thelibertybeacon--2020-04-01--End The Shutdown!  [The Mises Institute]

End The Shutdown!  [The Mises Institute]

The Editors of The Mises Institute The shutdown of the American economy by government decree should end .
The lasting and far-reaching harms caused by this authoritarian precedent far outweigh those caused by the COVID-19 virus .
The American people – individuals , families , businesses – must decide for themselves how and when to reopen society and return to their daily lives .
Neither the Trump administration nor Congress has the legal authority to shut down American life absent at least baseline due process .
As Judge Andrew Napolitano recently wrote , business closures , restrictions on assembly and @ @ @ @ @ @ @ permissible under some magic “ emergency ” doctrine .
At a minimum , the federal government must show potential imminent harm by specific infected individuals at some form of hearing or trial .
These due process requirements are not suspended .
State and local officials may claim , or even possess , lawful police powers to shut down their communities .
We offer no analysis of such powers or claims under the myriad of state constitutions and authorizing legislation .
But they should resist exercising these powers .
The governor of Virginia , @ @ @ @ @ @ @ imposing a lengthy period of virtual house arrest .
We do not know , and can not yet know , how many Americans will become sick or die from the virus .
We do know that predictions regarding infection and death rates are highly unreliable .
Even actual deaths attributable to COVID-19 are not so easy to count , as Italy has discovered .
Age , general health , and comorbidity are difficult variables to assess , and people may die “ with ” the virus but not “ from ” it .
@ @ @ @ @ @ @ the lethality of the virus relative to previously known types of flu and colds .
To date , COVID-19 deaths in the US are far fewer than deaths in ordinary flu seasons or from past pandemics such as the H1N1 virus .
This understanding is critically important to put the virus , and the government response to it , in perspective .
Even during past pandemics , depressions , and world wars , Americans went to work .
In 1850 , French economist Frédéric Bastiat helped the world understand the “ seen and @ @ @ @ @ @ @ It is simple to see how quarantines and lockdowns will slow the spread of COVID-19 .
It is critical , but not so simple , to see the costs and harms caused by the economic shutdown .
Only then can we rationally understand the tradeoffs involved .
These questions are not rhetorical .
All of these things happened , to a degree , following the Great Recession of 2008 .
They will happen again—very soon—if we fail to act immediately .
Tomorrow , on April 1 , millions of Americans will not pay @ @ @ @ @ @ @ businesses will shutter , just as many large employers such as Macy ’ s , Kohl ’ s , airlines , and hotels already have .
Millions of service workers are unemployed already , but many more jobs will be lost .
The effects will cascade .
There is no conflict between humanitarian and economic concerns ; in fact they are flipsides of the same coin .
A poorer America will be a much less healthy America , one more vulnerable to future illness and disease .
Technology , modern medicine , and @ @ @ @ @ @ @ already we see entrepreneurs producing cheaper ventilators and doctors using cheap generic drugs with very promising results .
This local , bottom-up approach is the only effective way to confront the virus .
The federal government , as we see now and have in the past , is comically incapable of competence in times of crisis .
On a fundamental level , freedom really is more important than security—or , in this case , an illusion of security .
We all demonstrate this in our personal lives every day , from flying to @ @ @ @ @ @ @ unhealthy food and drink simply because we like it .
Security has never been the sole or even primary goal for a country born in rebellion .
Government can not decide what aspects of our lives are essential or nonessential .
The American people can not simply sit at home and wait for government checks written on funds that government does not have .
( TLB ) published this article with permission by The Editors of The Mises Institute and with our sincere gratitude for sharing this perspective .
Daisy Luther : How @ @ @ @ @ @ @ Last ?
230 Years Of Rights And Liberties Shredded : Why I Oppose The Lockdown The Liberty Beacon Project is now expanding at a near exponential rate , and for this we are grateful and excited !
But we must also be practical .
For 7 years we have not asked for any donations , and have built this project with our own funds as we grew .
We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent .
So we have just installed @ @ @ @ @ @ @ that you consider this when you visit them .
Nothing is too small .
We thank you for all your support and your considerations … ( TLB ) Disclaimer : TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner .
We are making such material available to our readers under the provisions of “ fair use ” in an effort to advance a better understanding of political , health , economic and social issues .
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If you wish to use copyrighted material for purposes other than “ fair use ” you must request permission from the copyright owner .

End The Shutdown!
The Editors of The Mises Institute
The shutdown of the American economy by government decree should end. The lasting and far-reaching harms caused by this authoritarian precedent far outweigh those caused by the COVID-19 virus. The American people – individuals, families, businesses – must decide for themselves how and when to reopen society and return to their daily lives.
Neither the Trump administration nor Congress has the legal authority to shut down American life absent at least baseline due process. As Judge Andrew Napolitano recently wrote, business closures, restrictions on assembly and movement, and quarantines are not constitutionally permissible under some magic “emergency” doctrine. At a minimum, the federal government must show potential imminent harm by specific infected individuals at some form of hearing or trial.
These due process requirements are not suspended.
State and local officials may claim, or even possess, lawful police powers to shut down their communities. We offer no analysis of such powers or claims under the myriad of state constitutions and authorizing legislation. But they should resist exercising these powers. The governor of Virginia, in particular, deserves admonition for unilaterally imposing a lengthy period of virtual house arrest.
We do not know, and cannot yet know, how many Americans will become sick or die from the virus. We do know that predictions regarding infection and death rates are highly unreliable. Even actual deaths attributable to COVID-19 are not so easy to count, as Italy has discovered. Age, general health, and comorbidity are difficult variables to assess, and people may die “with” the virus but not “from” it. It is also very difficult to assess the lethality of the virus relative to previously known types of flu and colds.
To date, COVID-19 deaths in the US are far fewer than deaths in ordinary flu seasons or from past pandemics such as the H1N1 virus. This understanding is critically important to put the virus, and the government response to it, in perspective. Even during past pandemics, depressions, and world wars, Americans went to work.
In 1850, French economist Frédéric Bastiat helped the world understand the “seen and unseen costs” of state policies. It is simple to see how quarantines and lockdowns will slow the spread of COVID-19. It is critical, but not so simple, to see the costs and harms caused by the economic shutdown.
Only then can we rationally understand the tradeoffs involved.
How many Americans suffering from other illnesses cannot see a doctor now? How many Americans will lose their jobs, their life savings, their retirement prospects, and their incalculable feeling of self-worth? How many will succumb to depression, drug or alcohol abuse, and suicide? How many will lose their homes, divorce their spouses, or suffer abuse? How many will never recover in their careers? How many small businesses, including the vital ones of doctors, dentists, and veterinarians, will vanish from your community? How many young people will “fail to launch”? Worse still, will grocery stores and gas stations remain open and stocked? Will crime spike? Will the American social fabric, already thin from politics, tear apart?
These questions are not rhetorical. All of these things happened, to a degree, following the Great Recession of 2008. They will happen again—very soon—if we fail to act immediately. Tomorrow, on April 1, millions of Americans will not pay rent or mortgages. Millions of small businesses will shutter, just as many large employers such as Macy’s, Kohl’s, airlines, and hotels already have. Millions of service workers are unemployed already, but many more jobs will be lost. The effects will cascade.
There is no conflict between humanitarian and economic concerns; in fact they are flipsides of the same coin. A poorer America will be a much less healthy America, one more vulnerable to future illness and disease. Technology, modern medicine, and market actors can address a virus; already we see entrepreneurs producing cheaper ventilators and doctors using cheap generic drugs with very promising results.
This local, bottom-up approach is the only effective way to confront the virus. The federal government, as we see now and have in the past, is comically incapable of competence in times of crisis.
On a fundamental level, freedom really is more important than security—or, in this case, an illusion of security. We all demonstrate this in our personal lives every day, from flying to driving to riding bicycles, to consuming unhealthy food and drink simply because we like it. Security has never been the sole or even primary goal for a country born in rebellion.
Government cannot decide what aspects of our lives are essential or nonessential. The American people cannot simply sit at home and wait for government checks written on funds that government does not have.
End the shutdown.
*********
(TLB) published this article with permission by The Editors of The Mises Institute and with our sincere gratitude for sharing this perspective.
(TLB) added some emphasis and pictorial content
Related articles from The Liberty Beacon:
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Stay tuned to …
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
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Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.


