Hilarious. Joseph Cambria, is now authoritatively telling civilians that banks stealing off them comes as some sort of bargain.
“Closer to home. JC:
You said the other night that whatever bail-out comes would be cheaper than going to the Drachma. Does that mean that the Euro is unwindable and fiscal integration inevitable?
Second: I really don’t understand how all these banks are voluntarily accepting a write-down of their (= yours and mine) wealth. What is going on?
I respect your opinions..
The backdrop of this is that the banks have been on an orgy of wealth destruction that has picked up apace in the new century. When you divert scarce capital resources away from business spending and instead to lending to governments, thats wealth destruction. The reason is that borrowed money ruins democratic government prioritisation. We are or should be trying to catch up with our infrastructure, look after a few older people just on humanitarian grounds, head off geopolitical threats with a great margin of safety, deal with international problems with honour and fairness, and so forth. And it takes a great deal of ruthlessness and prioritisation to be able to get this all done. As soon as the bankers sidle up to government (MEANING SPECIFIC INDIVIDUALS WHO HAVE NO RIGHT TO INDEBT ANYONE) and encourage them to borrow, that need for prioritisation and financial triage doesn’t get done. So we wind up retaining government departments that ought to be closed down. The Greeks wind up retaining constitutional amendments that make sound budgeting untenable, and in our case our guys go in for wild spending schemes like the NBN and wasting huge resources on science-fiction fantasies, like the global warming fraud.
Very little of this would be tried on in the democratic setup were it not for excess monetary growth and government borrowing and the banking cartel is the cause of both.
When banks practice new money creation they are extorting that value off the rest of society. Which would be bad enough even if they were then using those new loans to create new wealth, when looking at the micro situation. That is to say if bankers were still able to create new money, and they took those resources and lent them for the purpose of BUSINESS SPENDING, while this wouldn’t lead to greater wealth creation in the macro sense, or for those true believers…… while it could just possibly lead to a tiny bit of wealth creation if the bankers had exquisite wisdom, and foresight …. the reality is that when bankers go in for new money creation, most of these capital resources are set aside for wealth destruction. Money goes to subsidise bad government budgeting, consumption spending (which raises the cost of consumer goods for everyone) and various bubbles …. which misallocates resources and leads to unemployment down the track.
No philosopher of ethics has ever explained why a banking system, which extorts value from the community, ought to be paid back on its loans, by taxpayers who did not sign up for those loans. To do so is highly unethical. First the incompetent and callous bankers destroy wealth by loaning to the government in the first place. Then if the government pays these same incompetent wealth destroyers back, this amounts to more wealth destruction, since this is yet more resources, going to people who will misuse them.
Any competent banker, would have to know that funding Greek deficits was destroying the wealth of the average Joe, who in no way asked for these guys to extort resources off him. The Greeks had a constitutional amendment that made it next to impossible to sack public servants. Every dollar you lend to such a setup is a dollars worth of capital resources down the poo-hole. The bankers must take the loss for that, since the Greeks aren’t going to run surpluses until the bankers stop funding their deficits.
So lets go over this question again:
“Second: I really don’t understand how all these banks are voluntarily accepting a write-down of their (= yours and mine) wealth. What is going on?”
There are a couple of ways to answer this:
1. In doing so they are gaining a trillion dollar package in return for an 150 billion dollar write down. 1000 billion minus 150 billion equals 850 billion. So on some assumptions thats a 850 billion dollar heist? Given that we know they are evil bastards, WHY WOULDN’T THEY ACCEPT THIS? But the reality is that Greece is not paying any of this money back. Greece is not running surpluses, and no-one expects them too. So on some assumptions its a full-blown one trillion dollar heist. On other assumptions its the banks lending the governments one trillion dollars at high interest and the government lending that money back to the banks at low interest. The reality will be a combination of interest rate subsidy and outright resources transfer to the banks, and they will later arrange another, and another, and another, and this is quite apart from the daily interest rate subsidy they get, and the daily money creation benefit they have appropriated to themselves.
2. The banking cartel extorted the value from the community and pissed it away in an orgy of wealth destruction. Supposing they expected to be paid back!!!!!!! Well then Greece would have to run surpluses. Therefore any meetings, conferences, agreements, or dog-and-pony shows, that don’t wind up with Greeks running surpluses, are conferences that have decided to steal off non-Greeks to subsidise banker cartel wealth destruction. This is undeniable in logic.
But the ethical reality is that the Greeks ought not pay these lunatics back. That is only going to expand a wealth-destroying cartel further. So the answer is to get into surplus and immediately default. The surplus can be used to pay back locals, on purely compassionate grounds, up to some modest level, so as not to be paying out on very wealthy people.
Now imagine the Greek democratic leader doing that? So here he is and he’s going to change the constitutional amendment, sack most of the public servants, get into surplus, then default when the entire banker-influenced and controlled media would skin him alive for it. He’s not going to do that. He’d be worried that he would be assassinated if he did. No that lot are going to keep running deficits until they are totally impoverished, or until the bankers stop the wealth destruction of lending them money.
What was achieved then by this trillion dollars? Thats a trillion dollars down the drain but if you are a banker, and you are 55 or so, and you negotiated this evil deal, that could be 10 million a year in salaries, and perhaps this trillion won’t run out until after you are retired, or you are filthy rich beyond your wildest dreams. Under no circumstances has anything been achieved aside from wealth destruction by this deal.
“You said the other night that whatever bail-out comes would be cheaper than going to the Drachma. Does that mean that the Euro is unwindable and fiscal integration inevitable?”
Well he’s a liar. He’s a moron. If the Greeks got back the drachma, took control of their monetary and banking system, had 100% backing so the government got the seignorage of the entire money supply and not just the monetary base, and defaulted on all debts owed to foreign banks and governments, the Greeks would be better off, as would the rest of Europe. The cycle of wealth destruction would be broken.
No country who is not peopled by sexual masochists who like being pissed on, and people that are by the nature more happy being in thrall to international bankers, can tolerate a fiat currency NOT THEIR OWN. Fiat AS currency is fine as long as:
1. its 100% backed
2. the government is never allowed to borrow
3. The people are also using a proportion of their money supply on currencies based around 100% commodity backing, to stop the government abusing its fiat money position.
So you can have your own fiat currency, under these conditions, but you cannot have someone else’s. Ask yourself where Cambria is coming up with this bullshit, lies and nonsense? Did he give you a clear answer to your question? Did he support what he was saying? He’s full of shit I tell you. He’ll do anything to forward the interests of the banker elite against the interests of humanity. You can count on it on all occasions.