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Voo-Doo Economics: “Good Bank, Bad Bank”
Mar 13, 2009
DC – Gather round, listen up, and pour yourselves another hot cup of Rocket
Java, girl friends. Barackie, Timmy, and Benny have another Central Banking
Fairytale for you. It’s called: “Good Bank, Bad Bank.”
is absolutely incredible how -- once you embark upon false economic premises
-- one can push the absurdities of one’s economic sophisms to their
reductio ad absurda, aka:
absolute stupidity. Take, for example,
the stupid economic premise that a government or central bank – I’m thinking
Federal Reserve here, girl friends – can (1) remove the conceptual and
physical backing of a hard commodity (e.g. gold) for paper currency, (2)
redefine that same paper currency from being a
receipt for said hard commodity (e.g. gold) to a
non-receipt for anything of value (e.g.
hot air comes to mind), and (3) convince the citizens of a nation that
issuing and spending trillions and trillions of these paper, plastic, and
virtual non-receipts for nothing, zip, zero, nada, can enrich a nation.
precursor stupid economic premise to the above, of course, is that the
bankers claim it is OK for a government or private central bank – I’m
thinking Federal Reserve again, girl friends – to conjure up and inflict
upon citizens the popular banking fraud known as,
“Fractional Reserve Banking.” Hoo-hoo,
fractional reserve banking, the Ponzi Scheme of the century, aka:
counterfeiting the people’s paper money. Before we get to the ultimate –
“Good Bank, Bad Bank” -- let’s see how this banking scam works:
Citizens deposit their gold and silver coins into a bank or U.S. Treasury
gives the depositor a gold or silver certificate, a
receipt for the deposit.
The gold or
silver certificate states the amount of gold or silver deposited (i.e. $1,
$5, $20, $100, $1,000, etc. defined as X-troy oz at .995 fine) and that
the gold or silver is redeemable from the bank to any bearer of the
certificate on demand.
and silver deposited, as coins or bars, are
real commodity money.
and silver certificates represent receipts
for the real money. Let me repeat that: the certificates are legal
contracts of obligation; they are receipts
for real commodity money, the gold, but the certificates are not real
commodity money themselves. Just like the pink slip to your ’57 Chevy is
not the car itself; it is a receipt for the car. It shows ownership,
expressing private property rights based upon individual freedom and
objective law. Gold and silver certificates are not real money; they are
receipts for real money. (I’m
hammering this into your noggins because this is a very important concept
to understand: a paper receipt is not the same as the commodity for which
it is a receipt.)
If the gold
and silver certificates in our example are used by the people as a medium
of economic exchange – and they will because paper is lighter and more
convenient to exchange than heavy gold or silver -- then the certificates
circulate and act as paper money.
But remember, paper money is nothing but a receipt for the real commodity
money, e.g. the gold. Remove the gold and you have a receipt for nothing.
along comes Jones, er-er-screeching tires. Here is where we come to the
scene of the crime, where the bankers get too clever for their own britches
and trick the crap out of everybody:
the bankers storing your gold or silver decide to
print up and issue more paper certificates than
the amount of gold or silver stored in their bank, they have
committed fraud. This type of fraud is called
“Fractional Reserve Banking,” and is
actually a form of counterfeiting. The Federal Reserve has been
practicing “Fractional Reserve Banking,”
or counterfeiting, for many years. The rationale by the bankers is that
they can issue more paper certificates than the amount of gold or silver
stored – a 10% fractional reserve system would mean 9 times as much paper
receipts are issued than each 1 unit of stored gold – because, the bankers
claim, not everybody will run to the bank to redeem their gold
certificates all at once. Therefore, reason the crafty bankers, they can
loan out lots more paper money (and credit) and earn lots more interest.
What’s wrong with this picture? The point is not whether the bankers can
get away with it (for awhile) because not everybody will run to the bank
to cash in their gold and silver certificates all at once but rather the
point is that the bankers are COUNTERFEITING
their storage receipts in order to make more profits.
Counterfeiting the people’s paper money is worse than fraud. It is
robbery since it cleverly steals, through inflation, the value of the
depositors’ savings and wealth (i.e. the value of their gold and silver).
