Beneficiary From Record Global Leverage
02/02/2012
http://www.zerohedge.com/news/presenting-only-beneficiary-record-global-leverage
Qui Bono
been saying this for three years, that the distinction in society is determined by those whose incomes increase with leverage, Vs those with real incomes, this is what causes the wealth inequality, which is promoted by the federal reserve. I even said it on this site two days ago with the papaer from the san fran fed on how it doesn't effect unemployment. tried to explain it to krugman so many times I can't count. this is why tax increases on this segment are deserved, because they benefit so much from this federal reserve tax payer subsidy.
Fix income inequality with $10 million loans for everyone!
Under my plan, each American household could borrow $10 million from the Fed at zero interest. The more conservative among us can take that money and buy 10-year Treasury bonds. At the current 2 percent annual interest rate, we can pocket a nice $200,000 a year to live on. The more adventuresome can buy 10-year Greek debt at 21 percent, for an annual income of $2.1 million. Or if Greece is a little too risky for you, go with Portugal, at about 12 percent, or $1.2 million dollars a year. (No sense in getting greedy.)
~ Sheila Bair, former chairman of the Federal Deposit Insurance Corp.
“Under my plan, each American household could borrow
$10 million from the Fed at zero interest.
The more conservative among us can take that
money and buy 10-year Treasury bonds.
At the current 2 percent annual interest rate,
we can pocket a nice $200,000 a year to live on.
The more adventuresome can buy 10-year Greek debt at
21 percent, for an annual income of $2.1 million.
Or if Greece is a little too risky for you,
go with Portugal, at about 12 percent, or
$1.2 million dollars a year. (No sense in getting greedy.)”;
── Sheila Bair,
former chairman of the Federal Deposit Insurance Corp.
Fix income inequality with $10 million loans for everyone!
By Sheila Bair
April 13, 2012
Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore.
For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.
So why not let everyone participate?
Under my plan, each American household could borrow $10 million from the Fed at zero interest. The more conservative among us can take that money and buy 10-year Treasury bonds. At the current 2 percent annual interest rate, we can pocket a nice $200,000 a year to live on. The more adventuresome can buy 10-year Greek debt at 21 percent, for an annual income of $2.1 million. Or if Greece is a little too risky for you, go with Portugal, at about 12 percent, or $1.2 million dollars a year. (No sense in getting greedy.)
Think of what we can do with all that money. We can pay off our underwater mortgages and replenish our retirement accounts without spending one day schlepping into the office. With a few quick keystrokes, we’ll be golden for the next 10 years.
Of course, we will have to persuade Congress to pass a law authorizing all this Fed lending, but that shouldn’t be hard. Congress is really good at spending money, so long as lawmakers don’t have to come up with a way to pay for it. Just look at the way the Democrats agreed to extend the Bush tax cuts if the Republicans agreed to cut Social Security taxes and extend unemployment benefits. Who says bipartisanship is dead?
And while that deal blew bigger holes in the deficit, my proposal won’t cost taxpayers anything because the Fed is just going to print the money. All we need is about $1,200 trillion, or $10 million for 120 million households. We will all cross our hearts and promise to pay the money back in full after 10 years so the Fed won’t lose any dough. It can hold our Portuguese debt as collateral just to make sure.
Because we will be making money in basically the same way as hedge fund managers, we should have to pay only 15 percent in taxes, just like they do. And since we will be earning money through investments, not work, we won’t have to pay Social Security taxes or Medicare premiums. That means no more money will go into these programs, but so what? No one will need them anymore, with all the cash we’ll be raking in thanks to our cheap loans from the Fed.
Come to think of it, by getting rid of work, we can eliminate a lot of government programs. For instance, who needs unemployment benefits and job retraining when everyone has joined the investor class? And forget the trade deficit. Heck, we want those foreign workers to keep providing us with goods and services.
We can stop worrying about education, too. Who needs to understand the value of pi or the history of civilization when all you have to do to make a living is order up a few trades? Let the kids stay home with us. They can play video games while we pop bonbons and watch the soaps and talk shows. The liberals will love this plan because it reduces income inequality; the conservatives will love it because it promotes family time.
I’m really excited! This is the best American financial innovation since liar loans and pick-a-payment mortgages. I can’t wait to get my super PAC started to help candidates who support this important cause. I think I will call my proposal the “Get Rid of Employment and Education Directive.”
Some may worry about inflation and long-term stability under my proposal. I say they lack faith in our country. So what if it cost 50 billion marks to mail a letter when the German central bank tried printing money to pay idle workers in 1923?
That couldn’t happen here. This is America. Why should hedge funds and big financial institutions get all the goodies?
Look out 1 percent, here we come.
Sheila Bair is a former chairman of the Federal Deposit Insurance Corp. and a regular contributor to Fortune Magazine.
SOURCE:
https://www.textise.net/showText.aspx?strURL=http://www.washingtonpost.com/opinions/fix-income-inequality-with-10-million-loans-for-everyone/2012/04/13/gIQATUQAFT_story.html
Original story
http://www.rollingstone.com/politics/blogs/taibblog/free-10-million-loans-for-all-and-other-wall-street-notes-20120419
April 19, 2012
http://www.washingtonpost.com/opinions/fix-income-inequality-with-10-million-loans-for-everyone/2012/04/13/gIQATUQAFT_story.html
Published: April 13, 2012
By Sheila Bair
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McCusker, J. J. (1992).
How much is that in real money?: a historical price index for use as a deflator of money values in the economy of the United States
source:
https://en.wikipedia.org/wiki/Rational_Software
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A most dangerous method.
