There is only one thing wrong with the world.
Just one little thing, and it is slowly eating us from the inside.
If you truly want to understand the Monster that we face... The Demon from the deep, then open your mind to me, and we shall begin.
You MUST open your mind.
A corporation's number one priority is to its shareholders.
This is an economic principle, of supply and demand.
Any investor will only invest in a company that they believe will increase the value of their stock over time.
An investment typically has to pay more, than the original investment.
And this is a corporation's primary goal.
(This is going to get REAL complicated, but I will break it down for you)
A share of a company, is a percentage of ownership, so, to increase the Value of a stock, you must increase the value of the Company or Corporation.
Now, besides public relations, and the manipulation of the perception of the value of the corporation, there is only one way to increase the value of a corporation.
And that, is for the company to grow.
More assets.
More customers.
More revenue, and profits.
So, the basic premise of a corporation is a Legal, and financial entity whose growth is Mandated to be indefinite, and infinite.
Growing larger and larger quarter after quarter, year after year.
This is the LEGAL mandate of a corporation, that it will grow like cancer FOREVER.
This is sort of a problem when we have not one, but MANY corporations competing for resources on a (By Definition) Limited Planet.
So, eventually, when increasing resources, and customers, and assets becomes too dificult, other options become nessecary.
Options like changing the laws of the Host nation.
Options like mandating your product or services.
Options like cutting expenses, at the Expense of the host nation, and its peoples.
This raises revenues, for the investors, but by very definition, in a limited resource environment of the surface of a single ball of rock orbiting a main sequence star, this growth cannot continue indefinitely.
The less money that the corporation has to expend, the higher its profits, and the more money it keeps.
The more money a corporation keeps, the less money it's host nations have to continue their economy.
Think of it like an Engine block.
Where all of the resources in circulation represent the Oil (Lubricant) in the Engine.
There needs to be a certain amount of oil in the engine, to keep the engine going.
As corporations take more and more from the economy, less is available to keep the economy going (paying workers, who then can purchase from the corperation, or pay taxes to fund the corporation whose product has been mandated by law)
Thus, the corporations own profit motivated paradigm, is eventually, its own undoing.
As the currency of a nation is only as valuable as what you can purchase with it.
And when people have NO money (Because the corporations have ALL money) there IS no economy, and thus, there is no one to accept money for goods, or services.
You see, extreme profit inherently undermines the very value of a currency of a nation (Or planet)
Do you see what your problem is?
Do you see why your laws have Facilitated, and in fact NESSECITATED the quadrillion dollar derivitives market that technically speaking, is valued at more than EVERYTHING on the planet?
There is more currency that denotes wealth in circulation than the value of EVERYTHING on the planet earth.
You see, you passed the point of no return some time ago.
You are in the fall now.
Your entire society (Globally, maybe if things go badly) is in a state of pre-Collapse.
You are looking at the complete destruction of the world economy, and by extension, the destruction of Global Civilization.
There is nothing more to own.
So, to keep your mandated LAWS for shareholder profit, wealth had to be CREATED out of thin air.
And it WAS.
But it is not REAL wealth, it is fake wealth.
Your civilization is like wil-e-cyote, after running off the cliff, and right before gravity grabs him, and slams him back to earth.
You cannot stop the Downfall of this economic system, and the society that is latched onto it.
The best you can do, is start creating another world society, and economic system to rise up and take its place after it falls.
You can call me Raven Seldon if you wish... but you will never find Terminus.
GoodBye, Trantor.
-Redshift the Rave Rabbit
Tuesday, March 31, 2009
In favor of Legalization of Marijuana OR An Evil Corporate Rebuttal.
WE all know the REAL reason why Marijuana is illegal, and that is the profit margin of a variety of corporations that make money off of products that compete with marijuana.
For example:
The logging and paper mill industries that use lumber instead of hemp to make their products.
The Textile manufacturers that favor Petrochemical and Cotton for their clothings.
The Oil manufacturers that favor Petroleum instead of Hemp based Vegetable oils.
The Plastic Manufacturers that Favor Petroleum instead of Hemp based Vegetable oils for making their Plastics.
The Pharmaceutical manufacturers that favor petroleum based chemical compounds instead of natural remedies.
The Alchohal and Tobacco lobbyists that see marijuana as potential competition for their products.
These corporate interests are the driving force behind the continued war on drugs.
And to these people, I have only one thing to say...
What the hell is wrong with you?
Do you not understand simple economics?
All of these industries... ALL of them could make a KILLING off of hemp.
ALL of them.
Just for the purpose of expediency, Im going to go through the list, and explain why EACH industry would be greatly BENEFITED by the legalization of Marijuana, instead of continuing to spend MILLIONS and BILLIONS in keeping it illegal.
