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Whose side is the Treasury on?


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2008 Oct 15, 3:09pm   41,819 views  353 comments

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Traitor!

According to this article in the NY-Times:
http://tinyurl.com/3hzwmp

In its latest questionable tactic, the Treasury is forcing banks to take billions of taxpayer dollars and lend it out - effectively trying desperately to blow some air back into the lending bubble. They know it will ultimately lead to an unsustainable debt burden on the US taxpayer, and very likely US government default but they don't care. This can't just be stupidity or greed - it is treason.

(Mish's take on this is over here: Compelling Banks To Lend)

The actions taken by the Treasury in recent days show a pattern of putting U.S. citizens/taxpayers under a huge public debt burden, and also encourage every possible way to get them into private debt. Simultaneously, avenues that would _reduce_ private debt, or reduce risk to taxpayers are being blocked, derailed or discouraged.

Why?

Why is there a systematic policy bias towards forcing the US into default? Why is the Treasury making decisions that push generations of Americans into debt-slavery and eventual destruction of US sovereign currency?

Which team is Paulson batting for?

SP

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69   snmr   2008 Oct 16, 11:34am  

TOB :

Why do you keep dragging india in to discussions.
This blog gets hijacked by eventual race/H1b ..etc discussions when you keep doing this.
how old are you anyways ?

70   PermaRenter   2008 Oct 16, 12:21pm  

>> how old are you anyways ?

The Original Bankster must be over 40 and could be black ....

71   thenuttyneutron   2008 Oct 16, 12:38pm  

America could regain its footing if we were willing to accept the pain now and start building a real economy. This financial alchemy is wastes resources. The bailouts just make this more and more impossible.

If we can make energy cheap and drive technology, we can take the status of World Super Power back. Now we need figure out how to get kids to study engineering and science. Like most things, money is the method I would choose to motivate behaviors.

I will never see how cheap human labor could ever be cost competitive with robots on a production line. I see it ever day I work. I do not make electricity. The machinery that I watch after makes the electricity. I just work at an energy factory. The productivity of 12 well educated and trained people make enough electricity to power about 800,000 homes.

Now imagine modern factories where autonomous machinery manufactures every thing. The only people required would be highly trained people to operate/repair the equipment. The service economy that we stuck in our crack pipe could be possible if we had some industrialization. Sad fact: We can’t make large steel components for power plants. We are at the mercy of Spain, France or Japan!

With technology, we could collect massive amounts of resources for production, cheaply move the goods, and make 1 human more productive than 10,000 humans in a third world shit hole. Just imagine what cheap access to space and the ability to mine asteroids with robots could do for us.

On another note: That E8 group has the golden ratio that I talked about in the last thread. I think it is so cool that you can take small parts of math and piece them together to make complex models.

72   thenuttyneutron   2008 Oct 16, 12:39pm  

*where=were

73   thenuttyneutron   2008 Oct 16, 12:50pm  

I am going to guess that TOB is from 4th planet of the Sigma Draconis system. He has been on Earth for 36 years and has to take some kind of alien potion to keep his human appearance.

74   Malcolm   2008 Oct 16, 12:55pm  

OO Says:
October 16th, 2008 at 6:08 pm
"What I don’t get is why do people buy metals on ebay? You are going to spend a grand, and you trust the other party is going to ship you something real, or something at all?"

I did it quite a bit a few years ago and for the most part it all worked out very well. I bought my car on Ebay too. I think Ebay is a great way to buy a car because every word of the transaction is a permanent record so there is no "you didn't disclose that" "Yes I did, prove I didn't" kind of crap. I used to watch People's Court and the judge would say the same thing as you "Why would someone buy a car on Ebay?" and I used to think, the biggest complaint small claims court judges have in deciding a case is slippery testimony. When it is all carefully documented the facts are less disputable and it is only the matter at law at hand.

Gold on the other hand, well, you may be right about that although I did go off only outstanding seller ratings, but if you think about it, the negative feedbacks can't really be manipulated, and even moreso now when sellers can't leave retaliatory feedback for a buyer who pays.

Believe it or not, that 10 oz bar I told you guys about a few years ago, I believe I paid $6,400 for it, and yes I bought it on Ebay. I buy Japanese swords on Ebay, and I also once got Rolling stones tickets for half of face value. I saved $400. Ebay in general sucks, but every now and then I hit a home run on it.

75   Malcolm   2008 Oct 16, 12:58pm  

37 White, naturalized American of British decent. No trace of a British accent but some have asked if I am from Canada.

76   Malcolm   2008 Oct 16, 1:00pm  

NuttyNeutron, I totally agree with your plan to get America back on track. Maybe Obama will put you in a Department of Energy position.

