Thursday, November 15, 2012

How Creating Money Will Renew America And The World!

How Creating Money Will Renew America And The World!

It Will Also Create New Jobs, Pay Off The Debt, Pay off Citizen Loans Finance Social Security and Medicare, Pay Off The Criminal Debt of States Like Illinois Which Never Funded Teacher Pensions, and far more!
By Professor Emeritus Peter Bagnolo

Low interest rates are helping only two groups, bankers/Wall streeters and the richest people in America, and the greedy 1%. More on that later, right now let us look at some logic, and some simple math.

If the Austerity mongers gets all that they wish, (One thing they have accomplished according to comparison of words uttered in Germany between the 1920’s and 1940’s, is to mimic as completely as possible, the words of the leading fascists (and worse) of that era); Their desire to end Collective Bargaining, cuts or elimination in pensions, Medicare, Social Security, laying-off millions of people, what will happen? Well, that series of not only stupid and destructive and cuts past the heart and into the bone of commerce.

Their ideas would destroy the discretionary income of approximately 80 – 100 million people and their ability to prosper will be all but annihilated. The companies whom those people currently support by buying goods and services will be diminished and those companies they were patronizing will lay off their own workers and soon go bankrupt and add to the present 31 million out of work and underemployed thus will more than double and perhaps triple the number out of work in the depression of 1929 look like a lark in the park.

1)-Congratulations and thanks to G W Bush, Obama, Paul Ryan, The Bilderbergs, the Rothschildes, The Club of Rome, David Rockefeller, the bankers, Bernanke, Wall Street, in general, the wars, you are close to being demoted to a serf/peasant!

Instead of $2 trillions stolen from students for “loans” spending $45 Billions a month bailing out criminal bankers for bad loans, as well as the $4 trillions with which Bush did the same, and just on Bernanke’s near zero interest earned on savings costing American families total of $385 billions a year, instead allowing at 5% interest on savings totaling $2.31 Trillions Bernanke awarded that to the banks, as well, effectively stealing from the middle classes and redistributing that to the already super wealthy. Add to that the above $4 Trillion’s Bush giveaway, the $3 trillions Obama forked out, the $2.75 the Oil companies have stolen with the blessings of both Bush and Obama, and the cost of wars at $1.2 Trillions a year since 2002 and interest on all, the $5.9 trillions Clinton Surplus blown by Bush on No-Bid contracts to companies like Blackwater, the total stolen form the people, given over to the wealthy and “self-Made” startups by Bush generosity with our money Creating a fascist Nouveau Riche, we have been robbed of $26 TRILLIONS and still no end in sight for jobs or making up what was redistributed in revenge for FDR’s making of the middle class, all those gains and much more right back in the hands of the Criminals who never go to jail.

I see a much cheaper way to undo that fiasco give, not lend the debts of all who lost jobs and homes, and loans for school and to each family of under $125 Millions net worth, 5% - 7% interest on their savings and those that have no savings left $100,000 cash. That would be less than has been spent on the wars, less than given the banks, oil companies, and the wars and would put all of that money back into circulation bumping the economy Upward and creating jobs. Then place excise taxes on ALL outsourcing and imports,  See belowEXCISE AWAY THE OUTSOURCING!”

I have spoken to a number of middle and upper middle class, entrepreneurs, all of which say the same thing; if they had a stronger income from savings, they would invest or spend it on a variety of things, things they have been putting off since 2008 for lack of discretionary income. These are honest men I have known for decades, not the greedy and selfish people we see in the Tea Party. That money would make a needed entry onto the market place.  Epiphany

They are correct because right now $7.77 trillions in savings in US banks at a near zero rate of
Interest Earned On Savings on Deposit-(IEOSD) yielding to depositors next to nothing. Instead of the depositors gaining, the, the banks are keeping that IEOSD.


This is the way they treated and cured the 1920-1921 depression in 18 months, they raised the interest rates on savings. I believe that either the president and Bernanke are ignorant of how to win against a depression or are intentionally trying to crush the working classes, or care more about the outsourcers getting low priced goods to fatten their wallets and grab trade against China.


