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Gary Edwards

Socialism vs Corporatism by Ron Paul - 0 views

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    Libertarian Ron Paul argues that Obama isn't a socialist.  He's a corporatist.  Not sure i agree with that assessment.  Obammunism is turning out to be government-by-Banksters, where DEBT is racked up through massive socialist, corporatist, and militarist spending.  The current generation pays the INTEREST only, leaving future generations with massive escalating systemic debt and interest payments.  It's the combination of socialism, corporatism and militarism that makes Obammunism unique, and the Banksters who back it so happy........ The one thing Obammunism is not is "Constitutional". excerpt: Socialism is a system where the government directly owns and manages businesses. Corporatism is a system where businesses are nominally in private hands, but are in fact controlled by the government. In a corporatist state, government officials often act in collusion with their favored business interests to design polices that give those interests a monopoly position, to the detriment of both competitors and consumers.
Gary Edwards

The Libertarian View: Are Tariffs Bad? - 1 views

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    As many know, i spent quite a bit of time working for a Chinese Company seeking to enter the USA-European software market.  My task was to research the market, discover and define a market opportunity, design the product, and then work as product manager to get that service to market.  I took this job to better understand the Chinese marketplace and how sovereign Chinese companies work.  What i learned is how the Chinese seek to exploit and totally dominate open markets.  Software is just a category whose time has come.  and there are thousands of Chinese companies lining up.  The first step though is to fine tune the existing blueprint used by other Sina sovereigns.  amazing stuff. My take away from this experience is that the USA MUST set up a 30% tariff on ALL imports, and do so IMMEDIATELY!!!  Yesterday is not soon enough! As a newly minted libertarian, i wondered about the obvious conflict with Austrian Economics and their dedication to free markets and free trade?  I found the answer at this Libertarian forum, where many members were in heated discussion.  Comment #7 sums it up best i think.  Including a link to Ron Paul's Tariff-NAFTA speech. The thing is, the 30% Tariff should be part of an overall TAX REDUCTION PLAN.  I support the FAIR TAX and the Balanced Budget Amendment.  As an alternative to the Fair Tax, I would also support a 17% flat tax with no exceptions.  The ideal situation being an immediate, uncompromising, no exceptions 30% tariff on ALL imports coupled with the Fair Tax and the Balanced Budget Amendment.   And yes, i do believe this plan is consistent with the Founding Fathers Constitution.  But it took some kind of research to establish that opinion.   I've also concluded that "conservatism" is a convenient philosophical vehicle for the corrupt crony corporatism of both the military-industrial-complex, banksters and, international corporations.  Free trade and open markets concepts are perverted to become a thin veil
Gary Edwards

George Soros on the Coming U.S. Class War:      Information Clearing House - 0 views

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    Excellent story on George Soros, the epitome of evil.  The man who seeks to destroy America and the ideals of individual liberty and natural rights.  Of course, Soros claims to be anything but the evil Bankster who backs Obama and international ruling elites seeking to take out the American Constitution, and replace it with a socialist-militarist-corporatist governance under the command and control of international Banksters. One thing not covered in this story is how the reptillion Soros rose within the ranks of the Bankster illuminati?  Who staked his 1972 hedge fund innovation?  Who helped him escape first National Socialism, and then International Socialism, to become the primary mover of a new International socialism run by international Banksters?  excerpt: To many, the idea of Soros lecturing the world on "evil" is, well, rich. Here, after all, is an investor who proved-and profited hugely from-the now much-derided notion that the market, or in his case a single investor, is more powerful than sovereign governments. He broke the Bank of England, destroyed the Conservative Party's reputation for economic competence, and reduced the value of the pound in British consumers' pockets by one fifth in a single day. Soros the currency speculator has been condemned as "unnecessary, unproductive, immoral." Mahathir Mohamad, former prime minister of Malaysia, once called him "criminal" and "a moron." In the U.S., where the right still has not forgiven him for agitating against President George W. Bush and the "war on terror" after 9/11, which he described as "pernicious," his prediction of riots on the streets-"it's already started," he says-will likely spark fresh criticism that Soros is a "far-left, radical bomb thrower," as Bill O'Reilly once put it. Critics already allege he is stoking the fires by funding the Occupy movement through Adbusters, the Canadian provocateurs who sparked the movement. Not so, says So
Gary Edwards

Buffet, Berkshire and Gold - 0 views

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    More great charts from Sir Charles. This is funny. Sir Charles takes on that consumate crony corporatatist, Warren Buffet. He examines the recent Berkshire Hathaway report, and then does the unthinkable. Sir Charles prices BRK in GOLD, tracking from 1990 to 2011. Then he prices Apple in Gold for the same period. The result is Buffet embarrassing reverse image, with Apple soaring when priced in GOLD, and BRK rolling off a cliff. No wonder Buffet is out there on a daily basis, burning every shred of cred he's accumulated. If anyone takes a truthful look at the reality of BRK performance, he's toast. Does that "just keep talking" stuff actually work?
Gary Edwards

Conventional fuels from concentrated sunlight | Discover | University of Minnesota - 0 views

