Paterson Calls for Federal Rescue Package for States (NY Times)

article at: NY Times

seeing this article regarding David Paterson in the times today reminded me that i wanted to make a correction to my post: money as debt wherein i typed the following:

"if you get the basics of the video, you'll understand why our government making direct deposits to the banks is a good way to create a lot more money within our economy (for every deposit, a bank is authorized to write about a 9:1 (made up maney : actual money)ratio x's the loan amount onto their books by the federal reserve)."
{sometimes the ratio can be way more, like 358:1, or sometimes a bank is able to dispense with the real money requirement altogether and then the banks are just straight up multiplying a loan amount as many times as they desire, and writing it on their books. TO GREATER OR LESSER DEGREES, BANKS ARE ALLOWED TO MAKE MONEY OUT OF THIN AIR!}

what fluxlife neglected to say is that the banks now need to release that money into the economy largely through lowered interest rates on loans, mortgages, and credit cards. the banks also need to waive the various fees (penalty and otherwise) indefinitely. hello !!! if the banks servicing our mortgages would drop the mortgage rates, everyone would stay in their homes. unless you received a loan direct from AIG, Fannie Mae, Freddie Mac, or any of the actual lenders (i don't think anyone ever does, but who knows?), your bank is just servicing your loan for one of the loan holders and charging you at the rate of borrowing as stipulated in the contract you signed. under these extremely difficult financial times, they can lower the percentages to help America stay in their homes! they can restipulate the percentage rates! c'mon banks of america, time to give back to your country! if nothing else, for the fact that you will have much less of a country to do business with without a significant lowering of the mortgage rates and other rates of borrowing as well. eventually, the banks that hold the money of the middle class (most of the banks) will put themselves out of buisness anyway, without lowering their rates significantly, and extending more loans that everyone can afford and qualify for, and dropping all their charges indefinitely. even bail out money for the banks will dwindle at some point.

also, making more loans available (near, at, or below 0.25% interest -{the interest does not make nearly as much money as the approx. 9:1 (made up maney : actual money)ratio x's your principle loan amount that they write down on their books}-correspondingly, the feds need to drop the prime rate below 0.25% until we're back on our feet) will generate more money as that's one of the primary ways our country generates money. to understand this, go to my post money as debt and set aside about 45 minutes (or break it into 2 sessions - the first 2 minutes are very informative if that's all the time you have) to watch the video. you'll be glad you did. or watch the video here:


original post here: money as debt

quick video to get the real deal on the bail outs:

original post here: $700 billion man (Marc Faber)

if you study money, law, history, the u.s. consitution, philosphy, and finance at any length you may understand that much of the finanacial and legal strife we may be under at a given time is largely arbitrary. in fact, the rules are so arbitrary because they often benefit the authors and actors of the law and finance they were written through or by.

for the average individual to be bound by these arbitrary and often poorly conceived and biased rules is largely absurd. from a legal basis it is absurd because the constitution originally vested the power in the individual against any possible monarchy, oligarchy, theocracy, dictatorship, or over powered, innefective, burnt out, special interests, corporate based, militaristic government.

the truth of the matter is, that we all have a right to happiness and a good life no matter where each of us may fall within the spectrum of life. the fact that funds are distributed to certain groups/individuals and not others is bunk. we can write the rules so that everyone has everything they need or want. these ideas that scarcity is the truth, and not abundance , are merely tools for those who are not ready for real change in order that they may maintain the status quo.

we don't have to be lawyers or financiers or government officials to make change. all we have to do is realize that our country rests on rules and practices that will always be experimental. we can look at the rules and practices that effect us and first understand them. then, if they're ineffectual or legally absurd, we can form groups small, medium, or large to address the relevant issues. even just to begin to understand these things as an individual is enough to start a stir in our nation (in case groups aren't your thing).

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David Paterson
NY Times
money as debt
$700 billion bail out
law
legal absurdity
Marc Faber
fluxlife