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●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
Because wealthy criminal bankers bribe politicians with big campaign contributions and promises of lucrative employment later, neither the Obama administration nor the Republican party has shown any desire to prosecute the gangsters who cost the American public trillions.
(It’s more fun to punish poor immigrants who only want to build a better life. After all, how much do poor immigrants contribute?)
So, because the crooks have proven to be immune from prosecution, there is no reason for them to stop cheating the public:
Bid to relaunch synthetic CDO unravels
By Tracy Alloway, Tom Braithwaite and Dan McCrum in New York
An attempt by two big Wall Street banks to revive notorious credit boom-era securities blamed for exacerbating the global financial crisis has failed after investors balked at buying some of the derivatives on offer.
JPMorgan Chase and Morgan Stanley have scrapped a plan to sell “synthetic collateralised debt obligations” – sliced and diced pools of credit derivatives – after failing to find investors willing to take on all of the deal’s different pieces.
Banks sold $61bn worth of synthetic CDOs in 2006, at the height of the credit bubble.
President Obama has done nothing to stop the crime, but the public has wised up, so presumably the criminal bankers will find a new scam to foist on the public.
Presumably, Obama, having been well bribed, will do nothing about that, either.
While synthetic CDOs with a range of tranches have yet to stage a comeback, some banks have been striking customised “single tranche” deals with investors.
“Generally, it is hard to be very precise about exactly what is going on in terms of synthetic deals because banks are extremely nervous about talking openly about it,” said Mark Hale, chief investment officer of Prytania Investment Advisors.
Don’t know why the banks should be nervous. The government won’t punish them. Perhaps the nervousness comes from not wanting customers to learn the details of the swindle.
Bottom line: When criminal activity goes unpunished, it will continue, growing ever worse until it IS punished.
That goes for criminal bankers and criminal politicians accepting bribes.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone. Click here
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports