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  • More on bonds

    Bonds are debt notes created when a State doesn't have the money to pay. Ever since the limitations of gold were removed in 1971, GOV has been passing out bonds like candy to all those who were stupid enough to accept them. This page has a graph of the growth of bonds. You can easily see the demarcation before and after 1971.

    Currency is a wealth substitute. It is referred to as "money of Zero Maturity" (MZM) because it is instantly fungible. Bonds are a currency substitute that have a built-in wait. Bonds are generally used to spread out a payment. Bonds have been used for other purposes. Several years ago, rogue? elements of U.S. GOV created $ 250 billion of GOV bonds for the express purpose of attacking Russia's financial system. The perps had mixed results from the attack.

    These bonds could not be redeemed through normal channels because they were not issued through regular channels. On the exact day that they matured, they had to be redeemed for payment or rollover.
    As luck would have it, there was an emergency in New York that prompted the FED to redeem all bonds without being vetted. By coincidence, the FED just happened to be operating remotely on that day. These questionable bonds were quietly redeemed.
    All the details are here.
    9/11 False Flag Conspiracy - Finally Solved (Names, Connections, Motives) - YouTube


    • Revealed: official details on how the EU will steal from us

      GLOBAL LOOTING: The new EU bailin law was passed 8 days ago….did you notice? |

      SAN LUIS OBISPO, Calif. (MarketWatch) — Imagine 100 Goldman Sachs banks running America and the world.
      It’s happening. Forget politicians, Big Banks rule the world.
      Big Banks Conspiracy is destroying America - Paul B. Farrell - MarketWatch



      • Silver

        It is amazing how few people are aware of the bail-in laws.
        I've written about gold a few times. I should mention silver. When JFK issued United States Notes, they were backed with our 4 billion ounces of silver. He was killed and the silver was sold off cheaply. Industry found lots of new uses for silver. So did the medical field. The 4 billion ounces ran out October of 2005.
        Industry was useing a lot and they didn't really cut back when the price started to climb. The medical field has really increased use. Here is a graph showing the use and chronic production shortfall.

        There is a huge consumption of silver in America. ASIDE from industrial and jewelry use, The U.S. GOV is mandated to produce silver and gold coins for sale to the general public.
        "By the way, take note of how low in the “production standings” the U.S. sits. In 2012, American mines produced a measly 33 million ounces of silver – compared to the run rate of 50 million ounces currently observed for 2013 U.S. Mint silver Eagle sales. If production is falling worldwide, and the U.S. can’t even produce enough to fund its own, legally binding U.S. Mint program (for what that’s worth), HOW ON EARTH can they supply it without dramatic silver import increases."

        Just for coin production, GOV was net short 17 million ounces. Mining companies and exploration companies are going bankrupt all over the world. Some of the biggest mines are shut down permanently. While GOV may be able to fudge things for a while longer in Gold, silver is another story.
        Silver is consumed and industry wants a lot of it delivered to their door.

        The banks manipulate prices of commodities by locking up huge quantities with minimal investment in futures options. Later, the release commodities at a trickle to jack up the price. They are hoping to do this in a big way with copper.
        Why the Price of Houses, Cars, and Electronics May Be About to Skyrocket
        Silver is a different story because the price is being driven down to keep investors away. Before much longer, the shortages will destroy the paper markets.


        • Bankers and deflation

          There is much talk about the upcoming hyperinflation. The FED has created $ trillions and the banks have a few trillion$ in excess reserves. We are going to have hyperinflation when those reserves move into the economy. Small problem, It isn't going to happen that way.

          I found an excellent paper on the subject. I will try to post the important figures. Keep in mind that all bank money must be LENT into the economy. Fed money can be directly INJECTED into the economy by both the PPT and the ESF. Previous post.

          "Regulators around the world are telling banks the same thing, reduce leverage."
          "Freddie Mac and Fannie Mae have been going after big banks for mortgage loan documentation irregularities. In separate actions Bank of America is being sued for racketeering, LIBOR manipulation, violation of the Telephone Consumer Protection Act, violation of federal antitrust laws, failure to modify loans and who knows what else."
          No more liar-loans.

