Dear [May Be Too Much to my Taste, OK!] Expensive Chairman Ben S. Bernanke,

All of Our Economic Problems Find They Root in the Existence of Credit.

Out of the $5,000,000,000,000 bail out money for the banks, that is $1,000 for every inhabitant of this planet, what is it exactly that WE, The People, got?

If my bank doesn’t pay back its credits, how come I must pay it back mines?

If my bank gets 0% Loans, how come I don’t?

At the same time, everyday, some of us are losing our home or even our jobs.

Credit discriminates against people of lower economic classes, as such it is unconstitutional, isn’t it? It is an supra national stealth weapon of class struggle.

Credit is a predatory practice. When the predator finishes up the preys he starves to death. What did you expect?

Where are you exactly in that food chain?

Credit Stands Up Against Both of All the Principles of Equal Opportunity and Free Market.

Credit is a Stealth Weapon of Mass Destruction.

Credit is Mathematically Inept, Morally Unacceptable.

They Bail Them Out, We Opt Out

Opting Out Is Both Free and Completely Anonymous.

The Solution: The Credit Free, Free Market Economy.

Is Both Dynamic on the Short Run & Stable on the Long Run, The Only Available Short Run Solution.

I Am, Hence, Leading an Exit Out of Credit:

Let me outline for you my proposed strategy:

? Preserve Your Belongings.

? The Property Title: Opt Out of Credit.

? The Credit Free Money: The Dinar-Shekel AKA The DaSh, Symbol: - .

? Asset Transfer: The Right Grant Operation.

? A Specific Application of Employment, Interest and Money.
[A Tract Intended For my Fellows Economists].

If Risk Free Interest Rates Are at 0.00% Doesn’t That Mean That Credit is Worthless?

Since credit based currencies are managed by setting interest rates, on which all control has been lost, are they managed anymore?

We Need, Hence, Cancel All Interest Bearing Debt and Abolish Interest Bearing Credit.

In This Age of Turbulence The People Wants an Exit Out of Credit: An Adventure in a New World Economic Order.

The other option would be to wait till most of the productive assets of the economy get physically destroyed either by war or by rust.

It will be either awfully deadly or dramatically long.

A price none of us can afford to pay.

“The current crisis can be overcome only by developing a sense of common purpose. The alternative to a new international order is chaos.”

- Henry A. Kissinger

You Bail Them Out, Let’s Opt Out!

Check Out How Many of Us Are Already on Their Way to Opt Out of Credit.

Let me provide you with a link to my press release for my open letter to you:

Chairman Ben S. Bernanke, Quantitative [Ooops! I Meant Credit] Easing Can’t Work!

I am, Mr Chairman, Yours Sincerely [Like do I have really the choice?],

Shalom P. Hamou AKA ‘MC-Shalom’
Chief Economist – Master Conductor
1 7 7 6 – Annuit Cœptis
Tel: +972 54 441-7640
http://edsk.org/

And because we dont know what happened with TARP (who got what), is it even legal for some bank owned shadow bank to go out and assume risk?

If a TARP tenticle touches you, you go zombie, no? And banks have been infested with TARP tenticles. And banks have their own tenticles in a lot of stuff…

Anyways to end the rant, I wanna point out something. Black, you posit the idea that the financial system is so warped it will need to be replaced. OK. So why couldnt we let the whole thing collapse in the first place? If rebuilding is what we are to do, wouldnt it have been faster to let the thing burn down to the foundations, rather than patch faulty foundations?

I mean are you with the crowd that says we are in for wheelbarrows of cash to buy a loaf of bread, that gold is king and chickens and goats in the yard are needed?

Or with the crowd of debt free living, cash budgeting and living below your means (with a surplus of means should one’s employment fail) regardless of what comes?

Just curious as I’m fighting this battle in my own household, with the spouse in the first camp and me in the second.

Extra data points and opinions are welcome.

