Monetary reform or enjoy... plutocracy

Update (precizări pentru bancherii infractori):

... the amount of money must be increased at a rate that roughly corresponds to the increase in the total output of goods and services in the economy.  If it is less, you get deflation (fewer dollars in total for a given amount of good or service), if it is more, you get inflation (more dollars for a given amount of good or service), but this will do to explain how it is that credit is granted - and regulated - in the banking system.
But in the real world it's not quite so simple, you see, because in the real world banks don't just make loans - they also buy and sell loans that both they and other people have made, either "whole" or bundled up into complicated securities of various sorts (the infamous "subprime" mortgage-backed securities, or MBSs.)  Each of these types of investment that a bank might hold has a reserve requirement because there is always some risk (however small) of default, and the amount of reserves that must be held depend on the quality of the asset.  So for a Treasury Bond a bank might be required to hold no money in reserve, since there is assumed to be zero risk of default.  But against a mortgage security that has "ho-hum" credit quality, the bank may be required to hold quite a bit of reserves, because if something goes wrong the losses could be significant.
And here is where the problem begins.
The "shadow banking system", including ratings agencies, investment banks and hedge funds, were engaged for years in the intentional misrepresentation of credit quality.  In conjunction with those who were bought and paid for to provide these grossly-inflated "ratings" (the famous "we'll rate a deal securitized by cows" quote in sworn testimony before Congress), the banks, issuers and traders of this debt gamed the ratings (and reserve) system so they would not have to hold back as much in reserves as would have been required on the actual underlying credit quality.  That is, they said that there was less risk in these loans than really existed.
Why is this important?
Because by under-reserving on purpose these entities obtained a capacity to loan (and for you to borrow) that did not exist, and as a result, there was more money available to lend - lots more and at a much cheaper interest rate - than should have been the case.
In addition this deception radically accelerated the velocity of money (credit) in circulation, which in combination with the fraudulently-created credit created a classic asset inflation.
Since money and credit are fungible - that is, they both spend exactly the same (your credit card and $100 in 20 dollar bills spend the same way at the store; they both buy exactly the same amount of goods or services) this had precisely the same effect in the economy - and on you as a consumer - as the banker literally walking over to his color copier and running off $100 bills by the truckload.
Now if you see "money" flying around the economy and it looks easy to access, you'll be inclined to go after it with far less concern than if there is little money (or it is expensive), right?
...
The so-called "credit" ("money" to you, as they both spend the same) available was a chimera and a fraud.  You believed that it was plentiful and would continue to be so, because the ratings of these securities, improperly inflated, allowed the bankers to hold artificially low amounts of reserve against their credit book.
In order to properly leverage against risk you must be required to hold commensurately more reserves against higher risk instruments otherwise the effect of your operation is to allow you to create credit without a proper capital backing, and when the bet goes wrong, you (and potentially the entire banking system!) blow up.
...
When there is lots of money (credit) in a monetary system, the equilibrium (or "fair") price for an asset is much higher than it is when money (credit) in a monetary system is in short supply.  Further, when you deceive people as to credit quality and thus inflate the amount of credit (money) available you increase the velocity (turnover) of that credit (money); since banks and other merchants of money derive a lot of their revenue from fees, they get a disproportionate benefit from this deception.  You (and every other consumer/buyer of those assets and items), on the other hand, get screwed.
But like all deceptions this one cannot go on forever.  Eventually these bad loans begin to default, just like the farmer who pulls the handle and nothing comes out.  You are now finding that it is difficult to get credit to buy a house, a car, or for business purposes. The reason for this is simple - everyone from homeowners to the banks themselves have too much debt (credit) outstanding compared to the maximum amount that would be allowed under reasonable standards of safety as a result of the previous distortion.
...
the entire credit bubble was an outrageous and intentionally engineered counterfeiting operation that should have long ago landed all of the participants a nice long prison sentence.
Worse, instead of forcing all those who committed these acts into the open and thereby causing the default of the bad debt (resulting in both consumers and lenders who did imprudent things going bankrupt) we continue to try to "hide the problem" by transferring the risk (leverage) to The Fed!  As of the latest data release this evening The Fed is now running roughly a 50:1 leverage ratio, and its leverage is increasing at an astronomical rate (it was 40:1 just a couple of weeks ago!) as Bernanke furiously attempts to hide both the fact that all this counterfeiting of credit took place and prevent the impact of same from being fully recognized on the economy.
Should Bernanke's gambit fail the consequence could be the failure of the United States monetary system and government.
All this to prevent having to admit the truth, force the guilty into bankruptcy and, where applicable, punish them under the law.
Until "we the people" understand how money and credit work (they don't teach this in "government schools" - gee, I wonder why not?) we will get upset over the Treasury-backed bailout, but we will also continue to ask the wrong questions and only jail a small fraction of those who deserve to spend the rest of their days in orange jumpsuits picking up trash and being afraid of what goes "bump" in the shower. sursa

