Imperial Party forum

thomas davison

Allow me to begin your education about what will give us a functioning economy

09 Oct 2012

by paulthepaperbear

The financial system�s only purpose is to enable growth in the productive economy. Only when we have a functioning economy can we be put society on a path to prosperity for all.

�Educate and inform the whole mass of the people� They are the only sure reliance for the preservation of our liberty.� � Thomas Jefferson
And let me tell you, everyone needs an education on economics because it must be the first thing and last thing we should be concerned with. The politicians who steer the economy claim they know what they are doing but how can someone believe this is true without knowing anything about economics ?

And there are lot of people out there who are whistleblowing and trying to educate the whole mass of the people about how an economy grows and why it crashes. These people make ever so brief appearances on CNBC and Bloomberg in between other people who have lost credibility since 2007/8. It was like a light bulb went off above my head watching these people whose credibility has only been growing since 2007/8.

Should we all educate ourselves with Peter Schiff�s book �How an economy grows and why it crashes� ? I think we should. http://www.amazon.com/How-Economy-Grows-Why-Crashes/dp/047052670X

And, of course, Texas Congressman Dr. Ron Paul knows a thing or two about economics being a student of the Austrian school of economics and he is the guy who is waking up millions of people all across America and millions of people all across the rest of the world all of whom are being converted to the Austrian school of economics. And Dr. Ron Paul, the grass roots candidate, will be going to the Republican National Convention at Tampa, Florida in August where their Presidential Nominee will be chosen along with the establishment candidate, Mitt Romney. But seriously, what has former Massachusetts Governor Mitt Romney got to teach America and the world ? And what has President Barack Obama got to teach America and the world ? And what has David Cameron, Nick Clegg and Ed Milliband got to teach the world ?

�When the pupil is ready the teacher will appear.� � Texas Congressman Dr Ron Paul is the teacher this Buddhist proverb is referring to.

Is Dr Ron Paul a white knight riding in to rescue us from our current flawed economic system run since 1936 by students of the Keynesian school of economics when it has it�s next crisis ? Only with the help of the millions of people who have learned how an economy grows and why it crashes.

At the end of March 2012 the B.R.I.C.S. group of nations, which are some of the creditor nations of the world, decided they would form agreements and organisations outside of the American dollar and separate from the International Monetary Fund and separate from the World Bank and separate from the Bank of International Settlement so when this flawed system fails will have an alternative already up and running.

Who finds it strange that Christine Lagarde the head of the International Monetary Fund is going from meeting to meeting holding out her handbag, Gucci or Versace, and asking nations to �put some money in my bag� ? This is the same International Monetary Fund that has put nation after nation into unsustainable debt to fund the building of proverbial infrastructure white elephants that do nothing to reduce the cost of doing business in that nation�s economy ? Because I said unsustainable debt brings me to ask another question: is there not the international equivalent of fraudulent conveyance ?

The International Monetary Fund, the World Bank and the Bank of International Settlement have been around since before I was born and I can say that I will be glad to see them reformed or more likely dissolved so that we can plug into the system that the B.R.I.C.S. group of nations is forming.

So now please allow me to educate you about the nature of a recent financial Credit Default Swap contract.

Many critics have drawn the analogy of a Credit Default Swap as that of a building and content insurance policy being available not just to the owner-occupier or landlord but to numerous third parties, perhaps some of the guys neighbours. When such a property gets burned to the ground, accidentally of course, then all of the policy holders will expect to be paid full value for the property, the owner-occupier or landlord of course, but also the numerous third parties.

Some might compare a Credit Default Swap with a bet from a bookmaker but I would argue that it is the value of a CDS which operates as the bookmaker�s odds because it will go down the less likely the underlying debt is to be defaulted upon and go up as a default upon the underlying debt becomes more likely. If my argument is correct then the potential exists for all of the payouts on the Credit Default Swaps for an underlying debt to be many multiples of the value of the underlying debt.

