Posted by: graemebird | September 27, 2008

Outrage/The Pretense Of Opposition/The Weekend Song And Dance.

The stealing is going ahead but they need to do a weekend song and dance about it. There is absolutely no justification for the stealing whatsoever. Its a heist, carried out in the full view of the public. It shows which sectors of society actually run things. The heist is in fact the acid test for the discovery of what sectors, in effect, control society. Its just a heist.  A heist with no need to plan the getaway. Its a heist and nothing good can come of it. Any alleged “good” that may possibly be ascribed to it, in the future, without people chuckling, will come out of any action that leads indirectly to an increase in the monetary base to replace the collapsing ponzi-,money. But that increase in the monetary base can be done directly and even the court economists, in total awe of the crafty song and dance men in the financial sector, know this. Any economist who wasn’t playing hooky during monetary economics knows this.  Humphreys must have had a good long look at himself. Because he has come out and admitted this and has finally done the right thing and told everyone that a bailout is not necessary. Humphreys has come back to righteousness, after a fashion, and has made it clear to the laity that only an increase in the monetary base is necessary and every economist that understands money knows this.

Nothing that these lunatics do, EXCEPT for increasing the monetary base, can possibly help the real economy at this point. I advocate the two-pronged use of controlling the monetary base and reserve asset ratio, because in reality these are the only things that work.  The interest rate policy only has an effect indirectly. But its part of the bankers code of silence that they make a big deal of things that have no functional purpose, aside from banking sector enrichment, and do all the actual useful stuff, such as injecting monetary base, on the sly.

Hence interest rate policy is held to be for the purpose of demand management, but its really for the purpose of bank enrichment. And the demand-management is handled in the background. One shonky practice gives cover for the other via the switcheroo in their alleged justification.

What I mean by this is that if the bankers ever admitted that only money supply and monetary base mattered, and this pretense of mucking about with interest rates was ineffectual and pointless excepting only the indirect effects on monetary base and money supply…………

…. if they admitted this than it would not be possible to use these tools for direct bank enrichment. You lend money to me at below wholesale rates, you are enriching me, don’t doubt it.

So the stealing is going ahead and the Congressmen. Ron Paul and just a few others excepted, are determined to do the stealing.  They will have no second thoughts ABOUT the stealing. But the calls are coming in 100-to-1 against the heist, and so a song and dance or sorts is necessary. They will have to “work” (a woman screams) a weekend.

You see , since the heist is utterly unjustifiable, they have to “work” a weekend over it. They have to have the pretense of thrashing it out. But how many of them will stand up and just scream bloody blue murder about it, and point out that its just stealing, and demand that those BASTARDS step outside? Any of the younger Congressman that can muster a bit of patriotism ought to disrupt matters to call for any posing compromisers to step outside. Or duke it out right there in front of the cameras. A good Congressman ought not allow any pretense that this is not a heist. A heist pure and simple.

Two hundred and something years ago, many European countries were basically Gendarmere countries. The strongest lobby sector of society was the military. Britain was probably amongst the healthier societies of the time, because it was reliant on its navy which it kept sailing around the world, and in this way they did not capture the influence of the locals decade-in, decade-out. If we instituted libertarianism we would have to be careful that our Gendarmerie didn’t get too much  influence.

But in this day and age its pretty clear who are the controlling sectors of our society. These consist of the public sector lobby group. Whose pathetic opinions, and committed, knowing irrationalism, is most fully expressed by Mark Bahnisch’s treacly-fascist site: Larvatus Prodeo.

And the other sector that has a controlling interest are the fractional reserve crowd. The bankers and fractional-reserve-team-B.

Fractional-reserve-team-B are all those who are conveniently placed to take full advantage of Cantillon (CAN-TEE-YON) effects of new money creation.

If you doubt it then contemplate to yourself how it is that the bankers and fractional-reserve-team-B managed to pull off a massive heist, in broad daylight, with no justification whatsoever, and the only compromise with normal decorum is the idea that these pampered taxeaters have got to go through the motions and “work” a single weekend.



  1. “Okay Bird:

    Let’s see you tell us exactly what the Fed will take in it’s books in order to raise broad money? What you’re saying is that it’s okay to stuff Fed balance sheet with useless crap to an even larger extent than now.

    So either way the government ends up with the shit. But with the current strategy the Fed will eventually have to get bailed out too.

    Comment by jc | September 28, 2008”

    There is nothing more stupid than them taking stuff onto their books or trying to hold up broad money. Thats not the requirement. The requirement is to produce extra monetary-base not extra broad money. So its obvious what needs to be done. They need to retire debt and whack up an RAR. Stealing is not a substitute for doing this.

