Aaaaand ... Shi'll be comin' round the mountain when she comes, Yee haw! [Do NOT keep that tune running round your head :D] [Oh alright, go on then, you can enjoy it for a moment, even a little foot tapping - we won't tell :)] The Fed Is Planning To Send Money Directly To Americans In The Next Crisis https://www.zerohedge.com/markets/fed-planning-send-money-directly-americans... .. yet, the lament is that even as the economy was desperately in need of a massive liquidity tsunami, the funds created by the Fed and Treasury (now that the US operates under a quasi-MMT regime) did not make their way to those who need them the most: end consumers. .. The response was striking: they two propose creating a monetary tool that they call recession insurance bonds, which draw on some of the advances in digital payments, which will be wired instantly to Americans. .. Congress would grant the Federal Reserve an additional tool for providing support—say, a percent of GDP [in a lump sum that would be divided equally and distributed] to households in a recession. Recession insurance bonds would be zero-coupon securities, a contingent asset of households that would basically lie in wait. The trigger could be reaching the zero lower bound on interest rates or, as economist Claudia Sahm has proposed, a 0.5 percentage point increase in the unemployment rate. The Fed would then activate the securities and deposit the funds digitally in households’ apps. As Potter then elucidates, "it took Congress too long to get money to people, and it’s too clunky. We need a separate infrastructure. The Fed could buy the bonds quickly without going to the private market. On March 15 they could have said interest rates are now at zero, we’re activating X amount of the bonds, and we’ll be tracking the unemployment rate—if it increases above this level, we’ll buy more. The bonds will be on the asset side of the Fed’s balance sheet; the digital dollars in people’s accounts will be on the liability side." And that, in a nutshell, is how the Fed will stimulate the economy in the next crisis in hopes of circumventing the reserve creation process: it will use digital money apps (which explains the Fed's recent fascination with cryptocurrency and digital money) to transfer money directly to US consumers. To be sure, the narrative is already set for how the Fed will "sell" this direct transfer of money to the rest of the world and the broader US population: as Coronado explains "it’s the most efficient from a macroeconomic standpoint in supporting spending and confidence. The fear of unemployment acts as an accelerant on a recession. There’s a shock—people are losing their jobs or worry about losing their jobs. They get very risk-averse. [By] getting money to consumers you can limit the depth and duration of a recession." ... HA! Now that's some seriously good shilling, I mean selling of the concept. Well done UBI shillsters :D You get ... wait for it ... yes .. you guessed it ... The Official Nagger Seal Of Approval [Authorised by Z.g The N.g, some God lovin' country.] Seriously folks, that is some awesomely effective propaganda - "the most efficient from a macroeconomic standpoint", yeah baby, gibs me dat already muffaducka :D And "supporting spending and confidence" - yep, "our" oligalchs are gonna be happy little chappies over this. And people "get very risk-averse" when the system resets - ya think? Welp, it sure is nice to see this pappagander founded in at least one fact already :) BTW, don't you just love the phrase "next crisis" ... yeah sure, "next", uh huh!, hint hint, nudge nudge. In good news, fwiw, your "next" UBI crisis payments are most likely (given these unexpected bouts of rationalism coming down the pipeline) just around the corner... live your lives wisely, muffas. Did we mention "end the Fed"? Because, that won't be so easy with UBI, it's basically end game for fiat currencies, as in, they can and will be stabilised under a UBI regime. There are other financial problems in the works, and similarly effective (as UBI) solutions are available. They're a little locked up somewhere right now ... I probably did NOT mention, but the wicked side of me kinda wanted to see chaos as much as the next <cough>Juannagger<cough cough>, but I'd rather peace, personally - like many folks, who else would like to get on with their lives? Which leads us to the other bit of good news - the only major problem we have left on our plates for the time being is that crazy Hungarian known to be funding the current North American color revolution (using the insider trading billion$ he made by illegally shorting the UK pound some years back). We can't send him "back home to Hungary" - because the Hungarian parliament declared him _persona non grata_ and might also have arrest warrants there. And we can't send his sorry hide to Russia because he _definitely_ has arrest warrants out for him in Russia :D (And besides, I could never wish "a Soros" on Russia - they have literally suffered enough already!) So anyway, the ultimate destination of Soros is up to the big Maker in the sky. In the meantime, given the unfortunate levels of chaos still swirling in the ethers, and the battles still not over either (pray already!) - one basic suggestion is to use your upcoming UBI "recession relief" payments for some personal vertical integration - where your dwelling permits it, add a rainwater tank, get a 40 gal potato drum started (late season crop for you Northern Hemispheran heathens), and keep all your other prepping in order. Staying ahead of the curve is still important, since there is a fair uncertainty whilst the MOTUs sort out the numbers on this novo fangled UBI thing. Let us be grateful for this possibility (not yet a certainty) of a peaceful transition into a new currency world order. If you are still keen, keenly keep a keen eye on localisation, vertical integration, exceptional inter ralations, no more mask debate nations (My, what amazing dignity you have there Mr Main Stream Media). Clean your slate to the extent you are able - remember, this physical pantomime is a proxy for your deeper spiritual truth, your long game way beyond this life. Who is it that is the bestest you that you can be? If you falter or stutter or halter or flutter in any fall from grace, know it, own it, cast it, reject it from within yourself going forward, be prepared to fix it, clean it, respect others, give others their space if they don't want your "heling", do what you can but get on with your own life, live better, at least a little bit, _everything_ is seen by those from pespectives far above our own so do as we can, however small, however seemingly insignificant and even if no one else knows. You know the thing. You still know. That's all that matters. Let's create an awesome world together, On Sun, Aug 02, 2020 at 12:37:56AM +1000, Zenaan Harkness wrote:

There's a meme in them thar economic hills, and it's a doozian, this "Keynsian" economic blinker:

Unlimited growth.

