The Lee-Tseung Lead Out Theory

[Pirate88179]

The Devil obviously has no facts on how the US economy works.  He should actually do a little research before posting garbage like he has been posting.  So, we have 0 level physics and now 0 level economics as well.  What's next?

Oh, I forgot, 0 level farming by planting seeds on rocks.

Bill

[ltseung888]

Tseung, remember that the problem was created by stupid humans.  There is no complication.
…..
Just know that humans are stupid.  The stupid Governments allowed the stupid Bankers to earn money from thin air.  The more stupid Wall Street Gang created the giant C A S I N O.  They persuaded the stupid US Government not to monitor.  They persuaded the many stupid foreign governments to buy worthless papers and participate in this giant C A S I N O.  The investment banks issue such papers and run the C A S I N O.  This leads to the inevitable Financial Meltdown.

It is not difficult to understand â€" it is the creation of stupid humans.  If you want to solve the problem, let the average human know the stupidity.  Then lay out the new proposals.  If humans do not know the stupidity of their leaders, they will not listen.

Dear Devil,

Thank you for your enlightenment.  I was fishing yesterday and talking to a Banker.  The Banker expressed his pessimism.  He mentioned the possibility of many banks becoming negative worth.

Tseung: “How can Banks become negative worth?  They loan out money from thin air.”

Banker: “Many Banks buy and issue the now disgusted derivative papers.  A Bank cannot convert the papers it holds into cash.  It may have also issued the derivative papers itself.  When such papers are due, the Bank can redeem them or default.  If it redeems them, it does not have cash.  If it defaults, it may collapse.”

Tseung: “Does that mean collective action is required?”

Banker: “You know how difficult collective actions can be.  It involves multiple Governments.”

Tseung: “If a Bank cannot convert the financial papers of others that it holds into cash and tries to honor its obligations on its own financial papers, it may easily go bankrupt.  I understand the cause of the present credit crunch now.  Thank you.”

Lawrence Tseung
Director, Help Seedlings Innovate Foundation Limited

[ltseung888]

The solution for the present financial crisis is easy in China.

(1) Much of the foreign reserve in financial paper will vaporize.  Remember that money is only a number in a trusted institution.  Once USA has lost that trust, any number will be worthless.

(2) It is modern wealth - the quality and quantity of meaningful economic activity that counts.  When many factories fail (happening right now as they have no USA orders) and owe the workers money, the state should step in.  Pay the workers and take over the factories - produce goods for the vast China market.  Build these into sure-win businesses.

(3) It is easy because the property and equipment are obtained at low prices.  China can print new money if necessary.  This investment is much better than investing in the useless, disgusted, USA financial papers.

(4) Release the lead-out-energy and flying saucer technologies.  Develop them in multiple sites within China.  I shall be happy to go on a lecture tour to share my knowledge.

(5) Translate the two books.  The profits can be donated to stimulate the innovators.

[ltseung888]

Use the profit motive well.

The group of private and official 'rescuers' who take over the factories will be given strong financial incentives.  They can share in the success of the rescue operation. Produce a few models for others to learn from.

[Devil]

Tseung, focus on solving the following mess.

How should the Governments handle the discredited and disgusted Financial Papers from the many 'once trusted financial institutions'?

The former investment banks, Goldman Sache and Morgan Stanley are turning themselves into commercial banks.

What happens to the Papers they created?  The magnitude is many times that of Lehman Brothers?