77   Malcolm   2008 Oct 16, 1:04pm  

TOB is definitely over 40, no doubt.
Russian jew who immigrated, or perhaps Pakistani. Has ties to that part of the world, I don't sense that he is black.

78   thenuttyneutron   2008 Oct 16, 1:04pm  

Malcolm please don't make me barf. I plan on again giving my vote away to a third party person. Some people seem to get pissed that I "throw my vote away" but it is mine to do with what I want.

Obama and McCain both represent the 2 hands of the same corrupt people. Making the choice between the lesser of 2 evils is like asking how I want to be executed. In the end, did it matter which method was used?

79   Malcolm   2008 Oct 16, 1:09pm  

I didn't say you were going to vote for either one :)

I just said I hope Obama gives you a job. I buy into your vision, I don't understand why it is so rare in this country. Other countries can make power from tides, we have ocean on 3 friggin sides of this country and suggesting it gets you labeled a liberal. Sheesh!

80   Malcolm   2008 Oct 16, 1:11pm  

Carlin has a great reversal on the "If you don't vote don't bitch" cliche.

His reasoning was, if you vote then you got what you wanted so you can't bitch. He on the other hand, didn't vote, so therefore he can bitch because like you he didn't want to legitimize or pepetuate the scuzzy system.

81   thenuttyneutron   2008 Oct 16, 1:12pm  

I just wonder what the first smart apes that discovered fire had to deal with. Did leftist apes exist back then to prevent the smart ones from making fires out of fear for burning the forrest down?

82   thenuttyneutron   2008 Oct 16, 1:16pm  

http://www.bobbarr2008.com

I dont agree with all of it, but on the critical issues, I think he has it right.

83   Malcolm   2008 Oct 16, 1:16pm  

Maybe the leftist apes tried to teach the other apes how to make the fire. The conservative apes demanded that a piece of meat be exchanged for a burning stick.

84   Malcolm   2008 Oct 16, 1:20pm  

Nutty, I'm not sure I want to donate money and vote for a guy whose goal is "To send them a message." No offense. At least Ron Paul was in it to win it.

85   thenuttyneutron   2008 Oct 16, 1:28pm  

Define conservative ape.

If these conservative apes want to use a book to determine how I will live my life, they can stick it up their ass.

I consider myself a libertarian because I believe that I have the right to read the latest issue of Barely Legal while walking to the whore house to snort blow off a hookers ass and then screw her. This is all at a negotiated price between the hooker and me. The consequences of these actions would be my problem alone and would not be the gubermint's problem.

86   Malcolm   2008 Oct 16, 1:36pm  

The conservative apes didn't understand how the fire got there so they figured God put it there.

I label myself libertarian because I don't go running around telling other people what to do. In general I believe in markets with a realistic level of regulation but free movement of prices. I believe in property rights but recognize and want recognition of social costs. I believe government has a role in innovation, and that when it works properly it promotes an environment where people can reach their full potential.

87   thenuttyneutron   2008 Oct 16, 1:36pm  

My idea of a conservative ape would be the guy that likes the fire that the smart one created. The conservative ape would require rituals like the sacrifice of food to the flames to please an unseen divine being. If you don't do it, they beat you over the head until you give in.

Instead of accepting the fire, they have to add shit to it so they can feel comfortable in their narcissistic view of being the center of the world.

88   thenuttyneutron   2008 Oct 16, 1:37pm  

TOB,

I was just being sarcastic and trying to paint a picture that would make the "family issues" people that vote for secret sodomites cringe.

89   thenuttyneutron   2008 Oct 16, 1:54pm  

Malcolm,

I agree with your views. I have wondered about how to keep the role of government in check.

I do believe a fiat currency can work if you could keep the corruption out. The reason why gold was used for hundreds of years as a currency boils down to trust. You can't fake gold. In the end human nature makes the idea of a fiat currency based only on trust something that is almost impossible to work.

90   thenuttyneutron   2008 Oct 16, 2:03pm  

I have no use of the yellow metal. I am just pointing out why some prefer it. Something that can't be faked and can garner the support of having value does have appeal. The problem comes in when it actually prevents the economy from growing. Deflation via the smaller share of gold per person makes barrowing for investment a bad idea.

91   Lost Cause   2008 Oct 16, 2:09pm  

OT: btw- nutty + other physics people: what do you think of this guy:

bs or genius?

Isn't he also a plumber in Ohio?

92   snmr   2008 Oct 16, 3:05pm  

How does gold address the problem of hoarding.
Any financial uncertainity could cause hoarding and thus make deflation a big problem.
We can always create new money with fiat currency.
Fiat is very powerful if used correctly. If used unwisely, it could be devastating.

