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  • Greece, diminished consumption,, Jackson

    The troika wants Greece to cut pensions and raise taxes. Recent experience shows that this can NOT work.
    "Speaking at the closing press conference for the EU-Latin America and Caribbean Summit, Tusk said that now is the time to decide.

    The Greek government has to be, I think, a little bit more realistic. It is very obvious that we need decisions, not negotiations.”
    This peabrain actually used the word "realistic"
    "talks will collapse and Greece will default on its existing €320bn of loans."
    Shaving pensions and taxes will NEVER free up €320bn.
    IMF walks out of Greece bailout talks | Business | The Guardian

    The problem with all that free money is that there is no legitimate place for it to go. The world is sliding DOWN to a global-mean wage. All that free money flows into productivity gains even though aggregate consumption is falling. Wages have been static since about 1980 but, prices have gone up. The free money MUST flow into mal-investment.
    China is a poster child for mal-investment. Their excess steel capacity EXCEEDS the total steel capacity of U.S. plus Europe.
    The world’s worst investment bubble will burst soon - MarketWatch

    "Debt is the financial vehicle through which future spending of savers is transferred to current spending of borrowers. The transferred spending from savers to borrowers may be consumption or investment"
    "…the central irony of financial crises is that they’re caused by too much borrowing, too much confidence and too much spending and they’re solved by more confidence, more borrowing and more spending.

    The need for more spending is echoed widely in the media and approvingly by the chairwoman of the US Federal Reserve, Yellen (2014), who said in an interview:

    Our policy is aimed at holding down long-term interest rates, which supports the recovery by encouraging spending. "
    Stiglitz; "The lower interest rates have led to a stock-market bubble – to increases in stock-market prices and huge increases in wealth. But relatively little of that’s been translated into increased and broad consumer spending."
    No kidding,,, consumers have maxed out their credit.
    Policy of Debt and Destruction | A Scientific Economic Paradigm Project

    "Every economic setback of modern times, including the foundation events of the Great Depression, was caused by the state—either in the form of inflationary war finance or central bank fueled credit expansion—-not by the deficiencies or inherent instabilities’ of market capitalism.

    So while the rationale for monetary central planning is bogus, the model on which state intervention is based is even more invalid."
    "For reasons I have previously explained, Keynesian aggregate demand management tools seemed to work for about three decades but it all amounted to a one-time monetary parlor trick."
    "I think not. Yet the reason the Fed and its fellow central banks maintain their constant state of intrusion in the financial markets, including what will soon be 80 months of ZIRP lunacy, is purportedly to help close the gap between actual and potential GDP."
    The boneheads completely ignore aggregate consumptive power in a country that has outsourced too many jobs.
    The Warren Buffett Economy—-Why Its Days Are Numbered (Part 3) | David Stockman's Contra Corner

    Everyone knows that Andrew Jackson killed the central bank. They almost killed him. He is rightly given much credit for this. The current central bank put his image on the $ 20 note as revenge.
    "When Andrew Jackson shutdown the Second Bank of the United States, ending central banking, that begun the age of Wildcat Banking with every bank issuing their own money. That led to the collapse in banking"
    "Andrew Jackson unleashed the Sovereign Debt Crisis of the 1840s as states issued debt to try to bail out banks and then defaulted. The period led to civil unrest and killing immigrants on the street of Philadelphia, as people blamed the Irish for taking their jobs and causing rising unemployment."
    "The period was especially rough for the economic recession following the dissolution of the Second Bank of the United States"
    Andrew Jackson unleashed the Sovereign Debt Crisis
    states issued debt to try to bail out banks and then defaulted.
    The States tried to bail out the banks BUT, it was Jackson's fault for the collapse. The U.S. treasury was authorized to issue gold and silver coin of exactly specified weights. If somebody lost their a$$ because they tried to use unregulated, unbacked paper money from the banks,,, that was Jackson's fault???
    Private Money | Armstrong Economics