  2. The heist includes skimming off 20% of any recovered funds and giving it to leftist groups. This is bigtime socialism. How can this not be a giant theft?

    There appears to be this argument out there that cash-creation won’t work therefor the heist is vital. This is ridiculous. Stealing will not work. It will not help anyone. Only new cash creation and a reserve asset ratio will help.

  3. Dumb leftist Paulson can be expected to keep buggering things up in much the same way that Hoover did in 1929. This constant throwing of hundreds of billions of dollars at the bankers is just going to compound the damage and keep the crisis going.

    Not only does he not understand monetary-economics. He’s also a CO2-bedwetter.

  4. “The Treasury is now back at the heart of government. Hank Paulson has been the dynamo behind everything from the $168 billion stimulus package to the latest plan for a $700 billion bailout of Wall Street.”

    Look at this? He is behind that stimulus package which is part of the problem. Draining capital away from productive use. This fellow Paulson is just a public menace.

  5. Bird:

    are you have a debate with yourself? Which side of bi-polar is winning?

  6. Are you in fact going to come up with one valid argument even once?

    Paulson is clearly doing the opposite of whats needed here. Like Hoover.

  7. So no valid arguments from JC. Just whining for more money from those who don’t make anything useful for a living.

  8. Very good explanation of the crisis by Peter schiff

  9. Mr Bird,

    A colleague pointed out this section in the proposed package (now thankfully defeated). It would have authorised not fractional, but zero reserve banks. Interestingly they are still due to come into effect in 2011.


    Section 203 of the Financial Services Regulatory Relief Act of 2006 (12 U.S.C. 461 note) is amended by striking ‘‘October 1, 2011’’ and inserting ‘‘October 1, 2008’’.

    and what is the clause they are accelerating?

    “Federal Reserve Banks are authorized to pay banks interest on reserves under Section 201 of the Act. In addition, Section 202 permits the FRB to change the ratio of reserves a bank must maintain relative to its transaction accounts, allowing a zero reserve ratio if appropriate. Due to federal budgetary requirements, Section 203 provides that these legislative changes will not take effect until October 1, 2011.”

  10. Bizzare. How can this be equality before the law? A zero reserve would make you entirely a creature of the government. I just wonder what is going on their little minds.

    I cannot imagine what they think such a bank would do?

    Perhaps they just mean they can keep their reserves at their own branch and not have to lodge them with the Feds.

    Yeah thats probably it. I think the Fed actually goes so far as to force banks to keep deposits with them. I cannot understand people who just assume this is in any way free enterprise. I’d want them to just keep the cash in their own branches.

  11. Hey this giant ripoff was defeated. This is just magnificent. Onya Ron Paul.

  12. “JC. Says:
    September 30th, 2008 at 5:40 pm
    I know Jase. These feral bird like creatures have now taken hold of the congress.

    They don’t realize that if the firm they work for can’t get its credit line drawn on pay day because the bank doesn’t have any money they won’t get paid.”

    We are sweet over here. If I’d have known this I’d have plunged back into the stocks. The Americans of course will have to keep retiring debt until they are sure that basic payments can be made within the system. But other than that its best just to watch all these incompetent and costly bankers keep over. One at a time or altogether.

    But I agree that if not enough cash is created there could be severe disruptions since the ponzi/cash ratio has just gotten right out of hand.

  13. “JC. Says:
    September 30th, 2008 at 5:59 pm
    They’re calling me……. Nanu with the latest gossip such as who has been fired…. They’re all like deer in headlights.

    They just couldn’t believe what Congress did last night.”

    This is great. When have you heard of it? Bigshot bankers actually firing other bigshot bankers. Its like we have to take photos of it and put it in a fucking museum.

    “JC. Says:
    September 30th, 2008 at 5:55 pm
    You know every fucking US right wing site I have seen today is toasting the failure of this bill and as of today I’m toasting goodbye to any positive views I ever had with the US right wing. Fuck them.

    it’s like a goon squad of idiocy with those fools.”

    Just unbelievable. Its like he really thought it was good and proper for his industry to blatantly steal hundreds of billions off the taxpayer, to further indebt the American public and so forth.

    You see what happens when you give people special priviledges. It corrupts them entirely. Thats where we fell out. His act just reflected the corruption that his easy money had lead him to and so he used whatever excuse he needed to have it all his way.

    I mean that industry is stealing as we speak. Not just debt retirement which is understandeable and the right thing. But direct loans to cronies. All sorts of shit that your average Joe wouldn’t have access to. But at least one massive motherload of stealing was avoided.

