Surviving Capitalism (Not) : Preparing To Asset-strip Local Government? The Fed’s Bizarre New Rules

We’ve lived so long under the spell of hierarchy—from god-kings to feudal lords to party bosses—that only recently have we awakened to see not only that “regular” citizens have the capacity for self-governance, but that without their engagement our huge global crises cannot be addressed. The changes needed for human society simply to survive, let alone thrive, are so profound that the only way we will move toward them is if we ourselves, regular citizens, feel meaningful ownership of solutions through direct engagement. Our problems are too big, interrelated, and pervasive to yield to directives from on high.
—Frances Moore Lappé, excerpt from Time for Progressives to Grow Up

Wednesday, September 10, 2014

Preparing To Asset-strip Local Government? The Fed’s Bizarre New Rules

Click here to access article by Ellen Brown from her blog Web of Debt.

The rule change may not have much effect in a crash, but where it will have a major effect is on the cost of credit, which will increase for municipal governments and decrease for corporate and financial institutions. The result will be to further shift power and financial resources from the public sector to the private sector.

I spent about an hour looking for mainstream financial analysts to address this development, and I found nothing. There were a couple who suggesting dumping municipal bonds, but for other reasons. I also could find nothing to suggest that municipal authorities were at all concerned. However, I cannot see any reason to disagree with the logic of Brown or the Martens on this issue.