TimingLogic's Blog

Reasoned, Relevant And Often Contrarian Commentary On Economics


October 24
I'm an electrical engineer and mathematician by training. My career has spanned diverse areas of expertise from being part of a team which designed the world's most powerful computers to corporate consulting around business transformation and information-based solutions to being a corporate sales and marketing executive in the information technology and business consulting space. I’ve led teams responsible for innovative and transformative solutions and been part of teams that helped set strategy for many of America's greatest companies. Two of my interests are econometrics, democratic finance and quantitative - qualitative analysis. Over the years I have developed risk-based models and trading systems meant to identify significant investment opportunities and periods of extreme risk. My blog is an outlet for another of my passions, writing. I generally consider myself a contrarian. Therefore, many of my rantings are meant to encourage people to question what they believe to be true. Terms of Use & Disclaimer: First off, I don't take anything on here too seriously and you shouldn't either. These are simply sardonic rantings of Bill, my alter ego, often meant to agitate for peaceful & nonviolent reform. This web site reflects the views of its authors. It is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than its authors. The information on this site is provided for discussion purposes, comedic relief and entertainment only and are not investing recommendations. The authors may have positions in securities mentioned herein. Under no circumstances does this information represent a recommendation to buy or sell securities. While information discussed on this site was gathered from what are believed to be reliable sources, in no way is informational accuracy guaranteed. All information on this site may contain errors and omissions. Trading and investing involves high levels of risk. Always consult a licensed financial advisor or broker before making any and all investment decisions. Authors of this site and any sites which are fed by said site, including Open Salon and others, will assume no responsibility for the actions of the reader and user. Readers and users agree, as condition to accessing this site, to release and hold harmless this site's authors from all liability in connection with this site or any views posted on this site. All readers and users of this site agree that use of this site requires acceptance to the current Terms Of Use & Disclaimer and that current terms include any and all use and material from site inception. If you do not understand these statements in their entirety or do not agree to be bound by this current agreement, you must immediately discontinue use of this site. This Terms Of Use & Disclaimer may change at any time and it is the reader's and user's responsibility to review, understand and abide by any updates.

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MAY 2, 2012 1:20PM

Dallas Federal Reserve Doesn’t Relent – Bust Up Too Big To Fail

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Richard Fisher, the Dallas Federal Reserve President, was somewhat of a lapdog before this crisis.  In fact, I mocked his generally oblivious nature before this crisis hit.  He was in the ozone.  But, I must say, he has made a reasonably graceful recovery and has been consistently on the side of democracy.  At least as much as someone who is part of the public-private partnership of the Federal Reserve can be.    We need a fully public and accountable Federal Reserve. 

Fisher has been beating the drums of too big to fail for quite a while and isn’t backing down.  Some interesting charts in the Dallas Fed’s recent presentation…. 

Barron’s article and link to the Dallas Fed presentation here.  I know the WSJ properties sometimes have links that only work from Google so if that link doesn’t work, the Fed’s presentation is here.

By the way, make sure you look at the sixth chart.   There was a period after the Civil War’s substantial government spending that hard money advocates put us into what was essentially a forty year depression by crushing the money supply.   There was rampant corruption in that decision.  Gold and silver-backed money is the opposite of democratic money.  There is no historical example of anything closely resembling democratic money using gold or silver.    To the contrary, those who have the gold and the silver always deny it to those who don’t.  Gold is a tool of elites, predation, colonialism and state-based economics.  The post Civil War period has a substantial parallel to today where after substantial wars and frivolous spending, hard money advocates today want to slam the brakes on our money supply.  It would have an equally devastating impact of depression as far as the eye could see.  And, I have written those exact words on here a few times before.  Gold money advocates really are clueless.  I share and appreciate their enthusiasm for reform but they don’t understand money, economics,  democracy, democratic capitalism or democratic economics.   They would make matters worse. 

We need soundness to our money but gold creates an artificial limit on the amount of money available in the economy.  Those limits are decided by who has the gold.   There are so many easy solutions to accomplishing monetary reform.  Gold is not monetary reform.  It takes us back to the days when those who had gold made the rules and that meant enslaving those of us who didn’t have any of it.  By the way, this is not only true of a national currency but also as a form of international trade settlement.   Gold as a form of trade settlement encourages state-based looting on a global scale, corporatism, unsustainable economic dynamics, mercantilism and other forms of corruption.   The United States had all of the gold in the world in 1929 and that was in fact the problem.  Of course, it wasn’t the problem for the elites in our society who had all of the gold.  Just the rest of us poor sonofabitches who suffered death, indignity, loss of employment, endless poverty and living in cardboard shacks.   Gold-based international trade settlement creates massive dislocations and unsolvable problems.  It also would cause endless suffering and possibly even massive waves of death in third world countries.  Gold is not the answer.   It is the problem. 

Of course, the flip side that post Civil War period is from 1983 to 2007 where endless profligacy of economic dunces run amok inflated our way out of everything and that allowed corporations, politicians and elites to hide the effects of what they did to our democracy,  democratic economics, our economy, our public institutions, our pensions, Social Security, economic determinism and on and on.   The day of reckoning will arrive soon enough.  But, it isn’t the Federal Reserve who created the mess we see today as I have noted ad nauseam.  It was politicians.  The Fed, being a creation of the corporate state, simply wallpapered over the corporate-politicial corruption. 

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“Gold is not the answer. It is the problem.”

Don’t tell anybody but I agree with practically everything you have written here. In plain English gold is just a rock that elitists have been beating the people of the earth over the head with for many thousands of years (it’s a heavy rock too!). Who knows how much gold there is and who has it? Only the people who have it. Keep it! it’s not good for anything much except as an electrical conductor. To paraphrase the Roman Empire give me a good sharp sword (“my kingdom for a sword”). What we really need is honest and ethical people running the government. Interesting you use 1983 as the beginning of the current economic crisis. Isn't that about the time when usury was officially promoted as a banking tool?
I suspect 1983 is about the time usury became a banking tool, an economic tool and a profit tool for every major corporation.