Showing posts with label bank. Show all posts
Showing posts with label bank. Show all posts

Friday, January 22, 2010

to what end are we here on this rock?

this may be one of my most radical and anarchistic postings yet. as such, i cannot help but ponder what thoughts and motives the founders of our country (the original terrorists and traitors), must have been contemplating as they sought to break free from the royal tyranny of the british aristocracy.

fast forward to yesterday, and one of my facebook friends posted a sobering status update indicating her complete fear of our next presidential election cycle given the supreme court's latest ruling on campaign finance.

and while several comments were made on her posting, one caught my attention:

"The American people raised more than $10 million in five days, at $10 a pop, by texting the American Red Cross for Haiti. We can do anything if we agree to do it. Yes, this gives the corporations amazing power, but ... also unions and other groups, too. So we just have to fight back with our dollars. When the going gets tough, the tough ORGANIZE!!!"

in my mind, this is a very small, narrow, short-term and dangerous way of thinking which only perpetuates the problem.

big picture here... i would have hoped by now it is blatantly obvious (and painfully clear) that "more" money and "more" politics ARE NOT the solution, they are the problem.

we cannot seriously believe spending MORE of this already inflated and unstable indebted currency is a viable solution! and we cannot seriously believe that giving special interests cart-blanch influence on legislative process will solve anything!

first, the american people, and the rest of the world by and far, have no clue what a monetary system really is, what the currency represents and how money works. all they know is they have paper and coin "valued" at an agreed upon rate, and it is widely accepted in trade for goods and services.

you see, people say they "make money" when they work, but they have no real idea how it gets "created".

in fact, people don't make money, they trade their labor for money. it's only when two parties "agree" one thing is equal in value to another a trade can be made. we could trade our labor for anything else just as easily, but right now, our society tends to trade for money.

facts:
  1. in reality, money is nothing more than debt
  2. more money is "made" by creating/trading additional debt
  3. the problem with an indebted currency is, because of compound interest, the debt can never be fully paid back
here's the skinny... the very second "money" is created/loaned by an issuing authority, and interest is charged, there is instantly NOT ENOUGH MONEY to satisfy the original obligation- ever- because it hasn't been created yet!

it can only be paid back in full (including interest) if the loan issuer accepts something tangible of agreed upon equal value, or by creating/injecting more money into the system.

in creating/injecting more money, more debt is created by default. this cycle repeats as everyone tries to pay back their loans.

btw, using loaned money to pay back loaned money IS A PONZI SCHEME! it will eventually collapse on itself. the fed knows this. the government knows this. bernie madoff knows this.

and because we are trading debt for goods and services, the value of goods and services are diminished even though the "price" may be increasing. this is inflation.

further, when no one will accept tangible items in trade, the value of money increases disproportionally with the tangibles we need. consequently, these become more expensive even though they are physically the same things they were the day before.

money has been the fuel of consumption in our mad-consumer society, and it has become synonymous with wealth and status.

i tell you, money does not equal wealth or status. in fact, i would argue that the more "money" one amasses, the more contempt one has for life and living.

now more than ever, the political machine, fed by "money", is being allowed to overtake our government and its ability to govern for the common welfare. the common good is obsolete, and profit motivated special interests reign supreme. anyone who believes otherwise has been blinded by false promises and narrow world focus.

while we are all chasing our tails in circles of debt and trying to reach the carrot at the end of the stick, the worlds natural resources and ecosystems are being ravaged by these very corporations who now have an unlimited voice, not to mention the supreme court's blessing, in our legislative process.

and i believe it is equally distasteful that with this new supreme court ruling, labor unions and any other group for that matter, will have the same obscene spending ability to promote their self-serving agendas unchecked.

it's bad enough they all do it through back-room lobbyists, but now with soft campaign contributions up until election day... ugh!

the only way to affect real change is to void the value placed in this false idol known as money (that jesus guy, a very radical community organizer, had it right when he ransacked the market in the synagogue), demand the debt be retired, refuse to be a "mindless consumer" and return our focus of value to people, community, health and wellness, personal accountability, unrestricted education and higher learning, innovation, craftsmanship, art, the pursuit of knowledge, and stewardship of our environment. this will only happen with a massive grass-roots effort. we cannot count on career legislative politicians to look out for the public good when their own jobs (and money) are on the line.

and moving on to the environment for a moment, please take note... cap and trade is nothing more than a money making scheme by for-profit corporations and investment bankers/traders to continue depleting resources, controlling the debt, and keeping apathetic "workers" on the treadmill under the fictitious impression of someday becoming "wealthy".

cap and trade will not lead to environmental repair. it will create an economic bubble (just as it did in europe), lead to increased pollution, and further concentrate control of debt in the hands of bankers and speculative traders (bookies and gamblers).

the only real way to reduce carbon emissions is to reduce carbon burning. the only way to clean up pollution is to let the planet heal and return to balance. the earth was here long before humans started thinking we were so important, and it will be here long after we learn how unimportant we are.

politicians, bankers, and now for-profit corporations treated as individuals have only self-interest at heart. yet these are who we allow to be our leaders.

we need a rise of a global "smart" party. we need a rise of global selfless leaders. we need to return focus on stewardship rather than consumption. we need to remove indebted currency from the equation. we need to promote exploration and research, and measure wealth in terms of knowledge instead of money.

we may never be able to remove the animal from human nature, but we can make conscious decisions to get past greed and fear of loss. really, there is enough for everyone, and the planet can sustain us if we steward our resources with respect.

the planet was here long before we were, and will be here long after we cease to exist. the question is, how long can we sustain our existence on the planet? what (if anything) will we be remembered for?

Sunday, March 22, 2009

has all common sense left the building?

It’s no secret that I have been intensely angered by the financial meltdown. Not because of the loss of "money" as it were (as if any of it even exists!), but for the culmination of intense greed and self-serving behavior perpetrated by PEOPLE entrusted with the public welfare (and I don't mean welfare in terms of a government hand out, I mean welfare as in the general public good). It is my intention to share my views- right or wrong- in an effort to spur MEANINGFUL conversation and hopefully a deeper, real understanding of what's happening, why it's happening, and not for determining who's to blame, but rather, determining who should/will take responsibility in making sure our government is returned to the people, and out of the hands of well-paid corporate lobbyists acting only in the interest of their employer's balance sheet.

To understand money, banking, investment, capital markets, and the notion of "earning something for nothing" simply by trading debt, we really need to have a handle on how "money" is crated and why we think it has value. A very good resource for this is, "The Ascent of Money", a PBS expose detailing the history of the monetary system and why control of it is so important to those in power (http://www.pbs.org/wnet/ascentofmoney/).

And before I go any further, I suggest one simple bit of advice to anyone reading this ... don't take my word for anything. Do your own research. Take time to look into our government (and I don't mean the presidency, I'm talking about the legislative branches- our representatives, and the judicial branch- our trusted, "unbiased" elders.), monetary system, the FED, Treasury/IRS, tax code (20 volumes, 16,000+ pages!!!), and every other cog in the machine which is ultimately "in charge" of our lives. Just remember, the only power any of these things have over us is that which we allow:

" When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."

Think about these words. They are more important than just about any other concept in our country’s history.

Next, we need to have a good handle on the FED, (http://en.wikipedia.org/wiki/Federal_Reserve) and what that organization is all about. The fed is a quasi-public/private FOR PROFIT corporation that has been allowed to not only control the supply of money, but remove any safe guards such as the gold standard (http://en.wikipedia.org/wiki/Gold_standard)

Take a good, hard look at a document put out by the FED called Modern Money Mechanics, A Workbook on Bank Reserves and Deposit Expansion: www.rayservers.com/images/ModernMoneyMechanics.pdf
http://en.wikisource.org/wiki/Modern_Money_Mechanics
This is a detailed explanation of how money is created.

And if you don't think gold is more valuable than cash (Federal Reserve Notes), look at the rise in popularity of "cash for gold" businesses. Over the last couple years (the apex of the financial/capital market implosion), and most recently exhibited by infomercials and traveling trade-shows, there has been a significant increase in businesses setting up shop to aggregate "unwanted" gold and other precious hard goods. Of course they are willing to give you cash for it! Cash, is literally worthless, but you can't very easily buy groceries or gas with gold. So these businesses are more than happy to take your tangible items of worth, transfer "money" to your bank account, let you withdraw "federal reserve notes" from your bank, and go buy your consumables (gasoline and such). In the end, you have no "money" AND no gold. There is a reason people are trying to get their hands on as much of this stuff as possible.

Onward, lets discuss our legislative representative’s roll in all of this. Much of what is happening now can be traced back to the end of 2000 including the Omnibus spending bill passed by the 106th congress (REPUBLICAN MAJORITY) and forced down the throat of then lame-duck Bill Clinton: http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000

The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on December 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.

The companion bill (S.3283) was introduced in the Senate on December 15, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.

Another look at legislation from this REPUBLICAN MAJORITY congress is here: http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Financial_Services_Modernization_Act

Both of these repealed regulation originally designed to prevent financial monkey-business dating back to THE FIRST GREAT DEPRESSION! Regulation that was originally enacted to mitigate the risk of future depressions. The kind of oversight designed to prevent the exact type of CRAP we're dealing with now.

These bills are the genesis of the financial "engineering", wizardry and capital market manipulation that has allowed PEOPLE to take advantage of unregulated opportunities- specifically merging banking and insurance.

Be sure to take some time to look into Phil Gramm, the good-'ole-boy from Enron, um, I mean the great state of Bush, um, I mean Texas, (http://en.wikipedia.org/wiki/Phil_Gramm) and find out which lobbyists/corporations contributed most to his opinions. FYI, Gramm was one of five co-sponsors of the companion bill to the Commodity Futures Modernization Act of 2000[5]. One provision of the bill is often referred to as the "Enron loophole" because some critics blame the provision for permitting the Enron scandal to occur.