    Edit; "and that is simply unacceptable to Brussels and also to Germany, where economy minister Sigmar Gabriel has given up all pretences that this is about Greece and not about Spain:"
    Yep, Spain is next in line.
    Last edited by Danny B; 06-13-2015, 04:55 AM. Reason: A bit more info


    • September party

      October is when the U.S. bond market collapses but, there will be some excitement leading up to that event in September.
      7 Key Events That Are Going To Happen By The End Of September


      • Greece; bad plans create bad debt

        When the war-mongers broke the dollar in 1971, Nixon had to end dollar-gold convertibility. The intelligent monetary authorities were aghast. They formulated the idea of a replacement currency, the Euro. It was introduced as a half-baked idea because it was non-viable. No currency union had ever been successful if there wasn't also a fiscal union. They thought that they could patch it up later.
        The dollar warriors went to work on the Euro-zone to destroy the new competitor. Greece had spent 50% of it's modern history in default. Goldman Sachs showed them how to hide debt so that they could qualify for EU membership. A currency is a debt note. How can a highly productive economy (Germany) use the same debt notes as a low-producing economy?

        Varoufakis; "Let me begin with a truism: One person’s debt is another’s asset. Similarly, one nation’s deficit is another’s surplus. When one nation, or region, is more industrialised than another; when it produces most of the high value added tradable goods while the other concentrates on low yield, low value-added non-tradables; the asymmetry is entrenched. Think not just Greece in relation to Germany. Think also East Germany in relation to West Germany, Missouri in relation to neighbouring Texas, North England in relation to the Greater London area – all cases of trade imbalances with impressive staying power."
        "It is easy to see how this happens: A German trade surplus over Greece generates a transfer of euros from Greece to Germany. By definition!"
        Germany had all that money and nothing to do with it.
        "This money increased Germany’s money supply lowering the price of money. And what is the price of money? The interest rate! This is why interest rates in Germany were so low relative to other Eurozone member-states.

        Suddenly, the Northern banks had a reason to lend their reserves back to the Greeks, to the Irish, to the Spanish – to nations where the interest rate was considerably higher as capital is always scarcer in a monetary union’s deficit regions.

        And so it was that a tsunami of debt flowed from Frankfurt, from the Netherlands, from Paris – to Athens, to Dublin, to Madrid, unconcerned by the prospect of a drachma or lira devaluation, as we all share the euro, and lured by the fantasy of riskless risk"
        Greece had spent 50% of it's history in default. How could it's bonds be riskless?
        "Can you see the problem? To maintain a nation’s trade surpluses within a monetary union the banking system must pile up increasing debts upon the deficit nations. Yes, the Greek state was an irresponsible borrower. But, ladies and gentlemen, for every irresponsible borrower there corresponds an irresponsible lender. Take Ireland or Spain and contrast it with Greece. Their governments, unlike ours, were not irresponsible. But then the Irish and the Spanish private sectors ended up taking up the extra debt that their government did not. "
        "This is why there is no profit to be had from thinking about debt in moral terms. We built an asymmetrical monetary union with rules that guaranteed the generation of unsustainable debt. This is how we built it. We are all responsible for it. Jointly. Collectively. As Europeans."
        "The Periphery’s exorbitant debts were essential for the industrial machinery and the banking systems of Germany and France to prosper given the problematic bank-based recycling system that we had."

        All that money sitting in banks in Frankfurt was sorely tempted by the high interest rates in Athens. The bankers turned a blind eye to the risk because they believed that their derivatives erased the risks. When the nominal value of the derivatives surpassed a hundred trillion,,,,, and later a quadrillion, the risk became apparent, again.
        Greece, Germany and the Eurozone – Keynote at the Hans-Böckler-Stiftung, Berlin 8th June 2015 | Yanis Varoufakis
        Re-edit Greece says that it is willing to cut back to free up $ 400 billion by cutting military expenses. The IMF says NO,,, NO EFING WAY. The war mongers won't allow any reduction in their pound of flesh.
        Europe Offered Greece A Deal To Meet Its Obligations By Cutting Military Spending. The IMF Said No Way.
        Last edited by Danny B; 06-16-2015, 12:01 AM. Reason: Needed some humor ,,, RE-edit F*** the IMF


