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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (26752)	1/31/2010 9:57:50 PM
From: axial	3 Recommendations Respond to of 71463

"The most telling numbers I've read are that the percent of corporate profits contributed by the financials went from 16 percent in 1980 to 40 percent in 2009. Financials have become parasitic in nature." Agree 100%. Especially the parasitic aspect, which gets little attention. Diversion of capital from the economic virtuous circle (not just in the US, but globally) is counterproductive. The phenomenon is a double hit: [1] Enormous capital flows into derivatives: what is euphemistically called Alternative Risk Transfer [2] "Meanwhile, just as the economy most needs massive reinvestment in productive capacity to retool itself for the very different world defined by contracting energy supplies, investment money seeking higher returns flees the productive economy for the realm of abstract paper wealth." Message 26160474 This applies not just to energy, but to whole the spectrum of enterprise and industry. --- This is a pattern of fin de siècle behavior: rats leaving a sinking ship; global departure from economics as it should be practiced to manipulation by bloated finance that by itself, can trigger an economic death spiral. Now, the largest contributor to energy efficiency, infrastructure improvement, industrial realignment, even to employment itself is government money. The sponsors for this kind of distorted and perverse economics are, of course, the speculative entities embedded in our financial system. They have seized control of lawmakers, regulators, and the economy. It's wrong. Wrong. Jim

To: Larry S. who wrote (26752)	2/1/2010 1:00:49 AM
From: Skeeter Bug	2 Recommendations Respond to of 71463

>>I'm not familiar with all of the powers the FED has over the banks but the FED didn't write or eliminate Glass Steagall and, thanks to it's elimination, the institutions we call banks are really investment/speculation houses. It is the Gov., not the FED, that allowed them to expand.<< greenspan played a big role in repealing glass-steagall and the big banks (who own the fed) lobbied hard and eventually got glass-steagall repealed. it is totally incestuous. not to mention the derivatives modernization act... yes, it is ultimately government's fault for allowing the fed to exist and to task them with regulating the mortgage market. they don' tneed to accept the bribes, but they can't seem to say no. >>A capitalist will and should do everything within the law to benefit shareholders.<< and the fed is doing exactly that, which is why i don't support them controlling the money supply or interest rates nor do i support their debt backed monetary scam of a system. >>It was our Gov. that set the bounds such that our banking system has been essentially destroyed. The FED just allowed the system to get our of hand faster than it would otherwise.<< ultimately, you are right. i support efforts to get government to take back the issuing of the money from the banks and to do so without attaching it to debt - think colonial scrip or green backs. >>Yes, but not only the rich - its the nature of a very large fraction of us. But, in Adam Smith's world, there were no "to big to fail" companies, the gamblers lost and the crooks went to jail. The banking system should be helping our economy grow by using the savings of the masses to provide credit for investment. It is now using its capital to speculate in activities like rapid trading, which is effectively stealing from the masses, and padding the pockets of the managements.<< yes, but the powerful only use adam smith when it makes them money. when making money means throwing smith under the bus, so goes smith. >>Our Gov must provide strict regulation to correct the abuse or Faber will be right.<< i'll go one step further. the government must take back the power to issue money from the banks and must issue money that is not backed by debt. see the money masters for more details... 10 min version: youtube.com 3.5 hour version (well worth it...) video.google.com bill still has a new DVD out that i highly recommend... it covers lots of the same information in the money masters but it intertwines some possible interpretations of the wizard of oz and it is only about 1.5 hours long for those too impatient to watch 3.5 of the most powerful video available anywhere... secretofoz.com >>The most telling numbers I've read are that the percent of corporate profits contributed by the financials went from 16 percent in 1980 to 40 percent in 2009. Financials have become parasitic in nature..<< by design of said same financial companies... they effectively tax the money supply every year and they basically control the money supply... no wonder we ended up with this... market-ticker.denninger.net bill also does "the still report" and it is posted on youtube... youtube.com it isn't what backs your currency, it is who controls its quantity... private bankers control the quantity of currency for the benefit of private bankers. THIS MUST STOP! they are criminals and enemies of the state.