  14. This month Ron Paul has clearly been the most important man in the Republic. Which has made him this month the most important man in the world. Brilliant show. He may have averted disaster. He may have changed history. Paulson and Co. looked like they had stacked up momentum in the sort of total policy dysfunction that we see on this sort of thing. Like Hoover and FDR during the great depression. It was never going to end the damage they were going to do.

  15. “Bird and his American political cousins can then switch their discourse to the dangers of the firm not being able to get a line of credit to meet payroll.

    Caring about fractional goes out the windows then i guess.”

    Not on your nelly. A 10% increase in monetary base in one month and likely more to come ought to bring them to where normal spending and payments are maintained. Even if there is some disruption for awhile. And the answer to this if there is disruption is to just keep on increasing monetary base until some facsimile of standard payments between firms resume. Every last bank in the US goes belly up it won’t make a difference at all so long as they get the monetary base side of things right.

    No need for any other measure except for spending cuts.

  16. I’ll keep my purple pin-stripes dry
    And offer no apology
    I go to church’t ain’t a lie
    My Book of Ideology
    It tells me true, my greed’s no cause of all these horror farces
    God is great and so are we – the conspiracy of horses’ arses.

    Well you may say that this today
    Was vict’ry for democracy
    I’m sure you’re right but now I play
    Before they take my yacht from me

    We bankers are the best y’see
    Pluckin’ feathers off the ducks
    Sprite ‘way with rainday cash in SUV
    And the rest of you: Get fucked!!

    The choice is hard, must needs thoughts deep
    This week it ain’t no lark
    Should we save these shonky lying creeps
    Or get used to eatin’ bark?

  17. In their desperation to get this bailout, none of the elitists even bothered to explain how the $700 billion was justified as a stand-alone figure. What is $700 billion? Where did they get that from? The answer is, they don’t have a clue, but merely plucked a number out of the air and insisted that they be given that amount. In fact, they are only kicking this crisis down the road by a few months at best – this could be the beginning of hyperinflation.

    The bailout is not justified, and it was heartening to see the Republican House members grow a spine and vote the bastard down.

  18. Yeah thats right. Notice that the implication is that they must make profits. They have to run a profit or we have to give them the money via open daylight theft. So these guys reckon that they cannot wear losses ever.

    Since they trade under what would normally be considered criminal insolvency, with a mismatched book that borrows short and lends long, than it becomes clear that they will find any losses very disturbing. But these people are too stupid to realise there is anything unnatural about the way they do things.

    In fact its almost impossible for these guys to make losses if new money is being created and they are all so horrifically inefficient that none of them make profits when new money isn’t being created. So the only solution is to get them all sacked and find people who can do the job.

  19. “144
    Adrienswords Says:
    October 1st, 2008 at 5:50 pm
    Steve #138 – From the cursory but of US financial history I’ve picked up in the polemics about bail-outs recently it seems to me that they almost always occur. Perchance do the shonks in the Street count on it.
    Jeez it’s hardly the surprise the media present it as. There’s at least one book published about getting out of the Sub-Prime crisis. The dude must be a prophet.”

    Fractional reserve means bailouts. Thats just the fact of it. But ending bailouts doesn’t mean the end of fractional reserve. People sometimes get that the wrong way around and people who get this the wrong way around just get in the way.

    Ending fractional reserve ends the bailouts. But you cannot end fractional reserve by deciding not to bail them out. In fact you cannot end bailouts by deciding to end the bailouts. The only way to end the bailouts is to end fractional reserve in all its forms.

    Adrienswords Says:
    October 1st, 2008 at 5:50 pm
    Steve #138 – From the cursory but of US financial history I’ve picked up in the polemics about bail-outs recently it seems to me that they almost always occur. Perchance do the shonks in the Street count on it.
    Jeez it’s hardly the surprise the media present it as. There’s at least one book published about getting out of the Sub-Prime crisis. The dude must be a prophet.”

    Finally. Some sense from Adrien. But Adrien these guys have got it really sussed. You see the first inner layer of shonkiness you have all these tall bankers in pinstripes or dark suits. And these guys are all “Prudential” this or “Sound as a Northern Rock” that. And they affect to have a conservative, nay, shall we say BORING persona.

    In fact all but about two of the account managers I knew in Corporate Finance REALLY WERE incredibly boring types who didn’t understand the daily heist they were pulling off. Those other two were pretty cool guys and interesting. But I don’t think they knew the heist they were pulling off either. But at least I suspect they sensed it.

