Monday, July 22, 2013

Extra Thoughts on the United Order

While all of this may sounds good. Implementation is a bit more involved. We live in a totally federally controlled system that would completely obstruct any type of implementation of a United Order system. 

1. Government must get out of the welfare business.  Welfare is the duty and business of religion and not government. An individual abusing drugs falls under the jurisdiction of religion and needs religious discipline and rehabilitation. If a person sells recreational drugs or otherwise harms another person, that is the jurisdiction of the state.

2. You would need a Constitutional national banking system called the Full-reserve Safety Society System (see other posts).  All loans are fee-based, no-interest, no inflation. The real-estate is the backing for the on-demand loan.  The quantity and value of labor involved determines the cost.

3. Education reform where elementary school teaches reading, writing, arithmetic, visual art, music, citizenship, geography, health and natural science. (Gayle Brosnahan centers method).  

High school would teach math, physical science, history, literature, performing and visual art, government and economics, physical fitness, ROTC, health science, as well as engineering, electronics, computers, automotive, agriculture, wood and metal working.

During or after High School students would choose a vocation and apprenticeship. Students would apprentice during the day and get a 4-year degree at night that would be focused on developing knowledge and skills that would assist them in their field like medicine, engineering, science, electronics, construction, agriculture, etc. 

High school  students could matriculate into a vocational school early working during the day and taking classes at night.  Vocational school would begin at 16.

4. Business Reform: do away with the business culture.  No bosses, no-mid level managers; only partners. No assist staff, apprentices do the support work. Journeymen would help teaching. Like the Boy Scouts, skills would be journeyman led and taught.  All workers can one day become the master.

5. No retirement. No pensions.  Workers with less costs can work less hours and do more administrative responsibilities.   They know the business and therefore can better handle the business of the business.  No MBA required.  When a workers becomes disabled, then he is entitled to disability benefits from the bishops storehouse.  These end-of-life costs not added to the cost of products and services.  Cost of a product is only the quantity and value of labor.

6. Medical reform. Oklahoma Surgery Center is cash only and charges 20% what a hospital charges for a procedure. Considering that insurance only covers 80% and patient pays 20%, that means insurance companies provide no value and can be eliminated.

7. Insurance reform. all catastrophic insurance covered by a neighborhood bishops storehouse.  Bishop storehouse administered by the Church covers all catastrophic auto, fire, heath, and disability claims only as family and extended family is unable and needs assistance.

8. Religious reform: churches teach and require 1 Cor 5:11 virtue, discipline, and rehabilitation.  Churches also provide charitable insurance coverage for the fatherless, widow and truly disabled.  This would really get the congregation praying and fasting.

9. Tax Reform: No federal income tax.  Only federal fees on borrowing money (Safety Society System) and tariffs on imported goods.

10. Military Reform: officers training and state militias only.  Close all over-seas military bases and use our military to protect our borders.  The US can be 100% energy, food and manufacturing independent and self-reliant. We should be an example and not a bully.

11. City Reform: 1000-family cities only

12. Career Reform: end insurance, end IRS, end most government bureaucracy. Sports, visual and performing arts should be amateur-centered and performed after work and on weekends.  Artists and athletes should also be workers and producers. 

13. Social reform: women are welcome and encouraged in all levels of education, scholarship, careers and administration. However, when children come, a mother's primary duty is to see to the nurture of her children.  "Why save the whales when your own children need saving?"  

14. According to Paul single woman with children should remarry by someone who can financially support them. Marriage should be encouraged.  However, polygamy could also be considered as long as the family receiving them does so willingly and has the financial ability to fully support a second independent household living in their own separate home. (Don't sign me up).

Polygamy is forbidden by the LDS Church.  However, I don't get the hypocrisy of Christianity that is okay with our youth engaging in rampant no-commitment-recreational-casual-soul-and-country-destroying fornication but condemn voluntary and responsibly church-managed polygamy for the purposes of welfare of the fatherless and the widow as was historically practiced by the LDS Church and taught by Paul (1Tim 5:16-17) and Moses (Ex 21:10).

15. Humans should all be trained to do skilled labor.  Apprentices, robots and machines should do unskilled labor.  Administrators should be retired master craftsman who still practice in a limited way if possible.  There should be no money elite. No capitalists. No money aristocracy.

16.  Elected leaders should be elected based on virtue and NOT merit.  And elected leaders don't need protection.  If they get shot, the people will elect more. We don't need national security = preserve the power of the special interests/ruling elite.

We are never going to fix our society until we get serious and get real and address the causes of poverty and corruption in our society.  Unfortunately, maybe it will take a complete collapse before anyone feels motivated enough.