thelibertybeacon--2020-04-01--Unpayable Corporate Debt: A Brady Bond Solution for America’s Economic Crisis

Even before the Covid-19 crisis had slashed stock prices nearly in half since it erupted in January , financial markets were in an inherently unstable condition .
Years of quantitative easing had loaded so much money into stock and bond prices that stock price/earnings multiples and bond prices were far too high by any normal and reasonable historical standards .
Risk premiums have disappeared , with only a few basis points separating U.S. Treasury bills and corporate bonds .
The Fed ’ s Quantitative Easing since 2008 plus large companies using their earnings for stock buybacks drove the prices of @ @ @ @ @ @ @ .
The result was that markets already were teetering on the brink of fragility .
Any rise of normal interest to more normal conditions , or any external shock , was bound to crash the artificial values at which financial markets were priced .
The Fed ’ s policy was to perpetuate this situation for as long as possible by pumping in yet more credit .
But at near-zero interest rates , there was little that could be done .
A close parallel to this situation was the state of Third World debt @ @ @ @ @ @ @ announcement that it could not meet its foreign debt service was the shock that brought ugly financial reality into conflict with the assumption that somehow any government debt could be paid – even debts denominated in a foreign currency .
( Mexico and other countries had denominated their bonds in dollars in order to obtain lower interest rates than bonds denominated in their own currencies .
The assumption was that export earnings would provide hard currencies with which to redeem the bonds . )
The international financial system was rescued by the issue @ @ @ @ @ @ @ new bonds for old “ bad ” ones .
The capital value of these bonds was still far below the original debt , but they had the virtue of setting realistic levels by bringing the debt balance more in line with the actual ability of debtor countries to earn the dollars or other hard currencies needed to service bonds denominated in foreign currencies , mainly the US dollar .
The current crisis requires a similar write-down and recognition that fictitious price levels must give way to reality at some point .
In fact @ @ @ @ @ @ @ an illusion – the illusion that bond ( and stock ) prices could be sustained indefinitely simply by financial engineering , without an economic base capable of producing enough surplus revenue to justify existing bond and stock prices .
So attractive were the former unrealistic bond and stock levels that the markets are still in the “ denial phase ” hoping that the Coronavirus bailout may be used as an opportunity for yet further infusion of money into the financial markets .
But that merely postpones the inevitable adjustment to bring financial asset @ @ @ @ @ @ @ capabilities .
There certainly is a financial panic , and prices are not necessarily more realistic in a panic than they were in the bubble leading up to it .
The question is , what is a sustainable asset-price level ?
What needs to be supported is a realistic value of stocks and bonds .
Bad debts should be taken off the books , not supported in an attempt to recover the unrealistic pre-virus levels .
A successful way of coping with overpriced bonds and other debts Our situation is similar to Third @ @ @ @ @ @ @ Mexico triggered the Latin American debt bomb by explaining that it did not have the money to service its foreign bonds .
Prices for Third World bonds plummeted as investors calculated the dollar-earning power of countries that had to export goods and services ( or sell off their assets ) to pay their foreign-currency debts .
But their export proceeds simply could not cover the debt service that was owed .
The Sovereign Debt market was trading at such low prices that these foreign government bonds had become illiquid .
Unable to obtain @ @ @ @ @ @ @ financial state of affairs were threatened with political instability .
The Federal Reserve ’ s long Quantitative Easing and support of the financial markets has provided the appearance of stability .
This artificial life support has been viewed as saving banks and large companies , pension funds and state and local finance from insolvency .
But in doing this the Fed has been fighting what looks like a losing battle against reality .
The Fed has been supporting illusory values that can not be sustained .
The reality is that large swaths of @ @ @ @ @ @ @ have seen a proliferation of corporate bonds that can not be paid .
The fracking industry is only the most visible example .
Airlines , entertainment , hotels and retail companies are facing losses that threaten their solvency .
The Fed fears a free market when it comes to asset prices .
Or at least , it fears the political and economic consequences of withdrawing artificial support .
Reality forced the Fed into the mid-March support and already a larger intervention has been announced .
According to the New York Times , for @ @ @ @ @ @ @ Federal reserve announced that it would buy corporate bonds , including the riskiest investment-grade debt .
[ 1 ] In a March 17 statement it seems the Fed also intends to purchase stocks .
This is the “ Denial stage ” of the illusion that has resulted in crisis– the illusion that the stock and bond run-up could be turned from government manipulation into an actual market reality .
Where is this supposed to end ?
The Fed could buy up all the bonds – from corporate junk to state and municipal bonds @ @ @ @ @ @ @ from falling .
At an extreme , this business-as-usual scenario would lead to the Fed owning the junk bond market , municipals , and a large swath of the stock market .
This could have a silver lining : having concentrated the debt in its own hands , the Fed would then have a free hand to write off the debt , privatize the companies and start all over again with a lower debt overhead .
That is what China ’ s central bank has been doing : simply forgiving debt that is @ @ @ @ @ @ @ swap “ good ” public debt ( good in the sense that the government can print the money to pay ) for bad ( meaning unpayable ) debt .
Bringing financial markets in line with reality would mean writing off a large swath of corporate debt and realizing that much corporate equity “ wealth ” has been created by decapitalizing corporations in stock by-backs instead of investing in the country ’ s productive capacity , including decent wages for workers .
The American airline industry over the last decade has spent as much @ @ @ @ @ @ @ stock buybacks – giving financial wealth to their CEOs and share holders rather than investing in their business .
Such financial wealth , if not underpinned by real wealth , is built on quicksand , and it is now disappearing as asset markets plummet .
So stock buybacks and other artificial ways to “ create wealth ” were “ investments ” that have had drastically negative returns .
To implement a rationalization of bond and stock prices bringing them in line with reality , it has to be in the interest of holders @ @ @ @ @ @ @ are not worth as much as the price at which the Fed is supporting them will not appeal to bondholders as long as prices are artificially supported .
A bond-swap ( new good bonds for old bad bonds ) can only be achieved in a situation where it is more realistic and less risky to have a sound good bond than a low-priced ( or fictitiously high-priced ) bad bond .
Therefore , the Fed should let prices sink to their “ market ” level without interference .
The Fed is trying to @ @ @ @ @ @ @ , it has blocked a reasonable solution bringing financial asset prices in line with the realistic ability to carry debt .
Without the Fed ’ s support , bonds would need to be written down and stock prices would continue to plunge .
That would prepare the ground for something like the Brady Bond solution for Third World debts in the 1980s .
Latin American and other Third World bonds were selling around 25 cents on the dollar in the wake of Mexico ’ s announcement that it could not pay its scheduled @ @ @ @ @ @ @ recognition that Latin American governments couldn ’ t pay their bonds .
That was because these bonds were denominated in US dollars , and foreign governments can only print their own currency .
When they did this to throw domestic money onto foreign exchange markets to trade for hard currencies with which to pay their debts , their exchange rates plunged .
[ 2 ] Brady bonds addressed the problem by a swap of “ good bonds for old.
” The new bonds received IMF and other support , and were based on @ @ @ @ @ @ @ foreign exchange ( mainly U.S. dollars ) .
Bondholders could swap their old bonds , which were selling from 15 to 25 cents on the dollar , for new bonds priced higher than the market price but less than the original issue , but which at least were secure and less risky .
They were “ reality bonds.
” The government can organize something similar for corporate bonds after the market takes the artificial QE-added values out .
However , to create a market environment for such an alternative , the Fed must @ @ @ @ @ @ @ natural “ realistic ” level recognizing that the existing debt overhead can ’ t be paid .
Then , new “ reality bonds ” can be issued and the economy can start again with a non-crippling debt level .
As panic will take the market price below the reality price , the new debt instruments will have higher values than the market panic prices .
Alternatively , a good estimate of the real value of the bonds could be made with the debt written down to that level .
If that can be @ @ @ @ @ @ @ fall to a lower level .
Banks and major creditors would have to absorb much of the loss resulting from the runup of stock and bond prices to overvalued levels .
But something similar was a feature of the Brady reforms , which called for burden sharing by banks ( the London club ) and also governments ( the Paris club ) who had to provide debt relief .
If the debt-writedown makes banks insolvent , they can be nationalized .
When more normal conditions return , the banks can be privatized .
@ @ @ @ @ @ @ increase competition by breaking up “ banks too big to fail ” and to again separate commercial from investment banking .
In other words , nationalization would be a way to increase competition and restore Glass-Steagall stability to the financial system .
The alternative is that we will face reality without a solution .
UPDATE : Pam Martins reports that the Fed bought junk bonds AND stocks in the PDCF during the financial crisis of 2008 and thereafter .
See page 27 of the GAO audit of the Fed ’ s programs during @ @ @ @ @ @ @ link .
Pam also reports that there was a raging financial crisis occurring long before there was any threat from coronavirus in the U.S .
The Fed didn ’ t start its loans to Wall Street in March of 2020 .
It started them on September 17 , 2019 and had plowed trillions of dollars of cumulative loans into the trading houses of Wall Street ( primary dealers ) five months before the first death of coronavirus was reported in the U.S. You can follow her outstanding work on Wall Street on Parade @

