A trio of views to guide investors

This was Bill's best article to date, and the side material was incredible. Thank you, I can't remember the last time I read something all the way through like I read this one. :-)

I wondered all the time why people would say Alan Greenspan is a genius; people were impressed by his choice of vocabulary, they had to pull out a dictionary to look up words he used.
I remember reading Bill Fleckenstein, he is one of the few people who thought Greenspan is a bubble maker. Now every one knows Greenspan and Clinton's administration is responsible for this financial calamity we are facing, they planted very bad seeds, they grew to become trees and now bearing bitter fruits, it takes time.

I read above mentioned Jeremy Grantham's article, next 10 years don't look good. We need to elect leaders at local, state and federal level with analytical degrees such as in Mathematics, Sciences and advanced economics. We need to stop electing lawyers and people with liberal arts degrees, they would have wrong skills to make right decisions. 
 
How can we have head of FDIC a lawyer, senate finance committee members with degrees in English and law? wrong skills for the job, no wonder we are in a huge economic mess for years to come. Are we going to have next surgeon general a lawyer or one with a liberal arts degrees? God help us.

Now that the new president is bailing out unions, can we ask him to bail out 401K accounts, those without any pensions.  A  traditional  pension is secure and can be counted on and guaranteed by pension guarantee corporation. Who is guaranteeing 401Ks? We need one standard not double or triple standards. We need a national pension plan for every one not just for public school teachers & police officers only (who can retire at age 50 with at least 70% of their maximum salary in retirement).
White collar educated people with degrees who work in private corporations are hurting the most, they have no unions no representation, they getting fired and no one to help them, no questions asked.
Jobs are outsourced and in-sourced to H1-B workers from other countries. Why do we need foreign workers, do we really have a shortage of workers in USA?; 600,000 jobs per month are lost each month and they cant find a qualified worker among these unemployed?
Does the Congress and Senate know what is going on, or they just don't want to know because corporate executives are making huge campaign donations for them to get reelected, so they can have secure job with life time health care and pensions.  

Life as we knew it, will not come back but ff we do not change the financial system, the the current situation may end in disaster. First we have to identify the root cause of the problems we are in, which is usury and credit. Usury is the charging of interest on money. Credit is the creation of money out of nothing.

 

The charging of interest is the way to slavery. This is because people may be hoarding money for a rainy day. When more people do this simultaneously, money is removed from circulation, weakening the economy. When this happens, even more people will start hoarding money, because they expect times getting worse. This is the beginning of an economic crisis. Many people will lose their income, and if they do not have money, they must borrow money against interest for unavoidable expenses such as food. As a result, the situation becomes even worse.

Credit and interest on money make it possible for an economy to grow above potential during a boom phase. In the boom phase investors add leverage using credit which further intensifies the boom, creating shortages of materials and labour resulting in rising prices. Interest on money entices banks to lend money to leveraged investors during the boom phase. Credit makes it possible to create money out of thin air, which further enables the banks to fuel the boom. When the cycle turns into bust, investors start to deleverage, which further intensifies the bust, creating surpluses of materials and labour resulting in falling prices. What most economists do not see, is that credit and interest on money are the root causes of economic booms and busts.

It is possible to achieve a much greater prosperity, with maximum capital growth without inflation, large debts, economic crises, unproductive government intervention and the unproductive part of the financial sector. Natural selection will ultimately determine the most efficient economic system, despite the political power structures that still exist at this moment. The investigation of alternatives and dissemination of knowledge will accelerate this process, but the ultimate outcome will not change. The most efficient monetary system is based on money with a hoarding fee combined with banning of credit and the charging of interest on money.

The theory is described here:
http://www.naturalmoney.org/short.html
http://www.naturalmoney.org/full-theory.html

This is not a joke because famous economists and scientists did see this too:
http://www.naturalmoney.org/gift.html

Also there is a conversion plan to the new system and a plan to build a sustainable future using this system:
http://www.naturalmoney.org/conversionplan.html
http://www.naturalmoney.org/buildfuture.html

I hope you like it. You do not have to agree with all of it to find it interesting.

dear 401k: what about reaganomics & W's economic "policies" and their contribution to this mess? also, the senate is part of congress. your statement, "congress and senate", is redundant.