Thursday, February 21, 2013

Either Or: Either We Cancel All Unpayable Debts Or We Die

Quackademic is a word coined to refer to academics and other professionals who sell their opinions and advice to the highest bidder with disastrous results for humanity.
Let us begin with some reasonable questions for academic economists. What is a Depression like 1929-1939 and how did we get out of it? Depressions like that a period of time in which  massive amounts of Unpayable Debts are canceled. This can take a long time during which there is much hardship. The demographer Borisov estimates that between 3 and 7 million Americans out of a population of 125 million died of starvation. Americans, Europeans and most people in the world have debt based currencies like the Federal Reserve Note. This means that checking account money can only be created when you or the government takes out a loan. If you pay the loan off or default on it, then the total of checking account money is decreased. As you go through a Depression paying off loans or defaulting through bankruptcy, you are reducing the money supply. It is this reduction in money supply that literally kills people through starvation, riots, rebellions and wars. MIT estimates that up to one billion human beings will die from these means as soon as the dollar, the pound and the euro collapse.
The printed currency also can only be issued after a loan at interest is taken out which puts the Government in debt to the privately owned Federal Reserve bank. The Bureau of the Mint actually prints the Federal Reserve Notes and gives them to the Federal Reserve which gives them to the US Treasury in exchange for bonds. This is why the taxpayers are on the hook for nearly 17 trillion dollars. The government gave the bankers the right to create America’s money at interest in 1913 when the Congress passed the Federal Reserve Act. That was the same year the income tax and the IRS were created. The Federal Reserve required much higher taxes to pay for the gift of a privately owned central bank the politicians gave to Wall Street. The Federal Reserve also made WW I possible and most say made WW II necessary to end the Great Depression which the bankers had created.
We should note that the legislation for the Federal Reserve was written at a secret meeting of men representing the Rothschilds, the Rockefellers and Warburgs with the latter two in attendance. President John Fitzgerald Kennedy was murdered on November 22, 1963 which was the anniversary of the first of those secret meetings. The bankers first met in a private rail car across the river from Manhattan on November 22, 1910. It was no coincidence that JFK was killed on the anniversary of that first meeting as he challenged both the banks with Executive Order 11110 and Israel by opposing their acquisition of nuclear weapons. I also do not think it was not a coincidence that Martin Luther King Jr was killed on the first anniversary of his anti-war speech at New York City’s Riverside church.
We cannot emphasize enough the ability of bankers to collect interest on money they created out of nothing. We have a fractional reserve banking system as well as a debt based currency. This means that if Mrs Jones deposits $10,000 at her local bank, that her banker can loan Mr Smith 9 times that much so he is paying interest on $100,000 while the bank pays the woman less than 1% or about $100 on her deposit. The bank created $100,000 but demand repayment of that principal plus interest of say $10,000. The $100,000 loan upon repayment decreases the money supply by $100,000 but the bank did not create the money to pay off the interest. This requires that a loan be made somewhere else so Smith could make his payment. This and the loans to the government is the source of Unpayable Debts.
Another source of bad debts in the modern era is fraud. Banks created trillions of dollars in fraudulent mortgages which were given AAA ratings after Wall Street gave out sufficient bribes. Ben Bernanke  has been  creating trillions of dollars to keep up the value of bad debts rather than cancel those debts. But to create trillions of dollars Bernanke has had to add that much to America’s debt.
I have quoted Professor Steve Keen before. He said the world has the greatest level of debt in 500 years and will therefore have the greatest financial collapse in 500 years. We are in the greatest bond bubble in history. The Federal Reserve has created so much money that it can keep interest rates down. This benefits the banks who have so many bad debts to carry on their books. It also allows Goldman Sachs, J P Morgan and their friends to get trillions of dollars in loans at 0.01% interest so they can run up the price of food and gasoline while they transfer all wealth from you to them and saddle you with debts and devalued paychecks and pensions.