The bankers’ ridiculous argument for
“Fractional Reserve Banking” is a lot like saying one can
counterfeit the pink slip to one’s car or the title to one’s house by a
million-fold, sell the extra pink slips or extra home titles into the
market, and that’s OK because not everybody holding a fake pink slip is
going to dash over to claim and drive the ’57 Chevy all at once. But it’s
not OK. It’s still counterfeiting, it’s a big lie, it’s fraud, it’s
inflation, it’s debasement of our paper money, and the bankers have simply
made up – and citizens have bought off on it – a stupid but crafty
economic excuse for transferring everybody’s wealth into the hands of the
bankers through the Ponzi Scheme of
“Fractional Reserve Banking.”
Voo-Doo Economics gets worse, girl friends.
have the U.S. Government and private Federal Reserve central bankers robbed
you through “Fractional Reserve Banking,”
they have removed ALL pretense of storing your gold or silver, or issuing
paper receipts for the storage of your gold and silver, by erasing the legal
words – “Payable to the Bearer on Demand,” the obligation of contractual
backing or redeemability – of your paper receipts for the gold or silver.
In short, the U.S. Government and private
Federal Reserve have stolen your stored wealth, your gold and silver, and
issued counterfeit monetary tokens to you instead by making your gold and
silver certificates non-redeemable. Now, the bankers get to keep your real
commodity money, i.e. the gold.
addition, the U.S. Government and private Federal Reserve central bankers
have patted you on the back for accepting your position as victim of their
Great Counterfeit Monetary Ponzi Scheme and all the major universities
present this economic stupidity as the latest and greatest in sound monetary
practices. In fact, the Government, Fed Reserve, and 90% of the world’s
economists now claim you must spend, spend, spend your counterfeit monetary
tokens as fast as possible in order to enrich yourself, create jobs, and
stimulate the domestic and international markets. What a cruel joke. They
rob you and then force you to keep on robbing yourself and others.
think about what has transpired in the new Voo-Doo Economics from a
conceptual point of view:
Economics 101A: The bankers stole your gold, gave you paper, and told you
that you will become wealthy by spending trillions of pieces of little green
paper printed up out of thin air. And you bought off on it. Wow. Are we
dolts, or what?
everybody in the nation accepts the above stupidity as economic fact, it is
not surprising that this same concept of counterfeiting –
“Fractional Reserve Banking” – has
spilled over into the stock market, the insurance market, the housing
market, the automobile market, the credit card market, the school loan
market, and all other markets. And thus, in the same manner that the U.S.
Dollar was counterfeited by “Fractional Reserve
Banking,” all markets that are counterfeiting their particular
commercial paper – i.e. issuing non-backed, non-receipts for nothing of real
value – have created a huge indebtedness of all types of toxic derivatives
from subprime mortgages to credit default swaps. What do all of these
different types of paper instruments have in common? No value. By
switching from gold and other hard commodities to paper, the central bankers
have stolen the value from your wealth in every sector of the economy. How
here is the crème de la crème of today’s Voo-Doo Economic stupidity: the
absolutely ridiculous concept that the government and private Federal
Reserve bankers can create a “Good Bank, Bad Bank” – you know, like the good
cop, bad cop scenario in the movies – and somehow siphon off whatever the
counterfeiting bankers consider “bad” counterfeited paper (counterfeited in
the sense that the investment bankers or Fannie & Freddie, for example,
printed the worthless toxic derivatives up out of nowhere with no real
collateral or no real capital or capital goods and no real market value),
shove them onto the books of the “Bad Bank,” and leave what the bankers
consider “good” counterfeited paper in one of their existing “Good Banks.”
Guess what? The “Bad Bank” belongs to you, the taxpayer.
debase the people’s real commodity money, i.e. gold, bad-mouth gold as
“barbaric,” then you replace it with non-backed paper using
“Fractional Reserve Banking,” then you
hyper-inflate the crap out of the Pulp Fiction U.S. Dollar (our current
counterfeited monetary tokens), then you spill this idiocy over into the
stock market and housing market, and then when the inevitable Depression
occurs, you create a “Good Bank, Bad Bank” stupidity to try and hide all the
precursor robbery that’s been going on by the Government and the central
bankers for the last fifty years. Yahoo, girl friends!