1. The Logging, and paper industries.
Ok, if you bought farmland, or just bought hemp from farmers, not only would you have a safer product, that would keep your customers happy, but you would get the environmentalists off your back, and save you lobbying fees on a yearly basis.
The usage of hemp for traditional wood based products could potentially save you MILLIONS in Forest land acquisition costs, and with the rate that hemp grows, you could do far more business off of a smaller land base.
Therefore, the paper, and logging industry would save MILLIONS by diversifying to hemp based products.
2. Textile Manufacturers.
Since livestock require a greater amount of arable land than a like amount of vegetable matter (Hemp) the diversification into the realms of hemp based clothing (for purely hemp based, or composite hemp clothing) could not only save you millions of dollars in farm costs, but the aggregate output of textiles could be sharply increased due to the quick growth cycle of Hemp plants, when compared to the relative small amount of material you get from a herd of sheep.
Not to mention, that you could use hemp based feed FOR your sheep, and the additive protein content in hemp seed would provide a low cost way to increase the growth of sheep wool (Hair is Protein, dumb ass)
In addition, instead of using petroleum based plastics for polyester blends, you could instead use hemp oil based polyester for your clothing.
3. Oil Producers.
YOU are running out of oil.
YOU are causing destructive wars to secure the last remaining vestiges of the only resource that you can sell.
Instead, you could invest your money in creating Hemp farm across the Midwest as far as the eye can see.
And use these farms to create hemp based fuels, and lubricants for various purposes.
And since these hemp oils are completely organic, and similar to petroleum based oils, you could sell the hemp oil derivatives to your various "Daughter" industries in order to manufacture plastics, medicines, precision machine oils, etc...
Not to mention the amount of money you would save, not having to lobby congress, or harass environmental rights groups, destroy natural habitats, and environmental cleanup for oil spills.
4. Plastic Manufacturers.
If you made plastics with Biodegradable hemp stock, not only would you have a more environmentally friendly material, but you would be putting money into the pocets of the farmers that you buy the hemp from, instead of oil interests.
And with money in the pockets of farmers, they would buy things that our economy provides, thus strengthening our economy.
You would not have to worry about lawsuits against plastics that leech chemicals into water, because hemp is environmentally friendly, and completely biodegradable.
5. Pharmaceutical Industry.
You are afraid of losing your monopoly on pharmaceutical if hemp were to be legalized.
You do realize that raw marijuana is only good for a certain number of ailments, don't you?
You do realize that hemp based oils are a MUCH better base to manufacture your chemical medicines that the poison of petroleum, don't you?
You realize that in order to make these hemp based pharmaceuticals, we will still need extremely advanced scientific methods to alter the molecular structure of the plant for specific purposes, right?
You do realize that having a All Natural, biodegradable, environmentally friendly "Base" for your products, will help you out in the long run, right?
6. Alchohal and Tobacco manufacturers.
Come on guys... you can diversify.
Marlboro Greens?
Buzz Beer?
Jesus.. I mean, the possibilities of your companies making EVEN MORE money off of the addition of hemp to your portfolio is almost limitless.
Just imagine, a New flavor of Budweiser, made in all hemp plastic bottles, fermented with a touch of the finest Green, and choice hops and barley, Miller High Life anyone?
Just imagine an all new line from R.J. Reynolds...
Tobaccoweed...
90% marijuana, 10% tobacco... for that smooth, cool high.
I mean... you people think so 3 dimensionally.
You need to get your head OUTSIDE the fucking BOX.
I can't believe that I have to say these things dammit!
I thought you Capitan's of industry were SMART to make all of that money... but it appears that you know nothing other than Inertia.
Think about it, and stop fucking with our lives.
-Redshift the Rave Rabbit
For example:
The logging and paper mill industries that use lumber instead of hemp to make their products.
The Textile manufacturers that favor Petrochemical and Cotton for their clothings.
The Oil manufacturers that favor Petroleum instead of Hemp based Vegetable oils.
The Plastic Manufacturers that Favor Petroleum instead of Hemp based Vegetable oils for making their Plastics.
The Pharmaceutical manufacturers that favor petroleum based chemical compounds instead of natural remedies.
The Alchohal and Tobacco lobbyists that see marijuana as potential competition for their products.
These corporate interests are the driving force behind the continued war on drugs.
And to these people, I have only one thing to say...
What the hell is wrong with you?
Do you not understand simple economics?
All of these industries... ALL of them could make a KILLING off of hemp.
ALL of them.
Just for the purpose of expediency, Im going to go through the list, and explain why EACH industry would be greatly BENEFITED by the legalization of Marijuana, instead of continuing to spend MILLIONS and BILLIONS in keeping it illegal.
