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alstry!!!!! STRIKE THE ROOT!!!!!!!!!!!!!!!!!!!!!!!!

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April 23, 2009 – Comments (14)

For over a year you've warned us about the problem of imploding debt.

WHAT HAPPENS WHEN THERE IS TOO MUCH DEBT AND NOT ENOUGH INCOME TO COVER THE OBLIGATION?  TO THROW FUEL TO THE FIRE, INCOMES ARE DECLINING (AT ALL LEVELS-GOVERNMENT, CORPORATE, AND INDIVIDUAL) AND ASSET VALUES ARE CRASHING AT THE SAME TIME!!!!!!!!!!!!!!!!!!!!!!!!! - alstry, March 30, 2008

It's all true. There is too much debt!!!!!!  On that much, we've always agreed. But what is the solution???????

More Regulation??????

That is always the State's solution, but is that what we really need??? The 2008 SEC Guidelines: Rules and Regulations is 4,116 pages long!!!!!!!  Order it here from Amazon for a mere $203.  Guess who writes these regulations? The same people that are jobbing the system every day!!!  (The downfall of the regulation-loving-Left has always been their belief that regulations will be enacted in the same way that they themselves would write them. Unfortunately, in real life, the power brokers just rig the system even more in their own favor.)

Higher Taxes????????

You and I both know that working Americans are already over-taxed.

This family, which earns twice the income of the average family, with not so out of this world leverage, and average health insurance spends 91% of its income on taxes, interest, and insurance. - alstry, April 1, 2009

Is It Just Greed Run Wild?????

If it is, I'd like to know exactly what time in history humans haven't acted greedily. I'd like to see some charts and cute graphs that measure greed and define exactly how much is too much.  It's the method of the charlatan to point to greed after the fact, but altogether useless.  Humans are greedy. Wow, what an insight. Thanks Paul Krugman. What would I do without you?

Does the tail wag the dog? Who cares??????

It's all the rage right now in economic debates.  What comes first?  Money creation from the central planning machine or credit money from its tentacles at the various fractional reserve banks?  Is the money multiplier theory of neoclassical economists going to be proven wrong? Does it really f**kin matter???????????  To predict short run inflation/deflation scenarios, maybe.  In the long run, however, I don't care if the dog is wagging the tail or vice versa.  Either way, the American worker is about to get it doggy style.

NO NO NO!!!! alstry!!!! STRIKE THE ROOT!!!!!!

What has made the explosion of credit money possible???????  What would these lenders do if they didn't have a backstop???????  What would American sheeple do if they didn't have FDIC??????  What would happen if the cost of money was set by savers rather than central planners???????   What bank would leverage itself 250:1 if it didn't have friends in high places?????  What investment brokerage would bet its own existence in every overnight trading session if it didn't pack the money creation machine with its own buddies and pals????????  What investor would ever separate a derivate from its underlying security unless it knew that it could be bailed out at taxpayer expense????????

Alstry, you know as well as I do that it's not about greed or regulation or taxation or neoclassical economics vs. monetarists!!!!!! 

You are the most popular blogger in CAPS history. You have 10,000+ rec's and counting.  You have the power and ability to make an impact.

STRIKE THE ROOT!

David in Qatar

14 Comments – Post Your Own

#1) On April 23, 2009 at 1:27 PM, soycapital (< 20) wrote:

On sale for 14.28!!!

ORDER IN FOLKS>>>>>

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#2) On April 23, 2009 at 1:34 PM, devoish (96.49) wrote:

i'll just grab the low hanging fruit on this one. 

What bank would leverage itself 250:1 if it didn't have friends in high places

Any bank whose management was getting paid today for tomorrows promised profits. Mozilo does not give one little crap that his company is bankrupt. He got his. And when you are done bashing Gov't into a small helpless ball and the banks are let loose to raise rates and charge whatever they wish, Mozilo will return, with the cash to own you forever.

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#3) On April 23, 2009 at 1:52 PM, whereaminow (< 20) wrote:

devoish,

I can't implore you enough to give this free pdf a read, particularly chapters 8 & 9.  First the theories of free and central banking are analyzed, and then policy suggestions are given that make the scenario you presented impossible.

David in Qatar

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#4) On April 23, 2009 at 2:09 PM, alstry (35.99) wrote:

David,

Even if you kill what appears to be most of the root....there is the concern that green shoots can sprout up in different areas and maybe different forms from the same seed.

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#5) On April 23, 2009 at 2:21 PM, whereaminow (< 20) wrote:

alstry, the answer is FREEDOM!!!!!!!!!!!!!

David in Qatar

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#6) On April 23, 2009 at 2:37 PM, cbwang888 (25.40) wrote:

Ans: The good old INFLATION

Net worth = Asset value - Debts

Growing debts can be offseted by growing asset value (by accounting rules, government intervention, printing more money ...).

Liquidation (selling asset to pay down debts) phase has already passed. People who are forced to liqudate their assets at lower level are the losers of the game.

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#7) On April 23, 2009 at 2:45 PM, alstry (35.99) wrote:

David,

What are your thoughts on digital gold vs. traditional physical gold.......

basically encoding some card with a unique digital chip and limiting the amounts to back a world currency?

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#8) On April 23, 2009 at 2:58 PM, whereaminow (< 20) wrote:

alstry,

I foresee the same problems with this idea that the U.S. government had in pegging the price of gold at $35.  The political pressure to inflate the currency will be too great. 

Check out this. E-Gold is offering their customers a service to pay for all of their online purchases with a 100% gold backed  currency.  I know the U.S. government had shut them down, but apparently they've fulfilled all of the SEC requirements (all 4,116 pages worth) and are back up and running.

David in Qatar 

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#9) On April 23, 2009 at 3:05 PM, XMFSinchiruna (26.96) wrote:

Abolish the Federal Reserve

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#10) On April 23, 2009 at 3:13 PM, whereaminow (< 20) wrote:

That was a great post Sinchi and got a huge rec from me!

David in Qatar

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#11) On April 23, 2009 at 4:23 PM, MikeMark (29.45) wrote:

David, may your children's children prosper.

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#12) On April 23, 2009 at 5:14 PM, whereaminow (< 20) wrote:

Thanks MikeMark! Best wishes to YOU!!!!!!!!

(Those extra exclamation points are really addictive, but I better stop before I get an IP lawsuit slapped on me)

David in Qatar

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#13) On April 23, 2009 at 10:54 PM, ralphmachio (27.69) wrote:

Devoish, You don't like Monsanto, but you like big government? Monsanto is the epitome of what goes wrong when the government gets too big. The corporate-government revolving door is almost nowhere so omnipresent. I'm sorry if I have been rude, but my opinion is that without it's proponent element, a very bad thing would have no steam. That very bad thing, from my repeated EXPERIENCE, is the government, and that proponent is perfectly sober-minded intellectuals who believe absolute non-sense, and allow the evil system to perpetuate. These people are so sure of what they 'know', there is no way to improve our world without shaking the foundations of people with your mindset. I did it with my family, they thought i was crazy, they thought i was rude, but now, they think I'm right. It just took a shot to the wallet to figure out that they were getting screwed. I can only imagine what it will take to show the perma-believers.

David , I agree with you, where ever you are.

 

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#14) On April 24, 2009 at 10:24 AM, whereaminow (< 20) wrote:

ralphmachio,

All things being equal, if you build a reputation for being a critical thinker that always presents well thought out arguments, that will make your arguments so powerful you won't need to shout.

Love the screen name btw. Thanks for following my work.

David in Qatar

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