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    "Simulated sun, authentic opportunity" At the University's Solar Energy Laboratory, the process begins with an indoor solar simulator in the form of seven mirrored, 6,500-watt lamps that concentrate the light on a 10-centimeter spot with an irradiance of 3,000 suns. (One "sun" equals 1,000 watts of solar energy falling per square meter of surface.) With this concentrated radiant energy, one can generate temperatures of more than 3,600 F in a chemical reactor. There, carbon dioxide and water are split to form carbon monoxide and hydrogen, the two components of syngas. Davidson, along with mechanical engineering professor Tom Chase and their students, have developed two prototype reactors to split water and CO2. Deploying these technologies in the Earth's sunbelt could yield enough renewable energy to significantly exceed the world's current needs, the researchers say. "More sun falls on Earth in one hour than is consumed globally in a year," Davidson notes. "Harvesting the sun to meet our energy needs is a challenge with a huge payoff." Of course, it's a little more complicated than focusing concentrated sunlight into a reactor filled with carbon dioxide and water. The key to the technology rests with using metal oxides in a reduction/oxidation cycle to reduce the temperature required to split water and carbon dioxide. "Metal oxides allow you to split water and carbon dioxide at temperatures achievable with modern solar concentrating devices," Davidson explains. In the reactor, the metal oxides go through cycles in which they strip oxygen alternately from carbon dioxide or water-forming carbon monoxide or hydrogen, respectively-then release the oxygen as a byproduct. The syngas formed from the carbon monoxide and hydrogen can be converted into gasoline, diesel, jet fuel, methane (natural gas), or other products. Davidson and her colleagues have produced syngas this way in their laboratory. They have moved from bench top experiments to demonstration in proto
Paul Merrell

The truth is out: money is just an IOU, and the banks are rolling in it | David Graeber... - 0 views

  • To get a sense of how radical the Bank's new position is, consider the conventional view, which continues to be the basis of all respectable debate on public policy. People put their money in banks. Banks then lend that money out at interest – either to consumers, or to entrepreneurs willing to invest it in some profitable enterprise. True, the fractional reserve system does allow banks to lend out considerably more than they hold in reserve, and true, if savings don't suffice, private banks can seek to borrow more from the central bank.
  • The central bank can print as much money as it wishes. But it is also careful not to print too much. In fact, we are often told this is why independent central banks exist in the first place. If governments could print money themselves, they would surely put out too much of it, and the resulting inflation would throw the economy into chaos. Institutions such as the Bank of England or US Federal Reserve were created to carefully regulate the money supply to prevent inflation. This is why they are forbidden to directly fund the government, say, by buying treasury bonds, but instead fund private economic activity that the government merely taxes.
  • It's this understanding that allows us to continue to talk about money as if it were a limited resource like bauxite or petroleum, to say "there's just not enough money" to fund social programmes, to speak of the immorality of government debt or of public spending "crowding out" the private sector. What the Bank of England admitted this week is that none of this is really true. To quote from its own initial summary: "Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits" … "In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money 'multiplied up' into more loans and deposits."
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  • When banks make loans, they create money. This is because money is really just an IOU.
  • What this means is that the real limit on the amount of money in circulation is not how much the central bank is willing to lend, but how much government, firms, and ordinary citizens, are willing to borrow. Government spending is the main driver in all this (and the paper does admit, if you read it carefully, that the central bank does fund the government after all). So there's no question of public spending "crowding out" private investment. It's exactly the opposite.
  • In other words, everything we know is not just wrong – it's backwards.
  • So for the banking system as a whole, every loan just becomes another deposit. What's more, insofar as banks do need to acquire funds from the central bank, they can borrow as much as they like; all the latter really does is set the rate of interest, the cost of money, not its quantity.
  • The role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind, ones that the government will recognise as legal tender by its willingness to accept them in payment of taxes. There's really no limit on how much banks could create, provided they can find someone willing to borrow it. They will never get caught short, for the simple reason that borrowers do not, generally speaking, take the cash and put it under their mattresses; ultimately, any money a bank loans out will just end up back in some bank again.
  • Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called "Money Creation in the Modern Economy", co-authored by three economists from the Bank's Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window.To get a sense of how radical the Bank's new position is, consider the conventional view, which continues to be the basis of all respectable debate on public policy. People put their money in banks. Banks then lend that money out at interest – either to consumers, or to entrepreneurs willing to invest it in some profitable enterprise. True, the fractional reserve system does allow banks to lend out considerably more than they hold in reserve, and true, if savings don't suffice, private banks can seek to borrow more from the central bank.
  • Why did the Bank of England suddenly admit all this? Well, one reason is because it's obviously true. The Bank's job is to actually run the system, and of late, the system has not been running especially well. It's possible that it decided that maintaining the fantasy-land version of economics that has proved so convenient to the rich is simply a luxury it can no longer afford.
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    Okay. The Bank of England finally fesses up and tells the truth about banking and government. Incredible!
Gary Edwards

Liberty's backlash -- why we should be grateful to Edward Snowden | Fox News - 1 views