“Good Bank, Bad Bank” work?
no. Yes for the bankers in charge and no for you. The goal of the central
bankers is not to clean up the economy. The goal is to destroy the rest of
the economy and then take total control.
about the current financial mess that’s been created. How in hell can
anybody separate out the so-called “good” commercial paper from the “bad”
commercial paper when the basis for our measurement, our medium of economic
exchange, the Pulp Fiction U.S. Dollar, is a hyper-inflated, counterfeit
monetary token itself? How can anybody separate out the individual values
of the computer-generated, sliced and diced toxic derivatives or trace them
to the value of any hard commodities – houses, cars, or anything else --
that may or may not exist as real collateral? Better yet, what is their
current market value and who gets to determine that value?
again, the real financial problem today is not lack of enough counterfeit
monetary tokens. The real problem is lack of
value in the U.S. Dollar or the toxic derivatives created by the
bankers. Remember back at the beginning of our discussion of “Fractional
Reserve Banking?” Value was stolen from you by the crafty bankers. Are you
is it impossible to create a “Good Bank, Bad Bank” solution, the entire
concept is ridiculous because it doesn’t even attempt to solve the basic,
root problem, which is: the lack of a sound monetary system. Nor does it
attempt to address the criminal action of a “Fractional Reserve” robbery by
the Government and central bankers. The “Good Bank, Bad Bank” idea simply
attempts to legitimize the previous robbery and extend the crime into a
bigger crime by pretending to hide it or by denying it exists. It’s like
kids playing Monopoly with fake money and making up the rules as they go
along. Note that the winners are: ta-da, the banks, as they create more
fake Funny Money and charge interest by loaning it out. And the losers
are: dum-da-dum-dum, you the taxpayers uponst whom are dumped the
liabilities and indebtedness of the “Bad Bank.” “Lucky you,” say the
bankers. “We just saved you from a systemic risk.”
you, thank you, Team Obama, U.S. Treasury, and Federal Reserve central
bankers for saving us from YOUR systemic risk.
can’t cheat Mother Nature or the Universal Laws of Cause and Effect.
As soon as
the U.S. and the entire world pretended that paper per se could replace
gold, that counterfeiting extra receipts for stored gold is OK – i.e.
“Fractional Reserve Banking,” and that
the path to wealth is by continually hyper-inflating and spending
counterfeit monetary tokens, the only obvious outcome had to be today’s
financial catastrophe: our current Depression. It is absolutely absurd to
think that we can spend our way out of a Depression with more Pulp Fiction
Dollars, especially since it was the Government and the Federal Reserve
doing exactly that that got us into this mess in the first place. If you
are dying from arsenic poisoning, you don’t gulp down more and more
arsenic. (Amazingly, Fed Chief Ben Bernanke is busy claiming that the
reason we are dying from arsenic poisoning is because we haven’t gobbled
down enough arsenic. In the New Speak of Keynesian socialist economics,
“inflation” is defined as “good.” Go figure.)
a “Good Bank, Bad Bank” scheme by the Government and private central bankers
is just another bad economic idea piled on top of precursor bad economic
ideas, all of which can be summarized as stupid Voo-Doo Socialist Economics.
Barack Obama's role in all this Keynesian socialist crap? Obama is
just "a useful idiot," chosen because he's as malleable as Nutty-Putty on a
stick. Like FDR and George Bush, Obama understands zip about what the
central bankers are really up to.
philosophical level, our current financial mess and international Depression
is not about “Fractional Reserve Banking”
or “Good Bank, Bad Banks.” The real battle that’s going on is the war
between individual rights vs. state collectivism. Our politicians and
central bankers are well on their way to establishing a socialist
dictatorship in America, all with the sanction of their victims: you.
you do to stop it? While Team Obama and his state collectivists are
screaming for more self-sacrificing of the individual upon the altar of the
Omnipotent State, you should be demanding – not asking, DEMANDING -- for a
return to The Gold Standard, which represents the ultimate in private
property rights. It’s your only hope for freedom. Do it now, before it’s
too late. – FM Duck
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