News & Analysis
Euro Crisis to Set One World Currency?
Is Europe heading for a meltdown? ... This financial crisis is worse than the sub-prime crash of 2008 because the sums are so much bigger and it is governments that are in dire straits. Edmund Conway explains the dangers. Mervyn King, the Bank of England Governor, summed it up best: "Dealing with a banking crisis was difficult enough," he said the other week, "but at least there were public-sector balance sheets on to which the problems could be moved. Once you move into sovereign debt, there is no answer; there's no backstop." In other words, were this a computer game, the politicians would be down to their last life. Any mistake now and it really is Game Over. Or to pick a slightly more traditional game, it is rather like a session of pass-the-parcel which is fast approaching the end of the line. – UK Telegraph
Dominant Social Theme: The wise men of Brussels and the courageous citizens of the EU will muddle through.
Free-Market Analysis: As the money crisis seems to grow worse in Europe, we have begun to wonder if there are parallels to the 1907 financial panic in the United States that gave rise to the Federal Reserve. The dominant social theme way back then (assuming an active power elite, and we do) was along the lines of "The US banking system is too fragmented and a lender of last resort is badly needed." JP Morgan assembled his rich friends in the library of his exquisite New York mansion and bailed out the market, but only six years later, the Federal Reserve was born, the bastard child of false market-insolvency rumors and a knobby-nosed father (Morgan, himself).
There is, in fact, still speculation today that Morgan's camp planted the initial rumors of instability that swept the market and triggered the crash of 1907. Why on earth would he do such a thing? To generate the eventual result: the creation of the Federal Reserve and its passage by the US Congress. This is one perspective, anyway, the "paranoid one" that you will not find in most mainstream history books or college texts.
Back to our larger theme. We have written in the past (see – IMF Plotting Gold Backed SDRs) that we did not see how on earth the power elite was going to get from fairly abstract monetary concepts like SDRs to an actual worldwide consensus for a more globalized currency (and a global warming – "carbon" – currency seems, as well, to be a non-starter, at least currently). In fact, we have speculated that the elite could decide on a gradualist approach, setting up a thesis/antithesis dialectic between global money and regional money to move the conversation gradually in the direction of a worldwide currency. But perhaps there is a faster way. Let us see ...
The European financial crisis started with Greece and, it's true, Greece's problems are moderate ones for the EU given its size and amount of debt. But this crisis has not been resolved despite the supposed US$1 trillion that has been set aside to discourage "wrong way" speculation in Greek debt. We saw yesterday that the larger market was up because of statements from Chinese leaders that they were not going to sell euros and were perhaps to continue to be a net purchaser. So this is what market confidence has come to: China, a rigid, neo-communist state with a raging property inflation problem is seen by "the market" as a lynchpin of the Western capitalist system. What a hoot. You can't make this stuff up.
Anyway, from our perspective, a hypothetical path to a world currency (with some speed) would involve certain very specific elements. It would include, obviously, a very serious sovereign wealth crisis spreading from country to country thoughout at least the Southern half of Europe. This crisis, hypothetically, would be averted by heroic Brussels bureaucrats but not before a significant amount of financial pain was inflicted – good and hard as H. L. Mencken might say. It might even involve the dissolution of the euro and the shrinking of the EU itself. But the pay-off for the power elite would be the ability to float a scenario that proposes a worldwide currency to avert additional difficulties going forward. Here's some more from the article excerpted above:
Strip away the details – the breakdown of the euro, the crumbling of the Spanish banking system to take just two – and what you are left with is the next leg of a global financial crisis. Politicians temporarily "solved" the sub-prime crisis of 2007 and 2008 by nationalising billions of pounds' worth of bank debt. While this helped reinject a little confidence into markets, the real upshot was merely to transfer that debt on to public-sector balance sheets.
This kind of card-shuffle trick has a long-established pedigree: after the dotcom bust, Alan Greenspan slashed US interest rates to (then) unprecedented lows, which helped dull the pain, but only at the cost of generating the housing bubble that fed sub-prime. It is not so different to the Ponzi scheme carried out by Bernard Madoff, except that unlike his hedge fund fraud, this one is being carried out in full public view.
