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Santelli Stunned As Janet Yellen Admits "Cash Is Not A Store Of Value"
Intended warning or unintended slip? After Alan Greenspan's confessional admission that
"Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it,"
we found it remarkable that during the Q&A after her speech today that Janet Yellen, when asked about negative rates, admitted that
"cash in not a very convenient store of value,"
seemingly hinting at Bernanke's helicopter and that there will be no deflation in The US ever...
Rick Santelli then sums it all up perfectly...
"deflation is clearly the boogeyman... and the only thing that will save the middle class."
* * *
Yellen: "cash is not a convenient store of value"
* * *
So if cash is not a very convenient store of value... what is? Biotechs? As Rick Santelli explains... this is the scariest thing she has ever said...
Santelli: "deflation is the boogeyman... and the only thing that can save the middle class is lower prices"
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Did you not read the article? Cash is not a very convenient store of value. You should renegotiate your pay structure and get something more tangible in return for eating horse meat. Will your employer pay in something actually tangible? No... ah that's too bad. Sorry to hear about your misfortune. Maybe you can find a real job that actually pays something of value for labor of real value.
You should try backpage.
Yellen is a huge improvement over Bernanke. Bernanke blatantly lied and it had to be purposeful.
Yellen has said before that people should be acquiring assets (yeah, we all know that isn't easy for most people but still, it is real sound advice). Now she advises that cash is not a convenient store of value which is wholly consistent with the preceding advice. Yes, we've been warned. That is far more than Greenspan or Bernanke gave us.
Electronic money - the flow and amount controlled by a central control (e.g. the Fed)
part of a technocracy
long, boring but important presentation, about the planned not-capitalist society model
https://www.youtube.com/watch?v=rHWrceNajf4
yeah they ALWAYS warn us. it's part of the voodoo I suppose
please note: I'm not saying they'll succeed
Cash will soon have no cash value.
Please give me all of your worthless cash.
Not that I disagree, mind you. The Fed is lowering the purchasing value of cash daily.
Yellen: Please swap cash for stocks, bonds (especially USTs)and discretionary goods (GM vehicles).
Swap = Trade Agreements or treaties = Slave Labor Overseas where no one can Audit the Work Practices.
read what you like into it but the word 'convenient' is key. She is not admitting to anything. She is just observing. Leaving that word out of the quote gives it an entirely different meaning....it may be true but she just did not say it the way it is quoted.
But some things are just not right.
Open these CRB's graphs in separeate Tabs and tell me whats wrong (use other Commodities as well cocoa- natural gas-oats- orange juice- lumber - light crude). Its the short of shorts until the king dollar gets it in the neck
http://www.nasdaq.com/markets/coffee.aspx
http://www.nasdaq.com/markets/wheat.aspx
http://www.nasdaq.com/markets/sugar.aspx
http://www.nasdaq.com/markets/lean-hogs.aspx
Funny, I heard her say something completely different. I heard, "Buy things made out of metal or just plain metal. Stock up on coffee, tp for my bunghole, and knowledge of how to make/grow/obtain food on my own."
If cash loses its value, what will stocks, bonds and stationary automobiles going to get you? I know you will be fine but perhaps the people who hear her saying get out of cash and into the market really don't have the common sense necessary to survive. The good news is that most people simply cannot afford to tie up their cash in stock/bonds/discretionaries. Those hit hardest by this should be the unproductive upper class and, frankly, those who have been supporting this system the longest and so deserve it most.
she got that line from Corzine....
If you held a dollar you earned in 1963 until now you would be real disapointed in its worth.
Lucky I saved only silver dollars too bad they dont let you young ones have them.
http://goldsilver.com/buy-online/american-silver-eagle-1oz-2015/
They are running about $21 each right now. .71 oz pre-'64 silver coins are a bit cheaper, about $14 per dollar face value.
http://goldsilver.com/buy-online/90-percent-silver-coins-100-dollar-face...
Give us your poor, wretched, and worthless as they are a store of wealth.
- Explains open borders!!
People are a store of wealth, their debt, their future consumption, and a large supply of labor keeps wages low = a Force Multiplier for the Economy and the Wealthy
Sir, are you implying that the creation of BONDS in exchange for majic fake "money" is some form of human slavery / BONDAGE racket? ANd that those who trade in such things are actually just abominable, hell bound, SLAVE TRADERS?
Yep. That's why people in 3rd world economies have lots of children. Store of wealth (creation).
Look for a spike in the USSA birthrate as reality sinks in: we are the world's richest 3rd-world economy.
Where can I buy some of these stores of wealth? Are they house trained?
