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bankers whine for 30 seconds, kiss Godfather Paulson’s ass, then sign off on
(Oct 25, 2008)
“What is this, the Mafia?”
– Anonymous banker at Godfather Paulson’s Treasury meeting
Hey, wouldn’t it be easier for the Treasury and Federal Reserve to simply
pass out Jr. Federal Printing Presses… or let the people run down to Fed-Ex
Kinko’s Copy Shop and print up as much paper money as they want to spend in
their local economy? I mean, why are we bothering with the banks since it’s
that the Keynesian Government wants, not
from Bank A to People B?
This time next year, we will either be on some type of international gold
standard, forced by the free market, or a loaf of bread will cost $23
DC – Last week, Treasury Secretary Hank Paulson called the CEOs of the nine
largest banks in America into a conference room at the Treasury Department
for a 3 pm meeting and told them to either sign off on the nationalization
of their banks, that is, sign a piece of paper under duress (which is
illegal), or else... While Paulson and his central banking crooks thought
the bankers would argue and put up a big fight, then take a break at 4:30 pm
and finally come around sometime after 6 pm, the wussy CEOs whined for about
30 whole seconds, quickly signed off, and were outta there by 4 pm sharp.
Do these pussy CEOs not understand that we are living under a U.S.
Constitution with a Bill of Rights? Did they know they were signing under
duress? Did they understand the future economic and social
implications of what they just capitulated to? Or, did they come to an
understanding of how much more money they stood to rake in by cooperating
with Treasury Secretary Hank Paulson and his Fascist Business Model for
America? Either way, you just witnessed a Coup d’Etat of the United States
and virtually nobody said squat about the legality of it.
are witnessing in the current global market meltdown is the death throes of
Keynesian socialist economics, not free market capitalism. Free market
capitalism died a long time ago; it was dumped as soon as all the world
governments dropped the gold standard and implemented Keynesian socialist
economics. The erroneous ideas of economist Lord John Maynard Keynes that
ALL governments have been operating on for the last 50 years, have now been
shown to be empty ideas, blowing in the wind – along with your disappearing
what the main thesis of Keynesian Economics is: central bankers, such as
the Federal Reserve, can lead a nation to perpetual economic wealth by
injecting the economy with a continual increase in paper money. They call
it “targeted inflation.” In fact, Lord John Maynard Keynes, who received a
Nobel Prize in Economics for this balderdash, stated that a nation’s
monetary managers could bury paper money all over the country, hold an
Easter Egg Hunt for the booty, and its discoverers would create a business
boom as they uncovered and spent their newly-found paper money. That’s the
premise under which U.S. Treasury Sec Hank Paulson and Fed Reserve Chief Ben
Bernanke (and his non-free market predecessor Alan Greenspan) have been
operating and that’s why they are so concerned, so adamant, about injecting
trillions and trillions of paper money into the frozen financial market AND
SPENDING IT LIKE MAD. Spending through deficit
financing is the central thesis of the Keynesian Economists. They
actually believe their Keynesian Economic Fairy Tale and, in fact, obtained
recent legislation from Congress to shove another $700 Billion down your
throats whether you like it or not and – more importantly – whether it is
sound economic theory or not, which it isn’t.
and Bernanke and the Congressional Clowns in Washington are operating under
false premises. “Targeted inflation” is an illusion of temporary
prosperity. Keynes only looked at the initial results of monetary
inflation, a temporary business “boom” and then drew his erroneous
conclusions. It’s the same as if counterfeiters pumped tons of fake paper
money into a local economy. At first, everybody thinks they’re rich, so
they spend like drunken sailors on shore leave. Then, when businesses start
catching on to the increase in the money supply, they jack up their prices
to account for the excess money. This is called price inflation, a natural
result of monetary inflation.
drug addict, the inflationary money managers have to inject bigger and
bigger doses of their inflated paper money to get the same “boom” results.
That’s why it’s temporary. It can’t last, for obvious reasons. For
example, you can’t counterfeit the pink slip to your ’57 Chevy, sell a
million copies of your counterfeited pink slips in your neighborhood, and
expect everybody to become rich by owning pink slips to non-existent ’57
Chevys. But that’s exactly what the monetary managers are doing with the
non-backed Dollar. There is no collateral for
the amount of paper money outstanding – which, at last count, is about $600
trillion in toxic derivatives.
looms just around the corner after every monetary “boom,” as soon as the
people catch on to the inflated currency. How does a “boom” get started?
The Keynesians inflate the money supply. Businesses react by increasing
prices. Government increases the money supply again. Businesses anticipate
and counter by increasing prices again – especially if the government is a
dummy (which it is) and announces its “targeted inflation rate” (which it
does). Government continues increasing the money supply… and holy moley
it’s off to the races until no amount of new money creates a “boom.”
Finally, nobody trusts the non-backed, non-defined value of the
hyper-inflated paper money and, thus, nobody will borrow it, lend it, or
trade with it. Why? Because its value – let me emphasize that,
its current and future value –
constantly changes, cannot easily be determined, and thus no longer serves
as a true medium of economic exchange.
It’s not a
shortage of money that is causing the current financial crisis; it’s a
gold-backed money that is the
problem. As soon as we went off the gold standard in 1971, we lost
a defined value, a defined measure, of
our U.S. Dollar. Similarly, as
soon as the Keynesian-schooled idiots on Wall Street removed the connection
between the value of a house as collateral for derivatives of subprime
mortgages, we lost
a defined value, a defined measure, for all the
toxic derivatives on Wall
Street. Our commercial paper is not defined because its basic measuring
stick, the U.S. Dollar, is also not defined, i.e., our paper money became a
value-less piece of Pulp Fiction as soon as the words,
“This is to certify that there is X-amount of gold
or silver on deposit at the U.S. Treasury redeemable to the bearer on
erased from our U.S. Dollar.
