patrick.net

Thank 1. China 2. The government 3. The media

Cool, economic doom and gloom without going to Zerohedge.

GDP down 50% and unemployment numbers are absolutely insane! I hope for the best, but fear our economy is fucked and far from home no matter what we do now.

I think it would have been smarter to not give out trillions in stimulus money, and instead declare a 2 month deferral of rent and mortgage payments. This and proportionally small payments to divert food now being destroyed in the fields to food banks etc. We wouldn't have had to take on all this debt which quickly trickles up to the oligarch level leaving taxpayers with the bill for generations to come.

Automan Empire says

declare a 2 month deferral of rent and mortgage payments.

Great! You volunteer to pay the rents on my mortgaged rentals? Ever hear of contract law?

Incidentally, I just had two move out and their replacements were the easiest since I started this in 2013. Actually, 2 plan to move out and I've already got signed leases. I raised the rent $150 between the two of them as well.

The issue has been and still is the fucking FED. Not so much up until the 80s when Greenspan let traders front run him and forever on since then.

The proper thing to do this time, last time, all times is to let companies go into chapter-11. Period. Employees usually keep their jobs, the companies debt gets wiped clean (making them more competitive and able to sell at lower prices), the management gets fired, the unsecured equity and bond holders get wiped out and more responsible people like me come in and manage it better.

But no, we get this situation where as you correctly say, the money quickly moves to the oligarch level and we're left with the bill.

I like your food idea as well. I'm all for donating to (and govt support for) food lines and mass (cheap) shelter for people who need it during hard times.

just_dregalicious says

The issue has been and still is the fucking FED.

I agree.

We should not let a private bank be in control of our national monetary system.

Remember, the Federal Reserve is privately owned. We don't own it.

By the way, those mortgage deferrals were such bull shit. I could maybe go along with adding the payments to the back of the loan but that's not how they are set up to work. You owe a balloon payment. Fuck that.

Also the legislation that came out of the house about this was a fucking fat ass leftists pork dream. If I were to accept it I'd basically lose control of my property to the government.

No way in hell.

How will property taxes (i.e. public school, police department, fire department and local public hospitals) be paid if rent and mortgage are not paid? How will utilities, especially water and sewer departments, be paid without rent being paid?

The conditions attached to "bail-out" loans being proposed by the Congressional Democrats are utterly insane: forcing private landlords to accept criminals if they take "bail-out" loans. The very reason why private landlord-tenant relationships work better than bureaucratic public housing projects is that different landlords can try different risk/reward profiles with their discretely owned properties that compete against each other. The one-size-fit-all standards being proposed by the Congressional Democrats would only turn every neighborhood into public housing projects . . . just like those in neighborhoods that are burning these past few nights.

OccasionalCortex says

Ever hear of the gold clause that used to be on just about every contract before the Feds ripped them out and SCOTUS said, "fuck contract law!" in response?

No, but no surprise, I'm not even a paralegal. That sounds like a horror flick, going to go see what I can read about it.

Tim Aurora says

Remember, the Federal Reserve is privately owned. We don't own it.

Good point.

It is "owned" by the member banks (ie., Bank of America, Wells Fargo, Regions Bank, BB&T, Trustmark Bank, etc).

The CEO of Trustmark Bank is the chairman of the board of the Federal Reserve Bank in Atlanta.

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The federal government along with the Federal Reserve can easily create demand. Just look at the effect of the stimulus checks of $1200 per person who make below $95,000 a year.

Even NASA's administrator said this morning that NASA can create demand, but the commercial contractors like Space X can provide the supply.

The question is about supply, and about forcing productivity requirements on the working masses or working stiffs.

If there are no productivity gains, then supply does not keep up with demand.

That is why Venezuela, as the world's largest reserve of oil, has to import gasoline from Iran.

I think the USA will be okay if food, water, shelter, energy and healthcare remain relatively affordable.

If clothing goes up, then many will just not buy as much clothing or shop at the Goodwill store

If a China-made High Definition TV goes up in price, then many will forego purchasing it and hold on to their +8 year old TV.

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ad says

Good point.

Yes, Danielle di Martino Booth mentions their email addresses end in .gov.

Tim Aurora says

The regional Federal Reserve Banks are private corporations acting as agents of the government that are owned by their member banks.

SO private banks own a Government Agency? Think about that statement.

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NoCoupForYou says

SO private banks own a Government Agency? Think about that statement.

Banks provide the engine of the exchange of goods and services between people and organizations. That is it provides cash/dollars, or liquidity.

Now you can bypass that by using alternate monetary medium of exchange like come up with your own currency like bitcoin.

Or you can barter. In fact, I recall there is a patriot community in the northern panhandle of Idaho that planned on not using cash but bartering among themselves.

I know there are battering services like Time Bank and Trade Bank.

There is also this: https://www.irs.gov/taxtopics/tc420

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