Central Banks Fail
All of US
The Bank of Japan lowered their interest rate to zero this week to spur the economy! Real estate prices in Japan have soared in recent years. Public works projects have dominated the Japanese economy & will take many years to repay. Consumers have stopped spending! Is this the Bank of Japan's last stand? The party is over!
What effect will this have on the U.S. & the world? What effect will this have on the Japanese exports? IFF Toyota or Nissan aren't required to pay interest on borrowed money are these companies operating with an distinct advantage over the American manufacturers which will may eventally make our industry extinct? What does this mean for other U.S. industries that compete with the Japanese? How long will we allow the gutting of America to continue? Why is America's manufacturing base being gutted? Who gains & who loses by these actions?
How does Boeing compete with the government subsidized Airbus of Europe? In a world where there is free trade, not fair trade have central banks seen their day? Why do we pay interest to central banks?
It is my opinion that central banks are evil & the men who run them are no better at understanding the fundamentals of business, than the businessmen who control the industry! We need wealth based monetary policies that reward people for their efforts, not a fiat debt based monetary policy that creates money out of thin air! The Federal Reserve Bank is Unconstitutional & any politician that does not support the elimination of the Fed is a traitor, liar & a thief!
IFF the markets continue their downward spiral it is obvious that the policies of the Federal Reserve have destroyed this economy & society! Again who gains & who loses? Interest is absurd & it only empowers the banksters! I suggest fees for services not interest as payment to the banksters!
On the first page in the Purpose of the Federal Reserve the Fed offers a disclaimer explaining that the data they receive is outdated & the best they can be expected to do is guess ! These criminals use words (banking terminology) to mask or hide the facts of their fraud! I demand gold & silver (honest money) be returned to the economies of the world! The banksters have participated in destroying our lives for too long! Banksters had accomplices! These accomplices are the attorneys at law, who are liars, thieves, & traitors.
This is a fine mess we find ourselves in!
Study the Constitution for the answers & hold all politicians' feet to the flames of liberty!
By G-d, we will be a nation of laws, not a nation of lies
We can be free or dumb! Let's review a few words from some great men!
"I believe that banking institutions are more dangerous to our liberties than standing armies If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks & corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks & restored to the people, to whom it properly belongs." The Debate over the Recharter of the Bank Bill, (1809) Thomas Jefferson
"You seem...to consider the judges as the ultimate arbiters of all Constitutional questions: a very dangerous doctrine indeed, & 1, which would place US under the despotism of an oligarchy. Our judges are as honest as other men, & not more so. They have, with others, the same passions for party, for power, & the privilege of their corps. ...And their power (is) the more dangerous, as they are in office for life & not responsible, as the other functionaries are, to the elective control. The Constitution has erected no such single tribunal, knowing that to whatever hands confided, with the corruption of time & party, its members would become despots." Thomas Jefferson
"How on earth were so many Americans, especially the lawyers we now call judges, convinced, that some of the planks of the Bill of Rights don't mean what they say including the one that guarantees US. 'The right of the people to be secure in their persons, houses, papers, & effects, against unreasonable searches & seizures, shall not be violated…' " Vin Suprynowicz
"A treaty cannot be made which alters the Constitution of the country, or which infringes any express exceptions to the power of the Constitution." Alexander Hamilton
We can & must learn from history! IFF we fail to learn our lesson, we are doomed to repeat the lesson!
Wake up America, before you find yourself, at a wake for America!
Katman
Fed Needs To Dramatically Slash Rates
Former Fed governor Susan Phillips discusses the Fed's likely next move with CNBC.
OPINION By Christopher Byron MSNBC CONTRIBUTOR March 20 - It's been instructive to listen to the learned men of Wall Street opine in the wake of Tuesday's interest rate cut by the Federal Reserve that rates may have to fall all the way to 3.5% before the economy rights itself & begins to grow again. Exactly what planet are these people on anyway! History suggests pretty clearly that when interest rates finally reach 3.5%, the easing cycle will probably still have 2 full percentage points more of decline to go. In fact, if the evidence of Japan is any guide, rates could fall nearly to zero & the U.S. economy still might not perk up.