93   snmr   2008 Oct 16, 3:50pm  

TOB : demurrage looks like an interesting idea.

I have some doubts on its widescale implementation though.
Enforcing demurrage looks like a challenge.

94   snmr   2008 Oct 16, 3:52pm  

Fiat currency is more risky but removes some real bottlenecks present in gold backed currency.
In the end, time will tell which one is superior.

95   Peter P   2008 Oct 16, 4:11pm  

In the end, time will tell which one is superior.

It is still about strong hands versus weak hands. As I have said, humanity is a tragedy. Or, at best, a black comedy.

96   Peter P   2008 Oct 16, 4:14pm  

Which one do you prefer? Bankster politicians or military dictators?

The former group probably favors fiat currency whilst the later group prefers hard currency.

It is just like Alien v. Predator... whoever wins, we lose.

97   SP   2008 Oct 16, 5:12pm  

thenuttyneutron Says:
homepages.wmich.edu/~drichter/gossetzome.htm
Wow! I wonder how long this took to build.

If you are interested in this stuff, you should check out some of the Tibetan Buddhist and ancient Indian chalk patterns. They are two-dimensional projections of hyper-spaces.

A lot of those projections involve compound transformations - but they are expressed node-based patterns that are so simple that Tibetan kids practice drawing them for entertainment. A professor at Urbana-Champaign gave a very interesting talk about it a few years ago, but I forgot his name.

98   MST   2008 Oct 16, 11:40pm  

TOB:

Lisi is for real, and up to 10 minutes in, he's only talking about what is already known. The rest is extension of the kind of symmetries that have already yielded actual results. E8 efflorescence is a hell of a lot more likely basis for reality than the incredible crap string theorists churn out, that have yet to yield one verified prediction.

Indeed SP, the Kalachakra Mandala and the Palace of Shambala are exactly where my mind goes in recognition when I see the E8 rotations.

http://tinyurl.com/6h8nkb

Kipling on Conservative Apes Vs. Liberal Apes: Very timely!

http://tinyurl.com/5z73wk

99   MST   2008 Oct 16, 11:46pm  

A pull from the above:

In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: "If you don't work you die."

Uh-huh.

100   MST   2008 Oct 16, 11:57pm  

Pete:

As I have said, humanity is a tragedy. Or, at best, a black comedy.

It all depends on whether it ends in a funeral or a wedding!

101   FuzzyMath   2008 Oct 17, 12:01am  

"btw- nutty + other physics people: what do you think of this guy:"

the E8 theory does evoke some feelings of truth and simplicity. Although it's not my favorite.

102   HeadSet   2008 Oct 17, 1:27am  

OMG NASCAR is having financial problems

Yes, one of the "corrections" when the debt powered overheating is turned off. NASCAR drivers will have to settle for more reasonable compensation as ticket prices and sponsor fees must fall to more affordable levels. The same effect will hit overcompensated movie stars, NFL players, and other entertainers as people will no longer pay exorbitant fees for tickets, nor will sponsors continue to overpay for ads.

103   MST   2008 Oct 17, 1:41am  

Headset:

Yes, one of the “corrections” when the debt powered overheating is turned off.

Nice to know there are a few people out there who "get it." Cars, Season Tickets, $50K kitchens, Stocks... just about anything with "disposable income" written on it to be (read "borrowed money") have jumped through the roof in the last 20 years. Irrational exuberance indeed. And the number of people who think they "deserve" a Carribean Cruise and a Swiss Ski vacation every year is simply astonishing. Those used to be once-in-a-lifetime things, and, but for borrowed money, would still be.

104   justme   2008 Oct 17, 1:49am  

>>OMG NASCAR is having financial problems

I hope NASCAR goes bankrupt. Spending all that oil on going around in circles and accomplishing nothing is obscene.

105   Peter P   2008 Oct 17, 1:54am  

Well, I prefer horse-racing. More classy.

106   thenuttyneutron   2008 Oct 17, 2:05am  

I like the idea of illegal Grey Hound Street Racing.

Another good one would be St. Bernard’s racing around the NASCAR Tracks with Colobus Monkeys as jockeys.

107   justme   2008 Oct 17, 2:47am  

How 'bout some Wall St CEOs running in ciricles, literally. That would reduce the amount of mischief.

108   HeadSet   2008 Oct 17, 2:58am  

Cars, Season Tickets, $50K kitchens, Stocks… just about anything with “disposable income” written on it to be (read “borrowed money”) have jumped through the roof in the last 20 years.

Uncanny. That sounds like the script for one of those "priceless" Mastercard commercials.

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