The need for wealth money.

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Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
The need for wealth money.

If you sincerely believe the problem is too much money, then you're either completely mentally incompetent or an austrain economist.

Wake up America, this country is about to enter a debt black hole unless we make some radical changes to how all money is put into circulation.

Don't believe me?  Follow the link below.


The League of Minnesota Cities contracted

with researchers at the Hubert H. Humphrey

Institute of Public Affairs at the University of

Minnesota to carry out an analysis of city

budgets.

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Re: The need for wealth money.

 

 "Just as incredibly, this fact - the key to understanding how the international financial system actually operates and why the world is in such a mess - is discussed virtually nowhere in mainstream circles: not in The Financial Times, not in The Economist, not in the broadsheets, not in Parliament, not in the City and not in the economics departments of most Universities.

Either the process is unknown in these circles therefore - a sign of mediocrity - or it is indeed understood but kept deliberately quiet - a sign of wickedness.

Let me repeat: supposedly ‘sovereign’ Governments - representative of their people, at least in theory – do not control the single most important mechanism when it comes to their economies: namely the production and distribution of money. That role has been diverted in large measure to the banks which manufacture money out of nothing and charge interest on that conjured-up money." - Darius Guppy

 

 That said....

 

 Post these threads in Chapter 7 or 8 ffs....

 

 Monetary issues are VERY well catered for on CM... and yet still you and DrSovreignLuv  choose to post them in "General Discussions"

 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: The need for wealth money.

Plato,

I'll take note of that, it's just your the first person I remember saying we should post these in specific chapters.

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: The need for wealth money.

According to the Report linked by Thomas, Cities of every size, in every region, will be broke by 2015 if no policy changes are made in Minnesota.  Unfortunately Minnesota is better off than most states:

State Budget Crisis: 46 States Facing 'Greek-Style Deficits'

Even as the U.S. appears to be on the mend -- gross domestic product has climbed three straight quarters -- finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. Forty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities, a Washington research institution. State spending is 12 percent of U.S. GDP.

"States are going to have to cut back spending and raise taxes the same way Greece and Spain are," says Dean Baker, co- director of the Center for Economic and Policy Research in Washington. "That runs counter to stimulating the economy and will put a big damper on the recovery in the latter half of this year."

The suggested cutbacks in expenses and higher taxes are going to increase unemployment and stagnate the real economy in bringing about the Greatest Depression.  You have to wonder how many underfunded pensions will be at risk at a time when the cost of living is rising.  Municipal bonds are also in trouble:

Muni Swaps' Wider Risk Spread Shows Default Fear: Chart of the Day

The widening gap between the cost of insuring U.S. municipal and federal debt shows investors are betting that state and local governments can’t contain their budget problems, according to Macro Risk Advisors LLC, which predicted the European crisis.

The CHART OF THE DAY shows the premium for credit-default swaps linked to 50 U.S. municipal bonds has jumped to the highest in 14 months while Treasury swaps are little changed. “Deficit vigilantes” are betting that local authorities can’t balance their budgets, Macro Risk said in a report June 23.

“People are just starting to wake up to this,” said Justin Golden, a strategist for the New York-based firm. “The market is starting to assign greater levels of fear. The further you go out, things look challenging for a lot of these states.”

With state deficits estimated to total $104 billion in fiscal 2011, “it seems likely that the federal government will eventually be faced with the choice of allowing municipal bankruptcies or backstopping the states,” the report said.

We're on a trajectory for most state and local governments to be insolvent relatively quickly.  We are offered two choices by the media and most pundits - austerity (depression) or increasing debt by trying to pump money into the system (stagflation and the debauching of our currency).  Austerity is national suicide and pumping simply delays the problem while making it worse.

This is all by choice, not necessity as we choose to continue with the private debt based money system that is impossible to sustain mathematically.  The only way any meaningful change will occur is if people figure it out and a popular grass roots move takes hold to break the chains of the private debt based system.  It seems to me that such a move has the best chance of success starting at the state level.

plato1965 - thanks, really enjoyed your quote by Darius Guppy; never saw that before.

Larry

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