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    Liberty's backlash -- why we should be grateful to Edward Snowden By Judge Andrew P. Napolitano Published August 01, 2013 FoxNews.com Last week, Justin Amash, the two-term libertarian Republican congressman from Michigan, joined with John Conyers, the 25-term liberal Democratic congressman from the same state, to offer an amendment to legislation funding the National Security Agency (NSA). If enacted, the Amash-Conyers amendment would have forced the government's domestic spies when seeking search warrants to capture Americans' phone calls, texts and emails first to identify their targets and produce evidence of their terror-related activities before a judge may issue a warrant. The support they garnered had a surprising result that stunned the Washington establishment. It almost passed. The final vote, in which the Amash-Conyers amendment was defeated by 205 to 217, was delayed for a few hours by the House Republican leadership, which opposed the measure. The Republican leadership team, in conjunction with President Obama and House Minority Leader Nancy Pelosi, needed more time for arm-twisting so as to avoid a humiliating loss. But the House rank-and-file did succeed in sending a message to the big-government types in both parties: Nearly half of the House of Representatives has had enough of government spying and then lying about it, and understands that spying on every American simply cannot withstand minimal legal scrutiny or basic constitutional analysis. The president is deeply into this and no doubt wishes he wasn't. He now says he welcomed the debate in the House on whether his spies can have all they want from us or whether they are subject to constitutional requirements for their warrants. Surely he knows that the Supreme Court has ruled consistently since the time of the Civil War that the government is always subject to the Constitution, wherever it goes and whatever it does. As basic as that sounds, it is not a universally held belief am
Gary Edwards

The Economic Philosopher's Outcast: Mises | Steve Mariotti - 1 views

  • Mises, the modern day creator of the Classical Liberal movement (today also called libertarianism) destroyed the intellectual arguments of socialism by proving that it was impossible to allocate scarce resources effectively without private property and free-market prices. He showed that the more the state limited economic incentives to individuals, the greater the harm to low-income people and the general population.
  • Centralized planning, something that was characteristic of all three types of socialism: the Nazis, the Fascists and the Communists, led to the ruin of an economy, and resulted in more and more tyranny and the rise of the totalitarian state.
  • What economists failed to understand was that massive government spending and a authoritative centralized government would bring economic ruin to Germany, Russia, and many other countries.
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  • Sooner or later government debt has to be repaid out of tax receipts. Our current revenue base is not strong enough to sustain a viable repayment program to service the debt. Today we create money -- billions a month -- to meet the debt repayments. As new money floods the market its value declines. The country experiences inflation destroying the savings, and pensions of its citizens.
  • Similar conditions led to the downfall of the Weimar Republic. The rampant inflation of the 1920s in Germany was a contributing factor to the rise of Hitler, Himmler and the centralized planning of the ultimate socialist organization the National Socialist Workers Party (Nazis).
  • The anticipation of future consumer demand impacts the output of entrepreneurs intent on meeting that demand in the future and thereby make a profit
  • Author of dozens of seminal books and hundreds of articles, Mises works were studied by the Nazis in the 1930s as part of their assault on pro-democracy individuals, particularly those who were Jewish. Mises' unparalleled contributions to economic theory, which upheld a free market over one controlled by a coercive government, later fostered a world-wide movement. His books were significant for their discussions of money, credit, Socialism, central planning, and human action.
  • Mises' most remarkable argument for the free market came in his 1922 piece, "Socialism: an Economic and Sociological Analysis." In a Socialist state, there were no prices, essential to allocating resources. Prices signaled information simultaneously to both entrepreneurs and consumers.
  • The centralized decision making over both production and consumption is impossible because of the complexity of an economy composed of hundreds millions of people and trillions of decisions every second. This insight gave Mises a greater appreciation of the value of a market economy, one that allows for the change of prices based on changes in supply and demand.
  • The recent bankruptcy of the City of Detroit is a harbinger of serious problems for the $2.9 trillion municipal bond market. Mises witnessed firsthand rampant government spending, overwhelming debt, and inflation in both Germany and Austria. The results of similar economic policies are threatening major urban centers around our country.
  • This defense of limited government and the rights of all citizens made Professor Mises a threat to the ultimate central planners and explains why the Gestapo had sped to his home to arrest him.
  • Mises, leader of the Austrian School of Economics, mentored the great Nobel Prize winner Friederich Hayek, who I studied with in 1979 at the Institute for Humane Studies. They influenced noted economists such as Israel Kirzner, Robert Higgs, Lawrence White, Peter G. Klein, Roger Garrison, Edward Stringham, Peter Boettke, and the novelist Ayn Rand who later made popular classical liberal economic policies. Mises disciples today see the threat of government intervention in our nation's economy as seriously undermining economic productivity and self-starting growth.
  • People are increasingly disenchanted with mainstream Keynesian views of the economy. Keynesians were blindsided by the housing bubble and the financial crisis. Their response was to pump the economy with cheap credit and huge government spending which has only prolonged the agony. The Austrians led by Mises offer a compelling alternative explanation in which booms and busts are caused by central-bank manipulation of interest rates in vain attempts to stimulate or stabilize the economy.
  • Klein further points out that monetary central planning, combined with misguided housing regulation led the economy to produce the wrong kinds of goods and services. For Klein recovery means getting the government out of the way and letting entrepreneurs fix the mistakes.
  • According to Paul Wisenthal, the country's leading journalist authority on entrepreneurship education for young people, America was built on new small business development, led by its forefathers who were primarly entrepreneurs. He believes the U.S. may continue to diminish small business incentives as government expands on taxpayer dollars that don't exist.
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    I've said for more than 40 years that "inflation is the cruelest tax of all." In a fiat currency economy, it is robbery, pure and simple; and the poor are hardest hit because they lack the capital to make investments that can outpace inflation. The net effect is to transfer wealth from the lower economic classes to the wealthy, most of all the investment banksters and "old wealth".
Gary Edwards