SINCE THE END of World War II, the U.S. economy has undergone 9 statistical recessions, &, as a recent report from the highly regarded Bridgewater Associates, Inc. global investment advisory service points out, the average decline in short-term interest rates, peak-to-trough, for each of them has been 5.5 full percentage points. So far, we have undergone only 1.5 percentage points of easing, or barely ¼ the average & this is no average economic slowdown we have entered.
That is particularly so in the tech-heavy Nasdaq, where nearly all profitability - save for the earnings of a relative handful of companies - has come from a colossal, decade-long capital spending boom that was itself financed by soaring stock prices on Wall Street. The resulting boom was the functional equivalent of a huge sector of American business imagining itself to be richer by simply taking in each others' wash.
Now, vast stretches of the American technology landscape are awash in a glut of capital investment overbuilding - a glut that will take years to work off. It is a process that will not be speeded up in any way by cutting short-term interest rates, which is certainly the message that Wall Street is sending with each new move by the Fed.
IS THE FED CAUSING MORE HARM?
In fact, one could easily argue that the Fed's actions will simply make the problem worse. That is because, in the economy as a whole, individuals are net lenders of money & corporations are net borrowers. By driving down rates, the Fed is thus simply cutting aggregate interest income for individuals without the prospect of an equivalent & immediately offsetting, increase in corporate borrowing & investment. Instead of reviving the economy, the Fed's policy could actually be putting an additional brake on it.
The latest cut in rates came Tuesday when the Federal Open Market Committee, which sets short-term central bank lending rates, announced its 3rd ½-percentage-point cut in rates since January.
RATES MUST FALL FURTHER
It is that fact - the erosion of the nation's equity capital balance sheet - that represents the most immediate threat to the economy & it is why rates will have to fall by more than the average of past easing cycles before the economy begins grow again. That is because rising stock prices are what the economic expansion of the last decade has increasingly been built on & in its Tuesday commentary that accompanied the rate cut, the Fed's Open Market Committee all but acknowledged that getting stock prices back up again is crucial to reviving economic activity. But cutting interest rates by a mere 3 percentage points is certainly not going to do the trick.
For one thing, the economic expansion of the 1990s culminated in a spectacular stock market bubble that few people on Wall Street expect will be repeated anytime soon.
In its early stages, the expansion led to growth in corporate earnings. And that growth rate caused price-earnings multiples to widen, causing stock prices to swell even more. This process continually reinforced itself until with the start of the speculative bubble in internets stocks in the spring & summer of 1996 the fastest rising & most volatile stocks on Wall Street became unmoored from the constraints of earnings growth altogether & began rising on concocted "infinite value" theories derived from concepts like multiples of revenue growth.
This led to some of the most astonishing & worrisome distortions in value that Wall Street has ever known. By December of 1999, to take but one example, the Nokia Telephone Co. of Finland, whose shares were & are traded in the U.S. as American Depository Receipts, reached a market value greater than the entire Gross National Product of Finland itself. Closer to home, Yahoo, Inc., was bid up in price until it was worth 25% more than Ford & General Motors combined. These values were monetized into consumer spending power in a 1000 different ways. To cite but one example, as equity prices soared, Americans reduced their savings rates (which now stands, functionally, at 0) & plowed the unsaved cash into consumer spending.
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UCC 1-103, 1-105, 1-207.
"NOTICE OF DISCLAIMER"
I am not a lawyer and I do not give legal advice! Let me make that perfectly plain, clear and mutually agreed, that, and I repeat, I am not a lawyer and I do not give legal advice! This is my private opinion; I am only sharing information! Notice to agent is notice to principle and notice to principle is notice to agent. For those who would violate my privacy by intercepting this private communication, I fully reserve all of my absolute (sovereign) natural (natural by law) "creator endowed" inherent Rights! I also choose to exercise my Right of remedy In the event that any party attempts to use this writing in any proceeding of any kind! I make no claims as to the accuracy of the information! I could be wrong about all of it! Hereinafter "disclaimer". From now on until further notice the "disclaimer" is presumed in any further private or personal or public or official communication from me to you. "Disclaimer"
This letter open to suggestions, improvements, and comments.
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