        • Capital isn't the same as riches

          Everywhere you look people and institutions are looking to accumulate enough capital that they can stop working and live off the proceeds or interest from their capital. The CAFR1 site shows that American GOV institutions have socked away MANY $ trillions. CAFR1 Home Page
          Pension, insurance and investment funds look to accumulate enough capital to avoid diminishing their principle. Everybody wants to live off interest income and avoid working. The machines are doing most of the work anyway. BUT, that income has to come from somewhere.
          "It contains an academic and mathematical "proof" of his thesis, plus empirical data to back it up, which is that capitalism leads to the rich getting richer and the poor getting poorer at a rate where the return on wealth (the risk-free income received from savings, investments, wealth and capital without doing any work and without touching the principle) amounts to a third of GDP and the total liquidation value of that wealth grows to six times GDP.

          In other words, one third of all of the productive output of the global labor force goes to service the consumption of the non-working capitalists, and the remaining two-thirds goes back to the labor force. "

          Corporate Japan is sitting on $ 70 trillion. Corporate Japan sits on 70 trillion nest egg -- and sits and sits- Nikkei Asian Review
          U.S. GOV agencies ( 47,000 ) are sitting on $ 200 trillion,,, or so. The rich are sitting in $ 21 trillion. Super Rich Hide $21 Trillion Offshore, Study Says - Forbes
          This capital is represented as debt notes. Only workers with salaries can create the wealth AND consumption that pays off these debts. We see endless claims to all these hundreds of $ trillions of wealth. How is a debt note wealth

          "In short, production and growth depends on material or physical capital. And while capital is a form of wealth, a great deal of wealth is not a form of capital; i.e. it is not an input into any production process generating hitherto non-existent commodities. "
          Without salaries and consumption, most wealth is just a chimera.
          "Thus, the growth of an economy cannot rely on wealth. It needs a particular kind of wealth: capital goods. So if we conflate capital with wealth, our theory of production will suffer to the extent that we will have wilfully misspecified a key input, mistaking all increases in wealth as increases in capital’s contribution to the production process."
          FOFOA: February 2015
          SO,,, what does the law of supply-and-demand have to say about the recently created $ 200 trillion in new "wealth"?

          "Their economists during the 19th and early 20th century explained how government taxes levied on economic rent – land rent, natural resource rent and monopoly rent (including financial charges by banks) – would not raise prices, but would be paid out of economic rent. By contrast, taxing labor and even non-monopoly profits does add to the cost of living and doing business. Russia was persuaded to untax it's resource rents and monopoly rents, to leave more for bankers to obtain and, in due course, for U.S. and European investors to obtain – at the expense of the Russian tax collector.

          If Russian leaders in 1990 would have read Volumes II and III of Marx’s Capital and his review of Theories of Surplus Value, they would have seen how much of what critics of industrial capitalism wanted to get rid of were carry-overs from feudalism.

          The missing item in today’s economic reforms is what classical economics focused on, from the French Physiocrats through Adam Smith, John Stuart Mill to Marx and his contemporaries: freeing industrial economies from the rentier carry-overs of European feudalism. The focus of classical value and price theory was to free economies from economic rent, defined as unearned income simply resulting from privilege: absentee land rent, mineral and natural resource rent, monopoly rent, and financial interest. The aim should be to prevent rent-extracting activities – defined as purely predatory transfer payments, an economically unproductive zero-sum activity.

          The classical labor theory of value aimed at isolating those forms of income (land rent, monopoly rent and interest) that were socially unnecessary, and simply were legacies of past privilege. The halfway alternative was to tax land rent and monopoly rent (Henry George, et al.). The socialist alternative was to take natural rent-producing sectors into the public domain."
          Russia, China, MMT And Gold Against US Dollar And Military Hegemony – An Interview With Michael Hudson
          SO, while the rich may very well get RICHER, by sucking out every penny, they have impoverished the majority. The VERY rich are holding piles of debt notes and / or shares in companies that depend on consumption. They currently believe that their huge piles of debt notes have great value BUT, they own the machines. Human labor is diminishing,,, machine labor is increasing. Will they put a labor tax on the salaries of their machines? As long as capital is a huge pile of debt notes, it needs a large, vibrant economy to survive.


