“I’m fully aware of history’s inflations, deflations and hyper-inflations, and all other dynamic market mechanics. I am absolutely, logically analytical… If you don’t think free money prints are viable and required, please read on…”
Egypt, Greece and Rome experienced many models of money, credit and political organizations, through their long histories. Can we learn something new from them…? First, I am a super-macro-economist. I state this to simply distinguish between average macro-economists, who deal with existing academic knowledge systems, and my unique anthropological-macro-economic models, of possible futures, you have not yet heard of. I accept the validity of most economists publishing on Nouriel Roubini’s site, and most of all respect Paul Davidson’s posts, and the extended posts on his site, and the books he has written. Paul’s ideas, if enacted two years ago, may have saved the world from the dire conditions, we now find ourselves in, but due to the evolution of markets into a condition where the “Shadow Banking System Wolf” is fast eating the “Real Banking System Sheep”, new ideas are required.
Globally, the international economic-law system/systems of markets, trade and finance are devouring the local economic-law systems of most all nations, and shortly all nations can not escape the calamity in process. As mentioned by many, ships are sitting in ports, unable to finance loading or unloading. Trucking companies are on the verge of bankruptcy. Rail lines are having trouble obtaining load/unloading financing. China has canceled orders with Australia for steel. Oil tanker traffic is being reduced by the global credit freeze, and on and on it goes, as many have published about already. In short, the system is collapsing___faster than most of the world realizes, and the governments’ plans of this weekend are too wrong, too little, too late___to save the system, without drastic new “Law Ideas”. We can’t keep throwing good money after bad. We must enact new system responsibility laws “FAST” to save the system, or many will starve, freeze and die!
Temporarily, we will shortly have to close the international financial markets and all foreign exchange and book/computer exchanges of, to emplace the required new capital law system controls. The real trade markets must remain open. Financing must be Immediately insured by all governments wishing to receive their required trade goods. An international clearing house must be Immediately set up, just for necessary goods, and winding down of existing, “in process”, real trade contracts, deemed necessary by banks, corporations and governments, where possible finance is allotted. From now on, this will be emergency financing first, for survival purposes, as many markets will further constrict rather rapidly, from here on out, until the new local and international law architectures are emplaced, and enough new hyper-financing is forthcoming…
ALL governments should Now act as “market makers”, and eventually will need to, Insure and re-capitalize all the viable banks left standing, and close those severely impaired. The longer they wait, the more it will cost___better to pay less now, than more later. America should Immediately freeze all real goods prices from rising, yet allow all real goods prices to move down, while wages and profits are allowed to move up. This does not include the stock and commodity markets, as they must be left free to find their own pricing levels. Other nations will eventually have to do the same. Everything, and all markets, can be returned to normal after the time needed to formulate and emplace the new law structures I will put forward. These temporary acts are only required for the time needed to educate and emplace the new regulatory legal architectures. This will take time as, most likely, it will be America leading this new effort, just as it was with Bretton Woods in the `40’s. All nations will eventually have to sign on, and eventually will, when they see the drastic conditions hitting their own nations, as many already have. All will see shortly…
Now, to make these new ideas as short and concise as possible, I’ll use a transposed model of Egypt on America and the modern world. How did Egypt last almost 5,000 years? Let’s assume she used “Tally-board Capitalism”. What is it? Nothing other than set prices, as wages and profits rise. How did they finance such dynamics? Just as Greece and Rome did___Plunder of satellite areas and empires. But, we are civilized, so how can we transpose Egypt’s credit and financial system on America, and the world, also, without the stupidity of domination and war? The dynamic mechanics of Egypt’s credit and financing through plunder, can be comparatively transposed into the modern world through a higher understanding of our own credit, banking and printing press dynamics, which most, if not everybody, has not yet considered. The reason you will listen to me is the fact that “Derivatives’ Casino Capitalism” can never again be set up on the old plan, due to the fact, far too many people have learned how to be “Wolves” devouring “Sheep”, with global computer driven trades___Nor would we ever want to set up such an ill-fated, over-leveraged, gambling casino again___At least not any sane-minded people...
All we need to use “Crude Printing” to replace Egypt’s “Tally-board Capitalism”, is a proper inflation/deflation controlling law system architecture, based on the efficient necessity, imperative of responsibility, yet fully grounded in real “New Law”. This simply requires our full understanding of the fractional reserve banking system’s expansion to “Triple Entry Banking”, “Internal Exchange Clearing” and its related “Private/Public Enterprise 20% P.X. System” of new “Marshall’s Units of Production” standard laws, to control inflation/deflation internally, no matter how much pressure is put on our currency, by foreign nations. This system is either feasible multilaterally or unilaterally/autonomously, which fully respects the sovereignty of America, and all nations concerned. No matter what other nations attempt to price our currency at, we maintain our own internal and external values, and export and import as needed, after law system implementation, by being able to export real goods to receive other nations’ currencies, when currency is devalued by others, with no effect on our prices; and buy other nations’ currencies with exports, when our currency is revalued by others, with our print ability to export, no matter where the external value may be set, yet this system does not set in play the currency competition witnessed in the `30’s, due to the fact of its superior functioning, where all nations will be more than willing to adopt such an extremely efficient operating a system, to enhance their own nation’s superior health and survival. The “New Law System” must be written with “Dynamic Sliding Time Scale Laws”, of change, that benefit not only America, but all other nations of the entire world. Paul Davidson’s ICMU http://econ.bus.utk.edu/faculty/davidson/cambridgepaper.pdf works very close to this system, is better known, and can also be implemented along with my system, yet my system can be used better in the dire emergency conditions we now find our condition. Time is of the essence…
A better, yet not fully complete article of my, Plato’s, Benjamin Franklin’s, and Paul Davidson’s systems is available at this link: http://theawakeningoftheamericamind.blogspot.com/2008/09/lets-take-higher-road.html
Articles and ideas I’ve been posting over the last five years are available at this link: http://macromouse.blogspot.com/
Hope to see you soon, in the new world…
p.s.
...and I also meant to have the gov. "market maker", also perform all the refinancing backing for the banks, market and citizens of lost homes... Big price-tag___but better to pay less now, than much more later...
Better get used to using the printing press___It's about time to figure a law system to use it responsibly, yet thoroughly, i.e., prices down while wages and profits increase___It Is Possible... A New Model of Global Credit Productivity...
Even possible autonomously, if necessary...
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