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Why would you not want $6.6trillion a year to spend..”for the betterment of mankind”?

When a bank charges interest, it may be usury.
When the government  charges interest it is taxation. “Render unto Caesar,what is Caesars”
When  a Caesar has a mandate .. “to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
What better way is there than:
DO FOR OURSELVES WHAT WE HAD ALLOWED THE CENTRAL BANK TO DO FOR THE Private For Profit Banks (PFPB) !
LOAN OUR own MONEY and CHARGE (interest) A TAX ON IT.
AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA (FRBA),RESTORE MONETARY POWER BACK TO THE PEOPLE ,OPERATE THE FRBA WITH ABSOLUTE TRANSPARENCY, (“GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens.”_The Road to Oz)
Form a more perfect “capitalistic “monetary circle: $100 trillion issued as loans to come back as $200 trillion as payment while at the same time as it returns creates $100 trillion in new loans while spending $100 trillion as Congressional appropriations for the benefit of the people.
No inflation or deflation for there is zero change in the capital value of the sovereignty.
There is zero change on the balance sheet of the Central Bank; a true zero net change.
Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)
Read and challenge:
Frederick Soddy writings, namely “The Role Of Money”
(Entire book as a free download…)  http://archive.org/details/roleofmoney032861mbp

Why would you not want $6.6trillion a year to spend..”for the betterment of mankind”?
READ and Challenge, Endorse and Promote:

http://www.positivemoney.org/

“Could These 3 Simple Changes
Fix The Economy?”

“One Giant Leap For Prosperity”
The question should be, “Who has an accurate understanding of ‘Money’?
“Money is the NOTHING you get for SOMETHING to exchange for ANYTHING”,Soddy.
All money is a receipt of wealth, yet all wealth is not receipted.
Fiat must be created in order to redeem something of value into anything of value.
If not, there would be only the impossible transferring value via barter.
There must be a issuer of the sovereign currency be it colorful paper, coin, or printed dots.
Call it a Central Bank, or a Monetary Group, whatever you like but it must exist and it must be able to control the quality and quantity of the sovereign currency. The total of which it is custodian of and not owner of, since the sovereign group being the owners of the entirety expect their sovereignty to redeem their fiat “on demand for any goods or services”.
As per Frederick Soddy, Please read “The Role Of Money” (Free full download) http://archive.org/details/roleofmoney032861mbp

“The real question is who is the Monetary Sovereign in our society: the Government we elect, or the Banks we don’t?”(scottonthespot)
While we the people were asleep at the wheel, we legislated hat PFPB would be allowed to issue our currency via loans and also be allowed to tax that issuance via interest.
We loss sight of “In God We Trust” and turned that trust over to the Private For Profit Banks.
We have also now discovered that they can “print an unlimited quantity of issuance .
Since reserves are required after issuance, a self fulfilling reserve is met. Also the Fed MUST honor that issuance with ‘good faith and credit’ or the system will fail.
A Central Bank, under full transparency being the sole issuer of the currency. Currency that is owned by the people, currency that the Central Bank is the caretaker , custodian and stores while creating lawful transfers of the currency’s redemption value. The total assets of the Central Bank is the total of the redeemable goods and services of the entire sovereignty subject to audit (2014 being set at $900 trillion).This is the “Capital” of the “Capitalistic” sovereign group.This is the wealth of the group.
In order ” “to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…” the Central Bank must work “For the People” while at the same time without appropriating the people’s already owned “goods and service.”
What better way is there than:
DO FOR OURSELVES WHAT WE HAD ALLOWED THE CENTRAL BANK TO DO FOR THE Private For Profit Banks (PFPB) !
LOAN OUR own MONEY and CHARGE (interest) A TAX ON IT.
AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA (FRBA),RESTORE MONETARY POWER BACK TO THE PEOPLE ,OPERATE THE FRBA WITH ABSOLUTE TRANSPARENCY, (“GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens.”_The Road to Oz)
Form a more perfect “capitalistic “monetary circle: $100 trillion issued as loans to come back as $200 trillion as payment while at the same time as it returns creates $100 trillion in new loans while spending $100 trillion as Congressional appropriations for the benefit of the people.
No inflation or deflation for there is zero change in the capital value of the sovereignty.
There is zero change on the balance sheet of the Central Bank; a true zero net change.
Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)
Read and challenge:
Frederick Soddy writings, namely “The Role Of Money”
(Entire book as a free download… http://archive.org/details/roleofmoney032861mbp
“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism would be the best ways and means to help “form a more perfect union….”, Pontifical Council.
WHY WOULD YOU NOT…….
“Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha.

“LEGISLATE FOR “We the People”  WHAT WE HAD LEGISLATED THE

“A rival power strong enough ultimately to overthrow all other forms of government.”

“Top Secret” “For American Eyes Only”

Why do economist NOT see it coming?
A
rival power strong enough ultimately to overthrow all other forms of government.”

 WARNING SIGNS-

http://online.wsj.com/articles/occ-report-warns-signs-of-credit-risk-building-in-banking-system-14037

Syndicated leveraged loan issuance reached a record high in 2013 as the search for yield in the low interest rate environment drove an increase in risk appetite across institutional investors such as collateralized loan obligations (CLO) and retail loan funds.

