Posted by: graemebird | October 13, 2008

Kevin Rudd Guaranteeing Banks Ponzi-Loans.

Kevvie reckons he’s doing us a favour guaranteeing our deposits. For starters he’s doing no such thing. I can guarantee my own deposit right now by going down to the bank and pulling my cash out. What he is doing instead is guaranteeing the banks ponzi-loans. Why doesn’t he guarantee my loan instead so I can borrow more for shares?

Not only is he going to guarantee their ponzi-loans but the government also shields these guys from competition and subsidises them by giving them loans at rates that none of us can ever get.

Why won’t he give ME loans at lower than market rates. That way I can refinance my house and immediately increase my disposable income and net wealth. As well as my borrowing capacity.

The point is that this can never be capitalism if the banks cannot stand on their own. Any banking bigshot is therefore just a welfare queen and these guys are stealing off us.

Its therefore priviledging these guys and therefore favouratism and nothing good can come of it.

Now there are some small banks and many foreign banks that actually have to work hard to entice us to save with them. Why would they need to do this if Kevvie will guarantee all their ponzi-loans? That means that we will have foreigners more able to steal off us as well in a coming orgy of money-creation.

It was always the case that these deposits were implicitly backed by the printing press but this was an indirect thing. Now if Kevvie guarantees these deposits, without putting a time-line on it, there is no disencentive to these guys creating new money and therefore stealing off us.

So why is he doing this? Well its because he does not know what he is doing. Can we get someone who actually knows about these matters to develop policy? Naturally banker (and therefore welfare queen) Malcolm Turnbull is enthusiastically supporting kevvie on this one.

So when will be free of the banking system stealing off us? I don’t think its an unreasonable requirement for this to stop.

All Kevvie is telling me is that we have decided, knowingly or not, to join a long-term INFLATIONARY-DEPRESSION along with the Americans, rather than go it alone and put up with a shorter-term deflationary-depression, if we had decided to go with rational and not irrational policy.

So all Kevvie is telling me is that I was right to buy the house afterall. And that I better jump back in the market sooner rather than later. Now thats nice to know on one level. But what would be nicer to know was Kevvie guaranteeing us that the banks will not be able to steal from us from here on in, and that we were going to have a functioning price system and loanable funds market…….. to help us through the energy and shortage crises that are descending upon us.


  1. No you are lying. I’ve heard of the bank run. No lying on this forum Jason.

  2. 10
    “JC. Says:
    October 13th, 2008 at 12:45 pm

    Stop it with the stawmen bullshit. You’re trying tyat crap on every thread.

    this is what you wrote and what I responded to. Live with it.

    Since the 1980’s we have been encouraged to live in debt.

    As I said, the vast number of people pay back debt.”

    So what is your point Cambria you fucking idiot? You never make a point any more. I suppose from a welfare-queen bankers point of view the only problem with debt is if you pay the banks back and the banks themselves don’t need to pay their own way.

    Almost no-one woujld be able to pay off their debts if the money-creation stopped. So all this debt addicts us to money-creation and therefore a bad monetary system and economy.

  3. I don’t quite know what Jason was saying there. Is he claiming that Kevvie ISN’T guaranteeing the banks ponzi-loans?

    Is he therefore claiming this is not favouratism to the banks. Not socialism or special priviledges?

  4. And here we have another welfare queen. Also in favour of Kevvie guaranteeing the banks ponzi-loans:

    “pommygranate Says:
    October 13th, 2008 at 12:53 pm

    i actually think that Rudd and Swan did the right thing by guaranteeing bank deposits and helping the banks raise wholesale funding last night. once Ireland had set this particular wheel in motion, there was no stopping it. in effect, Rudd had no choice.

    but as Terje’s post on the ALS last week demonstrates, once financial institutions are owned by the govt, they no longer operate to maximise profitability but to implement social policy.”

    So the banks can make as many ponzi-loans as they want and we are supposed to guarantee this currency debasement with the printing press if ever the new ponzi-money begins to collapse.