The problem is that this has to stop somewhere, and that gasping noise over the past couple of weeks is the sound of millions of investors realising, all at once, that the music might have stopped. Having leapt back into the market in 2009 and fuelled the biggest stock-market leap since the recovery from the Wall Street Crash in the early 1930s, investors have suddenly deserted. London's FTSE 100 has lost 15 per cent of its value in little more than a month. The mayhem on European bourses is even worse, while on Wall Street the Dow Jones teeters on the brink of the talismanic 10,000 level.
It is obvious that the sovereign crisis can inflict considerable pain. And it seems to have just begun. Yet perhaps our scenario is too simplistic, too conspiratorial. We ourselves have maintained that the problems with the EU and the euro are probably in excess of whatever the elite had expected – and they did expect a crisis of this sort, one that was supposed to drive the EU into a closer political union. The idea, however, that the power elite could engage in cold-blooded manipulations of whole countries is fairly difficult to countenance. On the other hand, there are historical speculations that JP Morgan, at the height of his wealth, controlled in some sense up to half of the profitable enterprises in the United States. Wealth can be concentrated and great wealth begets wealth, especially because the current fiat money system that tends to collapse the middle class.
Assume somehow that the unrolling sovereign crisis is indeed a prelude to a fear-based promotion seeking a worldwide currency (and perhaps some sort of worldwide central bank to go along with it) and one begins to see the outlines of an especially audacious dominant social theme. Perhaps this theme would be buttressed with other fear-based promotions – local and regional wars, even confrontations that utilize small nuclear devices.
We're just speculating here, of course, for our window on power elite activities extends only to a modest comprehension of how elite promotions might operate. Yet even in stating this, we should also point out that these themes are promoted by a vast array of institutions – media properties, think tanks, NGOs and assorted non-profits, not to mention governmental entities. To accept the idea of dominant social themes is to accept that the elite has tremendous influence worldwide and especially in the West. We're past that point of course. We do accept it.
We would also point out that to try to force the issue now of a truly global currency would be audacious in the extreme. Citizens of the Anglo-American axis are up in arms over the poor economy and Europe is smoldering as well. Never has a sociopolitical awakening swept the West as it has now – courtesy of the Internet and its continual truth-telling. There is more and more anger over central banking, the West's serial wars, the over-taxation and the general dysfunction of regulatory democracy.
Does what we have proposed skirt the fringes of reality? If the powers-that-be were ready to tolerate a protracted series of sovereign crises in Europe – and it may be there is not much more to arrange -- alongside perhaps some unsettling wars, it might be possible to traumatize citizens of the West enough to make them amenable to global solution. This solution in our estimation might include the return to some sort of gold standard, but unfortunately not a market-based one. The elite would try to insist on a standard that it could in a sense control and continually manage – at least in our opinion.
Conclusion: All this is no doubt far fetched. But the Panic of 1907 and the subsequent erection of the Federal Reserve – if one accepts the relationship between the two – provides us with a template for the same sort of manipulation on a bigger scale (assuming one believes in the possibility of JP Morgan's market manipulations). However it is also true that this article itself is evidence of the difficulties that the elite would face in implementing the kind of program we have suggested. After all, if we are able to anticipate it, it has occurred to others as well. This is perhaps the elite's biggest challenge in the era of the Internet. It is most difficult to promote an audience, if it comes to that, aware of your intentions and the permutations of your strategies.
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Posted by Christopher Reeves on 12/05/10 03:41 PM
Warning! New World Order Ahead! Draconian dictatorship under one world Government and one world currency. You have been warned!
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Posted by Seumas on 06/11/10 05:51 AM
Isn't this sovereign debt "crisis" simply a cunning method devised by the financiers to bundle all the losses they made on ridiculous and fraudulent derivatives onto the taxpayer and common man?
All this talk of unsustainable government debt is nonsense. Government debt is not like any other debt that it needs to be repaid. You simply roll it over by issuing new bonds, or manipulate your long term fiscal policy to manage it. There is no difference toady then at any time in history. The media is simply pushing this as it wants everyone to accept pay cuts and public service cuts.
Between 1920 and 1939, the UK had a debt to (GDP) ratio of around 175%. It rose even higher after the war, but then from around 1950 to the mid 1970s, it did what? It declined dramatically. And what else happened during that period? Government spending on national social welfare projects such as education and health rose massively. This is also the time of greatest advancement in standards of living than any other time in history, a time when government spent heavily upon society. Strange, no?
