IMF Rigging the System?

IMF & ECB in fact all central banks are making a mockery of fiat currencies and ultimately the people will start to distrust the value of money in the medium term and assets linked to fiat currencies. At then end of the day the IMF hasn't got a job unless it just sloshes money into anything dead or alive, even if it's senseless. This global fiasco could in this modern day of global connectivity bring an end to a failed capitalist system, with no thanks given to the past politicians and central banks who've constructed the failure of the system. Greece must themselves declare default due to inability to implement the changes, this is being prepared for. It's only America, UK & IMF who want to keep this monster going, everybody else is just under perceived pressure. In business you don't reward failure (apart from banks), the people globally are becoming hissed (as seen below) at this idiocracy, end it now, take the pain (short term), followed by the better longer term gain (as realised by the Germans), not sure whether the German common sense can last....I hope it does. It just shows how they've recovered with greater morals from WWII than America or the UK have in this modern day! I'm British and starting to think I should be a German....How's that happend Mr Bush / Blair / Brown? I feel I live in a world of idiots, why... Central banks should give us 2% growth...not 3%...not 4%.... not 1%..... "2%" AVERAGE! For those in banks who find numbers difficult....to get 2% it may mean 1% one year, 3% the next, 2%..1.8%..2.2%..get it. Then we don't get capital system failures....or it's perceived to be rigged to steal etc. The people as seen through world demonstrations, comments....blogs...are becoming more impatient. Growth must come from a catalyst which is NOT QE. Demand growth will be weak unless commodities fall in price!

Volker Rule can Save Us

Regulators are assesing bankers please. I say: The Volker rule is pure basic common sense, delivering superior safety and significant benefits = stable progressive economy. Any bank trying to get around in any way will be severly fround upon by the public. It's possible that the public may avoid placing savings in banks that are perceived to speculate going forward, the banks walk on a tightrope with this. Any banks embracing the rules may find their capital rations improving significantly giving the said bank significant ability to improve profits via common sense lending. If only the bankers where half the man of Volker we would be in a better state today. What a man and a proud history he's carved out fo himself, people look at Greenspan & current Co and see outright monetary stupidity. When people read the economic history books I know which person I'd prefer to be.....Well done Paul Volker and Obama for being true to delivering down to earth, sensible and honest rules of the road! Most of the planet wants this apart from the minority greedy leeches which we know as #ankers.

Capitalism Is Failing

The Greek situation is like a Walrus fight and a disgrace to 21st century civilization. With outrageous central banks, unrightous politicians (I'm not just talking about the current ones) and weak fiscal global policies are delivering a scene which I hoped we would never see again after early 2000's. But as we've been duped time and time again by all over this past decade, it's no wonder Greek people themselves are rioting along with Arab nations and England, how can a public be so misled by all...was someone yet again thinking of their own pockets to ride a soverign debt / credit wave. It appears the majority of the globe (sheep of society) is being misled by politicians, the Fed and central banks. They're all out of control....it is only the people that can stop this and over time stop this they will. We need a better world run by the people for the people and not the way it is run now. Out with money and in with a skills based society, so we can better manage the planet, it's resources and it's people, capitalism is failing to deliver.

Greece Heading for Default

Greek bond holders expected to cut more and more. OMG 70% loss and still a voluntary loss and is the revised 120% debt still servicable by a declining economy, I think NOT. Is this the International Monetary Fund running this stupidity or the International Madness Fund?  Just get on with the default and stop letting the black hole destroy the declining wealth of European taxpayers. Nationalise banks as required, protect savers and no more, we've had enough of this ludocracy, bubble blowing and phony economics. Remember for the rest of the countries the only decent solution to this is near balanced budgets and have independent community bodies per nation set up to monitor politicians, financial regulation and central banks. This is the only way to zero out the corruption which got us here, no one can give trust to anyone anymore.

New Age Solution to Global Debt Crisis

With the world in a new once in a century economic dire new solutions need to be forged to put the world back onto a path of growth and prosperity. When I was a young teenager knowing zero about economics, not even knowing that central banks existed and printed money. I recall saying to an old friend, why don't banks just print money and give everyone free money. Well fast forward to today and with the knowledge I now have of finance and economics, which is only a little bit more than then but I still can think outside the box. So this is my new idea / solution to the crises:

New Solution to Global Debt Crisis
The simple solution would be Private Peer to Peer Central Banking. So how would this solution to the global debt crisis work.

- National Central Banks still retain money creation control.
- Private individuals must have a minimum of £100k cash to start a Private Central Bank.
- Private individuals allowed to leverage their own cash capital 100:1 with lowest cost funding provided from the Central Bank.
- Central Banks fully back the >£100k collateral from loss to individuals Private Central Banks, Central Banks effectively replace losses with new printed money.
- Small loans of >£2.5k <£5k from the multiple Private Central Banks to individuals, small businesses and banks.
- IT system for operation provided and run by the National Central Bank which maybe delegated to a next level down strong traditional bank, say HSBC or similar, run at small overall cost say 0.1% per loan.

What would be the further economic benefits of this?
New Private Central Banks would deliver job growth on 3 fronts.
1. The individual running the new Private Central Bank would give up the day job, effectively creating a new job.
2. The new much needed loan growth would stimulate jobs and inflation in turn reducing the deficits quicker which would in turn create a cycle of growth.
3. The individual running the new Private Central Bank would have a new found wealth and thus start stimulating the economy from spending more money than normal from profits, or further investing which also increases GDP / stimulation.

In addition to this:
- Traditional banks get a new source of funding which is leveraged existing cash M(1-6)-whatever, 100 fold increase, which can compound up as stable growth in the economy filters through.
- Governments and central banks MUST control the rate of growth at <4%.
- Loans given by Private Central Banks must be secured against assets.

A significant amount of Private Central Banks can co-exist globally and potentially allow money creation of any currency linked to whichever Central Banks join this new innovative solution. Will Mervin and Tim go for this?

UPDATE: After my comments the BOE & Conservative government are to provide £100bln in loans via banks starting Q3 2012. This has parallels to my calls for stimulation and has impressed the USA FED who may implement a similar scheme. They should pay me a consultancy fee, circa £1 million would do, cheaper than Goldman Sachs advice.

Germany Under Pressure

I fully back the German stance for requirement of european wide fiscal policies, I would never expect the UK to back a whole region with it's money without fiscal discipline policies to rein in the renegades like Greece and it's fellow country followers. The statments from other people of loan now sort it out later is not acceptable, as evidence of austerity has been week and thus the risk of loss increases significantly. This is why the Germans are now taking a hard line, promises have not been kept, no policy no loan, as they say the market would not trust the EFSF fund, it in itself would become the biggest toxic bazooka within a year if policies are not created and not met. Of course the policies could be created and not met, but you wouldn't know this to be the case for some time, just like the Greek trojan sent into europe. Im glad to see the Germans are not accepting large brown envelopes and sending their country into the pit of rabbid dogs (european clingons).

USA Deficit Debt in 2021

Ten years of deficits at $1.3 trillion per year is $13 trillion in total new deficits. Add that to the $14.8 trillion outstanding today, divide by 97 million above poverty line households, and we get about $286,000 per household, as shown in this next graph.

USA Debt Per Household Income


USA Debt Going Up


USA Debt Total Per Household


USA Nationa Debt Summary...Oh My God


How will this be paid. Simple answer inflation over time, 20 - 30 years US $ will be worth a fraction it is worth now compared to assets. This will be in the region of 5c to current $1. May as well quit your job and go back to work in 20 years because anything you save for retirement will be washed away. Yes simply give up, buy gold, oil & food stocks / ETF's is my recomendation.