Posted by: graemebird | September 27, 2008

Money For The Rich

As the pyramid ponzi-money continues to unravel in the states, here in Australia we have one ardent fractional-reservist who is charging about desperately arguing that the American taxpayer must continue to subsidise wealthy bankers. Cambria is arguing that this subisidy of about $2000 at least for every man woman and child in the US is necessary to keep rich bankers in the lifestyle that they have become accustomed to.

Clearly Cambria was always a crony-communist insinuating himself onto the free enterprise side of things. Consider what this wiould mean here. In this country one billion dollars is apparently a little bit too much to ask for for our poorest retirees living in squalid conditions. But a bailout of a similiar proportion here would be for perhaps 40-50 billion dollars to keep bankers in the comfort and style that they have drawn accustomed to.

Over at “Thoughts On Freedom” people seem a little bit stunned and are giving Cambria’s crony-communist option the benefit of the doubt. Cambria may have even gone into multiple personalities to push this outrage.

This is what happens when a ponzi-scheme comes unstuck. These bankers thought that they were the Kings of free enterprise. When in reality they were pampered parasites.

So lets get this straight because its important to understand. You have cash. And you have this racket, supported by government, where they pyramid all this ponzi-money on top of the cash. They ought not be able to do it. Or if they are able to do it they ought not be able to do it much. You and me would get thrown in jail if we tried this obvious fraud on. Hence a reserve asset ratio is entirely appropriate  for them to have to deal with in return for the government to produce enough cash to bring the crisis to an end.

We have three idiots over at Thoughts On Freedom. And all three of them might be Cambria. He’s trying to confuse people into thinking that we ought to just hand all of our extra-money over to bankers and that this is only fair and proper. Perhaps we can make them our overlords.

But there is no trick to this. The ponzi-money is collapsing. Hence the idea is to flush in much cash to replace it and have a reserve-asset-ratio put in that will stop this extra cash from being inflationary.

There is no substitute for doing this. We might all decide to become serfs for the pleasure of rich bankers and that still wouldn’t help. Because it won’t increase the amount of cash available in relation to ponzi-money.

So don’t be fooled by Cambria. Cambria is utterly full of shit. And we now know why it was he never supported me in these threads of doom when Mark Hill, Reynolds, and all the others were talking such nonsense thread after everlasting thread.

The thing about talking money with these parasites is that they lie all the time and they expect the rest of us to put up with being stolen from by these guys.

And its no different here with Cambria.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Now think of how much of a subsidy everything the Feds are doing is.  Already they are loaning all this money to the banks at bottom basement interest rates. Apparently they can do this without Congressional stealing to assist them. Why should bankers get these benefits? Supposing these benefits came my way. Supposing if I was allowed to refinance my house at 2% interest. How would that not be a subsidy?

The differnce is that this money in my hands would actually acheive something. At the expense of the rest of you I’d be much better off. But any amount of money the American taxpayer subsidises these financial institutions is just propping up economically injurious operations.

The dillemma is this. If they flush in enough cash to replace the ponzi-money without instituting a reserve asset ratio than the problem will be solved but thereafter the financial institutions will go on a money creation binge. Extorting all sorts of wealth to their own pockets and creating inflation.

But if they don’t flush in enough money, not only will all the banks go bust but it will hurt main street as well. So its a question of letting the bankers keep their ill-gotten earnings, letting the institutions go bust, and from there on in not letting these guys create any more ponzie-money.

Advertisements

Responses

  1. Mr Bird,

    This Cambria fellow could not lie straight in bed. The contortions that he will put his logic through to argue for handouts for bankers. Were this not a straight hand out for banks they would bailout the people who have actually gone broke over this, the homeowners. They can repay their debts where appropriate and regain their houses where possible.

    Still just more ponzi money but at least we rescue some of the small guys on the way as well rather than just offering cash to the billionaires.

  2. Right thats where the cash comes in. Maybe you give them cash to move out and find somewhere to rent so their debt is liquidated.

    Or maybe if a bank fails the cash gets injected in to people who have just lost their deposits.

    So you need extra cash but the last thing you want is to be sending it to all these bankers. The more of them that go to the wall and the more people that declare bankruptcy the better. Since you can now start anew with less total debts.

    I think in the end you could only help the poor people who wanted to walk away. Walk away from the debts and from the house with a bit of cash in your pocket to post bond on a new place to rent.

    Because paying them to stay in the house is leaving all the debt outstanding and not liquidating it.

    What would be best is to wind up with lower debts, more cash, and no possibility of new money creation except from the extraction and coining industries. And you want to do it all keeping total spending about dead even all the way.

