Safriz
BANNED
- Joined
- Aug 30, 2010
- Messages
- 20,845
- Reaction score
- -1
- Country
- Location
TheNews Blog » Is Capialism the Culprit?
Is Capialism the Culprit?
Asif Punjwani on 1, May 2012 | 5 Comments | in Category: Around the World
Capitalism isnt a new idea. It has been around for the last 5000 years where Gold, Silver, Copper, Salt and other scarce commodities were used as money. It is Banking and its Fractional Reserve Banking that came about in the last 400 years. What we have today is a sickening version of Capitalism where money is fake, profits are projected, investments are leveraged, Governments are monetized, International trades are subsidized and the losses are socialized. In a free market, everyone has as much of a right to succeed as much as they have a right to fail. Today, its laissez-faire till abankergetamargincall!
What we perceive as money today is not money but debt issued either by the Central Banks to finance Government Budget Deficits and the other by Commercial Banks to finance Private and Public Investments. During Economic bubbles, banks issue plenty of money causing economic signals and incentives to go haywire. The Banks and Governments play this Economic Tango with Deficit-financing and loan guaranties for Commercial lending (Fannie& Freddie) while trampling on the rights of individuals participating in the economy. Banks have financialized Education and Housing with Government backing. Government has financialized healthcare and retirement via Medicare/Medicaid and Social Security respectively.
The Financial Crisis of 2008 wasnt the failure of the Oil Industry, the Auto Industry, the Airline Industry, the Agriculture Industry, the Textile Industry or any Industry that actually produces goodol honest-to-God goods that we use every day. It was the failure of Mortgage Bankers who issued NINJA (No income no job/assets), Liar-loans, No-Doc and Alt-A loans which we know as Subprime loans today. It was the moral failure of property appraisers. It was the failure of the rating agencies and their blind rage to increase their market-cap by rating everything under the sun as Triple-A. It was the failure of SEC and the FED to enforce the laws. Even the FBIsawthemortgagefraudbrewing as early as 2004.
Afterall Citibanktestifiedunderoath that 80% of their MBS loans were defective in 2007. The SEC and FED sat and enjoyed the music. Lets not blame the VAR(value at risk) numbers when the initial due-diligence was missing before the loans were issued. And when the music stopped, this funny money was supposed to bring a shrewd justice to these institutions. But wait! Who said lifes fair? This funny poison called Financial instruments (CDO2 ,Interest-rate Swaps, naked CDS & puts) were all rescued by real debt issued by the Central Banks to the Governments. The World will continue to pay a huge price for these bailouts via Inflation, vanished savings/pensions and slow economic growth.
Free-markets gave us the Industrial revolution, the light bulb, the Microprocessor, mobile phones, television, eBook Readers and automobiles, all at affordable prices. This is proof that free-markets work. But it will fail if fraud is not punished and sanctity of money is not protected. Government the prosecutor of fraud and protector of money, itself is the culprit here. It delegated its sovereign right to issue money to the Banks. Fraud is fraud unless you are a Banker or if youstolefromtheBankers (Madoff). A world where downloadingillegalmusiccould land you in prison for years but wrecking up the global economy would costyoulessthan 1% of your market cap. Not only does GoldmanSacksowntheWorldbut also its future generations. Its up to the free citizens of the world to refuse their paper currencies and bank checks in return for their fruits of labor or face eternal damnation of financial slavery.
Is Capialism the Culprit?
Asif Punjwani on 1, May 2012 | 5 Comments | in Category: Around the World
Capitalism isnt a new idea. It has been around for the last 5000 years where Gold, Silver, Copper, Salt and other scarce commodities were used as money. It is Banking and its Fractional Reserve Banking that came about in the last 400 years. What we have today is a sickening version of Capitalism where money is fake, profits are projected, investments are leveraged, Governments are monetized, International trades are subsidized and the losses are socialized. In a free market, everyone has as much of a right to succeed as much as they have a right to fail. Today, its laissez-faire till abankergetamargincall!
What we perceive as money today is not money but debt issued either by the Central Banks to finance Government Budget Deficits and the other by Commercial Banks to finance Private and Public Investments. During Economic bubbles, banks issue plenty of money causing economic signals and incentives to go haywire. The Banks and Governments play this Economic Tango with Deficit-financing and loan guaranties for Commercial lending (Fannie& Freddie) while trampling on the rights of individuals participating in the economy. Banks have financialized Education and Housing with Government backing. Government has financialized healthcare and retirement via Medicare/Medicaid and Social Security respectively.
The Financial Crisis of 2008 wasnt the failure of the Oil Industry, the Auto Industry, the Airline Industry, the Agriculture Industry, the Textile Industry or any Industry that actually produces goodol honest-to-God goods that we use every day. It was the failure of Mortgage Bankers who issued NINJA (No income no job/assets), Liar-loans, No-Doc and Alt-A loans which we know as Subprime loans today. It was the moral failure of property appraisers. It was the failure of the rating agencies and their blind rage to increase their market-cap by rating everything under the sun as Triple-A. It was the failure of SEC and the FED to enforce the laws. Even the FBIsawthemortgagefraudbrewing as early as 2004.
Afterall Citibanktestifiedunderoath that 80% of their MBS loans were defective in 2007. The SEC and FED sat and enjoyed the music. Lets not blame the VAR(value at risk) numbers when the initial due-diligence was missing before the loans were issued. And when the music stopped, this funny money was supposed to bring a shrewd justice to these institutions. But wait! Who said lifes fair? This funny poison called Financial instruments (CDO2 ,Interest-rate Swaps, naked CDS & puts) were all rescued by real debt issued by the Central Banks to the Governments. The World will continue to pay a huge price for these bailouts via Inflation, vanished savings/pensions and slow economic growth.
Free-markets gave us the Industrial revolution, the light bulb, the Microprocessor, mobile phones, television, eBook Readers and automobiles, all at affordable prices. This is proof that free-markets work. But it will fail if fraud is not punished and sanctity of money is not protected. Government the prosecutor of fraud and protector of money, itself is the culprit here. It delegated its sovereign right to issue money to the Banks. Fraud is fraud unless you are a Banker or if youstolefromtheBankers (Madoff). A world where downloadingillegalmusiccould land you in prison for years but wrecking up the global economy would costyoulessthan 1% of your market cap. Not only does GoldmanSacksowntheWorldbut also its future generations. Its up to the free citizens of the world to refuse their paper currencies and bank checks in return for their fruits of labor or face eternal damnation of financial slavery.
