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Rousseau SC

Rousseau SC
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  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    Taxes are now "an obligation, dues for membership in the club." Formerly, you did not claim them to be legal obligations ( which is the actual meaning of the phrase "lawful debts"), but merely cancellation of an obligations owed by the issuer to the holders of those promissory notes issued by Uncle Sam. These seem to be clearly inconsistent positions when carried to their logical conclusions.

    You have more than once, replied with insult while I have remained polite and inquisitive as to your ideas. However, it seems you insult when you cannot reasonably respond.

    Additionally, your analysis seems defective and designed to apologize (in the technical sense of the word) for unfetttered spending and the irresponsible accumulation of sovereign debt.

    Accordingly, I don't see the value of any further discussion on this matter.
    Dec 4, 2012. 09:04 AM | Likes Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    Two points:

    1- To answer your question, I do not fear inflation because I believe that there is enough fear of inflation to prevent "unlimited monetary printing". In fact, this seems to have historically been the primary purpose of the Federal Reserve, especially in regard to what Greenspan feared most, "wage inflation".

    2- It took me awhile to understand the significance of your point, but I think I just came to an understanding of what you mean by your position that taxation is cancelling an obligation of the Federal Govt.

    Since the obligation is a promissory note, the forcible collection of promissory notes from citizens by means of simply declaring in a statute that the Federal Govt demands the return of a certain amount of such promissory notes to the Federal Govt. is the "cancellation" of the note. Essentially, under your analysis, as I understand it, taxation is merely reneging on the promise of the promissory notes which are thereby being "cancelled".

    Your analysis seems to support tax protestors.

    If the Founding Fathers agreed with you, then the reason they chose not to permit a federal income tax is clear. The income tax itself is then a violation of the full faith and credit of the US Federal Govt.

    Do you argue that the 16th Amendment, as implemented in the Internal Revenue Code of 1954, as amended, undermines the legitimacy of the republic due to its built-in and hidden dishonesty?
    Or do you argue that fiat currency needs to be replaced by currency backed by some hard asset in order to make money something other than an empty promise which, after issued, can be "cancelled" upon the whim of the promisor?
    Dec 3, 2012. 01:17 PM | Likes Like |Link to Comment
  • Not surprising given the firm's 1575 target for the S&P 500 next year, Goldman's Global Strategy Team upgrades U.S. equities to Overweight for the next 3 months. Global growth is "a hump to get over, then a clear road ahead," is #1 among the Top 10 themes for 2013. [View news story]
    I am sure that they have more information about the subject than I have and they have more understanding of the subject than I have.

    However, who trusts Goldman Sachs?
    Dec 3, 2012. 11:35 AM | Likes Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    Mr. Kramer,

    To answer your last question, I must ask how do you define "excess demand"?

    Further, I don't worry about "inflation" generally. I have heard commentators harking on fear of "inflation" for decades.

    Greenspan famously worried about "wage inflation". The problem now seems more related to wage deflation and inflation of the cost of goods and services.

    This problem seems to be more the result of (1) govt fiscal, tax, regulatory and spending policies and (2) the increasing concentration of power in the TBTF banks and in big business at the expense of employees and the self-employed, which concentration is buttressed by governmental policies, including tax policies, and which policies allow govt and big business to control the economy for their own benefit.
    Dec 3, 2012. 09:42 AM | 1 Like Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]

    Good for you to have little experince with lawyers. Most who have extensive experience have that experience because they have problems and need help.

    As for the positions of the two major parties, neither is at all credible. Both derive their power from the ability to spend other people's money. They do not intend to voluntairly surrender that power. Taxes will unfortunately rise. Cuts will be claimed, but the truth is they will be woefully inadequate and largely imaginary.
    Dec 3, 2012. 09:19 AM | 2 Likes Like |Link to Comment
  • Recession Risk: Is The U.S. Economic Expansion Running Out Of Time? [View article]
    And much of the rest went to muulti-national banks.
    Dec 3, 2012. 09:09 AM | 1 Like Like |Link to Comment
  • Is QE3 Working? [View article]
    Hitler chose an unpopular group for his pogram and the German people allowed it. Americans in general did not fight against this evil, nor did most even protest.

    If the govt can exterminate those who assert their constitutional rights upon phony excuses, without warrants or any evidence, then this is not a free country.

    Those Americans who failed to object simply because the crimes were committed by their govt against an unpopular group do not deserve freedom themselves.
    Dec 3, 2012. 08:51 AM | Likes Like |Link to Comment
  • Recession Risk: Is The U.S. Economic Expansion Running Out Of Time? [View article]
    Housing stats may or may not be a lie. However, those who determine which stats to publish are liars. Foreclosed homes sold to investors are counted as being as significant as homes sold by citizen homeowners to new owner-occupants. Almost 30% of the existing home sales now are foreclosed homes and the majority of these are sold to investors, not owner-occupants. Now, HUD has decided to bundle their REO's (FHA foreclosures, once predominantly owned by the residents thereof) and sell them in bundles to hedge-funds. Statistics don't lie, but liars use statistics.
    Dec 2, 2012. 04:17 PM | 5 Likes Like |Link to Comment
  • Is QE3 Working? [View article]
    Oh yeah, the phony excuse the Feds used was they had heard rumors of child abuse and went to arrest David Koresh? So they anticipated having to burn the place? The rumors had already been investigated prior to the attack by the Texas authorities and found to be meritless.
    If they wanted to arrest him, they would not have used the ATF, the Bureau of Alcohol, Tobacco and Firearms, which is not involved in matters of child abuse. Even so, they could have arrested Koresh on one of his trips to town. No, they wanted to make a statement by killing everyone.
    Dec 2, 2012. 02:32 PM | 1 Like Like |Link to Comment
  • The Fiscal Cliff Is The Best Fiscal Medicine [View article]
    Hitler, who also controlled the press, wrote that if you tell a timid lie, people will call you a liar, but if you tell a big lie, people will believe you.

