via ZeroHedge – Back in July, the state of Illinois narrowly avoided a junk bond rating with a last minute budget deal that included a 32% in hike in income taxes. Republican Governor Bruce Rauner vetoed the budget and called it a “disaster,” but both houses of the state legislature voted to override his veto. Meanwhile, S&P and Moody’s were apparently both convinced that the budget deal was sufficient for the state to remain an investment grade credit and all lived happily ever after, if just for a few months.
Competition is good. This might be the most basic tenet of economics. In a healthy economy, when one company is selling a product for well above what it costs to produce, other companies jump in that market to compete with them, reducing the resulting markup on goods. This is good for consumers and workers alike. Products are cheaper and more widely available, and more workers are needed to produce them.
But what happens if, for whatever reason, competition in an economy dwindles, and companies are able to ratchet up prices much higher than what it costs to produce them? It would have disastrous effects. Workers’ wages and employment rates would decline. People would switch jobs less often. Economic growth would slow.
According to economists Jan De Loecker of Princteon University and Jan Eeckhout of the University College London, this is basically describes the US economy since 1980. In a recently released paper, De Loecker and Eeckhout analyzed the balance sheets of listed companies from 1950 to 2014. (In 2014, these firms accounted for around 40% of all sales.) They found that average markups, defined as the amount above cost at which a product is sold, have shot up since 1980. The average markup was 18% in 1980, but by 2014 it was nearly 70%.
Venezuela’s currency, the bolivar, is disintegrating at an incredible pace under the country’s political and economic crisis that has left citizens broke, desperate and in many cases, homicidal. The depreciation accelerated this week, after a disputed vote electing an all-powerful “Constituent Assembly” filled with allies of President Nicolas Maduro, which the opposition and dozens of countries have called illegitimate.
Just two days ago, on August 2, we reported that one dollar would buy 14,100 bolivars, up from 11,280 the day before.
The next day, the bolivar slumped nearly 15 percent on the black market, to 17,000 to one US dollar. Today, it has crashed again, tumbling 16% to 20,142, and down almost 40% in just the past three days.
The imperfect nature of money is easy to see when you consider the ways we use money:
Money is prone to hoarding by people with more than they can spend. They steal it from the circulation like removing the balls from a pool table, mugs from the tearoom or the coins from the carwash.
It can be stolen.
It can be counterfeit.
It can be monopolized.
It can be lent. People with more than they need, may lend it to those that need money tokens for some reason. If the borrower is required to pay back more than they borrowed, it is possible to have more owing than there is tokens.
Substitutes can be created by writing on a certificate: “I owe the bearer of this certificate one token” and “collect it anytime you want!”. Yet the lender may not have the token that that the certificate represents. The token supply has effectively increased by the number of unbacked certificates.
If the volume of substitute tokens is high and they are lent into society at say 10% interest, it is easy to have more debt than money. If there are 100 tokens and 100 certificates, within eight years there will be over 200 tokens owing to the certificate issuers. In thirty years there will be 1744 tokens owing to the certificate issuers, yet there is only 100 tokens and 100 certificates in circulation. Yet the naughty certificate issuers never had the tokens that backed the certificates in the first place. The money system is no longer functioning for the benefit of society. The certificate issuers have bought the land, assets and politicians.
The system is collapse-prone. If trust in the tokens evaporates, the people revert to barter.
If money is hoarded, it can all come out of hiding in one day and flood the system causing loss of confidence.
If you want to permanently fix America’s economy, there really is no other choice. Even before Ron Paul’s rallying cry of “End The Fed” shook America during the peak of the Tea Party movement, I was a huge advocate of shutting down the Federal Reserve. Because no matter how hard we try to patch it up otherwise, the truth is that our debt-based financial system has been fundamentally flawed from the very beginning, and the Federal Reserve is the very heart of that system. The following is a free preview of an upcoming book that I am working on about how to turn this country is a more positive direction… Continue reading Federal Reserve Debt-Money Destroying Mainstream Economy- FED MUST GO
Where do the banks get their debt-money from? NOTHING!!!
