alajac

Economic Donkeys

"Regulation" is how the spider gets the fly to sit down and get comfortable. The problem is the system rewards greed, avarice, and short-term risk-taking. If EVERY stock market transaction had a half-percent "infrastructure maintenance fee" automatically deducted (like the old brokerage fees were) in place of capital gains taxation, how many nano-second long trades would be put on?

HOW TO FIX THE ECONOMY (abridged version):

First, a commonsense definition of "government":
Government: "One or more persons who claim natural resources, are willing and able to defend their claim on those resources, and make and enforce decisions regarding the allocation of those resources."

1. Every government is the "de facto" owner of everything (including EVERYONE) within its domain; governments create "de jure" ownership in order to get resources into the hands they believe will be most productive and thus most conducive to the government's prosperity and longevity. Ever since the invention of the guillotine, government administrators have stopped claiming ownership of everyone and everything within the government's domain, but continue to act as if the ownership is a fact concerning which, like "Santa's secret identity", every mature adult is (or certainly should be) aware.

2. Regardless of who administers a government, the actual government (and, consequently, the actual owners of everything within the government's domain) is whomever the administrators SERVE (in the current instance, "a bunch of rich guys that own a bunch of banks and stuff").

3. In order to obtain ownership of the government (and thus, of ourselves) we need to get the government to serve our needs, first and foremost. And the first thing we will need to do towards that end (after we have taken over the administration of the government) is to replace Federal Reserve money with our own, backed by all the wealth within the government's domain (of which the government is the de facto owner).

4. Our first and pretty much only need (once the inequities created by the bankster regime are redressed) is for suitable compensation for government's impairment of everyone's right to free access to all land (see Paine's "Agrarian Justice" plan for cogent argumentation). All other forms of corporate and personal welfare and subsidies and free market interference need to be ended or phased out. No FDA or other corporate protection schemes, no Minimum Wage laws, etc.

[Before the "Cybernetic Revolution" began destroying most of the rest of the need for human labor that the Industrial Revolution missed, the "job system" of economic resource distribution (along with some Lockian BS) was adequate to mask the inequity of governments taking away everyone's right to free access to all land (an impairment that ALWAYS puts the capital-poorer at a bargaining disadvantage: due to the physical needs of human bodies, whoever has more capital is always further from homelessness and starvation, and thus always has a bargaining advantage over someone closer to homelessness or starvation who MUST, at some point, accept inadequate wages or else lose their home or starve to death), but now, like a runner who had a bad heart all along that didn't stop him until the final mile of the marathon, we find ourselves the possessors of a "bad economic resource distribution system". If we replace that inadequate economic resource distribution system with one that pumps out the same amount of economic resource "blood" to every "cell" (legal resident) and then lets those cells work and save or slack and waste as they will (in other words "pursue happiness" in whatever way they choose), we can create a totally stable economic system with no more "booms and busts", much less poverty and crime, no more "homeless vets", MUCH less excuse for government in general, etc.. The plan suggests impairment compensation of at least $1000 per month per legal resident (compensation for minors to be placed "in trust"); since everyone gets the same compensation there is no "redistribution" involved. Just to make sure we are clear: people will be free to work as hard as they like and make as much money as they like and spend it any way they like.]

5. All federal income-based taxation is to be replaced (ending the IRS's reign of terror) by a small, flat "infrastructure maintenance fee" on all electronic debit transactions, whatever is necessary (certainly less than one percent) to keep prices stable (keeping gold at a fixed price could be used as a measure). If you take out of a system (in a given time period) as much as you put in, there can be no inflation. The "infrastructure maintenance fee" (being charged as funds are spent) is directly related to "benefits already received", unlike the highly regressive federal income tax which charges kids just out of school a greater percentage of their accumulated wealth than many of the seriously rich and certainly all of the biggest corporations.

6. There should be one set of laws that applies to everyone equally: everybody gets the same, everybody pays the same, no special treatment for anyone.

Five Reasons the Market Could Crash This Fall

I know what America DOESN'T make: many people that can spell many moderately difficult words, much less use them correctly.

FYI: I "called the crash" specifically on June 3rd, 2008 (after sending out warnings of its imminence for over a year); in July, 2008 I also called tops on oil ("will hit $20 before $200" when it was over $140; oil should hit the $20 target in November, 2012) and gold (to $399, I haven't bothered to estimate a date).

Personally I don't understand why the exchanges are continuing to pay for order flow since the game has become "make a lot of trades in order to get as much order flow payment as possible", so I can definitely see a day when they stop doing that, in which case the HFPT might slow down quite a bit.