Ah, CLOs! They’re uncannily similar to subprime-mortgage-backed Collateralized Debt Obligations, the toxic waste that contributed to the financial crisis. But they’re backed by junk-rated corporate loans – for example, the “leveraged loans” that private equity firms use to strip-mine their portfolio companies. These overleveraged companies borrow even more money from banks. But instead of investing it in productive assets to create income with which to pay off the loan, they pay it out as a special dividend to the PE firms. It pushes the company deeper into the hole, lines the pockets of the PE firm, and saddles the bank with a dubious asset. The bank then packages these leveraged loans into a lovely CLO and unloads it to institutional investors and retail funds. A business that is booming at record levels, the OCC lamented.
M&A loans are part of the leveraged loan miracle. Last year, they “achieved the highest issuance volume since 2007” – just before the financial crisis brought down the house of cards. The average total-debt-to-EBITDA multiple for leveraged loans increased to 4.7X, the highest, you guess it, since 2007.
Hence the toxic mix: higher leverage, lower yields, riskier borrowers, and tighter credit spreads, nicely packaged in ever flimsier covenant protections for lenders, all to feed “investor demand for high-yield products” that “continued to surge.” A record $258 billion of these new covenant-lite loans are issued last year. Not just a record, but “nearly equal to the total cumulative amount issued from 1997 to 2012.”
That, the report explained, was “ample evidence of increasing credit risk in the leveraged loan market.” And the “quality of underwriting” was “a supervisory concern.”
Fed Chair Janet Yellen may deny it well past her retirement, much like Alan Greenspan is still feverishly denying it, but the OCC simply states it: the Fed-engineered “low interest rate environment” causes banks to make bets and take risks that cause banks to collapse. They did it in the run-up to the financial crisis. And they’re doing it now.
“We fear that, once the effects of monetary stimulus disappear in the US, the weakness of the economy due to income inequalities may suddenly be revealed.” Read….Investment Bank: The End Of US Economic Growth

ADD DERIVATIVES-

Needless to say, these numbers are quite a bit smaller than the trillions
of dollars in At the three largest bank derivatives dealers,
www.occ.gov/news-issuances/speeches/2006/pub-speech-2006-121.pdf – 41k – 2013-11-24
Futures & Forwards Swaps Options Credit Derivatives TOTAL $ Trillions Top
4 Banks All Other Banks Four Banks Dominate in Derivatives
www.occ.gov/news-issuances/news-releases/2012/2012-96a.pdf – 506k – 2013-11-24
$175.8 trillion. In Q2, credit derivatives were $15.5 trillion, making total
derivatives $182.1 trillion. Graph 1 $Trillions Q1 Q2
www.occ.gov/news-issuances/news-releases/2008/nr-occ-2008-152a.pdf – 411k – 2013-11-24

ADD CHINA-

China Bank acquires Plantersbank | ABS-CBN News
www.abs-cbnnews.com › Business
Sep 18, 2013 · China Bank and Plantersbank on Wednesday signed a memorandum of agreement for China Bank’s acquisition of more than two-thirds of Plantersbank’s …
China’s ICBC Moves – WSJ – The Wall Street Journal
online.wsj.com/news/articles/SB…
Jan 22, 2011 · Business China Bank Moves to Buy U.S. Branches ICBC Signs a Deal for Bank of East Asia’s Retail Outlets
Fed approves Chinese bank purchase of US bank – Yahoo News
news.yahoo.com/fed-approves-chinese-bank-purchase-us-bank…
May 09, 2012 · The Industrial and Commerce Bank, China’s largest bank with total assets of approximately $2.5 trillion, is 70.7 percent owned by the government of China.
First US approval for Chinese bank purchase – FT.com
www.ft.com › Companies › Financials
Industrial & Commercial Bank of China has gained US approval to purchase an…


“To allow it to become a source of revenue to private issuers is to create, first, a secret and illicit arm of the government and, last, a rival power strong enough ultimately to overthrow all other forms of government.”

Private For Profit Banks issue sovereign money via loans. As a result of  their issuance (creating money at 30 or 40 times leverage) , the Fed has no choice but to honor that issuance or suffer a ‘systemic failure’
That is a collapse of the faith and credit of the dollar.
How will your children sleep, your grandchildren also knowing
CHINA will have that awesome power: to use their $5.5 trillion to earn $55 trillion by using the legislated privilege we have given to the private for profit banks-”The power to issue our own money and to charge interest for financial gain ?
Thank you for hearing me out.Read more by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)

Thank you for at least considering the challenge.
May I sign off with a Frederick Soddy quote, from the Preface of “The Role Of Money”:
“… It is concerned less with the details of particular schemes
of monetary reform that have been advocated than with the general principles to which, in the
author’s opinion, every monetary system must at long last conform, if it is to fulfil its proper role
as the distributive mechanism of society. To allow it to become a source of revenue to private issuers is to create, first, a secret and illicit arm of the government and, last, a rival power strong enough ultimately to overthrow all other forms of government.”

 

Comments made by Justaluckyfool

***TO EDITORS,
There are many articles posted that debate many issues; none of which
challenge Frederick Soddy. Is there no fun in debating maybe, perhaps what is true?
Or is there a fear that this doctrine may be endorsed for the benefit , the welfare of all beings? For relative equality and justice !

The Prizes
rwer.wordpress.com
http://rwer.wordpress.com/the-prizes/#comment-43663

Please read “The Role Of Money” (Free full download) http://archive.org/details/roleofmoney032861mbp and then place the name , Frederick Soddy on the list.
Written in 1921,- 1934, Frederick Soddy not only explains the “systemic flaw” (allowing an entity other the the sovereign government the right to ‘print’ and ‘tax’ the sovereign currency; but also explains the unintended consequence of this awesome power.
“PREFACE
This book attempts to clear up the mystery of
money in its social aspect. With the monetary
system of the whole world in chaos, this mystery
has never been so carefully fostered as it is to-day.
And this is all the more curious inasmuch as
there is not the slightest reason for this mystery.
This book will show what money now is, what it
does, and what it should do. From this will
emerge the recognition of what has always been
the true role of money. The standpoint from
which most books on modern money are written
has been reversed. In this book the subject is not
treated from the point of view of the bankers
as those are called who create by far the greater
proportion of money but from that of the
PUBLIC, who at present have to give up valuable
goods and services to the bankers in return for
the money that they have so cleverly created
and create. This, surely, is what the public
really wants to know about money.
It was recognized in Athens and Sparta ten
centuries before the birth of Christ that one
of the most vital prerogatives of the State was
the sole right to issue money. How curious that
the unique quality of this prerogative is only now
being re-discovered. The” money-power
” which has been able to overshadow ostensibly responsible
government, is not the power of the merely ultrarich,
but is nothing more nor less than a new
technique designed to create and destroy money
by adding and withdrawing figures in bank ledgers,
without the slightest concern for the interests of
the community or the real role that money ought
to perform therein.”
Who was (Nobel Prize for Chemistry ,1921) Frederick Soddy ?
http://en.wikipedia.org/wiki/Frederick_Soddy

“In four books written from 1921 to 1934, Soddy carried on a “campaign for a radical restructuring of global monetary relationships”,[12] offering a perspective on economics rooted in physics—the laws of thermodynamics, in particular—and was “roundly dismissed as a crank”.[12] While most of his proposals – “to abandon the gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical trends, and establish bureaus of economic statistics (including a consumer price index) in order to facilitate this effort” – are now conventional practice, his critique of fractional-reserve banking still “remains outside the bounds of conventional wisdom”.[12] Soddy wrote that financial debts grew exponentially at compound interest but the real economy was based on exhaustible stocks of fossil fuels.”

—–Original Message—–
From: justaluckyfool <justaluckyfool@aol.com>
To: justaluckyfool <justaluckyfool@aol.com>
Sent: Sun, Apr 13, 2014 10:54 am
Subject: Prizes 4 Soddy

The Prizes

rwer.wordpress.com
http://rwer.wordpress.com/the-prizes/#comment-43663

Please read “The Role Of Money” (Free full download) http://archive.org/details/roleofmoney032861mbp and then place the name , Frederick Soddy on the list.
Written in 1921,- 1934, Frederick Soddy not only explains the “systemic flaw” (allowing an entity other the the sovereign government the right to ‘print’ and ‘tax’ the sovereign currency; but also explains the unintended consequence of this awesome power.
“PREFACE
This book attempts to clear up the mystery of
money in its social aspect. With the monetary
system of the whole world in chaos, this mystery
has never been so carefully fostered as it is to-day.
And this is all the more curious inasmuch as
there is not the slightest reason for this mystery.
This book will show what money now is, what it
does, and what it should do. From this will
emerge the recognition of what has always been
the true role of money. The standpoint from
which most books on modern money are written
has been reversed. In this book the subject is not
treated from the point of view of the bankers
as those are called who create by far the greater
proportion of money but from that of the
PUBLIC, who at present have to give up valuable
goods and services to the bankers in return for
the money that they have so cleverly created
and create. This, surely, is what the public
really wants to know about money.
It was recognized in Athens and Sparta ten
centuries before the birth of Christ that one
of the most vital prerogatives of the State was
the sole right to issue money. How curious that
the unique quality of this prerogative is only now
being re-discovered. The” money-power
” which has been able to overshadow ostensibly responsible
government, is not the power of the merely ultrarich,
but is nothing more nor less than a new
technique designed to create and destroy money
by adding and withdrawing figures in bank ledgers,
without the slightest concern for the interests of
the community or the real role that money ought
to perform therein.”
Who was (Nobel Prize for Chemistry ,1921) Frederick Soddy ?
http://en.wikipedia.org/wiki/Frederick_Soddy

“In four books written from 1921 to 1934, Soddy carried on a “campaign for a radical restructuring of global monetary relationships”,[12] offering a perspective on economics rooted in physics—the laws of thermodynamics, in particular—and was “roundly dismissed as a crank”.[12] While most of his proposals – “to abandon the gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical trends, and establish bureaus of economic statistics (including a consumer price index) in order to facilitate this effort” – are now conventional practice, his critique of fractional-reserve banking still “remains outside the bounds of conventional wisdom”.[12] Soddy wrote that financial debts grew exponentially at compound interest but the real economy was based on exhaustible stocks of fossil fuels.”

***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha
READ MORE: http://bit.ly/MlQWNs

“Two Small Steps By Mankind; One Giant Leap For Better Equality, Justice and Prosperity For All.”

“In the 1920s the leading academic economists, Frank Knight of Chicago and Irving Fisher of Yale, along with others including underground economist and Nobel Laureate in Chemistry, Frederick Soddy, strongly advocated a policy of 100% reserves for commercial banks. Why did this suggestion for financial reform disappear from discussion?Nationalize Money, Not Banks by Herman Daly.

By Justaluckyfool,“Two Small Steps By Mankind; One Giant Leap
For Better Equality, Justice and Prosperity For All.”


“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism would be the best ways and means to help “form a more perfect union….”, Pontifical Council.

