US (Wall Street) Treasury Issues Buck Recall (Onion Satire)

[petertribo]

http://www.theonion.com/content/vide...artment_issues

If the above recall of US cash seems outrageous and over-the-top, check out this item from Mike Shedlock wherein he discusses a contemplation by HARVARD Professor Mankiw on yanking 10% of US currency by a lottery:

At one of my recent Harvard seminars, a graduate student proposed a clever scheme to [make holding money less attractive].

Imagine that the Fed were to announce that, a year from today, it would pick a digit from zero to 9 out of a hat. All currency with a serial number ending in that digit would no longer be legal tender. Suddenly, the expected return to holding currency would become negative 10 percent.

That move would free the Fed to cut interest rates below zero. People would be delighted to lend money at negative 3 percent, since losing 3 percent is better than losing 10.

Of course, some people might decide that at those rates, they would rather spend the money — for example, by buying a new car. But because expanding aggregate demand is precisely the goal of the interest rate cut, such an incentive isn’t a flaw — it’s a benefit.

Good to know, Harvard is teaching all those potential perps about clever schemes.

http://globaleconomicanalysis.blogsp...policy-of.html

So, maybe time to forget about stability and norms, and begin to contemplate the wacky, crazy, confiscatory things Government and their Elites do when things get desperate and fall apart. It ain't bizness as usual; a clever scheme could be coming to a neighborhood near you.

[rjwjr]

Re: US (Wall Street) Treasury Issues Buck Recall (Onion Satire)

So, maybe time to forget about stability and norms, and begin to contemplate the wacky, crazy, confiscatory things Government and their Elites do when things get desperate and fall apart. It ain't bizness as usual; a clever scheme could be coming to a neighborhood near you.

On a related note, here's a quote from the recent Shadow Governtment Statistics newletter from John Williams in speaking about the administration and the related entities, "With the financial crisis remaining a threat to national security, almost anything remains possible in the arena of data and market manipulations."

Also, the movie Schindler's List was on HBO recently and I watched it again a few nights ago. It was interesting to watch it under the context of the current economic situations and to draw parallels to the nazi confiscation of Jew's assets. I know it's just a movie, but I believe Spielberg, thru hundreds of interviews with survivors, attempted to be quite historically accurate (from the Jewish perspective obviously). Some observations...
1] Amazing how much denial existed amongst the sheeple, even during worsening treatment and a seemingly obvious eventual result. Relevance: The vast majority of the population are not/will not be prepared for this worsening crisis. The talk about guns, keeping a low profile, moving out of cities, etc. is likely NOT overdone in today's environment.
2] The stockpiling and hiding of barter-able assets was a huge advantage. This included the obvious alcohol, cigarettes, jewelry, but it also included some luxuries that were extremely scarce, thus making them sought-after; chocolate, caviar. Relevance: If you're stockpiling the typically-discussed items (whiskey, ammo, canned goods), you may also want to think outside the box to a few "luxury" items that may have surprisingly high relative barter value in a shortage (during the Argentinian crisis recently, I read that razor blades became a sought-after luxury).
3] It's a great movie and a sad story, but it's a story about the people that didn't prepare or act properly, in spite of plenty of opportunity and plenty of resources in many instances. There is no movie needed about the smart/logical/observant ones that fled well in advance of the impending catastrophy. Relevance: Buy and hold physical gold, move some money outside the US, keep you powder dry, be ready and prepared to act early and swiftly. It's a new paradigm, peeps, and our government is likely to say anything, try anything, and take actions currently deemed unthinkable (90% top tax rate, confiscation of IRA/401k accounts like in Argentina recently, large tangible tax on existing assets, who knows?).

[petertribo]

Re: US (Wall Street) Treasury Issues Buck Recall (Onion Satire)

It's a new paradigm, peeps, and our government is likely to say anything, try anything, and take actions currently deemed unthinkable (90% top tax rate, confiscation of IRA/401k accounts like in Argentina recently, large tangible tax on existing assets, who knows?).

I have often thought of Schindler's List as a good example of where we may be and are going.As I recall, the NAZI Officers were right there at the Plant (GM, BANKS) to check up on things.

In connection with the thirteen year quick Disaster wrought on Germany, I think the ultimate books are I Will Bear Witness (1933 to 1941) and To The Bitter End (1942 to 1945) by Victor Klemperer. Klemperer was a Prof of Literature so he understood language and propaganda and he documents its use and the daily struggles of existing in the Third Reich. I have read a lot of these books and his are the best. Absolutely shocking. As far as Propaganda, we are far beyond the NAZIS in technique and volume.
http://en.wikipedia.org/wiki/Victor_Klemperer

(You probably already know of IBM AND THE HOLOCAUST which documents how one of America's great corporations helped to install the business systems to round up the NAZIS' victims.)
http://www.ibmandtheholocaust.com/