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“QE 4 WAR”

November 12, 2012

QE 4 War.

War against poverty, inequality, and anything that is in the path of prosperity and happiness for ALL mankind.

QE has proven that a monetary sovereignty can issue limitless amounts of currency. (How about $16 trillion in ” one shot ignored around the world).When it does, it should have self-imposed restrictions so as to safe guard its currency from hyperinflation and moral hazard.

An American homeland war against poverty, inequality, for the  general welfare.
READ:     New Economic Perspectives  “Jobs Now: Make Obama’s Priority Reality and Expose the Lie of Lazy Laborers ”
READ: WEB OF DEBT BLOG
” It’s the Interest, Stupid! Why Bankers Rule the World ”

Read: How ,the USA could become the world leader in showing have to fight poverty, inequality ,
and in our own land first show how to “form a more perfect government, of the people, by the people, for the people”.
 
Compounding is the most powerful force in the universe.
If all money comes into existence with interest attached that is to be paid to “private for profit banks” the interest will over time demand servitude.
Google : “William Black, banks”.
Google : “Michael Hudson, “Compound Interest”
Google:  “justaluckyfool, WordPress”
and most important ; “The Role of Money” by Frederick Soddy,
written in 1926,and 1933.
*****************THE SOLUTION IS SIMPLE***********************

EQUAL AND FAIR TAXATION: Use Interest instead of Income.
No new legislation is required. Ben Bernanke has proven it is legal and possible. We need only to:
(1). Mandate “100% reserve for all private financial institutions.
(2). Have the Federal Reserve be the only source of new currency issuance.
(3). Since all wealth (goods and services) of the nation is already owned by the people of that nation and since “currency” is merely
a physical means of distributing and transferring that wealth; that currency must come back to its rightful owner. Until that currency (colorful paper or metal, or whatever is redeemed it is only a loan,
something that is taken from an owner that must be returned.
Please explain, Why do you prefer servitude ,when you govern a country that seeks “the pursuit of happiness”?Why you do not wish prosperity for yourselves and your children? 
 
What if :
The Federal Reseve Bank (almost all agree can make unliminted purchases of assets)
were to purchase ALL residential and commercial real estate loans outstanding and rather than
continue the stupid practice of being guarantor to actually become the lender of these and future loans.
Correct QE3 (Infinity) stop bailing out the foxes in the hen house, stop foreclosures (85% of which the homeowners wish to stay and pay), start curing the crisis in housing, create millions of jobs.
Immediately , modify all loans at 2% for 36 years.What would that do for the “people” , put an end to the crisis and fix what went wrong ?
Force the banks to comply by doing what the Fed failed to do in 2001-demand 100% reserve.
How great would it be if the banks needed $100 trillion to be at 100% reserve- 100% liqudity ?
At 2% for 36 years that would produce $5.5 trillion per annum in “RAISED REVENUE INSTEAD OF TAXES”.
“The Wealth of a Nation is in How it Redistributes That Wealth” by justaluckyfool.
Excerpts contain quotes by Steve Keen, Michael Hudson, and others but most important
theory of Frederick Soddy “The Role of Money. 1926,1933″.
What if:
As Soddy thought, “A Monetary Sovereignty must be the sole issuer of its currency”
The currency is a representation of all the goods and services of that Sovereignty and that currency
be it paper, metal or whatever form of transmission is used for the system of distribution and or redistribution.
 
A reply received: 
****“Immediately , modify all loans at 2% for 36 years.What would that do for the “people”? justaluckyfool.
Your plan does nothing for non-debtors except perhaps indirectly thus it is not politically feasible…”
***First, justaluckyfool  must thank you for your challenge because “only after due examination” should a concept be accepted.
If all the loans on land and improved land value were to made by the Monetary Sovereignty instead of simply guaranteed the loans would be backed by 100% currency. Let’s say for example for a sum of $36 trillion (makes the math easy ) at 2% for 36 years would produce a “revenue, or income in place of an income tax of $2 trillion per year.
How good is that for all the people?
For the individual homeowners, especially the 85% that want to stay in their homes, it makes their homes affordable.A home with a mortgage for $120,000 would have a monthly payment of $556 per month. With the intended consequence that they would be paying INTEREST instead of income taxes!
Plus the added benefit that they will gain value as the price of the home may increase because the assumable mortgage with its fixed rate will allow the homeowner to capture that gain, while at the same time the gowerning people will receive double, yes, double the amount of the asset.
This only occurs because of a change of direction of the money flow-instead of going to the bankers it will go to the people.
Or what if, this small move which would produce $2 trillion per year revenue (since all income to the Fed Reserve must go to the US Treasury) , how about then we drop FICA.
What would that do , (Ask Dr. Wray as in “Job Guarantees”)
*Lower real estate (commercial buildings) cost= lower production cost.
*Lower tax with holdings = raise in pay.
*Lower cost of wages (No corp FICA co-pay)= increase in profit.
EQUALS :  A SUM TOTAL OF MASSIVE JOBS INCREASE WITH PRICE STABILITY INTACT AND INFLATION CONTROL.
Please,
challenge,
clarify,
or improve.
I am just a fool in search of profound answers.
Please, anyone with a voice that is heard, please “after due examination”
promote that which you find to be of a benefit to all mankind.
If I , a fool, who has but only for such a very short time found from “due examination”
articles from Steve Keen, Michael Hudson, L Randell Wray, Warren Mosler and taken from them
what I ,just a lucky fool, found to be true added to that some of what Frederick Soddy wrote
“The Role Of Money””Virtual Wealth”.
Please,please by the grace of an “Invisible Hand” join forces to do what Lincoln did for
those who knew they were slaves; set the Americanpeople  free from possible servitude and turn them on to a path of prosperity.
Let the benefits of compound interest serve the people, all the people!
 
