Keywords:
monster,raving,loony,party,finances,monetary,fiscal,money,banking,banks,bankruptcy,credit,ponzi,debt,national,international
MRL:Bankruptcy,What's To Be Done?
Iceland totters on the very brink of bankruptcy....it's banks collapsing due to ridiculous rot and mismanagement,ludicrous investment,idiotic high on our hog spending.....but other nations are equally
threatened,Greece for example,most exposed are countries with large amounts of external debt relative
to the size of their economy. A quick calculation suggests that by this measure, the
U.S. is relatively well off, with external debt about equal to GDP. Japan’s external
debt is about 40-50% of GDP, as is Canada’s and ever increasing. Italy is at about
100%, and Germany and France are in the 140-150% range.The talk of declaring Germany
bankrupt? Some Germans Favor This Drastic Course to End the Payment of Reparations.
From this perspective, the U.S.—with its external debt mostly in dollars—looks like
a bastion of stability. The euro zone has some weaknesses—Belgium and the
Netherlands have uncomfortably high debt levels, and Ireland is extremely high. But
there is a political framework in place which should allow political leaders to take
effective action if they want.
The biggest dangers are for the UK and Switzerland. These countries, although much
bigger than Iceland, are major financial intermediaries with big external debts, and massive amounts of internal currency at all levels, invested and emplaced in banks external to themselves.
What’s more, they are outside the major currency blocs, with debt denominated in
foreign currencies. That means if their currency starts to devalue, their debts will
become more and more onerous.
But is declaring bankruptcy all that bad, will it, would it, repair the systems
which actually have broken down, systems which don't work?
Consider...........a nation declaring bankruptcy, both externally with regards to
other nations and within itself...........what happens...........what's to be
done............consider..........ALL nations, declaring bankruptcy, equally and
equitably, indeed because most every nation on this earth is in fact in debt!!!!!
So, zero things out all round and start again.......using.......the fiated,printed
currency. BUT Internally order must be drawn out of the confusion for it is from
within nations that actual debts and bankruptcy is created........except for those
nations which maintain a horrifically huge military and attempt to finance expensive
foreign wars.
--all debt would be wiped out,externally and internally,personal or
corporate,national...would be wiped clean.Nothing owed to anyone. Internally
corporate debts,personal debts, mortgages etc.....all as it were, franked, paid off.
Canceled if you prefer.
--and everyone owed money would be paid off. 100% face value,the money required
would be fiat, as in printed and supplied by the government, and as they supply
themselves and their creditors, so they supply you,the people and the government,
all creditors satisfied.If you happen not to have personal debts, well you're out of
luck there.
--then,to restart things internally,regardless, every person is given $100,000.
--internally increase regulation penalties and abilities to recover
"lost""missing""conned""embezzled""defrauded investments.
--level out the dividend system,yes more to those who invested more, but only in
proportion,no favoritism or laundered investment dividends.
--an equitable taxation system,based on income and investment, increasing with
increased incomes.
--limit credit charges,finance charges,set the maximum percentage and limit regulate
the finance payment time.
--force corporations,firms,business, to retain a specific portion of their
profits,increasing with increasing profitable income.
Everyone can now invest,build,and or save.
Now that you're restarting your nation,what do you do? Well you do what the African
nations do....................and,for that matter, what each and every nation of the
world actually does.......
If you run your own country and you need some money printing for the currency of the
country, various banknote printing companies may offer competitive quotes for the
print runs, shop around,if yours doesn't offer cheap rates for printing currency
then perhaps a foreign nation can provide your currency printed up for you at a far
cheaper rate........saves some here and there and contributes to the economy!!
Of course orders should be in the thousands of millions, to achieve economy of
scale. For smaller runs, just aren't on the economical side.
In effect,your banknotes are good in your own nation, they are the national
currency, a banknote is a promise by the country to pay the bearer the sum stated on
the note. In the UK, for example, a five pound note is like an I.O.U. from the
Queen. The Queen is generally considered very creditworthy and so people have
confidence that the banknotes are worth what they say they are worth, and in England
and in buying goods from England said sum is good for it. All nations must then
simply accept their currency as being just that, and foreign currencies for use in
foreign nations on an equal par.Now, starting again, you print currency at a defined
rate according to the decided GDP or whatever agreement all the in debt nations of
the world decide(and believe you me ALL nations of the world are in fact in debt, to
everybody and anybody at any given time).Remember the US government not only can
print as much money as they want,and certainly does the bigger the debt grows, the
bigger the motivation becomes to print the money.You can too,you should too.
