Elect a New Congress

Here’s an excellent article from John Aziz that I found on Zerohedge.com

From John Aziz of Azizonomics

Does Easy Monetary Policy Enrich The Financial Sector?

Yesterday, I strongly insinuated that easy monetary policy enriches the financial sector at the expense of the wider society. I realise that I need to illustrate this more fully than just to say that when the central bank engages in monetary policy, the financial sector gets the new money first and so receives an ex nihilo transfer of purchasing power (the Cantillon Effect).

The first inkling I had that this could be the case was looking at the effects of quantitative easing (monetary base expansion) on equities (S&P500 Index), corporate profits and employment.

While quantitative easing has dramatically reinflated corporate profits, and equities, it has not had a similar effect on employment (nor wages).

However there are lots other factors involved (including government layoffs), and employment (and wages) is much stickier than either corporate profits or equities. It will be hard to fully assess the effects of quantitative easing on employment outcomes without more hindsight (but the last four years does not look good).

What is clear, though is that following QE, financial sector profits have rebounded spectacularly toward the pre-2008 peak, while nonfinancial sector profits have not:

Yet it is not true that in recent years the growth of financial profits or financial assets has been preceded by growth in the monetary base; the peak for financial profits occurred before QE even began. In fact, the growth in the monetary base from 2008 reflects a catching-up relative to the huge growth seen in credit since the end of Bretton Woods. During the post-Bretton Woods era, growth of financial assets in the financial sector has significantly outpaced growth of financial assets in the nonfinancial sector, and growth of household financial assets:


This disparity has not been driven by growth in the monetary base, which lagged behind until 2008. Instead it has been driven by other forms of money supply growth, specifically credit growth.

This is the relationship between financial sector asset growth, and growth of the money supply:

And growth of the money supply inversely correlates with changes in the Federal Funds rate; in other words, as interest rates have been lowered credit creation has spiked, and vice verse:

The extent to which M2 was driven by the Federal Funds rate (or vice verse) is not really relevant; the point is that the Fed’s chosen transmission mechanism is inherently favourable to the financial sector.

The easing of credit conditions (in other words, the enhancement of banks’ ability to create credit and thus enhance their own purchasing power) following the breakdown of Bretton Woods — as opposed to monetary base expansion — seems to have driven the growth in credit and financialisation. It has not (at least previous to 2008) been a case of central banks printing money and handing it to the financial sector; it has been a case of the financial sector being set free from credit constraints.

This would seem to have been accentuated by growth in nontraditional credit products (what Friedrich Hayek called pseudo-money, in other words non-monetary credit) in the shadow banking sector:


Similarly, derivatives:


Monetary policy in the post-Bretton Woods era has taken a number of forms; interest rate policy, monetary base policy, and regulatory policy. The association between growth in the financial sector, credit growth and interest rate policy shows that monetary growth (whether that is in the form of base money, credit or nontraditional credit instruments) enriches the recipients of new money as anticipated by Cantillon.

This underscores the need for a monetary and credit system that distributes money in a way that does not favour any particular sector — especially not the endemically corrupt financial sector.



Sign the Declaration

reset congress

The time has come to hit the Big Red Reset Button.

Sign the Declaration of Liberty to Elect a New Congress.

All American Voters.: Sign the Declaration of Liberty

Demand candidates to Congress to reclaim all Powers (Art I-Sec 8-US Con)

Greetings,

I just signed the following Declaration of Liberty addressed to: All 162,000,000 registered American voters..

----------------
Demand candidates to Congress to reclaim all Powers (Art I-Sec 8-US Con)

DECLARATION of AMERICAN LIBERTY

WHEREAS LIBERTY is defined as that State where the people rule over the government: This Declaration is given to underlining those critical terms required to ensure that Liberty, which is the original intent of our United States Constitution, be restored to the daily governance and operation of our United States Government.

To that revered document and America’s Declaration of Independence, this Declaration of American Liberty is subservient.

We acknowledge that Liberty requires all powers of the Congress be removed from the access and control of individuals, groups, or agencies; for it is only by usurpation of these powers, that factions gain control over the laws of the land and the lives of her people. It is this criminal and treasonous usurpation of power, that “ is the customary weapon by which free governments are destroyed.”

Further, that these restored powers of Congress are to be executed under the authority of all the people, re-establishing not only the power of Congress, but also its fiduciary duty to the people. The incorporation of the procedures inherent to Liberty in our government is our touchstone and the very cornerstone by which we judge our Liberty.

THEREFORE, We hereby sign and resolve ourselves and our representatives to,

Demand:

I.
Complete restoration of all constitutional powers of Congress, back to Congress, as written in Article I, sec. 7, 8, & 9, of our United States Constitution, and so restore operational Liberty in the execution of the business of the nation, causing two things to occur.

a. A nations political model determines its economic model with Liberty supplanting our centrally planned tyrannical state, which “once taken root is a plant of rapid growth.”
b. By taking power away from public and private agencies, it is removed from the hands of “unprincipled men” attracted to these very powers, and ends their means to transfer wealth away from all Americans.
c. This is the problem and enemy. Political Liberty is the solution.

II.
Congress wholly conduct and execute all introduction, discussion, compromise, and vote on all Acts, exercising their powers exclusively within the public forum on the floor of Congress, only thus they ensure;

a. Maximum Transparency in the execution of its duty which provides for,
b. True Consent of the Governed as required by our Declaration of Independence.