Herein is how to regain the 31 million jobs and win. The current path is an incompetent approach in terms of creating jobs here in America, is and will be an enormous failure for our working classes. The president locked into incompetence can wriggle out by saying the market is no primed for raising interest rates.

At a rate of 5% on IEOSD the $7.77 trillions would yield $385 billion dollars, which, if given at least that rate of 5% (IEOSD) as was the case before the attack on Iraq) estimates say the depositors would pump into the market place about 75% - 90% of that money. The 99% own about 45% - 50% ($173.25 - $192 Billions) of that cash. They would spend or invest it quickly thus creating sales and jobs. The present rate of near zero IEOSD pumps NOTHING into the economy and Mr. Bernanke wants to keep it that way for almost three more years, while the banks are keeping ALL of what depositors should be receiving. What Bernanke should be doing is buying Treasuries and raising (IEOSD) to at least 5%. This would bring a fortune into play boosting job growth and supplementing income.

MORE? Edit the FED, Nationalize all of the banks. Opt for Public banking in each state. Restrict Money Creation to the Government. Create enough money to finance Social Security, Medicare and all pensions into a Federal Program. Raise interest rates to at least 5% earned on savings.

(2)- By the way, Mr. Bernanke is counting on the senate to not pass the Ron Paul bill to Audit the FED. He thinks Senator Harry Reid will stop the bill. You have to ask yourself why would any non-criminal, honest person want to do that? What is it that Mr. Bernanke wants to keep from the taxpayers and why isn’t an audit by an unassociated auditing service, a part of the regular procedure? Is someone afraid that we would find out that allegedly more than $28 Trillion dollars is unaccounted for, that most of which was given to bankers and Wall Streeter’s including the “The Too Big To Fail” group which has without congressional approval, virtually, nationalized our Treasury and drained it as easily as oil/gas prices are draining the Middle classes? Would stolen be a better word, thus draining the Treasury in the largest bank robbery of all time?

(3)- I suggest replacing Bernanke and placing Charles Schwab, Paul Krugman, Bill Clinton, or Paul O'Neil, all of which, by the way, appear to, at least in some areas of my writing about economy have a parallel view. Raise the interest rates enough to pay 5% IEOSD  on deposits, as before the war. The banks are using the 0% rates to further crush growth. They are keeping and getting rich on interest, which the depositors in said banks should be receiving, but instead we are sucking on a dry teat/well. 

I further suggest, and I have no clue as to why the president has never even mentioned this (just as he never mentioned The 14th Amendment, 4th article of the Constitution to bypass the Tea Party refusal to create a new budget.) Truth is, only a handful of times in history has this nation ever been out of debt. Isn’t it a simple matter to create new dollars, with a flick of a computer key, in the same way the so-called debt was created, unless someone has been tinkering with the Treasury?

EXCISE AWAY THE OUTSOURCING! Also I KNOW how to create even more jobs, most likely the entire 31 million lost since the Reagan era, and this is another thing the president has never mentioned, but which I say will create 31 millions of jobs with the use of Tariffs/excise taxes on imports and outsourced jobs and all product creation off shore, including the Northern Marianna’s. That would bring the imported sales prices of goods AND services (Jobs) to a point where they equal to, or exceeding the sales price of goods and services of domestically manufactured goods which are based upon union wages and benefits.

Below are a few more ideas to vastly recapture the full employment market, but first isn’t it interesting that China is stretching to fully employ tens of millions, even wicking its 250 MPH trains to pick up workers of rural areas, brining them into the cities to work in manufacturing, while America is doing nothing to employ the 31 million un-or underemployed? Keep in mind that the population of China in 2012 is 1,360,000,600, and that of India is 1,220,200,000 compared to the population of the USA which population is four to five times less, at 312,780,968 and yet America cannot fully employ its people and treason is being committed by Corporations by firing and in some cases practicing dictatorial slave labor.

A)-They are also trying in every know way to lower the minimum wage, while Sweden’s minimum wage is more than twice ours at $19.00 per hour and they are doing fine?