Right up until they revolt and burn the place down.
OT, but i just saw this on reddit and thought it was pretty cool. i imagine other's here on ZH will dig it too.
http://i.imgur.com/LMVGeBJ.jpg
Yeah cool, but it will get you drug out of your car and tazed. Off of my property I will say yes sir and no sir until it doesn't work.
I'd rather be tazed and jailed over the weekend than allow some cops to gin up a felony beef.
That fat, old bitch is bat shit crazy.
no one else wanted the job. they knew what is coming and there's no way out.....so she won by default. she was too stupid to say no.
I, uh, uh,...am of course...I am of course AHnerd.....to be, uh, be NAWminated for.....for....."
Now that's cruel,
and spot on;)
Guys, a good sign of any institution that is about to crash is that they finally give the head job to a woman. Oldsmobile, HP, GM, Hillary at State, John Kerry at State, The B-Ho at 1600 Pennsylvania Avenue, Pelosi. The list goes on.
fuck......TARABEL IS RIGHT!!!!!!!
They know it's gonna crash. They don't want to be the front person when it happens. It's like musical chairs with nailguns.
Kerry+1
She isn't particularly FAT. She's hideous, and has the weirdest floppy lips I've ever seen, but it's not like she's morbidly obese. So she's got that going for her.
No lowering prices in this ponziconomy, which is why the FED juices Wall Street to keep prices going up to crush the middle class and enrich the elites and the kleptoligarchy - the bankster/corporate/insurer/.gov cabal that feeds off the population one soul at a time.
"...ponziconomy..."
Her sack that hangs under her chin is a store for her balls.
FEDERAL RESERVE NOTE...
what else do u need to now....?
We refuse to acknowledge the definition of "note."
Sincerely,
Folks
yeah, and lets also refuse to acknowledge aint shit federal about the FEDERAL RESERVE...
now, sleep....sleep....sleep.....
https://www.youtube.com/watch?v=fZY8jUuEzJQ
she meant to say
"Cash isnt a store of value u dumb mother fuckers. next question please..."
Bitcoin, I need to know that Bitcoin is a transaction only currency which will replace all other currencies, and which implies that gold is the only currency which is a store of value. the fed and Yellen is nibbling around the edge of this contentious issue, when the real Bitcoin arrives the central bankers have no more validity. there is no inflation, no deflation, debt is priced according the market (and if you want price controls then come right out and say so). i think their plan is fuck things up royally (done and done) and then get out of the mess by posting a global transaction only electronic currency. such a currency would make gold and silver the perfect choice for nonelectronic barter.
You watch that movie "Looper"?
I think you confused it with the movie In Time.
A +1 upon your House.
Would it still be referred to as barter if there was an intermediate form of exchange, such as coins / bars / sea shells?
bitcoin will be a store of value, just like gold, but you can transact on it. However you will price in dollars. everyone will know dollars go down over time and btc up in the long term. that doesn't mean people will stop using dollars, on the contrary.
And just who's network will you be transacting upon? Who's device will it be? Who's software? Who's electricity?
I'm not an admiral but I play one in the bathtub. Ecurrancy is a trap.
Because I want to tracked every second of my life.
Bitcoins for peons will be banned. Packet sniffers will be used to find any machine on the blockchain. They will be siezed by governments, and held by central banks, who will immediately issue paper currency based on fictional amounts of bitcoins.
I wish I could head to the bank and turn those notes in for real money like back in the day. I like reading the stuff on the old bills-
http://dollardaze.org/blog/?post_id=00748
gee...wonder why they made those changes...
S A R C /
You still can. The local coin store will make the trade for you. I think it was Reagan who re-legalized the private ownership of gold and silver.
Gerald Ford.
Correct.
http://www.presidency.ucsb.edu/ws/?pid=59185
Executive Order 11825
By virtue of the authority vested in me by section 1 of the Act of August 8, 1950, 64 Stat. 419, and section 5 (b) of the Act of October 6, 1917, as amended (12 U.S.C. 95a), and as President of the United States, and in view of the provisions of section 3 of Public Law 93-110, 87 Stat. 352, as amended by section 2 of Public Law 93-373, 88 Stat. 445, it is ordered as follows:
SECTION 1. Executive Order No. 6260 of August 28, 1933, as amended by Executive Order No. 6359 of October 25, 1933, Executive Order No. 6556 of January 12, 1934, Executive Order No. 6560 of January 15, 1934, Executive Order No. 10896 of November 29, 1960, Executive Order No. 10905 of January 14, 1961, and Executive Order No. 11037 of July 20, 1962; the fifth and sixth paragraphs of Executive Order No. 6073, March 10, 1933; sections 3 and 4 of Executive Order No. 6359 of October 25, 1933; and paragraph 2(d) of Executive Order No. 10289 of September 17, 1951, are hereby revoked.
