an alter, or in the deathbed, where such things best belong.
So this is how the basic aspects of this classical system works. You can keep your soul and everything.
The Balanced Budget vs Public Credit
In my previous blog entries I had mentioned consumer credit. This is a good example for me to use in explaining these Public Credit functions because consumer credit is something that most of US may now have; which was not always the case and is in fact a recent development. So by now and at one time or another, all of us have utilized and needed consumer credit and are therefore familiar with it. The reason we take it on is because we can’t afford to come up with the cold hard cash required to make a particular purchase - e.g., for a house, a car, various durable goods and other appliances; and so instead we utilize credit - we borrow the money to make the purchase - and we do this on terms contractually agreed to; whereby the seller obtains their desired price and we take physical possession of and use of the product, on credit, by agreeing
to pay the asked price, all of which is executed on our part by way of installment payments, with the addition of an interest charge, until the total amount is paid in full.
This is pretty much the way it works with the Federal government too. So as long as the Federal government has a means of revenue or income - that is, Mitch McConnell and his yesmen working for him rather than you, allow the government to raise taxes - then the government has money to spend and service the Public Debt, the same as we do with job salary, investment income, proceeds from the sale of body parts or whatever. So the government may do precisely the same thing as we do. The only immediate difference, is, that the government needs a really big bank; and the greater the degree of commerce the greater the capital reserve and credit capability (lending power) of that really big bank becomes.
So in the same manner as installment payments, Public Credit allow us to obtain something we can’t pay for all at once; likewise, Public Credit and government’s service on it’s borrowing, allows US to tax less.
Now everyone knows that if Congress happens to spend more than it takes in, within a fiscal year, then there is a budget deficit. This is exactly the same thing that happens to you, when you have outstanding installment payments - e.g., payments on your house, a car or any number of things. Well there is no irresponsibility on your part, if you purchase on credit, as long as you make the, agreed to, payments.
In fact, you, as well as the government are even provided with various opportunities from time to time to consolidate and refinance your debt to ease your burden of payments. Like right now, when interest rates are so low.
The point is, no one demands that you pay for your car, house or whatever, right now, all in the same year; and yet, this is the demand that the “Conservatives” are now making on you, in regard to the National Government; and they’re urging you to heel, sit and obey. They might as well be in uniform, jack boots with riding prop and armband.
You might also have varying terms of credit, long term, like a mortgage, intermediate term, like a car loan and shorter term, like a bar tab.
No one is suggesting or demanding that you pay for all of these things, all in the same year you purchase them (except maybe your bar tab); but what the “conservatives” are demanding of you, again, in regard to the National government is to not to borrow anything at all, regardless of whether you can or not. This also means that they are demanding that you spend no more than you take in each and every year for all the remaining years of your life, whether you can afford to or not; but that’s not all, there is an additional demand, that you take in less, each year, while at the same time, telling you, that taking in less and spending less, each year and every year until you die, will raise your standard of living.
How could anyone be so stupid to believe them? Well if you had the time to think about it as I’m explaining it here you’d realize as you do now that the Conservatives are trying to sell you a line of shit.
The usual argument you hear is “each State is required to hand in a balanced budget every year, so should the Federal government”; but what they don’t tell you is that their so called “sovereign States” are proscribed from establishing this same system of Public Credit for their own State government purposes see US Const Article 1, section 10; you see, under the Federalist system, US citizens are sovereign. In the words of Our 1st Ch Justice of the USA, John Jay “we are sovereigns without subjects”.
“The primary quality that [money] must posses is trustworthiness … it must be impossible for anyone other than an agreed upon authority to create it” — James P. Warburg “The Money Muddle” [Knopf (1934)}
The whole denationalization of money and all that goes with it just doesn’t square with any aspect of “what we agreed to” (see Part 4).
