Cicero

The Globalization Boom and Bust Cycle

"The Anglo-American model surged with its perceived advantages over more managed enterprise economies"? "The free market, multinational led globalization of the 1990s?"

The author misses the macro trend completely. We have lived under a corporatocracy, and not in a free market, for decades. This NY Times article details the bipartisan corruption that allowed Fannie and Freddie to enjoy huge advantages over their truly private competitors: www.nytimes.com/2008/0...

Read Bernanke’s explanation of the malinvestment Congress created with Fannie and Freddie and how this collusion set the stage for today’s problems in his March 2007 speech here: www.federalreserve.gov...

Read this Barrons story to understand how they figure the taxpayer losses as a result of the current mess could end up at 2 TRILLION dollars (subscription required for most Barrons articles): online.barrons.com/art...

Congress colludes with the private bankers at the Federal Reserve, who create fiat money out of nothing and loan it to our gov't. They flood the market with money and credit, inflating the supply and driving down the value of the dollar. This is the major source of inflation. This easy credit creates prolific malinvestment and the long chain of bubbles we have endured. The profits are huge and private; the losses are much more socialized. The facts are right on the Federal Reserve website and in the NY Times and in Barrons, who called for the abolition of the Fed two weeks ago. That’s the new macro trend we need – a return to Constitutional government, with the Fed the first creature of Congress to be taken out and shot!

The NY Times article “The Nixon Recovery” of 2/4/04 admits the Fed is independent and that they print or don't print money to sway elections, causing the runaway inflation of the 70's. (link: query.nytimes.com/gst/... )

The NY Times, article, “The Education of Ben Bernanke” reiterates that the Fed manipulated that election for Nixon, creating the massive double digit inflation of the 70’s and fixing that mess by raising rates and creating the “brutal recession” that followed. We learn that idle builders (my father was a carpenter) “were so enraged that some sent him two-by-fours in the mail.” It admits the Fed is created the housing bubble by pumping easy money in an effort to stem the damage of the dot.com bubble (that they fueled with easy money). It notes the Fed “…has vast powers over the economy” with its “…control over the supply of money” and that “only the…Fed can create new money.” It notes the Fed ignored warnings (of people like Ron Paul) and “the speculative lending continued.” (link: www.nytimes.com/2008/0... )

Bernanke admits Fed caused depression in the conclusion of this 2002 Speech here on Fed Website: www.federalreserve.gov...

Bernanke admits creating money from nothing in a speech on 11/21/02 on the Fed’s website: www.federalreserve.gov.../ (4th paragraph under heading “Curing Deflation”).

This Barrons cover story blames the long chain of bubbles on the Fed: online.barrons.com/pub...

This Barrons article calls for the abolition of the Fed: online.barrons.com/art...

Days of Cheap Energy-Fueled Innovation Coming to an End

I Think, were you one of the speakers at the Freedom Rally in DC back in April? Ron Paul really needs some support in Congress - he's been holdng down the fort for decades.

Emerging Market Investing: Really an Ex-Communist Play?

Flash, my point is that private control of the money supply and interest rate is not capitalism. If the fedgov didn't force us to use fiat money and if they didn't force us to pay interest to the private bankers, we would be free to seek alternatives (and would inevitable end up with a gold or silver backed currency, unless a new form arises). I agree 100% that the fed alone couldn't create the .com or subprime disasters - greed and stupidity on the parts of the lenders and investors and individual home owners were vital ingredients.

Inflation, on the other hand, seems to rest squarely on the shoulders of the Fed and Congress, who allows the shell game to take place. Only the Fed can inflate the money supply. This IS inflation. Rising prices are the results, just as wet streets are the result of rain, and not rain. Prices can rise and fall in any given geogrpahic area or section of the economy, but on a large scale across the economy as a whole, only the creation of more money causes inflation. Think of the nutritional vale of any pot of soup. Add a bit ore water to thin it down, and you don't notice the difference. Double the water and you need two cups of soup to get the same nutrition as you got in one before. Check out how many times they have doubled the supply of money in our economy, and you realize how thin our monetary soup has become. And I'm not even getting into "fractional reserves", which allows them to loan $9 for every new $1 they create from nothing.

Emerging Market Investing: Really an Ex-Communist Play?

