Re: financial meldown

orangatang1@xxxxxxxxxxxxxx wrote:
On 27 Jan, 23:02, orangata...@xxxxxxxxxxxxxx wrote:
The pyramid scheme that is the bond market is collapsing around us.
the scale of this meltdown is truly astonishing. the bank of
international settlements puts the =A0"Amounts outstanding of over-the-
counter (OTC) derivatives" at 516 TRILLION dollars.
(516,000,000,000,000.00)

http://www.bis.org/statistics/otcder/dt1920a.pdf

while the bonds traded in exchanges amount to another 30 trillion. (us
gdp was 13.13 trillion in 2006).

The media is attempting to play the scale of this disaster right down.
for example, the bbc says that

"...the mortgage bond market is worth $6 trillion, and is the largest
single part of the whole $27 trillion US bond market, bigger even than
Treasury bonds."

http://news.bbc.co.uk/1/hi/business/7073131.stm

Spin is not going to work. this crash is not due to 'sentiment'. We
are looking at the evaporation of hundreds of trillions of dollars.

mark my words. this is going to be messy.

we are talking about the gdp of the entire world for about 10 years.
(https://www.cia.gov/library/publications/the-world-factbook/print/
us.html) this is completely insane.

never in the course of human history was so much owed by so many to so
few.

The distribution of money is so problematic that the only way out
is to introduce new currencies. In all likelihood just a new currency
won't do it, currencies will have to be changed a number of times,
probably at least twice. Every time you change a currency, you can
decide what money will get ported and what doesn't. Obviously this
means you need a loyal (democratic) Government first before currency
changes can do their work. I think things are much worse then people
know, because not only finance is corrupted, virtually everything is.
Politics, media, law, ideology, economics, voting, pollution, culture.
Things are so bad that even replacing them would not even be enough.
They have to be replaced, and then again replaced, and maybe again.

Everything needs replacement (new political parties, new media, new
laws, new understanding, proper economics, verified voting, much
less pollution & greed, away with negative skull&death culture).
During the replacement, the problems will try to graft themselves
into the replacement to survive, and there is so much bad that the
replacement will then later need replacement again. Yet more new
political parties, yet more new media, another new currency, maybe
again looking at the Universities. After that, things are probably
clean enough to be able to survive. Then problems are isolated enough
that they can be handled locally.

Imagine this: a stock gambler has lots of money but knows a currency
change is coming. So he buys foreign currency from an unsuspecting foreign
person, or goods in another country. After the change of currency, he
buys the new currency with the foreign currency that did not change.
This will happen a lot, they will all be trying their hand at that
flipflop game, even if other countries also swap their currencies. For
this reason it is important that the currency changes come unannounced
and suddenly (during the night I guess). But many stock gamblers and
banks will come long prepared, have assets everywhere, much loot will
survive and be grafted in. This grafted loot will be a seed for new
corruption over time.

Then (some time later) changing the currency a second time, and
also having currency and ownership changes in foreign countries of
course, wiping out more of these hidden ownership stashes or forcing them
back into other currencies, people will be more alert to the fact
they could be taken in. At some point the currency changes should
catch up to most of the hidden ownership stashes. If done right, the
hidden ownership stashes would take bite every time a currency changes.
At some point the value is small enough to be more or less harmless.
At some point it would be better to investigate individual stashes
and ownership of goods, or investigate suspect persons (like old
bank owners and such, the rich & greedy).

One would just have to continue with changing to new currencies,
until the ownership stashes are all deleted sufficiently, this will
probably need to be a rough process, because the dirt is sticky. For
"real" people this does not have to mean that much, as they would
always be able to hand in their money if it is not too much, and their
bank-accounts are transferred to the new cash automatically (up to a
maximum). There should be no way to hide illegal wealth, not even in
hidden commodities. They will hide wealth in the ground and in caves
(diamonds, gold, statues, etc etc), because that is more or less their
only way to hold on to (high) illegal amounts of private wealth. As
long as they can't dig it out, it doesn't hurt us either. Once they
start digging it back out and trying to sell it off (for the new
currency and other commodities, to get people to do what they want in
exchange for money), we will be able pounce on them (be in waiting
with some phony fences, they will come right back to us unwittingly,
to sell their stuff, and then we have them). As long as it is hidden
it doesn't distort the economy.

I'd say changing currencies to clean out erroneous wealth distribution
(obviously one would have changed the law by then to make sure the
erroneous distribution of wealth does not again develop) is like
cleaning a floor. If it is dirty, you clean in once. If it is very
dirty, you clean it twice, every time you pick up more dirt, and the
old dirt gets soaked longer and longer, making it loose.

I'd say, because money is so important, during currency changes it
would be a good thing to at least to take care of basic life necessities
of everyone, whether they can or can't pay. If that is not done, the
panic would be overwhelming. Once some countries have done the
operation, the other countries should investigate. The enemies will
probably have one single strategy: cause as much chaos and anarchy
as possible, trying to blame that on us, hoping it will reverse the
policies. I would think a lot of terrorist attacks could happen, the
enemy would probably have a strategy of "the more chaos, any chaos,
the better; then they will come back to us." We better hope they are
not with too many then, or the amount of total damage could be exceptional,
and it could totally disintegrate a Country and put it temporarily back
to the middle ages. That should not stop us though, because if it would,
that only makes it a more likely counter strategy for the enemy
(reactionary leaders and their hired gangs).

Having said that ... if people play nice and do their bit (but
apparently nobody is): http://www.jhwh.be/~joshb/soundinvestment.html
everything can be as sweet and uneventful as if nothing at all
happened. People may not even know anything changed, and no currencies
would even need to be swapped if the rich & greedy would simply play
along with obvious Justice. But have they ever in the past ? No, a few
maybe, but many wouldn't. If they get illegal, we would have to get
rough in order to erase their illegal activities. Currency change is
one of the most powerful tools, as it instantly destroys all hidden
cash without the need to find it. It draws out all hidden stashes,
which would have a need to graft themselves into new wealth carriers.
That means it will be vulnerable, so we can erase it.

I thought a good idea for gold & diamond: once we have the big piles,
divide it into 130 parts. Every year we throw another part unto the
free markets. What that does is reduce the commodity value of these
metals over such a long time (in principle), that nobody would do
wise to keep their gold another day (in principle) but sell now. The
value would decrease for longer then they live. This should draw out
gold (same for other such commodity stashes) into the free markets,
where they could then end up being traded and used as a regular
resource would.

This financial cleaning operation would obviously first need popular
approval and participation.
--
http://www.jhwh.be
#91 http://www.xs4all.nl/~joshb/no-id-theft.html
.

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