    Fantastic thinking pommy. Give that welfare recipient some share appreciation and an honorary economics degree.

  5. So Jason. Now that you have shown yourself in favour of all these bailouts, what has happened to your lying support of FRAUD-BANKING.

    Thats all been shown to be an idiotic lie right now hasn’t it? At least Humphreys came good on that committment. He said add cash but let the banks fail.

  6. This constant lying on the part of Soon and others only means that they never learn any fucking thing.

    “Jason Soon Says:
    October 13th, 2008 at 12:35 pm
    Our economics genius Graeme Bird has never heard of a bank run apparently

    Kevvie reckons he’s doing us a favour guaranteeing our deposits. For starters he’s doing no such thing. I can guarantee my own deposit right now by going down to the bank and pulling my cash out. ”

    Why would he lie like that? He just fucking lying. He knows full well that I’ve heard of bank runs. Having talked about bank runs often and for years on his own blog.

    So he’s just lying.

    Now the way to get reform is to add extra cash to the system, slowly increase the reserve asset ratio, and when there is an 100% reserve asset ratio banks can go broke without a bank run. If there is enough cash in the system and its deregulated banks have to sell of branches to guarantee deposits. Or they go to bankruptcy court. All their assets are sold off, and the deposits are returned that way, which is fine if enough new cash has been produced to replace the ponzi-money that has been destroyed in the bank run.

    So Jason Soon is just lying again. Which is why his original lying post was wiped. Since he and others have been warned many times that lying posts are not allowed on this forum.

    Apparently the crony communist appears to be justifying bank welfarism and the subsidy from the poor to the rich on the basis of the bank run.

    But it is the banks that cause the bank run by making fraudulent loans with money they don’t have.

  7. Even before we had these problems. My solution was always to slowly bring up the reserve asset ratio as we were adding enough cash to not make this too deflationary.

    Now Jason knows that. But if you have stupid unsupportable ideas than I guess you just have to keep lying to justify them.

  8. Its hard to anticipate Jason’s argument. Since he’s gutless and he never makes the argument.

    But is Jason in fact saying that he’s so fucking stupid and gutless that he reckons we have to be in permanent bondage to the banks OR THEY WILL THREATEN US WITH THEIR OWN FAILURE?

    Is that the Jason Soon argument? Well give that man an honorary economics degree. Since his first degree was utterly useless.

    In fact its impossible to put words in his mouth. Because he doesn’t have an argument he was just lying.

  9. Birdie:

    Didn’t you take a loan out with a fractional reserve bank to buy a home? Doesn’t that make you a macromancer?

  10. No not at all. I’ve got to work within the system that is given to me. The bank is the one that made a loan out of money they don’t have. But then again they have to work within the system they are given.

    The criminals are the ones who understand the system and do not wish to change it.

    Like all ponzi-schemes this system works at first and then starts costing people more and more so long as its kept going.

  11. Now that the gold dealers are involved in a ponzi-scheme and the share sellers are involved in a ponzi-scheme the thing is if they are all forced to settle they would all go broke. Just like if the banks are forced to settle their debts they would all go broke.

    But to allow this to continue is to destroy our economy or at least leave us all with a great burden. In fact it will quite literally destroy us because the chain letter either runs out of chain or it gets bigger.

    So unless you have turned psychopath you have to be thinking in favour of mass-bankruptcies or a good phase-out plan.

    You have decided in favour of being a psychopath. You neither want a phase-out nor do you want to crash these guys. Rather you want to keep this going by stealing off the rest of us.

    You are just a fucking prick Cambria. Justify your postion you prick or fucking back down and repent.

    Now I know that you Joseph Cambria are involved in Naked short selling. You should clearly want a phase-out in this illegality. So that everyone can settle. You are going to wind up in fucking jail if you don’t get yourself behind some sort of phase-out and settling.

