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What Would You Do?
What Would You Do?
Courtesy of Paul Price
Suppose you had the technical ability and raw materials to print up counterfeit dollars, euros or yen that were identical to the real things. Assume you could spend them as fast as you could create them with no fear of any repercussions.
Would you prudently print up only as much fresh currency as you needed for your current lifestyle? Would you create just a bit more than that to help relatives or those in need?
It is most likely you’d have your printing press running 24 hours a day, seven days a week. Becoming the richest person in the world would confer great power upon you.
You could rationalize this action because you plan to use the money for good purposes. Imagine the warm feeling you’d get by giving every person in America one million dollars, no strings attached.
Then think about what would occur almost immediately afterwards.
The “easy come-easy go” principle would take effect. Car dealer inventories would be cleaned out instantly. Wal-Mart, Target, Kohl’s, Nordstrom, even high-end Saks Fifth Avenue and Neiman Marcus would have nothing left to sell.
Smart manufacturers and merchants would withhold inventory because they knew the abundance of money, with no new extra supply of goods, would drive prices through the roof.
The people controlling today’s currency issuance are well aware of this. That is why newly minted funds from QE (quantitative easing, A.K.A legalized counterfeiting) programs never reach the general population.
Immediate distribution of wads of money to everybody would quickly destroy the financial system.
Doing it gradually, under the average person’s radar while keeping the benefits contained to a small group (politicians and bankers) allows favored individuals to add great wealth without immediately noticeable damage.
Before 2008’s crisis Central Banks did not believe they could get away with simply conjuring money out of thin air. The ‘bond vigilantes’ would have demanded higher and higher interest rates on government debt, busting budgets around the world.
First America’s Zero Interest Rate Policy (ZIRP) and later Europe’s Negative Interest Rate Policy (NIRP) took care of that major hurdle. Those policies destroyed the rate setting ability of the debt auction markets by injecting shill buyers (the Central Banks) to bid up bond prices on an unlimited basis.
The Bank of Japan (BOJ) started slower but has now surpassed both the US and Europe in terms of fiat-based money creation versus the size of GDP.
Do counterfeiters keep hordes of phony $100 bills in their home safes? No. They want to spend that fake cash ASAP, turning it into real assets whose value cannot be diluted away as the supply of money expands dramatically.
That is why global real estate, stock prices, corporate bonds, fine art and antiques have exploded to the upside. Even gold has been showing signs of life recently.
When fiat currencies finally collapse these hard assets can be converted back into whatever is serving as ‘cash’ in the new environment.
The BOJ recently bought over $5.6 billion of foreign denominated stocks in just one week. Every yen devaluation makes those stocks more expensive when reconverted back into local currency.
The one asset class that central banks don’t want to touch is sovereign debt. Central banks know many of these foreign bonds will end up "toxic" -- values slashed or in default. The central banks need to pawn off as much of the risk as possible to private entities and citizens rather than leaving themselves exposed when these bonds officially go bad. They will leave privately owned banks, insurance companies, individual investors, fixed income mutual funds and pension plans on the hook when the shit hits the fan, sometime in the future.
Unlimited money printing by the world's central banks will, by definition, devalue the currencies due to too much money chasing the same number of goods and services. Excessive money printing will ultimately make fiat-based currencies worth much less. This is already occurring right now in Venezuela and Argentina.
So stop worrying about whether stocks are going to crash. The real danger is holding major assets in ‘risk-free’ fiat-based money.
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Well theres no way to know about your situation on the latter but in the former as far as I can recall there has never been a law here in America that forces you into a private transaction or the government taxes/penalizes you.
Its unprecedented.
Next we will be forced to actually buy the car whether we can afford to or not? And if not, recieve a subsidy from your neighbor stolen from him by .gov at the point of a gun or threatened with jail time?
But perhaps if we were to think of buying a product or service from a private company as a tax instead of a purchase, it would all make sense somehow and we could finally do away with the middle man, government. You see, in this brand new paradigm of society the car dealership is .gov and the mechanics and salesmen blocking traffic and herding you onto the property are really government employees and you are, naturally, its "customer".
Crazy, yes? ;-)
Yep, if we make our own fiat, off to Jail.