... lăcomia cui este... "la liber", vala?

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Domnul Șerbănescu a publicat astăzi un articol în care surprinde rezonabil (beton) aberația plutocrației financiar-bancare:

De unde atunci fabuloasele deficite bugetare care, acumulate, au adus datoriile publice în punctul în care, pentru prima dată în timp de pace, se vorbeşte despre o criză a datoriilor suverane, adică a datoriilor statelor? Desigur că, în aceste datorii, se află eforturile investiţionale pentru infrastructura rutieră şi feroviară, notele de plată ale unor programe sociale generoase, dar nu întotdeauna bine cumpănite şi, fără îndoială, îndeosebi în unele state, excese derivând din indisciplina financiară crasă sau din populisme ale unor perioade electorale. Dar nu din acestea vine grosul, ci din altă parte!

Clar şi scurt pe doi, derivă dintr-un fenomen care poate fi denumit alienarea sau pierderea caracterului capitalist al unei componente a capitalului, în urma subordonării întregului sistem acestei componente, cea financiar-bancară, care, tocmai prin abandonarea caracterului capitalist, îşi bate joc pur şi simplu de întregul sistem şi de rânduielile capitaliste. O afacere din industrie sau din comerţ, dacă ajunge în faliment, este scoasă din joc. Nu este cazul în aria financiar-bancară. Mai rău, un investitor financiar nu numai că are pretenţia să investească fără riscuri, dar nu admite nici o pierdere. Un mecanism complex este pus în scenă pentru a-i asigura câştigul scontat. De fapt, statele sunt puse să achite oalele sparte, prin preluarea garanţiilor, compensărilor şi, în ultimă instanţă, a pierderilor. Investitorii financiari sunt arbitri sau judecători ai statelor care îi stipendiază! Ceva grotesc, strigător la cer, penibil, jenant şi, în ultimă analiză, revoltător! Sute de milioane - oameni şi agenţi economici - muncesc, dar sunt nevoiţi să se închine la nişte fetişuri care deniază cel mult să-i batjocorească! Bănci şi instituţii financiare fac ravagii şi statele - adică salariaţi, pensionari, contribuabili - curăţă grajdurile! sursa

... dar stai că dumnealui e comunist și stai să vezi că nu e vorba de neo-keynesianism, iar pe de altă parte mises preferă... tabla galbenă... și până să se pună toți economiștii de acord și până să clasificăm corect fiecare etapă a raptului și până să dăm numele corect actualului sistem economic impus de paraziții plutocrați... DEBT SLAVERY, șmenarii  și/sau bancarzii cumpără politruci și media... pe mărunțiș.

Cum ar răspunde... "dumnezeii" de printre noi, BANCARZII, la soluțiile propuse de Bill Still?

1. Government borrowing must be forbidden.

2. Banks must stop landing money they do not have.

Dar vai, statul trebuie desființat, iar noi trebuie să investim în ghiuluri și colibe cu ardei pentru... pensie.

MY GOD!!!!!!!!!!!!!

Și bucuroșii din inerție pentru ghetuțele teroriștilor îmbrăcați în polițiști, recepționate în gură de tinerii de prin... Europa, vor avea mici șocuri când vor constata că hoția bancarzilor și plutocrația șmenarilor vor "dăinui" până-ntr-o zi... de dimineață.