But the way I view government spending which I believe is the correct way of looking at it and I’m confident after some reflection you shall agree, is not in some abstract manner like you have to hand in a balanced budget to the GOPstapo or you have to do deficit spending to stimulate the economy: but it’s instead the same way you look at your own individual spending choices. If I truly need something, but don’t have the cold hard cash to buy it, then as long as I have the credit available to me and I can make those payments then I’m going to buy what i truly need. Now of course the only difference is that the government is guaranteed income by the ability to tax; and unfortunately, at present, you don’t have that and need to enter into indentured servitude to business or else as the GOPstapo insists, you must starve to death. So as the Law of Nations regards the rights of the sovereign citizen, transposed to National Rights, we collectively exercise through Our National Community and National Power: the correct way of looking at this is not no no no no you can’t make that purchase, you can’t get what you need, Mittney and McConnell knows what’s best for you and you must obey them; it is instead the same as it is for you as a person, so as long as this Nation needs a particular thing for the benefit of Our General Welfare - as we agreed to - then we shall make that purchase, as long as there is Public Credit and as long as Our General Government can make those payments; and in this regard there is no better time than now because interest rates are the lowest they’re ever going to be.
Now why in the world would you vote for people whose sole purpose and intent is to act contrary to the General Welfare and this foregoing reason? And have done so for the last 4 years with the sole purpose and intent ,to prevent you from exercising your Will and your duty and obligation to the General Welfare? Isn’t that who and what we have fought wars against?
So why are these self proclaimed “Conservatives” making these demands on you? And in such frantic and alarming tones? Why are they saying “time is running out”, this must be done, right now? “We can do this”? They did the same thing when the debt was $900 billion dollars, you elected them and then they tripled it. They are scamming you, and they’re running the oldest con there is, in order to do so: they speak to you in alarming tones and you wonder, O dear, what’s wrong, but they don’t say all they do is tell you this same bullshit and thus leave you and each new generation to believe whatever you will. Are you hypnotized? You travel back to the 1920s but at current prices with 3 times as many people while they clean out the till and leave you with the bill.
Either you do what they demand or else … or else what? Their tone remains frantic. It’s a con. And then they bitch whine complain have infantile tantrums, cry. The early American Patriot prescription for that con is this, “Stand Their Bluff”.
After all, they’re adults, it’s not like we’re abusing them by leaving them there in their poopie undies and tears.
So aside from their desire to abolish the USA and impose a confederacy whose only Union is war, they also want the richest people in society to have money which government might otherwise obtain by taxation and use to service the debt; by putting the Public Credit in jeopardy, the rich retain the money and then the Bourgeoisie, get 1st dibs on it, instead of the government. This is the Chief Attribute of “trickle down economics”. But if they allowed the original and classic way to work, those people at the top would receive an income by holding US government securities and pay zero State and local taxes on it. So what’s wrong with that?
The “conservatives” don’t want it that way. They want to denationalize money and deregulate banking. In short they want to make their own money based on their own authority under pretence of their own self created assets and cripple the Federal government
Then they become the new sovereign royalty and you get to eat cake. US history is rife with megalomaniacs.
But what happened instead is that they destroyed themselves but unfortunately the Federal Government found them “too big to fail” and bailed them out by assuming the “debt” the Bigsters created - in short - the Bail Out made the “funny money” real all of which was arbitrarily created on the basis of a speculative bubble in a vat of boiling bullshit.
And if there was ever any movement or group in the USA that could be accurately tagged “unamerican” it is beyond any reasonable doubt, them; and their current agents are Mitt Romney, Paul Ryan, Mitch McConnell and any other member of the GOPstapo or Southern Confederates that refuses to stand against their nefarious plan.
But the difference between you and the Federal government, aside from having no guaranteed income, is that, you are always the same person that’s buying and bringing in money or obtaining credit to make necessary purchases to sustain your own very existence and they’re not. So as is the case, now, the GOPstapo is demanding that President Obama not only notask for Congress to spend any more money but that he also be removed from office, because then they are free to takeover the US government by installing the Mittney junta. So if things seem bad it’s not the “conservatives” fault it’s President Obama’s fault; and then when you get weak and allow the GOPstapo to have the Presidency again - especially when there is no reason on earth for this to happen - then these same rules that they they themselves now impose on President Obama won’t apply to them - the teflon party - they’ll tell you it was the Democratics that forced them to spend more money than they took in. This is exactly what the Teflon President Ronald RayGun used to say, ‘without the line item veto, both of my hands are tied behind my back’.
And by the time you figure it out, and realize it’s bullshit, they’ll be off with the money you will pay for again and be left in another recession.
RayGun’s dead and now we’re left with all of his crazy ass nuclear weapons and ABMs, which we didn’t need, then, still don’t need, now, and are still paying for; and now Mittney wants more !! you’d have to be the biggest sucker on earth to vote for this guy.