          "When banks fail, bankers are sued by the FDIC. “Various bankers are being charged with fraud and fined tremendous amounts of money and sent to jail because they made ‘unsafe and unsound’ loans,” Prechter writes. “Bankers are scared stiff to make new loans, because government agents are on their backs.”

          In fact, American Banker reports civil litigation against bank officers and directors of failed banks is just beginning. “An April report by Cornerstone estimated that the FDIC is on pace to file about 40 lawsuits in 2013, the most in any year since the crisis began.”

          "The industry has shrunk to only about 7,000 institutions from 18,000 in 1985. The numbers won’t be growing as the FDIC is not issuing new bank charters. Proposed capital and regulatory requirements are forcing small to mid-sized banks to sell. Larger banks can’t grow organically so they are ready to buy. Lashley believes the industry will shrink further to 3,000 banks."
          I've posted a few times that the banking industry was just too crowded with too many banks.

          " Meanwhile, Sweden, Norway and France are demanding that people use credit cards instead of cash. Authorities desperately want cash to stay in banks to prop up the debt (asset) side of their balance sheets."
          This is a continuation of the big lie. Banks don't loan out deposits. Your signiture creates the new loan. The banklers want the cash to stay in the banks because all the bank's reserves are gone.
          So Where's the Hyperinflation Already?


          • The Japanese model.

            Japan seems to be the logical roadmap for many countries. Theri debt is now 500% of GDP. Compounding interest makes all of this unmanagable.
            "interest rates increasing to just 2% would mean interest expense on government debt equating to 80% of government revenue.'
            "government debt is continuing to rise. Currently at 240% of GDP, the International Monetary Fund estimates that it will get to 250% by year-end."
            " If the government succeeds with its aim to get inflation up to 2%, it's likely to result in interest rates increasing to +2%."
            Whatever they do it is still suicide.

            Most Japanese put their savings in the GOV Postal bank. GOV has used their savings and retirement money to support lots of companies that are/were zombies. The money is gone,,, pissed away.
            It was used to maintain a high standard of living for people who are not producers.
            A Japanese Crisis Nears | Zero Hedge

            Next stop, America.
            With the blessing of Clinton (scumbags in either gender), the Graham-Leachy bill gutted the Glass -Steagal act. The investment banks (gamblers) were allowed to do regular banking. This meant that your savings and pensions were available to the gamblers to make bets on every horse,,, wether live or dead. The game went on until, mortgage defaults crashed Lehman and AIG. ET AL.

            The banks were all going to crash. Many people said,,, good riddance, let them crash. In Japan, GOV stole all the savings and gave it to the corporations. In America, the bankers stole all the savings. If the banks had been allowed to crash, the $ 10 trillion of savings and retirement funds that they had stolen would have been missing from people's acounts. Add in the lost RE equity of about $ 15 trillion. Then add in stocks. Imagine a total lockup of spending.
            So, GOV gave the bankers an initial gift of $ 600 billion. This postponed the crash. GOV just keeps on giving. When TARP was signed, GOV debt was 60% of gdp. Now, it is about 160%.

            Back to Japan; "In 1997, Japan increased the consumption tax from 3% to 5%. Soon after, the country went into recession and debt to GDP soared."
            It is pretty clear that tax increases hurt the producing economy.
            In America, the fix for GOV debt is obummer-care and a carbon tax. You notice that additional tax INCREASES the debt. This also happened in Greece.
            GOV can increase the tax or decrease the spending. Either way, it crashes the productive economy and increases the debt. This is because, the money extracted is always directed to the least productive sector. Beggars, bankers and bureaucrats.


            • debt vid

              I forgot the link.
              Japan's Debt Problem Visualized - YouTube


              • jobs

                This is a subject that I hit on a lot. I found a very interesting article on future growth. This quote is from page 3 of a 5 page article.
                “The problem is jobs,” he said. Sixty-five percent of American workers, Brynjolfsson explained, occupy jobs whose basic tasks can be classified as information processing. If you are trying to find a competitive advantage for people over machines, this does not bode well: “The human mind did not evolve to multiply triple-digit numbers,” he told me. The robot mind has."

                The article is well worth reading.
                Was America’s Economic Prosperity Just a Historical Accident?

