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The End of Too Big To Fail, More like the realization of Too Stupid To Succeed.

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posted on Jun, 25 2010 @ 10:34 AM
Obama has proven once again that he, Washington and big business have no concept of reality during his short press speech before heading to the G20 Summit, the third G20 in his presidency to date.

It does not matter if there are one or one million regulation agencies to oversee Wall St. The problem with the global economy is not a matter of how the global markets like NASDAQ and DowJones are doing. Sure, it is a gauge. But nothing more. Consumer Spending is a gauge, Unemployment is a gauge. And both of those are far better factors to consider.

The US economy has never recovered from the Post War Boom of WWII, because no one with the capacity to affect economic policy has fully recognized it as a Boom. Or in terms that we are all too familiar with today: a bubble that has popped.

Solutions have been to change from manufacturing based to a service based economy. But the question is to serve what exactly? Let's look at it in simple bartering terms.

    I raise chickens and you raise cows. I strike up a deal to trade you a dozen eggs for a gallon (3.8 liters) of milk. It is a fair deal and everyone is happy. A service industry in this case would be a guy that carries the eggs and milk back and forth between us. For this, I give him 3 eggs and you give him a glass of milk. I have to gather a few more eggs from a few more chickens and you have to milk another cow, but it is a fair enough deal and everyone is happy.

    Now there is a wheat farmer that has heard about our deal and would like to trade me a sack of grain for some eggs and trade you a sack of grain for some milk. We both know that we can have the grain milled to flour by the miller for some eggs or milk and that service guy with the wagon is more than happy to make all the trips for the 3 of us (4 if you count the miller) and every one is happy because now that service guy with the wagon is calling himself a Teamster. And instead of just one meal a day for running eggs and milk he is getting 3 squares a day with milk, eggs, bread with jam and bacon. Bread with jam and bacon? He must know some other people. Time to have a talk and see what we can find out.

    Well it would seem that the Teamster knows some people in the next county that have a butcher and another that has an orchard and another that is a baker and still another fellow that is a miner. And they only trade in gold coins over there. Because they have what they call a government that negotiates contracts. And all contracts trade items for gold coins, which the government stamps to make them official. But what is strange, is that the government makes you pay a portion of those coins back to him for negotiating the contracts. Now the next county over is pretty far away and things sound a little complicated so that explains why we only see the Teamster twice a week while his son does all the routes the rest of the time.

Sure it is an over simplified parable, but notice how the Teamster is very much like big business. Starts out small, produces nothing yet is able to profit from all negotiations. It becomes a matter of opinion as to if the farmers are working for themselves or for the Teamster in the end. In dealing with government regulations in the next county, the simple farmers will either have to work through the Teamster or find a way to work with the government of the next county to acquire gold coins which may have already regulated by the Teamster for importing at a lower tariff. In which case the government might decide that the Teamster is too big to fail because of the lower cost import of raw materials because the baker and butcher (that presumably feed the next county) need the lower priced animals, flour eggs and milk from the simple county. The butcher and baker might talk to the miner about seeing if the simple county has silver or copper and then negotiate with the government to an exchange rate for silver or copper coins to be minted for the simple country in hopes of more direct trade in their newly established local currency that they helped create. This would increase the butcher's and baker's consumer base. And because the government still gets a percentage for contract negotiations (taxes) it benefits the government as well.

Now in time, the simple county will see that now they have currency and have learned of baking and butchering, they can begin to do such things domestically after forming their own government. Because the exchange rates of gold to silver or copper are more favorable in the poorer country, they can begin exporting cheaper bread to the next county instead of just eggs, flour and milk. Sure it is day old bread, but if the government doesn't regulate the import under equalizing tariffs the baker is going to be out of a job due to an inability to compete. Especially if the simple country nationalized export production to cover a loss to enter the market. Much like China's textiles did to US textiles and made up for it in other manufacturing.

The US has over borrowed to prop up the domestic economy that is hurting from domestic spending. Much like the bakery that ran itself out of business, he decided to cut overhead by eliminating bakers. Those unemployed bakers can't afford or will refuse to buy those loaves of bread and they will not be able to afford the local butcher's selections as well. Especially if the best work they can find is to sell leather harnesses or wagon wheels to the Teamster that might have been imported as well.

The US needs to focus on domestic manufacturing growth with the intent of domestic consumption. If a new technology is developed that will level the playing field such as new forms of energy then it needs to hold it domestically. Always looking at the global market for consumers and production without adequate protection for domestic jobs is what ultimately caused the economic problem that we have today. Borrowing money to prop up companies such as investment firms and banks that do not produce anything nor are major employers has accomplished nothing but the movement of numbers in the financial markets.

Ultimately the value of any single stock of being $2 or $20 means nothing unless cashing in the stock. The buying and selling of shares is really no different than trading baseball cards as a kid. The only value is in the perception of the value and the particular desire between the parties. The sad reality is that far too many place value in the wrong things.

Today we are looking at the possible end of unemployment benefits for a good number of people in the very near future. Sure it will save a few bucks in the short term. But what is the crime rate going to do? What is the death toll of those incapable of survival going to be? We don't live in the simple county folks. There are regulations against going out, claiming a plot of land and raising chickens and dealing in eggs are currency.

That is why I say it was never a matter of too big to fail but just too stupid to succeed.

posted on Jun, 25 2010 @ 10:51 AM
Nice economic parable there Ahabstar.
Those teamsters won't be very happy once the chicken farmer and the baker lose their businesses!
Too stupid to succeed, indeed!

Perhaps that should be what's written on the tombstone of humanity.

posted on Jun, 25 2010 @ 11:03 AM
This was great, and very well thought out. This is something that should be sent to the White House via e-mail, they all need to read this, also Congress, the Senate and the House of Representatives.

posted on Jun, 25 2010 @ 11:15 AM
so you believe that this is exclusive knowledge?

it is designed into the system, they wish to wage war without the inconvenience of bombs dropping on their heads and so far it worked brilliantly. as long as the system remains in place, opposing the status quo will trigger a violent response.

try moving out, your outfit will be labelled a 'compound' and raided. think of waco, think of the raid by CPS...

economy is but one aspect of the problem and the majority will back them like it or not.

[edit on 2010.6.25 by Long Lance]

posted on Jun, 25 2010 @ 01:48 PM
reply to post by FiatLux

You mean reading this will change their minds and make them care? Ya really think so?

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