  3. For the last two years I’ve been telling these guys that in the information age the only stable monetary system for fiat would be 100% backed growth-deflation. Soon will remember this because he was shocked by what he thought was a fixation on falling prices. But with all these computers around, if you don’t have such a system these guys are just going to build a massive structure of derivatives and financial products on top of the cash. Even with 100% backing you’d want to keep spending growing within that sweet point where revenues are growing a tiny bit every year but prices are falling. Otherwise the thing will spin out of control and you’ll wind up with more government bailouts and regulation.

    But of course even that is theoretical. Since the finance-sector and government will get together and sabotage everything unless its all done with private commodities and 100% backing.

  4. Clearly Cambria was always a crony-communist insinuating himself onto the free enterprise side of things.
    .
    Nice alliteration Graeme. Always???? You and JC used to be mates remember? Rewriting history to suit yourself is the chief tactic of the Totalitarian mind. Read this for an excellent illustration of this nefarious point.
    .
    Funny how the banks turn socialist in times like these isn’t it? I know jackshit about this stuff. But I know to sell when the bubble appears. And I did. 🙂

  5. Look. We had all these threads of doom. And he would start saying things like “I respectfully disagree…” And all this. Well thats alright for awhile. But then he wouldn’t give a fucking explanation. Same with the global warming racket.

    And then he started saying things he knew flat out weren’t true. He started claiming that banks don’t create money. Whereas he knows they do and knew they did earlier.

    So you just get sick of this. Then he jumped on the Martian thing as an excuse to simply decide that he wasn’t ever going to have to practice reason again. He now never feels like he needs to argue things in a logical way. Its a stunning decline in the willingness of a person to go by the rules of reason and logic.

    Now we find what its all about. Its about him feeling a sense of entitlement to make his easy money even though the system that allows him to do it so successfully is sending us to disaster.

    Whereas two years ago he accepted that he would probably need to do things differently under a better system. Now he just says fiat fractional reserve is fine. Its not fine. Its buggering things up bigtime. Its subverting our ability to adapt to peak oil and our ability to bring down government and financial sector parasitism.

    We cannot afford this anymore. Matters are really very dire. I’m telling you we face at least 30 years of energy stress and thats if we are doing things right.

  6. I don’t understand this fractional reserve business at all Graeme. What’s the classic libertarian text on the matter: the gold standard and all that? I should really look into it.

  7. I don’t think JC’s committed on the global warming thing Graeme. He posted at Thoughts on Freedom expressing doubts about the models and such.

  8. Mr Bird,

    I notice that Cambria is too yellow to make it over here now and must comment behind your back. “This will piss Bird off. Hey Birdie, these dudes are earning multiple millions and you’re not. ”

    Not only an unashamed crony-capitalist but gloating about it too.

  9. it’s you against the world “Mr Bird”

    oh and dick, put a sock in it you metrosexual sycophant. graeme’s arse is not for sale

  10. If you are in favour of special priviledges, government protected counterfeiting rackets, and elites that are able to steal off the rest of us you are in favour of crony-communism Jason. So how about not fooling yourself where your allegiances lie. Its pretty clear that when push comes to shove it will be the Chi-coms that wind up holding your allegiance. There can really be no doubt about it. Here you are in favour of both the bailout, more money wasted on these incompetent imbeciles than spent on defense this year, and allowing these guys to gain the subsidy of being allowed to create new money.

    So its clear that you will always go for who has the power. Whose in the inner circle of priviledge. Thats pretty clear from these wise-ass remarks you are making above. We have a potential traitor in our midsts. Whose position will change just as soon as American power is reduced enough to have a new unopposed power in our region.

  11. You’ve pretty much showed your hand fella. Crony-communism. You appeared to be in favour of Centre-Rightism and Americans, just so long as centre-right Americans held predominance in power in the upper circles of govybank, bankyment and Washington-lifer-town.

    You are where-ever the power is. A natural turncoat. Someone we don’t need. An ideas sycophant. Ultimately only impressed by force and the ability to steal and stooge people.

  12. where did I come out for the bailout you fat goose?

    and WTF are you talking about? You’re the Ron Paulian. I’ve been giving Surkrit the boot for his anti-americanism

  13. Like all communists you blame your problems on ‘the system’, You want to change the world rather than adopt to it.

    In short you are a Bolshevik

  14. You are in favour of the bailout. Or you’d be speaking out against this outrage. So its very clear you are in favour of it. You couldn’t hide that one from the rest of us.

  15. that’s right Graeme. you got me.

    i want to starve the old folks to death while lavishing stolen money on the suits.

  16. Mr Soon,

    Very strange philosophy for a so called libertarian to not want equal treatment for all but think we should just “adpot” to it and engage in whatever practices that are going on. You will one imagines stop calling for all reform of laws and just get on with adapting to whatever circumstances you find yourself in.