“LEGISLATE FOR US WHAT WE HAD LEGISLATED THE CENTRAL BANK TO DO FOR THE Private For Profit Banks (PFPB) !
ISSUE OUR OWN MONEY AS LOANS AND CHARGE A TAX CALLED INTEREST ! ! ! “


AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA (FRBA),RESTORE MONETARY POWER BACK TO THE PEOPLE ,OPERATE THE FRBA WITH ABSOLUTE TRANSPARENCY, (“GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens.”_The Road to Oz)
Form a more perfect “capitalistic monetary ” circle: $100 trillion issued as loans to come back as $200 trillion as payment while at the same time as it returns creates $100 trillion in new loans while spending $100 trillion as Congressional appropriations for the benefit of the people.
With payments of $415 per month on each $100,000 for 20 years, the Central Bank would receive an annual revenue income of $10 trillion per year.
$5 TRILLION to be turned over to the US Treasury as taxes raised while at the same time make new loans for $5 TRILLION so as to complete the the prosperity circle.
No inflation or deflation for there is zero change in the capital value of the sovereignty. There is zero change on the balance sheet of the Central Bank; a true zero net change. Whatever the amount ‘entrusted’ to the Central Bank remains that exact amount. Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)
****Would $5 trillion spent “bottom up” help close the “inequality gaps”?
****Federal Personal Income Tax ? just a way to redistribute part of a excessive gap of inequality.
What if …We had a Federal Reserve as a caretaker of the American sovereign currency with full transparency that worked for the people.
Have the Federal Reserve raise revenue for Congressional appropriations to help establish… “a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”, while at the same time reduce taxes?
The answer lies in not how the most powerful force in the universe is used ,rather how you redistribute what it creates !
“The most powerful force in the universe is compound interest” – Albert Einstein.
You had also asked for simplicity.
THE CURE by Justaluckyfool:
“DO FOR OURSELVES WHAT WE HAD ALLOWED THE CENTRAL BANK TO DO FOR THE BANKS (PFPB) !
LOAN OUR MONEY AND CHARGE A TAX (interest)ON IT.”
“Why is it so difficult to understand a simple truth: ‘ We the people’ have legislated the right to ‘print’ our money (via loans) and the right to tax that issuance (via interest) to the Private For Profit Banks (PFPB)?”
How is that working for you?


Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)

*WHAT IF THE …The Fed Reserve were to become the CENTRAL BANK WORKING FOR THE PEOPLE (CBWFTP) instead of working for the Private For Profit Banks (PFPB) .
Let’s try this game: Substitute the words “Central Bank Working For The People” (CBWFTP) where ever” Private For Profit Banks” (PFPB) appears.
****PFPB  have $100 trillion in assets as mortgages on residential and commercial real property (RE) loans. The average compound interest rate is 4% for a term of 30 years. The PFPB  would have created that $100 trillion ‘out of thin air’  which would have an attachment that would require $300 trillion to be paid to the PFPB in order for the loan to be paid in full. YES, take away the smoke and mirrors. Now we must replace (reduce to zero ) the initial loan amount by subtracting $100 trillion; leaving a profit,income,taxation from ‘somewhere else’ of $200 trillion. This amount goes as profits to the PFPB. Revenue they may use for their own selfish purposes.
READ IT AGAIN,
BUT THIS TIME REPLACE “PFPB” WITH “CBWFTP”.

Why would you not want prosperity for yourselves and your children?

Why would you not want $200 trillion turned over to Congress, to be used..”to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

Comments made.

” Multiple studies have been coming out showing that private sector leverage is damaging to gdp growth above certain levels , typically in the range of 80-100% debt/gdp for either the household or business sectors. Combined private and public high leverage is doubly damaging. In the U.S. both the household and business sectors are at close to 80% debt/gdp now , per Keen :

http://2.static.australianindependentbusinessmedia.com.au/sites/default/files/styles/full_width/public/keen_us_4.png?itok=tvnG4Clc

Read more at http://pragcap.com/this-statistic-is-horrifying#wwTT6zbQ6UjiS0Kf.99

WHY can’t economist do ‘simple math’ ?
IF ‘households’ , people are in debt for @$20 trillion for an average @4% for @average 25 years ($1T-student loans, $4T- credit card loans,$12T- RE loans,
$3T-Misc loans), WHY would you not see this as maybe, perhaps some kind of problem?
Where the hell are the 90%, the debtors supposed to get the
ONE AND ONE HALF TRILLION DOLLARS a year, just to pay off this debt?
While at the same “maintain a standard of living”?
And since I speak English as not with the ‘forked tongue’ of an economist, why is $1.5 Trillion per year needed to pay off $20 Trillion?
Answer. Because the 4% interest is a revenue gain (Tax called “interest)
on the $20T which makes the balanvce to be paid $40 Trillion.
One could ask, “Why don’t you see these things coming?”

 

ANOTHER COMMENT:
http://rwer.wordpress.com/2014/04/07/how-not-to-win-an-economic-argument/#comment-48458

