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” 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
Like · ·

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,…”

Share: “You are always welcome to share, copy, plagiarize, improve, etc..“

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

Read: 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. Among the follies of man, one little imp, called Interest, managed to attract his attention. “‘What is the matter with you, Interest?’ he asked the saucy imp. ‘You don’t seem to be so dejected as your comrades are?’” “‘Why should I be dejected, master?’ replied the spirit, ‘Am I not one of your favorite soldiers? Haven’t I always been victorious under your august guidance?’” But Satan answered sadly, “Alas, You are no match for the Spirit of Invention.” The Interest imp, however, volunteered to demonstrate his prowess in a dual, helped by his son, Compound Interest. At this point, Flürscheim introduced an image that Napier had suggested at the outset of his second book on logarithms in 1617, the Robdologia, likening the principle of geometric increase to that of a chess-board on which each square doubled the number assigned to the preceding one. An old Persian proverb told of a Shah who wished to reward the inventor of chess, a subject, and asked what he would like. To the Shah’s surprise, the man asked “as his only reward that the Shah would give him a single grain of corn, which was to be put on the first square of the chess-board, and to be doubled on each successive square; which, to the surprise of the king, produced an amount larger than the treasures of his whole kingdom could buy. It is this kind of chess-game which capital is continually playing with labor.” The remarkable growth of compound interest soon swallowed “products, capital, the earth and even the workers.” This was in essence the ploy that Flürscheim’s Compound Interest demon used. “Look at this chess-board,” he told the angel against whom Satan had pitted him. “It seems just like any other chess-board, with sixty-four squares,” but it “had the peculiar quality of extending the dimensions of the squares, so as always to be large enough” to hold whatever was placed on them. Instead of asking for grains of wheat to be placed on them, the Interest Imp asked for soldiers. “Now, listen well to what I propose,” he said to the angel, pointing to the latter’s huge army. I enter the first square with my son, and you match one of your warriors against us. We enter the second square doubled in number; you send two more warriors – and so on every succeeding square. . . . When we arrive at the last square, and you have a single soldier left after occupying the same, we shall declare ourselves vanquished, and Satan with all his troops will leave this world for ever. If I win, you and your army are to be at the commands of my master. Are you agreed? The angel agreed, expecting his horde of soldiers to easily exceed the number that the Interest Imp and his son, Compound Interest, seemed likely to accrue. In the beginning the angel laughed, for, though twenty squares were passed, no noticeable diminution of his forces was perceptible. Demon Interest said nothing, but attended to business, quietly doubling his army on every succeeding square. At the thirtieth square the angel ceased to laugh, and soon saw he was lost. ‘I despised you, little fellow,’ he signed despairingly, ‘and I am punished for my vanity. I see there is no use fighting against you. Demon Interest is more powerful than the Spirit of Invention. I am your slave. Command your servant!’” (THIS IS THE TIPPING POINT ! (Where we went wrong)
‘I am the only servant of my great master,’ dryly replied the demon. “Here I see him coming. He will give you his orders.’ And Satan gave his orders. He commanded that the angel was to continue in his work with all his troops, which were to be increased with all possible exertion, so that humanity – which did not know the nature of the antagonist it had to fight against – would always keep in fresh hope of final success when the new troops were forthcoming. But as fast as they appeared, Demon Interest was to send forth a larger army to capture the new forces, to enslave them, and – instead of their benefiting man – make them increase the slave-chains which weigh him down.
WHAT IF DEMON INTEREST WERE TO ANSWER? (How we can fix it).” I will now be the servant of a new master,one that will pursue happiness for all mankind.”

“Why would you not want prosperity for yourself and your children?
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.’ ‘”
Comments by Justaluckyfool ( http://bit.ly/MlQWNs ; )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)

http://ellenbrown.com/2014/02/04/prosperity-for-main-street-not-wall-street/
Prosperity For Main Street, Not Wall Street
Posted on February 4, 2014 by ErnieM
Another great video from Rudy Avizius and Mike Krauss –

–The great European mysteries, solved

justaluckyfool:

Roger, “You are a Monetarily Sovereign nation, with two major assets: The unlimited power to create your own sovereign currency, and the unlimited power to determine your economic fate.

Obviously, you don’t want such a burden. You’d rather be a slave nation. So what do you do? You voluntarily surrender those most valuable assets, and you put your nations fate into the hands of some unelected, foreign bureaucrats called the EU.
Surprise! That hasn’t worked out so well:…”

May I paraphrase:
America ,you are a Monetary Sovereign nation…..
(read above)…SO what do you do ? You give to the Private For Profit Banks the sovereign rights to CREATE SOVEREIGN CURRENCY and the POWER TO TAX that currency giving the PFPBanks unlimited power to determine your fate!
How is that working for you.
The great USA mystery solved. We have lied as printed on our currency:
“In God We Trust” The truth is : “We Now Trust The Private For Profit Banks”.