    There is no use making share-counterfeiting LEGAL as you and Reynolds have contended. Thats just lunatic talk. So there are two ways to go about this. Everyone adopts a phase-out plan and gets to settle and then no-one practices fractional reserve ever again. And we have all these ways of making sure you guys never do it.

    Or we bankrupt a bunch of you. Haul a bunch of you before court. Humiliate you. Sell of all your assets. Generally make scapegoats of you.

    So which do you think is the best way of going about it.

    Because the fact is we cannot put up with growing ponzi schemes and the destruction of our pricing system.

  12. Bird

    You did buy a house with a mortgage, right? Yes or no?

  13. Fuck you Cambria. You are up to your eyeballs in it. Or else you wouldn’t have both approved of the obvious fraud and at the same time claimed it wasn’t going on on account of it being illegal.

    Now are you going to change your mind about this being a damanging practice…. obviously fraudulent. Because you and Reynolds have tried to have it both ways. Tried to say that this obvious share counterfeiting was just fine and at the same time that no-one was doing it.

  14. The fact is that the Americans are up to their eyeballs in naked shorts. If they are clearing them right now that is hardly getting them off the hook for this criminal behaviour. Everyone can pass the buck back to their broker. But anyone of good will can at least come clean to the public that the system is fundamentally dirty and broken.

  15. I have a mortgage right now. Dirty money you might say. But I’m at least advocating to make the system clean.

    If you are shorting American shares you are involved in this scam for sure. Just like I have a mortgage. You could at least make it clear that the system is dirty and that it ought to be made clean.

  16. See you claim you don’t want a phase out. You claim you don’t want to clean it up. So you are complicit in a way that I am not by simply working within the system and taking a mortgage.

    Sort your shit out Cambria. You bought and sold gold that isn’t there. Surely you would want that system cleaned up. Given that the waiting time of three months for gold now.

    But you don’t say that. You say that share counterfeiting is a fine and good thing. You and Reynolds. You say that the same matured racket in fractional reserve banking is OK. This is deeply suspicious behaviour. And it could bring you down if you act so damned suspicious.

    You reckon you weren’t part of this racket in Citibank in 2002.

    You have to be tripping fella. Don’t lie to me. You insult my intelligence.

  17. Are you in favour of naked shorting or not? You keep claiming its alright. That bank bailouts are alright. That Paulson and the others are OK to run a naked short operation and no convictions need to be made.

    Is this still your position or not?

  18. See your position is like when the Serbians were accused of raping Muslim women. The response was that these women were too ugly and any way they weren’t doing it.

    You have bought and sold ponzi-gold right? You just said so at Catallaxy. You said most gold is paper-gold. That is to say ponzi-gold.

    So if you have bought American shares you must know that you have bought and sold ponzi-shares. And if you have short-sold them clearly you must know that this was naked shorting.

    You blame your broker if you want to and he will blame someone else.

  19. I’ll blame my bank. And you can blame your broker. Who will blame someone else. But don’t be bullshitting me that you have never been involved in it.

  20. “JC. Says:
    October 13th, 2008 at 4:42 pm

    Margin calls generally are pretty robust, so i don’t see that as a problem. Nearly all gold is paper gold.

    Physical gold is simultaneous exchange to a large degree when delievery takes places….. COD

    What I think will happen is that the selling is slowly drying up. All we need for a good rally is a lack of selling and more buying interest come in and the prices go up.

    Don’t know if this is the bottom or not, however there are serious bargains around especially if I’m right and credit spreads come down because of the socialisation of the banking system.”

    Thats you Cambria. NEARLY ALL GOLD IS PAPER GOLD. You said it yourself. I’m in the fractional reserve racket. I took a lone. You buy and sell ponzi-Gold and you know about that.

    You also know that you have bought and sold PONZI-shares. Which means you know that you’ve borrowed phantom shares to sell them.

    So don’t try and bullshit me Cambria because you’ll come off second best.

