[GJM] Fw: [globalnetnews-summary] A fear of falling Fed credit

[E. Crockett]

--- mary rose <maryrose333 at att.net> wrote:

> 
> ----- Original Message ----- 
> From: "GlobalCirclenet" <webmaster at globalcircle.net>
> To: <globalnetnews-summary at lists.riseup.net>
> Sent: Sunday, May 11, 2008 8:54 PM
> Subject: [globalnetnews-summary] A fear of falling
> Fed credit
> 
> 
> >
> > (To change your settings or unsubscribe please go
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> >
> > Increasing a country's money supply by raising
> debt is unwholesome,
> > bizzare and utterly discredited, but that is how
> it works, which means
> > that when total Fed credit stands still, as it has
> just done, that is
> > worse than bizzare and incredibly unwholesome. The
> ramifications are
> > terrifying. This is what is meant by "doomed".
> (May 8, '08)
> >
> >
> > A fear of falling Fed credit
> > By The Mogambo Guru
> >
>
http://www.atimes.com/atimes/Global_Economy/JE09Dj01.html
> >
> > I woke up in the famous Mogambo Fortress Of
> Paralyzing Fear (MFOPF) just
> > before dawn, bathed in sweat after another
> restless night of nightmares
> > about inflation. The nightmares come in two
> varieties, in case you were
> > wondering. The first variety is that my wife,
> children, family members and
> > creditors are all demanding that I give them more
> and more money, while
> > social workers and judges are standing behind
> them, urging them on, and I
> > am running and running, but I can't seem to get
> away. Over my shoulder I
> > yell, "You'll never take me alive!" and they all
> yell back, "That suits us
> > fine, you Stinking Mogambo Tightwad (SMT)! We just
> want your money!" and I
> > scream and scream and scream at the prospect.
> >
> > The other variety of nightmare is that little
> microbes that look just
> > like Alan Greenspan (former chairman of the
> Federal Reserve whose insane
> > monetary policies have destroyed the dollar and
> the American economy and
> > have condemned us, for One Big, BIG Thing (OBBT),
> to death by inflation in
> > consumer prices, and God knows what all else, too,
> because there will be
> > lots of "elses", all of them bad) are literally
> eating my internal organs,
> > which causes an intense pain in my wallet, and I
> am running from doctor to
> > doctor looking for a cure, but all the doctors
> look like Hillary Clinton
> > shrilly demanding everything I own (probably
> because her bright idea is to
> > come up with more and more unfunded mandates to
> force more and more
> > healthcare providers to provide more and more
> healthcare to anyone who
> > asks for it, whether they can pay or not, which
> they can't, or they don't,
> > which is why they all turn to me to pay for
> everything, which is probably
> > why I am having this nightmare all the damned
> time).
> >
> > But now awake, I brushed the sleep and tears from
> my swollen eyes and
> > yelled into the intercom for somebody to please
> bring daddy a cup of
> > coffee ("Or else!"), when I noticed that it was
> quiet. Too quiet. And
> > anybody who has ever seen an old movie on TV knows
> that when things are
> > quiet, too quiet, it means danger, mostly in the
> form of bullets or arrows
> > suddenly flying your way, at which point you turn
> to your own bullets and
> > arrows, and it's a hell of a tussle from then on.
> >
> > Sure enough, no sooner had I decided that I did
> not have enough bullets
> > and arrows in prepared response to this sudden
> quietude than I discover
> > the reason for the quiet; total Fed credit at the
> Federal Reserve was down
> > by US$4 billion last week! And the total amount in
> this fount of
> > miraculous credit is seemingly stuck at $864
> billion, which is not only
> > down for the freaking week, but is also down since
> last freaking YEAR at
> > this time!
> >
> > My hands shook so much at this news that I dropped
> some bullets and
> > arrows, which is usually a bad thing to happen.
> The reason for my being so
> > startled was that this total Fed credit is the
> magical stuff from which
> > loanable funds magically appear on the books of
> the banks, which is turned
> > into money when somebody borrows it from the bank.
> >
> > That's how the money supply grows these days,
> which means that money
> > literally comes from debt, as unwholesome and
> bizarre as that sounds, and
> > as unwholesome and bizarre as that actually is.
> But this is not leading to
> > one of my Predictable, Loud And Tiresome Mogambo
> Editorials (PLATME) about
> > the absolute stupidity of the fake, fiat money
> that we use as currency, or
> > the sheer preposterousness of allowing the banks
> to act so stupidly in
> > creating so much money and debt, or about sheer
> insanity of disregarding
> > the requirement, per the Constitution, that money
> be only of silver and
> > gold so that money would not lose buying power due
> to over-issuance of
> > money, mostly because that boat has sailed and now
> we are freaking doomed.
> >
> > Instead, this is about the terrifying
> ramifications of not doing it
> > anymore, as seems to be the case, which is where
> we find out exactly what
> > is meant by the word "doomed".
> >
> > In short, once you get started with an idiotic
> economic system like this,
> > debt must never stop growing because everyone owes
> both the money AND
> > interest, and that means that money must never
> stop growing, even if you
> > are just paying the interest that is due this
> money that was borrowed!
> >
> > Therefore, your blood should run cold when you see
> that total Fed credit,
> > the actual source of new dollar debt, is not
> growing. As I was
> > contemplating how my blood got suddenly colder, I
> was taking a long pull
> > from a bottle of really cheap tequila to try and
> calm my ragged nerves
> > about this lack of additional credit thing.
> >
> > It didn't work. I just got sloppy drunk. And I
> dropped the bullets and
> > arrows again, which, fortunately, stopped it from
> being quiet, too quiet.
> > But I am still, obviously, nervous and drunk, and
> for good damned reasons,
> > too. I think I'm going to puke, and for a lot of
> reasons, too.
> >
> > Richard Daughty is general partner and COO for
> Smith Consultant Group,
> > serving the financial and medical communities, and
> the editor of The
> > Mogambo Guru economic newsletter - an avocational
> exercise to heap
> > disrespect on those who desperately deserve it.
> >
> >
> > 
> 
> 
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