Austerity? What can that achieve? It will send economies back into heavy and lasting recession, and will only make the situation worse with increased welfare payments and decreased tax income. Unless of course, the governments of the developed world have agreed that it will be okay once again to see people living in cardboard boxes and starving.
Because that is the only possible outcome from the agenda that is now being pushed down our throats by the media. Decreased welfare payments Fewer public jobs A banking sector discredited and reeling from a recent crisis = Mass Poverty. Truly, this could see God forbid, many developed nations become true third world nations again with mass poverty and non existent public services. Just like Africa, Asia, South America.
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Posted by Lila Rajiva on 06/02/10 06:32 PM
Also, @ Beard.
There is not equation between debtor and savers. Savers are doing what is good for the economy, working and foregoing consumption. That is producing.
They cannot help that the FDIC guarantees bank deposits. That was put in place to protect them from runs on the bank caused by endless roll over of debt via fractional banking loans.
Debtors, on the contrary, are not producers but takers...and consumers.
Savers deserve interest because they FOREGO CONSUMPTION.
There is not equation between the two.
Savers are people who put food on the table for everyone. Consumers eat. And borrowers are eating their share and other people's too.
So your arguments are obfuscation.
Re- housing. The overall amount of capital saved in an economy is irrelevant to the question of whether EACH INDIVIDUAL has a "right" to a house.
One, there is no such right.
Two, unless he has the money to pay for it, any money he borrows and doesn't pay back makes the house belong to someone else, not him, since he hasn't paid for it.
If he was tricked or cheated, he should join forces with other victims and get the money back from the cheaters - the fraudulent mortgage originators and banks. He shouldn't be trying to pass his losses to people who not only didn't have anything to do with it, they are the true victims of the story, since it's their money everyone else is gambling with.
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Posted by Lila Rajiva on 06/02/10 05:36 PM
Creditors - in the case of banks lending money - may be government backed cartels. But the investors are simply people who bought bonds or securities as investments. They are not guilty of anything, not even of flipping, since most of them had brokers who sold it to them as sound investments.
Look, as a stock investor, I've lost money to the cartels too. But you cannot save one group by taking money from bystanders. If you can't get the money back from the crooks, then you have to live with the loss. You can't get it back from bystanders.
If the housing market hadn't collapsed, and the homeowners got all the capital gains from their inflated assets, would they have given that profit to people who couldn't afford houses because of the bubble? I bet not.
Would they offer to share their profts with people who were locked into assets that didn't rise?
I bet not.
Either you have the will and cojones to prosecute the real crooks and penalize the industry to pay for the losses or you eat them yourself, unfortunately. You don't suddenly invoke brotherly love so you can debase the currency and stiff the savers who've been footing all the bills since 1970.
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Posted by Brian Schuette on 06/01/10 02:48 PM
"However it is also true that this article itself is evidence of the difficulties that the elite would face in implementing the kind of program we have suggested. After all, if we are able to anticipate it, it has occurred to others as well. This is perhaps the elite's biggest challenge in the era of the Internet."
You may be right about that, but the current US political regime already has set it's sights on the particular problem of the internet. The internet is targeted because if you do want the truth it's out there. So if the government can back door massive restrictions on the internet by mis-representing what they really want to do, they will be able to prevent the truth from being told.
The current regime also has it out for any media that has an opposing views other than what they want put out on the mainstream medias. Wasn't it said by someone, "That if you control what the media puts out, that you control what the masses believe". This is currently happening in the US, and you did mention the "power elite." Paranoia, not necessarily, just looking at a few more puzzle pieces.
Reply from The Daily Bell
It may be happening, but not fast enough. You can turn off the Internet perhaps (we tend to doubt it), but it's a good deal harder to turn off the information that the Internet has already effectively circulated in the past 20 years.
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Posted by Boatman on 06/01/10 06:57 AM
@ f beard:
i too read pragcap, and cullen is very right about everything. he has came out and said gold is a good investment, Click to view link has done very well in this deflationary invironment, as long as it hasn't free-fell like mar 09'-october 09'..............that is changed now too, probably.
any fool can see the euro crisis is DUE to a common currency.
the world will never have one.
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Posted by Dan on 05/31/10 05:52 PM
Wiki disagrees with you;
Click to view link
Of course, banks have been around for a long time. The BRITISH banking system dates to the 17th century;
Click to view link
These 2 items weren't the point of my post.
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Posted by Dan on 05/31/10 03:57 PM
Dear Bell, your article is great, of course. I have no dispute with your perceptions. I do take issue with the beliefs of the PTB.
