Karl's rebuttal to Mish

http://market-ticker.org/akcs-www?post=175557

It's time to take a stand my friends.
It's imperative that you read and understand the bill that Dennis Kucinich has written for review.
While I respect Mish, I find myself in total agreement with Karl.
No this bill is not perfect, but what it does do is rope in those imperfections enough to allow them to be quarantined off from the constant infections to the rest of us.
Most of us don't live and breath Wall Street. We're just everyday people that would like a stable monitary base, one that doesn't erode every time Wall Street finds itself crapped out at the table, because once again they bet it all, and ended up rolling snake eyes. Which has happened so many times in the past that the pattern can be seen by a blind person.
The constant cry of "We didn't know" is nothing more than a bald face lie intended to sooth those gullible enough to believe it.
The common man is not sustained by the growth of interest, and yet his meager table is laid with interest aplenty, due to the fact that the fiat instrument (the federal debt note, or more commonly known as the dollar)hold less and less value (buying power)on a daily basis.
Our meager wage is now consumed by the constant of interests and fees, plied by those that reap rich rewards from the continuance of their usage.
Our daily lives have been financed due to our own lack of affordability to maintain it.
It's not from the want of high priced toys that the talking heads all blame it on, but more so from the daily maintenance that living takes, that sometimes calamity overrides, and when that does happen, taking out another loan is the only way most of us are able to continue treading the water of daily life. In other words consolidation of what ever train wreck just hit us.
Our parents and grandparents were so much more wealthy than we, because the value of their dollar was 100%. It was backed by the stability of gold, not debt like the way ours is now.
If "We" the common man are to survive, the system of monitary finance must be changed.
Man cannot live by paper pushing alone, it takes real substance to be nourished, when sitting down at the table of life. The table that was meant to nourish and sustain us all, not just a select few, as they would have you believe.

Of course if you're an "asset manager" you have a hell of a reason to like "small inflation", because that is what creates the dynamic that forces people to spend or take risk instead of saving, as savings are under such an inflationary system a sinking fund.

Dennis Kucinich: Delete The Fed


I'm stunned.

Really.

Dennis Kucinich, which many people have (properly) labeled as one step removed from a communist in the past, and who has a reputation as having a hard-core left slant in his politics, has just written up and introduced a bill that will fundamentally restore the free market - for real - to banking and credit.

It will also **** a lot of people off.

His bill would end the process of money issuance by The US Federal Government as a debt instrument. It would thus restore actual "lawful money" as Ron Paul claims to want, but in a form he has never, ever elucidated. It does, however, exactly match up with the base position I have propounded upon, along with Bill Still and a few others.

Instead, Treasury would issue and spend into circulation United States Notes. The existing "FOMC" would be replicated in Treasury with a mandate identical to The Fed's, with one important addition - a requirement that their operations be neither inflationary or deflationary.

That is, the precise mandate that is required - that United States Money maintain its purchasing power.


http://market-ticker.org/akcs-www?post=175610

The response from Shedlock to my previous missive on Kucinich's bill is amusing.

Denninger is not the only one who is stunned. I am stunned that anyone could support this preposterous idea, assuming they read it and are sober.

Neither sound money nor the free market comes from printing money into existence. Arguably the only thing worse than the Fed printing money out of thin air is Congress printing money out of thing for the purpose of full employment and/or any other absurd ideas Congress has.

As opposed to loaning it into existence at gunpoint (literally in the case of TARP, QE1 and QE2), as is done now?

The last thing we need, the very last thing we need is Congress lending money into existence to pay the bills or to do anything it wants for any reason. Those looking for hyperinflation can find the roots of it in that bill.

Might I remind Mish (or should I rename him as "Mush", as in "for brains") that the bill contains an explicit provision prohibiting that which he claims will happen?

Treasury Shields Citigroup as Deletions Undercut Disclosure

http://www.bloomberg.com/news/2010-10-25/u-s-treasury-shielding-of-citigroup-with-deletions-make-foia-meaningless.html

The cover up of fraud and embezzlement is actually considered and accepted a "Trade Secret" by the Treasury.
What I want to know is:
How long will it be before we see the evidence of vigilante justice being meted out, by the betrayed taxpayers, of the United States?
With every day's new attempt by the various government entities to sugar coat the wide spread racketeering that the investment banks subject this country to, the odds of such an act, are being brought clearly into focus.
It's only a matter of time, and that time, is clearly growing short.



The late Bloomberg News reporter Mark Pittman asked the U.S. Treasury in January 2009 to identify $301 billion of securities owned by Citigroup Inc. that the government had agreed to guarantee. He made the request on the grounds that taxpayers ought to know how their money was being used.

More than 20 months later, after saying at least five times that a response was imminent, Treasury officials responded with 560 pages of printed-out e-mails -- none of which Pittman requested. They were so heavily redacted that most of what’s left are everyday messages such as “Did you just try to call me?” and “Monday will be a busy day!”

None of the documents answers Pittman’s request for “records sufficient to show the names of the relevant securities” or the dates and terms of the guarantees. Even so, the U.S. government considers the collection of e-mails a partial response to an official request under the federal Freedom of Information Act, or FOIA. The Justice Department in July cited an increase in such responses as evidence that “more information is being released” under the law.

China trims holdings of US Treasurys by 1.3 pct.

http://finance.yahoo.com/news/China-trims-holdings-of-US-apf-2137019335.html?x=0&sec=topStories&pos=7&asset=&ccode=

So did they or didn't they? Only time will tell.
This kind of spin will make you dizzy.

China trimmed its holdings of U.S. Treasury debt 1.3 percent in February, the fourth consecutive decline. Those reductions are raising concerns that the U.S. government could face higher interest rates to finance its soaring budget deficits.

The Treasury Department said Thursday that China's holdings dropped $11.5 billion to $877.5 billion. That still left China as the largest foreign holder of U.S. Treasury debt. Japan retained the No. 2 spot with $768.5 billion, a drop of 0.4 percent from the January level.

Net foreign purchases of long-term securities, a category that includes both government and corporate debt, totaled $47.1 billion in February. That compared with an increase of $15 billion in January.

By contrast to the declines in holdings of Treasury securities by China and Japan, holdings by Britain jumped 12.2 percent to $321.7 billion. Hong Kong also recorded a large increase of 4 percent to $152.4 billion.

Treasury analysts said that one explanation for the changes may be that Chinese investors are buying their securities through Britain and Hong Kong. Once a year, the government does an adjustment of the data to sort out ownership of the securities by nationality rather than the country where the purchases were made.

The latest adjustment released in February showed that China had retained its top ranking as the largest foreign holder of U.S. Treasury securities. The adjustment revised data released just 10 days earlier which showed China had cut its holdings so sharply that it had dropped from the No. 1 spot.

Treasury seeks to protect federal benefits: report

http://finance.yahoo.com/news/Treasury-seeks-to-protect-rb-2174460080.html?x=0&sec=topStories&pos=7&asset=&ccode=

This is how bad the lying banks want money, and they intend to take it to.

The Treasury department will release new rules on Wednesday that would prevent banks from seizing a borrower's social security to recover unpaid debt, the Wall Street Journal said.

The proposed new rules, to be published in the Federal Register, will require banks to check if the borrower has received any direct deposits of federal benefits within the past 60 days, the Journal said.

In case the borrower had received a federal benefit then the new rule would require the banks to establish a protected amount equal to the sum of the benefits deposited, the paper said.