All that remains is to zero things, and start again....so now you're all off and
running again........"Let the games.........begin."
Secret Squirrel,
MRL,
Minister For Re-Deranged re-Engineering.
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MRL:The US Economy Is One Giant Ponzi Scheme?
A Ponzi scheme is a fraudulent investment operation that pays returns to
separate investors from their own money or money paid by subsequent
investors, rather than from any actual profit earned. The Ponzi scheme
usually entices new investors by offering returns other investments
cannot guarantee, in the form of short-term returns that are either
abnormally high or unusually consistent. The perpetuation of the returns
that a Ponzi scheme advertises and pays requires an ever-increasing flow
of money from investors to keep the scheme going.
The system is destined to collapse because the earnings, if any, are
less than the payments to investors.The entire American economy is one
giant ponzi scheme.
The government consistently overspends, or plans to,
it then needs money, it gets this by printing up Treasury Certificates,
then goes to the Treasury to print up money in return for the printed
certificates.The treasury keeps these, and procures others in exchange
for printed money as the government need arises. At the same time the
government prints up and offers for sale to the general public such
investment certificates as it needs, bonds,stocks, certificates etc. and
when they mature pays for them at rate with the printed up money it gets
and needs from the Treasury for the printed up Treasury Certificates it
prints as it needs.This occurs in all sectors, for all requirements. Now
the government does collect taxes,but collects insufficient taxes to
cover its expanding expenditures. The social security system functions
only on the ponzi scheme fiated currency, since in the social security.
We're using today's tax dollars to pay for benefits for people whose
payments into the system were used to give benefits to people in the
past. The problem is the ever yet more and more unemployed working
people can't generate enough cash to pay for the system. But
from the point of view of the present fiated system,this is no problem
since the government uses the printed treasury certificates to buy more
money as it needs.But the printed currency, is rather etherial in nature,
based on paper, and ink.
The mortgage and banking system is now being bailed out by the government,
using the fiated money printing system since the people cannot afford
the mortgages they got, and the banks cannot sell the houses they now
posses, and the construction industry fails because no one can afford
the mortgages nor the house prices.....so the government prints money up
to pay for these collapsed sectors of the economy,ever subsidizing
increased loses in efforts to keep the system going.
The national debt is another element of the giant ponzi scheme,but is
the actual critical component. In foreign borrowing, we're obtaining
promiseary mortgages of sorts, but creditors around the world are now
having serious doubts we'll be able to pay back what we've borrowed,
unless we continue to print up currency as we do. This is where the
system starts to hang, the foreign nations calling in the
debt,externally,totally.If they call in the debts, the system will collapse, but
then if they collapse the system, and don't accept the fiated currency
used, they won't have currency either,they'll suffer huge financial
losses in themselves, not a wise business move.So the trick is to borrow
from, not rich nations, but nations in a similar position as you, in
debt,using the same system as you do, suffering the same fate if they
try to call in your debts.
Internally the whole country runs on credit,borrowed, or money procured
through mortgage type sources. Whether it is the government borrowing
money to pay for universal health care,for foreign wars,for its own bureaucracy ,the States debts, or the
public using credit cards, we have been steadily moving away from an
accountable currency economy.If we eliminate the ability to borrow,or
buy on credit, then we can only afford to buy what we have the actual
cash to pay out for,and not having the cash, we can't buy.Hence banks
have to have money available to loan out,even if they're running at
negative business economy levels,and no one has any cash since their
income is pledged to pay off their mortgages, car loans, and credit
cards.
Money itself ,and any figures representing it,is actually mostly a
belief system. If everyone suddenly decides money isn't worth anything,
then everything just stops.What that cash will be worth remains to be
seen. Outside the United States our currency is going to look like
Confederate money. But inside the country a dollar bill still might be
able to get you something if anyone will exchange the bill for something
else like groceries. If new money isn't printed up using the fiated
treasury certificate money purchase system, the whole house of cards
collapses.The problem is exactly the same as with the conventional Ponzi
Scheme.