1. The Logging, and paper industries.
Ok, if you bought farmland, or just bought hemp from farmers, not only would you have a safer product, that would keep your customers happy, but you would get the environmentalists off your back, and save you lobbying fees on a yearly basis.
The usage of hemp for traditional wood based products could potentially save you MILLIONS in Forest land acquisition costs, and with the rate that hemp grows, you could do far more business off of a smaller land base.
Therefore, the paper, and logging industry would save MILLIONS by diversifying to hemp based products.
2. Textile Manufacturers.
Since livestock require a greater amount of arable land than a like amount of vegetable matter (Hemp) the diversification into the realms of hemp based clothing (for purely hemp based, or composite hemp clothing) could not only save you millions of dollars in farm costs, but the aggregate output of textiles could be sharply increased due to the quick growth cycle of Hemp plants, when compared to the relative small amount of material you get from a herd of sheep.
Not to mention, that you could use hemp based feed FOR your sheep, and the additive protein content in hemp seed would provide a low cost way to increase the growth of sheep wool (Hair is Protein, dumb ass)
In addition, instead of using petroleum based plastics for polyester blends, you could instead use hemp oil based polyester for your clothing.
3. Oil Producers.
YOU are running out of oil.
YOU are causing destructive wars to secure the last remaining vestiges of the only resource that you can sell.
Instead, you could invest your money in creating Hemp farm across the Midwest as far as the eye can see.
And use these farms to create hemp based fuels, and lubricants for various purposes.
And since these hemp oils are completely organic, and similar to petroleum based oils, you could sell the hemp oil derivatives to your various "Daughter" industries in order to manufacture plastics, medicines, precision machine oils, etc...
Not to mention the amount of money you would save, not having to lobby congress, or harass environmental rights groups, destroy natural habitats, and environmental cleanup for oil spills.
4. Plastic Manufacturers.
If you made plastics with Biodegradable hemp stock, not only would you have a more environmentally friendly material, but you would be putting money into the pocets of the farmers that you buy the hemp from, instead of oil interests.
And with money in the pockets of farmers, they would buy things that our economy provides, thus strengthening our economy.
You would not have to worry about lawsuits against plastics that leech chemicals into water, because hemp is environmentally friendly, and completely biodegradable.
5. Pharmaceutical Industry.
You are afraid of losing your monopoly on pharmaceutical if hemp were to be legalized.
You do realize that raw marijuana is only good for a certain number of ailments, don't you?
You do realize that hemp based oils are a MUCH better base to manufacture your chemical medicines that the poison of petroleum, don't you?
You realize that in order to make these hemp based pharmaceuticals, we will still need extremely advanced scientific methods to alter the molecular structure of the plant for specific purposes, right?
You do realize that having a All Natural, biodegradable, environmentally friendly "Base" for your products, will help you out in the long run, right?
6. Alchohal and Tobacco manufacturers.
Come on guys... you can diversify.
Marlboro Greens?
Buzz Beer?
Jesus.. I mean, the possibilities of your companies making EVEN MORE money off of the addition of hemp to your portfolio is almost limitless.
Just imagine, a New flavor of Budweiser, made in all hemp plastic bottles, fermented with a touch of the finest Green, and choice hops and barley, Miller High Life anyone?
Just imagine an all new line from R.J. Reynolds...
Tobaccoweed...
90% marijuana, 10% tobacco... for that smooth, cool high.
I mean... you people think so 3 dimensionally.
You need to get your head OUTSIDE the fucking BOX.
I can't believe that I have to say these things dammit!
I thought you Capitan's of industry were SMART to make all of that money... but it appears that you know nothing other than Inertia.
Think about it, and stop fucking with our lives.
-Redshift the Rave Rabbit
Sunday, March 29, 2009
Obama's Marijuana Policy OR Mexican Drug Wars.
Recently, Obama placed a challenge to the American people, to write in with questions over at the white house website, regarding policy, and the economy.
He promised to answer the most voted for question, and that he did.
The question was regarding the Legalization of Marijuana, and its beneficial effects on the economy.
Mr. Obama's Response was extremely telling of his ties to one of two groups:
1. Really Stupid brainwashed Fundamentalists.
OR
2. A secret cabal that makes money off of the illegal importation of Drugs into the USA.
And the sad thing is, I can refute his entire statement on The united states drug policy with 3 words.
Amsterdam Drug Cartels.
There ya go... thats my entire rebuttal.
What's that?
You have never heard of an Amsterdam Drug cartel?
Yeah... that is the entire point, There Aren't Any.
You see... what Mr Obama has failed to either realize, or make public that he has knowledge of... is that legalizing Drugs would be of SUCH fundamental benefit to the Economy, that overlooking it is either an act of Incompitance, Ignorance, or Complete willful Conspiracy.
And that is the entire list.
