Book Review – Web of Debt

Given that the current system has failed, I feel we should regard Web of Debt by Ellen Brown as our blueprint and bible for economic justice and salvation. If crisis prevents you from reading the whole book, you can read the last chapter ("Over the Rainbow"), or perhaps the last section ("Vanquishing the Debt Spider") to get a summary of the recommended action items. If the economy collapses before we can solve the problem politically, chapter 36, ("The Community Currency Movement") offers some ideas on how to fight back.

In a nutshell, the solution to our credit crisis is to simply reclaim our sovereign right as a free nation to issue our own money. Another important piece of the puzzle is to establish a "basket of commodities" standard index, somewhat like the Consumer Price Index, as a yardstick for exchanging national currencies. This helps protect third-world countries from short-selling and other manipulations which can force down the prices of their goods and services. Our enemy is the private banking cartel. If JPMorgan Chase and Citibank are insolvent, they belong in receivership.

Barkley is a fearmonger

I will probably vote for Bill McGaughey of the Independence Party, but not Dean Barkley. Barkley fearmongers the national debt, when really we just need to monetize it. We just need to reclaim our sovereign right to issue our own money. We just need to make our Federal Reserve truly Federal, and pay off interest-bearing bonds with interest-free dollars. By hyping the fear surrounding the national debt, Barkley plays into the hands of the private banking cartel.

No endorsement from MN IP

No endorsement from Minnesota Independence Party

http://www.startribune.com/politics/33310209.html

In response to the article, here’s what I wrote online in the reader comments:

I’m supporting Cynthia McKinney of the Green Party, and I want to thank the IP for having us yesterday. Since there was no endorsement, I want to encourage IP members to vote for Cynthia November 4. With Dean Barkley at 18%, and Obama leading by 14%, I know you have the votes to help us get our 5%! That would give us ballot access and public subsidies. Sure we would compete with you, but having more voices and choices only helps make the case for Instant Runoff Voting. And we’re allies on many issues. Your presenter listed single payer, nuclear power, and impeachment as differences, and that was all. Will you vote for Cynthia McKinney and Rosa Clemente November 4?

Bob Barr is a Weasel

Why won’t Bob Barr debate Cynthia McKinney? Is it because she’s black? Does he have a patriarchal approval addiction? On Bill Press this morning he was crying and whaling because Ron Paul didn’t endorse him. Actually Ron Paul did. Barr just didn’t want to share the endorsement with McKinney, Nader, and Baldwin. So, like a spoiled baby, he didn’t show up for the joint press conference. And now he’s saying he won’t debate unless he can be alone with Nader. Is Barr afraid that people will see that Libertarianism equals deregulation equals chaos? I don’t think he’s unifying with us against the corporate parties and the Robber Baron bankers that got this nation ten trillion dollars in debt. Maybe Bob Barr is still too Republican. What a weasel.

MINNESOTA IS NOW SAFE

According to a Minnesota Public Radio News Humphrey Institute Poll, Obama now leads McCain by 14 points.

This means that 5 percent of Minnesotans can "safely" vote for Cynthia McKinney and Obama will still beat McCain by at least 9 points.

In Minnesota, 5 percent means major party status, which gives the Green Party guaranteed ballot access, public campaign subsidies, debate invitations, and media attention.

I watched last night’s presidential debate in a theater filled with Democrats, and even they cheered at this audience question:

"How can we trust either of you with our money when both parties got -- got us into this global economic crisis?"

The Democrats and Republicans didn’t warn you the corporate banks would play casino with your retirement.

The Green Party of Minnesota and its endorsed candidates accept no contributions from corporations or political action committees (PACs). For more information about the Green Party, visit www.gp.org.

Web of Debt!

"Web of Debt" might be the answer to the credit crisis:

http://www.webofdebt.com/

The basic idea is we can fix our problems if we let government create money instead of the private banks. When money is borrowed into existence with interest, the interest has to come from somewhere, and guess what, it requires more borrowing! Why are we borrowing all our new money from a bunch of old men? Reset the debt!

Top Obama Contributors

Lots of big banks on this list...

Cynthia McKinney Debate Responses

On the Economic Crisis - (not actually a debate response)
http://www.youtube.com/watch?v=fvOpvh_zy3M

Our Biggest Lesson from the war in Iraq
http://www.youtube.com/watch?v=F2G3TYo8TT8

How do you view the US's relationship with Russia
http://www.youtube.com/watch?v=zGciL71M5_k

Cost of Financial Recovery
http://www.youtube.com/watch?v=dtpW10qHlac

Responds to Obama on sending troops into Afghanistan
http://www.youtube.com/watch?v=LeuACTylIJQ

Why should the people of the United States vote for you
http://www.youtube.com/watch?v=I-o6718XVA0

Shot by Don DeBar

5,000 suspected executed

What's missing from the bailout

Restrictions on hedge funds, derivatives, and credit default swaps. Not sure about marked-to-market and short selling.

Big Eddie had an awesome caller Wednesday. She talked about credit default swaps, how the Fed bets that people will default on their mortgages, and if they don’t, the Fed doubles down. Then she chastised Ed for his previous guest, Sen. Kent Conrad, who said he had met with some experts and was privy to secret information about the crisis. And then she said that secret information is $63 trillion in credit swaps, and went on to say that the rich have done this to us in 1825, 1873, and 1929. Not sure how much of it is true but it sounded awesome.

Jim Sinclair mentions $1 quadrillion ($1,000,000,000,000,000) which is the biggest number I’ve seen so far:

http://www.godlikeproductions.com/forum1/message560376/pg1

I’m starting to consider that the problem may not be inflation. Money supply increases may be more than offset by credit contractions…

http://globaleconomicanalysis.blogspot.com/2008/04/deflation-in-fiat-regime.html

One caller to MPR Tuesday said that the $700 billion is only 1% of what we need, and that it would only last us a month. The host said she had somebody on the show that had said the same thing. The deflation article above talks about worldwide credit swaps topping $62 trillion. I’m not sure what those are, but with numbers that big, to me it sounded inflationary. But maybe not if the money vanishes because people can’t pay their debts.

To try to put things into perspective…

$1,144,000,000,000,000 = notional value of derivatives outstanding
$62,000,000,000,000 = worldwide credit swaps
$59,100,000,000,000 = US debt held by public including Medicare, Medicaid, Soc. Sec., etc.
$12,000,000,000,000 = size of US mortgage market
$10,000,000,000,000 = size of US economy
$9,700,000,000,000 = size of federal debt
$6,000,000,000,000 = size of US mortgage market owned or guaranteed by Fannie Mae and Freddie Mac
$5,600,000,000,000 = level 2 and 3 assets held by 8 largest holders this Spring
$700,000,000,000 = proposed bailout amount
$559,000,000,000 = cost of war
$410,000,000,000 = annual US budget deficit projected for 2008
$162,000,000,000 = annual US budget deficit 2007
$147,600,000,000 = cost of war per year, Iraq + Afghanistan
$12,300,000,000 = cost of war per month, Iraq + Afghanistan