1913: The Blow That Killed America 100 Years Ago - 0 views

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    "There is a lot of ruin in a nation," wrote Adam Smith. His point was that it takes a long time for nations to fall, even when they're dead on their feet. And he was certainly right. America took its fatal blow in 1913, one hundred years ago; it just hasn't hit the ground yet. This is a slow process, but it's actually fast compared to the Romans. It took them several centuries to collapse . The confusing thing about our current situation is that America - and by that I mean the noble America that so many of us grew up believing was real - has long been poisoned. Its liver, kidneys, and spleen have all stopped functioning. Its heart beats slowly and irregularly. But it still stands on its feet and presents itself as alive to all those who would let their eyes fool them. And I'm not without sympathy for those who want to believe. They find themselves in a world where politics is almighty, and where their comfort, prosperity, and perhaps their survival all hang in a delicate balance. They don't want to upset anything, and questioning the bosses is a good way to get yelled at. But just because someone wants to believe doesn't make it so. We are not children and we are not powerless. We Producers should never be intimidated by those who live at our expense. So let's start looking at the facts. 1913: The Horrible Year For all the problems America had prior to 1913 (including the unnecessary and horrifying Civil War), nothing spelled the death of the nation like the horrors of 1913. Here are the key dates: February 3rd : The 16th Amendment to the United States Constitution was ratified, authorizing the Federal government to impose income taxes on individuals. An amendment to a tariff act in 1894 had attempted to do this, but since it was clearly unconstitutional, the Supreme Court struck it down. As a result - and mostly under the banner of bleeding the rich - the 16th amendment was promoted and passed. As a result, the Revenue Act of 1
Gary Edwards

Articles of Impeachment Against Obama - 0 views

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    Sarasota, FL ( August 12, 2013) - The National Black Republican Association (NBRA) based in Sarasota, FL, headed by Chairman Frances Rice, filed Articles of Impeachment against President Barack Obama with the following language.   We, black American citizens, in order to free ourselves and our fellow citizens from governmental tyranny, do herewith submit these Articles of Impeachment to Congress for the removal of President Barack H. Obama, aka, Barry Soetoro, from office for his attack on liberty and commission of egregious acts of despotism that constitute high crimes and misdemeanors.   On July 4, 1776, the founders of our nation declared their independence from governmental tyranny and reaffirmed their faith in independence with the ratification of the Bill of Rights in 1791.   Asserting their right to break free from the tyranny of a nation that denied them the civil liberties that are our birthright, the founders declared:   "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."  -  Declaration of Independence, July 4, 1776.   THE IMPEACHMENT POWER   Article II, Section IV of the United States Constitution provides: "The President, Vice President and all civil Officers of the United States, shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors."   THE ARTICLES OF IMPEACHMENT   In his conduct of the office of President of the United States, Barack H. Obama, aka Barry Soetoro, personally and through his subordinates and agents, in violation or disregard of the constitutional rights of citizens and in violation of his constitutional duty to take care that the laws be faithfully executed, has prevented, obstructed, and impeded the administration of justice, in that:   ARTICL
Paul Merrell

Banks pushing for repeal of credit unions' federal tax exemption - Los Angeles Times - 0 views

  • Credit unions have been snatching customers from banks amid consumer frustration over rising fees and outrage over Wall Street's role in the financial crisis.Now banks are fighting back by trying to take away something vital to credit unions — their federal tax exemption.With fast-growing credit unions posing more formidable competition to banks, industry trade groups are pressing the White House and Congress to end a tax break that dates to the Great Depression. "Many tax-exempt credit unions have morphed from serving 'people of small means' to become full-service, financially sophisticated institutions," Frank Keating, president of the American Bankers Assn., wrote to President Obama last month."The time has come to abolish this exemption," Keating said in the letter, which was part of a blitz that included print and radio ads in the nation's capital.
  • Bankers long have complained the tax break is an unfair advantage for large credit unions. Now they see an opportunity to get rid of it as lawmakers begin work on a major overhaul of the tax code that is aimed at eliminating many corporate exemptions and lowering the overall tax rate.The exemption cost $1.6 billion this year in taxes avoided and would rise to $2.2 billion annually in 2018, according to Obama's proposed 2014 budget.In a 2010 report on tax reform, the President's Economic Recovery Advisory Board said eliminating the exemption would raise $19 billion over 10 years and remove the credit unions' "competitive advantage relative to other financial institutions" in the tax code.Credit unions said the effort to take away their tax exemption was simply an attempt to stifle competition and remove one of the only checks on bank fees for consumers.And it comes as some in Congress are pushing to loosen regulations on credit unions so they can expand their business further, including legislation that would lift a cap on the amount of money they can lend to businesses.The tax exemption is crucial to credit unions, which by law can't raise capital through public stock offerings the way that banks can, said Fred R. Becker Jr., president of the National Assn. of Federal Credit Unions, a trade group with about 3,800 federally chartered members."They'll have to convert to banks, which is what the banks want," he said. "Then they'd have, for lack of a better term, a monopoly."
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    So instead of competing on quality and service, banksters aim to eliminate the competition grown by disgruntled bankster customers. Unfortunately, corporate lobbying of government officials is exempt from the anti-trust laws, a consequence of (in my opinion, ill-considered) judicial recognition of a corporate First Amendment right of petition. So once again, we have legal fictions acquiring human rights. Trustees of Dartmouth College v. Woodward, 4 Wheat. 518, 636 (1819) (Marshall, C. J.). ("A corporation is an artificial being, invisible, intangible, and existing only in contemplation of law. Being the mere creature of law, it possesses only those properties which the charter of its creation confers upon it"). May a corporate charter permissibly bestow the rights of citizenship on an imaginary being? According to latter-day justices of the Supreme Court, corporations have First Amendment rights even if it doesn't say so in the corporate charter. See for example, Citizens United v. Federal Election Com'n, 130 S. Ct. 876 (2010) (chilling effect on "people" used to justify finding a First Amendment right of wholly imaginary corporations). 
Paul Merrell