Lets start with HOW legalizing Drugs WILL help the economy, and THEN we will dissect Obama's telling response.
1. $48,000,000,000 (Billion dollars will be spent this year on the National War on drugs)
(Source: http://www.whitehousedrugpolicy.gov/publications/policy/09budget/index.html)
2. $6,000,000,000 (Billion per year to keep Drug offenders behind bars)
(Source: American Correctional Association, 2006 figures)
3. $30,000,000,000 (Billion per year fighting the Opium Warlords in Afghanistan)
(Source: DoD Budget)
4. $14,000,000,000 (Billions per year gained from cigarette taxes, that could be applied to all other drugs)
Ok, lets just stop there...
And tally that shit up.
$98,000,000,000
Do you see the size of that number?
98 BILLION!
And Mr. Obama says that legalizing drugs would not have any effect on the economy.
So, you can see, that he is either a complete Moron...
Or, he is Complicit in the illegal profit off of the war on drugs.
And this blog should not be misconstrued as opinion... this is all FACT.
Solid Scientific Documented Evidence.
Objective Assessment.
Observational Actualization.
Legalizing Drugs will Help the Economy.
Period.
How do the Mexican Drug Lords make all of their money to buy their guns?
The Drug Trade.
If these drugs were legal, could those drug cartels compete with your corner drug store?
NO.
But it is not like any of this even matters... The US Federal government has no authority to regulate Drugs anyways.
The Tenth Amendment to the Constitution clearly states:
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
Meaning, that any power that is *Not* SPECIFICALLY given to the Federal Government *by* the constitution, is not in the Jurisdiction of the Federal Government.
It does not matter if US Code states that Drugs are illegal.
The Constitution does not grant the Federal Government the power to regulate Narcotics, and therefore, the Federal Government is overstepping their Constitutionally mandated bounds in enforcing Narcotics.
The Drug War is Very Literally, A CRIME.
-Redshift the Rave Rabbit
He promised to answer the most voted for question, and that he did.
The question was regarding the Legalization of Marijuana, and its beneficial effects on the economy.
Mr. Obama's Response was extremely telling of his ties to one of two groups:
1. Really Stupid brainwashed Fundamentalists.
OR
2. A secret cabal that makes money off of the illegal importation of Drugs into the USA.
And the sad thing is, I can refute his entire statement on The united states drug policy with 3 words.
Amsterdam Drug Cartels.
There ya go... thats my entire rebuttal.
What's that?
You have never heard of an Amsterdam Drug cartel?
Yeah... that is the entire point, There Aren't Any.
You see... what Mr Obama has failed to either realize, or make public that he has knowledge of... is that legalizing Drugs would be of SUCH fundamental benefit to the Economy, that overlooking it is either an act of Incompitance, Ignorance, or Complete willful Conspiracy.
And that is the entire list.
Lets start with HOW legalizing Drugs WILL help the economy, and THEN we will dissect Obama's telling response.
1. $48,000,000,000 (Billion dollars will be spent this year on the National War on drugs)
(Source: http://www.whitehousedrugpolicy.gov/publications/policy/09budget/index.html)
2. $6,000,000,000 (Billion per year to keep Drug offenders behind bars)
(Source: American Correctional Association, 2006 figures)
3. $30,000,000,000 (Billion per year fighting the Opium Warlords in Afghanistan)
(Source: DoD Budget)
4. $14,000,000,000 (Billions per year gained from cigarette taxes, that could be applied to all other drugs)
Ok, lets just stop there...
And tally that shit up.
$98,000,000,000
Do you see the size of that number?
98 BILLION!
And Mr. Obama says that legalizing drugs would not have any effect on the economy.
So, you can see, that he is either a complete Moron...
Or, he is Complicit in the illegal profit off of the war on drugs.
And this blog should not be misconstrued as opinion... this is all FACT.
Solid Scientific Documented Evidence.
Objective Assessment.
Observational Actualization.
Legalizing Drugs will Help the Economy.
Period.
How do the Mexican Drug Lords make all of their money to buy their guns?
The Drug Trade.
If these drugs were legal, could those drug cartels compete with your corner drug store?
NO.
But it is not like any of this even matters... The US Federal government has no authority to regulate Drugs anyways.
The Tenth Amendment to the Constitution clearly states:
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
Meaning, that any power that is *Not* SPECIFICALLY given to the Federal Government *by* the constitution, is not in the Jurisdiction of the Federal Government.
It does not matter if US Code states that Drugs are illegal.
The Constitution does not grant the Federal Government the power to regulate Narcotics, and therefore, the Federal Government is overstepping their Constitutionally mandated bounds in enforcing Narcotics.
The Drug War is Very Literally, A CRIME.