Unpayable Corporate Debt: A Brady Bond Solution for America’s Economic Crisis
By: Michael Hudson
Even before the Covid-19 crisis had slashed stock prices nearly in half since it erupted in January, financial markets were in an inherently unstable condition. Years of quantitative easing had loaded so much money into stock and bond prices that stock price/earnings multiples and bond prices were far too high by any normal and reasonable historical standards. Risk premiums have disappeared, with only a few basis points separating U.S. Treasury bills and corporate bonds.
The Fed’s Quantitative Easing since 2008 plus large companies using their earnings for stock buybacks drove the prices of financial assets into a realm of unreality. The result was that markets already were teetering on the brink of fragility. Any rise of normal interest to more normal conditions, or any external shock, was bound to crash the artificial values at which financial markets were priced. The Fed’s policy was to perpetuate this situation for as long as possible by pumping in yet more credit. But at near-zero interest rates, there was little that could be done.
A close parallel to this situation was the state of Third World debt in the mid-1980s. Mexico’s announcement that it could not meet its foreign debt service was the shock that brought ugly financial reality into conflict with the assumption that somehow any government debt could be paid – even debts denominated in a foreign currency. (Mexico and other countries had denominated their bonds in dollars in order to obtain lower interest rates than bonds denominated in their own currencies. The assumption was that export earnings would provide hard currencies with which to redeem the bonds.)
The international financial system was rescued by the issue of Brady bonds – “good” new bonds for old “bad” ones. The capital value of these bonds was still far below the original debt, but they had the virtue of setting realistic levels by bringing the debt balance more in line with the actual ability of debtor countries to earn the dollars or other hard currencies needed to service bonds denominated in foreign currencies, mainly the US dollar.
The current crisis requires a similar write-down and recognition that fictitious price levels must give way to reality at some point. In fact, we have reached the end of an illusion – the illusion that bond (and stock) prices could be sustained indefinitely simply by financial engineering, without an economic base capable of producing enough surplus revenue to justify existing bond and stock prices.
So attractive were the former unrealistic bond and stock levels that the markets are still in the “denial phase” hoping that the Coronavirus bailout may be used as an opportunity for yet further infusion of money into the financial markets. But that merely postpones the inevitable adjustment to bring financial asset prices back in line with real economic capabilities.
There certainly is a financial panic, and prices are not necessarily more realistic in a panic than they were in the bubble leading up to it. The question is, what is a sustainable asset-price level? What needs to be supported is a realistic value of stocks and bonds. Bad debts should be taken off the books, not supported in an attempt to recover the unrealistic pre-virus levels.
A successful way of coping with overpriced bonds and other debts
Our situation is similar to Third World debt in the early 1980s after Mexico triggered the Latin American debt bomb by explaining that it did not have the money to service its foreign bonds. Prices for Third World bonds plummeted as investors calculated the dollar-earning power of countries that had to export goods and services (or sell off their assets) to pay their foreign-currency debts. But their export proceeds simply could not cover the debt service that was owed.
The Sovereign Debt market was trading at such low prices that these foreign government bonds had become illiquid. Unable to obtain further credit, countries confronted by this financial state of affairs were threatened with political instability.
The Federal Reserve’s long Quantitative Easing and support of the financial markets has provided the appearance of stability. This artificial life support has been viewed as saving banks and large companies, pension funds and state and local finance from insolvency. But in doing this the Fed has been fighting what looks like a losing battle against reality. The Fed has been supporting illusory values that cannot be sustained.
The reality is that large swaths of the post 2008 corporate bond market boom have seen a proliferation of corporate bonds that cannot be paid. The fracking industry is only the most visible example. Airlines, entertainment, hotels and retail companies are facing losses that threaten their solvency.
The Fed fears a free market when it comes to asset prices. Or at least, it fears the political and economic consequences of withdrawing artificial support. Reality forced the Fed into the mid-March support and already a larger intervention has been announced. According to the New York Times, for the first time in history, the Federal reserve announced that it would buy corporate bonds, including the riskiest investment-grade debt.[1] In a March 17 statement it seems the Fed also intends to purchase stocks.
This is the “Denial stage” of the illusion that has resulted in crisis– the illusion that the stock and bond run-up could be turned from government manipulation into an actual market reality.
Where is this supposed to end? The Fed could buy up all the bonds – from corporate junk to state and municipal bonds as a way to prevent their prices from falling. At an extreme, this business-as-usual scenario would lead to the Fed owning the junk bond market, municipals, and a large swath of the stock market.
This could have a silver lining: having concentrated the debt in its own hands, the Fed would then have a free hand to write off the debt, privatize the companies and start all over again with a lower debt overhead. That is what China’s central bank has been doing: simply forgiving debt that is owed to itself. The Fed would swap “good” public debt (good in the sense that the government can print the money to pay) for bad (meaning unpayable) debt.
Bringing financial markets in line with reality would mean writing off a large swath of corporate debt and realizing that much corporate equity “wealth” has been created by decapitalizing corporations in stock by-backs instead of investing in the country’s productive capacity, including decent wages for workers. The American airline industry over the last decade has spent as much as 96% of its cash on stock buybacks – giving financial wealth to their CEOs and share holders rather than investing in their business. Such financial wealth, if not underpinned by real wealth, is built on quicksand, and it is now disappearing as asset markets plummet. So stock buybacks and other artificial ways to “create wealth” were “investments” that have had drastically negative returns.
To implement a rationalization of bond and stock prices bringing them in line with reality, it has to be in the interest of holders of these securities. Acknowledging that bonds are not worth as much as the price at which the Fed is supporting them will not appeal to bondholders as long as prices are artificially supported. A bond-swap (new good bonds for old bad bonds) can only be achieved in a situation where it is more realistic and less risky to have a sound good bond than a low-priced (or fictitiously high-priced) bad bond.
Therefore, the Fed should let prices sink to their “market” level without interference. The Fed is trying to support the unsupportable. By doing this, it has blocked a reasonable solution bringing financial asset prices in line with the realistic ability to carry debt.
Without the Fed’s support, bonds would need to be written down and stock prices would continue to plunge. That would prepare the ground for something like the Brady Bond solution for Third World debts in the 1980s. Latin American and other Third World bonds were selling around 25 cents on the dollar in the wake of Mexico’s announcement that it could not pay its scheduled debt in 1982. There was widespread recognition that Latin American governments couldn’t pay their bonds. That was because these bonds were denominated in US dollars, and foreign governments can only print their own currency. When they did this to throw domestic money onto foreign exchange markets to trade for hard currencies with which to pay their debts, their exchange rates plunged.[2]
Brady bonds addressed the problem by a swap of “good bonds for old.” The new bonds received IMF and other support, and were based on what foreign countries actually could pay in foreign exchange (mainly U.S. dollars). Bondholders could swap their old bonds, which were selling from 15 to 25 cents on the dollar, for new bonds priced higher than the market price but less than the original issue, but which at least were secure and less risky. They were “reality bonds.”
The government can organize something similar for corporate bonds after the market takes the artificial QE-added values out. However, to create a market environment for such an alternative, the Fed must let bonds and stocks fall to their natural “realistic” level recognizing that the existing debt overhead can’t be paid. Then, new “reality bonds” can be issued and the economy can start again with a non-crippling debt level. As panic will take the market price below the reality price, the new debt instruments will have higher values than the market panic prices. Alternatively, a good estimate of the real value of the bonds could be made with the debt written down to that level. If that can be done, it would avoid a panic fall to a lower level.
Banks and major creditors would have to absorb much of the loss resulting from the runup of stock and bond prices to overvalued levels. But something similar was a feature of the Brady reforms, which called for burden sharing by banks (the London club) and also governments (the Paris club) who had to provide debt relief. If the debt-writedown makes banks insolvent, they can be nationalized. When more normal conditions return, the banks can be privatized. This would also provide an opportunity to increase competition by breaking up “banks too big to fail” and to again separate commercial from investment banking. In other words, nationalization would be a way to increase competition and restore Glass-Steagall stability to the financial system.
The alternative is that we will face reality without a solution.
UPDATE: Pam Martins reports that the Fed bought junk bonds AND stocks in the PDCF during the financial crisis of 2008 and thereafter. See page 27 of the GAO audit of the Fed’s programs during the 2007-2010 financial crisis located at this link.
Pam also reports that there was a raging financial crisis occurring long before there was any threat from coronavirus in the U.S. The Fed didn’t start its loans to Wall Street in March of 2020. It started them on September 17, 2019 and had plowed trillions of dollars of cumulative loans into the trading houses of Wall Street (primary dealers) five months before the first death of coronavirus was reported in the U.S. You can follow her outstanding work on Wall Street on Parade.
Notes: * Dirk Bezemer provided much help in this article. [1] Jeanna Smialek, “The Fed Goes All In With Unlimited Bond-Buying Plan,” The New York Times, March 23, 2020. This report adds: “Because the Fed cannot take on substantial credit risk itself, the Treasury Department backs its emergency lending, using money from a fund that contains just $95 billion. Treasury Secretary Steven Mnuchin on Sunday suggested that the new money in the Republican bill could be leveraged by the Fed to back some $4 trillion in financing.” [2] The situation was much like German reparations in the 1920s. (See Michael Hudson, Trade, Development and Foreign Debt).
••••
About the Author: Professor Michael Hudson is a veteran of Wall Street and Distinguished Research Professor of Economics at the University of Missouri at Kansas City (UMKC). He counsels governments on finance and tax policy, and gives presentations all over the world to groups reflecting diverse academic, economic and political constituencies.
••••
••••
••••
Stay tuned to …
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
••••
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.