Secret Squirrel,
MRL,
Minister For Re-Deranged Re-Engineering.
..................................
MRL Pays National Debt By Revolving Credit System
National debt...............revolving credit.Credit card companies have cheques that permit you to pay off another credit card company by using this cheque,paying credit card company A with a cheque from credit card company B,then paying credit card company B.
I propose we use the same system, but in a form of revolving credit for the National Debt. In short,we pay our debt off with national credit card company government accounts, with several such companies,without mentioning names, as we're dealing with the financial mechanics of the system,say A,B,C,D,E,we pay A with B's cheque,B with C's cheque etc and on to, and then when arriving at E's cheque,we pay A with E's cheque, and so enter the system round
about ever more, revolving credit revolves constantly, and so we maintain the national debt payments,fully, and so also garner an absolutely spotless credit rating, allowing us to borrow,print up, spend,whatever, yet more.
Everyone knows that such a burden of debt is far more easily borne when it's kept constantly moving instead of sitting heavily upon the nation. Mind you you do notice that none of the other existent political parties have mastered the financial economics of debt management that we in the MRL have.
Secret Squirrel,
MRL,
Minister For Re-Deranged Re-Engineering.
......................................................................
Secret Squirrel's Economic Advice
Here's a bit of economic advice from me, Secret Squirrel,MRL,Minister for Re-Deranged Re-Engineering.......................on helping the Americans in this time of dire economic financial need.......hands across the water so to speak........
There's an easy way for the Republicans,or the Democrats, to make money in this disgusting economic collapse situation, beside simply printing it up as necessary. What they should do, is simply tell the Canadians that their money is now worth only 50 cents U.S. Now since the Canadians have to buy from the U.S. in American dollars(since nobody else'll take Canadian money anyway), what America offers to do, is to BUY up Canadian money giving them useful American money, $1 U.S. and $.1, Canadian taken in..........now that's 50% increase, as in 50 cents Canadian times two to the dollar(Canadian). Now since the British pound is pegged against the Canadian Dollar, we simply have to buy up British pounds using the Canadian money(since Britain has to take Canadian currency). What we then do with the British pound, is convert that to American money..............and PRESTO!! We've made a profit on the international money market, doubling our useful currency!! But are the Republicans for too Elephantine in their stubbornness and not intelligent enough to do it, and are the Democrats far too great the Jackas*es not to?
Secret Squirrel,
MRL,
Minister For Re-Deranged Re-Engineering.
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The MRL Currency Crisis Solution
Now.....you know what they say penny wise.......Pound foolish.........how much is a Pound worth after the government foolishly ignored it in favor of watching pennies?
Presently against the US dollar it is worth $1.41. In 1970(I know it's so retro,but we're not going in to the 60's, times were just too good),it was $2.21, about a 45% crash. The signs were there, the writing was on the wall......the headlines read....."Pound COLLAPSES! TAKE WOODEN NICKLES!"
Well at the local coin shop, wooden nickels can be had for 50cents......consider 20 wooden nickles to the wooden dollar...a wooden dollar is now worth $10US,a considerably higher US dollar rate than the pound! But you'll see why we won't consider the British Pound against the Wooden Dollar,though in light of the modern crisis going to the wooden nickle dollar we would be much better off,there is still yet a better solution.
But I have discovered a much better solution............originally the currency was the egg..................it then proceeded to the evolution of the Groat, which while it did not have much value in its day, as the Pound has depreciated, the Groat has increased to the astonishing figure of $140.00.
Now figure that against the US Dollar the 2009 Pound is worth $1.41, but the same US dollar against the Groat,NOWADAYS (just check any coin shop)the 1885 Groat is a spectacular $140.00. So all that remains to be done, is to change our currency from the Pound Sterling to the Groat Sterling,the 1885 ones.
Ah! Indeed! There's no Groat like an Olde Groat!
Secret Squirrel,
M.R.L.,
Minister for Re-Deranged Re-Engineering.
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