Thursday, March 25, 2010

History is a long time ago...

The world currency collapse took another turn today as China weighed in on all the sovereign debt floating around. “We don’t see decisive actions telling the market we can solve this,” according to Zhu Min, a deputy governor of the People’s Bank of China. In other words he doesn’t think that the debtor countries can keep going to the people like him and expecting more and more credit.

Speaking of a lack of credit; Wednesday’s Auction of five year Treasury notes did not go well and was immediately reflected in the interest rate of home loans. (there is an official linkage between the two). Thursday’s auction of seven year notes didn’t go any better and this is going to start causing problems. Mr Zhu and his colleagues are showing less and less interest in buying debt, preferring things like copper mines and farmland in east Africa.

Fed Chairman Ben Bernanke’s says not to worry, Fed monetary policy will remain extremely accommodative. In other words he will just keep printing money and loaning it out at zero interest so Wall Street can keep inflating the bubble. Cash will keep draining in trillion dollar chunks to China and they will keep spending around the world. Potentates and dictators will continue to swell their sovereign wealth funds and buying Wall Street financial products like water systems in Greece. (oops, that one didn’t work out) Well there’s Portugal (uh-oh)…

It’s all a long line of dominos set up by the Masters of the Universe on Wall Street with the full participation of the people in Washington who did away with all those pesky 1930’s laws that would have put them all in prison for this sort of thing. There are probably still laws that deal with fraud that could be brought to bear despite a concerted effort by the Bush Crime Family to literally scrub them from the books.

The Fed claims they have a plan to control the money supply (actually taking money out of circulation) to avoid the wild waves of inflation. Supposedly that will also avoid the economy crushing deflation as debtors default en masse. Throughout history this has always been the eventual out come this sort of insane monetary policy that we’ve been living with for the last thirty years. That’s why they wrote all those laws seventy-five years ago, but like Bush said, “history is a long time ago”.

Now we’re about to stare history in the face.


RobertM said...

The Fed claims they have a plan to control the money supply

The Fed is right that we need to control the quantity of the money supply. Unfortunately, they're the problem. The control of money needs to be returned to Congress where at least the citizens have *some* control as vs. what we have control. We'll need to start state-run banks like North Dakota to break the hold banks have on us now first before moving the power away from the banks into the hands of Congress, power which they will not give up easily. I don't trust Congress anymore than the next guy but they're the only thing we've got. It will be our fault if we fail to elect people that aren't corrupt. At least there will be *some* transparency and even more if we demand it.

We've been allowing the Fed to hide all sorts of shit- like wars and back-door bailouts. It boggles the mind that we have to pay interest to banks to fund our country. The country could pay off all it's debts tomorrow if we wanted. Hopefully people will start listening to people like Bill Still or join up with the non-partisan monetary reform group

Anonymous said...

P2 wrote about laws that would put them all in prison: "There are probably still laws that deal with fraud that could be brought to bear despite a concerted effort by the Bush Crime Family to literally scrub them from the books.

(1) One thing that continues to be overlooked is the fact that the Bush "(IN)Justice Department" remains intact in nearly all states. In every new adminstration US Attys automatically resign. Not this time. Obviously, the chances of of criminal prosecutions are near zero. (ANo one other than Bernie Madoff ran a Ponzi scheme,right?) Title USC (crimes) are full of appropriate statutes. I will cite some if you like and supply approprpriate case law.But when the government becomes the lawbreaker, who will protect the people? (Ramsey Clark) NO ONE.

(2) IMHO the only way for we the people to bust up the Banksters is thru CIVIl Rico (Racketeering) ie 18 USC section 1964(c)(1988)....."any PERSON injured in his business or property by reason of a violation of section 1962 may sue therfore in any appropriate United States District Court and shall recover threefold the damages he sustains and the cost of the suit.....)

However, judicial activism and their hatred of citizen suits has eviserated civil rico remedies. ONLY by flooding the federal courts .. and by demanding that Congress force (they can, despite what we are told) the rules of statutory construction would this be successful. Someone tell me why massive racketeering suits have not been if most reading this blog don't allready know.(hint,it has to do with occupational suicide)

RobertM said...

Anon- I agree that there has been no justice. That is why Obama has been such a disappointment. I'm glad you brought it up. The more people that about it, even if only amongst their friends, the more likely it is that the two sides would agree to prosecutions. All the liberals and conservatives *I* know think there should be MASS jailings amongst the banksters.