          • Mandated profits but, no prosperity

            Purchasing power drops,,, corporations try new schemes to make a profit. Big Pharma is one of the major backers of the junk food industry. It's an intelligent corporate decision to create markets for your products. Produce more unhealthy people. They ship tainted vaccines to create pandemics and ,,, more demand for their products. They forced obamacare for more guaranteed profits.
            They are forcing the TPP to ensure more profit. They can sue GOV if they don't receive their expected profits.
            Big Pharma Revealed As Puppetmaster Behind TPP Secrecy | Zero Hedge
            This is the fascist business model where GOV mandates what you must buy.

            It ignores the fact that profits are falling because consumption is falling due to shrinking wages relative to prices. Corporations want GOV to mandate and insure their profits. In the long-term, GOV only has the wealth that it's citizens have.
            If corporations draw from GOV more than the "people" have, GOV goes broke. GOV prints up faux wealth but, this has a short life span. These entities create all kinds of paper profits but, there is no wealth.
            The fascist business model depends on GOV granted monopolies. It can't compete in a free market. The eventual collapse of the State brings the collapse of the fascist business model. Big Pharma spends $ billions to get monopolistic privileges but, it all eventually blows up.


            • Nobody wants Greece to stay

              The IMF recently walked out on debt negotiations in Greece. The IMF represents the dollar and the Euro is the "pretender" in waiting for the crown of "reserve currency". No surprise that they walked out. The ECB represents the Germans. The Germans know that Greece will never be able to repay. It is now obvious that the demanded $ hundreds of billions will never be generated in an economy saddled by austerity. The populists have taken over in Spain and it is only a matter of time before Spain leaves. The Germans can see this clearly now.
              Shortly after the Euro currency was imposed / introduced, some very important Germans sued the German GOV claiming that the project could never work. The Germans can easily look back at their arguments.
              The Eurocrats had originally planed to force the missing fiscal union when the unavoidable currency union breakdown came. New insights prove that even a fiscal union won't cure the imbalances between European States.
              The Germans don't want to be the ones who called, "time" on the Euro project. They are forcing Greece to default so that they can then leave with a minimum of guilt. The latest meeting lasted 45 minutes.
              Greece and creditors fail in 'last attempt' to reach deal - Yahoo News
              Everybody has been making impossible demands to ensure that Greece defaults.
              The Europeans have FAR more important things to take care of at the moment. America is moving heavy weapons into States bordering Russia with a mind to push Europe into a war that will forever alienate them from Russia. Europe in one "false flag" away from widespread war for American and British bankers.


              • Backdoor QE,,, treasury dumping,,, Texas

                The FED buys U.S. Treasury securities. They are forced to by FED GOV. BUT, their internal portfolio rules place a limit on how much they can hold in portfolio. They have now run up against this limit. They have instituted currency swaps with several countries and these countries buy the U.S. treasuries with their new-found riches. Those nations are Japan and the BLICS: Belgium, Luxembourg, Ireland, Cayman Islands, and Switzerland.
                None of them have much in the way of dollar reserves but, they hold $ 818 billion in U.S. treasuries . The FED sends them truckloads of digits and pixels and they buy treasuries. Japan does it under pain of death for their leaders. Cayman Islands is a British front.

                You can see from this graph that most States are dumping U.S. GOV debt.
                The USGovt and USFed have conspired as a Ponzi Scheme, using digital counterfeit to purchase perhaps all net new USTreasury debt since July 2011. The States who export to us have been doing "vendor financing." We have used all their hard earned money to attack States all over the world who try to slip out of the dollar noose. They have had some success at converting maturing treasury notes into gold. They would like to quit financing our war machine before it destroys the world.
                The non-western domestic markets are maturing to the point that they don't need western consumers. The vendor financing will stop.

                "expanded QE will be exposed, certainly not to continue as the system enters the next phase of failure. The climax will be two-fold, in the arrival of the Gold Trade Note, and the launch of the New Scheiss Dollar. The current USDollar will soon find a shut door on trade settlement, as Eastern nations will demand proper payment for products sold in good faith. When you go to the hardware store to purchase a hammer, they will not take fancy toilet paper in payment at the cash register."
                We will have VERY widespread shortages. They will probably cut off oil exports to us. Jim Willie says that we will get a new dollar that will be over-printed and unacceptable to trade partners.
                Everybody will want gold and silver as opposed to paper.
                Exported QE Travesty: Meet the BLICS

                Texas is in the process of getting it's gold back from the FED. They want to keep it too.
                " Section A2116.023 of the bill states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government."
                "However, the bill also includes a provision to prevent seizure, which is important for private parties who want to avoid another 1933 style confiscation of their bullion by Federal authorities."
                Jade Helm is a practice run for stealing Texas' gold.


                • You need to go out and spend more

                  FED GOV and the bankers just can't understand why consumers are not spending the way they used to spend. The Burning Platform lays it out in great detail why we are not spending as before.
                  CONSUMERS NOT FOLLOWING ORDERS « The Burning Platform
                  Part of the lack of understanding from the district of corruption may be due to the fact that they are rolling in cash.
                  Map resizes each state proportionally to real GDP - Business Insider
                  One out of every eleven people in the beltway is a lawyer. It may appear that they can get blood out of a stone. I'm hoping that they all get the chance to try,,, sucking on stones.


                  • The fascist downward spiral

                    From NAFTA to TTIP, corporatism is ruining the world economy. Thousands of reportedly intelligent people in all those corporations and they can't figure out the problem. They drive down wages and drive up corporate profits. Fascism at it's best. They incite currency wars. They outsource jobs. Still, with all their best efforts, sales and the economy are shrinking. They state out-of-hand that wages must be reduced to help them be more competitive.
                    "What’s going on? Well, in the case of Finland we’re seeing the classic problems of asymmetric shocks in a currency area that isn’t optimal. Finland’s two main export sectors, forest products and Nokia , have tanked; this creates the need for a sharp fall in relative wages to make up for the lost markets"
                    Oh, so they need a sharp fall in wages to compensate for a fall in sales. It never occurred to the feces-for-brains that the fall in sales might have something to do with a fall in wages.
                    Finland's Problem Is The Same As Greece's; Neither Should Be In The Euro As Krugman Says

                    Fascist corporatism has perfected the (black) art of regulatory capture. Currency wars are obviously and strictly a mechanism to drive down effective wages. Every country wants to be a net exporter but, by definition, this is impossible. So, the fascists continue to drive down wages all the while wondering why people won't spend.


                    • Liars, fools and silver

                      You can well imagine that it is very difficult to separate the truth from the fiction in economic forecasting. The parties that are trying to extend the current party are lying and obfuscating everything. Academia knows where it's bread is buttered and it parrots the party line. Evidently, it even believes the party line. The endowment fund at Harvard lost many $ billions. They refused to even consider the alternative views provided by the Mises institute even though the institute correctly predicted the Russian and Japanese meltdowns.

                      Everybody is banging their own drum.
                      FOFOA is focused on gold and says that silver will reach 50 cents an oz. He neglects the fact that China was on a silver standard for centuries. Germany was on a silver standard until the Comstock lode was discovered. Silver has always been a monetary metal.
                      FOFOA: Silver Dollar

                      I asked FOFOA about Jim Willie and Walter Burien (CAFR1)
                      He said that Jim Willie was super paranoid and Burien was a convicted criminal. He attacked the messenger and had nothing to say about the message. I asked Jim Willie about CAFR1. He said that it was beyond the scope of his newsletter. $ 250 trillion and he didn't consider it.
                      I asked Burien about Willie's claims. He didn't reply this time, though he had previously. I have to read everybody,,, liars and fools included.