John Kerr (author), 1993 nonfiction book, A Most Dangerous Method: The Story of Jung, Freud, and Sabina Spielrein.
A Dangerous Method is a 2011 historical film directed by David Cronenberg and starring Keira Knightley, Viggo Mortensen, Michael Fassbender, and Vincent Cassel.
The screenplay was adapted by writer Christopher Hampton from his 2002 stage play The Talking Cure, which was based on the 1993 non-fiction book by John Kerr, A Most Dangerous Method: The story of Jung, Freud, and Sabina Spielrein.
https://en.wikipedia.org/wiki/John_Kerr_(author)
https://en.wikipedia.org/wiki/A_Dangerous_Method
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Why talking (conversation - dialog) is a dangerous method?
Because when "you leave the safety of the world you know and enter the unknown.";
"In the Departure stage, you leave the safety of the world you know and enter the unknown.";
if you want (young or old) people to learn, you MUST provide a sense of safety;
they might want a psychological safe room, a secure home base, ....
https://scottjeffrey.com/heros-journey-steps/
____________________________________
“Anything that’s human is mentionable, and anything that is mentionable can be more manageable. When we can talk about our feelings, they become less overwhelming, less upsetting, and less scary. The people we trust with that important talk can help us know that we are not alone.”
― Fred Rogers
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In other words, when the fish companies are experiencing their greatest revenue, the fishery is most stressed. On the surface, profits are high, but below the surface (literally and metaphorically in the systems thinking iceberg) the fish population is collapsing.
source:
The necessary revolution : how individual and organizations are working together to create a sustainable world
Peter Senge,
Bryan Smith, Nina Kruschwitz, Joe Laur, Sara Schley
2008
p.172 The System-thinking Iceberg
p.173
four factors that influence any situations:
events,
patterns or trends,
deeper systemic structures or forces,
and the mental models or assumptions that shape these structures and force.
pp.174-177
p.173 events
The first level of the iceberg can be summed up in the question "What just happened?"
p.173
Immediate events are tangible, they catch our attention—much like a loud noise that suddenly causes us to drop everything and look up.
p.173
The problem is that events can so dominate our attention that we get stuck here and, as a result, miss the bigger picture entirely.
p.174
(???) When people are stuck at this level, they see only the tip of the iceberg and can do little except react as new circumstances arise. ([ this is also called, firefighting mode — essentially all you can do is to put out the fire, move from one problem to the next, from crisis to crisis. ])
p.174 patterns/trends
"What is happening over time?" Answering this question takes us a little deeper into the system, a little below the typical water surface.
p.174
But most players react to falling profits by fishing harder to maintain their revenues. If they do so, however, the fishery will collapse. (???)
p.175 systemic structures or forces
Ask, "What are the deeper forces driving these patterns or trends and how do they arise?"
p.175
In other words, when the fish companies are experiencing their greatest revenue, the fishery is most stressed. On the surface, profits are high, but below the surface (literally and metaphorically in the systems thinking iceberg) the fish population is collapsing.
p.175
So in order to avert disaster, companies must cut back their fishing at the very moment when the pressures to keep growing are greatest! (???)
p.176 mental models.
We all hold mental models——some shared across a society, others across a social class, a political party, an industry, a particular company, or even within our own family. What is often less clear is how these models affect, even dictate, our thoughts and actions and the thinking of those around us.
p.174
Ways of explaining reality
**increasing leverage and opportunity for learning
||
|| Events React
|| what just happened?
||
|| Patterns/Trends Anticipate/expectation
|| what's been happening over time?
|| have we been here or some
|| place similar before?
||
|| Systemic Structures Design/co-design/co-evolution
|| what are the deeper forces driving these
|| patterns or trends and how do they arise?
|| what are the forces at play
|| contributing to these pathways?
||
|| Mental Models Transform/re-form/re-organise/re-call
|| what about our thinking
|| allows this situation to persist?
\/
figure 12.1
p.177
Why is it so important to look beneath the surface at the deeper levels of reality? Because in our experience it is often the key to lasting change. When people or organizations pay attention only to the visible tip of the iceberg, they can only react to change as it happens—so at best, they survive the crisis. They often try to compensate for their lack of analysis of a problem with aggressive and "proactive" strategies. But being "proactive" from a reactive mind-set is reactive just the same. With long enough lever, boasted Archimedes, "I can move the world."
(The necessary revolution : how individual and organizations are working together to create a sustainable world, Peter Senge, Bryan Smith, Nina Kruschwitz, Joe Laur, Sara Schley, 2008, 338.927 Senge, pp.172-177)
p.192
Seeing the forces that arise from underlying limits also enables seeing into the future. Pierre Wack, one of the pioneers of scenario planning, used to say, "When it rains for a week in the foothills of the Himalayas, within a week the Ganges will flood." (???) This kind of specific prediction is only possible based on an understanding of the underlying system of water, limits to ground absorption, evaporation, and tributaries. Large amount of rain in the Himalayan foothills end up in the Ganges because there is nowhere else for the water to go.
(The necessary revolution : how individual and organizations are working together to create a sustainable world, Peter Senge, Bryan Smith, Nina Kruschwitz, Joe Laur, Sara Schley, 2008, 338.927 Senge)
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Charles Kindleberger's book with Robert Z. Aliber;
Manias, Panics, and Crashes: A History of Financial Crises;
1978, 1989, 1996, 2000;
published in 2005
Charles Poor "Charlie" Kindleberger (October 12, 1910 – July 7, 2003)
https://en.wikipedia.org/wiki/Charles_P._Kindleberger
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