It is obvious to all but those in government that the markets are attempting to mark prices down to realistic values and that this will facilitate recovery. The markets are attempting to weed out inefficient firms. It is obvious that there is overcapacity in some lines of production and some asset classes, and this capital must be priced out at market and brought into uses that are economic at the new and lower prices. It is obvious that the capital structures supporting many of these investments likewise have to be marked down in price and a good deal of it must disappear altogether. This is what deleveraging means. It is evident that there are losses to be borne by those who invested in these assets and those who hold this capital. FULL ARTICLE
|
 |
12 comments ↓
They Bail Out, We Opt Out. All of Our Economic Problems Find They Root in the Existence of Credit. Out of the $5,000,000,000,000 bail out money for the banks, that is $1,000 for every inhabitant of this planet, what is it exactly that WE, The People, got? If Your Bank Doesn’t Pay Back Its Credits, Why Should You Pay Yours? Or Else … If the Banks Get 0% Loans, How Come You Don’t? At the Same Time, Everyday, Some of Us Are Losing Our Home or Even Our Jobs. Credit is Mathematically Inept, Morally Unacceptable. They Bail Out, We Opt Out Opting Out Is Completely Anonymous. The Credit Free, Free Market Economy Is Both Dynamic on the Short Run & Stable on the Long Run, The Only Available Short Run Solution. I Am, Hence, Leading an Exit Out of Credit: Let me outline for you my proposed strategy: ✔ Preserve Your Belongings. ✔ The Property Title: Opt Out of Credit. ✔ The Credit Free Money: The Dinar-Shekel AKA The DaSh, Symbol: - . ✔ Asset Transfer: The Right Grant Operation. ✔ A Specific Application of Employment Interest and Money. [A Tract Intended For my Fellows Economists]. If Risk Free Interest Rates Are at 0.00% Doesn’t That Mean That Credit is Worthless? Since credit based currencies are managed by setting interest rates, on which all control has been lost, are they managed anymore? We Need, Hence, Cancel All Interest Bearing Debt and Abolish Interest Bearing Credit. In This Age of Turbulence The People Wants an Exit Out of Credit: An Adventure in a New World Economic Order. The other option would be to wait till most of the productive assets of the economy get physically destroyed either by war or by rust. It will be either awfully deadly or dramatically long. A price none of us can afford to pay. “The current crisis can be overcome only by developing a sense of common purpose. The alternative to a new international order is chaos.” – Henry A. Kissinger They Bail Out, Let’s Opt Out! If You Don’t Opt Out Now, Then When? Let me provide you with a link to my press release for my open letter to Chairman Ben S. Bernanke: Chairman Ben S. Bernanke, Quantitative [Ooops! I Meant Credit] Easing Can’t Work! Yours Sincerely, Shalom P. Hamou AKA ‘MC Shalom’ Chief Economist – Master Conductor 1 7 7 6 – Annuit Cœptis Tel: +972 54 441-7640 http://edsk.org/
They Bail Out, We Opt Out.
All of Our Economic Problems Find They Root in the Existence of Credit.
Out of the $5,000,000,000,000 bail out money for the banks, that is $1,000 for every inhabitant of this planet, what is it exactly that WE, The People, got?
If Your Bank Doesn’t Pay Back Its Credits, Why Should You Pay Yours? Or Else …
If the Banks Get 0% Loans, How Come You Don’t?
At the Same Time, Everyday, Some of Us Are Losing Our Home or Even Our Jobs.
Credit is Mathematically Inept, Morally Unacceptable.
They Bail Out, We Opt Out
Opting Out Is Free and Completely Anonymous.
The Credit Free, Free Market Economy
Is Both Dynamic on the Short Run & Stable on the Long Run, The Only Available Short Run Solution.
I Am, Hence, Leading an Exit Out of Credit:
Let me outline for you my proposed strategy:
✔ Preserve Your Belongings.
✔ The Property Title: Opt Out of Credit.
✔ The Credit Free Money: The Dinar-Shekel AKA The DaSh, Symbol: - .
✔ Asset Transfer: The Right Grant Operation.
✔ A Specific Application of Employment Interest and Money.
[A Tract Intended For my Fellows Economists].
If Risk Free Interest Rates Are at 0.00% Doesn’t That Mean That Credit is Worthless?
Since credit based currencies are managed by setting interest rates, on which all control has been lost, are they managed anymore?
We Need, Hence, Cancel All Interest Bearing Debt and Abolish Interest Bearing Credit.
In This Age of Turbulence The People Wants an Exit Out of Credit: An Adventure in a New World Economic Order.
The other option would be to wait till most of the productive assets of the economy get physically destroyed either by war or by rust.
It will be either awfully deadly or dramatically long.
A price none of us can afford to pay.
“The current crisis can be overcome only by developing a sense of common purpose. The alternative to a new international order is chaos.”
- Henry A. Kissinger
They Bail Out, Let’s Opt Out!
If You Don’t Opt Out Now, Then When Will You?
Let me provide you with a link to my press release for my open letter to Chairman Ben S. Bernanke:
Chairman Ben S. Bernanke, Quantitative [Ooops! I Meant Credit] Easing Can’t Work!
Yours Sincerely,
Shalom P. Hamou AKA ‘MC Shalom’
Chief Economist – Master Conductor
1 7 7 6 – Annuit Cœptis
Tel: +972 54 441-7640
http://edsk.org/
Shalom – I don’t have time today to read through all those links you provided, but am curious – do you believe that credit should be abolished, or are you saying that it’s just not a good idea to use?