OK, after all this, don't forget to take a look at the SEC, and their complete inability to function in the capacity for which it was intended. Think Bernie Madoff and Allen Stanford... and Enron... and Worldcom... and...on and on.

Lastly, look at where the MONEY actually went: banks. Goldman Sachs, Deutsche, Chase, Citigroup, Bank of America, etc, etc, etc. The recent consolidation of banking through bailouts has done nothing but bolster the DEBT, put more money in fewer people’s hands, and created a globally dominant economic force that if left unchecked, will drive further the divide between the haves and have-nots.

Now, some have suggested that the way to "fix" everything is to throw more money at it. Bailouts, tax breaks, whatever.

COME ON! "Buying" the perpetuation of a broken system is not the way to fix things.

And then trying to "fix" misallocated bailout funds by creating a new tax? A 90% tax on bonuses?

I don’t believe AIG made the right call in offering such extravagant retention, holiday and other bonuses, nor for their actually using bailout money to pay them, but this new tax is just as criminal!!! And unconstitutional.

How is taking away money going to do anything but hurt the PEOPLE who NEED it to support our monetary based society?

The fix isn’t to bailout and tax, but to foster a fundamental shift in socio-economic thinking. That greed isn’t good, and corporate profit isn’t the end-all, be-all of our existence.

And those who argue we might be heading towards socialism, bigger government, and other "dangerous" roads that will lead to the destruction of our society...

I say to you that our government has never been as big as it is when lobbyists push corporate agendas, constitutional rights are "suspended" or even stripped away, and more power is put in fewer people's hands specifically with judicial activism, no-bid contracts, and unilateral "secret" decisions that are made “for our own good”.

When we as a nation can allocate trillions of dollars and resources toward efforts in global domination of fossil fuel energy resources and suppression of autonomous societal development, but cannot find it within ourselves to protect, WITHOUT TRYING TO FIND A WAY TO MAKE A BUCK, endangered ecosystems, see that everyone on the planet has adequate food and clean water, and understand that over-consumption, pollution, burning heavy metals and EXCESSIVE carbon emissions are BAD, then there is something fundamentally wrong with our development and value system.

Just as important in all this is the fact that we as a society don't promote healthy living choices in terms of nutrition and exercise... unless we can make a buck at it.

Everyone worries about leaving too much debt to future generations. Well here's an eye opener... ALL MONEY IS DEBT! OUR GOVERNMENT BORROWS MONEY IT CAN NEVER REPAY... EVER.

THE SIMPLE FACT THAT INTEREST IS BEING CHARGED ON DEBT SOLIDIFIES THE FACT THAT THERE WILL NEVER BE ENOUGH "MONEY" TO EVER PAY BACK WHAT IS BORROWED.

HOW CAN YOU EVER PAY BACK MORE THAN WAS ORIGINALLY ISSUED?

Oh, I forgot... go back and read Modern Money Mechanics. Money (debt) that is issued miraculously becomes "more" money (and consequently more debt!), when it is lent with zero gold standard and a 10% reserve requirement.

BTW, our income taxes currently do not even provide enough revenue to our treasury to cover the INTEREST on the national debt! Do the math. Think about that for a minute.

If you want some real reading, real information... real forward thinking, study up on the concept of “resource based economy”- an information, technology and knowledge based intelligent society where the pursuit of financial gain is no longer the primary driver, but rather the development of a global economy without debt. You can’t have a debtless society when people rely on “money” and “interest” Go ahead, google it and see what you come up with.

I'm not saying there is no wealth building with this system... I'm saying that everything is wealth building. And it’s done without the need to put anyone else down to get there.

Utopia? No... just people acting in the best interest of everyone else. Each of us needs all of us, and all of us need each of us. What a concept.

You argue that a corporation is a living, breathing, independent, legal entity. We always hear of, “Washington” did this, and “AIG” did that, “the church” says this.

Here’s another eye-opener… these institutions/corporations are made up of groups of PEOPLE. People do and say things. People guide organizations and institutions. People are responsible.

I submit that corporations are nothing but RULES MADE UP BY PEOPLE. And if we made the rules, we can change them.

Best business practices, standard accounting principles, tax code… it all needs an enema!

We need to open our eyes, get weaned off our cool-aid drinking, war-mongering, terror and fear-instilling, NASCAR watching, lottery playing, “American Dream” believing, subsidy driven, celebrity obsessed, American Idol-Dancing With The Stars-Biggest Loser- MTV watching, got-to-have-it-now, consumption based, unaccountable, irresponsible, dumbed-down barely smarter than a second grader, blinders-on society and GET WITH THE PROGRAM.

This country was built on principles of no taxation without representation, religious freedom, uncorrupted leadership, all created equal, and the rights of life, liberty and pursuit of happiness.

It’s time to get pissed-off! We don’t have to take it. The “government”, the “corporation”, the “institution”… it’s all MAN MADE (and you too, gals!). Nothing happens without people doing something. We’d don’t have to take it, you know. It’s time to get pissed.

Peace.