Bail out bill - anyone catch the hidden "gems"?

[badshotbob]

Many people are sighing a staged and prompted sigh of relief after the bail out bill was passed. Whew. Our economy stays afloat!

Beyond the wooden arrow shafts and other fluff no one understands, these little gems are also tucked away nicely in this 400 some page document.

To be clear, I'll cut and paste and provide a link. See for yourself.

From this site:
http://www.dailypaul.com/node/66109

This bill moved the Financial Services Regulatory Relief Act of 2006 up by three years.

SEC. 128. ACCELERATION OF EFFECTIVE DATE.
Section 203 of the Financial Services Regulatory Relief Act of 2006 (12 U.S.C. 461 note) is amended by striking "˜"˜October 1, 2011"™"™ and inserting "˜"˜October 1, 2008"™"™.

So it's moved up by three years, so?

Other things have changed in this document that can only do irreparable damage, or is it usher in the end? Hmmm....

I'll let you read through the boring, but powerful words of this document to confirm for yourself, but to summarize, here's a cut and paste that can say it better than I.

The changes eliminated the requirement for banks to keep reserves of cash on hand to cover deposits, they abolished the Federal Reserve"™s Earnings Participation Account, they granted the ability for the Fed to create their own rules for distributing their earnings, and they granted the ability to make payments to foreign banks.

Another:

Banks don"™t have to have cash on hand.

The Fed does not have to maintain an Earnings Protection account for the supplemental reserve fees they charge banks which means they don"™t have to give any of the money back to those banks.

They now include foreign banks as institutions they can pay earnings to. Let"™s not forget, earnings is really just more American debt. Federal Reserve Notes are really debt, but that"™s a topic for another monster blog entry.

So, what does it mean? For starters, the result of this can only usher in a cashless, digital-money society. Scary, eh?

[badshotbob]

Apparently the "distraction" is far more wide-spread than I thought...



This could possibly be the most significant piece of financial news in the history of this country short of going off the gold standard, yet no one is interested in this topic.


Amazing.

[oldelkhunter]

Good reading Badshot....Thanks and yes it is scary as H

[WillCz]

Hindsight tells you that it obviously didn't help very much. I think the stock market is down 25-30% since it was signed.

[oldelkhunter]

Hindsight tells you that it obviously didn't help very much. I think the stock market is down 25-30% since it was signed.

What does the stock market have to do with institutions financial health?

[Alsatian]

I didn't see many snippets from the legislation. Other than the first rather obscure quote, the other stuff was some unidentified entity's interpretation of the legislation, so I don't feel terribly enlightened and/or confident in the purported information.

Relative to cashless/digital money . . . have you heard of M1, M2, M3? It has been a long time since the key currency abstraction was defined by either precious metals, coins, or dollar bills. I'm not saying this is good, but it isn't new and it does not represent a disruptive change but rather a gradual, incremental continuation of earlier trends.

[badshotbob]

ORIGINAL: Alsatian

I didn't see many snippets from the legislation. Other than the first rather obscure quote, the other stuff was some unidentified entity's interpretation of the legislation, so I don't feel terribly enlightened and/or confident in the purported information.

Then perhaps you may want to take a minute and look over the legislation.

You can find the Financial Services Regulatory Relief Act of 2006 here:
http://www.govtrack.us/congress/bill...bill=s109-2856

Relative to cashless/digital money . . . have you heard of M1, M2, M3? It has been a long time since the key currency abstraction was defined by either precious metals, coins, or dollar bills.

At the same time you missed the point, you stated exactly what is happening. But, let's look at your money supply data argument. The currency in M2 and M3 money relative to the currency in M1 money really isn't there, right (loans, interest, debt, etc.). So back to M1 - hard currency floating around. If the banks now have the ability to have ZERO cash on hand, what happens to the published M1 figures? What about all that money banks are made to pay into an earnings participation account? Where's that going to go now if the fed doesn't have to maintain such an account (and yet, still requires banks to pay into this acount)?

I'm not saying this is good, but it isn't new and it does not represent a disruptive change but rather a gradual, incremental continuation of earlier trends.

Again, kind of an oxymoron you presented there. In every aspect of the word and then some, this most certainly screams disruption in not only this nation, but the entire globe. The incremental continuation of earlier trends, btw, is exactly accurate - the trend to devalue the dollar (let's assume it currently isn't worthless and backed by gold) to lead to eventual and inevitable wide-spread economic collapse.

What happens then? New forms of currency brought into place perhaps? All of which are regulated by what entity? The same entity that just gave unlimited power in running the show? Or a new entity to control this currency? Think about it.