*****Justaluckyfool Rules:
A Monetary Sovereignty must be the only source of issuance of its currency.
A Monetary Sovereignty must use that currency as a system of distribution of its wealth.
A Monetary Sovereignty must “by the good faith and credit of its people”
guarantees that no matter what physical form its currency is
it is redeemable in “goods and services” by the Sovereign Nation”
A Monetary Sovereignty must have in place ways and means to protect the quality and quantity of its currency.
As Frederick Soddy wrote, “Money now is the NOTHING you get for SOMETHING before you can get ANYTHING”.
 
“There in lies the rub”,Why blame the private for-profit banks for doing their job-Maximize profits for the benefit of their owners. The solution is in the separation of the issuance of the currency from private for-profit banks and financial institution to that of issuance by one and only one source,that is by the sovereighn nation alone.
The solution as stated by Keynes, Minsky and Soddy along with many others:
“separate private for-profit financial institution from government. ” It is the providence of government “to promote the general welfare” not the private for profit banks.
Quote Soddy, ”
WHAT IT SHOULD BE,
CONTRASTED WITH WHAT IT HAS BECOME
By
FREDERICK SODDY
M.A. (Oxon) ; LL.D. (Glasgow) ; F.R.S. ; Nobel Laureate
in Chemistry, 1921 ; Author of ” Science and Life ” ; ” Wealth,
Virtual Wealth , and Debt ” ; ” Money versus Man ” ; etc.
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 ultra-
rich, 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.
The more profound students of money and,
more recently, a very few historians have realized
the enormous significance of this money power
or technique, and its key position in shaping the
course of world events through the ages. … It is con-
cerned 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. ”
And for fun, read:
“The Wealth of a Nation Is In How That Nation Redistributes Its Wealth”
by justaluckyfool.
In hope that it receives a profound –
CHALLENGE, IMPROVEMENT, CLARIFICATION, CORRECTION, THEN USE IT AS YOUR GUIDE!
 
  1. justaluckyfool | October 15, 2012 at 4:08 pm | Reply
  2. ***Everyone is being told, ” no plan that could simultaneously (1) cut taxes, (2) end the budget deficit, and (3) increase military spending.”!!!!
  3. Please challenge, edit, improve, or use as a guide, What they should be told,
    “How to cut taxes, end the budget deficit, and increase military spending.” by Justaluckyfool.
    A plan that justaluckyfool has put together as an opinion resulting from reading articles by William Black, Michael Hudson, and Frederick Soddy (“The Role of Money” 1926,1933).
    How ? As 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.”
  4. Or as Romney said, “Lower by 25% income taxes… and not increase deficit spending.”
  5. They both got it right !
    So why not do just that? As Einstein said, “Keep It Simple”.
    Cut federal income taxes to zero. Pay off the budget deficit at $1 trillion per year and have $4.5 trillion to spend each year for the next 36 years.
    All this can be done without any new legislation.
    The Federal Reserve Bank already has the ways and means. Almost all economist agree that the Feds can purchase an unlimited amount of assets it needs , and at no increase in deficit spending.
    The Federal Reserve Bank can mandate a change in reserve requirements for all private for-profit banks, that is from the present 10% to 100%.
    To prevent a collaspe of the financial system it would make $100 trillion available as Loans to the industry with a rate of 2% for 36 years.
    As law ,”All profits from the Federal Reserve Bank must go to the US Treasury”.
    That means a REVENUE STREAM OF $5.5 TRILLION OVER THE NEXT 36 YEARS.
  6. May I add (11-12-12)
  7. What if….The USA in its role as “the worlds reserve currency” were to make available loans from a pool of $1 trillion at 2% for 36yrs for “the production of domestic renewable energy”.
    “The impossibility of the three goals depends on the definition of deficit. If it is the difference between government spending and revenue then the plan is impossible.” Daniel.
    ******************” no plan that could simultaneously (1) cut taxes, (2) end the budget deficit, and (3) increase military spending.”, As per article.
    WRONG, WRONG !!!! Any government can do all three. The solution was stated not only by Obama but also by Romney.
    ************”You can’t raise revenues by lowering taxes unless you get the money from somewhere else.”
  • *************Lower taxes by 25%….No increse in deficit spending…balance the budget.”
  • Translated: Create a revenue stream using a way other than “taxes”.
    Translated: Create interest payments on the issuance of our own currency.
    Take away from the private for-profit banks that stream of profits and use it as funding for the people,instead of the benefits for 1% make those benefits for 100% of the people.
    Please consider, challenge and improve, then endorse.
    Here is an example of where we are going wrong and how we can fix it.
    The Feds thru QE3 (QE Infinity) will be buying MBS at the rate of $40 billion per month.
    Translated: They are using our money to allow the private for-profit banks to make a profit.
    WHY NOT purchase the pure asset, the actual mortgage. Then modify all notes and set as an assumable mortgage at 2% for 36 years. If $18 trillion is needed, that would produce $1 trillion dollars a year of revenue.
    INCOME RAISED BY “SOMEWHERE ELSE” INSTEAD OF TAXES.
    Anyone,
  • please explain why you would not wish properity for yourselves and your children?
    PLEASE EXPLAIN:
     

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