Posted by: graemebird | October 3, 2008

What Did I Tell You? The Stealing Is Blocked And It Begins Again.

I hadn’t been looking at the papers and so was behind on things. But usually I buy the Friday financial review. And here I was thinking that this outrage had been beaten for the time being and the thieving plans would go ahead but that they would be more low-key.

But what do I see on the Financial Review front page?

“The approval by the US senate of a revised $US 700 billion failed to ease fears about a global economic slowdown as jittery investors awaited A SECOND VOTE……on the controversial plan in the house of representatives…”

THEY TRIED TO STEAL 5% OF GDP IN BROAD DAYLIGHT FOR NO ECONOMIC REASON WHATSOEVER AND THEY GOT VOTED DOWN.

Now my predictions have been wrong in the specifics here. But haven’t they been astonishingly born out in terms of the deeper principle of whats going on here.

Do you leftists, and you crony communists, want to die with blood in your eyes and dirt in your mouths?

It won’t be from me fellas. But don’t you understand the principle of it? That if you pervert the system of voting and destroy the idea that matters can be solved via ballot, then you will see in your lifetime, that matters will be solved in a hail of bullets.

Think about this. A blatant act of awesome theft was attempted by the banking-government-fractional-reserve-team-B Nexus. There was absolutely no justification for it whatsoever it was just theft. Theft and nothing else.

Stunningly it was beaten. That ought to have been the end of the matter. The votes had spoken. So what do these parasites do now that they have gypped the President utterly?

They just go again. They are going to keep putting it before the fucking vote until they get the outcome they want.

These people stole off you when they created all this new money. And now they are stealing off you again because they have run out of people to flip those inflated assets onto.

Now you would not make Ron Paul President and thats a shame. But you know what you have to do whether you would have been in favour of a Ron Paul Presidency or not.

Just give him what he needs. Just give him what he needs to open up this Federal Reserve mess like he was cracking open some sort of rotten shellfish and let him scoop this muck out.

You do not realise how much these monetary lords have been ruining your country. It wasn’t the lack of trade barriers that ruined your exporters. It was this monetary racket these clowns foisted on you. The same racketeers that are now demanding hundreds of billions of dollars from you.

It would be a better and more valuable job than President. Just give Ron Paul all he needs to rip that fucking Federal Reserve apart.

And stop this new attempt of blatant daylight theft. It was so huge, so unjustified, and so public that you might be taken in by it as is the case with every use of THE BIG LIE technique.

But just keep emailing those Congressman. Go to an internet cafe and threaten to fucking kill these guys if they vote yes to this.

You just cannot let people steal off you in public like this. In broad daylight. In such an unmysterious and bipartisan fashion.

For one thing you enemies will see this and they will see that you have lost your moxie. They will see that you are no longer the land of the brave and that someone must have put something in the water.

Perhaps you non-economists have been stooged into thinking that there is some sort of need for this. My background is economics and I assure you that it cannot be justified and it is simply theft. The only thing that might be required in the short-term is the retirement of debt to increase the monetary base. And they’ve done that and they can do it some more. There is no justification for this theft whatsoever. And if you cannot muster the staying power to kill this thing and chop its head off the rest of us will see the American people as too tired and worn out to take seriously.

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Responses

  1. My dear Mr Bird,

    I tried to warn you a couple of days ago that the theft was only temporarily delayed and that the pimps in pinstripes would be out their offer up seats at the trough to enough waivering fools to get it over the line.

    This result shows that all politicians should have 2 year terms it tends to keep people more honest to their constituents.

  2. They are so irresponsible. If we have this deal where a vote is beaten and they just keep on putting it up until they get the vote they want….. then no more votes…… then what do we have left to settle matters without violence?

    People are exhausted now. Tired and in debt. Overworked. But times can change things and a hard rain can fall if these guys continue with this incredible irresponsibility.

    They try and steal. They don’t get the vote. So they resubmit the stealing proposal. This makes a mockery of things. Because after all…… ought they not at the very least be going for TWO OUT OF THREE?

    Its just beating the ballot process mercilessly until it squeals out “YES”. Like until outraged victims stop emailing their Congressmen.

    I thought it was a one weekend song and dance and then they’d basically fold and give them what they wanted. But it looks like out of decorum they will have to “work” two weekends.

    Time to sell the US short. And all naked short-selling permitted.

    If these guys ever get their revolutionary spirit back my goodness it won’t be pretty.

  3. Birdists of the world unite – you have nothing to lose but ponzi-money!

  4. Yeah well that barely reconstructed communism of yours is never far from your thoughts.

    But this is how things work in your own miserable countries and it works everywhere. You put no weight on justice Jason. You are a skeptic where justice is concerned. But the English-Speaking world put somewhat more emphasis on justice and thats part of the reason we didn’t wind up murdering eachother to the same extent as what your people did.

