Saturday, October 27, 2007
The Federal Reserve is a Symptom - Not The Disease
What is the difference between private credit and public credit?
And the so called sub prime mortgage crisis is not a cause...it's just an effect...The real estate bubble has been inflating for 36 years and the house sales boom has been going for 16 years...There was no commercial banking system in Rome...and yet it inflated to maximum potential and imploded...
Ultimately you have to abolish civilization in the end to get back what you have lost...Start over from square one...
Reguardless...Allow me to take more power from another than I give and eventually I will concentrate the power from the hands of the many into the hands of the few or one...And then they who have the power will make the rules...
Instead of power...put in Gold, money, food...etc.
Any system where anyone is allowed to take more than they give can be taken over and managed by those who have concentrated the required amount of power to accomplish the take over.
You need employment...I'll give you a job and keep you employed as long as you allow me to take more from you than I give back...You work for 8 hours a day 5 days a week supplying me with $20 an hour and I give you $9 an hour compensation...Imagine having 1000's of employees...
Where's the remedy for that? Where's the remedy that allows escape from the "I want to be a richman" tax.
There isn't...Or it would have been revealed in the previous 3 threads...
The "I want to be a richman" tax is a cause...Everything else is an effect or symptom...And treating symptoms does not cure anything...The FEDERAL RESERVE is a symptom...not the disease.
But as they say...Ignorance is bliss...but it is not the cure.
The bottom will always support the top...Certainly you don't think that 20,000 Generals are going to be commanded to run into a hail of lead by a handful of Privates or that one employer will work for minimum wage and supply $100,000/year incomes to 100 employees...Or that the top of the pyramid will support the bottom...
I have yet to see the remedy...
And it really has nothing to do with the creation out of thin air of money...
I need 100 silver coins...But I don't have any...I'm the bottom...So I ask the top for a loan...The top says sure I'll help you out friend...as long as you agree to give me back more silver coins than I give you...
Taking more than you give is the cause...Inflation of demand is the effect.
Any increase in demand within a system spreads out into the whole system...If the demand by the top for lets say more silver coins than currently exist then it's up to the silver mines to supply that demand and if the demand from the top is greater than the supply the silver mines are producing...There will be no way that the bottom can supply the top with what it is demanding...The current system is the remedy to that effect of the cause.
But the current system is also just an effect...It solves the problem of the maximum potential of the previous system but does not solve the problem of it's own maximum potential.
Unfortunately there is no way to stop a cause by treating effects...In this case you either stop taking more than you give or continue until the bottom is sucked dry and there is nothing left to take...
Once your system depends upon cutting trees down faster than they regrow...It's doomed...
That is what the top do...demand trees to be cut down faster and faster...and hire more and more from the bottom to cut cut cut...to pay the "I want to be a richman" tax
Abolish everything except the demand by the top for more than they give and you will be accomplishing zero...
The universe will continue to function as it's always functioned regardless of how you attempt to manipulate it...It's governed by LAW that can not be made or broken...It's not governed by rules that can be made or broken...
It's governed by Truth that can not be made or broken...It's not governed by lies that can be made or broken...
Ignorance of the law excuses no man: Not that all men know the law, but because 'tis an excuse every man will plead, and no man can tell how to refute him.
-John Selden
English antiquarian & jurist (1584 - 1654)
I'll clean it up a bit...
Ignorance of truth excuses no man: Not that all men know truth, but because it is an excuse every man will plead, and no man can tell how to refute him.
Imperialism sounds malevolent...that's why it was changed to Globalism...which is nice sounding especially with the attached benevolent sales pitch...
Remedy sounds nice too especially with the attached benevolent sales pitch...
There is no prudent way to take more than you give...but there are methods to sustain it...until of course the bottom is sucked dry supporting the top...then it's game over...
What is Marc Faber saying? That he's sick of waiting around to die and wants to die as quickly as possible and it's all these bailouts keeping him alive?
If the bottom stopped giving the top more (bailout) than the top gives back to the bottom...Marc Faber would have to find a new source of income...
Meticulously planned to obtain a profit...What do you expect people to do?
How is an employer going to sustain an enterprise if they pay their employees more than the employees produce?
And once the employees can't or refuse to produce enough...then they transform from assets into liabilities...
from friends into enemies...Liabilities that need to be liquidated...enemies that need to be annhiliated...
It's assets and liabilities...As soon as you become a liability you will be liquidated...one way or the other...
There is no escape...Your ability to obtain enough food and water to sustain your existance is an asset...If you can not obtain enough food and water to sustain your existance then that is a liability...
Ignorance is a liability...Ignorance is not an asset...
And the price bubble within the 36 year old price bubble appears to be inflating less than previous inflation (deflating)
Rough estimate...at the height...the above chart is per month...in 2005 1.283 million houses were sold in the USA at a median price of around $233,000
Let's say the down payment on average was 5% or $11,650 so $221,350 needed to be manufactured to buy each house sold...Or around 284 Billion dollars of new money...
Now the house sales are on track by the end of the year to be around 891,000 with a median price of around the same since the average median price has not really collapsed...So the new money entering the system is 197 Billion dollars...about a 30% drop in the amount of new money flooding into the US economy from real estate...
The above is only houses...It does not include apartments/condos or industrial/commercial real estate...But money from the sale of homes flooding into the economy supports industrial/commercial real estate expansion...
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