                There is no escaping the fact that automation is wiping out job niches.
                Message to 5.7 Million Truck Drivers "No Drivers Needed"
                Mish's Global Economic Trend Analysis: Message to 5.7 Million Truck Drivers "No Drivers Needed" Your Job is About to Vanish; Time Marches On, Fed Resistance is Futile

                We will reach a point where our present system does NOT work. If we only receive remuneration for labor, what happens when there is no need for human labor?


                • The future of jobs and money

                  Here are a couple of links related to the last post on automation, robots and jobs.
                  The Abolition of Work by Bob Black

                  German Joys: Neo-Luddites Unite!
                  Robots, cooperation or competition;
                  Activist Post: All In The (Robotic) Family
                  High skill jobs;
                  How Technology Is Eliminating Higher-Skill Jobs : NPR

                  The Future of Jobs | Peak Prosperity

                  The Industrial Revolution got off to a start by eliminating the jobs of draft animals. Then, it eliminated a lot of heavy and hard work. We soent 80 years inventing labor-saving devices at the same time that we wanted full employment. GOV created make-work jobs and welfare for those who were not needed in the private sector. GOV needed to suck a lot of wealth from the private sector to keep up with the destruction of job niches by automation and efficiency.
                  The advent of computers made this scheme no longer possible. The job goes to the lowest-cost producer. GOV robbed future wages/economic activity to support all the redundant people. The limit has been reached and bankruptcy is on the way. All our savings have been spent maintaining a high standard of living for all the people who have no honest, productive niche in the real economy.

                  The PTB are just trying to extend and pretend. Here is an article claiming that the Eurozone economy is recovering because of increased GDP in France and Germany.
                  Germany, France haul euro zone out of recession

                  This is effing marvelous news. It is also true for Japan. The GDP is rising. The gdp is rising strictly because prices are inflating. Euroipean auto sales are at a 20 year low
                  European car sales skid to 20-year low
                  Does that sound like a recovery? GDP is up because prices are up, NOT consumption.


                  • conventional power generator companies

                    Glenn Beck seems to think that we are in for serious problems.
                    Glenn Beck Explodes! Total Chaos Coming! Lynchings in Street of America! Like You've NEVER Seen! - YouTube
                    Maybe he's right, maybe he's wrong. Just the same, you better start thinking about getting auxiliary power for your house.
                    The price of oil is tied directly to the price of gold. When gold delivery crashes, the price will go way up. Delivery already has serious problems. What does that imply for the price of oil and gas? Many of the electric generation companies already have revenue problems. Here is an example.

                    Here is a financial statement from American Electric Power. Their bonds are rated bbb which is pretty much junk.
                    AEP American Electric Power Co Inc debt, bond, rates, credit - Morningstar
                    We are headed for a financial meltdown. Power companies have to buy gas, uranium, coal or oil. Hydro power is the exception. The oil and gas companies are not going to make fuel deliveries out of charity. Even if all the smart meters are turned off except in GOV offices and hospitals, the hydro, wind and geothermal power won't carry all the load.

                    Even people with gas or oil heat will be out of luck without fan and thermostat power. There are going to be millions of fresh converts to OTG. They may still be connected but, the grid won't be powered.

                    As if the utilities don't have enough problems already, they are getting hit very badly by solar power.
                    Solar panels could destroy U.S. utilities, according to U.S. utilities | Grist
                    It is easy to see that a power interruption will have an effect on chilled and frozen food storage.

                    On another note, a friend, Jim Kirkpatric asked me what to do to prepare.
                    Nicole Foss is an exceptional writer at The Automatic Earth an she has some advice;
                    How to Prepare for an Economic Depression: 9 Steps for the Average Joe
                    Keep in mind that; if you are convinced that prepping is NECESARY, you have admitted that a situation is most like going to appear that will leave non-preppers in terrible straits.
                    Like it or not, any shortage of resources will cause non-preppers to covet your resources. Here is part one of "The Shelter" from Twilight Zone.
                    TTZ - The Shelter [1|3] ♥†* - YouTube
                    Things can break down pretty fast.