III.
The Necessary and Proper Clause (Elastic Clause), requires that the word, Proper, means all legislative and policy laws or decrees must be subject to the same process as any Act of Congress, performed exclusively and wholly within its public forum.

IV.
By Congress reformation, to perform its constitutional powers/duties and its demands upon its time, Congress must restore to the states those powers not specifically assigned to the Congress.

V.
Prosecution of all criminal and treasonous financial crimes prior to, during, and after the financial upheavals of 2008, must be pursued thoroughly regardless of any high standing or collateral impact.

Be Resolved: We either live in Liberty, or tyranny. We either rule our government, or be rule. We either all enjoy the bounty of our nation, or we wait for scraps from the hierarchy which rules our money, our lives, and our freedom, for Liberty means nothing if tyranny has one hand in your pocket and the other round your throat.

Liberty and tyranny are in dialectic opposition. They define each other by which they are not. Everyone must make their choice, and no decision is a decision for the status quo of tyranny that afflicts and rules the nation today.

THEREFORE, We the undersigned cast our lot and lives for Liberty.

“” G. Washington Excerpts: Farewell Speech to the Nation, September 19th, 1796 (words/terms)

For more information, go to www.ElectaNewCongress.com.

----------------

Sincerely,

[Your name]

Sign the Petition to Elect a New Congress

Share this with your friends:

Leave a Reply

Your email address will not be published. Required fields are marked *

* Copy This Password *

* Type Or Paste Password Here *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Please Donate

Sign the Petition

Sign the Petition to Elect a New Congress

All American Voters.: Sign the Declaration of Liberty

Demand candidates to Congress to reclaim all Powers (Art I-Sec 8-US Con)

Greetings,

I just signed the following Declaration of Liberty addressed to: All 162,000,000 registered American voters..

----------------
Demand candidates to Congress to reclaim all Powers (Art I-Sec 8-US Con)

DECLARATION of AMERICAN LIBERTY

WHEREAS LIBERTY is defined as that State where the people rule over the government: This Declaration is given to underlining those critical terms required to ensure that Liberty, which is the original intent of our United States Constitution, be restored to the daily governance and operation of our United States Government.
This Declaration of American Liberty supports and is subservient to America’s Declaration of Independence & our U.S. Constitution.
We the People, acknowledge that Liberty requires all powers of the Congress be removed from the access and control of individuals, groups, or agencies; for it is only by usurpation of these powers, that factions gain control over the laws of the land and the lives of her people. It is this criminal and treasonous usurpation of power, that “ is the customary weapon by which free governments are destroyed.”*
Further, that these restored powers of Congress are to be executed under the authority of all the people, re-establishing not only the power of Congress, but also its fiduciary duty to the people. The incorporation of these procedures inherent to Liberty into our government is a touchstone and the very cornerstone upon which we judge our Liberty.
THEREFORE, We the People, hereby sign and resolve ourselves bind our representatives to, Demand:

Article I.
Complete restoration of all constitutional powers of Congress, back to Congress, as written in our United States Constitution, Article I, Sec. 7, 8, & 9, and so restores operational Liberty in the execution of the business of the nation. This causes two things to occur.
a. Liberty replaces our tyrannical centrally planned state. As a nations political model determines its economic model, so will “Liberty, once taken root, is a plant of rapid growth.”**
b. Liberty, by taking power away from public and private agencies, it removes from power the hands of “unprincipled men”*, and ends their means to transfer wealth away from all Americans. This is America’s problem and enemy. Political Liberty is the only solution.

Article II.
Congress wholly conduct and execute all introduction, discussion, compromise, and vote on all Acts, exercising their powers exclusively within the public forum on the floor of Congress, only thus they ensure;
a. Maximum Transparency in the execution of its duty which provides for,
b. True Consent of the Governed as required by our Declaration of Independence. This is the only means by which the people rule.

Article III.
The Necessary and Proper Clause (Sec 8), requires that the word “Proper” means all legislative and policy laws or decrees must be subject to the same process as any Act of Congress, performed exclusively and wholly within its public forum.

Article IV.
Congress must restore to the states those powers not specifically assigned to the Congress, as Congress, in order to perform its own powers/duties, will be pre-occupied in its reclaimed constitutional performance. This natural restriction of time inherent to these powers/duties will weigh in when there are questions.

Article V.
Prosecution of all criminal and treasonous financial crimes prior to, during, and after the financial upheavals of 2008, must be pursued thoroughly regardless of any high standing or collateral impact.
We the People either live in Liberty, or tyranny. We either rule our government, or be rule. We either all enjoy the bounty of our nation, or we wait for scraps from the hierarchy which rules our money, our lives, and our freedom. For Liberty means nothing if tyranny has one hand in your pocket and the other round your throat.
Liberty and tyranny are in dialectic opposition. Each defines the other by which they are not. Everyone must make their choice, and no decision, is a decision for the status quo of tyranny that afflicts and rules our nation today.
THEREFORE, We the undersigned cast our lot and lives for Liberty.

*George Washington excerpts: Farewell Speech to the Nation, September 19th, 1796
** GW quote.

For more information, go to www.ElectaNewCongress.com.

----------------

Sincerely,

[Your name]

Sign the Petition to Elect a New Congress

Share this with your friends:

Subscribe to Our Blog

Enter your email address:

Delivered by FeedBurner



 Subscribe in a reader



New American Revolution

New American Revolution Book

Blog Archive