UKRAINE PARLIAMENT VOTES TO STIFF CREDITORS AND DEFAULT ON THEIR BOND OBLIGATIONS!

Today, Yahoo reported on the Ukrainian's parliament decree to stiff their creditors by $3.8 billion, defaulting on that debt. By propaganda, the report calls this default, "a restructuring agreement...[to keep Ukraine]...from falling into an unmanaged default." Elsewhere in the story, the writer refers to the default as a "20-percent debt write-down". Even the headline is pure propaganda — "Ukraine parliament backs crucial debt write-off deal."



The action by the Ukrainian Parliament is typical of lawgivers. They have no respect for property — the right of ownership — in this case the property collecting debt in full over time, or that, which we all call credit.

And people wonder why economies go bad and they live through hard times. Most live by superstition, believing in a slew of myths as to why economies go bad. Almost always, they accept stories by politicians who blame businessmen. In reality, it's lawgivers who devise the rules and who change the rules by which people trade their property while in pursuit of profit.

If you owed Mary $100 and paid only $80 back, you stiffed Mary of $20, or 20%. You defaulted on the deal made with Mary for $100.

In your mind, you might believe Mary is lucky to get even $80. However, Mary banked on getting $100 from you. Now, her life changes to the worse because she trusted you and you stiffed her.

If you owned Sally and Suzy $100, owing Sally $80 and Suzy $20, and you paid Sally 100% and Suzy 0%, you still defaulted, but only to Suzy. The net effect is the same as if you only owed Mary.

Paying Sally in full keeps you in good standing with Sally. However, as in the Mary example, you have harmed Suzy. Sally should be wary of you for her own sake going forward. So too should anyone else you approach to enter into credit relationships.

Can you imagine if it were this easy for you, that every time you borrowed on credit cards, home equity lines of credit and the like and if you were to find yourself with weaker cash flow, you could force your creditors into bargining what you would call a "write down" but which is in fact, you defaulting on your deal?

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THERE STILL IS NOT A RECOVERY SEVEN YEARS LATER. HERE IS WHY, PARTLY

Economists seem slack-jawed to explain why there has been little in the way of a recovery after seven years of Bernanke-Yellen near zero interest rate policy (ZIRP) along with the crazed sum of cash accretion owing to Bernanke's failed academic exercise of Quantitative Easing.



As can be seen in these charts, in True Dollars™, disposable personal income is way down. Likewise, wages and salaries are way down.








And it should be no surprise that consumer credit has fallen as all credit in the has fallen substantially. That great deflation is resultant of the first cause, the Greenspan-Bernanke Great Inflation, the greatest credit bubble in the history of mankind.






Most academician eggheads in the field of economics believe that many Americans paid off their debts in what they call merely a "recession,"  as if it were an ordinary recession. So these eggheads wonder why Americans aren't now spending since also they believe a recovery has been underway since 2009.

And these two charts say thousands of words. While both incomes and credit have fallen, Americans have taken on ever more credit to maintain semblance of the lifestyle they once enjoyed during the boom phase of the Greenspan-Bernanke Great Inflation, the greatest credit bubble in the history of mankind.






Consumer indebtedness has increased during the Greatest Depression. That should surprise no one. First Bernanke and then Yellen made borrowing cheaper than acquiring income. And as massive unemployment pushed wages downward, those with income falling at a slower than credit opted for credit to make up for their buying power shortfall.

Falling true incomes and rising true indebtedness is a recipe for disaster.

Many call the day after Thanksgiving in the USA, Black Friday, because it is the day retailers are supposed move from losses to beyond breakeven and thus enter black into their accounting ledgers rather than red for losses. Don't count on it this Christmas retail shopping season.  I wonder if bears plan to short major retailers soon.

It doesn't seem likely that Americans can take on much more debt prudently.

For more of why, check out ZIRPED! BERNANKE AND NOW YELLEN HAVE FELLED CAPITALISM. VOLKER WAS RIGHT ON HOW TO DO IT.

I happen to live in a fairly well-to-do city, which happens to be home to a big biotech firm. Since the Banking Crisis of 2008 and the subsequent reckoning of the Greatest Depression, even my city has been touched. Seedy massage parlors popped up all over the main shopping boulevard like festering sores. Some have taken to living in illegal RV parks hidden behind fences on larger parcels.

The Greatest Depression keeps rolling along.

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U.S. CONGRESS HAS CROSSED THE RUBICON, DEBT 100% OF GDP, FOR REAL.

The country's debt, the national debt, America's debt — these are some of the trickster phrases politicians and their apologists say to disguise the true name, the United States Congress' debt.

Even the writers of the Constitution of the United States of America were quite clear as to who is responsible for taking on debt and paying off debt.

Interestingly, those who agreed to the Constitution never agreed that Congress has the power to borrow bank credits. Rather, they were quite explicit that Congresses only could borrow money, which is coined metal by weight and fineness.

Even clause 5 of Article 1, Section 8, fully clarifies what the writers of the Constitution believed. They believed money to be coined metal, which needed to be weighed and the metal content measured.

• The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts ... [Article 1. Section 8. Clause 1.]
• To borrow Money on the credit of the United States. [Article 1. Section 8. Clause 2.]
• To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; [Article 1. Section 8. Clause 5.]

So all of that debt the various Congresses have accumulated by selling bonds for bank credits well, all of that debt has been accumulated in violation of the Constitution various Congresses swore oaths to uphold.

