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Could This Be an Excuse to RV or Begin a GCR?

Well, with everyone looking under every rock for a reason (or not) to have an RV, maybe we finally have the perfect excuse buried within the broken system itself!

The handwriting of a global collapse is on the wall because there is no easy way out of the economic recession for any country without actually putting money in the hands of the people.

Since none of the central banking policies have worked to stabilize any economy and every debtor nation so far is no better off than they were 10 years ago (many are at or near bankruptcy), it may (finally) be time to try something new.

They can call this bailout for the people whatever they want... nesara, prosperity programs, global currency reset, CMKX, RV etc as there are lots of available options, but the bottom line is that a complete global economic change seems to be in the works.

TPTB look to be ready to begin creating these handouts electronically and may even need to include several forms of high RV currency exchange rates for oil credits or assets of any nature just to make everything seem legit and profitable so that it makes sense.

Just what currencies are involved and at what rates still remain to be seen, but something is definitely in the wind and it has the sweet smell of hope all over it!

Read this article and do some poking around on your own to come to your own conclusions...




08/26/2014 11:47 -0400 It Begins: Council On Foreign Relations Proposes That "Central Banks Should Hand Consumers Cash Directly"

Snips:

A year ago, when it became abundantly clear that all of the Fed's attempts to boost the economy have failed, leading instead to a record divergence between the "1%" who were benefiting from the Fed's artificial inflation of financial assets, and everyone else (a topic that would become one of the most discussed issues of 2014) and with no help coming from a hopelessly broken Congress (who can forget the infamous plea by a desperate Wall Street lobby-funding recipient "Get to work Mr. Chairman"), we wrote that "Bernanke's Helicopter Is Warming Up."

The only question left was when would the trial balloons for such monetary paradrops start to emerge.

We now know the answer, and it is today.

Moments ago a stunning article appearing in the "Foreign Affairs" publication of the influential and policy-setting Council of Foreign Relations, titled "Print Less but Transfer More: Why Central Banks Should Give Money Directly to the People."

In it we read the now conventional admission of failure by Keynesian s, who however, unwilling to actually admit they have been wrong, urge the even more conventional solution: do more of the same that has lead to the current financial cataclysm, only in this case the authors advocate no longer pretending that the traditional monetary channels work but to, literally, paradrop money.

To wit:
    Governments must do better. Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly. In practice, this policy could take the form of giving central banks the ability to hand their countries’ tax-paying households a certain amount of money. The government could distribute cash equally to all households or, even better, aim for the bottom 80 percent of households in terms of income. Targeting those who earn the least would have two primary benefits. For one thing, lower-income households are more prone to consume, so they would provide a greater boost to spending. For another, the policy would offset rising income inequality.

LET THEM HAVE CASH

Using cash transfers, central banks could boost spending without assuming the risks of keeping interest rates low. But transfers would only marginally address growing income inequality, another major threat to economic growth over the long term. In the past three decades, the wages of the bottom 40 percent of earners in developed countries have stagnated, while the very top earners have seen their incomes soar. The Bank of England estimates that the richest five percent of British households now own 40 percent of the total wealth of the United Kingdom -- a phenomenon now common across the developed world.

There is another way: instead of trying to drag down the top, governments could boost the bottom. Central banks could issue debt and use the proceeds to invest in a global equity index, a bundle of diverse investments with a value that rises and falls with the market, which they could hold in sovereign wealth funds. The Bank of England, the European Central Bank, and the Federal Reserve already own assets in excess of 20 percent of their countries’ GDPs, so there is no reason why they could not invest those assets in global equities on behalf of their citizens. After around 15 years, the funds could distribute their equity holdings to the lowest-earning 80 percent of taxpayers. The payments could be made to tax-exempt individual savings accounts, and governments could place simple constraints on how the capital could be used.

For example, beneficiaries could be required to retain the funds as savings or to use them to finance their education, pay off debts, start a business, or invest in a home. Such restrictions would encourage the recipients to think of the transfers as investments in the future rather than as lottery winnings. The goal, moreover, would be to increase wealth at the bottom end of the income distribution over the long run, which would do much to lower inequality.

Best of all, the system would be self-financing. Most governments can now issue debt at a real interest rate of close to zero. If they raised capital that way or liquidated the assets they currently possess, they could enjoy a five percent real rate of return -- a conservative estimate, given historical returns and current valuations. Thanks to the effect of compound interest, the profits from these funds could amount to around a 100 percent capital gain after just 15 years. Say a government issued debt equivalent to 20 percent of GDP at a real interest rate of zero and then invested the capital in an index of global equities. After 15 years, it could repay the debt generated and also transfer the excess capital to households. This is not alchemy. It’s a policy that would make the so-called equity risk premium -- the excess return that investors receive in exchange for putting their capital at risk -- work for everyone.

Those who don’t like the idea of cash giveaways, however, should imagine that poor households received an unanticipated inheritance or tax rebate. An inheritance is a wealth transfer that has not been earned by the recipient, and its timing and amount lie outside the beneficiary’s control. Although the gift may come from a family member, in financial terms, it’s the same as a direct money transfer from the government. Poor people, of course, rarely have rich relatives and so rarely get inheritances -- but under the plan being proposed here, they would, every time it looked as though their country was at risk of entering a recession.

Unless one subscribes to the view that recessions are either therapeutic or deserved, there is no reason governments should not try to end them if they can, and cash transfers are a uniquely effective way of doing so. For one thing, they would quickly increase spending, and central banks could implement them instantaneously, unlike infrastructure spending or changes to the tax code, which typically require legislation. And in contrast to interest-rate cuts, cash transfers would affect demand directly, without the side effects of distorting financial markets and asset prices. They would also would help address inequality -- without skinning the rich.

Read the whole article here:
http://www.zerohedge.com/news/2014-08-26/it-begins-council-foreign-relations-proposes-central-banks-should-hand-consumers-cas
 

 

 

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BLAH BLAH BLAH.

 

Let the numbers speak for themselves to back up economic growth, stability and success.

You're gonna wait quite a while for those numbers to get up to where they should be.

 

I will be SHOCKED OUT OF MY SOCKS if the RV happens instantly, with the bills we now hold, with a rate of $3+ anytime this year.

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I will be SHOCKED OUT OF MY SOCKS if the RV happens instantly, with the bills we now hold, with a rate of $3+ anytime this year.

 

Please let us know your shoe size so we can send you a pair of sandals, which don't require socks.

 

Billio0

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