They expect to cause a great calamity and out of this calamity will come,,, cohesion?? They're dreaming. Crashing the world will bring cooperation??
Now ,we both know that they probably have contingency plans in case there is resistance. But, on the face of it, calamity brings a shrinking of ones loyalties and "sphere of cooperation"
I believe that the PTB are operating with an old "playbook" We all agree that the internet has brought a whole new level of awareness to the world. It doesn't end there.
If you look at the work of Professor Josephson of Cambridge, he received a Nobel Prize for his work on quantum tunneling. The follow-up work of Rupert Sheldrake proves that all members of a species are in communication by the means of quantum tunneling. His work is well spelled out in " The Hundredth Monkey" This finally brought an explanation of the phenomenon of a whole flock of birds wheeling at the same time.
So, the PTB not only have to contend with an awareness brought on by the internet, they also have to contend with a species consciousness brought about by quantum tunneling.
One sees an "automatic resistance" to many measures that the bankers are trying to force. Everyone is very aware of the lessons from Argentina and Iceland. The French will make a big splash on the world stage too.
I believe that the PTB do not appreciate just how much resistance they will engender. If / when they try to introduce a new "money", people will automatically recoil in hatred,,,, without even knowing the source of their antipathy.
Rather than inspire cooperation, the crash will cause people to look inwards. The history of the nation-state is only about 300 years old. There is still much doubt if it is viable in the long run.
The same goes for the history of the British Banking system. The "corporation" is even younger, I believe.
This calamity is capable of unwinding all of these "constructs".
A "forcing" of acceptance of a fraud currency will cause huge reductions in the farming and resource-extraction industries. These people know what their stuff is worth. They can NEVER be forced to work for a loss. They're already working for razor-thin margins.
I don't need to lay out what a major reduction in farming / resource-extraction would do to the rest of the economy.
Reply from The Daily Bell
The nation state is ancient, thousands of years old. Western banking in something resembling its current form 1,000 years old or maybe older.
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Posted by Peter Rudolph Zidek on 05/31/10 02:16 PM
Justice? Liberty?
I constantly remind myself. Why do people accept the fact that it is obvious that politicians, government, and the power elites have created the mess, then turn a 180 and ask politicians and government to fix the mess. Is this an oxymoron?? Or am I missing something here??
"Government is a disease masquerading as its own cure"....
Kenneth Royce
"you can't solve a problem with the same thinking that created the problem". Einstein
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Posted by Steve Harrison on 05/31/10 03:06 AM
They can easily cause the hyperinflation by reversing the current supression of the futures markets
Click to view link
Click to view link
The gun is loaded.
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Posted by Dave J. on 05/31/10 02:56 AM
Lindsey Williams' 3 DVDs from January 2010, , report that the 87 yr. old top elite who has been informing him accurately of their plans in advance for 35 years told him they will cause moderate inflation in the U.S. dollar in 2010, but will bring down the dollar, the U.S. and the countries of Europe in 2011-2012 by hyperinflation.
The elite told Mr. Williams they will do this to cause chaos and then bring order out of chaos by starting their New World Order and their one world currency. Apparently they have decided to leap frog over the North American Union and the Amero and go straight to the One World currency which I imagine they will call the Uno.
The elite also implied that they will start a huge war involving Iran during 2011-2012. I suppose they will use this ghastly, war which will probably include nuclear bomb exchanges to further help frighten the people of the world into accepting the NWO and the Uno. Can a chip in every person on Earth be far behind?
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Posted by Steve Harrison on 05/31/10 02:52 AM
After this period of rebalancing the purchasing power of the non-elite world i speculate they plan an SDR structured currency backed by IMF issued Carbon Credits (finite like gold but the 'science' is totally in their control). This is nothing short of an energy credit that will hand total power to the elite.
Click to view link
Problem is AGW thanks to the internet has been debunked. No doubt they will repackage this and come at us again from a different angle.
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Posted by AmanfromMars on 05/31/10 01:08 AM
"You may wish to explain how all this would work in a little more detail. Some of our readers may not understand what FLR [sic] means. Others may not understand the use of the word "backwards." "
The series of five short YouTube videos ..... "Where does money come from" .... with Part 1 being found here, Click to view link .... explains the global banking and ignorant man's pitiful, pitiless enslavement to magically conjured up artificial indebtedness scam very clearly.
