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Two Videos I Thought Were Funny

January 20, 2010

Here is a video Greg sent me, which I found to be both hilarious, and a little scary – scary because it’s true.

This other video is about Obama being an absolute failure.  Which he is.

“To think I actually donated to Obama’s campaign.  Me, of all people.  I never volunteer for anything!  Now every day it’s some new broken promise … Putting bills online.   Public financing of campaigns, immediate withdrawal from Iraq, closing Guantanamo, negotiations on C-Span, no new taxes, no more lobbyists.  Obama… You lie.  Why does he still need every word fed to him through a teleprompter?  I can give a speech without notes, why can’t he?”

I think even more important than the points made in this video are the Wall Street bailouts.   Those total trillions and trillions of dollars, literally handing our money to crooks, who still have their jobs by the way, and are paying themselves huge bonuses!   Also we need to audit the Fed, and keep a closer eye on these bankers.  I’ve advocated regulation before here on my blog.  But to clarify, ideally I think a better system would be to end the Fed, implement sound money, backed by a gold standard to keep the government from printing money, end fractional reserve banking, and put banks back on their own.  Sure, I can hear you now, “Wouldn’t that slow down the flow of credit, and hamper economic growth?”  Maybe in an ideal world we can use Keynes’ ideas, but from what I see, our politicians are way too stupid to even understand economics to that degree.  To them, they think, “Oh?  Economic contraction?  That gives us a free license to spend spend spend, all we want!”  And Keynes is more subtle than that.  And even so, I still don’t agree with Keynes.  My views are much closer to the Austrian school. I think all that ends up happening is our politician’s buddies and the big corporations end up getting the money, with a small bit of “stimulus” funds making it into public hands.

I think government intervention tends to inflate bubbles, and make their contractions much more intense.  Without all the intervention the cycles would be far less dramatic.  Greenspan kept inflating homes up and up, trying to keep the contraction from hitting.   For some reason contractions are viewed as this demonic force.  I don’t get that at all.

If everyone in the country is out of debt and living off their paychecks, then all of the sudden the banks issue everyone credit cards, you will inevitably have a boom, then a contraction.  You’ll have a boom when they run up their debts spending borrowed money.  This will lead to companies making huge profits and jobs galore.  But if you issue too much debt, people get buried in them and the interest payments, especially when it’s 30% like on credit cards.  That all starts to eat away at consumptive spending, leading to a contraction.  The money stops flowing to businesses, and flows to the banks instead.   Once the credit cards hit maximum, and people have no more to borrow, they have to start making payments.

So if you issue too much debt, too fast, you get a contraction.  That’s one of our main problems.  Too much debt.  So Greenspan had find ways to artificially make more debt available.  So he inflates home prices way beyond what they need to be by screwing with interest rates and the housing market.  Then people borrow more loans, and spend this fake equity in the economy.  The banks get the money to lend through the Fed.  But, at the same time, this leads to people getting further buried in debt, exacerbating the problem, and making it worse.  That’s what it means to “inflate the bubble.”  It’s not a real fix, but a temporary band-aid, sweeping the real problem under the rug.

Is that the only problem?  No.  We have trade deficits.  Everything in our stores has a “Made In China” label on the back. Our borders aren’t secure.  People are collecting entitlements and aren’t paying into the system.  Our industrial base has eroded, and jobs are outsourcing overseas, making it even harder for people to pay back their loans.  There’s so many other things as well.

When Obama prints money he discourages private investment.  There is no private investment anymore because of all that’s going on in Washington and the Fed.  All investment is coming from the government, and they’re basically just throwing money around, mostly to their buddies.  The more money they print, the more this will erode private capital from flowing into the country and creating new jobs.

From what I see, the more they intervene, the more they’re probably going to have to intervene to keep it all going.  Print money here, buy up GM, GM’s crappily managed… Print more money to keep it going.   It’s so ironic.  Cheap credit made GM go under, and now the same force — money being created out of thin air, is keeping it going.  It’s so terrible.

All of these things are caused because they don’t have a true free market, and this Fed/Washington intervention.  It’d be better to let the free market handle interest rates, and leave banks on their own, without the “lender of last resort.”

Also, the banks have proven themselves to be not only crooks, but untrustworthy in every sense.  They’ve loaned way too much money to the public in credit cards, and home loans, and are guilty all kinds of market manipulation and housing bubbles — all for their short term gains.  So I say go back to how the founding fathers intended – gold and silver being our currency, being issues by Congress, not some private banking cartel with absolutely no oversight.   Let the invisible hand smash those bastards the second they start scheming. But we can’t have that.. “Too big to fail.”  Whatever.

