Thursday, August 19, 2010

Yoga-nomics: What's going on?

  Yoga is arguably about integration. Aside from a misunderstanding in America about what exactly is integrated, we also have a lack of understanding about the way our monetary system is integrated into the fabric of our lives. We can do so much good with an intelligent awareness of how things actually are and operate.

Hopefully, you will be interested in learning more.

I've been working on a large scale article on money but as things unfold have decided to simply write about the situation. Having just read Secrets of the Temple, the politics of money are more in my mind. By politics of money I mean who benefits and who looses by the actions of government agencies.

Banksters work without guns but take wealth from borrowers

Here's one view, that I think accurate, of the current situation: the policy has been to create a “workout” time line for large banks to “earn” their way out of balance sheet problems.

The problem with this approach is, of course, that the Federal deficit basically funds the “earnings” of the banks. The FED provides new money that the banks can borrow at near 0% and the banks then buy Treasuries that pay higher interest rates. The “earnings” that the banks get from this “carry trade” process is achieved by the further indebtedness of the citizenry through the increased national here for full article
So, the banks are sitting on piles of borrowed money and buying financial paper (treasuries) to increase their wealth as a way to get out of the massive bad loans they have. But it's our money that they are borrowing and re-investing! In this way they take from the poorer tax filers and keep the interest income. Oh, and they do keep any money that comes in on old loans to boot.
My hope is that enough people will start to learn about how all this works. We are in the midst of a horrible situation: "... even when we adjust for inflation and normalize to population, this crisis is orders of magnitude larger than anything else in the past in financial terms, including the Great Depression. As much as we criticize actions taken, there are lots of worse conditions we could be in right now. The size of the financial system catastrophe is of historic proportions and we are still alive." here for details and here

I'll be posting more on this topic in the near future.