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Bernanke’s TIPPING POINT ?

December 16, 2011

 

Bernanke’s Legacy

By Jeff Harding, on December 15th, 2011
“I don’t know what more you can reasonably ask the guy to do,” said Henry Paulson, the former Republican Treasury Secretary and a close ally during the financial crisis. “With interest rates where they are right now, at historic lows, and with all the steps he’s taken, you can only rely on your central bank to do so much. A lot has to be done elsewhere.”
www.justaluckyfool.wordpress.com Dear Mr Henry Paulson,you do know and I quote,”

QE3 to create 4 million jobs

Sent: Thu, Jul 7, 2011 8:48 pm
Subject: QE3 to create 4 million jobs
 
QE3 to create 4 million jobs ; end economic crisis.

 
JIM LEHRER: …” a lot of people who believe… the key to this from the very beginning was not the financial system… it was the housing problem.
JIM LEHRER: … until that is fixed, can the rest be fixed?
HENRY PAULSON:… when you look at how long it’s taken for these excesses to build up and for these home prices to appreciate to suddenly say, “Maybe government could push some button and make it all go away and solve the problem.”…
HENRY PAULSON:… Well, I have always said that at the heart of the problem is the housing correction. And until the biggest part of the price decline in houses is behind us, we will have stresses in the financial markets and in the economy.” (Excerps from FOX interview.2009.)
The government should step up to help  the taxpayers  and EVERY HOMEOWNER..Fix the housing market ; jobs will be created; deficits will be reduced.The fix is the banks have to get the loans to real value,but their corperate profit agenda will not let them.Over 3 or 4 million loans  need fixing.Done fast  millions of jobs will be available.AMERICA will be the winner,taxpayers ;rewarded.
CALL IT  QE3.
Money lent to the auto industry paid off;DO IT FOR HOUSING NOW.
 
PLEASE NOTE (N.B.)…….BERNANKE WILL WITH QE3 TRY THIS WITH A PURCHASE OF 545 BILLION OF THE “TOXIC”
Mortgage Backed Securitys (MBS) when QE3 is put in place.
but the problem as Alan Greenspan said to Congressional committee,”it is a flawed system”.
If it were possible to sum up the single greatest flaw to the American form of its democratic capitalism ,it  would  be :It allows for the “most powerful force in the universe”… to quote Einstein,” compound interest” to be used against that democracy.
This “most powerful force”  is being used only for the enrichment of a few (1%)  and the servitude of all others (99%).
The lender becomes the owner of all  the money based upon the act of compounding at any rate within a long period of time.The present system has to change .

 Private banks are lenders to the taxpayers who become borrowers. They are allowed to charge interest to taxpayers for the use of their own money.
Private banks are allowed to “create money” by fractionation of money on hand and use that
newly created money to gain more money. A cycle that commands total money control or it must bust. The real kicker is that the borrower by today’s system guarantees the lender they will not lose their money by covering any of their losses. The taxpayers are guarantors of their own servitude !
 

 “…. 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 !
‘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?  ,I will now be the servant of a new master,one that will pursue
happiness for all mankind.”.

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