The taxpaying majority (TTM) are about to experience the endgame of a deflationary fiat currency. In the future a shopping cart of fiat dollars used to purchase a grocery bag of food is not only deflationary but exemplifies hyperinflation. TTM may ask how a thousand fold increases in the amount of dollars needed to make such a purchase be deflationary and hyper inflationary.
Because TTM’s currency is tied to lobbying and purchasing a capitulated, captured and controlled government it is easy to become conned by this deflationary sleight of hand. TTM must remember that the purchasing power of their currency is being exterminated with extreme prejudice every time government deficit spends, prints dollars and abuses its credit line beyond what is needed to continue governance.
Deficit printing and borrowing dollars only acerbates and delays a day of reckoning when hyperinflation will come roaring to life. As the purchasing power of the dollar deflates prices will have to decrease to fight of hyperinflation. One way of keeping prices down is by lying off more employees. At the same time the equities stock market experiences inflation by computerized front running deep pool HFT as synthetic profits yield obscene commissions and bonuses in a 21% unemployment environment.
TTM is no longer able to borrow a half a million dollars to purchase a price depreciating, deflating housing asset through undisciplined, unregulated and abusive debt financing because of a collapsing credit market. Therefore the price of housing will continue to fall until an acceptable universal accounting, rating and leveraging system is reestablished.
Meanwhile inside the Euro zone Greek interest rates inflate as global investors prepare to pour monies into a illusionary secure deflating interest rate in US Treasuries. The bottom of a deflating credit market must include an unwinding of a $1.5 quadrillion derivatives market. The credit market collapse continues to fuel the current deflationary recession.
As banks hoard monies acquired through a false flag financial operation they prohibit the expansion of credit which is one essential ingredient required to inflate the economy out of the current recession.
Saturday, September 18, 2010
Monday, September 13, 2010
Can The Fed meet Basel benchmarks?
The Taxpaying Majority has not read the two thousand plus page financial reform bill that was recently passed by a congress that also didn’t read the bill. It is possible banking lobbyist submitted legislation that will finally rescue the banking system.
Being proactive, lobbyist may have inserted stringed measures, which meet Basel 3 rules and will prevent another bank bailout? Based on the Fed’s balance sheet can it meet capital requirements set under Basel 3? Can the Fed successfully lobby the Senate and President to translate into law and regulation requirements set under the Basel 3 rules?
Will passage of Basel 3 financial requirements prevent another trillion-dollar financial stimulus package as due date approach? Can the Federal Reserve System (FRS) meet a minimum common equity requirement of 4.5% plus a capital conservation buffer of 2.5%?
How much in dollars is 10% of Fed total capital? Will selling toxic asset back to bailed out banks qualify the Fed as compliant before January 1, 2015? What will be the new leverage ratio under Basel 3? What will returns look like under greater constraints on earnings distribution,discretionary bonuses and high dividends?
Will a counter cyclical buffer prevent another round of excess aggregate credit growth such as in the treasury market? How much is a minimum Tier 1 leverage ratio of 3%? Will a combination of capital surcharges; contingent capital and bail-in debt regulate the Fed sufficiently to prevent another credit crises.
According the Basel 3 rules the Fed has 2 years and 3 months to get its act in order.
Being proactive, lobbyist may have inserted stringed measures, which meet Basel 3 rules and will prevent another bank bailout? Based on the Fed’s balance sheet can it meet capital requirements set under Basel 3? Can the Fed successfully lobby the Senate and President to translate into law and regulation requirements set under the Basel 3 rules?
Will passage of Basel 3 financial requirements prevent another trillion-dollar financial stimulus package as due date approach? Can the Federal Reserve System (FRS) meet a minimum common equity requirement of 4.5% plus a capital conservation buffer of 2.5%?
How much in dollars is 10% of Fed total capital? Will selling toxic asset back to bailed out banks qualify the Fed as compliant before January 1, 2015? What will be the new leverage ratio under Basel 3? What will returns look like under greater constraints on earnings distribution,discretionary bonuses and high dividends?
Will a counter cyclical buffer prevent another round of excess aggregate credit growth such as in the treasury market? How much is a minimum Tier 1 leverage ratio of 3%? Will a combination of capital surcharges; contingent capital and bail-in debt regulate the Fed sufficiently to prevent another credit crises.
According the Basel 3 rules the Fed has 2 years and 3 months to get its act in order.
Monday, September 6, 2010
Can Congress nix Treason?
Treason is at least as old as the creation story of the Christian bible. A beautiful angel was cast out of Heaven because she betrayed God. According to the Garden of Eden story the Serpent betrayed Eve and Eve betrayed Adam. Treason has never been a positive act.
Treason has never been subject to the authority of any political philosophy, government or body of laws. The US Constitution can only highlight the negativity of treason. Treason and the consequence of being found guilty of the act have survived the rise and fall of many nations.
The US congress has tried to repealed Treason by changing laws, ignoring others laws, to outright redefining an Act of Treason. Congress currently indulges in these acts in order to accumulating a debased currency that is slowly becoming worthless. The taxpaying majority (TTM) has accepted the fact that congress can be bought.
Recent history has shown that people can lie to congress, government agencies and expect no retribution for the act of lying. Is it treasonous to inflate the bond market through deficit spending? If the US Bond market should collapse could United States of America continue to wage war in Iran, Yemen or Pakistan?
An international financial cartel (IFC), which is America’s number one enemy is well aware of this Achilles’ heel. When the time is right IFC will have no quorum pulling the plug on the military of U S of A.
Treason has never been subject to the authority of any political philosophy, government or body of laws. The US Constitution can only highlight the negativity of treason. Treason and the consequence of being found guilty of the act have survived the rise and fall of many nations.
The US congress has tried to repealed Treason by changing laws, ignoring others laws, to outright redefining an Act of Treason. Congress currently indulges in these acts in order to accumulating a debased currency that is slowly becoming worthless. The taxpaying majority (TTM) has accepted the fact that congress can be bought.
Recent history has shown that people can lie to congress, government agencies and expect no retribution for the act of lying. Is it treasonous to inflate the bond market through deficit spending? If the US Bond market should collapse could United States of America continue to wage war in Iran, Yemen or Pakistan?
An international financial cartel (IFC), which is America’s number one enemy is well aware of this Achilles’ heel. When the time is right IFC will have no quorum pulling the plug on the military of U S of A.
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