  21. “JC. Says:
    October 13th, 2008 at 4:24 pm
    It’s not a question of survival of the fittest. one simply needs to read and analyze the changes going on and go from there.

    I think the socialization of the banking system is the greatest gift we could be given by the government as it may tends to “normalize” credit spreads and allow people to take advantage of the actions. Add in a good old fashioned monetary expansion ans we’re off to the races again.”

    “I think the socialization of the banking system is the greatest gift we could be given by the government as it may tends to “normalize” credit spreads and allow people to take advantage of the actions.”

    Its not a gift Cambria its further theft. They cannot give us anything they can only take it away.

    Banks have to live within their spreads and not live off counterfeiting. So the spreads have to widen not narrow.

    Gold suppliers need to live off their margins and not off the creation of ponzi-paper-gold. So they have to be bankrupt or go to jail or the spreads have to widen and the price of gold has to go up.

    Share brokers have to live of their margins and not live off counterfeiting shares. So the shares have to be cleared, their margins have to widen or they have to be bankrupted and some of them jailed.

    So smaller spreads are not good if they mean corrupt dealings and bailouts.

    Communist jerk.

  22. […] Read the rest here: Kevin Rudd Guaranteeing Banks Ponzi-Loans. […]

  23. Dude what’s the gold standard/anti-fractional reserve textbook? Is it a trade secret? Why won’t anyone bloody well tell me?

  24. “He doesn’t even understand what short selling is about.”

    See that Adrien? Thats Cambria lying. He’s a fucking liar. A desperate liar. And he knows damn well that I know what short-selling is and he’s just lying.

    Thats why they won’t give you a textbook against fractional reserve. Its a corrupting influence and it makes compulsive liars out of everyone who get involved with it.

    You can get “The Mystery Of Banking” By Murray Rothbard free online.

    And if you dig into banking history you will find out that this fractional reserve is the cause of all the recessions and dislocations that you have in capitalism.

    But its far worse now. Because its spread TO FUCKING EVERYTHING. Which is what this derivatives craze is really about. Derivatives are made at the volume they are to cover for both fractional reserve EVERYTHING and the problems this causes.

  25. Cheers I thought Rothbard’s the man. There seems to be pro and anti Rothbard factions in the libertaraian movement.
    But at least he writes well. Some of the Economics people – Jay-sus!

  26. Yeah well you get real and royal libertarians. You get crony-socialist hangers on. But capitalism properly understood is really for the little-guy and the people who have a strong sense of fairness.

    Look at Cambria. Supposed libertarian. Where is he now? Bailout thieving defendent and supporter of crony-socialism in money.

    See all those derivatives. They provide phoney insurance thats a negative sum game. Honest storage, monetized commodities and clear property rights would do the job that derivatives pretend to do and a great deal more cheaply.

  27. “pete m Says:
    October 13th, 2008 at 5:54 pm
    The last thing a “Chinese” spy in USA would do is travel to China frequently. I guess that massive trading account between the 2 countries had nothing to do with it.”

    See what I was saying about compulsive lying Adrien. This idiot is now claiming I said that Paulson was a Chinese spy.

    For fucksakes what an assclown. Nobody has that Marxist allegiance to the Chinese the way they used to have for the Soviets. Where did they fly this nutball in from?

  28. pommygranate reckons that if Kevvie hadn’t guaranteed all the banks ponzi-loans that there would have been a run on the banks this very morning.

    I mean we are dealing with complete fuckwits here. But who cares anyway? If these guys go bankrupt we sell of their assets and there is more resources in the market.

    It was a ridiculous idea that pommy was putting about but so what if it was true?

    Lets go over it again for the very fucking stupid. All that needs to be done, all that ever needed to be done, was to add cash and slowly raise the reserve asset ratio?

    Where does all this stealing and the backing of all ponzi-loans come into it?

    You won’t get any answer from idiots like pommygranite or Cambria!!!!

    They are after the stealing. They are not interested in good policy.

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