The debt crisis is a global crisis that cannot be ameliorated by the policies of one country. Banks are going down all over the world because profits have been made through the creation of debt instead of by production as world production is contracting due to over supply of commodities
The US total debt is $53 trillion dollars and growing. It is now estimated that 6.5 million people will loose their homes by 2012, not to mention credit card, personal loan and auto-loan defaults which are rising rapidly. The banking sector does not have the capital to cover these losses, nor does the US treasury. You also presume that the the political establishment is a lawful democratic institution, it is nothing of the sort. Its a thieves kitchen that is firmly the the pockets of big business. They have laws in place now that are solely for show that do not enforce. There is no oversight and no accountability. They have absolutely no intention of doing anymore than what is being done, short of cutting wages, laying off more workers and social spending, putting the burden of this crisis on the squarely on the backs of the workers. Government is not here to look after the interests of workers, it is the policy making division of corporate USA On Sep 13, 8:52 am, martycarbone <[EMAIL PROTECTED]> wrote: > A Report to the Banking Committees of the U.S.A. House and the Senate > > Friday, September 12, 2008 > My wife and I intend to make this material into a report and deliver > copies to every member of both Congressional Banking Committees -- > sometime in May of ‘09. Your advice is requested. Please help us > sharpen our arguments. > > The Five Most Important Banking Problems ... and ... > The Simple Legislative Action Congress Can Take To Solve Those > Problems > > Problem #1: An Excess of Money in the Money Supply Will Lead To > Inflation > > Problem #2: Banks Do Not Suffer When They Make Bad Loans > > Problem #3: The Government Does Not Use Double-Entry Bookkeeping > > Problem #4: Contract Laws Are Not Routinely Applied To Monetary > Transactions > > Problem #5: The People of “We The People” Are Not Encouraged To Start > Banks > > ------------------------------------------------------------------------------------------------------------------ > Problem #1: An Excess of Money in the National Money Supply Will Lead > to Inflation > Discussion: Lots of people have a deep-rooted belief that a > significant increase in the money supply will always lead to inflation > -- which is a devaluation of money. We think that is nonsense. If the > newly created money is put into the system in such a way as to > increase wealth (those things that we value and which lead to a better > average life) -- the added money will not be inflationary. > > Action Needed: Laws should be passed that will specify banks will > primarily lend money to people who have a good plan to create wealth > with that money. > > Problem #2: Banks Do Not Suffer When They Make Bad Loans > Discussion: The “fractional reserve system” is often seen as being the > main source of economic problems, because it “(a) creates debt-money > out of thin air, (b) leads to an unhealthy increase in the money > supply and (c), inevitably, inflation”. I believe these three > negatives are always the result of lending wherein the banks escape > the natural control of the fractional reserve system on their lending. > Under the present system -- the banks sell off most of their loans (to > Freddy and Fannie) and escape what should be their loss when loans go > bad. That can easily be corrected by laws which forbid the selling-off > of loans by the creator of those loans. > > Action Needed: Laws should be passed that will mandate banks must not > transfer ownership of the loans they create before the term of each > loan is reached. > > Problem #3: The Government Does Not Use Double-Entry Bookkeeping > Discussion: The government should change to a double-entry bookkeeping > system wherein all transactions involve (1) assets, (2) liabilities , > (3) income and (4) expense. Such a system is universally recognized as > being the only way to keep track of the financial status of any > enterprise. The main advantage of doing this is that government > “spending” on worthwhile infrastructure would not immediately be > considered an “expense”. The money spent in this way would go into an > “asset” account that would be counted as an expense in accordance with > a dedicated depreciation schedule. > > Action Needed: Laws should be passed that will mandate double-entry > bookkeeping on all monetary transactions. > > Problem #4: Contract Laws Are Not Routinely Applied To Monetary > Transactions > Discussion: All monetary transactions should be considered contracts > and should be analyzed in terms of contract law. Reasons and expected > results follow. > (a) Contracts have a long legal history in English Common Law and an > extraordinary written record in our law books -- both statutes and > case law. > (b) Definitions for all words and principles used in contract law are > well established in law books. > (c) If we establish that all paper money is essentially a contract > between two human entities, it should be relatively easy to describe > “paper money” in legal terms and perhaps accounting terms -- because > the law is very familiar with accounting. > (d) It can be convincingly shown that barter was originally, and still > is, simply a contract between two traders. > (e) The use of gold and silver to facilitate trading could also be > shown to be a contract. > (f) The law generally and specifically prohibits the Federal or State > governments from interfering with contracts unless the contracts > violate existing laws. > (g) Consideration of the above naturally leads to a reasonable > conclusion that traders can either use paper money or gold in their > transactions as long as (a) they both agree that they understand the > terms of the contact, and agree to those terms and (b) the contract > does not violate any law > (h) Since the government may not interfere with private contracts > under our laws, the government should not pass laws that would > prohibit or mandate the use of paper money or the use of gold as > money. Both should exist unhampered by government interference. > > Action Needed: Laws should be passed that all monetary transactions > should be covered by Federal Contract laws > > Problem #5: The People of “We The People” Are Not Encouraged To Start > Banks > Discussion: Congress should encourage the establishment of banks by > common people and groups of people -- such as community organizations, > charities and such. The Constitution gives that right to the people. > (add more discussion) > > Action Needed: Congress should pass Federal Laws that will encourage > The People and their institutions to start banks. > > I invite your comments on all of the above. Help us refine our > thoughts. > > Martin R. Carbone / 5123 Don Rodolfo Drive / Carlsbad CA / 92010 > > [EMAIL PROTECTED]://www.alphabeticalist.com --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. 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