SECTION 2. The revocation, in whole or in part, of such prior Executive orders relating to regulation on the acquisition of, holding of, or other transactions in gold shall not affect any act completed, or any right accruing or accrued, or any suit or proceeding finished or started in any civil or criminal cause prior to the revocation, but all such liabilities, penalties, and forfeitures under the Executive orders shall continue and may be enforced in the same manner as if the revocation had not been made.
This order shall become effective on December 31, 1974.
GERALD R. FORD
The White House,
December 31, 1974.
Silver Ownership was not ever illegal under United States Law.
Unfortunately I cannot prove a negative.
But unless you can demonstrate valid and verifiable evidence to the contrary in support of your assertion...
Correct statement. The Crime of 1873 removed the silver standard ( except for specially marked foreign trade dollars ) but didn't outlaw silver possession.
They demonitized silver to prevent the Comstock lode strike from making it easy for mere peons to pay off their mortgages. When you see a big crime in progress, look for a banker.
SANTELLI FOR PRESIDENT
He be a good, prezzy din.
(From the chronicles of the free shit army.)
Note: there is no tense in Pigeon English.
Were you sure there will be no tense in pigeon english?
this is that Blazing Saddles moment, when Cleavon Little puts a gun to his own head, and says don't shoot or the nigger gets it.
Only they will pull the trigger first, and then try to make the self-hostage threat.
Holy Shit. .... these fuckers are insane. ....and if you do NOT hold physical Gold and Silver you are brain dead !
Give yourself the boot.
silver's cheaper and you get more weight for your dollar so I've stacked tons o' silver me hearties!!
You also have failed to store up any value. Ponder that granny.........
If the USD$ is worthless, so are US bonds.
A pile of shit?
Stocks worth less than shit?
Hey Stanley, we need another translation of Yellenese.
Stocks are officially worth less than poop. Check this out:
http://www.iflscience.com/health-and-medicine/sell-your-poop-13k-year-an...
my first executive order as president, my new fed board is:
1. rick santelli
2. jim grant
3. paul volcker
Old Skool my type of peeps.
How about Charlie Manson in the new Executioner of the Banksters Agency
Too old now. Even Janet could probably outrun him.
fuck Volcker... The minute he left the FED he went on Rothschild's payroll...
"fuck Volcker... The minute he left the FED he went on Rothschild's payroll..."
Wouldn't you?
Volcker
20% interest rates.....that was fun.....can we do it again?
My first executive order:
The FED is dissolved and any attempt by any branch or government to manipulate or control any market is prohibited, and any person attempting to do so will be immediately executed.
You probably want to think about that again.
What would you do if the banks put interest rates at 20%, so that to buy a house you pay 20%. I think prior to the Great Depression and well into it the banks were tightening up money in the Economy going back maybe to 1880 or further.
Several Devices in the Regulations can help:
- a minimum interest rate would allow savers to get interest on savings accounts and CD type instruments (called a floor), say a minimum of 4% for the FED for the USA Economy?
- a maximum interest rate would keep banks from making debt slaves out of all of us (called a ceiling), say max of 11% for the FED
I can't think of any others right now
- Thresholds could be used where small depositors could make Interest on savings, but exclude wealthy from this advantage for the poor, but the total number of accounts would have to be determined maybe
you know what? life goes on... and it didn't take a Great Depression for us to see those rates... check out the prime rate history in the US... guess what, people were still taking out loans and mortgages even in the face of the numbers you see here...
http://www.fedprimerate.com/wall_street_journal_prime_rate_history.htm
Thank for the chart. Looks like it only goes back to after World War II unfortunately.
We probably called people fools for buying houses around 1980, what do you call people that bought houses from 2003-2008.
Life goes on but not after buying a house at 12% or higher in an economy where jobs are being cut, pensions cut, retirements lost, and strategies were to cut labor costs in any take over or merger.
W I N
Whip Inflation Now
gotta do it more slowly. first change the mandate to a stable $ based on basket of trade partners. then reintroduce convertibility into silver. then madate the fed is ONLY the lender of last resort, as in operates only the Discount Window and has no business doing anything else like open mkt operations. then during a decent economic expansion, you dissolve it.
My EO -
Fire the UN.
A few office fires should collapse the structure.
The laws of physics work differently in Manhattan.