You can’t print gold.  Can’t print silver.  Can’t create gold by some log entry in the accounting books.  Gold is gold.  That’s why our founding fathers, like Thomas Jefferson, intended our country to work that way.  You can’t live free without a currency which is secure.  Which keeps its value.  The Fed claims to stave off inflation, but I agree with Murray Rothbard — they are the real force behind inflation.  Their intervention in the money supply is the primary factor behind inflation.

People who believe a lack of regulation is what got us into this mess are completely wrong.  We have a mix of government intervention, and free market.   We have a banking system where banks can loan out money, and then fall on the Fed when they get in trouble.  That’s the REAL problem.  Crooked politics has made them bloated, and the same Fed keeps them afloat when they scheme, and run wild.

A lot of people wonder how a person who just filed bankruptcy starts getting credit card offers just six months later.  Why would a banker lend them money, when they KNOW they won’t get it back?  That’s because of this fractional reserve system.  They can loan out more money than they have in their reserves, and if they’re ever called on it, the Fed (this quasi-government entity with no oversight – owned and controlled by a private cartel of banking elites) bails them out.

They get money dirt cheap from the Fed (and all the Fed does is print it, or create it out of thin air on the computer), then lend it to you at 30% interest.  They keep the difference.  And even with people defaulting on their cards and loans, they still make money, because of the insane interest rates.  It’s so crooked it’s beyond belief.

You see, George Bush deregulated some things, but not others.  He removed regulations which prevented the cronies on Wall Street to do whatever they wanted, but kept the safety nets.   Reagan may have claimed to follow Adam Smith’s policies, but how can you say we have a free market when we have organizations like the Federal Reserve?  He never touched that.  And Clinton removed Glass-Steagall.  And Obama bails out Wall Street and passes no reforms.   They all work for Wall Street.

The biggest problem is fractional reserve banking.  The banks may have $1,000,000 of their own money, then $10,000,000 issued out in loans.  The $9,000,000 is all cooked up in the books, and if they’re called on it, the Fed just creates the money out of thin air, and hands them whatever they need for super low interest rates.   These days the money is pretty much free.  “Lend banks, lend!  We need more lending!”   That’s the problem!  Too much debt and lending.  Credit’s too easy.  It’s destroying everything.

But I can’t see people becoming informed enough about the system to realize what’s going on.  Banking and money isn’t exciting.  There’s no celebrities posing in bikinis talking about synthetic CDOs, credit default swaps, and fractional reserve banking.  They’ll continue to cling to slogans like, “Lack of regulation got us into this mess!”  A lot more complicated than that!  So, since people will never study economics and banking, I can’t put much faith in the real problems being fixed.  The banking elite and the fortune 500 would never let the Fed go down without a fight.  Bankers make a fortune in this system, and the big corporations like the cheap credit to expand their empires.  The Ron Paul, Alan Grayson “Audit The Fed” bill had some momentum there for a while, but everyone seems to have forgotten about it.  And Sen. Dodd has been trying to get a much worse financial regulation bill through which “has no teeth.”  An easier fix, for the time being, would be to at least regulate the CDS and CDO markets, and audit the Fed.

Pisses me off.  Our system amounts to socialized losses, and privatized gains.  That’s what’s ridiculous.  Regulation will ultimately fail though, I think.  The regulations will always be one step behind, and there will be loopholes.   And we’ve seen how ineffective our politicians are.  Like they’re going to stay on top of the banking system.

But next to Wall Street and banking reform, the second on my list would be the wars, which we can’t afford, and are not justified.  They’re costing us trillions, and for what?  That money needs to be spend here at home, rebuilding our infrastructure, and sending kids to school, and paying for healthcare, and paying off our bills.  In third place I’d put the trampling of the bill of rights, and Obama’s renewal of the Patriot Act, which is police state legislation which needs to be abolished immediately.  Along those same lines we need to close Gitmo, and get rid of this RIDICULOUS airport security.  Those nude scanners have to go.  They’ve went WAYYYYY too far.  Healthcare would be next.  We’re spending at least twice as much as we should be, and people are losing their coverage everyday because they can’t afford the costs, which are mushrooming.  Then the reform bill, which wasn’t great, but at least had SOME fixes… it may well die.  But overall, just like Bill Maher said, this healthcare bill is a blow-job to Big Pharma and the insurance companies.

I can’t stand politics.  Lies lies and more lies.  If I didn’t have my physics studies, I’d go insane.  I find myself searching for some method to utilize quantum physics to warp myself out of here.

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