-Redshift the Rave Rabbit
Special Drawing Rights, Part 2 (Pun intended) OR Do we Really Need the IMF's Permission?
I propose a new currency for International Trade (Only) to be used exclusively between participating nations.
It will be a Governmentally sponsored currency, and thus, free from the sway of Private interests.
It will be set up similarly to the Special Drawing rights of the IMF, but will not be Controlled by the IMF, or its member nations, and will exist Parallel yet separate from the XDR.
Only participating countries will need to contribute to the new NCDR (Non Connected Drawing Right), and thus, only Participating countries will accept them for payment.
The Plan:
Each participating Currency will need to ranked, along with all other currencies by "Weight" or value relative to all the other currencies, by an economic tribunal of participating international governments (currencies)
And its measure will be dependant upon its relative value.
For a country to begin using the NCDR, it will have to purchase for reserve (to hold in its own banks) a proportionate amount of currencies to contribute to the backing of the new NCDR.
For example:
The current basket contains the currencies of 5 countries:
Euro
Yuan
Yen
Ruble
Rial
These currencies compose the Value of the NCDR according to their relative value (with each country contributing 20% of the total value of the NCDR)
So... if the NCDR is worth, 1 USD per NCDR, then each country will contribute:
Euro: 0.15
Yuan: 1.36
Yen: 19.60
Ruble: 6.75
Riyal: 0.75
Per NCDR
Which would add up to approx 1 dollar US. (you could base it on anything you want really, the value of gold, the price of tea... it don't matter.)
If a new country wanted to join the league of NCDR, it would have to purchase (Or Trade) for reserve, currencies from each country in proportion to this formula, and all participating countries would have to add the new nations currencies to their own stockpile in proportion to how many NCDR's they would want to hold.
Thusly, the NCDR would only be accepted by all participating countries, and each new country that joined this league would boost the international holdings of not only its OWN currency, but also, the NCDR member countries as well.
The more countries that participate in this exchange, the more stable the currency IS, because it is backed by the purchasing power parity of the whole basket of currencies.
As one gains, or decreases in value, its proportional representation in the NCDR is added, or subtracted in proportion to the fluctuation of its value.
So, if a new country wants to join, lets say... India, the league would convene, and revalue their currency to reflect each nations participation at a Sixth instead of a fifth...
Euro: 0.12
Yuan: 1.13
Yen: 16.27
Ruble: 5.60
Riyal: 0.62
Rupee: 8.38
So, for India to have 100,000,000 NCDR it would have to purchase and keep in reserve:
Euro: 12,000,000
Yuan: 113,000,000
Yen: 1,627,000,000
Ruble: 560,000,000
Riyal: 62,000,000
Rupee: 838,000,000
Each other currency would then be less represented in the NCDR (and thus, the nations could sell off their excess reserve currencies (Maybe to India as they bought in), or purchase more of the other currencies to have a greater reserve of NCDR's)
And each other country would be required to purchase (or trade with the new country) India's currency to have equal stake in the NCDR.
(You could probably arrange a currency trade in contrast to the lowered position of the other currencies)
Obviously, there would have to be a minimum buy in for this league of new currency, dependent upon how much trade they do with member nations, and other such factors.
Obviously, the addition of any new currency will be done at at the very least, a quarterly time frame, with full participation from each new nation.
But each nation that begins to participate in this new League would have its economy strengthened, by the overall stability of ALL of the currencies that participate.
I think this would be overall better than a gold standard.
The currencies would be ranked quarterly, for overall value (purchasing power) and the percentage of each currency representing in the new NCDR would be adjusted accordingly.
-Redshift the Rave Rabbit
It will be a Governmentally sponsored currency, and thus, free from the sway of Private interests.
It will be set up similarly to the Special Drawing rights of the IMF, but will not be Controlled by the IMF, or its member nations, and will exist Parallel yet separate from the XDR.
Only participating countries will need to contribute to the new NCDR (Non Connected Drawing Right), and thus, only Participating countries will accept them for payment.
The Plan:
Each participating Currency will need to ranked, along with all other currencies by "Weight" or value relative to all the other currencies, by an economic tribunal of participating international governments (currencies)
And its measure will be dependant upon its relative value.
For a country to begin using the NCDR, it will have to purchase for reserve (to hold in its own banks) a proportionate amount of currencies to contribute to the backing of the new NCDR.
For example:
The current basket contains the currencies of 5 countries:
Euro
Yuan
Yen
Ruble
Rial
These currencies compose the Value of the NCDR according to their relative value (with each country contributing 20% of the total value of the NCDR)
So... if the NCDR is worth, 1 USD per NCDR, then each country will contribute:
Euro: 0.15
Yuan: 1.36
Yen: 19.60
Ruble: 6.75
Riyal: 0.75
Per NCDR
Which would add up to approx 1 dollar US. (you could base it on anything you want really, the value of gold, the price of tea... it don't matter.)