But CBs do it every day!
http://en.wikipedia.org/wiki/Thomas_Edison
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wiki
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Views on money
Thomas Edison was an advocate for monetary reform in the United States. He was ardently opposed to the gold standard and debt-based money. Famously, he was quoted in the New York Times stating "Gold is a relic of Julius Caesar, and interest is an invention of Satan."[92]
In the same article, he expounded upon the absurdity of a monetary system in which the taxpayer of the United States, in need of a loan, be compelled to pay in return perhaps double the principal, or even greater sums, due to interest. His basic point was that if the Government can produce debt-based money, it could equally as well produce money that was a credit to the taxpayer.[92]
He thought at length about the subject of money over 1921 and 1922. In May 1922, he published a proposal, entitled "A Proposed Amendment to the Federal Reserve Banking System".[93] In it, he detailed an explanation of a commodity-backed currency, in which the Federal Reserve would issue interest-free currency to farmers, based on the value of commodities they produced. During a publicity tour that he took with friend and fellow inventor, Henry Ford, he spoke publicly about his desire for monetary reform. For insight, he corresponded with prominent academic and banking professionals. In the end, however, Edison's proposals failed to find support, and were eventually abandoned.[94][95]
Which is why he won the "Thriller at Wardenclyffe"
Evil is becoming increasingly see through.
Edison was probably a bit warped in the head because JP Morgan kept him bent over. It's my understanding that he was NOT a good guy.
It's my understanding that he was NOT a good guy.
It's my understanding that that's putting it REALLY mildly. Dude was an utter scumbag.
if morgan bent him over i would be more
critical of morgan, that is just me. as in
baseball, the wins and losses are attributed
to the pitcher, not the catcher.
re: tesla ... another story.
Thus it is apparent that Thomas Edison, as well as Henry Ford, was a Centralized Planning Socialist Advocate....a fascist.
That is the reason it was not adopted in 1922 America. Americans rejected Socialism until it was thrust upon them by the manufactured crisis of the Great Depression and instituted by Frnaklin Roosevelt's Presidential DICTATES.
Thank God Almighty that Edison's plan was rejected.
A Greenie to you for exposing Edison for who he was...a National Socialist.
i don't agree with that interpretation and conclusion.
he may have been a national socialist among barons ,
a baron among barons, expecting privileged access to
assets and influence, accepting of the idea of monopolies
in particular sectors or in general. there were so many
influential and financially powerful persons at the time/
probably in the closet today/ who fully embrace fascism and
genocide. actually, you need not look too hard to find
them today. but, anyway ....
it seems there are certain sectors of a functioning markets
where competition is not a benefit to most of the
population up to the 99% or more. legal money is the main element
of the economy that begs the question "if you accept the idea
of legal money, paper representation of currency, should there
be a single monopoly that controls it's production and distribution
and exchange rules and laws, or not?"
.
if you accept the notion
of controlled legal money, who but "the people" constituting
the "republic"(state) should control those monopolistic powers?
for whose benefit should it be issued or exercised?
the germans? the french or british bankers? the mercantile
barons of post capitalist powerhouse families?
it seems to me the greater part of the cause of wwII, the cold war,
etc..to today's conflicts ongoing stem from that which was adopted
and per-mutated upon the rejection of an edison like amendment
to the fed or "legal money" structure.
we will see/are seeing.
.
different but perhaps related question. should there be a
citizen requirement for holding high office in a nation or for
voting? isn't that, likewise, a national socialist leaning
restriction? why should high officials be concerned with
national populations when they can parlay their "representative" position
into great personal wealth? could not that theoretical prohibition
be characterized as "national socialist" or at least leaning in that
direction?
hmm?
This has got to be the final straw, eh? Revolution at day break??
So the Obamacare taxes/penalties will affect some 6 million persons, plus assorted family members. That's what, around 3% of the population? Too small a sample to instigate a revolution. As Phil Ochs pointed out, it really wouldn't interest anyone outside a small circle of friends. https://www.youtube.com/watch?v=ta_iKeH4tsg
That 3% were the total of active combatants in the American Revolution out of the sum of colonials.
Small numbers can, and do, make a difference.
Big + for Phil Ochs. 50 years and it could have been written yesterday.
Cancel the revolution. The weather is cold and sleeting here. Burr!
I wouldn't waste a penny, OR get greedy! I'd simply buy every politician, public servant, LEO, clerk, Etc... that was willing to be bought, then have them over for a party, bend 'em over and screw 'em in the ass with a barbed-wire wrapped dildo til they pass out, next stop, the guillotine.
Then I'd place all the heads on pikes, open my lawn chair, (bought previously w/hard earned $$) and sit back enjoying the view.
If everybody in 'Murika was given $1M wouldn't a lot of illegal aliens go home?
tell the natives to go find their own country?