My new Fed board is vacant, and I start collecting the long-standing 100% tax on private issue currency effective immediately.
I upvoted you, sometimes "Silence is Golden"
Goldman picked a winner....dumber than a bag of hammers.
Actually, Yellen is correct... Which is why you should be getting your hands on 'things of value' as much as you can...
My concept & definition of 'things of value', however, is likely very different...
The way she said it is correct. It is incoveinent. It loses value about all the time, it can burn, it's not safe to walk around with much of it. Oh, and to your point, look at Quigley...Money is anti-wealth. Goods are wealth that you have, money (debt money or FRN's) is a claim on wealth that you don't have:
“The value of goods are expressed in money, while the value of money is expressed in goods. Money and goods are clearly not the same things, but are exactly opposite things. Goods are wealth which you have, while money is a claim on wealth which you do not have. Goods are an asset; Money is a debt. If goods are wealth; money is clearly not wealth, it is negative wealth, maybe even anti-wealth.”
– Quigley, Tragedy and Hope, pg. 44
Thanks Stanley.
Therein lies the rub""Goods" are not easy to hold protect maintain conceal or transact. Their value is intrinsic which is their strength. This is a timing issue. Cash serves a purpose until the uninformed recognize it as manipulated paper and no longer accept it for goods or services. Your calculation is when and how fast this change occurs. Things to consider:
Cash in a bank or invested is susceptible to you being shut out from getting iat it by those who are in charge of this fiasco. You have to see the straws in the wind to anticipate that since they always tip off their friends
Cash in the mattress is readily obtainable but you have to be nimble and quick or the shelves will be bare. Reaction to impending weather disasters give some clues as to how this goes down. A little thought and scoping out the terrains goes a long way .
Ultimately I choose a little bit of everything. Convenient electronic funds, ready accessible cash, run with the herd in the Stacked market, some PMs and canned food and ammo. Never completely happy, but not out there in my birthday suit.
Unsustainably different too.
No surprise with me.
Zionist thief and shill she is.
The banksters need to repay us.
Like being surprised that a dog would lick his ass.
April fools day is next week.
Is it this week on the Jew calandar?
It's waaaaay more convenient than lugging around these darn stock certificates and autonotes to pay for my spam dinners.
Now I'm all confused.
Lock down Texas and Utah.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered." Thomas Jefferson.
Is this really that surprising? Since the creation of the Fed, the dollar has lost 95% of its value.
try telling folks that in a crowded bar next time your out...
and report back to us on the preponderance of resposes you receive...
disclaimer: make sure your packin....
You assume, incorrectly IMO, that the folks will understand a word of that. Common Cause and effect, so to speak.
They're idiots and have no clue.
Devaluation, what's that supposed to mean.
Did I lose weight or something.
Doh.......
few do. buts its always been the few who led the revolts. you get 10% of the populace: to pledge our fortunes, our lives and our sacred honor.....and you can get some shit done. but given public education, few know what these words mean
Some free advice below -
https://www.youtube.com/watch?v=YlOxiwGLAkY
Wow, she's not even retired yet.
You mis-spelled retarded. And you are wrong.
.
The only store of value now is HUMAN SERVATUDE
Vatican aliens own your birth certificates.
Slaves since 1933.
Don't blame me. I voted for Kodos for President!
Regrettably, even that's being bid down vis-a-vis automation. s/VA/VI ? I can;t recall
Thank you Captain Obvious.
This just in: There's no gold in Fort Knox.
Even Capt. Obvious is misunderstood by 99.9%
Santelli plays chess; serves CNBC checkmate three times a week.
Harry Reid has punched himself out of Congress.
Jew to oversee commie senate.
McConnell still hiding.
that's the cue ... time to stack HARD!!
oh... and surprised they didn't want cash at negative .75?
at neg .75, one most certainly wants cash...like real cash in hand....or maybe better, a cashiers check.
purposefully devaluing the US $, is a crime against the Constitution. purposefully devalueing one's savings, aka stored labor is a crime against humanity.
I guess you'd have to be there, Present Value and Future Value and Past Value are not new concepts for Rick Santelli.
No one in finance is that stupid.
Rick:
- Let Demand Interest Rates on Savings Accounts
- Demand that the FED join the human race and raise rates for CDs
Fischer told her to say that, otherwise no muff diving tonight.
Never let the facts get in your way.
How hungry can he be?
The US needs to face the root cause of our economic and moral problems:
THE FEDERAL GOVERNMENT IS A THIEF
The US spends more than we produce and the Federal Reserve covers it up by printing counterfeit US Dollars.
