hooligan

Colonial Bank Failure Highlights the Problem

Blog talk that gets painfully close to armed rebellion? hmmmm..well, hopefully it wont come to that, introducing a shoot on sight attitude is unlikely to be disciminatory or contained to just those bankers or government bankers or bank governmenters. Protecting your wealth with a gun is maybe more a propos. Though the Federal system would take a dim view of anyone who refuses to pay taxes, this is a quick way to stop the haemorrhaging of the cabal of Fed/Government/Banks. Given that we live in civilised society, this refusal to pay taxes should take the form of taxes to local communities first, then to states and only then to the Government. With a clear message to investors in Government debt that Federal tax is a privilege granted by communities and states and not a right of politicians to promise. So the end of the Government debt market and financing in its current form and the end of the Federal Reserve system of bank support also. More autonomy for local areas. Seems to me that Federalism is a luxury that will always be abused by those seated at the top table. We can then rebuild accountability at the regulator level, after all, aren't they liable for all bank losses from bad loans? What else are they there for? Local communities could be limited in size to say 10 million or thereabouts, much like the smaller European countries and then better laws that prevent recurrence of Iceland and Ireland excesses, since these are manifest and obvious.

Coming Soon: Banking Crisis of Historic Proportions

Money in the bank or not, good question. Cash (bank notes) to be a stroe of wealth. Cash is more secure than bank notes, but pictures of the wheelbarrows in Zimbabwe are a bit of a nightmare!. How to preserve value? Well make an assumption about the poltical will and ability to either punish wrongdoers or continue to make 95% of the economy poorer by subsidising the 5% who rip the 95% off. There is slack, but if you see another 3-5 years of 10-15% Government deficits without reform, then the 5% will I suspect have brought down the entire productive sector. I think the zombie banks in Japan have now infected the economy and created zombie corporations. Japan can't grow and leads our demographic. The knee jerk reaction would be to look for an escape route in another country. For me, the solution lies in the focus on subsituting assets for the cash I have, in assets that will replace cash outgoings later. I will be looking at using the share market as proxy for utility bills, food, water, personal security, holidays and healthcare. I am pretty sure my pension plan won't provide this bias, but if I can redeploy cash assets directly (small farm with secure water access, methane bio fuel, guns, time shares and a doctor who will work for produce) I will. The preservation of value can not be clearly identified with the "bastardisation" of the economy by macro policies that favour an elite. Have to look to things like this.

Coming Soon: Banking Crisis of Historic Proportions

From a trading perspective I can see that it is appropriate to get in ahead of a Government that is subsidising bad performance and punishing good performance. The failure of the democratic process to allow the will of the majority to hold sway over the vested interests who continue to "game" the system is disappointing to say the least. There is a "truth" that is avoided by all the intervention that the Fed, the politicians and the gamesters (who are transferring tax payers dollars directly to their own pockets) because it is either too easy to avoid the truth, or because they dont understand what the truth is. The truth is that if intervention created jobs and unemplyment we would have been doing it for decades. It doesn't work and never has. Intervention is a communist ideal. The subsidy of a favoured cabal that has not only transferred wealth from the economy to the cabal by charging exhorbitant fees and transaction costs, but can't even preserve the very wealth it transferred. The banking model has not failed, what has failed is the willingness to prosecute because of fear and lack of ability to see crime. Intervention by subidising bad banking practise and exploitation will lead to failure, as it always has and always will. Intervention to prosecute those who have profited from malpracise in the past and a culture of of fair play is the way forward. Anyone who thinks that win/lose for a zero sum game is the way forward does not believe in the evolution of our civilisation and democratic process. Win/win for an overall increase in economic rent is also the way forward.