Western Union shares fall on reported CIA news: Associated Press Business News - MSN Money - 0 views

  • (AP) - Western Union slumped 5 percent in trading Friday following a report by the Wall Street Journal that the CIA is building a database of international money transfer data.The report, citing unnamed officials familiar with the program, says the program collects information from U.S. money-transfer companies including Western Union. It is carried out under the same provision of the Patriot Act that enables the National Security Agency to collect nearly all American phone records.The mass collection of financial data includes millions of Americans' financial and personal data.
  • The CIA is barred from targeting Americans in its intelligence collection. But as a foreign-intelligence agency, it can conduct domestic operations for foreign intelligence purposes. The CIA program is meant to fill what U.S. officials see as an important gap in their ability to track terrorist financing world-wide, officials told the newspaper.Western Union said last month it would be spending about 4 percent of its revenue in 2014 on compliance with rules under the Patriot Act, the Treasury Department's Office of Foreign Assets Control and other anti-money-laundering and terrorist-financing requirements.Company spokesman Dan Díaz said that Western Union collects consumer information to comply with the Bank Secrecy Act and other laws. In doing so, the company also protect customers' privacy and works to prevent consumer fraud.Shares of The Western Union Co. fell 90 cents to $16.55 by late afternoon amid a broader market uptick.
Paul Merrell

The Money Changers Serenade: A New Bankers' Plot to Steal Your Deposits | Global Research - 0 views

  • Writing in the Wall Street Journal (“Confessions of a Quantitative Easer,” November 11, 2013), Andrew Huszar confirms my explanation to be the correct one. Huszar is the Federal Reserve official who implemented the policy of QE. He resigned when he realized that the real purposes of QE was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.” (See: www.paulcraigroberts.org) This vast con game remains unrecognized by Congress and the public. At the IMF Research Conference on November 8, 2013, former Treasury Secretary Larry Summers presented a plan to expand the con game. Summers says that it is not enough merely to give the banks interest free money. More should be done for the banks. Instead of being paid interest on their bank deposits, people should be penalized for keeping their money in banks instead of spending it. To sell this new rip-off scheme, Summers has conjured up an explanation based on the crude and discredited Keynesianism of the 1940s that explained the Great Depression as a problem caused by too much savings. Instead of spending their money, people hoarded it, thus causing aggregate demand and employment to fall.
  • Summers says that today the problem of too much saving has reappeared. The centerpiece of his argument is “the natural interest rate,” defined as the interest rate at which full employment is established by the equality of saving with investment. If people save more than investors invest, the saved money will not find its way back into the economy, and output and employment will fall. Summers notes that despite a zero real rate of interest, there is still substantial unemployment. In other words, not even a zero rate of interest can reduce saving to the level of investment, thus frustrating a full employment recovery. Summers concludes that the natural rate of interest has become negative and is stuck below zero. How to fix this? The way to fix it, Summers says, is to charge people for saving money. To avoid the charges, people would spend the money, thus reducing savings to the level of investment and restoring full employment. Summers acknowledges that the problem with his solution is that people would take their money out of banks and hoard it in cash holdings. In other words, the cash form of money provides consumers with a freedom to save that holds down consumption and prevents full employment. Summers has a fix for this: eliminate the freedom by imposing a cashless society where the only money is electronic. As electronic money cannot be hoarded except in bank deposits, penalties can be imposed that force unproductive savings into consumption.
  • for Summers, the plight of the consumer is not the problem. The problem is the profits of the banks. Summers has the solution, and the establishment, including Paul Krugman, is applauding it. Once the economy officially turns down again, watch out.
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    Paul Craig Roberts exposes Larry Summers formula for the banksters to grab money from everyone: eliminate all but electronic-currency and penalize savings. Not mentioned by Roberts, but much of the infrastructure for this is already in place. For example, late last year all recipients of Social Security and VA benefit checks were notified that after March 1, 2013, they would be in violation of the law if they continued to receive paper checks. They were required to enroll in approved electronic deposit programs, all of which are offered by banks. Until about two years ago, people could merely state in writing that they didn't want it and could continue receiving paper checks. But Congress closed that loophole.  (I remain out of compliance.) Debit card is now mandatory, although they have not yet enacted penalties for non-compliance.  So the banksters now get the "float" on virtually all federal SS and VA benefit payments until spent. That's as opposed to the prior Treasury Department drafts whose funds were not in the banking system.   More to the point, the web portal for the federal "Go Direct" program to sign up for direct deposit is in place and debugged. It wouldn't take much beyond a bigger data set to issue debit cards for everyone in the U.S. during a transition to a cashless economy.  The Constitution says gold and silver only for payment of debts; paper currency paved the way for financial abuse of the economy by banksters. Now Summers wants to do away with cash entirely in favor of digital currency with penalties for saving? My life savings must be surrendered to a bank so I can be penalized for saving? And of course moving to all-digital currency would give the spy agencies a much more detailed record of your purchases to work with. The location where you bought that last cup of coffee is instantly available to the NSA? Gimme a break!    
Gary Edwards