thelibertybeacon--2020-04-01--Shelter in Place Orders – Things of Kings

The current application of State and local authority to mandate the closure of businesses and require the people to restrict their activities to a list of government approved venues under the threat of force and punishment , is antithetical to everything America was built upon .
These orders are arbitrary , deny due process , and are rife with unbridled discretion .
Arbitrariness is the quality of being “ determined by chance , whim , or impulse , and not by necessity , reason , or principle.
” A shelter in place order that requires places of worship to close @ @ @ @ @ @ @ attend for less than a few hours once a week , but then claims that Wal-Mart and liquor stores , where a limitless number of people come and go every day , all day may remain open , is completely arbitrary .
Where is the science , where is the reason that says that people sitting in a church are more susceptible to a virus than those who go to Walmart or the liquor store ?
The answer is simple , it doesn ’ t exist .
The decision to close the church @ @ @ @ @ @ @ vacation rental property , and not Walmart is based upon a whim and an impulse , not facts or reason .
By legal standard a government ’ s actions are arbitrary and capricious when they are founded upon unreasonable grounds or made with without any proper consideration of circumstances , deny due process and prejudice substantial rights .
Therefore , the government ’ s exercise of authority in these Shelter In Place Orders to pick and choose which businesses can stay open and which can not is by definition arbitrary and capricious .
@ @ @ @ @ @ @ which businesses can stay open and which ones can not is tantamount to a regulatory taking .
There is no warrant issued for the seizure of this property .
No mechanism for the business owner to challenge the government ’ s arbitrary determination to close their business .
When the government threatens a business owner or forcibly demands that business close , the business owner is being effectively deprived of the economic value of its property and the principal private use of that property .
Whenever a government takes private property for public @ @ @ @ @ @ @ require that business receive proper due process consideration followed by just compensation equaling a fair market value for that property .
These Shelter In Place orders neither secure due process nor do they even mention reimbursement of fair market value .
Every Constitution of every State in the Union , as well as the US Constitution , acknowledge the Rights to freedom of religion and to peaceably assemble as fundamental rights .
Many State Constitutions , as well as the US Constitution , describe these rights as “ inalienable rights ” or “ @ @ @ @ @ @ @ come as permissions from governments , but pre-exist all law and government .
These Rights are not the products of governments .
To the contrary , governments exist with sole purpose to secure these rights for the individual .
Inherent in the securing of these rights is the prohibition against government defining the parameters of these rights .
When the government can arbitrarily decide that the only “ legal ” assembly is one of ten people or less , there is no longer a right to peaceably assemble , but a permission granted @ @ @ @ @ @ @ One of the most essential reasons for the right to peaceably assemble is the power the assembly brings in the Right to Petition the Government for a Redress of Grievances .
It is a truly despotic government that can create unjust and unconstitutional activity and then also possess the power to set the limits and parameters upon which the people can protest those laws .
The very same can be said about the Right to freedom of religion .
When a government can tell a body of people when , where , and @ @ @ @ @ @ @ in their church , that government is defining religion and that is antithetical to everything that America is founded upon .
What is even worse , these Shelter in Place Orders not only do all of that , many have also determined that the definition of freedom of religion can be relegated and confined to an internet broadcast and all those who are unable to meet this order are simply denied their right to worship and threatened by force of government to have no assembly whatsoever .
Finally , these Shelter In Place @ @ @ @ @ @ @ with the order will result in civil or criminal penalties .
Yet these orders do not define the elements of their newly invented crime , the evidence necessary to prove violation of the order , nor do they establish the affirmative defenses available to the accused .
In their attempts to “ ensure enforcement ” of their orders , those governments have established those terms with a complete disregard for due process , evidentiary rules , and the Rights of the people to be innocent until proven guilty .
As these orders stand @ @ @ @ @ @ @ officer to make the determination of what is proper evidence of compliance and what is insufficient evidence that equates to a violation : American courts call that “ unbridled discretion ” and for decades have held that to be fundamentally unjust .
What makes all of this so very tragic is that America ’ s founders pledged their lives , fortunes , and sacred honor to throw off the very artifices of government we are experiencing today .
James Otis , Jr , a lawyer whom our founders termed as the “ midwife @ @ @ @ @ @ @ legal battle against the laws of Parliament that attempted to legally authorize what our governors , county commissioners , city councils , and mayors are doing today .
He referred to these laws as “ the worst instrument of arbitrary power , the most destructive of English liberty and the fundamental principles of law , that ever was found in an English law-book.
” In an America that once declared independence from Kings forever , we have all too quickly succumbed to king-like authority under the wiles of fear and necessity .
William @ @ @ @ @ @ @ us that “ necessity is the plea for every infringement of human freedom .
It is the argument of tyrants .
It is the creed of slaves.
” Let ’ s be clear , I am not asserting that the individual should not choose a behavior that respects the most prudent measures available to ensure the best health and welfare of their neighbor .
But when a government uses threat and force to compel behavior and the Rights of the people are ignored and due process denied under the pretense of necessity , @ @ @ @ @ @ @ welfare of the people is not respected and the body of the people are in danger of becoming enslaved by the very government they ’ ve elected to secure their rights .
Samuel Adams said : At stake are the inherent rights to Freedom of Religion , Freedom of Speech , Freed of Press , Right to Peaceably Assemble , Right to Petition Government For a Redress of Grievances , Rights of Due Process , and Security in Personal Property .
These rights are simply summarized as The Natural Rights of every individual @ @ @ @ @ @ @ of Nature .
America was not constructed upon the principle of National Security or power of National Emergency ; America was built upon the Principle of Liberty .
Our founders understood the eternal and essential nature of the principles of Liberty and believed that the preservation of these Rights was more important that life itself .
• None “ Liberty must at all hazards be supported… ” John Adams , 1765 • None “ What is it that gentlemen wish ?
What would they have ?
Is life so dear , or peace @ @ @ @ @ @ @ at the price of chains and slavery ?
Forbid it , Almighty God !
I know not what course others may take ; but as for me , give me liberty or give me death !
” Patrick Henry , 1775 • None “ Those who would give up essential Liberty , to purchase a little temporary Safety , deserve neither Liberty nor Safety.
” Benjamin Franklin , 1755 Perhaps it is time we begin to educate ourselves on the Constitutional Republic we legally have and the principles that truly make America great @ @ @ @ @ @ @ we are being subjected to .
If you would like a better understanding of how our Constitution created our federal judiciary , our online educational program called Liberty First University , will give you that understanding free from historical revision and political propaganda .
They have both online courses on the judiciary and DVDS available for in home , church , and group meetings .
You can find out more by clicking on the image below .
Check out The KrisAnne Hall Show and subscribe by clicking on the link below :