Might I point out that George Soros has already attacked the Japanese yen and is now attacking the British pound. Currency wars are in high gear so we have little time left.
The solution is obvious to me but not to Quackademics. We need to ban fractional reserve banking. We need to have government be the sole issuer of credit. This was formulated by 8 economists in 1833 and called the Chicago Plan. It was ignored by FDR. the Republicans and most professional economists. Millions died of starvation and 58 million died in WW II after the Quackademics passed over this solution. Recently two IMF economists wrote a paper saying the Chicago Plan was a great idea. I wrote about this report and have it in the notes below. We need to issue money as a credit rather than as a debt as Lincoln did with the Greenbacks so we no longer have to pay interest to bankers on money they created out of nothing. I would go further and make all government debt illegal.
We need to cancel Unpayable Debts to get the economy moving within a week or two. I would cancel all government debt for all nations willing to publish their own credit based money like the Greenback and also ban fractional reserve banking. The latter according to the IMF will stop bank runs cold.
I would also cancel $20,000 in personal debt for every adult citizen. Those with no debts would get a credit in a personal retirement account. The amount of debt cancellation would vary from country to country. I think we need to eliminate subsidies to the wealthy and wars. I would cancel all VAT taxes in Europe. I would make  property taxes on owner occupied primary residences  illegal.
I would fund these debt cancellations by seizing the trillions of dollars in government agencies cited at http://www.CAFR1.com . I would also seize the assets in excess of 40 trillion dollars which were stolen from us. I would take the US military out of Iraq, Afghanistan  and God only knows where else. I would send them into the banks in Bahrain, Dubai, Saudi Arabia. Lichtenstein, the Cayman Islands and a dozen other small nations to seize the assets of criminals. I would seize the legal records of all those trusts and corporations registered offshore so we could trace down all of the bank accounts and safe deposit boxes and other holdings.
As I have said before, we will have to set up cooperative trusts which will hold all retirement funds for you under your name and control never to be touched by Wall Street or politicians. These cooperative trusts will have credit unions and issue loans and credit cards. They will be motivated to make sure all payments are made because the net profits from this and the sales of insurance will go into funds for your retirement. Again I have an article that breaks this down in the notes below.
The alternative to an organized Debt Cancellation is Great Depression like the last one. MIT said a billion people die the Phase I when our currencies collapse and 5 billion more die from a series of plagues. How does MIT know 5 billion people will die from plagues? Because people in authority told them they were going to kill you and your families and your friends.
Notes: The first article as promised explains how and why the IMF likes the Chicago Plan.
IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.
http://vidrebel.wordpress.com/2012/08/19/imf-economists-we-were-wrong-will-someone-please-tell-the-press-and-the-politicians/
I would like to suggest the following as the most feasible means of seizing the tens of trillions of dollars stolen from us by the bankers:
Memo To Pentagon: Compare The Invasion Of Lichtenstein And The Cayman Islands To War With Iran And Syria
http://vidrebel.wordpress.com/2012/08/06/memo-to-pentagon-compare-the-invasion-of-lichtenstein-and-the-cayman-islands-to-war-with-iran-and-syria/
For the less technically minded this next article explained what Debt Cancellation would look like though some object to the race of the persons involved.
Eddie Reborn Into A World With Debt Cancellation.
http://vidrebel.wordpress.com/2012/07/10/eddie-reborn-into-a-world-with-debt-cancellation/
The Mathematics Of Austerity: Proving Austerity Never Was Even Intended To Work
http://vidrebel.wordpress.com/2011/09/12/the-mathematics-of-austerity-proving-austerity-never-was-even-intended-to-work/
The next article explains how Debt Cancellation, pension reform and healthcare reform could work:
What Real Debt Cancellation Combined With Pension And Health Care Reform Looks Like Part II
http://vidrebel.wordpress.com/2012/07/12/what-real-debt-cancellation-combined-with-pension-and-health-care-reform-looks-like-part-ii/

No comments:

Post a Comment