    By the way, the constant homosexual innuendo reveals what must be weighing heavily on your mind my boy. My advice is that one doesn’t need to live a life in the closet in this day and age. There are a great many communities that would happily accept those of your pursuasion.

  17. Dick
    Drop the act, you’re not for real. No sane person could take ‘Mr Bird’ seriously. You’re either playing a prank on the fatboy or after that arse of his.

  18. Mr Soon,

    Mr Bird has his heart in the right place and is earnestly striving for a better world. I do not believe that everything he says he is 100% correct, all of us make errors some times. However Mr Bird’s ruthless pursuit of the truth against the leftists, and crony capitalist has won a great deal of admiration from me. If only half of what he says is right, and I suspect much more of it is right than that, then you really have a great deal of egg on your face.

    Of course you merely seek to dismiss him with accusations of insanity which belies your vapid logic.

  19. Graeme
    you’ve become progressoively more insane since leaving Catallaxy

  20. “that’s right Graeme. you got me.

    i want to starve the old folks to death while lavishing stolen money on the suits.”

    Thats exactly what you wanted. You came out against a payraise that would have cost us 1 billion. We ought to be slashing at least 40 billion this year and there is a lot of tax cuts and exemptions to make. But there would have to be a little bit of new spending too. And you were against an increase in pensions for the old buggers that would have cost maybe 1 billion. But you were in favour of a 700 billion dollar bailout for the suits.

    And when the Chi-Coms project enough power into this country you will wind up having a tendency to find favour with all their plans and intentions.

    We don’t need you natural turncoats around here. If you had been against the bailout you would have been so disgusted as to feel the need to bring the hammer down on Cambria. You might have prevented him making such a tool of himself.

    Cambria is now trying to blame George Bush and Karl Rove. Like the bankers didn’t make the same choice on every counterfeit loan they made. It was a hot potato. They offloaded it onto the black, hispanics and working class folks and that was the end of the line. So now they try and offload that hot potato onto the taxpayer,. Their next step will be to go too far with the monetary base creation (a necessary thing admittedly) and devalue the dollar and that will justify their loans by that route. They’ll destroy the dollar rather than give up on fractional reserve or cop it sweet for the rotten loans that they made and bought.

    Just outrageous. This attempted heist without any economic justification. But the logic of this fractional reserve is that you have to keep kicking that can down the road. Since they didn’t get the direct 5% of GDP bailout as a straight daylight act of theft their next plan will be to destroy the dollar to justify the nominal price of their assets.

    It amazes me Ron Paul and the good people stopped that last ploy. It remains to be seen whether the same forces of fairness and justice manage to stop the destruction of the USD.

    Everyone and his momma will be selling USD short when they think the time is right. And somehow the economist Bernanke will forget his economics and he’ll start monetizing debt far more than he needs to. No-one ought have any money invested in USD. Bail out now. The more people that bail out of USD now the less this crowd will be able to water down the USD ouright via monetization.

  21. Mr Bird,

    I fear that the time to exit the US may be short. No doubt Goldman-sachs or some other combination of pinstripped hucksters will offer those waivering a guarentee of a seat at the money trough, in exchange for the few votes needed bring this bill into reality.

    We live in frightening times, I am considering investing all my money into gold.

  22. The stealing was stopped and now the stealing begins again. I heard that Bernanke is trying to get the ability to pay interest on cash that the banks have lodged at the Fed. So whereas under free enterprise fraud banking these guys would have to hold maybe 20-40% reserves and not get any interest on them at all, Bernanke now wants to shovel more money at these clowns.

    So they tried to steal 5% of GDP up front. They get the lions share of the benefit from new money creation. Now these utterly shameless thieves are going to get another subsidy.

    Presumably Bernanke can build up liquidity that way. Yet for a long time if he’s paying them a lot of interest its easier for them to not loan anything and live off the more direct public tit.

    But when it takes off the boom again…. they’ll have a mountain of liquidity to pyramid on and Bernanke will be full on bribing these guys to park their cash in the Fed and not lend it out. What idiocy?

    A mean its doable from a purely monetary point of view. But its like the hot potato is put squarely on the taxpayer and the viability of the dollar.

    They tried to blame it on the black man and all the many thousands of people they are mercilessly evicting as we speak. But they simply will not wear the Hot Potato. Bernanke and comrade Paulson are like the fucking EU. When the vote goes in favour of them they say “Onward in the spirit of Napoleon” and when they lose the vote they say “The project continues…. onwards….”