Shelter in Place Orders – Things of Kings
Contributed to TLB by: KrisAnne Hall, JD
The current application of State and local authority to mandate the closure of businesses and require the people to restrict their activities to a list of government approved venues under the threat of force and punishment, is antithetical to everything America was built upon. These orders are arbitrary, deny due process, and are rife with unbridled discretion.
Arbitrariness is the quality of being “determined by chance, whim, or impulse, and not by necessity, reason, or principle.” A shelter in place order that requires places of worship to close, where a finite number of people attend for less than a few hours once a week, but then claims that Wal-Mart and liquor stores, where a limitless number of people come and go every day, all day may remain open, is completely arbitrary. Where is the science, where is the reason that says that people sitting in a church are more susceptible to a virus than those who go to Walmart or the liquor store? The answer is simple, it doesn’t exist. The decision to close the church, a shoe store, or private vacation rental property, and not Walmart is based upon a whim and an impulse, not facts or reason. By legal standard a government’s actions are arbitrary and capricious when they are founded upon unreasonable grounds or made with without any proper consideration of circumstances, deny due process and prejudice substantial rights. Therefore, the government’s exercise of authority in these Shelter In Place Orders to pick and choose which businesses can stay open and which cannot is by definition arbitrary and capricious.
A government’s arbitrary determination on which businesses can stay open and which ones cannot is tantamount to a regulatory taking. There is no warrant issued for the seizure of this property. No mechanism for the business owner to challenge the government’s arbitrary determination to close their business. When the government threatens a business owner or forcibly demands that business close, the business owner is being effectively deprived of the economic value of its property and the principal private use of that property. Whenever a government takes private property for public purpose, both State and US Constitutions require that business receive proper due process consideration followed by just compensation equaling a fair market value for that property. These Shelter In Place orders neither secure due process nor do they even mention reimbursement of fair market value.
Every Constitution of every State in the Union, as well as the US Constitution, acknowledge the Rights to freedom of religion and to peaceably assemble as fundamental rights. Many State Constitutions, as well as the US Constitution, describe these rights as “inalienable rights” or “Natural Rights” meaning they do not come as permissions from governments, but pre-exist all law and government. These Rights are not the products of governments. To the contrary, governments exist with sole purpose to secure these rights for the individual. Inherent in the securing of these rights is the prohibition against government defining the parameters of these rights. When the government can arbitrarily decide that the only “legal” assembly is one of ten people or less, there is no longer a right to peaceably assemble, but a permission granted under certain limited and confining terms. One of the most essential reasons for the right to peaceably assemble is the power the assembly brings in the Right to Petition the Government for a Redress of Grievances. It is a truly despotic government that can create unjust and unconstitutional activity and then also possess the power to set the limits and parameters upon which the people can protest those laws. The very same can be said about the Right to freedom of religion. When a government can tell a body of people when, where, and how many can “legally” meet in their church, that government is defining religion and that is antithetical to everything that America is founded upon. What is even worse, these Shelter in Place Orders not only do all of that, many have also determined that the definition of freedom of religion can be relegated and confined to an internet broadcast and all those who are unable to meet this order are simply denied their right to worship and threatened by force of government to have no assembly whatsoever.
Finally, these Shelter In Place Orders often establish that failure to comply with the order will result in civil or criminal penalties. Yet these orders do not define the elements of their newly invented crime, the evidence necessary to prove violation of the order, nor do they establish the affirmative defenses available to the accused. In their attempts to “ensure enforcement” of their orders, those governments have established those terms with a complete disregard for due process, evidentiary rules, and the Rights of the people to be innocent until proven guilty. As these orders stand, it is up to the individual officer to make the determination of what is proper evidence of compliance and what is insufficient evidence that equates to a violation: American courts call that “unbridled discretion” and for decades have held that to be fundamentally unjust.
What makes all of this so very tragic is that America’s founders pledged their lives, fortunes, and sacred honor to throw off the very artifices of government we are experiencing today. James Otis, Jr, a lawyer whom our founders termed as the “midwife to liberty,” brought a valiant legal battle against the laws of Parliament that attempted to legally authorize what our governors, county commissioners, city councils, and mayors are doing today. He referred to these laws as “the worst instrument of arbitrary power, the most destructive of English liberty and the fundamental principles of law, that ever was found in an English law-book.” In an America that once declared independence from Kings forever, we have all too quickly succumbed to king-like authority under the wiles of fear and necessity. William Pitt, the Younger would likely remind us that “necessity is the plea for every infringement of human freedom. It is the argument of tyrants. It is the creed of slaves.”
Let’s be clear, I am not asserting that the individual should not choose a behavior that respects the most prudent measures available to ensure the best health and welfare of their neighbor. But when a government uses threat and force to compel behavior and the Rights of the people are ignored and due process denied under the pretense of necessity, the people are not safe, the welfare of the people is not respected and the body of the people are in danger of becoming enslaved by the very government they’ve elected to secure their rights. Samuel Adams said:
“No people will tamely surrender their Liberties, nor can any be easily subdued, when knowledge is diffused and virtue is preserved.”
At stake are the inherent rights to Freedom of Religion, Freedom of Speech, Freed of Press, Right to Peaceably Assemble, Right to Petition Government For a Redress of Grievances, Rights of Due Process, and Security in Personal Property. These rights are simply summarized as The Natural Rights of every individual and are derived from the First Law of Nature.
“Among the natural rights of the Colonists are these: First, a right to life; Secondly, to liberty; Thirdly, to property; together with the right to support and defend them in the best manner they can. These are evident branches of, rather than deductions from, the duty of self-preservation, commonly called the first law of nature.” Samuel Adams, 1772
America was not constructed upon the principle of National Security or power of National Emergency; America was built upon the Principle of Liberty. Our founders understood the eternal and essential nature of the principles of Liberty and believed that the preservation of these Rights was more important that life itself.
“Liberty must at all hazards be supported…” John Adams, 1765
“What is it that gentlemen wish? What would they have? Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!” Patrick Henry, 1775
“Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.” Benjamin Franklin, 1755
Perhaps it is time we begin to educate ourselves on the Constitutional Republic we legally have and the principles that truly make America great, instead of tolerating the authoritarian government we are being subjected to.
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See more articles by KrisAnne HERE •••• Don’t forget to SUBSCRIBE FOR FREE! so you can get the “Daily Journal” delivered right to your “door” everyday! Subscribe Here: Daily Journal Delivery •••• TLB also highly recommends you click on the link below for much more vital information:
Guarding Our Future From Indoctrination By KrisAnne Hall It is hard to deny that our public schools do more indoctrinating than educating. Let us help you protect their future with the proper education to counter what they are being forced to learn. If we fail in this endeavor, all the progress we make will be for nothing, the enemy will have their victory […] •••• Get Informed – Get Equipped – Get Inspired Because “Liberty must be defended at all hazards.” John Adams
If you would like a better understanding of how our Constitution created our federal judiciary, our online educational program called Liberty First University, will give you that understanding free from historical revision and political propaganda. They have both online courses on the judiciary and DVDS available for in home, church, and group meetings.
You can find out more by clicking on the image below.
Check out The KrisAnne Hall Show and subscribe by clicking on the link below:
••••
••••
Stay tuned to …
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
••••
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.


thelibertybeacon--2020-04-02--Thousands of U.S. banks may sit out small-business rescue plan on liability worries

Thousands of U.S. banks may sit out small-business rescue plan on liability worries WASHINGTON – Thousands of U.S. banks , including some of the country ’ s largest lenders , have said they may not participate in the federal government ’ s small-business rescue program due to concerns about taking on too much legal and financial risk , five people with direct knowledge of industry discussions told Reuters .
Seeking to help millions of small businesses that have dramatically curtailed operations or shut down altogether during the coronavirus pandemic , Congress included $ 349 billion for small firms in its @ @ @ @ @ @ @ week .
Small businesses , which will rely on banks to get the funds , employ about half of U.S. private sector employees , according to the Small Business Administration website .
Borrowers can apply for the loans through participating banks starting from Friday and until June 30 .
Trump administration officials have said they want the loans disbursed within days .
But representatives of some major lenders , as well as thousands of community lenders , have expressed serious reservations about participating in the scheme in its current form and called that @ @ @ @ @ @ @ of the above concerns into consideration , many banks have already indicated that they will not be able to use the Program under the current terms , ” the Independent Community Bankers of America wrote to the U.S. Treasury and Small Business Administration , which are jointly administering the loans program , on Wednesday .
( TLB ) Editors : Below you will find additional facts and comments to consider about the stimulus package and this story .
Tonight at midnight , the most critical – if hardly biggest – part of the @ @ @ @ @ @ @ stimulus is expected to begin : that ’ s when small and medium business with 500 employees or less can request a loan of up to 2.5x the average monthly payroll ( capped at $ 10 million ) , meant to buy cash-strapped companies just under 3 months in liquidity .
As we discussed previously , the loans which are packaged under the SBA ’ s Paycheck Protection Program carry a 0.5 % interest rate , and would be forgiven if their proceeds are used toward operational uses such as payrolls , utilities @ @ @ @ @ @ @ , getting these loans into the hands of America ’ s 30 million small businesses is absolutely critical : they employ about half of U.S. private sector employees , according to the Small Business Administration website .
There is just one problem : with just hours to go until millions in small businesses across the nation scramble to apply for much needed funding , the program appears to be on the verge of collapse amid what appears to be sheer chaos between the Treasury , the Small Business Administration , and the various @ @ @ @ @ @ @ loan the action money .
One reason why the program is woefully unprepared for a Friday midnight rollout is that banks that haven ’ t underwritten SBA loans before will need to get onboarded in the system .
However , as Politico reports , as of last night , there was no application available for banks to do this , and as CNBC ’ s Kayla Tausche adds , Treasury remains committed to originating these loans beginning tomorrow , despite hiccups .
But wait there ’ s more : as CNBC ’ s @ @ @ @ @ @ @ familiar with the Paycheck Protection Program loans rolling out tomorrow says official guidance for banks is not yet finalized ” with Kayla Tausche adding that in addition to general guidance , banks are asking Treasury for two specific changes to the small biz program : • Smaller banks want higher interest rate so they don ’ t lose money • Big banks want “ know your customer ” rules waived so they can lend to co ’ s they haven ’ t worked with The bottom line is ‘ this hose ’ has @ @ @ @ @ @ @ need removed before it can water the ‘ money tree.
’ Tyler at ZH put it into perspective today with his article headline : “ It ’ s A DISASTER Waiting To Happen ” : Hours Before Its Start , The Small Business Bailout Is On Verge Of Collapse ” .
( TLB ) The Liberty Beacon Project is now expanding at a near exponential rate , and for this we are grateful and excited !
But we must also be practical .
For 7 years we have not asked for any donations @ @ @ @ @ @ @ our own funds as we grew .
We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent .
So we have just installed donation buttons on our websites and ask that you consider this when you visit them .
Nothing is too small .
We thank you for all your support and your considerations … ( TLB ) Disclaimer : TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner .
We are making such @ @ @ @ @ @ @ provisions of “ fair use ” in an effort to advance a better understanding of political , health , economic and social issues .
The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes .
If you wish to use copyrighted material for purposes other than “ fair use ” you must request permission from the copyright owner .

Thousands of U.S. banks may sit out small-business rescue plan on liability worries
Sources Report
Reuters
WASHINGTON – Thousands of U.S. banks, including some of the country’s largest lenders, have said they may not participate in the federal government’s small-business rescue program due to concerns about taking on too much legal and financial risk, five people with direct knowledge of industry discussions told Reuters.
Seeking to help millions of small businesses that have dramatically curtailed operations or shut down altogether during the coronavirus pandemic, Congress included $349 billion for small firms in its $2 trillion stimulus package passed last week. Small businesses, which will rely on banks to get the funds, employ about half of U.S. private sector employees, according to the Small Business Administration website.
Borrowers can apply for the loans through participating banks starting from Friday and until June 30. Trump administration officials have said they want the loans disbursed within days.
But representatives of some major lenders, as well as thousands of community lenders, have expressed serious reservations about participating in the scheme in its current form and called that deadline totally unrealistic.
***
“Taking all of the above concerns into consideration, many banks have already indicated that they will not be able to use the Program under the current terms,” the Independent Community Bankers of America wrote to the U.S. Treasury and Small Business Administration, which are jointly administering the loans program, on Wednesday.
(TLB) Editors: Below you will find additional facts and comments to consider about the stimulus package and this story.
More from ZeroHedge
Tonight at midnight, the most critical – if hardly biggest – part of the Fed’s $2 trillion fiscal stimulus is expected to begin: that’s when small and medium business with 500 employees or less can request a loan of up to 2.5x the average monthly payroll (capped at $10 million), meant to buy cash-strapped companies just under 3 months in liquidity. As we discussed previously, the loans which are packaged under the SBA’s Paycheck Protection Program carry a 0.5% interest rate, and would be forgiven if their proceeds are used toward operational uses such as payrolls, utilities, and rent.
Needless to say, getting these loans into the hands of America’s 30 million small businesses is absolutely critical: they employ about half of U.S. private sector employees, according to the Small Business Administration website.
There is just one problem: with just hours to go until millions in small businesses across the nation scramble to apply for much needed funding, the program appears to be on the verge of collapse amid what appears to be sheer chaos between the Treasury, the Small Business Administration, and the various commercial banks that will be tasked to loan the action money.
One reason why the program is woefully unprepared for a Friday midnight rollout is that banks that haven’t underwritten SBA loans before will need to get onboarded in the system. However, as Politico reports, as of last night, there was no application available for banks to do this, and as CNBC’s Kayla Tausche adds, Treasury remains committed to originating these loans beginning tomorrow, despite hiccups.
But wait there’s more: as CNBC’s Kate Rogers reports, an “official familiar with the Paycheck Protection Program loans rolling out tomorrow says official guidance for banks is not yet finalized” with Kayla Tausche adding that in addition to general guidance, banks are asking Treasury for two specific changes to the small biz program:
Smaller banks want higher interest rate so they don’t lose money
Big banks want “know your customer” rules waived so they can lend to co’s they haven’t worked with
***
The bottom line is ‘this hose’ has a number of ‘kinks’ that need removed before it can water the ‘money tree.’ Tyler at ZH put it into perspective today with his article headline :“It’s A DISASTER Waiting To Happen”: Hours Before Its Start, The Small Business Bailout Is On Verge Of Collapse”. (TLB)
••••
••••
Stay tuned to …
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
••••
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.


thelibertybeacon--2020-04-02--Announcing the Launch of TLB Projects Latest Website … MOM on the RIGHT