Let the disaster come – I am prepared and will be the stronger because of it.

It’s analogous to what happened to Audi automobiles in the mid 1980′s after 60 Minutes published their false report on “Unintended Acceleration” — you could buy a $40,000 Audi for $5,000 or less. The same thing is going to happen to the distressed assets clogging up the balance sheets of the financial institutions. The people who are still around in 6 months with a few million dollars to spend on bargain-basement properties will be in the catbird seat. Lots of other people will be out of jobs and newly poor, and many will be homeless. Tens of thousands of businesses that should have started will be stillborn, and many others will go under. Those who are hoarding their money right now will make out like kings.

I suppose another deterent to capital might be what AskMeLater allued to, the lack of consumer demand for borrowing, which is in turn draining the assets of production (boat making) of their value. So financing business is not a good proposition for banks either.

So has our economy suddenly out-grown demand? That makes banking a lousy choice for capital.

I estimate 6 months to a year before anyone can start putting some numbers on those assets again. And during that time a lot of people will be foreclosed on. The people who have some money to spend will be buying distressed properties for a fraction of their value six months from now, and two years from now things will be relatively back to normal.

There is then a capital opportunity here. Are there any existing banks that are well-positioned to expand into the breach? Won’t smart capital try to sniff such out before starting from scratch? Are the unkowns on the balance sheet so pervasive that all of today’s banks are by default walking-dead?

There is then a capital opportunity here. Are there any existing banks that are well-positioned to expand into the breach? Won’t smart capital try to sniff such out before starting from scratch? Are the unkowns on the balance sheet so pervasive that all of today’s banks are by default walking-dead?

Many business owners will get in line looking for a handout now that the money party has started. Without the responsiblity to actually run a business for profit it will become a race to see who can grab the most Federal dollars before the plug is pulled.

Right now it looks the floodgates are open at least until 1/20/2013

Only this time the crony interests are, as you note, foreign powers like China and Saudi Arabia. Those left holding the bag are the American citizenry and our children, who will suffer a lower standard of living in some form or another (either runaway inflation or confiscatory taxation or both).

Or dictatorship will arise amidst the economic disruption, as almost happened in the 30′s. And then all bets are of.

And the second elephant in the room is what happens when terrorists start blowing up parts of our country on a more frequent basis than once. It’s hard to reconstruct an “economy as usual” amidst all that uncertainty and danger.

The example I gave about the boat place was just one. Almost every night in Nashville news, there are at least one or two reports of manufacturing places that are laying off workers. Dupont laid off a third of its workforce in East Nashville yesterday as well. And these kinds of layoffs affect all kinds of small businesses close to the factories and neighborhoods where the workers live.

A report on the news last night featured a pretty little reporterette who lead off with this, “The residential real estate market has taken a large downturn over the past few months. Could commercial real estate be next?” Duh, ya think?

But in an intuitive way, you’ve identified the other side of the problem. There’s more to the economic weakness than credit unavailability. There’s also a lack of *demand* for credit.

It should be no surprise that consumers who have just taken a huge hit on the value of their homes (and are still paying every month based on a much higher value, which is deflation by another name), and have taken a 40% or bigger hit on their 401(k) plans, are in no mood to be buying luxury vacations, new cars, or anything discretionary at all.

And businesses, sensing the falloff in consumer demand, are scaling back expansion and investment plans, which reduces their demand for credit as well.

The answer is not simple. As the downturn worsens the government will only turn more desperate and do the wrong things for the wrong reasons. Obama does not give the business community any hope as he throws his socialists ideas to the walls to see what sticks.

Obama does not understand the capitalist system and has been trained his whole life to change our system. It will take a severe
depression with 25% – 35% unemployment before enough Obama supporters get it.

It will take 4 years of pain & suffering for many Americans to realize how good they had it. And they won;t be able to blame it all on Bush.
We need the antithesis of Obama right now – but America is too blinded by the aura of the ONE to see that.