The rule of law and capitalism does not eliminate human greed and stupidy and ignorance, it merely minimizes them and maximizes human creativity, ingenuity, and voluntary good will (charity). America is doing as well as it is DESPITE our slide into collectivism. The Kleptocracy in DC sees private bankers and corporations colluding with Congress to skim off most of the cream and a good bit of the milk too. What's left is still healthier and more nutrious than any other nation at any other time in history. Can you imagine how much propserity might be unleashed in the world if statesmen like Ron were elected and we tried re-applying the Constitution? For decades Paul warned Congress about our decades long unconstitutional and immoral meddling in the Mid East and for about the private "Federal Reserve" (not federal and there are no reserves) creating money at essentially no cost and reaping perpetual interest payments out of taxpayers' pockets because Congress makes us pay about 8% of our national debt in interest only payemts to this private mafia.

Sources on Ron Paul's speeches to Congress are all public records and easily proven (his book Foreign Policy of Freedom is a collection on just that topic). And here's proof about the Fed courtesy of the NY Times and the Federal Reserve itself:

The NY Times article “The Nixon Recovery” of 2/4/04 admits the Fed is independent and that they print or don't print money to sway elections, causing runaway inflation (as in the 70's): query.nytimes.com/gst/...

The NY Times, article, The Education of Ben Bernanke admits the Fed is independent and that they created the housing bubble by pumping easy money in an effort to stem the damage of the dot.com bubble (that they fueled with easy money in the 90’s): www.nytimes.com/2008/0...
It notes the Fed has “…control over the supply of money” and that this “…power ...is unique... only the…Fed can create new money.” It notes Bernanke helped create the housing bubble and that the Fed ignored the warnings (of people like Ron Paul) and “the speculative lending continued.”
The same article notes the Fed flooded the economy with money specifically to manipulate the 72 election for Nixon, creating the “brutal recession” and massive double digit inflation that marked the economic havoc of that decade. We learn that idle builders (my father was a carpenter) “were so enraged that some sent him two-by-fours in the mail.”

Bernanke admits Fed caused depression in the conclusion of this 2002 Speech here on Fed Website: www.federalreserve.gov...

Bernanke admits creating money from nothing in a speech on 11/21/02 on the Fed’s website: www.federalreserve.gov.../ (4th paragraph under heading “Curing Deflation.” He is duplicitous in stating the US gov’t creates it – if this is so, why pay independent private bankers 8% of our national budget in interest? Talk about an investment! Imagine spending $3,000 to print a million back in 1960, lending it to the fedgov, and collecting 3% “interest only” for life. That’s $30,000 a year for perpetuity – a 1000% return on investment each and every year for perpetuity without investing another dime.

Wake up America, join the revolution!

China: No, But This Time Really Is Different

Note how insulated our nation was from sovereign debt default when the Constitution was respected as the job description of and contract with the people of our fedgov. Damage was limited by our distrust of too much fedgov power, and of our distrust of allowing a central bank to get their grubby hands on our currency. It's difficult enough fighting corruption and greed in the free market and on a state level; consolidating the power in D.C. and allowing the cleptocracy in Congress to collude with private bankers at the "Federal Reserve" (it's not federal, and there are no reserves) may prove to be our nation's undoing.

Our money is created from nothing. It's like adding water to soup. When you double the water in a pot of soup, you need two cups of it to get the same nutrition. When you double the money supply, you need two dollars to replace one original dollar. It was their inflating of the money supply that caused the liquidity that inflated the dotcom bubble. It was their inflating of the money supply that inflated the subprime bubble (though greedy mortgage brokers and greedy home buyers were part of the equation.)

Bernanke admits right in the NY Times that Congress allows them to create money from nothing. He has never explained why Americans are forced to pay 8% of our national budget in interest on such funny money to the private bankers. (The NY Times also admits that the Federal Reserve bankers are private and independent, by the way.) The NY Times confirms that the Fed flooded the money supply in the 70's to re-elect Nixon, and that the raging inflation that resulted was only "cured" by the Federal Reserve tightening the money supply so much that it caused the massive recession of the 70's. Bernanke himself admits that the Fed caused the Depression, which would have been known as the recession of 29-30 had they not mucked up the markets.

We can hopefully still invest and make money if we are aware of the macro influences of our steady path away from the Constitution (if we can avoid economic collapse), but electing statesmen like Ron Paul is necessary to really turn us around economically as well as morally.

Sources:
The Nixon Recovery (NY Times 2/4/04): query.nytimes.com/gst/...

The Education of Ben Bernanke (NY Times 1/20/08): www.nytimes.com/2008/0...

Bernanke admits Fed caused depression (see conclusion of this 2002 speech here on Fed Website): www.federalreserve.gov...

Bernanke admits creating money from nothing in a speech on 11/21/02 (4th paragraph under heading “Curing Deflation”) on the Fed’s website: www.federalreserve.gov.../