View: Silver Coin Values
Does anybody else miss Ron Paul? Abolish the Federal Reserve?
Off Topic:John McCain calls for 0% interest rates on mortgages:It seems a safe bet that Sen. John McCain isn't getting his advice on how to resolve the mortgage crisis from the mortgage industry.Today, in his speech in Orange County, Calif., the winner of the Republican primaries proposed that the mortgage industry help reboot the housing market by offering zero percent mortgages. That's not a typo.Here's the relevant passage from his speech: We should also convene a meeting of the nation's top mortgage lenders. Working together, they should pledge to provide maximum support and help to their cash-strapped, but credit worthy customers. They should pledge to do everything possible to keep families in their homes and businesses growing. Recall that immediately after September 11, 2001 General Motors stepped in to provide 0 percent financing as part of keeping the economy growing. We need a similar response by the mortgage lenders. They've been asking the government to help them out. I'm now calling upon them to help their customers, and their nation out. It's time to help American families.McCain might also want to propose that we repeal the phenomenon called inflation since that's about as likely as mortgage bankers offering zero percent interest rates. Link
Holy Moley!Tim, have you read this?!?!?http://www.ft.com/cms/s/0/a5bb2302-fad7-11dc-aa46-000077b07658.html?nclick_check=1
The FT link doesn't work for me -- can you be a little more specific? Is the link behind a subscription wall?
v:Yeah, it's that whole "solvency as liquidity problem" again.eh: You have to register with FT to see the article - I think that gets you 30 article views.
Let me quote Ayn Rand here:"The moral justification of the gold standard is that those who earn their money, keep it, and the parasites have no way to get their hands on it."
Unless one addresses the deficits, interest rates on treasuries must remain contained and go down; otherwise, rapidly increasing interest on a rapidly increasing debt load blows up the monetary system. Problem now is that the bond market has bifurcated and interest rates on mortgages and other bonds are going up. Fed and Treasury (for that matter all central planning) are losing control of bonds. Fed action on BSC can be viewed as an attempt to regain control of the bond market beyond treasuries. The ready willingness to directly monetize mortgage debt as necessary should make it very plain that this currency is done. And as this one is effectively the basis for all paper currency worldwide, so are they. We recover a metal standard for money within, say, the next 10-20 yrs.
The Fed needs to be abolished. The government needs to issue it's own debt free money and take back the power to create money from the private banks that make up the Fed.Usury creates inflation, and the income tax is required to pay the interest on government debt. As Thomas Edison once said, if a government is able to issue 30 billion in bonds with a promise to pay it back with interest based on its good credit, it can also issue 30 billion in its own debt free currency based on the same good credit.Under the Fed system, the money the banks create out of thin air is for the principal. They do not create the money for the interest. The government does not pay back the principal, just the interest, from income taxes. Personal and corporate debt on the other hand requires both be paid. Corporate debt comes at low interest rates, and profits allow them to pay back their loans.Personal debt requires interest be paid with savings. The interest rates they get are not very favourable. A typical mortgage over 30 years requires that interest payments are more than twice the principal. Where does that interest come from, since the banks do not create this money. Collectively, it is an impossible contract. As such, the credit market debt bubble is now 350% of GDP, higher even than the Great Depression (269%).Besides, there is no consideration on the part of the banks, since they create the money out of thin air. http://www.webofdebt.com/articles/dollar-deception.phpBasically, the system works by banks creating money out of thin air as principal, knowing the interest can not be paid back for 100% of their loans, which allows them to seize real assets from those who default and end up in foreclosure. In essence, the Federal Reserve System is a system designed for banks to create fictitous capital without earning it, and exchanging it for capital created by labour, transferring wealth and property from the lower classes to the higher classes who own the banks (interest and property) and government (income tax).The Fed MUST go. It is the problem. Every recession or depression is intentionally created by the Fed to facilitate wealth and property transfer. In the end, the Big banks always come out of each crisis bigger, stronger and wealthier, while smaller banks and the middle class get eaten up.Yet after each crisis, we give the Fed more power.The solution to the current crisis is simple. The government can issue it's own money, buy up each mortgage at face value. Burn the mortgages, and set mortgage debt to zero. Future mortgages will be issued by state banks under state regulations. Money will be created by National banks under federal supervision, to ensure the money is loaned to sectors of the economy that improve the country, at low interest, like infrastructure, and not for speculative fictitous capital ventures.When Profit motives are the only motive considered by private banks and health insurance companies, and government does not intervene to protect the general welfare of it's citizens as required by the constitution, then what you see today is the result.
Post a Comment
© Blogger template
Newspaper by Ourblogtemplates.com 2008
Back to TOP