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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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In our opinion, we must first atone for the past and open our cards, so to speak.
This means we must assess the real situation and write off all hopeless debts and "bad" assets.
In effect, our proposal implies that the audit, accounting and ratings system reform must be based on a reversion to the fundamental asset value concept. In other words, assessments of each individual business must be based on its ability to generate added value, rather than on subjective concepts. In our opinion, the economy of the future must become an economy of real values. How to achieve this is not so clear-cut. Let us think about it together.
http://www.informationclearinghouse.info/article21896.htm
2 products.
Product A is a no interest loan to home or business owners who pay off thier current interest bearing mortgage and begin paying a no interest loan instead.
Product B is a 1 percent interest loan to the same home or business owners for use in the purchase of power producing products like solar panels, wind generators, electric cars, or any proven economic power "added value" purchase.
Third. Excessive dependence on a single reserve currency is dangerous for the global economy. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model.
Product A and B, produced as a new reserve currency (backed by the mortgages and the power production devices purchased), can compete along side any other currency.
On the one hand, investments in energy saving and alternative sources of energy will be curtailed. On the other, less money will be invested in oil production, which will result in its inevitable downturn. Which, in the final analysis, will escalate into another fit of uncontrolled price growth and a new crisis.
Note how Putin connects "energy" and "currency".
Some news on the "currency" issue is here:
http://www.lewrockwell.com/north/north682.html
The case for price deflation rests on one primary idea: banks will not lend, even though they have reserves to lend. So far, this has proven to be the case. Banks are keeping excess reserves with the Federal Reserve, thereby refusing to lend money to the general public.
Congress is not willing to accept this much longer. Neither is the Obama administration. So, the Federal Reserve System is going to have to fish or cut bait. It is going to have to decide whether or not it is going to subsidize the banking system: the decision of bankers to hold reserves with the Federal Reserve, thereby sterilizing the expansion of money that the Federal Reserve has produced since last September. I don't think the Federal Reserve wants either outcome. On the one hand, it is terrified by the zero-bound economy that it has created. On the other hand, it is terrified by the thought of what the expansion of the Federal Reserve's monetary base will do the money supply, and from there do to consumer prices. I feel their pain. I prefer not to.
Please note the absence of linking energy with currency.
What is power?