In INFLATION REVEALED! "REAL GDP" AND FEDERAL RESERVE BANK UNITS, I explain the concept of Federal Reserve Banking Units (FRBUs). FRBUs give the best tool to measure inflation. Inflation arises from banking and nothing else. 

As can be seen, true spending of Congress in terms of buying power as measured by FRBUs is slightly above what the Congress of 1993 spent. Tax collection today is slightly above that 1993 Congress.

From 1992 through 2000, the Congresses during the Clinton years did a bang up job of pushing to cut deficits while increasing spending and tax collection.




Congress began their march to cross over the point of no return back in 2008 and at last crossing over by October 2012.







So which president signed into law congressional budgets from the most fiscally responsible congresses comparatively speaking?

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HOOVER DIDN'T SPEND ENOUGH! A MEME BORN IN A VACUUM, EMPTY OF REALITY, BELOVED BY THE FOOLISH EVERYWHERE.

Once again in my life, I came across the oft-parroted false meme "Fretting over its cost when capital and labor are plentiful is Hebert Hoover economics," which is another way of saying Hoover didn't spend enough. Today, I read that expressed foolery over at Bloomberg.com.

In case you don't know, Herbert Hoover was President of the United States between the years 1929 and 1933. Hoover is the guy the Ph.D. priests of Academia Economics like to blame for the Great Depression rather than the guy they should, President Franklin Delano Roosevelt. 

Of course, Roosevelt was president who criminalized money by confiscating gold from Americans, and thus the guy who forced Americans into the legal tender cash system of the Federal Reserve.

Owing to party politics, Hoover nailed the job as the U.S. Secretary of Commerce under President Calvin Coolidge. President Coolidge said of the chronic meddler Hoover, "That man has offered me unsolicited advice every day for six years, all of it bad." 

Of course all should realize that Congress and not any President decides spending; and that Hoover signed in law massive spending increases during his term in office.

According to the Office of Management and Budget of the U.S., Hoover inherited the 1929 budget from Congress, which decreed federal spending at $3.1 billion. In the following years, Hoover signed into law, spending that increased to $3.3 billion in 1930, $3.6 billion in 1931, and $4.7 billion and $4.6 billion in 1932 and 1933. Over his four years, Hoover increased spending a whopping 48%! As a percentage of GDP, Hoover agreed to almost triple spending between 1929 to 1933, from 3.64% to nearly 9%!

Throwing out the crazy 1862-1865 war spending of the war-mongering Lincoln and the 1918-1919 war spending of the war-mongering Wilson, between 1792 and 1929, average Congressional spending as a percentage of GDP calculates to a scant 2.62%.

Taken from the National Bureau of Economic Research, Wikipedia lists 33 recessions after 1792 start with the Panic of 1797 up until the Great Depression. 


There is no correlation between Congressional spending and whether Americans experience recession or expansion in their economy, none. Recessions hit both after periods of increasing spending by Congress as a percent of GDP and decreasing spending as a percent of GDP. 

Recessions are periods of reckoning after the growth of credit outstrips the growth of output owing to credit being priced too cheap, or that which we call inflation, and profits fail to materialize. When enough discover that receivables cannot get collected and payables cannot get paid from income on sales — the profit squeeze — crisis arises.

Many come to see they cannot afford to stand losses formerly sustained in lines of business and thus shutter those lines. Efforts get underway to kill off all those firms unworthy of credit and whose existence constitute a standing menace to legitimate business enterprises.

Recessions are resultant of bad credit practices, especially by bankers. The residential realty bubble of the 2000s is a period of inflation that led to widespread bankruptcy because enough became incapable of servicing debt owed on extended credit.

The speculative expansion of inflation leads to the need to adjust credit lower through forced credit liquidation, which results in declining valuation of assets and a lessening ability to meet outstanding credit obligations. 

Academician economist priests all preach in their Temples of Academia that government spending is the key to bettering an economy.  However, they state their claims upon the false premises — utility and scarcity — of the pseudo-science of economics. 

Paul Krugman, the public face of the Economics Temple of Academia forever pushes the false Hoover meme to support his false beliefs that increased government spending is the key to a better economy. If Krugman's claims were true, then how can Krugman explain why between 2007 and 2014, Congressional spending as a percent of GDP has averaged 21.65% and yet most Americans have seen no improvement in their financial affairs.

In WHY IS THE ECONOMY SO HORRIBLE? BECAUSE ACADEMIA ECONOMICS IS FAKE, I reveal property and profit as the basis of all trade, also said as commerce, or what is authentic economics. 

In the end, credit is the means by which property, which is the right of ownership and never the thing owned, gets called into existence. When more property gets called into existence than profits arise for which to pay for new property, the debt duty owed to credit cannot get paid.

So why does inflation happen? Well, YOU LIVE AT THE MERCY OF A CLOWN-CAR DRIVEN BY MEN AND WOMEN OF THE FEDERAL RESERVE. 

And what is the fix for this? Well, WHY FUTURES MARKETS SHOULD SET THE FEDS FUNDS RATE RATHER THAN THE FEDERAL RESERVE BOARD OF GOVERNORS

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WHAT IS 12 TRILLION DOLLARS?

Quick video to get your head around ONE TRILLION DOLLARS and then what is 12 TRILLION DOLLARS

It's under two minutes and well worth every penny of your time to watch.

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