Could “Minsky” prove:
Banks that issue new money by ‘loans’(Ex. mortgages) that carry terms and conditions of ‘ interest’ create an income stream that generates a least 100% from old money (already in existence).
2001 to 2005 Mortgage loans went from $9 trillion to $12 trillion
From 2001 for the next 30 years @ $9trillion in loans @ 6% interest would create deposits into the banks in order for the notes to be paid an amount greater than $18 trillion.
Banks need only 6% of the $9 trillion ($54 billion) on their balance sheet, none of which needs to be their money-it need only to be ‘deposited, entrusted to them.
Can “Minsky” prove that “Banks by issuing new money by loans not only create that issuance but also have an asset that creates for the bank a means to gain
at least that amount as a profit.
The cause of the 2008-9 collapse and why a ‘systemic failure’ came to light.
Banks discovered a way to suck part of that “interest income gain” from the people and into their pockets. Not only was payment immediate but it was a deposit of a gain that was NOT recorded as an asset on their books.
The mortgage defaults were not at fault.
The banks blackmail and extortion of the appraisers to higher dollar loans were not a fault.
These have been a part of the system forever. A system that has earned the Private for Profit Banks trillions upon trillions and could eventually “allow them to gain ALL of the wealth …(“The greatest inability of the human
race is our inability to understand the exponential function”:
SO WERE DID IT GO WRONG ?
When the banks discovered how to beat the Rule of 72, How they could satisfy their greed immediately, they captured ‘the interest income gains’ they secretly spend over the 30 years-immediately.
They invented “MBSs” The trick was to collect “the non-existent future value of the asset-the loans without changing the assets value thereby allowing the banks to keep 100% of real money paid to them today. The asset remains the same and is zeroed out over time as it is paid.
Here’s the deal:
Hey, big money people, how would you like to be guaranteed $9 trillion INCOME over the next 30 years ?
Just write us a check for $1 trillion. BTW it’s a AAA Security on our books that can’t go wrong.
They took the money and ran.
On the next offer after some questioing the banks had to give a little-they paid for insurance against loss in order to close the deal. Next time around they had to guarantee against loss (recourse).
Here comes the systemic failure.
The insurance company didn’t have enough money to cover the loses-not
those of the “Ms” of the “MBSs” ;the losses of the future interest.
The banks didn’t have the money to buy back (their guarantee)
When “Banks” and “Insurance Companies” can’t pay and TRUST IS LOSS-
That is “systemic failure”, albeit the mortgages are still a valuable asset baked by the real property whatever real % and the government; they did not fail.
IF was the banks and the banks alone.
“Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha.
Inequality , injustice is like water, a part of life, but may, because of the size of its gaps, become toxic.
The solution:
“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism would be the best ways and means to help “form a more perfect union….”, Pontifical Council.
DO FOR YOURSELVES WHAT YOU ALLOW THE CENTRAL BANK TO DO FOR THE (PFPB) BANKS !
LOAN YOUR MONEY AND CHARGE (interest), A TAX ON IT.ALSO commented on:
http://neweconomicperspectives.org/2014/04/three-passages-akerlof-romers-1993-article-prevented-crisis.htmlAndrew,”IOW the intermediate buyers were hardly victims– they created a Demand for the garbage loans so that they could securitize them into AAA rated RMBS, then CDOs for sale to …- PENSION FUNDS …- THE legitimate victims in the loops, w borrowers slightly behind.”
Because they purchased ” the guaranteed future interest income from the “M” of the MBSs”.
When that income disappeared and the guarantors (Banks and insurers ) could not make their promise to pay the system could have failed because of the loss of ‘trust’.
Borrowers were only slightly behind since their losses were limited to the actual amount they had in the game (some cases ;nothing).

Excerpt from Comments by “Justaluckyfool”
“Banks by issuing new money by loans not only create that issuance but also have an asset that creates for the bank a means to gain
at least that amount as a profit.”

The cause of the 2008-9 collapse and why a ‘systemic failure’ came to light.

Banks discovered a way to suck part of that “interest income gain” from the people and into their pockets. Not only was payment immediate but it was a deposit of a gain that was NOT recorded as an asset on their books.
The mortgage defaults were not at fault.
The banks blackmail and extortion of the appraisers to higher dollar loans were not a fault.
These have been a part of the system forever. A system that has earned the Private for Profit Banks trillions upon trillions and could eventually “allow them to gain ALL of the wealth …(“The greatest inability of the human
race is our inability to understand the exponential function”:
SO WERE DID IT GO WRONG ?
When the banks discovered how to beat the Rule of 72, How they could satisfy their greed immediately, they captured ‘the interest income gains’ they secretly spend over the 30 years-immediately.
They invented “MBSs” The trick was to collect “the non-existent future value of the asset-the loans without changing the assets value thereby allowing the banks to keep 100% of real money paid to them today. The asset remains the same and is zeroed out over time as it is paid.
Here’s the deal:
Hey, big money people, how would you like to be guaranteed $9 trillion INCOME over the next 30 years ?
Just write us a check for $1 trillion. BTW it’s a AAA Security on our books that can’t go wrong.
They took the money and ran.
On the next offer after some questioing the banks had to give a little-they paid for insurance against loss in order to close the deal. Next time around they had to guarantee against loss (recourse).
Here comes the systemic failure.
The insurance company didn’t have enough money to cover the loses-not
those of the “Ms” of the “MBSs” ;the losses of the future interest.
The banks didn’t have the money to buy back (their guarantee)
When “Banks” and “Insurance Companies” can’t pay and TRUST IS LOSS-
That is “systemic failure”, albeit the mortgages are still a valuable asset baked by the real property whatever real % and the government; they did not fail.
IF was the banks and the banks alone.

Comments by Justaluckyfool ( http://bit.ly/MlQWNs )

( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)
*WHAT IF THE …The Fed Reserve were to become the CENTRAL BANK WORKING FOR THE PEOPLE (CBWFTP) instead of working for the Private For Profit Banks (PFPB) .
Let’s try this game: Substitute the words “Central Bank Working For The People” (CBWFTP) where ever” Private For Profit Banks” (PFPB) appears.
****PFPB have $100 trillion in assets as mortgages on residential and commercial real property (RE) loans. The average compound interest rate is 4% for a term of 30 years. The PFPB would have created that $100 trillion ‘out of thin air’ which would have an attachment that would require $300 trillion to be paid to the PFPB in order for the loan to be paid in full. YES, take away the smoke and mirrors. Now we must replace (reduce to zero ) the initial loan amount by subtracting $100 trillion; leaving a profit,income,taxation from ‘somewhere else’ of $200 trillion. This amount goes as profits to the PFPB. Revenue they may use for their own selfish purposes.
READ IT AGAIN,
BUT THIS TIME REPLACE “PFPB” WITH “CBWFTP”.
Why would you not want prosperity for yourselves and your children?
Why would you not want $200 trillion turned over to Congress, to be used..”to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
Share: “You are always welcome to share, copy, plagiarize, improve, etc..“

