#30 AFKANNow | 2008-11-09 22:25
in reply to Dave:
you wrote:
<blockquote cite="">AFKAN,
It is very important to make a distinction.
Business interests heavily manipulate the public. That is color TV, for example.
But those manipulations do not have outsized consequences. I am not saying they don't have critical and important consequences. I am saying they don't have outsized consequences.
Compare that to the consequences of the coercive decisions of government, decisions given the imprimatur of law. This is particularly true of those decisions regarding the monetary system and finance of the real economy.
As a result of core decisions in money and finance, a whole trajectory of unintended and compulsive phenomena transpire that have huge outsized consequences, a chain of falling dominoes that have a life cycle of their own, sucking the whole of society into a political and organizational vortex that nobody planned or intended.</blockquote>
in reply:
True, and we see developments taking place that will reduce America - and the White Race - dramatically.
You go on to make some points that are much more pertinent than many people realize.
you wrote:
<blockquote cite="">For example, it has been approximately 100 years since government overthrew the late 19th century system of trade and business finance by introducing the Federal Currency Note/Treasury Note twins that became the core earning assets of the banking system replacing the role trade acceptances.
This ensconced government to the role of having to finance society's wage bill because in overthrowing the trade acceptance system it became (a consequence that was entirely unintended) the only entity capable of financing large commercial requirements. Banks restructured away from provisioning business credit via trade acceptances simply because they were end-run by the tsunami of new earning assets insured and showered upon them by government).</blockquote>
in reply:
And, you see the implosion of the financial sector - otherwise known as the "credit" market - in the Banker's Circular that ordered banks to withdraw TWENTY-FIVE PERCENT of their loans going into the Great Depression.
This led to a horrific cascade of cross-defaults, and a spiral that led to horrific financial events, particularly at the State level.
I'll discuss that directly; it is far more relevant to our situation than anyone dares discuss, much less admit.
you wrote:
<blockquote cite="">That is what really caused the economy of private sector cones erupting around spigots of Federal spending that we know today. But this was never intended by government to happen. It was simply clueless that its decisions would effect banking practices to the extant of restructuring the entire economy and having this consequence.</blockquote>
in reply:
Here is where I tend to disagree.
They know pretty much EXACTLY what the net effect of their actions will mean, for them.
I notice that, even when we offer courses in finance, we don't offer courses in international financial operations - a subject I wish I had paid a LOT more attention to.
I have yet to meet a banker who did not want to own the world, and make it pay interest to him.
I mean that literally.
you wrote:
<blockquote cite="">The Federal Currency Note/Treasury Note system is now dying and nobody is coming to grips with it. Huge structural unemployment is erupting and its welfare underpinnings can no longer be financed.</blockquote>
in reply:
I recall the very real probability of the USG declaring "force majeure" in 1937, and again, in 1937, on payment of Treasuries.
Now, we have created tsunamis of what are "near-Treasuries" (FM/FM paper), and the countries we forced to buy it are demanding it be paid, in time and in full, or they will stop rolling it over...
Everyone seems to be ignoring the tremendous odds of serious municipal bankruptcies (CALIFORNIA?) over the next two years; what will Obama do with such a situation?
You can guess. and you can guess what it will mean for the USD, and American economic sovereignty.
If you will look at maps of your larger counties, and then look at maps of them before the First Great Depression, you will see they were merged when the smaller ones went into the constructive equivalent of bankruptcy.
What might be the functional equivalent of this at the level of the nation?
Look at the natural resources on "government owned" lands, and imagine their value in challenging economic times.
I am deadly serious.
you wrote:
<blockquote cite="">The only way business is going to be restarted is keiretsu associations that will have to self-finance industrial and commercial trade credit by forming their own proprietary clearing and settlement systems using the Internet and XML.</blockquote>
in reply:
I suspect the day is before us where transnational corporations - really, anational corporations with "flags of convenience" - will form the functional equivalent of "house banks," and work with governments to allow them the functional equivalent of "special drawing rights," all to be settled in market baskets of commodities, all being truly digital, and requiring Financial XML.
DTCC could probably knock something like this out in a month, and make it available from Geneva to Shanghai.