If a new country wanted to join the league of NCDR, it would have to purchase (Or Trade) for reserve, currencies from each country in proportion to this formula, and all participating countries would have to add the new nations currencies to their own stockpile in proportion to how many NCDR's they would want to hold.
Thusly, the NCDR would only be accepted by all participating countries, and each new country that joined this league would boost the international holdings of not only its OWN currency, but also, the NCDR member countries as well.
The more countries that participate in this exchange, the more stable the currency IS, because it is backed by the purchasing power parity of the whole basket of currencies.
As one gains, or decreases in value, its proportional representation in the NCDR is added, or subtracted in proportion to the fluctuation of its value.
So, if a new country wants to join, lets say... India, the league would convene, and revalue their currency to reflect each nations participation at a Sixth instead of a fifth...
Euro: 0.12
Yuan: 1.13
Yen: 16.27
Ruble: 5.60
Riyal: 0.62
Rupee: 8.38
So, for India to have 100,000,000 NCDR it would have to purchase and keep in reserve:
Euro: 12,000,000
Yuan: 113,000,000
Yen: 1,627,000,000
Ruble: 560,000,000
Riyal: 62,000,000
Rupee: 838,000,000
Each other currency would then be less represented in the NCDR (and thus, the nations could sell off their excess reserve currencies (Maybe to India as they bought in), or purchase more of the other currencies to have a greater reserve of NCDR's)
And each other country would be required to purchase (or trade with the new country) India's currency to have equal stake in the NCDR.
(You could probably arrange a currency trade in contrast to the lowered position of the other currencies)
Obviously, there would have to be a minimum buy in for this league of new currency, dependent upon how much trade they do with member nations, and other such factors.
Obviously, the addition of any new currency will be done at at the very least, a quarterly time frame, with full participation from each new nation.
But each nation that begins to participate in this new League would have its economy strengthened, by the overall stability of ALL of the currencies that participate.
I think this would be overall better than a gold standard.
The currencies would be ranked quarterly, for overall value (purchasing power) and the percentage of each currency representing in the new NCDR would be adjusted accordingly.
-Redshift the Rave Rabbit
Tuesday, March 24, 2009
Mid March Market Rally, OR Voodoo Economic Resurrection.
The economic turmoil of late 2008 to early 2009 has created much unrest in our world.
Destabilizing Global trade, economic stability, and Investment inputs into industries.
Ever since the Dow's Great plunge of Late September 2008, the markets have been wildly fluctuating, Politicians have been scrambling to stem the unrelenting collapse of the global economic system known as the "Breton Woods"
The Bretton woods agreement was created after the LAST great market crash in order to maintain and ensure market stability.
It effectively pegged the value of the US-Dollar to the Value of gold, at $35 to one troy ounce.
The agreement ALSO pushed and insured the Dollars place as the World reserve currency.
Unfortunately for our currant situation, the Staple of the Breton woods (The fixed value of the dollar relative to gold) was revoked in the early Nixon administration when he removed this direct value correlation.
And our current economic problem, on a global scale, is the fallout of that decision, compounded by actions taken from outdated, and non applicable financial theories.
The first bailout in late 2008 was based on the economic models of John Maynard Keynes... and Involved the introduction of new money into circulation.
The theory of this "Stimulus" is the direct remedy to the *Apparent* problem.
And that Apparent problem, is a lack of consumer confidence.
When people have less confidence in the market, they save instead of spending.
When the people spend less, the companies they normally buy goods and services from MAKE less money.
If these companies make less money, they cannot afford as many employees, and thus, they begin downsizing and laying off their workforce.
And this is when the spiral begins.
For when large amounts of people are laid off, they spend overall less money back into the economy (because they have no money)
Thus, companies make less, they hire less, people have less money and spend less.
The stimulus theory, is that if the government injects a large amount of capitol (money) into the economy (by buying LOTS of stuff) that money will encourage increased spending, and increased hiring.
And on paper, the theory is absolutely beautiful.
There is, however... only one problem with this approach.
The problem with the economy is NOT a loss of confidence.
The loss of confidence in the US economy is a BYPRODUCT of the Acuall problem.
That, of currency inflation.
Since the value of the dollar is not fixed, it is basically a free floating ammount.
That amount is based off of two factors.
1. Total economic output of the Nation (GDP)
AND
2. Perceived Value (Demand . Investor confidence)
So, the total value of the Nation (determined through the looking glass of demand for the dollar) is the basis for the VALUE of the dollar.
And since the value of a currency is based primarily off of what you can buy with it...
You probly already see the problem, don't you?
Ok, follow me around the park for a bit.
In 1993, the North American Free Trade Agreement was passed.
