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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
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How the Rich Have Held the Fed Hostage to Get More Money for Themselves

17 September 2016 | Pago Pago, American Samoa
Kimball Corson
Here is the short version.

In the necessary context of huge income inequality, the Fed has been forced to increase M or the money supply and to lower interest rates to counteract the huge decline in V or velocity due to hoarding by the rich -- that is, their not spending most of their current income on current real investment or current consumption -- where MV=GDP.

The rich have held the Fed and the economy hostage by their hoarding. Hoarding, reflecting a high liquidity preference, reduces the average velocity of money. The Fed has had to react to the situation by increasing the money supplied by open market operations, QE and through those who borrow -- mostly the rich -- and by lowering interest rates (supposedly to induce lacking investment) which mostly just make borrowing cheap for the rich and increases secondary market stock and bond prices thereby further lining the pockets of the rich who hoard with and hold those assets. The rich are holding the Fed and the economy hostage in order to have the Fed enrich them.The rich don't do this consciously, but implicitly at a subconscious level they "understand" what is going on, just as a successful billiards player solves second order differential equations without consciously realizing it.

This could not happen without excessive income inequality creating those who can afford to hoard money in large enough quantities to matter. Most people live paycheck to paycheck or too close to it and spend almost all of their income on consumption. They cannot afford to hoard or hold anyone hostage to make them wealthier.

A heavy tax on cash, stocks and bonds would go a long way to stop this, as would income redistribution (perhaps using the proceeds of that tax). But few dare to be interested in any real economic solution.
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Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
Extra:
Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
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Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