Theodore and Woodrow: How Two American Presidents Destroyed Constitutional Freedom: And... - 0 views

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    Judge Andrew Napolitano at his best: summary: "Either the Constitution means what it says, or it doesn't." America's founding fathers saw freedom as a part of our nature to be protected-not to be usurped by the federal government-and so enshrined separation of powers and guarantees of freedom  in the Constitution and the Bill of Rights. But a little over a hundred years after America's founding, those God-given rights were laid siege by two presidents caring more about the advancement of progressive, redistributionist ideology than the principles on which America was founded. Theodore and Woodrow is Judge Andrew P. Napolitano's shocking historical account of how a Republican and a Democratic president oversaw the greatest shift in power in American history, from a land built on the belief that authority should be left to the individuals and the states to a bloated, far-reaching federal bureaucracy, continuing to grow and consume power each day. With lessons rooted in history, Judge Napolitano shows the intellectually arrogant, anti-personal freedom, even racist progressive philosophy driving these men to poison the American system of government.  And Americans still pay for their legacy-in the federal income, in state-prescribed compulsory education, in the Federal Reserve, in perpetual wars, and in the constant encroachment of a government that coddles special interests and discourages true competition in the marketplace. With his attention to detail, deep constitutional knowledge, and unwavering adherence to truth telling, Judge Napolitano moves through the history of these men and their times in office to show how American values and the Constitution were sadly set aside, leaving personal freedom as a shadow of its former self,  in the grip of an insidious, Nanny state, progressive ideology.
Paul Merrell

Amend the Federal Reserve: We Need a Central Bank that Serves Main Street | Global Rese... - 0 views

  • December 23rd marks the 100th anniversary of the Federal Reserve. Dissatisfaction with its track record has prompted calls to audit the Fed and end the Fed.  At the least, Congress needs to amend the Fed, modifying the Federal Reserve Act to give the central bank the tools necessary to carry out its mandates. The Federal Reserve is the only central bank with a dual mandate. It is charged not only with maintaining low, stable inflation but with promoting maximum sustainable employment. Yet unemployment remains stubbornly high, despite four years of radical tinkering with interest rates and quantitative easing (creating money on the Fed’s books). After pushing interest rates as low as they can go, the Fed has admitted that it has run out of tools. At an IMF conference on November 8, 2013, former Treasury Secretary Larry Summers suggested that since near-zero interest rates were not adequately promoting people to borrow and spend, it might now be necessary to set interest at below zero. This idea was lauded and expanded upon by other ivory-tower inside-the-box thinkers, including Paul Krugman. Negative interest would mean that banks would charge the depositor for holding his deposits rather than paying interest on them. Runs on the banks would no doubt follow, but the pundits have a solution for that: move to a cashless society, in which all money would be electronic. “This would make it impossible to hoard cash outside the bank,” wrote Danny Vinik in Business Insider, “allowing the Fed to cut interest rates to below zero, spurring people to spend more.”
  • Business Week quotes Douglas Holtz-Eakin, a former director of the Congressional Budget Office: “We’ve had four years of extraordinarily loose monetary policy without satisfactory results, and the only thing they come up with is we need more?” Paul Craig Roberts, former Assistant Secretary of the Treasury, calls the idea “harebrained.” He is equally skeptical of quantitative easing, the Fed’s other tool for stimulating the economy. Roberts points to Andrew Huszar’s explosive November 11th Wall Street Journal article titled “Confessions of a Quantitative Easer,” in which Huszar says that QE was always intended to serve Wall Street, not Main Street.  Huszar’s assignment at the Fed was to manage the purchase of $1.25 trillion in mortgages with dollars created on a computer screen. He says he resigned when he realized that the real purpose of the policy was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.”
  • Bernanke created debt-free money and bought government debt with it, returning the interest to the Treasury. The result was interest-free credit, a good deal for the government. But the problem, says Lounsbury, is that: The helicopters dropped all the money into a hole in the ground (excess reserve accounts) and very little made its way into the economy.  It was essentially a rearrangement of the balance sheets of the creditor nation with little impact on the debtor nation. . . . The fatal flaw of QE is that it delivers money to the accounts of the creditors and does nothing for the accounts of the debtors. Bad debts remain unserviced and the debt crisis continues.
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  • Bernanke delivered the money to the creditors because that was all the Federal Reserve Act allowed. If the Fed is to fulfill its mandate, it clearly needs more tools; and that means amending the Act.  Harvard professor Ken Rogoff, who spoke at the November 2013 IMF conference before Larry Summers, suggested several possibilities; and one was to broaden access to the central bank, allowing anyone to have an ATM at the Fed. Rajiv Sethi, Barnard/Columbia Professor of Economics, expanded on this idea in a blog titled “The Payments System and Monetary Transmission.” He suggested making the Federal Reserve the repository for all deposit banking. This would make deposit insurance unnecessary; it would eliminate the need to impose higher capital requirements; and it would allow the Fed to implement monetary policy by targeting debtor rather than creditor balance sheets. Instead of returning its profits to the Treasury, the Fed could do a helicopter drop directly into consumer bank accounts, stimulating demand in the consumer economy. John Lounsbury expanded further on these ideas. He wrote in Econintersect that they would open a pathway for investment banking and depository banking to be separated from each other, analogous to that under Glass-Steagall. Banks would no longer be too big to fail, since they could fail without destroying the general payment system of the economy. Lounsbury said the central bank could operate as a true public bank and repository for all federal banking transactions, and it could operate in the mode of a postal savings system for the general populace.
  • The Federal Reserve Act was drafted by bankers to create a banker’s bank that would serve their interests. It is their own private club, and its legal structure keeps all non-members out.  A century after the Fed’s creation, a sober look at its history leads to the conclusion that it is a privately controlled institution whose corporate owners use it to direct our entire economy for their own ends, without democratic influence or accountability.  Substantial changes are needed to transform the Fed, and these will only come with massive public pressure. Congress has the power to amend the Fed – just as it did in 1934, 1958 and 2010. For the central bank to satisfy its mandate to promote full employment and to become an institution that serves all the people, not just the 1%, the Fed needs fundamental reform.
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    In my view, the Fed is beyond salvage. It needs abolition, not a new role. The Constitution grants Congress the power to mint and coin money, not a group of rent-seeking banksters. 
Paul Merrell