In the same way, the word “house” was erased as collateral from the
subsequent derivatives for subprime mortgages. In the same manner that the
U.S. Dollar is not traceable to a specified backing of gold, homes are not
traceable to specific derivatives. Nobody knows the value of derivatives
because nobody knows which home, or fraction of a home, “backs” that
derivative. Nobody knows the value of a U.S. Dollar because nobody knows
which gold, or fraction of gold, in the U.S. Treasury “backs” that Dollar.
is no longer a promissory note because it promises nothing. The U.S. Dollar
is not “capital” because it is not backed by
redeemable “capital goods” owned by the issuer of the Notes,
namely, the central bank or Treasury. You, the people, own America’s GDP,
not the banks. Banks and governments cannot
issue paper receipts or promissory notes for collateral that they don’t own.
I cannot issue promissory notes for my neighbor’s car or house. It is sheer
nonsense to claim that the U.S. Dollar is backed by America’s GDP. It is
not. The monetary concept that Greenspan, Bernanke, and Paulson do not
understand is that paper money must have a defined, redeemable value. The
Dollar is currently defined as Congressional hot air or Treasury horse shit,
your choice, and, at the current rate of hyper-inflation by the Feds, that’s
exactly what your savings account will soon be worth: a big fat zero.
where we are today: the inevitable financial “bust” of Keynesian socialist
economics. First the Dollar was destroyed, then the housing market, next
the car market will collapse, until finally we are living in a total state
of economic collapse: a Recession. A Recession turns into a Depression
when the Government refuses to go back to a sound monetary standard, i.e.,
gold, continues hyper-inflating its fake currency and imposes tons of absurd
regulatory controls on all social and economic activity until everything
essentially comes to a standstill.
can establish non-defined, irredeemable, empty, paper promises of nothing as
its medium of economic exchange – as Paulson and Bernanke and all their
Keynesian buddies have done (including former Fed Chief Alan Greenspan, see
page 36 in his latest book, The Age of
Turbulence, in which he claims economies can be mathematically
modeled, thus managed). Unfortunately, Greenspan and his Keynesian
successors do not understand the difference between gold and Funny Money,
the subjective theory of value, how prices can only evolve in a free market
rather than a “managed” market, or the underlying moral philosophy of
individual rights and freedoms as they relate to economic freedoms.
the fallacies of Keynesian socialist Economics have now destroyed all facets
of our economy, including its culture, its social freedoms, its
institutions, and its objectivity of law. Keynesian socialist Economics, at
its basic premise, is a violation of basic monetary contracts and,
therefore, it is not surprising that its final results will be a further
erosion of individual rights and freedoms, and eventually the total
destruction of a nation’s objective legal system.
Keynesianism is worse
than just bad economics. It is immoral and it’s patently unconstitutional in
the United States. Ultimately, Congress is guilty of abrogating its
monetary authority and handing it over to a private group of central
bankers, the Federal Reserve, which is now continuing to destroy what’s left
of the U.S. financial and social system of justice. This is the true
meaning of an economic Depression: the total loss of individual freedom and
the loss of a rational culture. The result is usually trade wars which then
escalate into military wars.
economy has literally become saturated with trillions and quadrillions of
units of excess paper money (Dollars, Euros, Yuan, etc.) and nobody wants to
borrow any more of the worthless paper money or go further into debt.
Nobody knows what the value of their money is or the value of all the tricky
derivatives created on Wall Street. They are now rushing to exchange their
Dollars for tangible commodities: coffee, canned goods, real estate, gold,
silver, and anything (except paper money) that they can get their hands on.
This rush out of paper money and into hard commodities has already started
in the undeveloped nations; it will soon spread to North America and
this will not curtail the continual Keynesian actions of the government or
central bankers who have been schooled in the belief that more and more
paper money – Pulp Fiction which they erroneously confuse with real
“capital,” “capital goods,” “liquidity,” and “value” -- are needed to be
injected into the economy in the stupid belief that
spending undefined, valueless,
non-backed paper money per se is the panacea for what ails the global
What the world is dying for is a sound gold monetary system and the
Keynesian socialists continue to flood the markets with more Pulp Fiction.
matter what absurd monetary tricks the Keynesian central bankers and
national legislatures dream up in their zeal to force everybody into their
misguided deficit “spending” madness, it will all fail because
the Keynesian Bozos are still operating under the
illusion that spending per se creates wealth. Nothing could be
further from the truth and the only result will be a much bigger crash than
if they allowed a quick return to a 100% gold standard and removed
unnecessary interventions into what should be a free market.
was not a free market that caused the current financial meltdown. It was a
dumping of the gold standard, hyper-inflation of non-backed paper money, and
continual intervention into the market by Congress and central bankers that
caused our current problems. Wall Street bankers pulled the triggers
and shot their guns but they could have never done it without the Federal
Reserve providing them with tons of monetary ammunition. This was not
a free market; this was socialist central banking at its best. The
worst is yet to come.
summary, toxic derivatives with non-defined values are a natural consequence
of a non-defined U.S. Dollar, a Dollar that is not backed by, nor redeemable
in, gold or some other hard commodity. That is the true source of our
current U.S. and global financial meltdown: i.e., once again,
It’s not a shortage of money that is causing the
current financial crisis; it’s a shortage of
that is the problem. None of the current economic problems we are
experiencing today could have happened on a 100% gold monetary standard.
footnote, if you want to know how the current global crisis is going to play
out, just read Ayn Rand’s novel, Atlas Shrugged, minus the ending of a John
Galt showing up to save humanity. The current Recession, at its basic
premise, is a crisis of intellectual bankruptcy, a crisis of not
understanding even the basic basics of what money is, and why. – FM Duck
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