                      The gold to silver ratio has historically been about 16--1 It may very well go back to that.
                      If gold reaches the purchasing power in the future equal to $ 54,000 of today's purchasing power, most people will be left out. An asset is worth what others will pay for it. Silver will be very much in demand.


                      • Defaults and population reduction

                        Armstrong speaks about GOV default. Since socialists write the history books, they leave out the fact that all government eventually default.
                        He also speaks about "rotation" of crashes. Sometimes it's in stocks,,, sometimes in private bonds,,, sometimes in public bonds. 50% of municipalities are bankrupt.
                        In this vid, he proposes that stocks will also crash in October when the Treasury bonds collapse.
                        As we automate more and more of our economy, we produce more and more candidates for socialism. Meanwhile, the corporate world steers legislation towards a fascist economy. The fascists ignore consumptive power and focus on productivity. The socialists focus strictly on consumption and have no particular scheme for production.
                        GOV is a non-productive parasite that is controlled by the fascists but, is beholden to the socialist tendencies of the voters.

                        The FED has no army and is held in thrall to the GOV. The FED chairman has repeatedly stated that monetary policy has reached the end of it's effectiveness and must be supplanted by fiscal policy. The FED prints pixels and FEDEXs them the the BLICS countries. They buy treasury bonds. The fiscal policy that the CB demands would be a reduction of GOV spending,,,, like what is prescribed for Greece.

                        5.4 million starved to death during Great Depression I when 44% of the population worked on the farm. About 45 million are now on food stamps. GOV has spent our treasury on wars. They (WE) are broke but, reluctant to cut loose the safety net. The safety net will most like rip asunder when the sovereign bonds crash. The FED holds about $ 4.5 trillion of debt from the treasury. GOV may very well tell them to go pound sand.

                        America is working hard to send LOTS of weapons to all the countries surrounding Russia. Russia has their doomsday bomb. It is a standard fusion bomb(s) clad in cobalt. Those who really control the world (five eyes) may want a reduction in population BUT, the Russian bomb would exterminate ALL life on the planet. It would take 7 years.
                        Soviet Doomsday Device Still Armed and Ready | WIRED

                        The world controllers may very well crash the West down to the dirt to accomplish population reduction and avoid extermination. We shall see.


                        • Bill Bonner and the lockup in credit and cash

                          The old saying goes "follow the money". Many writers are talking up whatever they are selling. Bill Bonner is an exception to this. He has another article about cash. Keep in mind that a crash in the bond markets will bring a crash and lockup in the credit markets. Everything is backed by U.S. Treasury bonds. A lockup in credit would push everybody into whatever cash they had on hand. A couple of notes;
                          "According to reports, Richard Burr – now the Chairman of the Senate Intelligence Committee – called his wife on a Friday night to tell her he wasn’t coming home for the weekend. (2008)

                          Then he made a disturbing request: “Tonight, I want you to go to the ATM machine, and I want you to draw out everything it will let you take.”
                          "The video – recently posted on the Internet here – reveals a fatal flaw in the US economy – created in the 1970s – that’s about to make every ATM screen near you go dark… and turn the US dollar into the rarest currency on earth.

                          An event like this could leave millions of Americans cut off from their savings, their investments, and their own bank accounts for months – even years – at a time.'
                          Bill Bonner has an extremely good track record for accuracy. He has published the Daily Reckoning for many years for free. The vid played when I clicked on the link but, I prefer to read. When you click on close, it gives you the option to stay on the page and read the text.
                          ATM collapse?

                          People are hoarding cash because they don't like negative interest rates. There is ever-less cash in circulation and ever-less cash in the banks.

