Policeman on the Corner

Hernando de Soto may have the best Take on the financial crisis, but I have a real problem with the analysis. Check on the SEC estimates of the derivative paper v. the World. No One can count this Crap in the first place. All it takes is access to a Bank computer, and there will be members of the actual oldest profession creating false accounts, and adding a couple extra Billions of derivative Paper to the World debt. No one has done the Math on This either, and I estimate the fraud level would probably be around $250 billion in Claims, and might be as high as $4 trillion. In case you Kids do not understand, this would make Madoff and Co. seem like miscreant infants in the Criminal world. This is Why I would call for all Claimants to register their claims with some federal agency, before any Repayment can be made; making these Individuals go on Record as to what they would claim (making a prosecutorial Claim of True or False Representation). It is probably too Late to catch the real Crooks, who will likely already been paid; yet to demand Registration would allow the IRS to tax the Mess. Never forget, Kids, that where there is Money, there is Fraud.

I will present this Opinion concerning debt repudiation, though I do not believe in the Solutions format proposed. There is obvious Need for debt repudiation, as the creation of Wealth cannot be assigned Immortality, when Resource Use is very mortal indeed. The Concept of Old Wealth remains a statement of the existence of Parasitism, where if Wealth is not utilized in current Production, it is not Wealth at all. Claims made prior to the decay of Production Product cannot claim a truthful Wealth symbolism if the decay has already degraded the Product. Only with perfect Retrofitting can a 100-year old House, 50-year old Car, or 30-year old Clothes equal the price of new items; which might seem to fly in the face of wisdom. What it means is that there must be a false market generated, simply to maintain the Value; in no way can the Products be utilized for their designed capacity. This is the exact Posture exhibited by all Old Wealth unattached to current Production except through Bank manipulations, and the rationale behind debt repudiation, and the reason why such activity cannot be canceled effectively in any Period utilizing temporary use Products of Productions.

I will let Mike Shedlock bring you all of the rest of the way down from your Candy-inspired Easter Egg Hunt High. We are losing our Malls, our Construction finance, and righteous Construction materials; but We are gaining aptitude in writing off losses. Vacant Lots are becoming available for the next big surge; whenever that comes, and whatever it could be. I am glad that Santa does not have to show up for Easter, or We could all have a Problem. Oh well, enjoy the trappings of the Day; One celebrating a mythical Escape from a real Persecution of a biblical figure; hmmm, could there be a relevant relationship to current economic trends? lgl