Neil Hrab: It's 'FDIC Friday' as U.S. bank failures grow

The end of the work week is generally welcomed, giving rise to the term "TGIF" -- Thank God it's Friday. But the expansion of the U.S. economic crisis has given rise to a new and more worrying acronym: "FDIC Friday."

FDIC is a reference to the Federal Deposit Insurance Corporation. This US government agency is charged with the task of limiting "the effect on the economy and the financial system when a bank or thrift institution fails," according to its website.

And "FDIC Friday" refers to the fact that Friday is usually the day of the week when the FDIC announces if a bank has failed. Twenty-two U.S. banks have failed so far this year.

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“Check out this link......Anyone know anything about this?”

Could very well happen that way. Heard about the Amero before, but never in so much detail. Found the whole scenario of declaring “Force Majeure” (Act of God) interesting and plausible.

The problem I had with his suggestions at the end was this: if you transfer your wealth to a foreign bank and convert your currency to, say, Swiss Francs, how do you make purchases at your local grocery story after the dollar has been demonetized? This is why I think you also need to invest in silver, preferably bags of silver coins (quarters or half dollars) to make everyday purchases.

if you transfer your wealth to a foreign bank and convert your currency to, say, Swiss Francs, how do you make purchases at your local grocery story after the dollar has been demonetized?

Same way that I buy groceries when I'm in Europe... with a credit card or with cash advances from an ATM. Your Swiss bank could issue you a Visa or Mastercard, and you could pay with that or draw out dollars from ATMs on an as-needed basis You'd undoubtedly get hit with foreign currency transaction fees (e.g., 75 cents + 1% or whatever), so I'm not saying that it makes economic sense, but you could do it.

http://video.google.com/videoplay?docid=-6281601603109010359&ei=B-YwSaj4CoeQrAKukNmMAQ&q=George+Reisman&hl=es

Link to a lecture by economist George Reisman: “Why Nazism Was Socialism, and Why Socialism is Totalitarian.”

One point Reisman brings up toward the beginning of the lecture is quite interesting. He mentions that wage and price controls introduce an element of RANDOMNESS into production that was never there under conditions of economic freedom. Price controls, for example, typically cause shortages (a situation that is normally dealt with by a government by imposing rationing). Under freedom, a shortage would normally cause the price to rise; the rise in price would increase profitability for producers to engage in producing that particular good; and the resulting increase in supply would then function to lower the price again.

But under price controls, the shortage cannot raise the price, so there can be no inducement for additional producers to produce that good. Since there’s no inducement for additional production, there’s no increase in supply, with a resultant decrease in price. What this means is that any increase in supply that might come along (e.g., from sudden government beneficence, or just plain luck), will temporarily relieve the shortage, but it will not decrease the profitability of the product by allowing the price to fall.

Shortages and price controls make possible RANDOM movements of supply with no effect on prices or profitability. It allows the expansion of production in one part of the economy (Reisman uses the example of “Pet Rocks”) at the expense of products somewhere else in the economy (e.g., medicines) with no effect on the prices (and therefore the profitability) of either good. Price controls would prevent the supply of medicines from getting more profitable as their supply decreased, and conversely, would prevent the supply of Pet Rocks from getting less profitable as their supply increased.

To deal with this sort of distortion, government would then have to dictate what goods are produced, in what quantities, and by what methods.

"Check out this link......Anyone know anything about this?"

Yes. I know what it is, and I know generally who is paying for it (importers, merchants, big international investment bankers,...).

The US dollar must fall and will fall. Social programs that keep potential domestic competition (working families) divided and down must be closed. We must produce again.

The deflated, common currency to come will lessen some of the worst of future trade imbalances (with the closest neighboring countries) and allow repayments of debts (better than defaults).

Certain special interests will destroy the USA, if they can, while keeping the dollar unnaturally, internationally high and putting off necessary defense moves (Iran) to keep their freight fuel low.

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