Originally posted on #Monetary Sovereignty - Mitchell:

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, .
●Austerity is the government’s method for widening the gap between rich and poor,
which ultimately leads to .
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is .
●Everything in economics devolves to .
======================================================================================================================================================================================

So they labored mightily, to build a complex machine, which they named “the EU,” and now they say it’s not working right, and they want to fix it, but they can’t agree on why they built it or what the machine is supposed to do.

monetary sovereignty
———-THE EURO———-


Membership withdrawal threat after Tory MPs sign letter calling for…

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From Austerity to Abundance: Why I Am Running for California Treasurer

justaluckyfool:

“Justaluckyfool”
“(T)he race is not to the swift,nor… wise, nor…to men of understanding, nor …to men of skill, but time and chance happeneth to them all.”
ECCLESIASTES 9:11
To California’s 37 million: Is it the time and opportunity for you to chose
your path to “prosperity and the pursuit of happiness”?
SHARE-TWEET this millions of times.
Why would you not want prosperity for your selves and your children?
SHOW AMERICA YOU CAN LEAD.
NOW is the time ! HERE is the chance !
From Austerity to Abundance: Why I Am Running for California Treasurer
Posted on January 15, 2014 by Ellen Brown
http://ellenbrown.com/2014/01/15/from-austerity-to-abundance-why-i-am-running-for-california-treasurer/

Originally posted on WEB OF DEBT BLOG:

Governor Jerry Brown and his staff are exchanging high-fives over balancing California’s budget, but the people on whose backs it was balanced are not rejoicing. The state’s high-wire act has been called “the ultimate in austerity budgets.”

Welfare payments, health care for the poor, and benefits for the elderly and disabled have been slashed. State workers have been downsized. School districts in need of cash have been reduced to borrowing through “capital appreciation bonds” bearing 300% interest. In one notorious case, the Santa Ana school district actually borrowed at 1,000% interest. And the governor acknowledges that California still faces a “wall of debt” amounting to $28 billion. Some analysts put it much higher than that.

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“In God We Trust” Why , How We Went Wrong.

“In God We Trust” Why, How We Went Wrong.

Some recent comments.

Google or Bing: Justaluckyfool comments:Recent Comments made.
Justaluckyfool,  “Why would you tax using a basis that is both unequal and unjust,  when there exist “a means of taxation already in existence that is totally fair, equal and would produce all the revenue distribution helpful …” “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,…”
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 “first $100,000
at zero percent tax , any amount above at 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
Just do for the people what we have allowed the Private For Profit Banks to do—Issue currency as loans with a tax attached.
How the Feds DO unto US what they have done for the PFPB!
READ MORE:
Frederick Soddy writings, namely “The Role Of Money”
(Entire book as a free download… http://archive.org/details/roleofmoney032861mbp
 “Justaluckyfool”, http://bit.ly/MlQWNs
Misdirection at perfection.
Whether the Federal Reserve Bank is independent or has its member banks as shareholders
has no real meaning…if you do not address “What the Federal Reserve Bank does with its awesome power as the banking institution that is mandated to control the quality and quantity of the sovereign currency.
Where we went wrong is not in establishing a Federal Reserve Bank; it is in : We have destroyed “In God We Trust” and turned that into “In Private For Profit Banks (PFPB) We Trust”.
It was the fear of giving the awesome power to one institution that allowed for legislation to give PFPB the power TO ISSUE and TAX our sovereign currency.
Whom would you now rather trust?
The PFPB have shown their greed, do you believe it may be time for a change?
*****
More comments:

All money is wealth; not all wealth is money. When wealth transforms into money it takes on the form of the acceptable currency at that time. The currency shows “credare”, the rights of ownership to that wealth.
Thank you for your reply it shows that a correction is needed.
If the “flaw” were to be corrected, there would only need to be one taxation.
The “flaw” being ‘allowing PFPBanks to issue and tax our sovereign currency!
The correction would make the central bank the sole issuer as well as the sole source of taxation.
A perfect circle-real money being lent that is the “credare” of the people being returned to the people by taxation. The central bank must by its mandate ‘to control the quantity and quality of the money’ return via Congressional appropriations one half of the payments received or the loans in order for the process to avoid “systemic failure”.
It also must place the other half into new loans to ensure the continuation of the scheme.
Private For Profit Banks must be separated from government.
Excerpts from : http://realmoneyecon.org/lev2/answers.html

Real Money Economics is an economic theory which proposes to change the current monetary and fractional reserve banking system as follows:

change the bank depository and payment system to a “Trust Banking System”;
change the bank credit system to a mutual fund system;
to keep price stability, change the new money creation system from a deposit creation system …

The world was created with enough wealth for all mankind to maintain a good  standard of living. We need only to form better governance.

Justaluckyfool asks, “What if…#OWS used that $14.7 million and purchased a Private For Profit Bank (PFPB)..
Use the #OWS bank to purchase $80 million worth of Residential loans, restructure them as notes , loans at 2% for 36 years; making them affordable for the homeowners
as well as payable. Also on the same day as these new notes are recorded as assets on the #OWS’s balance sheet, it would be able to make an additional $72 million in new loans.
More then $1.4 trillion new loans can be created.
BUT, what would #OWS bank do with the $1.5 trillion in profit it would receive, (Interest income-profit that it can make from $14.7 million over 36 years).
Maybe , perhaps just an idea, buy and burn all student loan debt?
****EVEN BETTER: Ask Michael Hudson and Wm K. Black, Is it possible to own all the student loans (over $1 trillion worth) if #OWS were to be one of the privileged Private For Profit Banks ?
Restructure those loans at 1% for 72 years with payments to be made from 5% of annual income after graduation. Then ask, What should they (#OWS Bank) do with the over $1 trillion
profit while still retaining the $14.7 million ?
Ask Dr. M Yunus, How a charity can become eternal … (? recover its cost?)
Why would you not investigate the validity of this comment?
Why would you not want prosperity for yourselves and your children?
Read : Read more:
Where we went wrong and how to fix it.
FREE, yes no money required. Download this book :
“The Role of Money” by Frederick Soddy (written in 1926, 1931)

http://archive.org/details/roleofmoney032861mbp

ALSO: http://www.positivemoney.org/
Then read this FOOLS interpretation again.

http://bit.ly/MlQWNs

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