They literally just simply CREATE the debt by breaking double entry accounting standards. Debt comes from nothing. It monetizes nothing into existence as debt… aka the LACK of the thing being present. Which is then created and paid back…. Only…. The Debt itself is fraudulent as it violates basic business practices and there are no reserves.
In prior articles, it is explored that only Federal US Citizens may vote in State of Michigan Elections. The fact that there exists STATE CITIZENS (still slaves) outside the FEDERAL CITIZEN status would reasonably indicate that STATE CITIZENS vote in STATE ELECTIONS. That premise is entirely incorrect! At least in Michigan, STATE CITIZENS may not vote in STATE ELECTIONS. Only a FEDERAL CITIZEN can vote in STATE OF MICHIGAN Elections. State of Michigan Driver’s Licenses (STATE CITIZENSHIP) are only conferred benefits upon FEDERAL CITIZENS (aka, Social Security Number [SSN] is required, SSN is Federal Citizenship).
We now see the opposite proposition in email leaks from the Democratic National Convention aka Hillary Clinton, et al. It is being proposed that in some states -with weak Driver’s License/State Citizenship Requirements-
WIKILEAKS: Podesta Says It’s OK for Illegals to Vote With Driver’s License
In the latest Wikileaks Podesta documents John Podesta actually says it is OK for illegals to vote if they have a driver’s license.
Trump says the system is rigged.
Then we see this email the next day.
“US Citizens are SLAVES; US Citizens own nothing, only representing ownership but not actual own; US Citizens are PROPERTY OF THE STATE.”
US Citizens are Legal Presence ARTIFICIAL PERSON insurance franchise corporation trusts-trade names created by Birth Certificates. According to the Bank Note Specialist in the Vital Records for The Department of Health of the STATE OF CALIFORNIA, she said, and i quote, “IT [the birth certificate] would not be a bank note without the bar code!”
The Governmental Services Corporation LOVES to project the false illusion that it is ILLEGAL to NOT have their unlawful adhesion contracts.
It is impossible to understand the world today without knowing what the Exchange Stabilization Fund (ESF) is and what it has been doing.
Officially in charge of defending the dollar, the ESF is the government agency which controls the New York Fed, runs the CIA’s Black Budget, and is the architect of the world’s monetary system (IMF, World Bank, etc).
Through the OSS and then the CIA, the ESF built up the worldwide propaganda network which has so badly distorted history during our times (which includes erasing the awareness of its existence from popular consciousness).
It has been directly involved in virtually every major US fraud/ scandal since its creation in 1934: the London gold pool, the Kennedy assassinations, Iran-Contra, CIA drug trafficking, HIV, and worse…
Former central bank staffer and Dartmouth College economics professor Andrew Levin, special adviser to then Fed Chairman Ben Bernanke between 2010 to 2012, joined with an activist group to argue for overhauls at the central bank that they say would distance it from Wall Street and make its activities more transparent and accountable to the public.
Levin is pressing for the overhaul with Fed Up coalition activists. Many of the proposed changes target the 12 regional Federal Reserve Banks, which are quasi-private and technically owned by commercial banks in their respective districts.
All of that is not surprising. What he said to justify his new found cause, however, is.
“A lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world, he said in a conference call announcing the plan. He described his proposals as “sensible, pragmatic and nonpartisan.”
Momentous things are happening in US politics. No, not the slow, miserable upending of the political system by business Oompa Loompa Donald Trump, but magic — magic! — might finally be about to get the recognition it deserves. Earlier this week, Texas congressman Pete Sessions introduced a resolution to recognize magic as a national treasure, arguing that it “has not been properly recognized as a great American art form” or given the “[status] commensurate with its value and importance.”
To fix this, Sessions wants the House of Representatives to declare magic a “rare and valuable art form,” and pledge to support efforts that ensure magic is “preserved, understood, and promulgated.” To this end, the resolution cites a number of magic’s appealing qualities (including its ability to inspire young children), and praises American magicians like Harry Houdini and David Copperfield. Here’s a brief extract to give you a flavor: