Comments on: Trillions of Dollars of Mortgage-Backed Securities Waiting to Unravel Worldwide: they’re 80% illegal, so “let ‘em all rip;” sometimes you have to break a few eggs to make an omlette, and if the eggs are rotten, throw them out…. http://charleslincoln3.wordpress.com/2008/08/19/trillions-of-dollars-of-mortgage-baceked-securities-waiting-to-unravel-worldwide-theyre-80-illegal-so-let-em-all-rip/ My Life Fighting Judicial Corruption and the Political Subversion of Freedom; keeping in mind Winston Churchill's words: ""All the great things are simple, and many can be expressed in a single word: freedom, justice, honor, duty, mercy, hope" Wed, 30 Dec 2009 23:22:57 +0000 http://wordpress.com/ hourly 1 By: August F. Arace http://charleslincoln3.wordpress.com/2008/08/19/trillions-of-dollars-of-mortgage-baceked-securities-waiting-to-unravel-worldwide-theyre-80-illegal-so-let-em-all-rip/#comment-265 August F. Arace Sat, 27 Sep 2008 15:27:37 +0000 http://charleslincoln3.wordpress.com/?p=124#comment-265 I have been in the investment business for 53 years. The US has a defective money system that allows the monetization of debt. It is inherently inflationary. I am not a credential economist. However, I saw that the debt problem was the federal government's in the 1960 and 1970's. With the floating money system the debt problem became the private sector's this time. The only way to stop a debt problem from occuring in the future, being government or private sector is to get rid of the Fed, value the US gold holdings to the market, no $42.20 per ounce, put money supply growth a 2.5-3% per year and leave it there no matter what, and let the private sector sort out its own financial problems. Roubini is right. People will not let that happen because it is a matter of power and whose hands it is in. The whole problem is a collective people problem. People as a whole, are not rational enough as yet. Only when that happens, if ever, will these errors of judgement ever become a thing of the past. Roubini may have the facts and figures to "prove" the US financial system was heading for trouble. But any person with enough common sense and self-discipline could see it coming a mile away. It was a matter of when, not if. Now, the Fed and Treasury are going to rely on the same old pancea to "save" the system and "solve" the problem, monetize debt and even equity like crazy. It's too much debt that got us into this situation in the first place. How does creating more of it and monetizing it besides make it better? Respectfully August F. Arace I have been in the investment business for 53 years. The US has a defective money system that allows the monetization of debt. It is inherently inflationary. I am not a credential economist. However, I saw that the debt problem was the federal government’s in the 1960 and 1970’s. With the floating money system the debt problem became the private sector’s this time.

The only way to stop a debt problem from occuring in the future, being government or private sector is to get rid of the Fed, value the US gold holdings to the market, no $42.20 per ounce, put money supply growth a 2.5-3% per year and leave it there no matter what, and let the private sector sort out its own financial problems.

Roubini is right. People will not let that happen because it is a matter of power and whose hands it is in. The whole problem is a collective people problem. People as a whole, are not rational enough as yet. Only when that happens, if ever, will these errors of judgement ever become a thing of the past.

Roubini may have the facts and figures to “prove” the US financial system was heading for trouble. But any person with enough common sense and self-discipline could see it coming a mile away. It was a matter of when, not if.

Now, the Fed and Treasury are going to rely on the same old pancea to “save” the system and “solve” the problem, monetize debt and even equity like crazy. It’s too much debt that got us into this situation in the first place. How does creating more of it and monetizing it besides make it better?

Respectfully

August F. Arace

]]> By: Kevin Morton http://charleslincoln3.wordpress.com/2008/08/19/trillions-of-dollars-of-mortgage-baceked-securities-waiting-to-unravel-worldwide-theyre-80-illegal-so-let-em-all-rip/#comment-250 Kevin Morton Tue, 19 Aug 2008 23:01:26 +0000 http://charleslincoln3.wordpress.com/?p=124#comment-250 When I read the transcript of what Roubini really said in his September 2006 IMF talk, I was amazed to find how many outright falsehoods the Times piece contained -- it's really a puff piece for Roubini. For example, far from predicting the oil shock, Roubini actually predicted that oil prices would fall! Take a look at the transcript: http://www.businesscycle.com/news/press/1643/ When I read the transcript of what Roubini really said in his September 2006 IMF talk, I was amazed to find how many outright falsehoods the Times piece contained — it’s really a puff piece for Roubini. For example, far from predicting the oil shock, Roubini actually predicted that oil prices would fall! Take a look at the transcript: http://www.businesscycle.com/news/press/1643/

]]>