.
The Battle Of Algiers HD
https://www.youtube.com/watch?v=y-7j4WVTgWc
I like the articles that tell it like it is...from the article--"The central banks need to pawn off as much of the risk as possible to private entities and citizens rather than leaving themselves exposed when these bonds officially go bad."
Which is the definition of this US credit bubble, is it not? (because the private entities & citizens cannot get their hands on the inflated counterfit money as it was handed out at the Fed discount window {NIRP}), the private entities & citizens asset purchases are instead converted into credit contracts (notice current credit bubble).
To be reabsorbed after expected crash (by credit contract & legal repossession of it) that, I think, is the difference between CB counterfit (and related assets they acquired during the counterfit seasons... QE) held by counterfitters & friends, and private entities & citizens (assets acquired & held by credit contract).
All this conterfitting assumes there will be some judge to 'rightly' enforce the credit contract repossession.
wwxx
from the article--"You could rationalize this action because you plan to use the money for good purposes. Imagine the warm feeling you’d get by giving every person in America one million dollars, no strings attached.
Then think about what would occur almost immediately afterwards."
But that isn't what the USA leadership chose to do in late 2007, they had the choice to create a warm feeling, but that choice was never on the table--instead they chose the $700B swindle, ZIRP, & QE introducing it with the Friday-nite TV fireside chat involving The Bernanke, Paulson, Cox, & Baird, to convince the US Congress & GW Bush to further their scheme of chaos, law. (which 90% of the US citizens were in fact against)
As a result of intentional leadership direction, worldwide economic chaos quickly ensued, dumping the wreckage at the feet of whomever was to become US President in 2008. That is the fact of history.
GW Bush arrived in his Presidency year 2000 accompanied by 911, war, and unjustified imprisonment, and exited with the $700B swindle in 2008. Continued intentional leadership direction of the US Congress & related circus, empty promises of 'hope & change-- President Barack Hussein Obama' acquired The US Presidency. They continued to plow the bottom of the ditch that was first opened in 2000 & have continued unrelenting 15 years later. The same cronies in the US Congress lead with rediculous leadership thru law, the same US Supreme Court, continue their path destructing sound governance.
"Then think about what would occur almost immediately afterwards."
Under proper national leadership the provision of those that have debt, should be able to pay their debts with the $1M/citizen inheritance. Bankruptcy would become a matter for only those that deserve to fail.
The inheritance to those citizens without debt, shall use their money as they see fit.
I think the ability for a bank to survive, will no longer be based on the FED discount window, yeah if they want deposits, they should get it from citizens that now hold the inheritance money. And what about all that trade that would immediately follow such a payment of $1M/citizen...let the natural trade figure it out, it can't be any worse than what the last 15 years of chaos has provided. These investment firms that claim 'I'm sorry' for blowing your contract becomes somewhat a thing of the past, but there are always some that need the thrill.
Will some citizens immediately be hornswaggled out of their inheritance?...probably, but at least, the citizens had the equilizing ability to control their inheritance for a time.
Would the Casinos get hurt, or the insurance guy, or the car salesman...of course not!
Industry & even new industry would be ventured based on the $1M/citizen inheritance. Home ownership, personal education & health among many other things should flourish. Concern over retirements & pension plans should dry up, along with many other present day foolish schemes. I mean lets be realistic, could you not figure out how to live the rest of your life on $1M?
Crime should drastically subside.
Good new laws would prevail, when truely representative leadership must take power. Bad laws would need to be revised & eliminated. Then Electorial College & the corruption of it, could easily be obliterated. It would probably take more than one attempt to get the present day corrupted voting laws wiped out, but probably not much more than a year or two. And if their is guillotines & hangings & retributions...so be it, a new judgement must enter the citizens minds when the proper leadership provides for it.
Lets put it this way, I would trust a $1m/ citizen inheritance anyday over this intentional economic scheme of death & destruction that currently provides no control from the citizens to prevent crushing people the world over.
wwxx
Your exactly right, they assume that some judge will rule their way forthe counterfitters. I think once that judge and many of the people in the country including the union pensions of cops and state workers see how they got screwed, things won't go as plan. Also remember this is the US. We aren't the same people of the great depression, we are totally different. I don't think we could handle an implosion of our currency and economy well.
No comment.
So it's ok for Bankers to counterfeit but not ok for us?
What a stupid article.
I think I'd print up "get the hell outta Dodge" money and get the flock out before this all turns into Lord of The Flies.