The Special Duty and Obligation of the Democratics.
US Senator Edward M. Kennedy used to say, “The Democratic Party has a Special Duty and Responsibility” in regard to civil rights. Well the reason he said that is because the Democratics are the ones that fucked up more shit in the USA than any other group or assembly. The Democratics were the party of slavery while the GOPstapo was the party of the 13th, 14th and 15th Amendments to the US Const. So while the Democratics finally decided to move forward, and leave all of that White Supremacist CSA behind; the GOPstapo went back to pick it up, dust it off and breathe new life into it: but not only the New South, which is merely the old CSA, but the US Abolition of Central Banking by Andrew Jackson
This is not only what Ron Paul wants to go back to, along with the “Tea Party” and the “Gold Commission”, [you can Google it, just look for “The Subtreasury System”] but the entire GOPstapo Establishment wants this too and have formed a one hand washes the other alliance with those too Big to fail Banksters who now openly disdain President Obama, the Democratic Party and subsidize the Mittney-Ryan campaign. Scroll down in the following link to “the denationalization of money” lQQk
James P. Warburg, (ibid.) identifying two qualities of money, “that only one authority may create it” - see US Const, Article 1, section 8 and section 10.
Since the GOPstapo have no desire to make enormous purchases of anything except war and weaponry, their existing military dreams would have to be abandoned - that is - there would be no means whereby these sorts of expenditures could be made without deficit spending and the assumption of debt, which was readily apparent in the US Civil War and Woodrow Wilson I (WWI). Otherwise, there was a low degree of government spending, no consumer credit to speak of and no safety net; but there was also far less people and much greater raw resources - e.g., a person could hunt, fish and gather which for the greater number of persons today is absolutely impossible.
Attempting to have any serious Public discussion of Communism in the USA is like attempting to have a serious Public discussion about sex - conservatives will always fuck it up, censor and suppress it and chances are still pretty good that the Democratics will let them.
Sex is a common urge all of us have and it may in some combinations result in procreation. From that simple fact, the US got itself into this paradigm where a person wanting sex has to obtain a license from the State, must then bind themselves to a person of the opposite sex for life and indentured servitude to business. This is the heart, soul and flesh of conservatism. So then reasonable persons decide well I can’t afford to purchase a bride and all of the socio-economic prerequisites that go with it so they become a Homosexual - the man can’t afford it and not enough sugar daddies to go around and thus they avoid all of this conservative bullshit imposed on them and everyone else; and then the conservatives react by wanting to “justifiably” kill you or put you in prison with other members of your sex. This is an absurd way to live and when you confront any conservative with this, the only pretence they have is that God made them do it, Henry Cabot Lodge, Mittney whoever, spoke directly to Him that’s the way He wants it to be, so do as He wants or you’ll go to Hell - i.e., someplace where none of these people will ever be for all of the rest of eternity. Conservatism ought to be abandoned by everyone and if some people can’t give it up and can’t cope in the resulting tolerant society then let them go off and have conservative communes.
The situation is the same with equality or more precisely with the end of all class distinctions. An egalitarian society without stratification. This is the only reason conservatives detest and oppose Communism because they want to be above eveyone else rule US; and communism would make that an impossible dream.
But the only way “capitalism” can continue and serve to fulfill any General Welfare purpose is by the adoption of various aspects of communism. Not all at once, not in the violent overthrow of the Eagle Forum or Moral Majority, but gradually, through social innovation. And aside from the imposition of Heterosexual marriage, Negro, female and “[non] kindred race” subservience - conservatives are opposed to all social innovation, because any social innovation, aside from conservative repression is Socialist or communist. So the reason conservatives want to execute the final solution and thus exterminate or disenfranchise all they accuse of as being Liberals is because a particular group of enlightened individuals realize that communism is inevitable and have already started social innovation some time ago. It is what economists refer to
as a “mixed economy”. It’s not purely laissez faire free market “capitalism” and not purely Socialist or communistic, but a blend of both. So I have to admit that conservatives correctly observe that social innovation will eventually transform the US into a communist society. It is as inevitable as feudalism evolving into capitalism; and even here we have the conservatives in open defiance of the US Constitution and everything American by insisting on the preservation of as much of feudalism as is conceivably possible. But they particuarly like the social stratification, unequal rights, plutocratic privileges and “unequal promises” all of which they directly attribute to
And if you compare the two closely you will readily see, hat conservatives are no more conservative than the federalist society are Federalists. Conservatives are social parasites that want to use government to impose their beliefs on everyone and thus rise to the top as those fit to govern. Their means for doing so is not by the creation of wealth or success it’s by creating their own money and then saying fuck you to the rest of the world.
