Re: How to save the Big 3 US automakers
“The stock of money, prices and output was decidedly more unstable after the establishment of the Reserve System than before. The most dramatic period of instability in output was, of course, the period between the two wars, which includes the severe [monetary] contractions of 1920-21, 1929-33, and 1937-38. No other 20-year period in American history contains as many as three such severe contraction,
This evidence persuades me that at least a third of the price rise during and just after World War I is attributable to the establishment of the Federal Reserve System... and that the severity of each of the major contractions -- 1920-21, 1929-33, and 1937-38 -- is directly attributable to acts of commission and omission by then Reserve authorities....
Any system which gives so much power and so much discretion to a few men, [so] that mistakes -- excusable or not -- can have such far reaching effects, is a bad system. If is a bad system to believers in freedom just because it gives a few men such power without any affective check by the body politic -- this is the key political argument against an independent central bank.... to paraphrase Clemencea: money is much too serious a matter to be left to the central bankers.
The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one-third from 1929 to 1933."
Milton Friedman, economist, Nobel prize winner.
In a situation when the whole global economy is based on a Ponzi Scheme, meaning that the whole commerce is living on a everyday dose of credits, just like as junkie needs his drugs, freezing the issuance of new credits so that the old debts could be repaid with “new money” - would have a disaster effects. This will have the same effect as contracting the money from circulation as Milton described it.
Freezing the issuance of new credits is staged. Everybody knew that the house market could not rise endlessly and that the amount of houses will reach its mathematical limit until no one will need to buy it. Also there were millions of articles, books, documentaries since 2000… where experts around the globe pointed that US financial policy will have fatal results on global commerce. One of them was Peter Schiff who was laughed when speaking openly about this great issue, just like me on boards of diii.net….LOL’d and named as psycho, loony, weirdo …. Btw, I don’t mind guys, you simply don’t have the experience.
Also they deliberately extracted western industry and incorporated it in the eastern societies. During this transition time, imbalance in trade created an enormous debt in the west towards east, because east created more and more and the west was sharply declining in offers. In past 10 years, US heavily borrowed from China and other countries so that there phony economy could work, trillions of dollars. They spent this money on garbage, boys bought gadgets, girls bought makeup, parents new houses that they could not afford…Ponzi economy was kept on borrowing and spending on things that are not productive.
Savings were deliberately destroyed so no liquidity could save the Ponzi scheme from the total collapse when time comes. They did this by forcing people to go on Wall streets because saving interest rates were always lower than the inflation and the so called market on Wall Street had a higher rate of growth. This was a trap. Everybody bought craps on Wall Street and they thought that this modern economy will bring them joy and happiness endlessly.
Creating this global economy had a far reaching goal. In a case of west vs east we have a situation now that US is totally bankrupted and robbed (8.5 trillions in the past 2 months – Bloomberg and AP). They owe to China over 3.5 trillion dollars and there is no way that they could pay them back. During this time of borrowing US was heavily armed. We are on a point now where one economic super power wants there money back from a bankrupted military super power. And this military bankrupted super power can blow this globe to pieces if some one dares to buy ….lets say Hollywood….or Texas, Alaska ….No one can’t get his money back in east. Usury Lords do have a solution for this small inconvenient situation – why fight? Why not merge? And erase all debts !?
They also secured that no economy could provide liquidity by distributing polluted AAA bonds worldwide and imploding their Ponzi economies simultaneously when Anglo-phony economy starts to collapse. This will lead to the collapse of our modern societies as we know it. Because Ponzi balloon was blown for the past 100 years, $700 trillion global debt will wipe everything. There is nothing that we could do now to stop this biblical domino effect.
Madoff deliberately spoke in front of his fiends and employees how his firm really worked in the past decades. He wanted everybody to know how the global economy really works, this is his behest to next generations. His micro ponzi scheme could not work in a really regulated environment; Usury Lords approved a lot of these cloned schemes to their loyal friends.
Most of you were never hungry as I was, so you still don’t know what I am talking about.