    The big lie is that Bush's economic policy caused the financial crisis. Wrong, Bush's economic policies had just brought us out of the recession that started in the last 18 month's of Clinton's presidency. The financial crisis was started by the TBTF banks who took advantage of the greed of the GSE's, Freddie Mac and FNMA. It was Barney Frank who testified that Freddie's finances were solid, even after Freddie had been prosecuted and fined for cooking the books. It was Chris Dodd, head of the Senate Finance Committee, who got a "Friends of Angelo" loan from Countrywide. It was Barack Obama who received the highest ever annual level of political contributions from the GSE's (and second highest ever career amount ever given to a Congressman during his short career in the Senate).
    It was Obama who lobbied for extending the Bush tax cuts after he was elected in 2008 and is lobying for them again. They are only a problem when he campaingns, not when he is in power.
    Dec 2, 2012. 02:25 PM | 1 Like Like |Link to Comment
  • Is QE3 Working? [View article]
    I agree that the treasonous villains now or formerly employed by Freddie, Fannie, Uncle Sam and the TBTF Banks should be punished, but I do trust govt enough to condone their power to execute anyone, especially in cases where there are political implications. Then, we invite a "Stalin" type to exercise the most dramatic type of censorship.

    Witness Waco and Ruby Ridge. Uncle Sam even prosecuted the survivors of Waco, but the jury found that they fought in self-defense, and that the first shots were through the roof of the residence ("compound" according to the media) of the victims at Waco. At Ruby Ridge, the murderous sharpshooter, Gonzales, shot a mother holding her infant in her arms at her own front door. The bullet went through her temple, and Gonzales testified it was an accident, although in the same tesitimony, he also testified he could hit a quarter at 100 yards. Then they chased the young boy through the woods and shot and killed him.

    Oh yeah, it was Louis Freeh who led the assault on Waco. They burned all those innocent people by using a gas that is so flammable it is illegal for use in war. And Louis Freeh was promoted as a result of this burning to death those men, women and children whose only "crime" was owning guns (locked in a storage room at the time of the attack) as was their constitutional right.
    Dec 2, 2012. 02:10 PM | 1 Like Like |Link to Comment
  • Gold Little Changed In November, Could Surge In December [View article]
    Now that he assisted in bringing the price down, will he be buying at a lower price?
    Dec 2, 2012. 01:18 PM | Likes Like |Link to Comment
  • Is The Economy Already Beginning To Stumble Again? [View article]
    I don't know. The Fed has kept the market from collapsing for 4 plus years by propping up big business at the expense of the common man and at the expense of Uncle Sam's fiscal health. How long can it last? Will it continue until we are a third-world nation, divided into billionaires and the empoverished? I don't know.
    Dec 2, 2012. 01:15 PM | 1 Like Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    Mr Kramer,

    I appreciate your giving me a different paradigm to consider, although i am not convinced it is a compelling one. I have nothing else to say now and must attend to my grandchild. Priorities.
    Dec 2, 2012. 12:44 PM | 1 Like Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    I am not an economist by training. I may simply be "missing the boat", but i don't see how. I am open to learning, but I am not willing to swallow analyses I cannot justify. Tell me where I am mistaken.

    My understanding of meny begins with the notion that money is the primary medium of exchange and that it has a long history that defines both its substance and its function. I then look at that history in our nation as I describe below.

    Once, banks in America issued money, such as the "dixie", supposedly either coined in gold or silver or backed by gold or silver to comply with the constitutional restraint that the only lawful money shall be gold and silver.

    When it was made unlawful for banks to print money, Uncle Sam took over the job of being the exclusive American issuer of currency. initially Uncle Sam guaranteed that the dollars it printed were "redeemable at any Federal Reserve Bank in lawful money", which written guarantee appeared on our currency.

    Since the mid-late 1950's, Uncle Sam has issued fiat money backed solely by the power to tax and guaranteed by the "full faith and credit" of the US govt.. As such, the money issued by Uncle Sam becomes an obligation of the federal govt. which functions as a medium of exchange for goods and services.

    I don't see how that understanding allows for your statement, "But the problem is not the government's liability to repay the money, it is the economy's capacity to honor it when it comes out of the drawer."

    The first issue with your analysis seems to me to be that money is an obligation of the govt, not of the citizenry. The economy is the product of citizens who, individually or collectively, have no obligation to maintain a sufficiebnt "supply" of goods and services for the dollars printed by Uncle Sam. I would submit that to say otherwise would be to declare citizens to be slaves.

    The second is that the supply is limited by demand and distribution issues. Unmarketable supply of goods and services cannot sustain an economy to support unlimited monetary printing.
    Dec 2, 2012. 12:21 PM | 1 Like Like |Link to Comment