Posts Tagged ‘economy’
New rules– No government subsidization of private debt, and no borrowing at all by government:
I saw your internet storefront; business must be brisk.
Yes, I’m going to need a loan to help expand. I stopped by a branch of the Fifth Second, but of course, it’s no longer a bank, since there are no banks other then the government, all-electronic bank. The Fifth Second is willing to loan me money, but now that money will be coming out of their private funds rather than out of depositor’s funds.
Why don’t you just use one of those new internet sites, where they match up savers and borrowers? There’s a huge influx of savers, willing to lend out money, since deposits at the government bank don’t earn any interest. The small, riskier loans are pooled, to reduce risk, but with so many savers throwing money into these loans chasing yield, I wonder if we’ll see another bubble, like what we saw with housing and college tuition loans.
But there’s a difference. Weren’t the housing and college tuition loans insured by the government?
Yes, now there is no government interference and the private markets will very quickly set proper rates. I don’t think we’ve ever seen purely market determined interest rates before. Now, there will never again be any federal or municipal debt to crowd out the credit markets. And the Fed, together with its interest rate manipulations, are gone forever!
Wasn’t the sheer size of government debt considered the largest bubble in history?
That’s what happens when debt is considered risk free. And there is theoretically no limit to the amount that can be issued, when interest rates approach zero. But how could anyone think that passing more and more debt onto future generations, could be considered risk free?
Now, exactly how did they defuse the bubble?
The entire government debt was eliminated. Large portions were written off. Some was paid giving away government property. Special tax assessments were made, using net worth taxes wherever possible, and some were allowed to pay by giving away ownership of properties, businesses, and other assets, where it might have been difficult to sell them to raise money. Lengthy negotiations were required. But the choice was between either a controlled settlement, or a catastrophic, uncontrolled collapse.
I’m glad our leaders had the foresight and courage to make the right choice.
Even the right choice was extremely painful. So painful that it was decided never to let the government issue debt again! At the same time, they questioned why the government should even have its own money. Instead of depositing tax money into a government account and then spending it, they could instead spend instantly created money and then retire that amount of money through taxation. This way all money could remain in private hands.
How could we trust government to generate the right amount of taxes to match government spending?
Taxes needed to be scalable and automatic, without the type of delays caused by debating wealth reallocation issues. That’s why simple rules were chosen, using the net worth tax where possible, since this is the only type of tax that does not reallocate wealth.
Gee, I’d like the power to create money out of thin air every time I want to buy something.
Actually, government spending will be much more constrained than before. If the President announces we’re going into another war, he better have a very good reason, because people will know that taxes are about to rise!
Duration : 0:3:36
Fear is beginning to grow over the consequences of the U.S. hitting the debt ceiling. Anthony Mason reports on what happens if America maxes out its credit card.
Duration : 0:2:51
‘Visual thinking’ is a new technique that we use to create visual explanations of complex messages. It enables you to literally see the various elements & how they all fit together.
We’re currently using this technique for some of our clients to help them communicate business strategy to employees as an alternative to large PowerPoint documents.
Please contact us for more information on Home’s video production and Visual Thinking :
Paul@thisishome.co.uk
Matthew@thisishome.co.uk
Duration : 0:2:22
Watch the full version here: http://www.youtube.com/watch?v=bx_LWm6_6tA
The Short and Simple Story of the Credit Crisis.
By Jonathan Jarvis.
Crisisofcredit.com
JonathanJarvis.com
Duration : 0:7:32
CreditGUARD of America provides a variety of credit counseling services to assist consumers with their debt problems. Lower your monthly payments and get your life back on track, call 1-800-213-5174.
Duration : 0:1:1
PLEASE SUBSCRIBE!!!!! http://nwotruth.com/greece-hires-former-goldman-banker-as-debt-chief/ http://www.spiegel.de/international/europe/0,1518,676634,00.html http://www.ft.com/cms/s/0/f90bca10-1679-11df-bf44-00144feab49a.html Greece replaced its debt management chief with a former Goldman Sachs Group Inc. investment banker, as declines in the countrys bonds roil European markets.
Petros Christodoulou took over from Spyros Papanicolaou as head of the Athens-based Public debt management Agency, the Finance Ministry said yesterday in an e-mail. Christodoulou held positions in global markets at Credit Suisse Group AG, Goldman Sachs and JPMorgan Chase & Co. before joining National Bank of Greece in 1998, according to a company filing.
The incoming guy is walking into a tough mandate, said Charles Diebel, senior interest-rate strategist at Nomura International Plc in London. Such is the sentiment towards Greece at the moment, a new broom could be a positive. Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country’s already bloated deficit.
Thank you everyone for subscribing!
Facebook:
http://bit.ly/cEXQv1
Twitter:
http://twitter.com/GGNCORP
Revolutionary Roundtable Group:
http://www.youtube.com/group/ddarko2012RR
Website:
www.globalgovernmentnewscorp.blogspot.com
Duration : 0:9:59
Links
http://www.marketoracle.co.uk/Article20254.html
http://abcnews.go.com/Business/wireStory?id=10899182
http://uk.news.yahoo.com/22/20100613/tbs-uk-ecb-nowotny-nikkei-b5819a3.html
Duration : 0:6:8
President Obama’s newly formed Commission on Fiscal Responsibility and Reform met today. Alyona’s guess, the number one topic today was the release of the Congressional Budget Office’s long-term budget outlook report. According to this report, by the end of this year, the federal debt will represent sixty-two percent of the nation’s economy, the highest levels since just after WWII. Alyona asks, what about the stimulus spending that some claim we need to nurse our economy back to health. Taking a look at the consensus from economists at the G20 there is absolutely no consensus. So Alyona asks, to spend or not to spend. Here to discuss this is Nicki Kurokawa from The Winston Group, and Christian Dorsey the Director of External and Government Affairs Economic Policy Institute.
Duration : 0:9:0
http://www.cambridge-credit.org — Since the start of the recession in 2007, the Better Business Bureau reports that it has received more than 3,500 complaints regarding the debt-settlement industry, reinforcing the unfortunate fact that many people who seek assistance from debt-settlement companies never receive the services they so desperately require. Common among those complaints were stories of individuals who wound up deeper in debt, or who faced lawsuits for failure to make their scheduled payments. In an effort to protect consumers from unscrupulous debt settlement firms, the FTC recently introduced groundbreaking new rules to govern the industry’s practices. In announcing the regulations, FTC Chairman Jon Leibowitz and Vice President Joe Biden noted that many debt-settlement companies use “a business model based on deceit,” and pledged to enforce the new rules aggressively. Watch this week’s webisode from Cambridge Credit Counseling Corp. to learn more. Host: President and CEO Christopher Viale.
Duration : 0:6:17
Maxed Out takes viewers on a journey deep inside the American style of debt, where things seem fine as long as the minimum monthly payment arrives on time. With coverage that spans from small American towns all the way to the White House, the film shows how the modern financial industry really works, explains the true definition of “preferred customer” and tells us why the poor are getting poorer while the rich keep getting richer. Hilarious, shocking and incisive, Maxed Out paints a picture of a national nightmare which is all too real for most of us. Great for college students.
Duration : 0:2:15