Either way, cybernetics has changed the game forever: every recovery will be more JOBLESS than the last, the "financial resource distribution" system is broken for good, and everything everyone "knows" about government and economics is of the same veracity as "Santa leaves the presents under the tree on Christmas Eve".

The plan to fix it all is on my classmates.com profile page under "alan jacquemotte".

Six (At Least) Reasons to Sell This Rally

Don't blame Obama.

The banking industry took over this country in 1787. The Constitutional Convention was literally PACKED with bank directors (like Robert Morris) and big investors in bank stocks (like Benjamin Franklin). They succeeded in obtaining a federal monopoly on the U.S. money supply by demonizing state-issued "scrip" the way politicians always demonize anything that stands in their way of making a buck. The original idea - to have a central bank monopoly over the U.S. money supply, with all money and credit thereafter created solely by borrowings "at interest" from banks - took a couple of tries and many very likely purposely-created panics and depressions until America's spirit was broken enough by 1913 to submit to again wearing central banking's saddle.

As Lysander Spooner once said "...the establishment of a monopoly of money is equivalent to the establishment of monopolies in all the businesses that are carried on by means of money, - to wit, all businesses that are carried on at all in civilized society; and that to establish such ...[a money monopoly]... is equivalent to condemning all persons, except those holding the ...[money monopoly]... to the condition of tributaries, dependents, servants, paupers, beggars, or slaves..."; in other words, The Golden Rule ("he who has the gold makes the rules") RULES!

Rare has been the U.S. President since 1787 who has not been beholden to "our financiers": any candidate who appears to favor "the people" over the interests of the banks will fail to get funding and endorsements (newspaper publishers are just businesses like every other large corporation and likewise "know who butters their bread"). If the original pro-bank impression appears less than guaranteed, pretexts can be invented to "drum" candidates (like Howard Dean) out of the race. Stronger measures have to be taken with those (like Robert Kennedy, Paul Wellstone, and JFK, Jr.) who look too popular to be marginalized as well as with previously bank-backed winners (like JFK) who try to change sides: you never heard George W. Bush mention even one word about "bringing the troops home" like John Kennedy did in an interview a few months before he took up "bullet catching". Lesson taught, lesson learned: good little Presidents "faithfully execute" the wars they are assigned to "preserve, protect and defend", and NEVER "rock the boat".

If Obama actually WAS on our side, he either wouldn't have gotten a MSM "pass" for his vaccuous campaign platitudes, or else he'd already be dead. As I said during my "Get Rid of the Federal Reserve and Impeach and Prosecute Bush Now!" Presidential Write-In Campaign, Obama is just another "Bush Lite", same as everyone else recognized by the MSM as having "viable" 2008 Presidential campaigns. As far as the MSM is concerned, "No banking industry backing = not a viable campaign" and that will continue to be the case until we get up off our butts and "change the fack, Jack". That task (and the implementation of steps to actually stabilize and resuscitate the U.S. and world economy) will require a new Political Party: suggestions for the name of this new Political Party can be submitted on the "alajac" page at u4prez.com.

Goldman's Unexpected Earnings; Government's New Foreclosure Solution - Cause for Pause

Speaking of "the humanity", up until now, governments have all taken away everyone's right to free access to all the earth (see Tom Paine's "Agrarian Justice") without providing compensation for that loss, keeping wages artificially low to the benefit of banks and their (virtual) subsidiaries: companies and corporations. With the advent of cybernation and its attendant "creative destruction" of human employment, that compensation may be required in order to replace "jobs" as the system we use to distribute economic resources. Here's the plan (pass it on):

1. Replace the Fed's debt-money with US Government-issued "ration coupon" money backed by the combined property and wealth of the USA. End the Federal monopoly on money. Declare the National Debt "odious" and payable by the banksters and their representatives in Congress that ran up the tab for the benefit of themselves and their bankster bosses.

2. Give every legal resident $1000 of the new money every month with no qualification or strings attached. Anybody will be able to work as much as they want. Since everyone gets the same amount, there is no "redistribution" of wealth involved.

3. Replace all Federal income-based taxation with an "economic infrastructure maintenance fee" of up to one percent on every electronic debit transfer (whatever is required to keep prices stable). Like with the human body, as long as you take out as much as you put in, there is NO inflation. The government self-funds with the new money.