Thursday, July 18, 2013

Bank of International Settlement Basil 3 Accords

Some people don't know that the G20, Private Central Banks have a Momma Bank.  The Momma Bank of all the Private Central Banks is the Bank of International Settlement in Basil Switzerland.  What does this bank in Basil Switzerland do? Among other things, It puts out accords that set reserve requirements.

Basil 1 Accords (1988): Targeted Japanese Banks, increased reserve requirements, reduced fractional reserve leveraging of debt, contracted the money supply, triggered the Japanese "Lost Decade".

Basil 2 Accords (2007): Targeted American Banks, increased reserve requirements, reduced leveraging of debt, contracted the money supply (M3), triggering the Housing and Mortgage Back Securities collapse.

Basil 3 Accords (2013): Targeting all American and European Banks. will increase reserve requirements, reduce leveraging of debt, contract the money supply. Have yet to be implemented.

Basil 3 was supposed to be implemented Jan 2013 but has been posponed. Do we think Basil 3 will be implemented? What will be the consequences?

STERILIZATION: how money at the top does NOT trickle down. The FED is printing massive amounts of money every month. The money is given free (zero percent interest) to the BIG BANKS and BIG COMPANIES that are registered as banks (GAMC). The banks then buy stock and bonds with that money that serves to artificially prop up the stock market. These Banks also buy US sovereign debt in the form of Bonds as the US continues to spend more than it takes in. CEO's then cash out stock options as the stock market continues to rise. CEO's then are sitting on a mountain of cash while the rest of us are forced to sit with unemployment, underemployment and reduced wages.

I am very suspect of any economist who doesn't talk about the effects of Bank of international settlement Basil Accord policy, the realities of demographics of the economy and Sterilization with regard to why we are not seeing more inflation despite FED printing of money. Too often we just hear predictions of imminent collapse and recommendations to buy gold.

How will this Bond and Derivative Market play out? We have Big Banks using free FED cash to buy up US Soverign debt in the form of Bonds. We have Municipalities and Banks invested in toxic Credit-Default-Swap derivatives. So, can the FED keep this going until WW3, or will there be a tipping point? Banks used to just buy Bonds that at least kept up wtih inflation. Now banks and municipalities are buying-credit-default swaps because these pay out in the short term a better rate than bonds.

Credit Default Swaps: Because Bond yields are so low; banks, municipalities, and hedge funds have been enticed to purchase volatile credit default swaps. People are fooled into buying CDS's because 1. they yield more than bonds, 2. the corrupt rating agencies give them a AAA rating the same as bonds. 3. the CDS market would not affect the overall 32 Trillion US bond market in 2011 (the tail won't wag the dog). 25-62 Trillion CDS market from 2007-2012.

When the US goverment sells bonds, it buys insurance to protect the buyer in the case of US default. The US government pays a monthy insurance premium to a bond insurance (CDS) company. However, like AIG, the bond insurance company knows in the case of a default of the US, or a city or whatever, it could not possibly pay for the bonds it is insuring. The bond insurance company just likes spending the insurance premium cash that comes in every month. If a default comes, they would just default and walk away or get bailed out like AIG. 

However, the bond insurance company had an even better idea. Instead of holding on to the insurance policy and collecting the monthly premiums and carrying the liability, the bond insurance company sells the CDSs to other people. That way the if a default were to come, the bond insurance company has gotten some money out of the sale of the CDS but they have sold the responsibility to repay to someone else. If default happens, the insurance company is off the hook and not "left holding the bag". Whoever is holding the CDS gets the monthly bond insurance premium payment, but also has the responsibility to repay the bond owner. Furthermore, If I read things correctly, in the case of the default, the CDS hold is responsible to pay the bond holder, and the original CDS seller ends up with the bond.

Credit default swaps are bad news because:
1. the insurance companies know they couldn't possibly cover the cost of a default.
2. the CDS buyers can't possibly cover the cost of a default
3. When Greece restructured their debt instead of default, they decided to repay pennies on the Euro. Not technically a complete default, hedge funds hold Greeking bonds lost their shirt, and CDS holders only took a haircut.
4. IMF told private Greek Bond holders that they had to independently negotiate a settlement with the Greek government. This lets the Greek Government and IMF decide how much it wants to repay who.
5. CDS's do affect and depress the bond market (wag the dog).

The Great Gatsby

Just for the record, I think this F Scott Fitzgerald purposefully made this point ambiguous.  But it is my opinion that Jay Gatsby was driving the yellow car that struck and killed Myrtle Wilson and not  Daisy Buchanan. Nick Carraway is the narrator and tells us that Jay says Daisy was driving. But, Nick isn't the most dependable narrator and liked Jay Gatsby despite his several lies (boot-legging, oxford, rich parents).