Solution:
1. Abolish the Federal Reserve
2. Prohibit Fractional Reserve Banking
3. Prohibit fiat money, only gold and silver are money, as clearly stated in the US Constitution.
Effective immediately.
They won't get the message, trust me.
Fuck 'em. Stack harder.
At the depth of the Weimar Republic's hyperinflation, an entire city block of Berlin was purchased for 25 ounces of gold.
One hell of a stat there.
Wonder how much of a ghost city you could get for that same amount?
But what happens to all the land, property and assets that have been purchased since the Federal Reserve?
Those people get to keep everything and profit from the fact that they had access to easy money?
Meaningwhile, average people have lost their house, savings, and jobs.
That's kinda the point.
Billionaires are buying up real assets right now, while the green toilet paper is worth something.
I think she means Treasury, war heads and drugs are a convenient place to store value.
But gold isn't backed by anything, Janet. What, are you new?
Dupe. Freaking tablet.
Seems like we were just talking about this...this morning on the Munger thread.
Maybe we're psychic ;-)
It's all going according to plan.
The JOKER says buy more stocks and bonds.
If you were psychic, nmewn, you would know buildings can't fall at freefall speed into their own footprints from airplane impact. Not to mention Building 7 wasn't hit by a plane. How can you keep denying the obvious about 911? I find it very suspicious. Psychic? You don't have to worry about that.
I said psychic, not obsessively psychotic like you...lol.
She´ll get hung for those statements.
I think we should change dollar bills so they say Federal Reserve Store of Value Note
Keynes said "Only one person in a million will see it"
Santelli just explained what "it" is to the CNBC veiwership. All 20,000 of them. But add that to us space monkeys, and we should be able to make Keynes have to revise his numbers downward/upward (depending on your perspective). 1/999,999
The 999,999 are probably still more interested in the clintons and their law degrees explaining what the definition of "is" is.
The word "Is" cannot be scientifically defined. Neither can be, was, were or are. Better to shun them out of english.
Ops, i used the word "be"!
Seriously, these are meaningless words. Nothing just "is", everything is perception.
Well put. I was going for the "IS" "IS" punchline, since you will get punched pretty hard by the tax man if you don't believe in it. They "somehow" have $200B in US MIC gear (plus some sweet Toyotas), so now we need to spend $400B or really bad things will happen. Keynes would be proud.
IS IS = ISIS
I knew the Clintons were in on the ground floor.
And vegas says they will be back in the whitehouse in 2016. Not sure if that means they be good at ending this threat or not.
You're not sure? Apparently, you missed Hitleries performance as Secretary of State.
Cash is just pieces of paper backed by lies and fairy tales. It only has value because we can pay our taxes with it.
Only productive assets (things you grow, make, take out of the ground) or the components that lead to those productive assets have value to human society. The weight of numbers of people who cherish precious metals also suggest that at least gold is a store of value (Although you can't burn it in winter time like cash - heh).
Financial assets are not stores of value because they too are so much paper - promises against future delivery etc.
I think the message is clear. If cash is not a store of value, then one must exchange those increasingly worthless pieces of paper for precious metals are ownership in things that are grown, made, or taken out of the ground. Just make sure to get good value for those pieces of paper - after all they can be burned in a fireplace to keep us warm in the coming little ice age.
After all, the high priestess of the 1% has spoken. We would be remiss not to listen.
WTF is up with all the head bobbing?
That was 36 seconds of torture, I want an ACLU lawyer, STAT!
You'll get all the lawyers and help you need at Hillary's Fun CampsTM.
Print until the revolution begins.
LAPD blocking off my section of town as routine proceedure. Q99X2 locked out of earthly habitat for 2 hours this week. It won't be long now.
Excuse me, sir, would you mind if we take a look in your trunk? Your car seems to be sitting a little low in the back and we've had reports of some water smuggling going on around here.
Is Janet 'I never Saw It Coming' Yellen a store of stooooooopidity?
"Santelli: "deflation is the boogeyman... and the only thing that can save the middle class is lower prices" -Rick Santelli "
While I don't disagree with the "deflation is the ( FED'S ) boogyman" part of his statement, I must disagree with "the only thing that can save the middle class is lower prices" part.
1. Higher wages. The productivity gains of the last 30+ years have been siphoned away from the middle class and into the pockets of Wall St., upper management, the Government bureaucracies, the MIC/foreign interventions and wars, etc. The productivity gains should have been and need to be shared with those that were most instrumental in realizing those gains: the lower management rungs and labor. Payment of proper and well deserved compensation increases for durable and sustained productity improvements is not merely a moral issue, it is crucial to incentivize continued ingenuity and improvment..
