Reduce Treasury Debt and the Banking System Collapses ~ The Risk Averse Alert

Wednesday, October 03, 2012

Reduce Treasury Debt and the Banking System Collapses

Here, Mr. President, let me help you out. When the next Anglophile debate moderator (i.e. your kind of people!) asks you about the federal deficit, feigning concern over its parabolic growth, shedding crocodile tears for American children who will be left to "pay" for it, all you need do is hold up a blown up copy of the following chart and assure the American people that, the deficit is not a problem, and in fact, in today's setting, is a blessing...


Now, stay with me, Mr. President. This is going to allow you to go right for the throat of that pretty-boy, asset-stripping thief, Romney, while at the same time take hold of Congress and move the jellyfish in the right direction.

You state the FACTS:
  1. Plainly—obviously!—the beloved market sees absolutely no problem with a parabolically rising federal deficit. This deficit is paid for with U.S. Treasury securities and evidently "the market" cannot get enough of these, thus explaining the declining cost of incurring Treasury debt financing the deficit. Now you go for the throat and you tell the American people why this is...
  2. If the federal debt were not increasing parabolically, the banking system would collapse. Simply put, Treasury debt facilitates cash flows the banking system needs to remain technically solvent. Explain why the Federal Reserve has just announced an open-ended program to absorb mortgage backed securities held by banks: the utter lack of due diligence exercised by so-called "talent" whose dealings, indeed, propelled the fortunes of asset strippers like Romney has left the banking system stuffed to the gills with "assets" that, at present fail confidence to fetch in the open market anything remotely near the price at which banks mark these "assets" on their books. The Fed simply is indicating its confidence in these securities is undeterred, and so "the market" likewise should take confidence, as well. They're gambling, and that's not what the Fed was set up to do. Nor was the Treasury.
Now, once you explain to everyone that, the fate of the United States' economy hinges on a confidence game, you can go back to being presidential. You can express your every confidence the Fed will succeed and the rough patch we are experiencing will be overcome. Yet here, too, is your opportunity to separate yourself from pretty boy asset-stripper and take him right out of contention. You indicate under no uncertain terms that, the American people will not be left to rot like Greeks or Spaniards whose governments submit to a failed ideology claiming that, by cutting government spending the nation's financial woes will be cured and its economic health restored. Plainly this is a lie and people's lives are being destroyed, and you are not going to let this fate be that of the American people. Say this and you will transform that asset stripping home wrecker into a bumbling fool, along with all who support the failed ideology of austerity which is the banner under which Tory Right today rallies with a lot of mindless and heartless fanfare.

By expressing your every confidence the Fed will succeed, you are telling the banking community start lending like there is no tomorrow, or else there will be no tomorrow. You're an Ivy League educated man. You know the right language for making such credible threats as these. Obviously, finding the will to make such a necessary imposition as this will require a program to restore the banking system's health, such that when the inevitable failure to restore confidence in the garbage today polluting the banking system arrives, an orderly restructuring can occur and life will go on.

Listen Obama, you have no choice. The likes of me and many others will continue lobbying elected representatives in Congress imploring these people to impeach your sorry ass, as we believe you are guilty of more high crimes and misdemeanors than you can shake a stick at. Like I said before, you make Nixon look like a cub scout. If you have any hope of deflecting righteous attack on you (and the sold out Democratic party for that matter), then you best make clear that, if Romney wins and succeeds pushing through Congress the cuts in government spending he advocates, the U.S. banking system will collapse. As sure as the European banking system, itself, is on the verge of collapse on account of austerity policies Tory Right advocates, the U.S. banking system, too, will be destroyed, and this to be sure with ill-intent (not by accident).

Fast Money
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