In a free society, people should have a choice. But, as long as government wasn’t supporting the expansion of credit through artificially low interest rates, fractional reserve banking, etc – it wouldn’t be nearly as pervasive as it is today.
My research show that Credit is the most dangerous thing on earth. It also causes the instability of the system: no system can be stable with credit because it causes an explosion of the income disparities hence lower interest rates hence an oversupply of savings (It is what we are witnessing now).
What people have difficulty understanding is that the sub prime mess was just a symptom. Even without it the system would have collapsed my be in one year or two.
A Credit Free, Free Market Economy will solve all the problems on the short run.
MC – can you explain how an economy would be credit free? Is this by banning it? Because, well, that wouldn’t be free market. Curious.
Dear Jackand,
In order for a contract to exist and a credit is a contract someone must enforce it.
As we will not enforce them and won’t give the possibility to any law enforcement agency to enforce them I find it difficult to imagine someone lending money under thse conditions.
Credit with interest rate is akin to theft and credit have caused most of the problems of humanity. It is like the original sin.
You will find in my tract: A Specific Application of Employment, Interest and Money a partial list of the sufferings which origin can be traced to Credit.
The law forbids theft would you consider that it prevents the operation of free market?
Even if a sucker did enter in a credit contract, because we don’t control people but their account it will be an easy task to spot movement of cash without corresponding goods or services: that would necessarily be a credit. We would then disconnect both the borrower and the lender.
What people don’t readily understand is that most of our regulation and government interventions are meant to correct the dysfunction of credit.
If we ban credit the size of government, it is my own estimate, would shrink by 90%. Yes you read that correctly 90%.
How is that for Free Market?
MC, I’m going to have to strongly disagree here. While your perspective is definitely appreciated, it’s clear that you are misrepresenting the nature of interest rates – which is really 2 components, 1 being a time preference, and the other being a component due to a possible default on a loan.
you’re also mis-representing the nature of theft. Theft is the taking of property by force or by fraud.
Interest rates in a mutually agreed upon setting a perfectly compatible with a free society. If someone gives me $100 dollars under the promise that I’ll give them 5% per year until it’s paid in full, that’s not theft.
If no one has forced me to that decision, and no fraud has been committed, then it is done by my free will. I have done little more than paid an additional ‘rental’ fee for keeping another person’s property for a period of time.
That’s my personal choice. Period.
Also, the idea of free markets, or here – our ideas of a free society – are not compatible with the concepts of “we” or “governments” banning freely-made choices.
If anyone is interested, there’s plenty of reading out there on this topic. Murray Rothbard’s treatise “Man, Economy and State” is the most comprehensive.
“MC, I’m going to have to strongly disagree here. While your perspective is definitely appreciated, it’s clear that you are misrepresenting the nature of interest rates – which is really 2 components, 1 being a time preference, and the other being a component due to a possible default on a loan.”
I never said I disagree, but what is new?
“
“you’re also mis-representing the nature of theft. Theft is the taking of property by force or by fraud.
Interest rates in a mutually agreed upon setting a perfectly compatible with a free society. If someone gives me $100 dollars under the promise that I’ll give them 5% per year until it’s paid in full, that’s not theft.
If no one has forced me to that decision, and no fraud has been committed, then it is done by my free will. I have done little more than paid an additional ‘rental’ fee for keeping another person’s property for a period of time.
That’s my personal choice. Period.”
The main problem is that according to your wealth the price of your credit and the amount you get varies. What if an ice cream seller tells you you are blond so it is one dollar more and you can have only one?
I don’t believe that follows the law of free Market.
Second you talked about the “component due to a possible default on a loan.”
That component varies accordimg to the economic class you belong. And guess who pays the premium the one whho didn’t default the one who did never pays the premium. Do you feel there is some sort of equity.?
When your bank get 0% loanns from the FED at what rate does it lend it to you, if at all?
Now I wonder why we are discussing, there is no Credit market anymore so the advantage of what exactly are you defending.
Credit based economy is dead you will have to come to term with it.
Now if you need something else, I have. If you don’t need anything I can deliver too. You take it you live it it is your problem not mine.
To tell you the truth I have been working on that crisis for nearly 15 years now. So you see time is on my side.
If People will use the Credit Free money? That I don’t know. What I do know is that they will spend it
MC, thanks again for the follow up. While I completely agree that people shouldn’t be using credit and taking on debt, it is still their choice if they want to.
This country needs more savings and more cash-based transactions – and more production. Not more spending and more debt.
But that’s not what I’m talking about here. I’m talking about free will, free choice.
Here’s the hypothetical:
If Joe voluntarily agrees to borrow money from Dave and pay it back with a 10% interest rate – would you advocate fining them, or putting them in jail?
What you have to understand is that even if you never got in debt. The economy fell down because of the existence of credit. And you are suffering from it weather or not you use it. The decision of people do influence the community. I agree with you that you should decide for your self weather or not to use drugs. but what if I get intoxicated because you use these drugs?
And after all how much people owe you and how much do you owe?
Are you the attorney of your banker?
What CAPM says is that you are rewarded for taking systemic risk. There is a systemic problem the bankers need bail out. For what have they been rewarded all those years for insuring a risk they can’t assume?
The essential question that was asked isn’t being answered here. MC, let me put it to you directly.
If I personally borrow money from a business, and by my own choice, agree to pay it back over 3 years with a 10% interest rate, would you fine or jail me? Or the business? Or both of us?
That’s the important question. Your answer?
Hey MC, I think there was a very important question that you haven’t answered here – the one asked by #11 Spoonerite. Care to contribute your thoughts? Are you interested in locking people up for engaging in these kinds of activities?
Leave a Comment