Excerpt: “The Struggle for Money” by H. M. Murray 1957. The 4 Step Social Credit Solution to the World’s Financial Crisis:
1. Set up a National Credit Account. At present we have only a National Debt Account; the banks having usurped all our National Credit—to create our National Debt which “they” own.
2. Institute a National Dividend;
3. Finance New Production by drafts on the National Credit Account, not out of Savings; and
4. Allow a Just Price Discount on all personal purchases, out of income, for final use or consumption—to adjust book prices to actual incomes. (This counters inflation and guides and motivates society as a whole to increase or decrease production).
Posts tagged ‘Government debt’
A NATIONAL debt crisis, such as the one Ireland is now suffering, tends to follow a four-stage pattern. We see these stages playing out in every episode of national bankruptcy — whether in Latin America, Asia or Western Europe. In Ireland, we are moving towards the third phase.
There is no escaping this pattern because the mathematical corollary of a housing boom is a debt bust. It is only a matter of time.
Now those suggesting that the endgame will be debt repudiation are taking the flak. But it will happen.
Let’s briefly examine the four stages of national bankruptcy.
The first phase is rapid: highly leveraged banks go bust alarmingly quickly. This leads to massive state intervention to prevent a bank run, political upheaval and inklings of just how deep the mess might become.
The second stage is a period of unusual calm. The remedial action taken by the State calms things down, banks don’t collapse, there is no run on the banks and the economy settles in to the grinding reality that falling incomes and too much debt don’t mix.
During this period, vested interests, powerful “insiders” in society, move to protect themselves. Supposedly binding agreements are signed. Likewise, the banks do deals with debtors in the hope that they can postpone the day of reckoning.
full article at source: http://www.davidmcwilliams.ie/2012/10/04/now-all-the-stages-are-set-for-bloody-battle-of-suburbs?utm_source=Website+Subscribers&utm_campaign=100ad2f1af-03102012&utm_medium=email
We have become used to broken promises in this financial crisis. Remember Enda Kenny in December 2010 after the Greens had pulled the plug on the previous administration and political parties were on an election footing. Remember “Mr Kenny said there is no question of defaulting on sovereign debt or on senior bank bonds that are covered by the Guarantee but he believes that the taxpayer can save between €12-17bn by negotiating a sharing of losses with the unguaranteed senior bondholders”. Of course that promise became more nuanced in the subsequent manifesto a month later but no-one ever disabused us of the notion that this government would pursue to success a significant write-down on the remaining senior bondholder debt. And in June this year, Enda emerged from the all-nighter of the EU summit to tell us that some people had just found out he was not someone to be tangled……………………
full article at source:http://namawinelake.wordpress.com/2012/09/10/irish-bank-debt-negotiations-going-nowhere/
- Ireland’s Honohan: Senior Bank Bondholders Should Take Losses (forexlive.com)
- Taoiseach Enda Kenny plays down talk of rifts within coalition (misebogland.wordpress.com)
Posted by Dr. Constantin Gurdgiev
- Issuing Eurobonds to swap for existent Government debt is equivalent to attempting to treat debt overhang by relabeling the debt. While it might reduce the interest burden on the sovereigns suffering from more severe debt overhang, but that is a relatively shallow improvement, especially given that the heavier-indebted sovereigns are already being financed or about to be financed from a collective funding source of ESM.
- Issuing Eurobonds to create capacity for new borrowing is equivalent to fighting debt overhang with more debt. In addition to being seriously problematic in terms of logic, there is also a capacity constraint. Eurozone will sport 89.964% debt/GDP ratio this year and under current IMF projections this debt will remain above 90% (+/-1%) bound for 2012-2015. At these levels, debt exerts long term drag on future growth potential for the Euro area as a whole.
full article at source: http://trueeconomics.blogspot.com/
- Why Germany doesn’t want eurobonds (thepressnet.com)
- Eurobonds: an essential guide (thepressnet.com)
- Hollande steps up eurobonds push – deepened EU economic union discussed (timesofmalta.com)
- High levels of public debt can massively reduce growth: or so says Rogoff and the Reinharts (clubtroppo.com.au)
- This Week: The Eurobond Coalition Plans To Gang Up On Angela Merkel (businessinsider.com)
Greece has shown us in Ireland that we should have defaulted a long time ago our gutless politicians conned us the citizens to take on private bank debts and to guarantee massive gambling debts thus ballooning our national debt. After witnessing the largest default in history last Friday by Greece the markets did not collapse as our clueless politicians told us would happen, the Greek ATM,s are still working and Greece is better off to the tune of 100 billion .Now if we only had an Irish politician who had the Balls to confront the gangsters in Europe and tell them to get stuffed we might have a chance to get our country back on its feet and have a future for our children and the rest of our citizens.The time has come for our politicians to represent the interests of the people of Ireland and not the interests of financial gangsters in Europe!
This is Irelands opportunity to rid ourselves of this ODIOUS Debt.
Default now ……………..If Greece can do this so must we !
- High-yielding new Greek bonds fail to lure investors (business.financialpost.com)
You know, if it wasn’t so damn destructive, it would actually be funny how regulators appear to find it genetically impossible to learn from mistakes – whether it be theirs or somebody elses. In 2008, when the US foolhardedly decided to allow banks to misreport their long term toxic assets bought with excessive, short term leverage, said banks collapsed. It was not as if this was unforeseen. France is anxious to repeat that exercise with its banks and sovereign debt. In 2008, when the US foolhardedly decided to ban shorts on insolvent financial companies, I made a small fortune constructing synthetic short positions with options that skyrocketed in value because regulators dabbled in markets in which they really had no clue. ZeroHedge reminds us that the short ban in the US ended in a 48% drop in financial company share prices.