Hell, they probably already have.
you wrote:
<blockquote cite="">Sheer necessity will compel business to do it. Business must provision their own commercial and trade credit completely outside of the banking system and settle obligations using something other (units of a basket of commodities from a commodity fund for example) than government issued currency.
That is because the government issued currency is rapidly becoming no good. It can't finance wages. It can't finance welfare.</blockquote>
in reply:
In effect, this creates a new feudal society; the one, transnational, and ruthlessly meritocratic, and the other, backwards, and doomed to remain in a state where they are dependent upon the kindness of strangers, and there will be little "kindness" to be had.
The problem is, all of the "sustainable economy" models really look like a rationalization for a kinder, gentler, "Brave New World," with the important difference that there is really little need for about 90% of the current population of Humanity.
I've been looking more closely into <strike>eugenics</strike> developments in genetic research, and I am damn confident that, in a century - the blink of an eye, in the history of Humanity, Homo Novus will look at us as we look at house pets...
you wrote:
<blockquote cite="">The Federal Currency Note /Treasury Note twins are no longer capable of playing the role nobody planned or intended them to play in any event.
75 years from now people will view them as antiquities, a puzzling curiosity from the past. They will ask themselves, how did society ever function on such a harebrained system that engendered so much unnecessary risk?</blockquote>
in reply:
I could not agree more, as all of the "risk management" models have totally collapsed, depending as they are on a measure of value that is far too flexible, when it needs to be strong, and far too strong, where it needs to be flexible.
I suspect the guys meeting at G-20, and some sharpies from DTCC, are already laying out ideas for the new international currencies - for now, a linkage to gold, for international transactions, and, in time, whatever digital currencies DTCC comes up with.
you wrote:
<blockquote cite="">Our nonwhite populations are clueless as to how marginal they are to the current system. They have absolutely no idea what is really going on and what really transpired in the past to give rise to the current system. And more importantly, they are utterly blind to their own irrelevancy.
There is no way our nonwhites can play the current system successfully because nobody, regardless of the color of their skin, can play the current system successfully. IT IS DYING. That is all there is to it.</blockquote>
in reply:
That is the deeper issue no one else - other than White people - can DARE face, and that is what can be done when the System as we have known it essentially implodes.
The "de-leveraging" - deflation on a horrific scale - that is taking place will work to insure governmental stability, as the government gets to redefine "America" to its convenience.
Amazing things can be done in such times, but the Racial perspective looks to the issue of economic definitions, and asks "what are the new stores of value, the new measures of value, and what are the new values?"
The system that is dying - that has elected the Children of the Sixties of help it commit the functional equivalent of suicide - reminds me that there have been several Forms of "The United States of America," from 1776 to 1865, from 1865 to 1933, and from 1933 to, say, 2020.
Each, you will note, had a different currency, and different economic systems, and systems of governance.
The new currency will take as many Forms as are needed, and the Great De-Leveraging will force national recessions to manifest as horrific regional depressions. Think "Detroit." Think "any economic model that depends on cheap fossil fuels." Think horrific depopulation, by those who can make something for themselves somewhere else.
Think of America as a layer cake of skills, and competences; over here, Detroit outside RenCen, over there, Silicon Valley, and, in terms of Mindset, Atlas Shrugged's "Galt's Gulch."
In the short term, the de facto merger of America and Mexico, with China controlling their resource colony of Canada, will lower the standard of living in America substantially, and a lot of people have no idea what to do in that situation.
In the long term, I expect all of the "sustainable economy" models really look like rationalizations for a kinder, gentler, "Brave New World," with the important difference that there is really little need for about 90% of the current population of Humanity. That is more feasible than many might suspect.
I've been looking more closely into <strike>eugenics</strike> developments in genetic research, and I am damn confident that, in a century - the blink of an eye, in the history of Humanity, Homo Novus will look at us as we look at house pets...
Until then, I am forcing my Nephews to try to develop the Mindset that will enable them to survive, and prosper, as members of the "Necessary and Hated Minority" that makes all of the difference.
Daily, I remind them that they must think in terms of building the Civilization that will allow us to to return "To The Stars," and they must not be Victims, placed on the altar of Political Correctness.