B)-Also, why you may ask, can China and India employ so many and make Herculean efforts to bring people to the cities to work? The answer is also simple; The CEO’s of China and India are infinitely smarter and better educated than the dumbed down*, cowardly, gangsters who rise to power by sucking up to whomever is one level above them, not selling but giving their souls to Satan.
*In a recent study it was shown that US corporate CEO’s, trailed the following in intelligence:
Professors, Architects, engineers, Scientists, Lawyers, teachers, Movie directors, producers, comedy writers, script writers, authors in general, entrepreneurs, Mafia bosses, physicians* and certain members of the Avocado fruit, family.

1)- End TARP, replace Bernanke with those I suggested above and raise interest rates to a point which is generating 5% earned interest releasing $385 Billions to discretionary spending into the marketplace?

2)- Create State Banks ala North Dakota, in every state? The State Bank model in North Dakota has worked profitably for 96 years with no semblance of the problems and avarice of corporate banks. Why not has each state create a Public State Bank and nationalize all corporate banks?

3)- Make the energy use-free-Geothermal HVAC the standard by law and cap prices on it so that the grants given for it are not eradicated by greedy HVAC Installers simply raising their prices the grant amount of 30%. Lower energy costs by mandating Insulation of R-30 in walls, R-50 to R-65 Ceilings and build smaller houses of stone/brick? Doing so would perk the building and rehab markets and diminish energy use considerably. Fire all certified appraisers, which appraise homes and replace them with architects, with no ties to banks and builders, thus eliminating the gigantic corruption, which was ignored during the 2000’s.

4- Either by an Executive Order or a new Bill ad huge excise taxes on all imports and currently outsourced jobs which would bring outsourced goods to meet or exceed prices of similar goods made in the USA and do not exempt the robber barons who claim that the pauper wages they are paying workers in the Northern Marianna Islands are just and honest. I suggest Union scale Plus 15% for each Job whether by a corporation of contractor.

5)- Because of the low tax rate for the upper 1% they are each saving, an average $48 million a year, every year since the Bush tax cuts for the very rich. End that discrepancy, now by Executive Order or Bill.

6)-Tie ALL pensions, including state and federal and Social Security to pensions of the US Senate. Tie all healthcares for all citizens, to that of the senate also

7)-Edit the FED, Nationalize all of the banks. Opt for Public banking in each state. Remand Money Creation to the Government. Create enough money to finance Social Security, Medicare and all pensions into a Federal Program.
Raise interest rates to at least 5% earned on savings.

The United States has had a public debt since it’s founding in 1791. Debt relative to GDP rose rapidly during the 1980s under president Ronald Reagan, whose economics policies increased military spending and lowered tax rates. Gross debt in nominal dollars quadrupled during the Reagan era as well as during the era the senior Bush presidencies between 1980 -1992. The net public debt quintupled in nominal terms. Debt held by the public had declined from 28% to 26% of GDP in the 1970s; by contrast, it rose to 41% of GDP by the end of the 1980s. But all of that money went to corporations who grew NO new jobs. You cannot spend money and lower taxes at the same time that is like quitting your job and buying a new house.

“Economist Mike Kimel notes that the last five Democratic Presidents (Bill Clinton, Jimmy Carter, Lyndon B. Johnson, John F. Kennedy, and Harry S. Truman) all reduced public debt as a share of GDP, while the last four Republican Presidents (George W. Bush, George H. W. Bush, Ronald Reagan, and Gerald Ford) all oversaw an increase in the country’s indebtedness.
Economic historian J. Bradford DeLong, former Clinton Treasury Department official, noted that the contrast was not so much between Republicans and Democrats, but between Democrats and "old-style Republicans (Eisenhower and Nixon)" who on one hand (decreasing debt), and "new-style Republicans" on the other (increasing debt). D. Stockman, director of the
OMB under President Reagan, in an op-ed in the New York Times, blamed the "ideological tax-cutters" of the Reagan administration for the increase of national debt during the 1980s."

There is one more thought, it is the sort of thought that some uninformed people may refer to as a “Conspiracy Theory”. In answer to that I will say that everything which has ever happened except “Acts of God” has been planned by humans either by secretly conspiring, or by planning outwardly  and openly. So, their plans (those of humans) either appear when in progress or completion, with knowledge aforethought, or suddenly, with only those involved in the conspiracy, and a handful of research oriented, highly perceptive, somewhat prescient people. This question is one of the latter.

