Friday, February 12, 2010
California--Under Attack
The privately held, mostly foreign-owned, strictly for-profit Federal Reserve Corporation recently pinched off California's last gasp for air by instructing banks to reject CA scrip, now and in the future. There is absolutely no reason to do such a thing, except to attack The People. Unable to supply replacement currency to conduct normal economic activity, CA will ultimately have no debt recourse but default, and to surrender their asset base to the Federal Reserve Corporation.
The wisdom of our Constitution prohibiting central bank currency--Article I, Section 8, "Congress shall coin money and regulate the value thereof"--has once again proven timeless. Federal Reserve Notes are unquestionably and irrefutably illegal.
Problem: all U.S. Judges are on the take, every one of them accepts pay in private-issue Federal Reserve Notes, making a fair hearing on the Constitutionality of the Fed an utter impossibility. Post-1913, U.S. Judiciary corruption has slowly become universal. Our Founding Fathers would weep.
The Federal Reserve's war on America continues...
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I don't believe a state government has ever defaulted before, so as a result I expect state governments to be treated quite differently during bankruptcy than a private entity.
ReplyDeleteRegardless, why would the state surrender any assets to the Federal Reserve unless the majority of state-issued municipal bonds are held by the Fed?
In any case, the sooner the state of California goes bankrupt, the sooner the opportunity will come to fix it. California's state government is about as bad as they come: they overtax and overregulate everything to the maximum possible degree -- the worst possible combination. You can hardly do anything in California without running afoul of some law or other.
You can thank the idiotic wild-eyed idealists that never left the 1960s for this state of affairs. Their whose answer to every problem is to regulate it and tax it -- to restrict someone's freedom instead of making additional actions possible. They are both educated and unintelligent at the same time, which is to say they don't actually learn what works (and, more importantly, what doesn't work) from observation and experience.
The demise of the California state government is long overdue. If there's any state in the union that needs its governmental slate wiped clean, it's California.
And despite all that, the California economy (particularly that of the San Francisco Bay Area) acts as if the recession hasn't happened. Gasoline is still north of $3 per gallon, and a typical burger at a typical (non-fast-food) restaurant will still cost you at least $8. And even the real estate market has at least paused its downwards slide. There's no real deflation here, and except for real estate, there never has been.
"I don't believe a state government has ever defaulted before, so as a result I expect state governments to be treated quite differently during bankruptcy than a private entity.
ReplyDeleteRegardless, why would the state surrender any assets to the Federal Reserve unless the majority of state-issued municipal bonds are held by the Fed?"
kcb, there really is no "treating" anything, the more politicians believe they alone control the forces of global capitalism, the lower markets will fall.
And virtually all politicians believe in their heart of hearts, without doubt or so much as pause, that that they control every aspect of every market in the world today.
So....
That is a long, LONG, LONG way down.
Much, much farther down than all but perhaps a few hundred individuals (probably less) in the world fully understand.
As for why the Fed gets the assets, because as the crime kingpin, all FRN denominated debt failures roll up to them.
But the Fed won't hold long (maybe a few years) before they too disappear. The Fed is but a tiny private organization in the big picture, and they stand absolutely no chance of survival given what lies ahead.
FDR wrote: "As for why the Fed gets the assets, because as the crime kingpin, all FRN denominated debt failures roll up to them."
ReplyDeleteName one such failure where the physical assets (and not just currency, which they can print at will anyway) rolled up to them as a direct result of their role as the "crime kingpin" (which I assume means their role of acting as the currency issuer and the fact that the currency itself is an instrument of debt), and not as a result of their participation in "ordinary" debt instruments such as bonds, loans to entities other than fractional reserve banks, etc.
Incidents from the Great Depression qualify, and if your assertion is correct then I would expect to see an abundance of examples from that era.
In other words, let's see some evidence backing your assertions here.
FDR wrote: "kcb, there really is no "treating" anything, the more politicians believe they alone control the forces of global capitalism, the lower markets will fall."
ReplyDeleteI was specifically referring to how the bankruptcy would be handled by the courts.
Bankruptcy is a legal construct at least as much as it is a statement about one's financial condition. The legal system is the only means by which creditors can get anything from a bankrupt entity, so I think it's fair to say that bankruptcy as a legal construct is at least as important as the financial state that bankruptcy implies.
Since your claim was with respect to the assets of California being forcibly transferred directly to the Fed, it follows that you were referring to how the bankruptcy would be handled by the courts, since that is where the law enforcement machinery gets its marching orders from when it comes to forcible seizure of assets.
Or were you, instead, referring to the Federal Reserve's plan of sending in its own private paramilitary force to invade California and seize control of its government directly? :-)
FDR, is there a link for the news that you're referring to?
ReplyDeleteThanks!