    You have bullets. And you have ballots. You also had the rule of hereditary Kings but thats gone now so its bullets or ballots.

    So you stupid fucking Nazi, its just the fact of the matter that if you destroy the viability of voting than you will wind up with violence.

    Are too fuckiing stupid to understand even THAT Jason.

    I mean I’ve tried to explain things to you and you seem to be fucking entirely uncomprehending. And right now you appear to be putting words in my mouth from your own commie past.

    How do you think government disagreements get sorted out in our post-Royal world?

    By bullets or ballots you moron.

    Now do you understand what I’m telling you here? Or has it sailed right over your head AGAIN?

    What is it about what I’m telling you that you are incapable of grasping you stupid dumb moron?

    So you think that you can support crony-town theft, and crony-communists perverting the voting system and we don’t have to worry about consequences to that?

    What are you thinking you fucking moron?

    Are you just completely unable to think conceptually.

    People won’t stand for that forever man. Not when they have more ordinance than food in the fridge or gasoline in the car. Your changeling-economics has completely fucked things up. How can you call it free enterprise with socialist money and mountains of regulations everywhere.

    Just what do you fucking imagine that free enterprise is? Anything that cronytown says it is in your view hey?

    Stealing billions of dollars in broad daylight…. Yeah thats free enterprise in your view is it Jason?

  5. which part of democracy don’t you understand you knucklehead?

    the legislators had their package rejected so they’ve responded to the input and are resubmitting a version which they hope might get more support. if you want to argue solely about democracy then they’re well within their democratic rights in doing this, you obese maniac.

  6. You are the knucklehead. They had plans to steal off the public. These plans got turned down because of overwhelming disgust from the public. The Congressmen got flooded with emails and for every 100 “50 said “no” and the other 50 said “hell no”

    So what part of no did they not understand. They didn’t like the answer to that vote so they are simply going ahead with it no matter what.

    So its you that doesn’t understand democracy. What fucking right have they got to steal the money in the first place? They have no constitutional justification. They have no economic justification. They are just determined to steal it. They got turned down for the vote and they don’t like outcome so they are not saying…. shit we got turned down. They are instead saying. Fuck you we don’t like the answer.

    This is pretty fucking simple to understand isn’t it you moron? They will simply keep going for the vote until they get to steal this money and if they cannot get the vote they will steal it anyway. So its a perversion of the voting process.

    Now do you understand that yet? Or is that the way they do things where you come from so you think its just fine.

    What a fucking dummy you are. These guys stealing for the sake of millionaire bankers. Right in front of your eyes. And crony-communist that you are you think its normal and according to Hoyles.

  7. They had no right to so much put this to a vote. This is a criminal undertaking.

    What is more straightforward than this: A straight theft from the taxpayer to the banks.

    You just have all the instincts of a communist or a banana republican mate. Here you are supposed to be an economist and you are one of these people who has absolutely no sense of what public decency, constitutionalism and sound policy means.

    Just up and stealing 5% of GDP for the sakes of some rich bankers is hardly a democratic act. Its not an act bespeaking of a healthy democratic culture.

    But they get turned down in the vote and they just decide they are going ahead with the stealing come what may.

    :Lets go over it again for the Chinese amongst us who do not know how a decent society works. You don’t propose to steal for rich bankers in the first place. And if you do and you put it to a vote and the vote says no you accept that verdict.

    Now, THAT this has happenned points to extreme dysfunction. It also points to the outsized influence the finance industries and the public sector have over our decisions. What was incredible was Cambria. Here he had been affecting to be for free enterprise. And look at the guy. 700billion dolllars of theft? Sure. No problem? As long as its no banker left behind welfarism. The sense of entitlement that these guys who have been positioned to make easy money is just incredible. This is why they had no time for growth-deflation. The stability that it would bring is something that is not part of their plans.

    That this public heist, which will do incalculable economic damage, is going ahead regardless of its harm and injustice means that things are seriously wrong.

    Now do you get that?

    I guess you DON’T.

    I guess you just have no fucking idea about how a decent society is supposed to act.

  8. Mr Bird,

    The greatest heist in history has gone down now. The president could barely wait till congress voted to sign it. Paulson is Ronnie Biggs without the charm.

  9. Thats very sad news. Who knows what the market could have done with these securities if the banks had all gone belly up. Perhaps they may have in some cases been bought by the insolvent owners of the houses for 30c on the dollar. A person with deep pockets might have bought a bunch all in the same area and managed them to get the home-owner a bit of a break but make himself a tidy profit as well. We will never know the free market solution had all the banks been liquidated but what we can be sure of is it would have lead to less overall debt whereas the Ronnie Paulson Biggs solution is a solution for increasing both debt and currency debasement and locking in banking dysfunction.