 

Comments:
Why then… “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha’‘
Why not ‘due examination ‘of :
Prof. Michael Hudson ; http://www.globalresearch.ca/index.php?context=va&aid=28938 . “…. The Mathematics of Compound Interest A syndicate of less than one hundred American capitalists, if allowed to collect interest on their capital at a low rate and re-invest for 150 years or less, would at the end of that time own the earth and all real and personal property thereon. This is a simple mathematical proposition, capable of exact demonstration, and any one who doubts the truth of this statement may set all doubts at rest by computing compound interest on one and one-half billions of dollars for one hundred and fifty years, at five per cent per annum. …Flürscheim elaborated that “All exertions, all improvements in the methods and tools of labor, the strictest economy, the severest self-denial, are powerless to compete with the rapidity of self-increase possessed by capital placed at compound interest, and they cannot keep up with its demands.” To illustrate the dynamic at work, he composed an allegory (pp. 327ff.). Many ages after man was driven from Paradise and told “to earn his bread by the sweat of his brow, mercy began to prevail. A loving angel was sent down by the Great Master, charged with the task of lightening the burden. The angel’s name was Spirit of Invention. He began his work by teaching man to make useful tools” and tame animals, and in time to mobilize water power, air and wind power, fire and steam power to drive machinery. “It seemed that at last the golden era had come of which men had dreamed for ages past,” but “that envious spirit, that fallen angel, Satan,” was jealous that his own empire would soon be over for ever.
Why not..
“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism would be the best ways and means to help “form a more perfect union….”, Pontifical Council.
Precisely. Soddy/Pontifical Council are/were perfectly conceptually aligned with Social Credit in this regard. However, power and profit require a symmetrically separate and equally powerful countervailing administrative agency that acts “in the betterment of the common good, with equality and justice for all,”BFWR commented on ” Is economics ripe for disruption? . .”
If it were possible to sum up the single greatest flaw to capitalism ,it would be :It allows for the “most powerful force in the universe”… to quote( Einstein ? ),” compounding interest ,” to be used against that society.The lender becomes the owner of all the money based upon the act of compounding at any rate within a long period of time.
As Soddy said, every monetary system must at long last conform, if it is to fulfil its proper role
as the distributive mechanism of society. To allow it to become a source of revenue to private issuers
is to create, first, a secret and illicit arm of the government and, last, a rival power strong enough
ultimately to overthrow all other forms of government.”
He got it wrong ! They are no longer secret and illicit !
Frederick Soddy writings, namely “The Role Of Money”
(Entire book as a free download… http://archive.org/details/roleofmoney032861mbp

 

“Didn’t see that coming.”

justaluckyfool
April 4, 2014 at 2:53 pm | #1
INEQUALITY AND INJUSTICE:

Why do economists, “Not see that coming”?
A. “The greatest inability of the human
race is our inability to understand the exponential function”:

The most important video you will ever see. “The greatest inability of the human
race is our inability to understand the exponential function”:
https://www.youtube.com/watch?v=F-QA2rkpBSY

RE: http://krugman.blogs.nytimes.com/2014/03/14/notes-on-piketty-wonkish/ on March 14, 2014, 7:47 am Notes on Piketty (Wonkish)

Q. “So: Imagine a wealthy family that has managed, somehow or other, to guarantee that a large fraction of its income is used to accumulate more wealth. Can this family thereby acquire a dominant position in society?”
A. Yes,actually total control.
Quote Michael Hudson ,” A syndicate of less than one hundred American capitalists, if allowed to collect interest on their capital at a low rate and re-invest for 150 years or less, would at the end of that time own the earth and all real and personal property thereon. This is a simple mathematical proposition, capable of exact demonstration, and any one who doubts the truth of this statement may set all doubts at rest by computing compound interest on one and one-half billions of dollars for one hundred and fifty years, at five per cent per annum. …Flürscheim elaborated that “All exertions, all improvements in the methods and tools of labor, the strictest economy, the severest self-denial, are powerless to compete with the rapidity of self-increase possessed by capital placed at compound interest, and they cannot keep up with its demands.”
The 1% are using “the most powerful force in the universe” to gain ALL the wealth of the universe, their weapon is compounding.
Comments posted on: http://rwer.wordpress.com/2014/03/01/inequality/

“We need to be careful about simple solutions to complicated problems.”
as well as complex solutions to simple problems.
What really needs to be done, ” ***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha.

Inequality , injustice is like water, a part of life, but may, because of the size of its gaps, become toxic.
The solution:
“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism would be the best ways and means to help “form a more perfect union….”, Pontifical Council.

DO FOR YOURSELVES WHAT YOU ALLOW THE CENTRAL BANK TO DO FOR THE (PFPB) BANKS !
LOAN YOUR MONEY AND CHARGE (interest), A TAX ON IT.
Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)

from David Ruccio This chart, from the work of Emmanuel Saez and Gabriel Zucman [pdf], illustrates the large increase in top 0.1% wealth share since the 1980s (top 0.1% = wealth above $20 million t…
rwer.wordpress.com
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DO FOR YOURSELVES WHAT YOU ALLOW THE CENTRAL BANK TO DO FOR THE BANKS ! LOAN YOUR MONEY AND CHARGE A TAX ON IT.

DO FOR YOURSELVES WHAT YOU ALLOW THE CENTRAL BANK TO DO FOR THE BANKS !
LOAN YOUR MONEY AND CHARGE A TAX ON IT.

