Those "assets" are worthless. It is a transgression of capitalism and the realization of the governement of the true powers it has.
Just like a credit card account that is quickly maxed by a teenager, the duration of time between the enacting of the patriot act and the laws that enable a dictatorship into a de facto african type oligarchic exploitation of the whole population into privilege for the parasitic few is exponentially reducing by the day...
PeakOil is You
"You're Fired."
Re: "You're Fired."
by neocone » Mon 22 Sep 2008, 06:42:32
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neocone - Lignite
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Re: "You're Fired."
by Leanan » Mon 22 Sep 2008, 08:16:34
The big problem is...this isn't going to work. As Jerry McManus pointed out at TheOilDrum, Herbert Hoover tried this, too. He quotes from a book called Since Yesterday, written by someone who lived through the events of the time.
$this->bbcode_second_pass_quote('', 'T')he theoretically necessary adjustment became a practically unbearable adjustment.
Therefore Hoover was driven to the point of intervening to protect the debt structure -- first by easing temporarily the pressure of international debts without canceling them, and second by buttressing the banks and big corporations with Federal funds.
Thus a theoretically flexible economic structure became rigid at a vital point. The debt burden remained almost undiminished. Bowing under the weight of debt -- and other rigid costs -- business thereupon slowed still further. As it slowed, it discharged workers or put them on reduced hours, thereby reducing purchasing power and intensifying the crisis.
$this->bbcode_second_pass_quote('', 'T')he theoretically necessary adjustment became a practically unbearable adjustment.
Therefore Hoover was driven to the point of intervening to protect the debt structure -- first by easing temporarily the pressure of international debts without canceling them, and second by buttressing the banks and big corporations with Federal funds.
Thus a theoretically flexible economic structure became rigid at a vital point. The debt burden remained almost undiminished. Bowing under the weight of debt -- and other rigid costs -- business thereupon slowed still further. As it slowed, it discharged workers or put them on reduced hours, thereby reducing purchasing power and intensifying the crisis.
What is it they say about doing the same thing but expecting a different outcome?
Downsouth pointed out this report from two guys at PIMCO, who think Bernanke, the supposed Great Depression expert, doesn't really understand the Great Depression.
$this->bbcode_second_pass_quote('', ' ') The summer of 1932 marked the trough for US economic growth, which was well in the midst of the Great Depression starting in 1929. Global sovereign defaults were well underway by 1931. Turkey, China, Bolivia, Peru, Cuba, Brazil and Colombia all defaulted on their debts in 1931. Hungary, Yugoslavia, and regrettably Greece defaulted in 1932. In 1933, Austria and Germany joined the club. And, by 1934, all debtor countries except Argentina, Haiti, and the Dominican Republic had suspended debt service. Are we to accept the conventional wisdom that a mistaken, overly restrictive monetary and fiscal policy in the US created the Great Depression and led to these global sovereign defaults? It seems equally, if not more likely, that an imbalanced global trade system jarred by restructuring in Germany and Great Britain, and by prior revolutions against free markets in Russia and China may have been the initial and crucial culprit. The global constriction of trade was the result of several dependent and independent political and economic upheavals during the decade following World War I. It is a massive presumption to state that a more stimulative Federal Reserve (a la 2001-2002) could have prevented the course of events in the early 1930s.
The lessons for present-day policymakers are stark. Recent anti-deflationary policy in Japan, the US, and Europe are all predicated upon the conventional analysis emanating from the Great Depression. We feel these are mistaken and misguided.
(Yes, the date on the paper is 2006. They predicted this two years ago.)
"The problems of today will not be solved by the same thinking that produced the problems in the first place." - Albert Einstein
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Leanan - News Editor
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Re: "You're Fired."
by DarkDawg » Mon 22 Sep 2008, 09:27:46
I agree that we need to inform Congress that we are displeased by this proposal. What does it teach us if we bail them out? That this is all OK? That the next time it could be 3 or 4 trillion and it would still be OK, no problem, we'll cover it? When the dollar ceases to exist as a global currency, then what? I guess it will be too late to contact your representative at that point......unless you think your new rulers Abdullah-Hu-Putin will be sympathetic to your concerns.
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Re: "You're Fired."
by efarmer » Mon 22 Sep 2008, 09:29:11
fiat - "let it be done" from medieval Latin....
Fiat money rests on the integrity of what it represents
and when we don't show any integrity, we don't have
any money.
We put our brand name and our agencies highest ratings
on poisonous financial goods and sold them to our very
best customers until we made them all sick and at risk
of dying.
If the Chinese bankers did this, I have no doubt there
would be firing squads for them from their own government.
I fear we are going to have the toxic chefs from New York
dispensing medicine for our victims if Congress does not
get it right.
Fiat money rests on the integrity of what it represents
and when we don't show any integrity, we don't have
any money.
We put our brand name and our agencies highest ratings
on poisonous financial goods and sold them to our very
best customers until we made them all sick and at risk
of dying.
If the Chinese bankers did this, I have no doubt there
would be firing squads for them from their own government.
I fear we are going to have the toxic chefs from New York
dispensing medicine for our victims if Congress does not
get it right.
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efarmer - Intermediate Crude
- Posts: 2003
- Joined: Fri 17 Mar 2006, 04:00:00
Re: "You're Fired."
by dohboi » Wed 01 Oct 2008, 13:19:45
Time to use Leannan's handy links to contact your senators again. It's up for a vote again with a few "sweeteners." It's still fundamentally the same stinking, loathesome bill--the final disolutions of the few scraps of constitution we have left.
My most recent letter:
Dear Senator,
Much lipstick has been applied to the piggish bailout bill, but underneath, it is still what it is: an unconstitutional handing over of power from the legislative to the executive branch.
Your oath is to protect the constitution. Please do so by voting down this affront to the American system of checks and ballances--this is an enormous check with no ballance!
Sincerley,
Dr. John Harkness
My most recent letter:
Dear Senator,
Much lipstick has been applied to the piggish bailout bill, but underneath, it is still what it is: an unconstitutional handing over of power from the legislative to the executive branch.
Your oath is to protect the constitution. Please do so by voting down this affront to the American system of checks and ballances--this is an enormous check with no ballance!
Sincerley,
Dr. John Harkness
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dohboi - Harmless Drudge
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Re: "You're Fired."
by allmeyer » Wed 01 Oct 2008, 14:23:46
My fellow Georgians, it is time to vote Saxby Chambliss out of the senate.
"Chambliss: I Would Have Voted For Bailout"
Chambliss: I Would Have Voted for Bailout
Hope I linked it correctly.
"Chambliss: I Would Have Voted For Bailout"
Chambliss: I Would Have Voted for Bailout
Hope I linked it correctly.
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allmeyer - Wood
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Re: "You're Fired."
by Ludi » Wed 01 Oct 2008, 16:46:11
$this->bbcode_second_pass_quote('joeltrout', '
')What would happen if people couldn't borrow to purchase a car or student loans were no longer offered, or nobody could get a mortgage no matter how big their downpayment or small businesses could not borrow money for their operations.
')What would happen if people couldn't borrow to purchase a car or student loans were no longer offered, or nobody could get a mortgage no matter how big their downpayment or small businesses could not borrow money for their operations.
Folks used to save their money and borrow from friends and family to cover emergencies, buy houses, etc. Mortgages used to be for about a 5 year term. Back in ye olden days, people didn't depend on bank credit so much. Could that possibly work again? I run a (very small) business without using bank loans or carrying a credit balance. When my banker tried to give us a business line of credit I told her we operate our business in the black. She said she didn't know what that meant....
I'm not convinced a system based on endless credit is sustainable.
- Ludi
Re: "You're Fired."
by jbrovont » Wed 01 Oct 2008, 20:02:20
Hopefully! I guess either they'll listen up, or ninjas will kick down my door and I won't be posting anymore soon. 
$this->bbcode_second_pass_quote('americandream', '
')
Good on you mate! Boot these dole bludging blood suckers up their collective arses!
$this->bbcode_second_pass_quote('americandream', '
')
Good on you mate! Boot these dole bludging blood suckers up their collective arses!
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