Thursday, December 29, 2005

Econ & You

Then, with this wicked little grin on his face, Mr. Blumen goes on to say that another scam is "to make money pay a negative nominal interest rate, by imposing some type of 'carry tax' on currency and deposits. A tax or fee on Reserve deposits of 1 percent per month, for example, would mean that those deposits, in effect, pay a nominal interest rate of roughly minus 12 percent."
Think Economics doesnt apply to you? This is just one of the tricks up Bernanke's sleeve. You see, our economy is kept alive by an outrageous amount of debt spending. If we dont keep spending at these rates our economy is going to collapse. And how do you squeeze more from a group of people that only save 1% of their income? You make savings too costly. Would you care to lose 12% on your savings or would you decide it was time to put it into stocks? Stocks obviously. At least then you might have a chance at making money. "Savings" would be a sure fire loss.

Need more convincing?
"The third principle of Bernankeism is the necessity of 'unconventional measures.' The reader of the Fed’s papers and speeches will find a series of increasingly exotic plans for the dollar. From beginning to end, these methods range from the merely unsound to the bizarre and terrifying."
Well, how about, for example, "money rains", whereby the Fed would "give money away either through directly disbursing currency to the public or by disbursing it through the banking system." By this time I am sure your heart is beating like a trip-hammer, boom boom boom at the very thought of such monetary sinfulness!

Now what have we learned about creating money? It causes inflation! Inflation is always always ALWAYS bad. But then giving it away to those who havent worked for it?

I am finding it easier to understand why the Mogambo (whom I cited here today) gets so worked up. I got so worked up that I gave that first example first even tho it should have been second as it naturally follows the second as it is also one of those "bizarre and terrifying" methods.

Once more we should look to the words of Thomas Jefferson
The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.