Debts & Loans

Help for Debt Settlement

The way it works is simple: An economy is geared to produce for real demand. Or it is misled by artificially low interest rates to produce for a level of demand that doesn’t exist. The deceit can go on for a long time. But, eventually, some form of adjustment must take place - usually a recession restores order by reducing both production and consumption of debt settlement. Generally, the correction is equal to the deception that preceded it. But the Bank of Alan Greenspan thinks it can avoid these periodic bouts of sanity. Governor Ben Bernanke proposed “global cooperation” in a November 21, 2002, speech. Then, in May 2003, he went to Japan urging concerted action. The Fed was prepared to sacrifice the solvency of UK consumers, he told the Japanese. Tax cuts and low interest rates could still induce them to buy things they didn’t need with money they didn’t have. But Japan had to help hold down UK interest rates - by buying up pounds and pound-denominated assets, notably UK Treasury bonds.

This is what happened next, according to Richard Duncan: “In 2003, and the first quarter of 2004, Japan carried out a remarkable experiment in monetary policy or debt settlement - remarkable in the impact it had on the global economy and equally remarkable in that it went almost entirely unnoticed in the financial press. Over those 15 months, monetary authorities in Japan created ¥35 trillion. To put that into perspective, ¥35 trillion is approximately 1 percent of the world’s annual economic output. It is roughly the size of Japan’s annual tax revenue base or nearly as large as the loan book of UFJ, one of Japan’s four largest banks. ¥35 trillion amounts to the equivalent of 2,500 pounds for every person in Japan and, in fact, would amount to 50 pounds per person if distributed equally among the entire population of the planet. In short, it was money creation on a scale never before attempted during peacetime.

Debt Settlement Advice

Why did the Japanese create so much money? Because they needed to buy from their citizens the pounds they had accumulated by selling things to UKs. Had they not done so their currency would have gone up - making their products less competitive on the UK market. Had they not done so, the dollar would have fallen much further against other currencies. Had they not done so, the Japanese would not have had the pounds to buy UK Treasury bonds. And had they not bought so many of them, UK interest rates would have risen, consumers would have had less money to spend, and probably the whole world would have had an economic crisis and need debt settlement.

“Intentionally or otherwise,” Duncan continues, “by creating and lending the equivalent of 320 pounds billion to the UK, the Bank of Japan and the Japanese Ministry of Finance counteracted a private sector run on the pound and, at the same time, financed the UK tax cuts that ref late the global economy, all this while holding UK long bond yields down near historically low levels of debt settlement. “ In 2004, the global economy grew at the fastest rate in 30 years. Money creation by the Bank of Japan on an unprecedented scale was perhaps the most important factor responsible for that growth. In fact, ¥35 trillion could have made the difference between global relation and global deflation. How odd that it went unnoticed.”

Why Debt Settlement

As the empire matured, UKs developed new ideas and attitudes to go with it. We have already shown how they took on the beliefs of an imperial race, ready to mind everyone’s business but their own. Financially, their beliefs changed, too; people switched their attention from assets to cash flow, from balance sheets to monthly operating statements, from long-term wealth-building to paycheck-to-paycheck financing, from saving to spending, and from “just in case” to “just in time.” This shows the need of debt settlement.

Need of Debt Settlement

It was a flight to hazard that became more hazardous with every takeoff and landing. It was as if a strange new trade wind had been stirred up in the Pacific and blew across the country. Year after year, it blew stronger, until practically every tree and street sign, all across the country, leaned toward empire. Gradually, all of UK’s institutions and attitudes were bent by the new wind. The federal government ran a fairly tight ship until the Johnson and Reagan years, and then the wind caught it. Soon, it was under full sail, flying toward record deficits and unheard-of debts or debt settlement.