4. Get rid of every Federal law, policy or agency that discourages competition, unevenly distributes resources, or hides risk (i.e., pretty much all of them), including ALL Federal taxation on personal and corporate income and all personal and corporate subsidies (including all Minimum Wage laws); phase out Social Security.

5. In all other economic matters, free market auction should be "the brain"; central planning is inherently stupid and always makes things worse.


The plan will improve things regarding unemployment, poverty, crime, healthcare, urban blight, rural living affordability, childcare, etc., and will diminish incentives for crime, wars, illegal immigration, market volatility and speculation.

Everybody gets the same "bailout" amount, everybody pays the same percentage...and everybody's balance sheet gets improved without specifically rewarding those who took the "free call option on rising real estate prices" bait.

Cars get sold or leased again and banks get people to whom to lend. No specific bailouts should be done just because a particular industry has costs that are too high for them to be market-competitive, and weak or broke banks and companies need to be bought up by the few still-strong ones or by private equity (rather than by the government).

Simple, fair, effective...and we will keep on trending down until something like it gets implemented.

Contact me for more details or to help create the new political party we need to get this plan implemented.

Is the U.S. Banking System Safe?

Bank stocks bounced because there are many clueless people with lots of money, as evidenced by many of the above comments, I've been warning people about this crash since 2006 (due to an article I read about the lagging correspondence of the S&P500 with the Housing Index); anybody who didn't see this coming shouldn't be trusted with a checkbook, much less funds and banks and the Federal Reserve System.

If the bank owners were personally responsible for loan losses do you think they would have made all those bad loans? They can socialize the losses and take all the profits, so they do. As noted in this great piece, fractional reserve loaning is totally corrupt, a government-approved Ponzi scheme.

Loans from fractional reserve banks are inherently “liar’s loans”, the lie being, the bank is loaning money that it really doesn’t have. The Fed and the thousands of banks creating these liar loans create inflationary conditions that actively discourage thrift: people throw their money at something that hopefully will go up in a lot in price in order to hold onto the buying power of their money, trading the certainty of being screwed in the long run for the chance to possibly avoid being screwed at that future time. Debt-money leaks out value like a bucket with a hole in the bottom leaks out water. This is just going to keep happening until the basic cause gets fixed.

First of all, WE NEED OUR OWN DEBT-FREE CURRENCY, backed by all of the real estate owned by the United States (which is, in fact, all of the real estate within the national boundaries, and really more than that including other nations whose continued claim to existence depends on U.S. defense of that claim; case-in-point, Kuwait, 1991), we should distribute that new currency in monthly equi-dollar amounts to all legal residents (amounts due minors to be held in trust accounts). Also, we need bankers to be held financially responsible for any loss of depositors’ money (if they want to gamble with fractional reserves, it’s the bank owners who should pay, not taxpayers, and if you lose your own money by depositing it in a fractional reserve bank, again, it’s YOU who should pay, not taxpayers. How can we ever expect things to get right with a system based on socializing losses?

Next, we should REPLACE ALL FEDERAL NON-CONSUMPTION TAXES with a one-half percent(+/-) Tobin-type tax on ALL outgoing electronic transactions (avoidable by using cash for all transactions, and, since avoidable, the tax will be arguably being paid voluntarily) in order to:

1. Pay off the national debt,

2. Repair the damage that the U.S. government has done to persons and the free market by favoritism (reparations for having “Constitutionalized” slavery might be considered) and excessive regulation (e.g., we need about 4 times as many doctors and healthcare professionals as we currently have in order to have enough competition extant to get medical costs back to the realm of affordability, and we would have had them had there been a free market in medical education), and

3. Extract and destroy excess currency as required to avoid inflation.

No other form of Federal non-consumption tax would be allowed (this tax could go to zero when it has done its job if there is no inflation in the system).

The monthly equi-dollar distribution amounts should be of sufficient quantity (assuming $1000, that’s $24,000 Federal tax-free per couple, plus whatever wages and other income they bring in) to be considered sufficient replacement for all forms of corporate, farm and personal welfare, including subsidies, welfare, tax incentives, Social Security (to be phased out), Medicare, the Federal Minimum Wage law, and ALL OTHER forms of Federal financial redistribution schemes; there won’t be any need for separate Federal retirement accounts since there won’t be any income or investment taxes.
For those who like their political solutions morally justified, the monthly equi-dollar distribution amounts can be considered “justified compensation” for the denial of free access to all the property that the government has privatized.

With everybody getting the same monthly amount, and everybody paying the same percentage increase of fiat money, there is no redistribution nor inherent injustice in the plan.