Now, either the concept of the Credit Default Swap is insane or I am insane or both.

The situation with CDS has changed following the recent write down of Greek bonds, JP Morgan and others either pay out for the CDS they sold but had never set aside sufficient capital for or the CDS marketplace loses all credibility.

The payout from AIG to various parties holding CDS but not holders of the asset being �insured� was �185 billion, money that could have been used to grow the productive economy but without it has the economy suffered ?

I hope I have now educated you about the nature of the Credit Default Swap now that they are finished as a viable contract. No doubt historians in decades to come will mention what folly the CDS was in the same breath as the South Sea bubble and the Tulip bubble.

I would much rather we have a financial system whose only purpose is to enable growth in the productive economy. Only when we have a functioning economy can we be put society on a path to prosperity for all.

JP Morgan is not off the hook yet. It would appear that they had a role in the destruction of the Knickerbocker Trust which precipitated the 1907 financial crash, and it was JP Morgan and perhaps others who furnished speculators with margin loans in the 1920s only to call in those loans in October 1929 resulting in a 90% decline in the value of the stock market. Now, is it too much ask for that participants in the financial system don�t periodically wreck the economy ?

Now, please allow me to educate you about the nature of Naked Short Selling.

Many critics equate naked short selling with counterfeiting. Normal short selling is when you first borrow the asset from those owners willing to lend it then sell it in the marketplace in the hope that the price goes down and you can buy it back at a cheaper price, give it back and pocket the difference. But naked short selling is when you sell into the marketplace something that you did not first borrow and there is no limit on the amount someone can sell of what they had not first borrowed.

I hope I have now educated you about the nature of Naked Short Selling.

I would much rather we have a financial system whose only purpose is to enable growth in the productive economy. Only when we have a functioning economy can we be put society on a path to prosperity for all.

I seem to recall that assurances were made that the �too big to fail� casino banks would be downsized from their size going into the crisis of 2008, but I understand that some if not all have in fact become bigger not smaller.

A 12-Year-Old Girl Crushes The Canadian (and American) Dream

http://www.zerohedge.com/news/12-year-old-girl-crushes-canadian-and-american-dream

�Public Banking Institute, Banking in the Public Interest.�

�Presently, the banks only have 4 billion dollars on reserve but they have loaned out 1.5 trillion dollars.�

�Never doubt that a small group of people can change the world, indeed it is the only thing that ever has.�

Now a particular consequence of zero interest rate policy and quantitative easing is that savers are being forced to enter into riskier investments in the hunt for a greater return on their savings but when everything stinks to high heaven the saver is stuck.

The American Dodd-Frank bill that was passed back in 2010 to supposedly overhaul the financial sector is 2,300 pages long and I understand that some provisions still have not been implemented yet.
Who needs 2,300 pages of financial regulation ? I know what the ultimate financial regulation is: when an entity makes a loss in excess of it�s available capital then that entity is forced into bankruptcy. Job done.

The unnecessary deaths of 500,000 Iraqi children at the hands of medicinal sanctions is something I would hope that a conscientious human being would think even just a little about. Politics is too important to leave politicians to their own devices.

The unnecessary deaths of 1.000,000 innocent Iraqi civilians at the hands of a military force on the claim a guy had weapons of mass destruction is something I would hope that a conscientious human being would think even just a little about. Politics is too important to leave politicians to their own devices.

The unnecessary deaths of an estimated 100,000 innocent Libyan civilians at the hands of NATO on claims that have not been verified and some that have shown to be false is something I would hope that a conscientious human being would think even just a little about. Politics is too important to leave politicians to their own devices.

I want to speak for these victims otherwise who will ?

And get educated, Your future may depend upon it.

When you look at the no hopers who are running our country you begin to realise just how big a PONZI scheme you have been sucked into, the way things are going it will not be long before you are paying �10 for a loaf of bread, what do you do then?