Own Your Own Devices You Will, Under Rep. Farenthold's YODA Bill | Bloomberg BNA - 0 views

  • A bill introduced Sept. 18 would make clear that consumers actually owned the electronic devices, and any accompanying software on that device, that they purchased, according to sponsor Rep. Blake Farenthold's (R-Texas). The You Own Devices Act (H.R. 5586) would amend the Copyright Act “to provide that the first sale doctrine applies to any computer program that enables a machine or other product to operate.” The bill, which is unlikely to receive attention during Congress's lame-duck legislative session, was well-received by consumer's rights groups.
  • Section 109(a) of the Copyright Act, 17 U.S.C. §109(a), serves as the foundation for the first sale doctrine. H.R. 5586 would amend Section 109(a) by adding a provision covering “transfer of computer programs.” That provision would state:if a computer program enables any part of a machine or other product to operate, the owner of the machine or other product is entitled to transfer an authorized copy of the computer pro gram, or the right to obtain such copy, when the owner sells, leases, or otherwise transfers the machine or other product to another person. The right to transfer provided under this subsection may not be waived by any agreement.
  • ‘Things' Versus SoftwareFarenthold had expressed concern during a Sept. 17 hearing on Section 1201 of the Digital Millennium Copyright Act over what he perceived was a muddling between patents and copyrights when it comes to consumer products. “Traditionally patent law has protected things and copyright law has protected artistic-type works,” he said. “But now more and more things have software in them and you are licensing that software when you purchase a thing.” Farenthold asked the witnesses if there was a way to draw a distinction in copyright “between software that is an integral part of a thing as opposed to an add-on app that you would put on your telephone.”
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  • H.R. 5586 seeks to draw that distinction. “YODA would simply state that if you want to sell, lease, or give away your device, the software that enables it to work is transferred along with it, and that any right you have to security and bug fixing of that software is transferred as well,” Farenthold said in a statement issued Sept. 19.
Paul Merrell

ITAR-TASS: Economy - Gazprom signs agreements to switch from dollars to euros - 0 views

  • Gazprom Neft had signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts, the oil company's head Alexander Dyukov told a press conference. "Additional agreements of Gazprom Neft on the possibility to switch contracts from dollars to euros are signed. With Belarus, payments in roubles are agreed on," he said. Dyukov said nine of ten consumers had agreed to switch to euros. ITAR-TASS reported earlier that Gazprom Neft considered the possibility to make payments in roubles under contracts. Some contracting parties agree to switch from dollars to euros and Yuans. "The so-called Plan B is already partially worked out. The switch of dollar contracts to euros and Yuans is agreed on with some of our contracting parties. Under consideration is the possibility to switch contracts to roubles," Dyukov said at the St. Petersburg International Economic Forum.
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    BRICS nations continue their march away from the U.S. dollar
Paul Merrell

ISIS: Potentially 'Thousands' of Online Followers Inside US Homeland, FBI Chief Warns -... - 0 views