This little bit of legislation removed protective tariffs from imported goods (or reduced them) and simultaneously applied penalties to domestic manufacturing companies for pollution and environmental damage.
This made manufacturing inside the USA more costly than anywhere else.
And made business in other countries (where these same standards were lacking, and labor cost significantly less) much more economically appealing to all manufacturers.
Thusly, many manufacturing companies were off-shored to other companies.
So, with a reduction in Gross domestic production, you have a reduction in the amount of goods that you can purchase with the US dollar.
And thus, you have a reduction in the overall VALUE of the dollar.
So, with the REAL value of the dollar (based on purchasing power) undermined, and a overall reduction in employment in the US (undermining domestic spending, and thus, domestic employment) You create a situation where the only thing keeping the value of the dollar at levels that still have purchasing power, is investor confidence in the dollar as a safe haven for wealth.
This is not necessarily a PROBLEM, unless you begin DELIBERATELY undermining the value of the dollar on PURPOSE.
And one surefire way to do this, is to start making MORE of it.
By the Billions, and Trillions.
You see, the value of the individual dollar is a set percentage of a sum total of goods/services that are available in the united states.
And, as the total amount of dollars in circulation increases, you devalue each individual dollar by a proportional amount of how much more (percentile) that you have added to the total money supply.
This also would not be that bad of a situation, if (AND ONLY IF) Domestic wages kept up with inflation.
Which they did not.
So, as the value of each individual dollar decreased by a large amount, people in the US were still making the same numeric amount of dollars.
Thus, overall what they could purchase was diminished, and since they could not buy as much, companies could not afford to hire as much, and people got less money, etc, etc, etc...
So, while it may seem that the market bottomed out around March 10th (2009) and is beginning to resuscitate...
What you are ACTUALLY seeing, is a temporary increase in spending (and associated increase in confidence based investment) fueled by the Infusion of new money into the economy.
Which is precisely what the legislators wanted.
The only problem, is that this infusion of CASH into the system is merely agitating the original condition that CAUSED the economic crash.
That, of Currency Inflation.
So, my prediction:
The market will rally up to maybe (8500DJIA) and then, as the currency circulates into the economy, and business begin readjusting their prices to accommodate the decreased value of the dollar (based on inflation) the market will resume its downward plunge.
There are already talks in Washington of Another spending bill.
A bill designed to alleviate "Toxic" assets from the books of investment firms, and hedge fund managers.
The problem with this, is the same problem that caused our little mess here.
Buy having the Federal Government purchase bad debt, with money that they DON'T have and have to borrow, they are FURTHER devaluing the dollar.
And if they FURTHER devalue the dollar, then OTHER "Non-Toxic" assets (like mortgages) will BECOME toxic, as people are able to afford less and less, higher up the Fiscal "Food Chain"
So, by purchasing these toxic assets, The US Government is ENSURING that MORE "Assets" will become "Toxic"
-Redshift the Rave Rabbit
Destabilizing Global trade, economic stability, and Investment inputs into industries.
Ever since the Dow's Great plunge of Late September 2008, the markets have been wildly fluctuating, Politicians have been scrambling to stem the unrelenting collapse of the global economic system known as the "Breton Woods"
The Bretton woods agreement was created after the LAST great market crash in order to maintain and ensure market stability.
It effectively pegged the value of the US-Dollar to the Value of gold, at $35 to one troy ounce.
The agreement ALSO pushed and insured the Dollars place as the World reserve currency.
Unfortunately for our currant situation, the Staple of the Breton woods (The fixed value of the dollar relative to gold) was revoked in the early Nixon administration when he removed this direct value correlation.
And our current economic problem, on a global scale, is the fallout of that decision, compounded by actions taken from outdated, and non applicable financial theories.
The first bailout in late 2008 was based on the economic models of John Maynard Keynes... and Involved the introduction of new money into circulation.
The theory of this "Stimulus" is the direct remedy to the *Apparent* problem.
And that Apparent problem, is a lack of consumer confidence.
When people have less confidence in the market, they save instead of spending.
When the people spend less, the companies they normally buy goods and services from MAKE less money.
If these companies make less money, they cannot afford as many employees, and thus, they begin downsizing and laying off their workforce.
And this is when the spiral begins.
For when large amounts of people are laid off, they spend overall less money back into the economy (because they have no money)
Thus, companies make less, they hire less, people have less money and spend less.
The stimulus theory, is that if the government injects a large amount of capitol (money) into the economy (by buying LOTS of stuff) that money will encourage increased spending, and increased hiring.
And on paper, the theory is absolutely beautiful.
There is, however... only one problem with this approach.
The problem with the economy is NOT a loss of confidence.
The loss of confidence in the US economy is a BYPRODUCT of the Acuall problem.