But it didn’t work for them the last time and resulted in the greatest financial disaster since the Great Depression, now they want your permission to do it again.
The slave mongering Southern Democratics of the past, and those that still linger to these outmoded “traditions” along with the GOPstapo successfully rendered Communism into one of the USA’s altime greatest taboos; it’s worse than male to male anal intercourse with felching and still rivals public use of the word fuck.
Consequently, few people, if any, understand what it actually is. because even if we tune in to those mysterious top secret hidden AM stations we’re informed that it’s one of those things that cause Aliens to open a dimension behind you, in front of you, anywhere they want !! feel the hairs rising on the back of your neck? Or else causes Satan and/or one of His demons like Caspar the Friendly Ghost (friendly, yeah sure) to fly into your earhole, make your head spin all the way around, have really bad skin and vomit pea soup; and the moment you advocate any Marxist idea or anything that seems even similar, you are invariably confronted with “O, so you want the US to become North Korea”; or else the Liberals say “o that’s ridiculous, there’s no such thing, there are no communists in the USA, otherwise we’d receive campaign contributions from them”. So then we’re supposed to defend Life in North Korea? Kill a Commie for My Mommie? Or just make a contribution?
And so during the so called “Cold War” the emphasis was always about - there are Communist Spies in Our Government !! well wait a minute, how do you know they’re spies? Because they correspond with people in the Soviet Union !!
Knock knock, who’s there, Homeland Security, your mailman informed “us” that you received a postcard from Moscow, may we have it please or do we have to tear your house apart and destroy all of your personal papers and effects and then successfully plead sovereign immunity.
Well you can go on and on about this but there are also allegedly spies from Israel and Mittney wants to nuke Iran presumably because some Jewish guy from Las Vegas gave Mittney’s campaign a shitload of money. Sheldon Adelson must be a spy !! depending on your definition of what a spy is. There are undoubtedly spies from France the UK and everywhere else. I’ve recently heard rumors that there are spies from the independent sovereign nation of Ohio and they’re in the State Dept. !! and the only time in USA history where anything similar ever happened was possibly with Thomas (the Big Cheese) Jefferson suggesting that Federalists were Anglomaniacs and closet monarchists
You Big Bully You.
The solution is one of perspective - that is - the cool calm and collected person ought to have considered these purported spies as “Russian Spies” rather than Communist Spies -e.g., I don’t recall any frantic-panic about Austrian School economists being in the Treasury Department or Friedrich Hayek sympathizers in the White House when they killed Allende, installed Pinochet and sent Hayek to help him out with the establishment of his Nazi democracy.
I bought an ion battery Ryobi hedge trimmer and more recently a hand drill utilizing the same technology. This is a very nice tool. I was impressed. So I immediatley looked to see where it was made. I don’t have to tell you. Nonetheless, nice job !!
Another aspect of the conservatives is that they hate labor unions, mostly because their ideology is based on feudalism and southern slavery. These “astute” businessmen don’t know how to be successful with non slave labor. But at the same time, the D-r(s) have decided that the National
Government must be entirely dependent upon business for everything and as a consequence of creating this unnecessary circumstance and the predisposition to slave labor, Business is unable to “compete” with communist nations, who act in their Nations’ and their Peoples own self interest. In other words USA business’ also don’t know how to function without other businesses being subservient to them so they abandoned manufacturing and 1st adopted the retailing of products made by slave labor under Fascist dictatorships and then started retailing products made by a communist nation.
The difference is that China acts in the National self interest whereas the US, presently functions, in the interest of individual Business, primarily, the individual ones it likes best. Call it, “the new protectionism”.
Because the conservatives have ruled policy for nearly 4 decades and US business is stuck in the aforesaid paradigm their opposition to non slave labor is correct but their solution - make US Citizens live and work in sweat shops out of guilt - isn’t. The real solution is what I have consistently urged in my blogs, that government provide subsistence to every citizen and reimpose a progressive tax system, which is explained elsewhere, in my blogs.