  • There may be as many as thousands of people inside the United States consuming online “poison” from ISIS alone, and, “I know there are other Elton Simpsons out there,” FBI director James Comey warned today, referring to one of the men who opened fire outside of an event in Texas earlier this week celebrating artists’ portrayals of the Prophet Mohammad. “We have a very hard task” in trying to identify and stop anyone inspired to launch an attack inside the U.S. homeland, Comey told ABC News’ Pierre Thomas and a small group of reporters. Such efforts have become particularly challenging because ISIS has reconfigured and redefined terrorist recruitment, according to Comey. In fact, while the FBI is trying to find that so-called needle in a haystack, “increasingly the needles are invisible to us,” he said.
  • As recently as two years ago, someone in the United States who wanted to consume “radical poisonous propaganda” would have to seek that out on the Internet, most likely on a jihadist web forum. So the FBI focused its investigative efforts on those jihadist web forums, Comey said. But “that has changed dramatically, especially with [ISIS] and their use of social media,” where on phones in people’s pockets they ask Americans and other foreigners “to travel to the so-called caliphate to fight” but simultaneously say, “If you can’t travel, kill where you are,” according to Comey.
  • “It’s almost as if there is a devil sitting on the shoulder saying, ‘Kill, kill, kill, kill’ all day long,” he said. “[They are] recruiting and tasking at the same time. … In a way, the old paradigm between ‘inspired’ and ‘directed’ breaks down here." And with that distinction “no longer relevant," is it all the more challenging for the FBI to determine whether someone seeking jihadist propaganda online or even promoting themselves is “a talker or a doer,” as Comey described it. There’s also the question, “Where are they on the pathway from ‘talker’ to ‘doer’? And that’s really hard,” Comey added. Those are the exact types of questions the FBI faced with Simpson. Comey acknowledged today that Simpson had been under FBI watch since 2006, when the agency opened an investigation on the Phoenix-area man based on information suggesting he wanted to join al-Shabab, the al Qaeda-linked group in Somalia. Simpson was ultimately indicted on terrorism charges and convicted, but due to questions over the government’s case he never went to prison and was sentenced to probation. The FBI officially closed its case into Simpson last year.
Paul Merrell

Comcast Plans to Drop Time Warner Cable Deal - Bloomberg Business - 0 views

  • Fourteen months after unveiling a $45.2 billion merger that would create a new Internet and cable giant, Comcast Corp. is planning to walk away from its proposed takeover of Time Warner Cable Inc., people with knowledge of the matter said. The decision marks a swift unraveling of a deal that awaited federal approval for more than a year. Opposition from the U.S. Justice Department and Federal Communications Commission took shape over the past week, leaving officials of the two companies to conclude the deal wouldn’t pass muster.
  • Comcast’s board will meet to finalize the decision on Thursday, and an announcement may come as soon as Friday, said one of the people, who asked not to be identified because the information is private. Time Warner Cable executives plan to tell shareholders on an earnings conference call next Thursday how the company can survive independently, the person said.
  • On Wednesday, FCC staff joined lawyers at the Justice Department opposing the transaction. That day, FCC officials told representatives of the two companies they are leaning toward concluding the merger doesn’t help consumers, a person with knowledge of the matter said. The FCC’s plan to call a hearing effectively killed the deal’s chances of success. An FCC hearing can take months to complete and drag out the approval process beyond the companies’ time frame for completion. Bloomberg News reported last week that Justice Department staff was leaning against the deal. Senators including Al Franken, a Democrat from Minnesota, also voiced opposition. “Comcast’s withdrawal of its proposed merger with Time Warner Cable would be spectacularly good news for consumers,” Michael Copps, a Democratic former FCC commissioner working with Common Cause to oppose the deal, said in a statement.
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    Looks like all that online lobbying from the internet community worked. 
Gary Edwards

Signs That China Is Making A Move Against The U.S. Dollar - America Conservative 2 Cons... - 0 views

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    Two articles about China taking over America appeared today on the American Conservative web site. Incredible stuff. The first deals with the dollar, and how China plans on replacing it. The second article is focused on the Chinese take over of businesss and American assets, including American land. At the heart of both articles is the problem of out of control US DEBT tha tis destroying this country. Intro: "On the global financial stage, China is playing chess while the U.S. is playing checkers, and the Chinese are now accelerating their long-term plan to dethrone the U.S. dollar.  You see, the truth is that China does not plan to allow the U.S. financial system to dominate the world indefinitely.  Right now, China is the number one exporter on the globe and China will have the largest economy on the planet at some point in the coming years.  The Chinese would like to see global currency usage reflect this shift in global economic power.  At the moment, most global trade is conducted in U.S. dollars and more than 60 percent of all global foreign exchange reserves are held in U.S. dollars.  This gives the United States an enormous built-in advantage, but thanks to decades of incredibly bad decisions this advantage is starting to erode.  And due to the recent political instability in Washington D.C., the Chinese sense vulnerability.  China has begun to publicly mock the level of U.S. debt, Chinese officials have publicly threatened to stop buying any more U.S. debt, the Chinese have started to aggressively make currency swap agreements with other major global powers, and China has been accumulating unprecedented amounts of gold.  All of these moves are setting up the moment in the future when China will completely pull the rug out from under the U.S. dollar. Today, the U.S. financial system is the core of the global financial system.  Because nearly everybody uses the U.S. dollar to buy oil and to trade with one another, this cre
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