That, of currency inflation.
Since the value of the dollar is not fixed, it is basically a free floating ammount.
That amount is based off of two factors.
1. Total economic output of the Nation (GDP)
AND
2. Perceived Value (Demand . Investor confidence)
So, the total value of the Nation (determined through the looking glass of demand for the dollar) is the basis for the VALUE of the dollar.
And since the value of a currency is based primarily off of what you can buy with it...
You probly already see the problem, don't you?
Ok, follow me around the park for a bit.
In 1993, the North American Free Trade Agreement was passed.
This little bit of legislation removed protective tariffs from imported goods (or reduced them) and simultaneously applied penalties to domestic manufacturing companies for pollution and environmental damage.
This made manufacturing inside the USA more costly than anywhere else.
And made business in other countries (where these same standards were lacking, and labor cost significantly less) much more economically appealing to all manufacturers.
Thusly, many manufacturing companies were off-shored to other companies.
So, with a reduction in Gross domestic production, you have a reduction in the amount of goods that you can purchase with the US dollar.
And thus, you have a reduction in the overall VALUE of the dollar.
So, with the REAL value of the dollar (based on purchasing power) undermined, and a overall reduction in employment in the US (undermining domestic spending, and thus, domestic employment) You create a situation where the only thing keeping the value of the dollar at levels that still have purchasing power, is investor confidence in the dollar as a safe haven for wealth.
This is not necessarily a PROBLEM, unless you begin DELIBERATELY undermining the value of the dollar on PURPOSE.
And one surefire way to do this, is to start making MORE of it.
By the Billions, and Trillions.
You see, the value of the individual dollar is a set percentage of a sum total of goods/services that are available in the united states.
And, as the total amount of dollars in circulation increases, you devalue each individual dollar by a proportional amount of how much more (percentile) that you have added to the total money supply.
This also would not be that bad of a situation, if (AND ONLY IF) Domestic wages kept up with inflation.
Which they did not.
So, as the value of each individual dollar decreased by a large amount, people in the US were still making the same numeric amount of dollars.
Thus, overall what they could purchase was diminished, and since they could not buy as much, companies could not afford to hire as much, and people got less money, etc, etc, etc...
So, while it may seem that the market bottomed out around March 10th (2009) and is beginning to resuscitate...
What you are ACTUALLY seeing, is a temporary increase in spending (and associated increase in confidence based investment) fueled by the Infusion of new money into the economy.
Which is precisely what the legislators wanted.
The only problem, is that this infusion of CASH into the system is merely agitating the original condition that CAUSED the economic crash.
That, of Currency Inflation.
So, my prediction:
The market will rally up to maybe (8500DJIA) and then, as the currency circulates into the economy, and business begin readjusting their prices to accommodate the decreased value of the dollar (based on inflation) the market will resume its downward plunge.
There are already talks in Washington of Another spending bill.
A bill designed to alleviate "Toxic" assets from the books of investment firms, and hedge fund managers.
The problem with this, is the same problem that caused our little mess here.
Buy having the Federal Government purchase bad debt, with money that they DON'T have and have to borrow, they are FURTHER devaluing the dollar.
And if they FURTHER devalue the dollar, then OTHER "Non-Toxic" assets (like mortgages) will BECOME toxic, as people are able to afford less and less, higher up the Fiscal "Food Chain"
So, by purchasing these toxic assets, The US Government is ENSURING that MORE "Assets" will become "Toxic"
-Redshift the Rave Rabbit
In the Beginning
Project: Journalism
Hello all.
My name is Jake, but you can call me Redshift the Rave Rabbit.
I have decided today to begin a serious, in depth news blog from my own Unique perspective, in my own particular idiom.
I shall try to update my News Perspective on at least a semi weekly basis, and I will be touching on topics as broad range as Politics, Economics, Government, Science, Philosophy, Theology, Agriculture, Alternative news (Conspiracy, Aliens, Secret Governments, etc), And as always, I will be adding my own viewpoints, and connecting the dots that I see.
Feedback, Comments, Appraisals, Constructive Critisism, and Compliments are appreciated.
-Redshift the Rave Rabbit
Hello all.
My name is Jake, but you can call me Redshift the Rave Rabbit.
I have decided today to begin a serious, in depth news blog from my own Unique perspective, in my own particular idiom.
I shall try to update my News Perspective on at least a semi weekly basis, and I will be touching on topics as broad range as Politics, Economics, Government, Science, Philosophy, Theology, Agriculture, Alternative news (Conspiracy, Aliens, Secret Governments, etc), And as always, I will be adding my own viewpoints, and connecting the dots that I see.
Feedback, Comments, Appraisals, Constructive Critisism, and Compliments are appreciated.
-Redshift the Rave Rabbit
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