Revolutions and wars have been many times started for less, and been heralded, just and right ..... "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." .... Henry Ford ...... and in past times, many a severed head on a pike less deserved of its fate in revenge and popular natural justice doled out by the mob, which is what I imagine is the crooked dealers' greatest fear with the sharing of core knowledge and greater wisdom ...... No Place to Hide from the Raw Law and Merciless Punishment of the Naked Jungle.
Reply from The Daily Bell
Thanks for the update and resources.
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Posted by F. Beard on 05/30/10 07:18 PM
""The economic adjustment process will be more difficult and prolonged than for other economies with AAA rated sovereign governments, which is why the agency has downgraded Spain's rating to AA ," it said.
"The inflexibility of the labour market and the restructuring of regional and local savings banks will... hinder the pace of adjustment, particularly in the aftermath of the real estate boom," it warned.
The European Union has been anxious to see more fragile European economies - including Spain, Portugal and Greece - impose tougher austerity measures. " from
Click to view link
Ah yes, the problem of "sticky" wages. Why should anyone take a pay cut due to a shrinkage of the money supply and/or a decline in velocity of the money when the debt on their homes does not shrink to market prices? Ah, the blessings of an "elastic" money supply! No, it is a curse instead.
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Posted by F. Beard on 05/30/10 04:04 PM
"You propose a one-time reset followed by free-banking (free-market liberty in monetary creation). " DB
Exactly. But also, I don't want what I think is the ultimate money form, common stock, to be overlooked when it is time for monetary reform.
Reply from The Daily Bell
Well, in a free-market, people would have a choice. History tells us they will choose gold and silver over common stock. But, as we have written before, it would be nice to have a choice.
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Posted by F. Beard on 05/30/10 03:51 PM
"This is a Brownian analysis and you either have read her material or come to similar solutions on your own." DB
I came to those conclusions on my own. I am just barely and just recently acquainted with MS Browns' work. However, I don't doubt we might both be standing on the shoulders of others such as Rothbard, Thoren, and others.
"Also ... to implement your plan would call for wholesale sociopolitical changes within the Western world - virtually an entire new monetary infrastructure - and you would still be using the same fiat money system that has brought so much destruction as an antidote for the same system." DB
I guess I have not made my self clear. I propose a one-time just reset using fiat to be followed by total liberty in money creation. Legal tender fiat would be abolished soon after the reset. The value of government money would backed by its taxing authority not legal tender laws.
"We find it more likely that the old structure will in sense simply collapse and that a market-based gold and silver standard might emerge out of the chaos. This is a far simpler chain of events." DB
If enough people understood how FRL has cheated them and if savers and debtors realized that they have a common enemy, the banking system, then a just reset would be possible without risking the turmoil of a great Depression.
"Alternatively, of course, the elite itself will seek to create a new money out of the disorder. We believe this is the intention, in fact." DB
Yes, that's something I wish to head off. Also, Ellen Brown's solution, though it might easily work well for a while involves further PERMANENT centralization. The reset I propose, is a one-time printing of legal tender fiat to bailout the debtors and compensate the savers.
No doubt many solutions will be offered in the times ahead. It is helpful to me to understand who is at fault and who isn't.
Reply from The Daily Bell
"Also, Ellen Brown's solution, though it might easily work well for a while involves further PERMANENT centralization. The reset I propose, is a one-time printing of legal tender fiat to bailout the debtors and compensate the savers."
Yes, this is the problem we have with her solution as well. Anyway, now it is clearer. You propose a one-time reset followed by free-banking (free-market liberty in monetary creation).
Interesting point of view. Thanks for the clarifications.
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Posted by Hugo on 05/30/10 03:48 PM
I wonder if the daily bell knows about the freegold concept? In short private physical gold competes with the fiat governments issue. I think the elites know WW3 will whipe out humanity. It will bring neo feodalism though. Click to view link holds many very interesting views/articles on this concept.
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Posted by F. Beard on 05/30/10 03:16 PM
"You may wish to explain how all this would work in a little more detail. Some of our readers may not understand what FLR means. Others may not understand the use of the word "backwards." Still others may not understand what any of this has to do with "justice" or how the mechanism you propose would compensate savers, etc."
