Monday, April 25, 2016

Indebted Governments Are
"Destroying The Very Fabric Of Society"
"Thanks to negative interest rates destroying pension funds, we have a tempting pot of money government just cannot keep its hands out of. Governments are turning to 'asset recycling' - which includes even Canada. The federal government of Canada, for example, is looking at a potential source of cash to reduce the cost of government by shifting Canada’s mounting infrastructure costs to the private sector. They want to sell or lease stakes in major public assets such as highways, rail lines, and ports. In Canada, they sneaked in a line hidden in last month’s federal budget which reveals the Liberals are considering making public assets available to non-government investors, like public pension funds. They will sell the national infrastructure to pension funds .. This latest trick is being called 'asset recycling,' which is a system designed to raise money for governments. This idea is surfacing in Europe & the United States (especially among strapped cash States). They are destroying Western Culture because they are simply crazy and people who vote for them blindly are out of their minds. They are destroying the very fabric of society for they cannot see what they are doing nor where this all leads."
- Martin Armstrong
link here to the reference

1 comment:

Anonymous said...

How the Fed ignored the constitution and played favorites during crisis

WASHINGTON (MarketWatch) — The Fed does what it wants and plays favorites. And as a result it’s lost the trust of the American people.

That is the stark view the central bank’s actions in the wake of the financial crisis by Lawrence Jacobs, a public policy expert at the University of Minnesota.

In a new book, “Fed Power, How Finance Wins,” Jacobs, and his co-author Desmond King from Oxford University, lay out their case that the Fed managed to overstep the U.S. constitution by taking giving trillions of dollars in loans to financial market participants. These actions should have been reserved for Congress and offended Main Street, he said. “Elites” in Washington and New York went along with the central bank’s actions believing basically the ends justified the means, they argue.

MarketWatch: You argue the Fed has lost some of its legitimacy and credibility. That’s a big deal for the Fed. Can you explain what you mean?

Jacobs: Everything that I’ve read and studied and analyzed leads me to believe that there is tremendous public doubt and that it has lingered past the initial skepticism about what the Federal Reserve has done [in the crisis.] The issues about the Fed and its credibility are no longer just being questioned by libertarian [Rep.] Ron Paul in the House. It enjoys much wider scrutiny throughout Congress and, among the attentive public. The benefit of the doubt has been lost.

MarketWatch: And that’s because the people view the Fed as not accountable?

Jacobs: I think there are two sources of this decline in the credibility of the Fed. One is a sense that the Fed is unmoored from our system of democratic accountability. It does what it wants. And the second corrosive perception that is now widespread is that the Fed plays favorites. The facilities that it created were tremendous in their scope and they selectively provided benefits of credit during a credit freeze to a small number of banks and non-banks. Meanwhile, Main Street and millions of homeowners were faced with real duress or bankruptcy or foreclosure.