Announcing the launch of TLB Projects latest website … MOM on the RIGHT ( MOTR ) MOM on the RIGHT is the brain-child of Corine Gatti-Santillo , who also just happens to be the site Director , an Author , and the MOTR Show Host .
This brings the number of female TLB project site directors to three … equal to the number of male site directors for all who would ask .
Corine has extensive experience in both the operation and mindset of MainStream Media ( MSM ) having worked for them at one point .
This knowledge combined @ @ @ @ @ @ @ make her a valuable individual not only to TLB … but in fact to all of us .
The killer combo of Conservatism , knowledge , attitude and being female ( more trusted than their male counterparts in most surveys ) puts MOM on the RIGHT in a position to grow very quickly in scope and reach .
Corine has already put out the invitation to all you Conservative and Independent Ladies out there ( actually all are accepted ) … if you have an article you feel needs to see the light @ @ @ @ @ @ @ the site .
OH Yea … One more thing … Today , April 2nd , is not only the public launch of MOTR … it also Corine ’ s birthday !
Visit the MOM on the RIGHT website here The Liberty Beacon Project is now expanding at a near exponential rate , and for this we are grateful and excited !
But we must also be practical .
For 7 years we have not asked for any donations , and have built this project with our own funds as we grew .
We @ @ @ @ @ @ @ due to the large number of websites and projects we represent .
So we have just installed donation buttons on our websites and ask that you consider this when you visit them .
Nothing is too small .
We thank you for all your support and your considerations … ( TLB ) Comment Policy : As a privately owned web site , we reserve the right to remove comments that contain spam , advertising , vulgarity , threats of violence , racism , or personal/abusive attacks on other users .
This also applies @ @ @ @ @ @ @ than one alias , or just intentional mischief .
Enforcement of this policy is at the discretion of this websites administrators .
Repeat offenders may be blocked or permanently banned without prior warning .
Disclaimer : TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner .
We are making such material available to our readers under the provisions of “ fair use ” in an effort to advance a better understanding of political , health , economic and social issues .
The material @ @ @ @ @ @ @ to those who have expressed a prior interest in receiving it for research and educational purposes .
If you wish to use copyrighted material for purposes other than “ fair use ” you must request permission from the copyright owner .

Announcing the launch of TLB Projects latest website … MOM on the RIGHT (MOTR)
By TLB Project founder and managing Director: Roger Landry (TLB)
MOM on the RIGHT is the brain-child of Corine Gatti-Santillo, who also just happens to be the site Director, an Author, and the MOTR Show Host. This brings the number of female TLB project site directors to three … equal to the number of male site directors for all who would ask.
Corine has extensive experience in both the operation and mindset of MainStream Media (MSM) having worked for them at one point. This knowledge combined with her expert research into vital topics make her a valuable individual not only to TLB … but in fact to all of us.
The killer combo of Conservatism, knowledge, attitude and being female (more trusted than their male counterparts in most surveys) puts MOM on the RIGHT in a position to grow very quickly in scope and reach.
Corine has already put out the invitation to all you Conservative and Independent Ladies out there (actually all are accepted) … if you have an article you feel needs to see the light of day … Please contact her on the site.
Please note that this is an informal discussion that was recorded via telephone, so the audio may leave a little bit to be desired … BUT the conversation is clear and the information understandable.
OH Yea … One more thing … Today, April 2nd , is not only the public launch of MOTR … it also Corine’s birthday!
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Watch this website launch discussion …
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Visit the MOM on the RIGHT website here
••••
More about Corine at:
Website •••• facebook •••• Twitter
••••
••••
Stay tuned to …
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
••••
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.


thelibertybeacon--2020-04-02--Schiff calls for Commission Investigation on Coronavirus

If at first you don ’ t succeed…Impeachment frontman Schiff mulls 9/11-like ’ nonpartisan commission ’ on Coronavirus House Democrat Adam Schiff has called for a ‘ nonpartisan ’ probe modeled after the 9/11 Commission to find out what went wrong with the US response to Covid-19 , an inquiry that will no doubt lead to President Donald Trump .
Schiff , who chairs the House intelligence committee , told the Washington Post about his plans in an interview , pledging to introduce a bill that would enact a nonpartisan commission to study “ our mistakes ” in dealing with @ @ @ @ @ @ @ work , he said , would have to wait until after the crisis , but he assured the outlet his committee was already reviewing “ intelligence materials ” pertaining to the pandemic .
The California Democrat would seem an unlikely pick to head a nonpartisan commission , however , given that he led the undeniably and extremely partisan impeachment inquiry against Trump that began in December and fizzled out in February – spanning the period in which the Trump administration ’ s response to the coronavirus began .
As the entire US political @ @ @ @ @ @ @ minutiae of the impeachment proceedings , people were getting sick and dying of a novel coronavirus that barely rated a mention in between the pageantry unfolding on Capitol Hill .
Schiff and the Democrats had their plate full with theatrical hearings and grandstanding about the threat posed to capital-D Democracy by the Bad Orange Man .
A House Foreign Affairs subcommittee only got around to holding a hearing on coronavirus after Trump ’ s acquittal in the Senate , in early February .
The partisan venom swirling in the Democrat-controlled House after it @ @ @ @ @ @ @ of abuse of power and obstruction of Congress certainly didn ’ t dissipate with that acquittal , however .
It has been clear from the rhetoric of House Speaker Nancy Pelosi and other Democratic leaders condemning Trump ’ s handling of the coronavirus crisis that they would like another bite at the apple .
A ‘ nonpartisan ’ commission hand-picked by Schiff would be a golden opportunity to definitively pin the responsibility on the Trump administration .
Schiff ’ s interview with the Post hints at just such an intention , toying with @ @ @ @ @ @ @ warnings because of concerns about the impact of the virus on his reelection campaign.
” Schiff is far from the first to compare the coronavirus outbreak to 9/11 , and will certainly not be the last .
Beyond the fact that the two events are responsible for massive numbers of American casualties [ Alleged numbers of casualties related to Coronavirus have not been confirmed .
( TLB ) ed . ]
, both also led to unprecedented incursions on Americans ’ civil liberties and an epidemic of buck-passing , with every official in @ @ @ @ @ @ @ someone else .
In both cases , those in power insisted there was no way they could have seen the crisis coming ; in both cases , they had plenty of advance notice , from whistleblowers in one or simply from reading the news in the other .
The 9/11 Commission was widely panned for its members ’ conflicts of interest , for its impotence in the face of perceived stonewalling by intelligence agencies and the Pentagon , and for failing to follow up on important aspects of the event , including the @ @ @ @ @ @ @ the collapse of the Salomon Brothers building .
Many both inside and outside of government , including victims ’ families , have demanded a new investigation , with the 9/11 Commission report setting a low bar for future cases .
Democrats failed to impeach Trump , but they won ’ t give up trying – it ’ s all they ’ ve got TLB published this article from RT-USA News as written by Helen Buyniski , with our thanks for this perspective .
The Liberty Beacon Project is now expanding at a near @ @ @ @ @ @ @ are grateful and excited !
But we must also be practical .
For 7 years we have not asked for any donations , and have built this project with our own funds as we grew .
We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent .
So we have just installed donation buttons on our websites and ask that you consider this when you visit them .
Nothing is too small .
We thank you for all your support and your considerations … @ @ @ @ @ @ @ contain copyrighted material the use of which has not always been specifically authorized by the copyright owner .
We are making such material available to our readers under the provisions of “ fair use ” in an effort to advance a better understanding of political , health , economic and social issues .
The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes .
If you wish to use copyrighted material for purposes other than “ fair use @ @ @ @ @ @ @ copyright owner .

