[SATLUG] OT: Human Rights and the G20 in Pittsburg
dkowis at shlrm.org
Wed Sep 30 13:48:31 CDT 2009
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I have turned one rant into an atomic rant of doom. So if you don't want
to read this rant about the Economy and the fallacies of "not enough
regulation" then you should probably just hit the delete key right now.
Or "D" in mutt. :)
> There are some things I object to, such as the removal of regulation of
> the banks and corporations which gave rise to the corporate greed and
> ponzi schemes that are being brought to light recently, and the current
> administration hiring as the new regulator the very people that caused
> the problem. Lack of regulation gave rise to the mortgage derivatives
> which are completely fake and are not an asset at all and should be made
> illegal, Also the variable mortgage mess that has resulted in so many
> foreclosures, which are still rising even here in San Antonio as
> unemployment continues to rise. Our former mayor Henry Cisneros was
> squarely involved in that industry. Next is the Credit card industry
> which due to high rates and deregulation have siphoned away money that
> was previously available for business lending and is now a core profit
> center for banks. Add to that the staggering corporate compensation
> packages that siphoned off the assets of companies even while they were
> losing money hand over fist, and the stockholders paid the penalty. All
> this still continues today, as bank failures are on the increase again.
> I guess this is the NWO as some term it. Locally several organizations
> who are funded by those who hope to make a lot of money from wind farms
> and solar panels raise loud objection to the building of the additions
> to the STP nuke plant, thereby securing our energy future.
I have a few things on this. Insufficient regulation did not cause this
problem. What caused the problem is actually government regulation. The
government saw fit to keep interest rates artificially low through the
Federal Reserve. The central bank thought that they could predict with
accuracy what the market was going to do. This is our Housing Bubble
that you may have heard about on the news. It was not caused by a lack
of regulation preventing people from doing bad things. It is impossible
to completely regulate something so that no one can do anything bad
without preventing people from doing anything at all. The problem was
caused by a lack of risk, ironically. The banks doing the risky loans
had a guarantee, either implicit or explicit, from the government,
either through Fannie/Freddie or the federal reserve itself. This
prompted them to take more risks than they would have otherwise, since
they had nothing to lose. The solution to our woes regarding this system
is simple: Make the banks assume the risk for the ventures they take.
Yes this is going to be a painful transition. But it will correct the
problem and prevent the problem from happening in the future. To enact
this, we will likely have to reduce the powers of the Federal Reserve
Bank, if not abolish the central bank entirely. The market does indeed
work, it may not work as rapidly as central planning can force it to do,
but it will also avoid the crashes that result when the malinvestments
encouraged by the central planning are realized.
I'm not sure about the Credit Card Industry thing. I think that's mostly
people being irresponsible with their money. I, personally, don't do
credit anymore, with the exception possibly of a house and maybe a car
(but not if I can help it.) I will make every effort possible to save up
and pay in cash. I would like it if the inflationary policies of our
banking system went away. Look into fractional lending and you can see
how the values are reduced quite easily.
Regarding the obscene bonuses paid to CEOs. Those bonuses were part of
contracts the CEO signed with the corporation they agreed to work for.
The corporation's board of directors agreed to pay them that much money,
it's their own damn fault for agreeing to it, and they should be ruined
because of their decisions. The stockholders have a vote, usually, so
they're partially to blame for not keeping up with the company that they
own part of. Usually their votes are proxied to one of the board of
directors members. Yes, it's going to hurt the working man, but no
amount of government intervention is going to solve that. Take from one
and give to another doesn't solve anything.
I would love to see the additions to the STP happen. I would love for
San Antonio to make that investment, because nuclear power will pay off
far better than Wind power.
> I don't predict much change over the next few years as the lobbyists
> have firm ownership of the politicians, of both political parties and
> only a very few people that are eligible to vote actually do so and even
> then rarely from an informed basis.
Unfortunately this is true, I have been catalyzed by one Congressman
from Texas this last presidential election and so have been educating
myself on the proper role of government, as intended when this country
was formed, and proper financial responsibility. I try to be as informed
as possible when I go to the polls, or to the primaries, or to talk to
people about candidates and positions.
> I am old enough to remember Pearl Harbor, I remember it well. I was
> attending church that Sunday morning in a tent service conducted by my
> father, who was the pastor when the service was interrupted and he made
> the announcement that we had been attacked by the Japanese. I was 5
> years old at the time. Kind of dates me, huh?
> Oh well, that is my rant, so now I will give it a rest.
Unfortunately, as best as I can see it, and that's only based on a
relatively novice understanding of how markets are supposed to work,
things are still going to get worse before they get better. Those "Toxic
Assets" that you don't hear about so much anymore have not been
liquified for what people believe they're worth. The government has
printed lots of money and used it to bail out these failing
institutions. Until that problem is rectified, things are still going to
go badly. Probably more so, now that foreign nations are starting to
balk at purchasing treasury debt (which is how our money has value,
since it's not backed by anything with intrinsic value.) Our monetary
value is entirely based on belief. A fiat currency.
On a side note regarding fiat currencies: If the dollar was attached, or
backed, by something with intrinsic value, say, for example copper, then
it would be impossible for bailouts to occur. You can't print up money
when it's directly linked to a value without doing one of two things:
You either devalue the currency, or you get more of what it's valued at.
Having a backed currency would solve a great deal of problems with
government, because they can't simply devalue their debts.
I believe it's been said that our dollar today is worth $0.12 what a
dollar was when the Federal Reserve Bank was created. Our dollar is
worth pennies what it used to be worth. Any thing I put into savings is
losing value even as I speak. The only way for me to save money safely
is to invest in commodities or things that hold a value. This debasement
of the currency is a sure way to put most of America into poverty.
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