Fractional reserve lending (FRL) is the process by which banks lend out more money than they have on deposit. In effect, the banks create money out of nothing by lending it. In other words they counterfeit money. I suggest Murray N Rothbard's "The Mystery of Banking" available in a nice hardbound 2nd edition from Click to view link for a detailed explanation. It is also available as a free pdf download from Click to view link.
Since the banking system can create and lend out many times more money than they have as deposits, they effectively suppress the interest rates they need to pay savers for those deposits. Who needs savers' money to lend out when the banks can simply create their own (temporary) money and lend it out? Traditionally, the banking system has created 10-12 times the amount of money on deposit. In the last boom, the ratio was much higher, around 30 times the money on deposit. So FRL cheats savers of honest interest rates.
With that same money-from-thin-air as Rothbard called it, housing prices and the stock market were driven higher just as counterfeiting on a large scale would do. However it is much more unjust than that with banks. The banks LEND out their counterfeit money. As the money is repaid it goes out of existence but leaves behind debt that must be repaid at boom prices. Thus borrowers are cheated too. They end up owning homes that are worth less than the debt owned on them because a shrinking money supply normally causes prices to go down just as an expanding money supply normally causes prices to go up.
So, both savers and borrowers are cheated by fractional reserve lending. As for running FRL backwards, it is mostly an intellectual exercise to determine how to justly bailout debtors and compensate savers. Basically, debt-free money would be given to underwater homeowners to pay down their debts to market prices. Rather than let that new money end up as banker's Equity, the banks would be forced to distribute that new money to all bank accounts on a pro-rata basis thus compensating savers.
Reply from The Daily Bell
Great explanation - and a revealing one. Our previous comment stands (long ago.) This is a Brownian analysis and you either have read her material or come to similar solutions on your own. Also ... to implement your plan would call for wholesale sociopolitical changes within the Western world - virtually an entire new monetary infrastructure - and you would still be using the same fiat money system that has brought so much destruction as an antidote for the same system.
We find it more likely that the old structure will in sense simply collapse and that a market-based gold and silver standard might emerge out of the chaos. This is a far simpler chain of events. Alternatively, of course, the elite itself will seek to create a new money out of the disorder. We believe this is the intention, in fact.
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Posted by F. Beard on 05/30/10 02:03 PM
"I am simply trying to find the most painless reform of fiat currency for now. Hoarders you call the gold bugs, well at what point was a currency in the Malthus/Keynes system worthy of "saving"?
It was NEVER intended to be saved, but used as a medium of exchange. Stores of wealth have always been pm's, land and assetts, not fiat paper currency. If you are looking for justice for fiat savers, well they have their "just"ice rewards for not bothering to understand the diffences of money and currency. " Hamurobbby
I see you are a Joni Mitchell ("just"ice) fan :)
Yes you make good points, fiat is not a store of wealth. However, there are some who'd welcome deflation to gain back the purchasing power in fiat they lost during the boom even at the risk of jeopardizing peace. However if the looting mechanism called FRL was run BACKWARDS, it would compensate savers so I don't dispute the justice of their claims, just the method by which they seek to be compensated (deflation).
Reply from The Daily Bell
"However if the looting mechanism called FRL was run BACKWARDS, it would compensate savers so I don't dispute the justice of their claims, just the method by which they seek to be compensated."
You may wish to explain how all this would work in a little more detail. Some of our readers may not understand what FLR means. Others may not understand the use of the word "backwards." Still others may not understand what any of this has to do with "justice" or how the mechanism you propose would compensate savers, etc. Just a thought. Your arguments might be better understood if they were more clearly expressed.
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Posted by F. Beard on 05/30/10 01:52 PM
"F.Beard - please educate yourself and read about Cantillon effects. Your collectivist solutions of "averaged out payments" betray your absolute lack of respect for any form of justice." B. Feared
A very harsh charge. While some have concentrated on bailing out the debtors I have proposed compensating the savers too though in some cases they are just vultures longing for a deflationary depression so they can buy assets on the cheap. Running fractional reserve lending BACKWARDS, as I have sometimes proposed is not only just, it is elegant too and bails out the underwater home owners, bails out the banks in nominal terms, and compensates savers too.
"Also, please keep in mind that logorrhea is not a substitute for logical arguments. " B. Feared
I'm as logical as anyone here, I'd hazard. My career for many years was computer simulations. I had to use quite a bit of Boolean logic toward that purpose. Perhaps I confuse you with the various alternatives I've offered.
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