  10. well graeme, it looks like the people have spoken through their legislators. that’s democracy

  11. No you are lying. Thats why it was a heist. The people did speak. They said “NO” and “HELL NO”. If you look at the videos of members that voted against this they will tell you that only banking industry types wanted this act of blatant stealing and crony-communist intervention to go ahead.

    This is the opposite of democracy. This is basically a minority of exploiters that decided they wanted to steal this money, and were successful at it. Hence we have to recalculate how change can be accomplished knowing that these guys can so blatantly steal, in direct opposition to the wishes and economic interests of the public.

  12. Good piece, Graeme. Work has block 99% of the internet, the only political blogs I can read are Norton’s and Quigging’s. Terje is on JQ’s wondering why ‘libertarians’ dont call themselves ‘libertarian social democrates’, it’s doing my head in. There simply aren’t enough liberarian blogs backing sound money and calling for reductions in the public sector.

  13. Terje thinks you can keep cutting taxes without cutting services. Thats a glass key that you can do once and get away with but its really about mass-sackings of taxeaters. Thats what we ought to be after. And we can get a lot more manhours from people who used to work in finance if we go to hard-money. Except of course if the move towards hard-money winds up making us the worlds financial centre. Which going on the experience of little Holland is not entirely out of the question.

  14. alright Graeme let me take you seriously for once.

    A lot of economists oppose the bailout but they don’t necessarily oppose doing something. They’re opposed to the form the intervention may take, This includes many libertarian economists like Tyler Cowen at Marginal Revolution who opposes the bailout method but is in favour of recapitalising the banks.

    Reason? YOU DON’T CUT OFF YOUR NOSE TO SPITE YOUR FACE. Not unless you’re a mad Misesian ideologue. Yes doing something creates moral hazard. Yes we want to minimise moral hazard in the long run. Yes regulations including pressure to lend to poor risks like blacks had a part in creating the crisis. So yes the current system is imperfect and these regulatory distortions must go.

    But in the meantime and in the real world, non-ideologue libertarians think that there’s no point risking a world depression and widespread economic disaster for ideological purity. Something may have to be done for now THEN people might want to take a look at the current system and scrap all the stupid stuff like forcing banks to lend to poor blacks and the like.

    In this context maybe the bailout is a bad implementation of the something that needs to be done but it’s not in the scheme of things worse or ,more outrageous than throwing money at bludgers which is a regular occurence.

  15. PS read JC’s excellent posts on Thoughts on Freedom on this

  16. I thought the bailouts were a bad idea at first instinctively but JC has changed my mind on this

  17. Mate you have it all wrong. We don’t need their ponzi-money when we can create all the cash-money that we want. So it doesn’t matter if all the banks go belly up. If the monetary base is handled correctly under that circumstance all the banks could go belly up and we all just throw a world street party.

    Any economist that wants to bail them out isn’t a serious economist. And the idea that the government could come up with some perfect policy through the meetings process they have is just silly.

    We know what to do because we know what a post-recession economy looks like. It looks like a place with higher savings rates, less ponzi-money, more cash money, higher cash levels, less debt.

    So the idea was to let the banks fail, release as much extra cash as you feel you need to, write off all the debt, and get as close to where you want to be heading as you can as quickly as possible.

    There are only three tools necessary for managing this. 1. The monetary base 2. The reserve asset ratio. 3. A bit of fiddling with bankruptcy laws.

    During the Volcker crunch about 5000 banks went to the wall, about 100 billion in debts were liquidated and savings rates went up to maybe 15%. It is this reduction in debt, and increase in savings rates (as well as an increase in cash balances) that sets us up for an entrepreneurial and non-inflationary boom. Which Volcker set up about 50% of what you would want but good enough for an example.

    The Paulson measures are in the exact wrong direction. He ought to charging round looking for every single saved dollar he can find. Any dollar not spent by government or in consumption is what he ought to be after. Everyone simultaneously trying to pay off all debts and build their cash balances and savings. And if he has to release more cash to get over this period more quickly well fine. And if in the end of the process he has to whack on a reserve asset ratio to stop inflation again thats fine also.

    But Paulson is moving in the opposite direction to less spending and less debt. This is because he doesn’t understand economics.

  18. JC’s posts on this are crap. I’ve made comments about this but Humphreys has only let a few of them through.

    You were won over when JC didn’t come up with an argument.