                    • european recovery and jobs

                      "IMF research cited last week by the European Central Bank puts the eurozone's "structural unemployment" rate – that is the unemployment that won't go away even after the economy returns to normal – at a staggering 10.1pc, up from 7.4pc before the crisis. If correct, it means that any European recovery will be a largely jobless one. "
                      So you think Europe's debt crisis is finally over? Time to think again - Telegraph

                      Greek youth unemployment is at 65%. Europe is NOT recovering. Employment is falling while debt is rising. Who is going to service the debt? Every passing day brings a higher (claimed) debt load on those who are working. Austerity diminishes their numbers.


                      • no interest without growth

                        There is a dawning perception that an economy can not grow if the population is shrinking. Capital is loaned at interest. An economy must grow to generate the added weath that it demands to pay interest.
                        No growth,,,,, no interest.
                        When growth stalled in America, the central bank printed currency to service debt that was in danger of defaulting. They are still printing because growth is still stalled. This would lead one to believe that interest is impossible without growth. The main source of economic growth is from population growth.

                        Detroit has a shrinking population and a shrinking economy.
                        Detroit, Demographics and Detonation
                        Credit demands interest. Bank credit is at a 40 year low.
                        Credit as Percentage of Banks’ Balance Sheets Lowest in 40 Years | Sober Look | FINANCIAL SENSE
                        Japan has a shrinking population and no economic growth. They are losing 200,000 a year headed for one million a year loss. There is apparently no escape. GOV already pays for everything if a woman gets pregnant.

                        GOVs worldwide are starting to catch on. No growth, NO interest.
                        China forced a one-child policy;
                        "336m abortions and 222m sterilisations"
                        China to ditch its one-child policy as ageing crisis looms - Telegraph
                        That isn't all. "The skewed sex ratio - 119 boys per 100 girls born in 2012 - is a dangerous development that could result in social unrest."
                        This would indicate that many millions of baby girls were killed post-partum.
                        Their labor force is starting to shrink.
                        5 Reasons China Will Ultimately Abolish the One-Child Policy | Sober Look | FINANCIAL SENSE

                        The world is facing shortages. Many areas have a shortage of potable water. The oceans are fished out in many areas. Population growth has really taken off lately.
                        The more indebted a country is,,, the lower their growth rate. The more that we get smothered in debt, the more that we refuse to produce little, future taxpayers. In Japan, 30% of the young say that they have no interest in sex or a relationship. Can you imagine some kind of legal remedy for that?

                        The American population would be shrinking without immigration. It would also be much lower without immigrants.
                        Western debt will be defaulted. If the PTB can not provide some sort of a healthy society, kids are going to be few and far between. Most of the developed world is going into a demographic crash. There will be no possibility of debt service or interest gains.


                        • you can add to it another issue :

                          The cost of raising a child climbed 40% over the past decade - Sep. 21, 2011

                          Signs and symbols rule the world, not words nor laws.” -Confucius.


                          • Fulford

                            MonsieurM the price of an education has climbed 3 times faster than the rate of inflation. Colleges and universities just operate as money-makers with education a secondary concern.

                            I want to bring up a subject/person that most people have never heard of. And, I want to talk more about gold.
                            In the summer of 1971, gold was leaving the U.S. treasury at the rate of 100 tons a day. We had overprinted to pay for the welfare-warfare state. Nixon slammed shut the gold window in spite of the Bretton-Woods agreement that we would not over-print.
                            Fast-forward to today. About 45,000 ---60,000 tons of gold have moved East. Why didn't we just tell (them) to go pound sand. We told the Germans that they can NOT have their gold.
                            The Gold is Gone - Germanys' access to its gold denied - YouTube
                            The gold came from Western central banks who had leased the gold to
                            bullion banks who,,,, sold it. The gold is gone.
                            My Blog

                            Record High Demand For Physical Gold Threatens To Break The Back Of The Paper Gold Market |

                            OK, why are Western banks shipping out the gold? In the last couple of years, hundreds of high-level bankers have quit or retired.
                            Enter Benjamin Fulford, the former head of Forbes in Europe. He seems to have grown quite close to Eastern power brokers. He also seems to have gone off the deep end.
                            Fulford claims that Eastern assasination societies are itching to kill all the miscreants. He reports that the White Dragon Society is going to rescue all of us and wipe out the evil people.
                            White Dragon Society | TransAlchemy