2. Lower taxes and much smaller/less costly government/bureaucracy. Smaller government means less MIC, less security/police state aparatus, less mandates for contrived social justice at middle class expense via redistributionism that never addresses point #1 above or point #3 below, etc..
3. Reasoned trade. IF the labor and environmental and social insurance laws governing the United States are reasoned and just then NO products whould be allowed into the US that have not been produced in jurisdictions adhering to those laws and regulations. IF that means no more trade with Mexico or China or where ever since they don't have Social Security or Child Labor Laws or Environmental Safety Laws, etc.: so be it. Embargo the lot or lift the domestic restrictions and compensate the previously disenfranchised business and workers for the .GOV forcibly incurred existing damages.
4. End financial repressions. IF the Banks somehow need 6% interest on their excess reserves/savings at the FED it is likely that Depositors also require a similar safe rate of return for healthy capital formation and retirement planning. The FED cartel should either be required to provide a rate of interst to Depositors that is near commensurate with The FED providence to Banks for refusing to lend into the economy -their chartered reason for existing; or The FED should be prohibited from offering Banks a rate of interest on their excess reserves that is higher than the yield on a 3-month T-Bill. Banks should NEED to lend and Banks should NEED deposits to do so.
5. Restore Glass-Steagal and break up the TBTF institutions of all kinds. AIG, GE, JPM, etc... I have never heard one credible argument as to how excessive concentrations of capital, assets, personnel, risk and debt, in titanic and opaque institutions can possibly yield greater stability, flexibility or productivity than would the same capital, assets, personnel, risk and debt distributed amongst smaller competing institutions and management teams...
Nice post thanks. I would like to hear more about how you would implement #1 above.
I have had ideas of various kinds that I post as possible solutions and sometimes repost other people's ideas for solutions.
There are a lot of reasons such as technology that provided great American Productivity Gains, but Capitalist don't give away the farm without a reason. In fact they get incentives and bonuses by cutting the costs, cutting labor costs, cutting labor benefits, and off shoring and outsourcing.
This is a difficult task to accomplish and maybe the hardest thing is just talking about it with other people.
Looks like we need a Culture change in the USA. We are losing jobs and trade policies maybe firmly entrenched for battle. And we have people that don't want to work, have kids to teach and care for, and we have infirm, disabled, and elderly.
How to change the US Culture from valuing work over everything else. We don't want Corporate Parents that don't care for kids. We don't' want a 19th Century Culture where we ignore kids till they become men. We don't want a fascist culture that values Wealthy & Patriarchs & Neocons & Big Corporations above all else.
"how you would implement #1 above. "
#2 and #3 are a large part of the problem. Govenment regulation and political ballplay are the root cause or enablement of many of these problems and thus government will have to be reformed and the bureaucracy assume new roles in rebalancing the economy.
Corporate tax burdens could be indexed to CEO/bottom rung labor pay ratios. REAL ratios: no funny stock vesting/golden parachute games. Pay the CEO Millions and the workers a pittance shifts real labor costs over to .GOV social services. Tax the corporation and the CEO at punitive rates and force the employer to cover the costs of their labor pool indifrectly rather than directly via the paycheck. This would be especially painful for corporations that have outsourced/insourced cheap labor and should be. Corporations with very low ratios of CEO to lowest rung compensation would enjoy the lowest corporate tax rates.
IF the tax rates are reasoned and just then they can apply to everyone doing the same thing equally.
Disallow cost shifting via tax incentives and other crafty ways of stealing from existing business to gift/subsidize newly arrived and/or politically connected businesses. End emminent domain land grabs and governemnt land giveaways. Close ALL loopholes in ALL regulations in ALL jurisdictions.
Our laws and regulations are either just and reasoned or they are not. Reasoned and just or unreasonable and oppressive?
Impose very heavy tariffs on imports made in jurisdictions that do not comply fully with domestic .GOV regulations and laws or repeal those laws and compensate those that have been injured by those unjust oppressions..
China imposes a 100% tariff on a Tesla electric automobile. Apple has a 40% profit margin with cheap foreign labor. Harmonize the two views one way or another. Apple, like Tesla, can manufacture domestically of pay a 100% retail tariff on all products made outside fully compliant jurisdictions.
