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Old 03-20-2019, 03:28 PM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,442
CBs and money renting

Rome, "But then growth peaked, the empire became extended, it could no longer afford its military might, its culture peaked, internal strive became pervasive while foreign adversaries kept challenging its predominance and the people lost trust in its government as corruption and nepotism became the primary means to power and influence."

Armstrong, "ANSWER: The key to pushing capital fleeing into the stock market will be the decline in public confidence within the government. Everything is unfolding on schedule. You see turmoil everywhere from Canada to France and Italy. The level of people distrusting government is climbing. Normally, it will take a 45% level of people turning against the government to set off the spark."
"So no, there still does not appear to be a major crash of 50-62% (stocks) as the majority are calling. The market is testing resistance, but here too we do not see this as breaking out and taking off just yet. "
The government has made promises that it just can't keep in the area of pensions. If FED GOV keeps funding an unnecessary military instead of pensions, this will definitely set off a good dose of hatred.

Armstrong has a definite hatred of president Jackson for killing the Central Bank.
"Here is a chart of the stock market with the US Long Bond. Andrew Jackson paid off the national debt in 1835. President Jackson also shut down the Second Bank of the United States on Sept. 10th, 1833. Jackson announced that the government would no longer deposit federal funds in the Second Bank of the United States, which was a quasi-governmental national bank."
Jackson broke the "piggy bank" that the bankers were using to create price inflation in their favor.
"Then during July 1836, Jackson issued the Specie Circular. Under this act, the government would only accept gold or silver in payment for federal land."
This was a mistake because it pulled money to the GOV and created deflation of circulating money.
"By shifting deposits to state banks, Jackson set off a major crisis undermining the entire monetary system. He effectively devalued all the circulating currency in the country with one law the Specie Circular. Suddenly, there was a run on gold. The Panic of 1837 unfolds as New York banks suspended all withdrawals of gold. Jackson created massive austerity, but he had shut down the national debt as well. This was a very complicated financial crisis with an interesting mix of events combining together"

Yes, the banks suspended withdrawal. It wasn't Jackson who created austerity. It was the banks refusal to return the money that they held to the rightful owners.
"Jackson effectively canceled all paper money by refusing to accept it and this resulted in a gold panic forcing the banks to suspend all payments. People were rushing to banks to exchange their paper currency for gold and banks could not meet the demand and suspended all demands for gold."
More half truths. Paper currency could be used for everything except for purchase of land from FED GOV. It was the banks over-issuance of debt paper based on a limited gold supply.

"Each cycle that hits is slightly different characters and reasons. I highly warn against buying any sovereign debt whatsoever. Any federal debt to hold must be short-term no more than 90-day paper. In the case of the Hard Times of 1837-1842, the stock market crashed in terms of gold because all money was effectively canceled. Paper money collapsed as notes lost their legal-tender value. Thus, only gold rose in value as the medium of exchange thanks to Jackson refusing to accept anything but gold.

This time around, bonds are legal tender so that is the money that will decline in value far more than anyone expects. Both the Bank of Japan and the ECB in Europe have wiped out their bonds markets for they have been the primary buyer of government debt which they cannot now resell."

The money-renters always demand a legal tender that is flexible so that they can speculate. Only a State issued paper currency fits this description because the State has taxing powers to fill the treasury. Private banks don't have taxing power so they can not respond to a bank run. A flexible currency is generally a good idea. BUT, any entity that is allowed to print currency will always over-print. It was the State that forced the FED to print to support wars.
What is needed is DISCIPLINE.
What politicians need is VOTES.
War mongers need WARS.

As the corporatocracy increases in wealth and power, it displaces public governance.

Regulatory capture is working out well for the money-renters.
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