    And the next circle of benefiters from fractional reserve, the shonky nature of what they are up to is airbrushed so that shonky now becomes “adventurous and risk-taking” and this persona is not really where it belongs. It is delegated to the people who get indirect, rather than direct advantage from the initial gyp.

    So we see the initial loathsome theft being taken up by alleged pillars of the community. Then we see the next level where people are arrogating to themselves this entrepreneur vibe. As if someone who makes a quick killing advantaging themselves of the deleterious effects of money creation are akin to Steve Jobs starting Apple Computer out of a shed. Or Edison hitching to town and sleeping on the floor. Sleeping on the floor all over the place and getting up one invention after another and each one a new adventure.

    Its the old Greshams law again. If we tell ourselves that corrupt and government-supported behaviour is adventurousness and entrepreneurship….. If we tell ourselves that bankers are the pillars and rocks of the community, waging a hundred-year Gandalf-like war in favour of all that is good and sound…………

    …. well we will drive out and dry up all the real adventurous entrepreneurs… and all the real solid types who will be willing to fight decade in, decade out ,for stability and justice in the community, and for the assured survival of the community against foreign predation.

    Fractional reserve debasement debases all human values and not just monetary values.

    Adrien. Rent out THIS MOVIE…..

    ….. and get back to me.

    I rank this one amongst the greatest of the sixties. Along with the Sound of Music and a couple of spaghettic westerns. I don’t think the 60’s was a great time for movies in the English-Speaking world. Except for the movies mentioned and one or two others.

  20. one amongst the greatest of the sixties.
    It certainly was. I’ve seen 100s of times. And will again. Last year at a Lee Marvin retrospective along with the next film he did Also by John Boorman. Lee Marvin is the only guy who could possibly be cooler than Steve McQueen (maybe Clint Eastwood),

  21. jesus, Bird liking The Sound of Music

    you really surprise us sometimes …

  22. I said its a great movie. I could say that and not like it at all.

  23. When I think of it all now. And I think of the Plummer character as Austrian. Its a funny thing with the lost Austro-Hungarian setup. Like some sort of lost Atlantis culture that went bad pretty quickly but with enough outstanding people before things fell apart.

    Not enough outstanding people to save their ass but when one thinks of some of them and particularly Mises, one wonders if they might not wind up saving our asses instead.

    I don’t think there is that much time left.

    Inflation-addiction, debt-spirals, and energy-deprivation, and a new little-ice-age.

    Civilisations wouldn’t DESERVE to survive such an iron grip of dysfunction and we will have to hustle to survive this perfect storm.

    At school we studied the lives of the Kalihari bushmen, and the experience of Ceylon. We studied the 19th century Londoners just to convince ourselves of how bad capitalism was.

    But we English-Speaking types aren’t thinking hard enough about this otherworld of the pre-collapse Austrians. Maybe they had a lot more to say to us than we could get from the bushmen. Maybe we have something to learn here.

  24. “melaleuca Says:
    October 2nd, 2008 at 5:37 pm
    DB says:

    “And please, no more of this BS that the US financial system was deregulated; if it were, Sentors and HoR members would not have been receiving kickbacks.”

    You have it arse backwards, mortgage companies were donating money to politicians to fend off regulation against predatory lending:

    Steve. Listen. You are more right than they are. But you are still wrong.

    Capitalism…. properly considered… has as its highest principle… the idea that all of us are equal before the law.

    Equality before the law implies 100% commodity backing. And most years it implies growth-deflation.

    You are absolutely right to say that this finance system fucked up and the excuses of these people are clearly lame.

    But just don’t blame it on capitalism. Fractional reserve money can only ever be crony-socialism and it cannot be anything else.

  25. An extraordinarily good post from Mr Adrien:

    “Adrienswords Says:
    October 2nd, 2008 at 6:22 pm
    Two quotes for anyone who wants to retort with some kind of ‘free market’ mantra:

    I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country …corporations have been enthroned and an era of corruption in high places will follow

    Abraham Lincoln

    The governments of an exclusive company of merchants is, perhaps, the worst of all government for any country whatever.

    Adam Smith
    Wealth of Nations
    The use of the term ‘free markets’ is Orwellian these days. What it usually meant by that is an oligharcy as described by Mr Smith. Perhaps? he asks. Perhaps not. I have feeling we’re going to be finding out shortly.
    Unfortunately the debate is between those who advocate open markets and those who’re at war with capitalism. The first aid the above situation; the latter do nothing to prevent it.”

    Good post Adrien. Fucking good post. I’ve gone easy on you. Don’t fucking let me down.

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