Comments by Justaluckyfool ( http://bit.ly/MlQWNs  )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)

‘ ***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha’‘”)

Pontifical Council, “…“(T)he trajectories of the Church’s close relation with the world. These trajectories intersect in the profound value of human dignity and the quest for the common good, which make people responsible and free to act according to their highest aspirations. The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence. What is more, the crisis engages private actors and competent public authorities on the national, regional and international level in serious reflection on both causes and solutions of a political, economic and technical nature. In this perspective,…the crisis “obliges us to re-plan our journey, to set ourselves new rules and to discover new forms of commitment, to build on positive experiences and to reject negative ones. The crisis thus becomes an opportunity for discernment, in which to shape a new vision for the future. In this spirit, with confidence rather than resignation, it is appropriate to address the difficulties of the present time.” The G20 leaders themselves said in the Statement they adopted in Pittsburgh in 2009: “The economic crisis demonstrates the importance of ushering in a new era of sustainable global economic activity grounded in responsibility.”

It is time to be united as Monetary Sovereign Nations that has as a social goal , “to form a more perfect union along with acting for the benefit of all mankind. While sharing the distribution of wealth of  these nations while at the service “… of the good of each and every one will necessarily be super partes (impartial): that is, above any partial vision or particular good, in view of achieving the common good. Its decisions should not be the result of the more developed countries’ excessive power over the weaker countries. Instead, they should be made in the interest of all, not only to the advantage of some groups, whether they are formed by private lobbies or national governments…. and no longer for the development of one group to the detriment of another group.

Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism would be the best ways and means to help “form a more perfect union….”

As stated in http://rwer.wordpress.com/2013/04/04/and-the-ecb/,  (And the ECB?)
The ECB may have described where we went wrong working with our Fed; thereby giving us the opportunity to fix our “flaw”.Perhaps, the ECB has shown that the USA has taken the wrong path to prosperity because the Fed has allowed some one else to issue our liabilities and done so not for the common good.
Quote,” The ECB remains stuck in a totally outdated and rigid view of money, like the supporters of the gold standard, as it refuses to grasp that, in our current context of deflation/disinflation, losses on its capital have no significance, quite the contrary. It can even operate with negative capital, given that it is the sole issuer of its own liabilities, and create as many euros as it sees fit.
The US  Fed has understood this truth for quite some time, given its inclusion in bylaws of a rule allowing it to delay indefinitely, without any need for recapitalization, any loss posted on its investment portfolio by assigning to them to future seigniorage revenue (MG).”THE TIPPING POINT: “… It can even operate with negative capital, given that it is the sole issuer of its own liabilities…”

The Fed must become a Central Bank Working For The People (CBWFTP) instead of working for the Private For Profit Banks (PFPB) and MUST take away from any other entity
the ability to issue sovereign currency which based upon todays rules is ” a CB liability”.
Why would you not want betterment of the common good?
Why not challenge, improve, endorse;
GOOGLE:
” A Central Bank Working For The People (CBWFTP)
instead of for Private For Profit Banks (PFPB).”
If something in a system can cause ‘systemic failure’,wouldn’t you consider that to be such a major problem that because of its awesome capability , that is : Destruction of the entire system that it should be consider perhaps as the cause of , if not all maybe most problems.
We have legislated self destruction by allowing Private For Profit Banks to issue our sovereign currency and also  allowing Private For Profit Banks to tax that issuance. This is their weapon of mass economical and political destruction that allows inequality, injustice and servitude.
We MUST separate our central bank from the private for profit banks.
Excerpt from:

When will the people of Italy ( Read, Greece, Spain, any Sovereignty ) realize  they have a Central Bank that does not work for their people, in fact it works to make profits for the top 1% of the people in the world.
Italy (Read…Greece, Spain, any Sovereignty which is not monetary sovereign), you can take back your right to prosperity. Create the Central Bank Of Italy, (Greece, Spain, any Sovereignty) and your Central Bank with an account showing 2 trillion “NEW LIRA”, that being todays wealth of the Italian peoples goods and services as of this date.  All monetary transactions shall be recorded in “NEW LIRA”. All balances shall be equal in number and converted to “NEW LIRA”. All receipts in an equal denomination of “NEW LIRA” for each Euro. The balance of all debt will be fixed on this date , set with a specific redemption plan.(E.g.,2% for 36 yrs., ).
Who would not accept this nation as not having a wealth of all that is Italian as not being at least 2 trillion,”NEW LIRA”?  As for those who would be that stupid, not to accept that capitalization, please allow them to accept default.
It is not the cost of government but the cost of money itself that has bankrupted the nations.If any country wishes to free itself from the shackles of debt and restore the prosperity it once had, it will need to take back its monetary sovereignty and issue its own money, either directly or through its own nationalized central bank.(This is the solution for any sovereignty).
For any nation to be a Monetary Sovereignty….
.. it must be the sole creator of its sovereign currency.
…it must have the ways and means to control its sovereign currency for quality and quantity.
…it must under modern money systems be fiat since its money is transferable “thru thin air”.
…it must understand that it is the guardian of the value of the currency , if it wishes to be capitalistic; otherwise that nation will be totalitarian. As a guardian (recording and exchanging) it does not own the value of the currency it creates.
…it must use that currency knowing that it must also return it back to the community (the rightful owners).
…all transactions using sovereign currency must be “REAL”, meaning backed by 100% of issued sovereign currency.In order to prevent “systemic failure” it must make available the currency as loans at a fixed rate and duration in amounts deemed necessary to allow the private banking system to be solvent.