    So the stealing was thwarted and the stealing begins again. They could have liquidated every fucking bank in the US and much of their foreign debts forgiven. They could have sold up all of those lush offices and decapitalised the finance industry right down to the ground. Now the public and the USD have the hot potato fair and square. And since the politicians will not stop spending it will have to be the collapse of the USD…….

    ….. But there is still one more out. The American bankers can use all their powers and influence to get all the other currencies to inflate as well. And they may well weild a lot of influence here since all of banking is structured like one gigantic cartel as is the nature of fractional reserve.

  23. Of course these guys are very secretive and mysterious about all they do. So the above scheme is speculation on speculation. And I’d be interested in any new information that comes about.

    What we can be sure of is that they’ll come up with stuff that sounds like its a good thing in the short term for some real problem but that it will lock in some sort of massive or insipid subsidy to these guys. Everyone of them an entrepreneur in their own minds. But their pride is more like the pride of an enterprising bloke in the old days who could get three welfare checks, deal drugs out of detox luxury, and pull casual work on the sly. Thats entrepreneurial too after a fashion. And risk-taking.

  24. “They tried to blame it on the black man and all the many thousands of people they are mercilessly evicting as we speak”

    Well unfortunately the Community Reinvestment Act did contribute to the problem you commie. Or do you believe that markets just fail?

  25. What you will not get in your head Jason is that:

    1. If its not free enterprise money its not a functional money market and I can prove this inductively about as satisfactorily as anything can be proved by that method alone. Which is not perfectly, but if you at least understand you’ll wind up thinking its obvious.

    2. The default position of markets working is markets without fractional reserve and with very little money creation.

    And no you cannot blame it on the black man. Or the blind profit who sleeps next to the fridge or some goon who hides in caves somewhere in the badlands of Pakistan or Montana.

    Every loan was made by a fractional reservist. And the idea with fractional reserve is you pass on the hot potato. And you grab your chair well before the music stops.

    So they passed it onto the poor people.

    You think how dysfunctional the finance world is. They could have GONE INTO BLACKTOWN AND TO WHERE I AM in 1998. And they could have given ME and every solid black family man and interest free tax deductible loan and we would have been rich. I would now be rich and every black family man of some standing and perserverance would have been rich if you had reversed the order of things.

    This is the hot potato. This is why Humphreys still supports this racket and only let me on to slap Cambria and then blocked me again.

    You see Humphreys grabbed the hot potato and offloaded it very early on and then was amazed that many years passed before the whole thing came undone.

    So he’s looking after number one and going with the logic of fraud banking. He thinks he’ll ALWAYS get on the cantillon-effects-scheme early on. He’s a trained economist after all. And so he thinks he’ll always get the upsweep. And the fucking bludger won’t have to work a day in his life on account of his prudence in waiting for the shake-out and the shake-down and not being extra greedy and offloading the hot potato at the early stages.

    The 50 billion in direct subsidy that the banks got June-to-June these last 7 years isn’t even the beginning of it.

    I tell you straight. I knew how things were running. I could have serviced a no-interest loan in 98 no problem. And if I could have got it that would be my wealth that fractional-reserve-team-B managed to steal to itself.

    Don’t you assholes be undermining the morale of some good black man that has four kids and he works six days a week and now his wife thinks he’s unamanly because he couldn’t keep the dream together.

    The fact is if they had given this man THIS MAN the fractional reserve loan in 98 and not 2005 than he would walk upright and with confidence now. He would be on the local PTA, trying to deal with those asswipes for the benefit of his kids.

    But now the kids are telling him its his fault. He was only ever a bum like his father. And he’ll always be a bum. And there is some old boyfriend sniffing around his misses now that they are going back to Saint Vincents for some of their clobber.

    So it was only natural if you took a supersticious approach to economics, that the benefits from housing ownership ought to be brought to everyone.

    You heard me advocate this day in day out every week for two years. But not from cheap credit. It had to come from banning any height restrictions to building. It had to come from growth deflation so that land no longer became the good that was taking the premium price.

    I wanted it like a lot of people wanted it. Spread the wealth around. Give these families something that they own and no-one can take away from them. But you see those that take a supersitious view of things they cannot think of supply, demand and real resources all at once.

    No its no good. No good to pass on the hot potato. Its the banking system and fractional-reserve-team-B that ought to cop it. They won’t cop it. They’ll find another way to dump it on someone else and blame someone else.

    But you see to get to a better world we have to come clean about the hot potato.

  26. YOU CAN GET UPTIGHT ABOUT IT CAMBRIA. OR YOU CAN GO TO CATALLAXY, AND UNDERTAKE NOT TO TELL LIES AGAIN AND OF COURSE I’LL REMOVE THESE TRUTHFUL EXAMPLES OF YOUR STUPIDITY.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: