| Is North Dakota the Answer? 06-29-10 mpg Keiser Report №55: Markets! Finance! Scandal! Must View Video - Alt - A quote...."This time Max Keiser and co-host, Stacy Herbert, look at the latest scandals of invisible gorillas, virtual pay and China's hi-tech underclass. In the second half of the show, Max talks to Ellen Brown, author of "Web of Debt", [GoglBkSrch]* about 'deficit terrorism.'" - *links added Yeah, it's confusing, on the one hand people argue you shouldn't be printing and spending because it devalues your currency and causes inflation, (the Austrian School) therefore you should cut your deficits and encourage austerity instead. On the other hand you have Keynesians arguing that government debt isn't so bad and will help revitalize the economy. There's a simple answer to this conundrum, they're both right and they're both wrong, how's that possible you might ask? As Ellen Brown suggests, any analysis on deflation and inflation depends on who gets the money, how its created, how it's distributed and for what reasons. In other words, who gets to control the money supply and therefore the entire economy. If the wealthiest one percent control the money supply, (the Chicago School of Economics) as they have done for at least the last ninety years, they'll always encourage government debt so they can cover all their bad bets in the financial markets while also funding their various illegal wars and occupations for profit. After all, it's a win-win situation for them, if they lose after they've doubled down again and again in the markets, or after they've started more and bigger wars, they won't have to pay the price, instead it'll be the "little people" who'll be forced to pay the butcher's bill. This is known as "socializing losses, privatizing gains" or "heads they win, tails you lose" Also, if the money they've created out of thin air is locked in various bank vaults to fill the holes they've created in their respective balance sheets, or leveraged into the financial markets -- or both -- hardly any of it will reach "the real economy" and the only thing these activities will accomplish is to stimulate more speculation in the financial markets while the "real economy" continues into a deflationary debt spiral. If the money the wealthiest one percent have borrowed is taken out of their banks and made available to the "real economy" the entire banking system would promptly collapse because most of their banks' assets, especially those contained within the TBTFs, are virtually worthless. Hence Bernanke's proposals and policies for zero capital requirements, thirty trillion dollars worth of back-stops, guarantees and pay-outs, "mark to fantasy", no real financial reform, a hands off policy regarding derivatives, the endless and highly creative varieties of "extend and pretend" programs enacted by almost every single financial institution everywhere, including Ben's multi-trillion dollar swap&hold4'eva toxic "asset" allocation programs to numerous Fed accounts and last but not least, Ben's ZIRP4'eva largess for everyone. Eventually these massive government programs of support for the wealthiest one percent may begin to actually endanger "their" (it sure ain't ours!) fiat currency (otherwise known as a sovereign debt crisis), if that happens there will be prompt demands by them, along with their presstituting lackeys, for various deficit reduction and austerity programs, (also known as socializing losses - or - tails you lose). However, if these austerity programs begin to reduce economic demand even further, the debt spiral will most likely increase in its severity and longevity. If Ben, out of desperation, begins to monetize the mountains of rapidly accumulating debt he and his Bankster friends have created -- and hidden -- thus actually freeing up some of this trapped currency for the "real economy", there will be a corresponding increase, possibly a massive one, in price-inflation, (also known as too much currency chasing too few goods) and probably a further erosion in the dollar's "world reserve currency status." What a horribly tangled web our financial parasites have woven. How can they possibly get out of their self-induced liquidity trap, what's the solution? Well to tell you the honest truth folks, there actually isn't one. Not for the current fractional reserve system that creates ever increasing personal and government debt per capita during each successive ten year economic/war cycle, with ever increasing interest payments and an ever increasing portion of the real economy being usurped by the non-producing, parasitic, Bankster complex along with it's co-dependent military industrial complex. Instead we'll have to create another system. A system that DOESN'T include the financial parasites or war mongers. Perhaps, as Ellen Brown suggests, it will look something like North Dakota's, perhaps it will look like something else. Only time will tell. - mpg ========== ========== ========== ========== ========== ========== ========== ===== For more on these sorts of issue see the articles shown below.... It's a Bit Early for Another War, But Then Again.... 07-08-10 - mpg The First Salvos of the Currency Wars - 05-07-10 - mpg Pumping From One Hold of the Ship to the Other - 04-21-10 - mpg Let's Just Call It QE2 - 04-01-10 - mpg The Virtual Economy - 05-01-09 - mpg Price Deflation, Black-Scholes & The Fed - 12-01-09 - mpg The Problem is Not the Economy, It's the Politicians -11-20-09 - mpg Currency Spheres - 10-29-09 - mpg On Inflation, Deflation & The Fed - 08-17-09 - mpg Wall Street Love's Making Money -- Literally - 04-02-09 - mpg Enforcing the Rules -- Too Little, Too Late - 02-27-09 - mpg - contains article list Try Predatory Lenders - It Fits Better - 02-21-09 - mpg The Plunge Protection Team - mpg - 03-07-07 1.3 Quadrillion and Counting - 09-18-08 - mpg Some Tentative Laws - 07-20-08 - mpg Effective Fed Funds Rate 03-24-07 - mpg |