Is it possible that the Bilderberg, Club of Rome, Trilateral Commission, are the underpinnings of the QE stupidity? Isn’t it interesting that the solid rock of material above has never even been mentioned by Obama or anyone in either Party? Where have we seen that before? Oh, in Obama’s failure to even mention the possibility of using the 14th amendment, 4th article to circumvent the “Debt Ceiling”? His reply after several people, including allegedly Bill Clinton, several columnists, me calling the White House weekly for months and other. When finally confronted about it and asked why he did not take that route, his answer was a snippy, “Because I chose not to…” sounding much like the comment falsely accredited to Marie Antoinette, “Let them eat cake…”

Isn’t it odd that Obama has also never mentioned until others fired it off, to take the action Jimmy Carter took during his administration, on the leap from $7.00 a barrel oil/gasoline prices to $25.00 a barrel literally over night? Carter hit them with a Wind Fall Profit tax and capped oil/gasoline at $8.00 -$10.00 a barrel price. Obama never mentions the things he fears and refuses to do and that is conspiratorial, and dishonest. He seems more like a slickster in those moments.

I suggest that isn’t it quite possible that he is purposefully eliminating the most popular and easily utilized means of discretionary income for those unskilled at more complex investments, the working classes, interest earned on savings. As a scientist I do not believe in “coincidences”, but having the banksters and their henchmen steal our money as they rob The Treasury, while oil/gasoline prices are running at 9,000% profit, he does nothing about employment and the “Near Zero” interest ion savings wipes out $385 Billions a year in discretionary income (at 5% interest)? That he also never even mentions an excise tax on outsourcing/imports, which would bring those two accursed job stealing entities to a price slightly above the cost of domestic manufacture here in the Good Ole USA?

Now think of those who hated bankers:
Jesus. Who though he forgave every prostitute of loose woman he met, NEVER forgave any of the rich who were filled with greed and there are more stories in which the evil, greedy rich and those of high political power, were shown for what they truly were/are, instruments of the Demons. The Organized Religions and governments, unfortunately, have the two Prostitutes, and Greedy Rich, in the reverse order of Jesus’ priorities.

Jesus’ only act of violence was against the then “bankers of his day, the Money exchanger artists on the portico of the temple.
Joining Jesus are a list far too long to list here, but they include God The Father, St. Paul, Thomas Jefferson, Teddy Roosevelt, FDR, Gandhi, me etc.
“The liberty of a democracy is not safe if the people tolerated the growth of private power to a point where it becomes stronger than the democratic state itself.

That in its essence is fascism: ownership of government by an individual, by a group, or any controlling private power.”

― Franklin D. Roosevelt

The first truth is that the liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism–ownership of government by an individual, by a group, or by any other controlling private power…among us today a concentration of private power without equal in history is growing.” Franklin D. Roosevelt

 “… Beware the Military Industrial Complex…” 
General/President Dwight D. Eisenhower.

“When the people fear their government, there is tyranny; when the government fears the people, there is liberty” Thomas Jefferson


(2)- (  Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress ...


         etc, etc,etc., etc.
* (Though their IQ, according to some, as well as their ethics, has fallen measurably in the last 50-75 years, but the latter (Ethics) having begun to slip about 117 years ago),

Thomas Jefferson

Are Banks Raiding “Allocated” Gold Accounts?

