Uncomfortabel US Financial System Facts for Tomorrow's Future Salon
- Hi Futurists,
Blog post with links: http://www.futuresalon.org/2010/11/uncomforttabel-us-financial-system-facts.html
On Friday I was listening to Democracy Now and had a driveway moment. I was already at my destination, but sat in the car to listen to the eye opening conversation between Amy Goodman and her guest:
Michael Hudson, President of the Institute for the Study of Long-Term Economic Trends, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of "Super-Imperialism: The Economic Strategy of American Empire."
A friend of mine had a striving growing small import business and quit this year because he wasn't able to get credit to stay afloat. It was really unfortunate, that the truckloads of stimulus money didn't reach him.
I was wondering where all this money is going. What are the bankers doing with it, if they don't lend it out to stimulate the economy? Michael Hudson on Democracy Now explained it:
"The actual banks have lent less today than they did in 2007. So the money is going abroad. And it's going abroad not really to buy foreign companies so much, but to speculate in currency.Now, the Fed and the Congress, two weeks ago, said, "We want China to raise its currency by 20 percent." This would create billions and billions of dollars of bonanza for Wall Street banks, and it would enable them to earn their way out of debt by essentially looting the China central bank, the Brazilian central bank, the Turkish central bank and the other central banks, because you can now borrow money in America at one percent. So you'd put down, let's say, a billion dollars of your owna million dollars of your own money, borrow $99 million of the bank's moneythat's $100 million. You would buy Chinese currency, RMB, for $100 million. You then say, "Raise your currency by 20 percent," which is what the Fed has asked them to do. That means that your million dollars now has turned into a $20 million gain, because $100 million is now worth $120 million. You've made a 200 percent profit. ...
If the Fed's policy works, then housing prices are going to go back up so high that most consumers are going to have to pay 40 percent of their income for housing. They're going to have to pay more money for credit card debt. The purpose is to help the banks make money at the expense of the economy. ...
These people should be in jail, and you shouldn't bail them out. You're keeping the debt that was run out by the junk mortgages and the fraudulent lending, you're keeping that in place, pricing American labor out of the market, and making it impossible for America to earn its way out of debt. ..."
These are some of the hard facts that we are going to discuss tomorrow Monday the 8th of November at our Future Salon: Our Financial System: Facing Hard Facts, Creating Positive Futures with Catherine Austin Fitts from Solari.com.
There has to be a better way and with Catherine Austin Fitts' background in the federal government under Bush the first and Wall Street as investment banker as well as all of our background in technology and community, I am convinced, that we will come up with solutions that will create positive futures with resilient sustaining communities. This is why I am very excited about our dialog tomorrow 6pm (networking 7pm talk) at SAP Labs in Palo Alto. Yes we are webcasting and recording the session: https://sap.na.pgiconnect.com/fs/ You can join the dialog in the online chat. Last month we had at times 14 people online.
Future Salons have the following structure: 6-7pm is networking with light refreshments proudly sponsored by SAP; 7-9+pm presentation and dialog. Please RSVP http://bit.ly/bOFiX5
SAP Labs North America, Building 1, Room: Southern Cross. SAP is located at 3410 Hillview Avenue, Palo Alto, CA 94304[map]. Free and open to the public.
Spread the word. See you tomorrow, Mark.