    Its critical to let these guys fail so that we can have banks that go in for wealth creation. The other thing is this was the one chance they had to reduce American debt. If they had all gone belly up then NAB would have lost a billion. I wouldn’t have lost anything. But all over the world their would have been people having to cop it because the banks that owed them the money would have not been there.

    It would have been magnificent. Now the Americans will deal with their debts via currency debasement. Which will only make things worse.

    There are other bad things going on. Massive shortages in energy on the horizon. And we needed a stripped-down lean and functioning financial sector to be able to cope with these high dramas.

  19. Now the Americans will deal with their debts via currency debasement. Which will only make things worse.

    I’m no economist Birdy but I couldn’t agree more–it’s theft, (and the latest vote succeeded because they dressed it up with another 100 billion or so of pork btw).

    Plus I’m reading that $700 billion will not be enough–there’s trillions that disappeared when the property bubble burst. And re debasement: the bailout funds will be borrowed from China among others, talk about putting a nation’s balls further and irretrievably onto the chopping block!

    If they must “blow” the money, rather than saving the shysters on Wall Street, it would arguably be less a moral hazard perhaps to give it to the Joe Sixpacks in the form of housing vouchers. That could even allow some renters to become homeowners, which would be highly beneficial considering the estimates of 6.5 million foreclosures in the next 5 years along with god knows how many empty houses now.

    (I know that’s overly a simplistic solution and anathema to libertarians–but if they’re gonna be socialists with a huge wad of dough, let them give it to middle America, not the Geckos and their political fuck mates, who screwed it up more than middle America did, [eg the latter who foolishly accepted offers of no deposit loans in the mistaken belief the market could never go down.] )

    The main justification of the bailout was to restore confidence, but that can never be guaranteed– it’s not a question of liquidity as I understand it, so much as it’s inter bank lending trust which flows through to all borrowers, especially affecting small business. And btw, can anybody explain to a non-economist those exotic debt instruments cooked up in the last decade?

    Recession it is, with or without bailout. Maybe a depression methinks.

  20. Those responsible for this travesty should be placed up against a wall and shot.

  21. Graeme:

    It is indeed theft. Nothing but theft. The market saw it as theft …. and has reacted accordingly. Any alleged “stability” it would bring would evaporate as soon as the first rays of the sun struck it.

    What was really needed was reform, radical reform, reform without open-slather plundering of the American people yet again.

    The Great Republic is dying …. because the new Aristocrats have won.

    They won because America abandoned the republican system chosen by its founders and reverted to a type of monarchy, the worst type..

    .

    Jason Soon:

    You said

    well graeme, it looks like the people have spoken through their legislators. that’s democracy

    Well, not quite. Apparently, in addition to the usual arm-twisting over re-election to get resistent congressmen into line, there was also the threat to impose martial law if BailOut MkII didn’t go through. Perhaps we could call that Democracy At The Point Of A Gun.

  22. “If they must “blow” the money, rather than saving the shysters on Wall Street, it would arguably be less a moral hazard perhaps to give it to the Joe Sixpacks in the form of housing vouchers. That could even allow some renters to become homeowners, which would be highly beneficial considering the estimates of 6.5 million foreclosures in the next 5 years along with god knows how many empty houses now.”

    Well mild influenza is certainly better than malaria. Yes Peter you are quite right. For one thing shoring up the direct underlying asset is far more sensible than shoring up derivative paper. And ethically speaking, directly helping poor and struggling homeowners beats helping millionaire bankers.

    But really the whole idea is to find any spending cuts that can be had. So while I agree with you that shoring up the underlying asset makes much more sense neither makes a lot of sense and we just need as many people declaring bankruptcy and as many banks going under as can be had.

    Also you are right about the 700 billion of thieving not being enough to bail the banks out. They have trillions of these derivatives and things.

    If Paulson was a serious treasury secretary and not a thief he would be charging about demanding liquidations and spending cuts. Spending cuts… state local federal and consumer…

    But he’s going the other way with it. With his stimulus packages, mortgage bailouts, no banker left behind theft and its never going to end.

  23. terrible stuff

    http://andrewsullivan.theatlantic.com/the_daily_dish/2008/10/memories.html

  24. Yeah well its a disaster Jason. Its just not funny anymore. It would not have happened under 100% backed commodity money…. And it would not happen under growth-deflation.

    You cannot pretend Jason that this socialist money is alright. Why do you think its OK? On the grounds that we got ranked in the free enterprise stakes or something?

    This is a fucking disgrace.

    And its only people like you that keep this myth going that this outrage has anything to do with capitalism.

    Thanks for the tape.

    I’m fucking disgusted.

    I’m like the man that shows up at the fancy dress party without a costume and so plunges his penis into the custard.

    Thats how fucking disgusted I am.


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