IMHO, unchecked immigration and so-called diversity and social justice agendas are also part of the problem. IF it is conceivably wrong to flood a jurisdiction with under-priced goods to bankrupt competition and/or steal market share then how can labor -especially labor subsidized or cost deffered in ANY way via .GOV regulation or social service- be considered differently? Reasonably, it cannot. IMHO, disenfranchising merit/ingenuity to pursue racial/diversity and social justice agenda are counter intuitive. Instead of rationing access to a shrinking domestic economy to people handily fitting divisive agenda profiles the focus should be on expanding access and allowing the market to reward productivity and ingenuity. Let me be blunt: few people purchase goods or services simply because they see minorities of one sort or another behind the counter. Race/identity has little to do with economic desicions unless those decisions are overtly coerced by .GOV fiat or criminal threat.
I don't think that work is valued in the US. I think that money and access are valued. Access comes either with money or via .GOV redistribution from those that are productive to those that are generally either financial/real estate rentiers or bureaucrats. Bureaucrats are always paid better than those people they claim to serve. War on poverty is making for some very healthy careers and very comfortable retirements -for bureaucrats and race/sexual orientation/religious grievance hustlers; and not at all for most of the unfairly disenfranchized and impoverished those bureaucrats and hustlers claim to represent and serve..
Laws should apply evenly. No one should have the right to met justice at whim or not be held account for their actions. This should obviously include everyone from teachers and cops on the beat all the way to the POTUS with his drone army and nuclear football...
Crime must be punished. Real crime, not fake victemless bullshit like smoking weed on your porch. I think that white collar crime should be punished on a scale that reflects the damage of theft. IF someone steals what is arguably a life savings -and most people n the US don't have that much saved- they should be taken out and hung/shot.
The government should be tough on violent crime -and I consider white collar crime and corruption in govenment to be a catagory of violent crimes. Terrorism? It's one thing to inflict fear of losing one's livelihood and life savings. It is another and IMHO far more destructive act to actually steal or destroy a person's livelihood and/or life savings. We should be treating financial criminals and financial terrorists, traitors and office abusers; as arch criminals and imposing the harshest sentances of the justice system upon those that commit such acts.
Victemless crime should be decriminialized. War on drugs is a waste.
War on terror is police state encroachment. You are more likely to die falling outta bed than get taken out by terrorists in the U.S. These outrageous surveilance and harrassment regimes is stupid and counterproductive and uncivilized.. Defund it all...
Govenment should never be allowed to force place 'insurance'. The ACA is a horrible scam. It isn't health care or even the promise of health care. It is reasonable for creditors and sellers of homes and autos to demand auto insurance and home owner's insurance if the item is (vendor) financed; but, I don't agree with coercions such as the ACA no matter how well intentioned or how badly the nation needs systemic reorganization..
I could go on and on. There is soooo much to be done...
ThroxxOfVron I agree with much of what you have said. I also see the Threat of False Financial Ratings as a prime cause of Fraud and threat to wealth of the Middle Class.
I have found there is a lot to think about in your writing. I'm sorry that I feel I must study your words to understand all the point. I have a Business Degree but this all gets too complicated for those who are not trained and those that are trained.
What you say makes sense.
Let me try to respond separately on your ideas or question you in further queries here.
I would try to make bullets of your Solution statements, ... I have to take some time to really make sense of it all. Implementation and Solutions were what I was looking for. You understand the systems very well at the top level. So I think you have a good grasp.
The Users of the Systems, the people that must regulate, the citizens, the retirees, the pensioners, the disabled, there are many that have to be consulted to make a system work.
But you have demonstrated some good knowledge. You have good ideas.
"I also see the Threat of False Financial Ratings as a prime cause of Fraud and threat to wealth of the Middle Class. "
I consider the ratings agencies to be little more than niche advertisers. Advertising is, at best, merely an assertion of opinion.
The Agencies should have been sued into non-existence for their false advertising of financial products no later than 2009 when their duplicity with the securitization mills was revealed. In fact, the Ratings Agencies even backpedalled on their ratings veracity and claimed that their guidance constituted nothing more than 'opinions' protected by the first amendment, and are of no legel consequence to investors; when the government investigated the collapse in MBS valuations during the height of the crisis...
I leave you with a few other thoughts that I have been discussing quite a bit lately...
1. Collateral cannot be conjured out of thin air. Bonds might be being used as collateral but this is a circle jerk.
There is only one collateral in the world: Human productivity. IF people don't produce collateral cannot be generated.
Houses don't pay mortgages: people pay mortgages. Nothing is good as collateral without human endeavor.
Rainbows don't mine or forge or draw or rivet or fuel or pilot or serve tea at 30,000 feet.
2. Taxation must be reformed precisely because of #1 above.
IMHO, Labor is not and cannot be less valuable than currency. Labor is what makes currency viable.