Beware: “Allocated” Gold May Not Really Be There

In 2007, Morgan Stanley paid out $4.4 million to settle a class-action lawsuit by its clients after Morgan Stanley charged them to buy and “store” precious metals for them,  but neither bought or stored the metals.
(Similarly, a 2011 class-action lawsuit filed in federal court in New York accused UBS Financial Services of misleading silver investors and charging them storage fees for metal that was never actually purchased,  segregated, and stored for them.)
Avery Goodman points out that Morgan Stanley has once again just launched a similar scam, offering “allocated” metals, but gaming the definition so that the holdings are not really allocated.
On May 21st, Matterhorn Asset Management’s Egon von Greyerz alleged that Swiss banks are trading physical gold bullion which is being held in special “allocated” accounts for its customers:
We are stressing to investors to take their gold out of the banking system, not only because there are runs on banks that will continue, but the risk of being in the banking system is major. So you should take the additional step of not just owning physical gold, but also owning it outside of the banking system.
We (just) had an example of a client moving a substantial amount (of gold) from a Swiss bank to our vaults, and we found out the bank didn’t have the gold. This was supposed to be allocated gold, but the bank didn’t have it. We didn’t understand why there was a delay (in our vaults receiving the gold), but eventually we found out why there was a delay (the bank didn’t have the gold). It’s absolutely amazing, but not surprising.
This confirms what I’ve always thought. Not only should you not have gold in banks or even unallocated gold, but even allocated gold. It seems that some banks don’t even possess that. So the risk of having gold in the banking system is major.”
On May 23rd, John Embry – Chief Investment Strategist of Sprott Asset Management, with $10 billion under management – added:
When the customer finally got his gold, it was 2011 minted bars. This made no sense because he had been holding the allocated gold for years. That’s just another example that even the allocated gold in the banking system has probably been loaned out. Many of these customers will wake up one day and realize they entrusted their gold to the wrong people.”
Jim Willie claims that:
Swiss face hundreds of $million lawsuits, for refusal to deliver Allocated gold.
Similar reports have come from Canada and other countries.
Indeed, Jim Willie alleges today:
Allocated Gold accounts across the Western world have been confiscated, sold, and replaced with shabby paper gold certificates illegally…. The account raid practice has been widespread in Europe, London, and United States.

Seizure of Allocated Gold to Pay for Other Debts

Another danger of letting big banks or other large financial institutions hold your gold: the gold might be seized to pay for their other debts.  For example, Barron’s reported last December that MF Global’s trustee raided “allocated” gold and silver accounts … while continuing to charge storage fees:
It’s one thing for $1.2 billion to vanish into thin air through a series of complex trades, the well-publicized phenomenon at bankrupt MF Global. It’s something else for a bar of silver stashed in a vault to instantly shrink in size by more than 25%.
That, in essence, is what’s happening to investors whose bars of silver and gold were held through accounts with MF Global.
The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets—gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words, while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold “warehouse receipts” to prove it—they’ll have to forfeit 28% of the value.
That has investors fuming. “Warehouse receipts, like gold bars, are our property, 100%,” contends John Roe, a partner in BTR Trading, a Chicago futures-trading firm. He personally lost several hundred thousand dollars in investments via MF Global; his clients lost even more. “We are a unique class, and instead, the trustee is doing a radical redistribution of property,” he says.
Roe and others point out that, unlike other MF Global customers, who held paper assets, those with warehouse receipts have claims on assets that still exist and can be readily identified.
The tussle has been obscured by former CEO Jon Corzine’s appearances on Capitol Hill. But it’s a burning issue for the Commodity Customer Coalition, a group that says it represents some 8,000 investors—many of them hedge funds—with exposure to MF Global…
At stake is an unspecified, but apparently large, volume of gold and silver bars slated for delivery to traders through accounts at MF Global, which filed for bankruptcy on Oct. 31. Adding insult to the injury: Of the 28% haircut, attorney and liquidation trustee James Giddens has frozen all asset classes, meaning that traders have sat helplessly as silver prices have dropped 31% since late August, and gold has fallen 16%. To boot, the traders are still being assessed fees for storage of the commodities…

Taking Matters Into Your Own Hands

Given the numerous reports of supposedly “allocated” gold not being there, it should not be entirely surprising that wealthy investors are taking matters into their own hands … literally.
Kirby Analytics notes:
We are hearing anecdotal accounts that beneficial owners of “allocated” gold bullion in London and other European centers have showing up at bullion banks and demanding their physical metal be a] viewed and assayed, and then b] withdrawn from the vaults of banks.
And as we pointed out in 2010:
Omnis’ Jim Rickards, GATA’s Adrian Douglas and others have demonstrated that the big bullion dealers and ETFs don’t have nearly as much as physical bullion as they claim.
Should a substantial portion of investors in these vehicles demand physical delivery at the same time, it could cause a panic in the gold market which would cause a huge run up in gold prices.
Does this mean you shouldn’t own gold?
No … It just means that you should only buy physical gold, and store it somewhere you can actually get your hands on it.
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