                            Here is an interview with Fulford. Benjamin Fulford Message, "Who's Who" - YouTube
                            While Fulford's predictions have mostly failed to come true, there is always the possibility that an Eastern society of assasins will indeed execute western bankers. That might explain why the West is sending out every ounce of gold that they can steal from clients.
                            Bernie Madoff seems to be relatively safe. He burned Westerners. He did NOT burn Yakuza and the Triads. The paper-gold market is 92 times the physical market. That means that 91 people are going to get burned.

                            Apparently, Western bankers are working mightily to make sure that those 91 people do not include Eastern assasin societies.

                            Jim Willie reports that the East is paying Interpol to investigate and prosecute European bankers. They already brought down the head of Deutches bank. There will be many others. For the moment, Interpol has not cracked London and New York. Interpol is going after VPs and high level people and getting them to roll-over. Eventually, they will drag down London and New York.


                            • It is axiomatic that "power corrupts". It is also axiomatic that corruption destroys commerce.
                              General Douglas MacArthur once stated,
                              “History fails to record a single precedent in which nations subject to moral decay have not passed into political and economic decline.[19] ”
                              Moral decline - Conservapedia
                              So,,, here we are. NOBODY questions the corruption. That is a given.
                              Who brought us that corruption?
                              How The Corrupt Establishment Is Selling Moral Bankruptcy To America

                              Everyone and their dog already knows that Agenda 21 would have all of us living in the cities. This would consolidate control. Add in smart water and power meters. Toss in a dose of "cashless society" and you have a recipe for a cauldron of chaos. There is some "proof" that the cities tend to make people immoral.
                              Why our cities are writhing in death-grip of crime, bankruptcy
                              "In an analysis so cogent that Rush Limbaugh spent an entire hour on his radio show just reading from it, Codevilla calls the two sides of this great conflict the “ruling class” and the “country class.” .
                              The cities rely on uninterrupted imports of food ,etc. Pretty shaky arrangement.
                              It is expected that problems will appear with short notice.
                              Your Future: "We Are Now at a Point Where the Crisis Will Happen Almost Overnight" *Micro Doc*


                              • Islamic banking

                                In general, the major religions agree on a prohibition of charging interest. If interest is extracted, there is little or nothing left over for growth.
                                Islam is VERY clear,, NO RIBA!! (interest).
                                Mohammed said that charging interest was worse that eating pork.
                                In Islamic banking, the bank partners with the investor to supply the cash and the investment expertise. The deal works out well because many business people have little understanding of high finance.
                                In the West, if a business goes bust, the bank takes the colateral.
                                In the East, if a business goes bust, the bank loses their investment.

                                The 2 main centers of Islamic banking were Tunis and Cairo. George Soros financed the color revolutions in Egypt and Tunisia. The independent central bank was shattered in just a few days and a Rothschilds central bank was created in it's place.
                                Syria, Cuba, north Korea and Iran do not have a Rothschilds controlled central bank. Syria is looking pretty bad though.
                                Activist Post: Next Phase of Syrian Invasion Begins -- The Central Bank Connection
                                Iran is on the hit-list also. The London bankers have used their satrap, America to smash any country that they didn't control directly (banking).

                                Now, there is a new problem. India is looking at Islamic banking.
                                Kerala govt gets RBI nod for Islamic banking - The Times of India

                                From a strategic point of view, Russia would be in great danger if Iran fell. Same for China. They already made it clear that they would not allow this to happen. What WE learned in Viet Nam is that China fights her wars in her border provinces, NOT in China. They will stall around hoping to see an American collapse (before a Chinese collapse).

                                Gold production is about 2500 tons a year. India and China are importing about 2300 tons a year. When the west-east gold transfer stops, the East will most likely cut us loose. We stole all the Arab gold also. They could make life miserable also.

                                The central banks have always been willing to destroy the world in the name of power and profit.
                                The Incredible Debt Spider by Rand Clifford | Dandelion Salad
                                Who knows where this will lead?