Taxing labor at a higher rate than capital gains is a form of wealth distribution from the creators of collateral value to the holders of notes which may or may not be redeemable with productivity.
Yellen alludes to this fact today and people got a little upset..
Money is entropic, dissolving, inflating away. Productivity/labor is predicatable and re-applied continually. Money is not work.
Work is done by people, not by monetary constructs.
One cannot generate productivity or conjure real goods by expanding the supply of coupons or adding ones and zeros to spead sheets.
One can underwrite collateral with productivity/labor or counterfeit collateral in whole or part. Only those two.
It would make more monetary and fiscal sense to tax capital gains at a higher rate than labor as capital is passive and thus entropic whereas labor is productive. Neither money nor property can be productive passively; and should not be treated as if it is productive passively within the taxation structure/scheme.
Usury, fractional reserve banking, counterfeiting of collateral and currency, and the excessive taxation of labor: are all contributing to wealth redistribution away from the actual productive basis of the entire economy. Even in a highly industrialized economy labor is still key.
There are no androids capable of drilling for oil. There are no androids that can clean up Fukishima. People will have to do the dirty and dangerous and deft work.
3. Those that have accrued excessive capital through whatever means and think they have the right to hoard and ration real goods are no better than gaolers of innocents.
When the uber wealthy leverage their capital for political power with which to marginalize the very labor that gives value to their capital, and/or repress their customer base via other excessive demands, they are using force as surely as if they hired mercenaries to loot and pillage or bribed crooked cops and judges to steal under cover of law but more eggregiously.
In alienating labor capital destroys the unspoken societal agreement underwriting the entire present construct: that labor validates and empowers collateral and currency so that commerce may be sustained and living standards rise for everyone in the system regardless of their relative position within the class structure of the economy and society.
When labor finally abandons a system of oppressive collateralization and currency that has betrayed their labors by denying them their share of the value creation they have produced -the collateral and the currency are often destroyed.
Then people end up hanging from lamp posts...
...& I advocate a radical reorganization and restructuring of the whole mismanaged and looted system. NOW.
-OR-
Lamposts. NOW.
Yes, those are clear thoughts. I disagree in that Financial Ratings seem to me like Fraud in 2005-2015.
Also I would use thresholds to allow small investors to attempt to earn something off of capital without the heavy taxation. The system seems to be a game where small guys are fleeced and the tax man is also fleecing them. If the US System wants to encourage middle class to invest in stocks or bonds then there most be some floor where small investors can be protected from capital gains when there is no real gain or sale involved. But probably I would not let the middle class write off interest paid on more than two houses and we could describe these house that get interest paid write offs as below say $400,000 dollars in worth. And after all the Taxpayer is really not an owner if he purchases a mortgage, so his wealth is in question.
Seems like tax strategies include tax credits, but we have too many tax loopholes and tax credits. Still we want people to get mortgages and to pay for health insurance and even save for education for themselves or their kids:
- Credits for Interest on 2 home Mortgages (with a Ceiling)
- Credits for saving for Education or paying for education
- Credits for paying for Health Care or Health Insurance
- No Capital Gains on Investments valued below $100,000 when no sale has taken place
- Capital Gains on Investments Sales (realized) below $100,000 would be Taxed at 14% for those who have an Income of $150,000 or less
- Or No Capital Gains on investors who make less than $100,000 in Income since they just are playing with fire, playing with false data, playing with a manipulated system, and likely are facing losses of Wealth
- Or No Capital Gains on Retired People who have income less than $70,000 a year
Just trying to create some floors, ceilings, and threshold that recognize middle class people are not getting ahead in today's ZIRP/LIRP Climate, and recognizing that we have Public Policy that encourages responsible behavior.
You missed the obvious and egregious one:
Stop the malinvestment - Wars/security scams are fabulously expensive and the largest cash flow liability....Using a large slice of our GDP to destroy others GDP is not a wealth enhancing endeavour.
"You missed the obvious and egregious one:
Stop the malinvestment - Wars/security scams are fabulously expensive and the largest cash flow liability....Using a large slice of our GDP to destroy others GDP is not a wealth enhancing endeavour. "
"1. Higher wages. The productivity gains of the last 30+ years have been siphoned away from the middle class and into the pockets of Wall St., upper management, the Government bureaucracies, the MIC/foreign interventions and wars, etc. The productivity gains should have been and need to be shared with those that were most instrumental in realizing those gains: the lower management rungs and labor. Payment of proper and well deserved compensation increases for durable and sustained productity improvements is not merely a moral issue, it is crucial to incentivize continued ingenuity and improvment.. "
You mean exactly what I wrote in the first sentance of #1 ??!