The foundation of "unlimited economic growth" is of course a bone thrown to the usurists, and when they're in control, they need the odd bone to chew on or they get fearful they might be exposed to the masses.

And so unfortunately we get odd conjunctions such as "While the idea of a UBI sounds good in theory, as discussed previously, they fail to work in reality ... UBI Won’t Increase Economic Growth"...

.. which is of course founded on the false "need" for eternal economic growth in the first place.

See here:

Universal Basic Income Is Not An Economic Savior https://realinvestmentadvice.com/macroview-universal-basic-income-is-not-an-... https://www.zerohedge.com/economics/universal-basic-income-not-economic-savi...

At the individual, the folly is seen easily e.g. if I eat 3 meals a day this year, I am unlikely to eat 6 meals a day next year "to help the economy increase food consumption/ economic growth in the food industry".

Yes I might eat out more often if my disposable income is presently low and rises sufficiently next year, but it's a bit of a specious argument, an attempt to put lipstick on a pig, as I can only eat so much food on a daily basis before I get sick, and whilst eating more expensive might mean "healthier" within some limited bound, arbitrarily paying say 10 times the amount for the same meal is not economic growth of the food industry - it is actually "financialisation".

In the endless search for the usurious pig's lipstick, financialisation has been the "go to" color, deceiving most with its "economic growth", in fact just a fraud of the first order, successfully masking over 100 years of currency debasement we slave under, to the benefit of extremely few.

Which is fundamentally a natural if ridiculous result of a povvo minset i.e. "poverty consciousness".

The fact is today that literally one single farmer in Australia, with the right equipment and 100,000 hectares of broad acre, can feed Australia its entire wheat needs (think large machinery, GPS and autonomous tractors).

So we live today in phenomenal abundance which is literally off the charts amazing.

And the obvious question is "well what is everybody else going to do then?" and the obvious "poverty consciousness" answer is "continue to slave to the bankers, doing Soul crushing paper pushing".

So may be we need a new model .. one where we acknowledge our abundance, write off most debts, and yes hand out a UBI:

- Some people will hoard like crazy little crack rats rubbing their paws together, because that's just how they're wired.

- Others will "like, chill dude" and waste their lives away - and so be it, it's ultimately up to the individual to improve his.elf or not, and to a lesser degree up to his family to kick his butt. The lazy-arsed "survival" of the fattest.

- And yet others of course will create Star Trek space ships - it's just how we're wired.

Wisdom lies in cognising reality, our abundance if we don't destroy it all, and perhaps some genuine education for humans who want it, and importantly leaving them with their free will (shocking concept, I know…).

Sit back and let folks "be" already — we live with sufficient food for all, the rest of life is a bonus.

And the UBI conclusion?

Another folly with standard ("modern", Keynsian) economic analysis is seen in the statement (from the above article) "In 2019, 75% of all expenditures went to social welfare and interest on the debt. Those payments required $3.3 Trillion of the $3.5 Trillion (or 95%) of the total revenue collected":

- "social welfare" may as well be an alias for UBI, so ignore that part

- and this fearful "interest payment on debt, and issuing of more debt" is a furphy, simply a product of the illegal Federal Reserve banking system as many well know

The point being, if you want to analyse the possible success of a UBI future, saddling this future with "it must solve the known mathematical problem inherent in the present albitrary and illegal system", may result in failure before you even start.

Now, it probably won't result in failure, and the re-balancing inherent with the addition of UBI, will likely at some point present to us all the inescapable question "how much graft in the form of interest" ought the bankers really make? And like unto it, "should we end the Fed?"

Yes of course we should end the Fed, but Monty and sons may not appreciate that, and so we face "how to transition?" - at least a cold war against China is less life ending than a hot war against our Russian brothers, so there's that...

In the end yes, UBI may certainly look like "long term GDP reduces", but a big part of that is actually de-financialisation as the wealth gap starts to normalise a bit, especially if it's done properly and most new money is injected at the bottom, rather than the majority being injected at the top.

And de-financialisation is hard to see or even acknowledge because "Keynsian justification of usurious banking" actually requires "financialisation, pretending to be economic growth" to hide the Fed's theft, sorry I mean to hide the Fed's wealth transfer for as long as possible (until the system breaks)...

UBI in any form helps stabilise the system of financialisation.

So may be, I dunno, may be we could try a Corona bonus for a while?

Unlike the "problematic when in isolation" Nordic UBI experiment, this Corona bonus is hopefully sufficiently broad-spectrum (including of most people in our community) so they can do the numbers and thereby determine how to de-financialize whilst maintaining overall stability.

Being an inherent conservative ("hey, I'm not 14 years old any more!"), this "transition stability" is something to be grateful for...