Money & Music & Bubbles

The spending monkeys in Congress in pursuit of reelection and mission creep passed the Federal Reserve Act Of 1913. The goal of the Act was "... to provide a ready reserve of liguid assets in case of financial panics". The term "liquid assets" was a clue to the intended or unintended consequences of the Act-I.E. BUBBLES FORM FROM LIQUIDS.

Interestingly in 1919 the song " I'm Forever Blowing Bubbles" was composed by Jaan Kenbrown and John Kellette.
Partially, it went like this:

"Im forever blowing bubbles,
Pretty bubbles in the air,
They fly so high, nearly reach the sky,
Then like my dreams they fade and die"

In 1958 Stan Freberg composed a send-up of Lawrence Welk. The song was titled " Wunerful, Wunerful".

The song ended with this phrase:

"Help! Help! Wunerful,Wunerful
turn off the bubble machine. Help! Help!"

Monkeys shouldn't use money. It has the disastrous effect of multplying their greedy traits.

Why Do We Need Banks?

Today Federal Reserve Chairman Ben Bernanke was pleading for more money. He said banks need more capital if the economy is to recover.

Why do we need banks? What's their value-added? Let them fail. They use other peoples assets and skim more than their fair share for themselves. So why not eliminate these bad managers and their stockholders who can't be trusted and let people be responsible for their own assets? I'm sure people can more carefully protect their assets than the over-paid predators that run our banks. Individuals can loan people money and collect interest just as easily as a bank can. And if they can't, then that's their own problem.

There is way too much financial linkage between people. By definition that linkage grows till it fails because of it's unwieldly size. Time for a new paradigm. I suggest a barter system. Let's get rid of the parasites like the greasers in government and Wall Street that script Bernanke's message.

"Too Big To Fail ": Not True

When a politician says ," It's too big to fail", what he means is ," My part in the scheme of central planning has turned up another losing result that if allowed to fail will cost me and my fellow politicians our jobs. ". Like the communists, socialists and aristocracies of ancient history the U.S. has become a costly central planning nightmare.

" It's too big to fail" also means we are too lazy or too dumb to change. " Too big too fail" also means that money is the ultimate goal. And so today the Federal Reserve announced an additional $800 billion bailout and government guarentees . This is targeted to backing credit cards, student loans and toxic mortgage purchases. And how will the government pay for all this? The printing press will be smoking.

It's not that easy. The outcome will be a falling dollar and at some point hyperinflation will come around. The foreign buyers of our debt are already looking elsewhere.