We MUST separate our central bank from the private for profit banks.
Excerpt from:

Real Money Economics: The Details and Results.
Real Money Economics proposes to instill hard ethics into the current monetary system and not just prescribe more regulations meant to firm up an internally unstable system. The solution presented only involves 2 fundamental steps outlined below under A. and B..
Trust Banking System
Under this system, banks would be divided into 2 totally separate parts or “windows”, one being the trust depository side and the other the credit side (lending and investments). In effect this could be called “Glass-Steagall on steroids”.
1. Depository or Payment Window
In a Trust Banking System when a normal deposit is made at a bank into the depositor’s account, the funds would continue to belong to the depositor (versus exchanged for an IOU as under the current system) and the bank is simply given instructions by the depositor as to what to do with the money, e.g., when a check is presented for payment, it will be paid. This would all be covered under the standard depository agreement between the bank and the customer. 100% of the depository base will at all times be covered by cash in the vault or deposits at the Fed. The only source of income for a bank from the Depository Window would be fees for services. No deposit creation would exist in this system and thus no new money created by private banks. Further, because all deposits would at all times be fully covered, the needed oversight would be minimized as the system is autonomously stable.
2. Credit or Investment Window
Under the Trust Banking System banks would become true intermediaries (as most think that banks are today) and offer loans and other investment products from those with cash wishing to have it invested. This would be done through the Credit Window of banks but none of the funds under the Depository Window would be available for this purpose. Instead, savers and investors would subscribe to a series of offered mutual funds in say, car loans, or mortgages, or commercial loans of various kinds, and so on. These could be open or close-ended funds as desired with maturities, risk levels, and return levels published by the bank in advance. Thus credit would now be driven by savings rather than the arbitrary increase (or decrease) of high powered money and deposit creation. Savers would again be rewarded for savings and interest rates would be controlled by the market rather than largely by Fed edict and actions as now.”

Based upon an opinion by “Justaluckyfool” of the concepts of Noble Laureate  Frederick Soddy, “The Role Of Money” (1926,1933)
*********************


Read :Frederick Soddy writings, namely “The Role Of Money”
(Entire book as a free download… http://archive.org/details/roleofmoney032861mbp

“PREFACE
This book attempts to clear up the mystery of
money in its social aspect. With the monetary
system of the whole world in chaos, this mystery
has never been so carefully fostered as it is to-day.
And this is all the more curious inasmuch as
there is not the slightest reason for this mystery.
This book will show what money now is, what it
does, and what it should do. From this will
emerge the recognition of what has always been
the true role of money. The standpoint from
which most books on modern money are written
has been reversed. In this book the subject is not
treated from the point of view of the bankers
as those are called who create by far the greater
proportion of money but from that of the
PUBLIC, who at present have to give up valuable
goods and services to the bankers in return for
the money that they have so cleverly created
and create. This, surely, is what the public
really wants to know about money.
It was recognized in Athens and Sparta ten
centuries before the birth of Christ that one
of the most vital prerogatives of the State was
the sole right to issue money. How curious that
the unique quality of this prerogative is only now
being re-discovered. The” money-power
” which has been able to overshadow ostensibly responsible
government, is not the power of the merely ultrarich,
but is nothing more nor less than a new
technique designed to create and destroy money
by adding and withdrawing figures in bank ledgers,
without the slightest concern for the interests of
the community or the real role that money ought
to perform therein.

TAXATION is the best place to start.
As President Obama *even* knows but somehow does not understand that he has the answer, yet.
Stated on ” 60 minutes” (12/11/11)” President Obama said,”You can’t raise revenues by lowering taxes unless you get the money from somewhere else.” ?
YES,YES…reduce FICA to zero. Reduce federal personal income taxes to $100,000 of income exempt with any addition @ a flat rate of 10%.
That simple!
Dare you ask , “Where is the “SOMEWHERE ELSE”?
*****There shall be but one and only one issuer of the sovereign currency.
Any issuance after the recording of the wealth of the sovereignty shall be by way of loans.The amount on deposit belongs to the social group and is in trust for them and exchangeable on demand for the Federal Reserve is the caretaker. All new issuance must be loans and shall bear a taxation, commonly known as interest. INTEREST paid to the central bank
shall be the taxation which is turned over to Congress for appropriations..
Surely: You are aware that the private for profit banks have raise over $100 trillion as interest profit for themselves since inception of being legally allowed to do just that: issue new currency and tax it via interest!
$100 trillion that the PFPB have taken out of our pockets, spent for their our interests. We need to just mandate the Federal Reserve to do for us what they have previously done for the private for profit banks.
Just do for the people what we have allowed the Private For Profit Banks to do—Issue currency as loans with a tax attached.

*WHAT IF THE …The Fed Reserve were to become the CENTRAL BANK WORKING FOR THE PEOPLE (CBWFTP) instead of working for the Private For Profit Banks (PFPB) .

Let’s try this game: Substitute the words “Central Bank Working For The People” (CBWFTP) where ever” Private For Profit Banks” (PFPB) appears.

****PFPB  have $100 trillion in assets as mortgages on residential and commercial real property (RE) loans. The average compound interest rate is 4% for a term of 36 years. The PFPB  would have created that $100 trillion ‘out of thin air’  which would have an attachment that would require $400 trillion to be paid to the PFPB in order for the loan to be paid in full. YES, take away the smoke and mirrors. Now we must replace (reduce to zero ) the initial loan amount by subtracting $100 trillion; leaving a profit,income,taxation from ‘somewhere else’ of $300 trillion. This amount goes as profits to the PFPB. Revenue they may use for their own selfish purposes.

READ IT AGAIN,
BUT THIS TIME REPLACE “PFPB” WITH “CBWFTP”.
Why would you not want prosperity for yourselves and your children?
Why would you not want $300 trillion turned over to Congress, to be used..“to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

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