If at first you don’t succeed…Impeachment frontman Schiff mulls 9/11-like ’nonpartisan commission’ on Coronavirus
…an inquiry that will no doubt lead to President Donald Trump
Helen Buyniski
House Democrat Adam Schiff has called for a ‘nonpartisan’ probe modeled after the 9/11 Commission to find out what went wrong with the US response to Covid-19, an inquiry that will no doubt lead to President Donald Trump.
Schiff, who chairs the House intelligence committee, told the Washington Post about his plans in an interview, pledging to introduce a bill that would enact a nonpartisan commission to study “our mistakes” in dealing with the epidemic. The commission’s work, he said, would have to wait until after the crisis, but he assured the outlet his committee was already reviewing “intelligence materials” pertaining to the pandemic.
After Pearl Harbor and 9/11, we looked at what went wrong to learn from our mistakes. Once we’ve recovered, we need a nonpartisan commission to review our response and how we can better prepare for the next pandemic. I’m working on a bill to do that.https://t.co/uqO3BwVldN — Adam Schiff (@RepAdamSchiff) April 1, 2020
The California Democrat would seem an unlikely pick to head a nonpartisan commission, however, given that he led the undeniably and extremely partisan impeachment inquiry against Trump that began in December and fizzled out in February – spanning the period in which the Trump administration’s response to the coronavirus began.
As the entire US political and media apparatus focused on dissecting the minutiae of the impeachment proceedings, people were getting sick and dying of a novel coronavirus that barely rated a mention in between the pageantry unfolding on Capitol Hill. Schiff and the Democrats had their plate full with theatrical hearings and grandstanding about the threat posed to capital-D Democracy by the Bad Orange Man. A House Foreign Affairs subcommittee only got around to holding a hearing on coronavirus after Trump’s acquittal in the Senate, in early February.
The partisan venom swirling in the Democrat-controlled House after it voted to impeach the president on charges of abuse of power and obstruction of Congress certainly didn’t dissipate with that acquittal, however. It has been clear from the rhetoric of House Speaker Nancy Pelosi and other Democratic leaders condemning Trump’s handling of the coronavirus crisis that they would like another bite at the apple.
A ‘nonpartisan’ commission hand-picked by Schiff would be a golden opportunity to definitively pin the responsibility on the Trump administration. Schiff’s interview with the Post hints at just such an intention, toying with the idea that Trump “discounted intelligence warnings because of concerns about the impact of the virus on his reelection campaign.”
Schiff is far from the first to compare the coronavirus outbreak to 9/11, and will certainly not be the last. Beyond the fact that the two events are responsible for massive numbers of American casualties [Alleged numbers of casualties related to Coronavirus have not been confirmed. (TLB) ed.] , both also led to unprecedented incursions on Americans’ civil liberties and an epidemic of buck-passing, with every official in a position of responsibility scrambling to blame someone else. In both cases, those in power insisted there was no way they could have seen the crisis coming; in both cases, they had plenty of advance notice, from whistleblowers in one or simply from reading the news in the other.
The 9/11 Commission was widely panned for its members’ conflicts of interest, for its impotence in the face of perceived stonewalling by intelligence agencies and the Pentagon, and for failing to follow up on important aspects of the event, including the question of who financed the attacks and the collapse of the Salomon Brothers building.
Many both inside and outside of government, including victims’ families, have demanded a new investigation, with the 9/11 Commission report setting a low bar for future cases.
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More from RT
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TLB published this article from RT-USA News as written by Helen Buyniski, with our thanks for this perspective.
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Stay tuned to …
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The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
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Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.


thelibertybeacon--2020-04-02--COVID-19, Global Tyranny & Those Who Would Play God

COVID-19 , Global Tyranny & Those Who Would Play God As someone who runs an organization that delivers media ( actual truth and facts ) daily , I have discovered that every once in a great while you do a show ( mine or by invitation ) that strikes home with a vengeance … something that really makes a serious impression on you , even as you deliver it … something that you can ’ t stop running through your mind over and over again , even after the presentation is long over .
This is usually accomplished by an @ @ @ @ @ @ @ right questions , in the right order , to produce a focal point that just can ’ t be ignored .
This is what you will find in the audio recording below .
While the focal point of this discussion is COVID-19 , it also encompasses other topics either directly related , or as a result of … Some of the additional topics touched on include ( but not limited to ) : Humanity stands on the precipice of a forced program of massive depopulation that we literally have no say in , @ @ @ @ @ @ @ tools to accomplish this .
All anyone need do is a little research on each of those mechanisms listed to find their hidden destructive side , or their health ruining tendencies … globally !
Anyone who has read or listened to even a small portion of what I have published ( my articles & shows ) will understand that this is basically a Roger Rant , bringing to the hosts table a plethora of information that most will never hear or find anywhere else … at least not in this … connecting the @ @ @ @ @ @ @ a host so well in-tuned with reality , and so eager to discuss it … to inform his audience .
This is the type of format that can produce the scenario I described in my opening paragraph , and for a topic as vital as this one is … well this is the result .
Click on the image below to listen to this informative discussion … About the Author : Roger Landry ( TLB ) spent about three decades of his adult life either in , or working for the military , @ @ @ @ @ @ @ the Military Industrial Complex facilitating DOD contracts .
His awakening to Political , Economic , and Health realities was less than ten short years ago .
Since that time he has founded The Liberty Beacon Project ( TLB ) consisting of a half dozen proprietary global websites , media projects , and partner websites across the planet .
He contributes regularly to multiple forums both in and outside of TLB Project .
Most of Roger ’ s articles can be found on the TLB flagship website TheLibertyBeacon.com The Liberty Beacon Project is now @ @ @ @ @ @ @ and for this we are grateful and excited !
But we must also be practical .
For 7 years we have not asked for any donations , and have built this project with our own funds as we grew .
We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent .
So we have just installed donation buttons on our websites and ask that you consider this when you visit them .
Nothing is too small .
We thank you for all your support @ @ @ @ @ @ @ Comment Policy : As a privately owned web site , we reserve the right to remove comments that contain spam , advertising , vulgarity , threats of violence , racism , or personal/abusive attacks on other users .
This also applies to trolling , the use of more than one alias , or just intentional mischief .
Enforcement of this policy is at the discretion of this websites administrators .
Repeat offenders may be blocked or permanently banned without prior warning .
Disclaimer : TLB websites contain copyrighted material the use of which @ @ @ @ @ @ @ the copyright owner .
We are making such material available to our readers under the provisions of “ fair use ” in an effort to advance a better understanding of political , health , economic and social issues .
The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes .
If you wish to use copyrighted material for purposes other than “ fair use ” you must request permission from the copyright owner .

COVID-19, Global Tyranny & Those Who Would Play God
LISTEN TO SHOW BELOW INTRO ARTICLE
Show Preface by: Roger Landry (TLB)
As someone who runs an organization that delivers media (actual truth and facts) daily, I have discovered that every once in a great while you do a show (mine or by invitation) that strikes home with a vengeance … something that really makes a serious impression on you, even as you deliver it … something that you can’t stop running through your mind over and over again, even after the presentation is long over. This is usually accomplished by an intelligent and well experienced host asking the right questions, in the right order, to produce a focal point that just can’t be ignored. This is what you will find in the audio recording below.
While the focal point of this discussion is COVID-19, it also encompasses other topics either directly related, or as a result of … Some of the additional topics touched on include (but not limited to):
Vaccines
Aluminum
Fluoride
Big Pharma
Global Warming
5G
Wireless radiation
Global Pandemic
Humanity stands on the precipice of a forced program of massive depopulation that we literally have no say in, which includes the above listed mechanisms as tools to accomplish this. All anyone need do is a little research on each of those mechanisms listed to find their hidden destructive side, or their health ruining tendencies … globally!
Anyone who has read or listened to even a small portion of what I have published (my articles & shows) will understand that this is basically a Roger Rant, bringing to the hosts table a plethora of information that most will never hear or find anywhere else … at least not in this … connecting the dots format.
Seldom do I find a host so well in-tuned with reality, and so eager to discuss it … to inform his audience. This is the type of format that can produce the scenario I described in my opening paragraph, and for a topic as vital as this one is … well this is the result.
Please Listen-Up
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The National Intel Report with John Stadtmiller
Click on the image below to listen to this informative discussion …
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My Parting Shot …
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TLB recommends you visit the Republic Broadcasting Network (RBN) for more great Shows, Articles and information!
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About the Author: Roger Landry (TLB) spent about three decades of his adult life either in, or working for the military, with about two decades working directly for the Military Industrial Complex facilitating DOD contracts. His awakening to Political, Economic, and Health realities was less than ten short years ago. Since that time he has founded The Liberty Beacon Project (TLB) consisting of a half dozen proprietary global websites, media projects, and partner websites across the planet. He contributes regularly to multiple forums both in and outside of TLB Project. Most of Roger’s articles can be found on the TLB flagship website TheLibertyBeacon.com
••••
••••
Stay tuned to …
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
••••
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.