                          Bonner; "When the credit system starts to implode, it not only destroys the mechanism that runs our economy…

                          It shuts down our access to our own money…
                          Imagine what happens as lenders try to redeem $60 trillion worth of credit when there’s only $250 billion to go around…
                          Dollars become ultra-scarce… prices skyrocket… banks go under…
                          In fact, it would only take about three hours for our entire country to shut down…
                          I know that must sound impossible, but I know this for a fact…"
                          The article is quite long but, very informative. It occurred to me that this crash could be a ploy to force the cashless economy. I asked Jim Willie about this. He said, NO. U.S. GOV is too stupid to pull this off at this time. I think he's right. This crash will do so much damage that the price just wouldn't be worth it.
                          Our economy runs on margin and debt. This winds things up higher and higher BUT, on the unwind the reverse effect is FIERCE. There is almost no liquidity or collateral in the system because it has all been leveraged to the moon. A big hiccup in the system would remove all liquidity from investors being forced to meet margin calls. If an asset drops in perceived value, the investor has to make good to the brokerage house. They have to pony up some cash. But, if they have no cash, they have to sell something,,, at the same time that everybody else is trying to sell. The great fear is that there will be NO buyers.
                          " $112 Billion Fund Manager Worries Bond-Market Fire Doors Are Locked "
                          Guy Who Manages $112 Billion Sees No Bond Buyers - Bloomberg View
                          Much of our investment system depends on one investor being able to find a greater-fool to buy his losing investment. Fools with money may be hard to find.


                          • PCR, confiscation and Giving up (corporate) hope

                            "The ECB is already printing 60 billion euros a month to save the European financial system, so why not include Greece?"
                            "Obviously, the Western world doesn’t want to help Greece. The West wants to loot Greece. The deal is that Greece gets new loans with which to repay existing loans in exchange for selling municipal water companies to private investors (water rates will go up on the Greek people), for selling the state lottery to private investors (Greek government revenues drop, thus making debt repayment more difficult), and for other such “privatizations” such as selling the protected Greek islands to real estate developers."
                            Starvation Is The Price Greeks Will Pay For Remaining In The EU -- Paul Craig Roberts -

                            Here is an article stating that GOV would never confiscate gold or silver because they can always devalue the dollar to free up money. The article is total BS because our trading partners are going to demand trade settlement in gold.

                            Ben Shalom Bernanke said that he was pumping up stocks and bonds so that people would feel wealthier and go out and spend. The whole idea is BS because it has always proved to be temporary. Out of fairness, he was probably pushed to expand by U.S. GOV. He probably knows better himself.
                            "How many people do you know who believe that borrowing lot’s of money to make one’s “wealth effect” look good, actually changes the fact that they are
                            BORROWING from their future to have that image today. How could Bernanke have ignored this basic principle of personal and business finance?"
                            Actually, there are quite a few people who are willing to borrow money today just to support their image.
                            "As Vreeland advises, 'Never worry about the facts. Project an image to the public.' The art of success is to create a world 'as you feel it to be, as you wish it to be, as you wish it into being."When No One Sees: The Importance of Character in an Age of Image(2000), Os Guinness, pg 2.2 [Quoted in Destroy a Currency, Extend a Rally, 11/8/14]

                            "the total inventory of Treasuries available to market makers today is $1.7 trillion, down from $2. trillion at its peak in 2007. 7 Meanwhile, the Treasury market is $12.5 trillion; it was $4.4 trillion in 2007.”
                            [JP Morgan Shareholder letter from Jamie Dimon, April 8, 2015, pg 31] "
                            That is going to make quite a big splash when it implodes.
                            "The nation’s top publicly traded companies have gone from having 70% of their profits available to reinvest in their own business, to just 2 percent in 2014. "
                            "Bob Ordemann’s team of 80 software developers and engineers were among the 8% or 6,000 workers that Cisco announced were being laid off last year. These individuals, many of whom had worked to build the company during their careers, were slammed with the reality that at the same time they were being laid off to “cut costs”, the company was continuing to spend billions to buy back its own stock,"
                            “It is a terrible thing for the economy because the growth of the economy and the growth of individual companies depends upon their reinvesting in their business and expansion into other lines of business, and paying 98 percent of your earnings out as dividends or stock buybacks implies that you have no future.”

                            "Predictably (at least for believers in regression to the mean), all 27 bubbles broke and went all the way back to the preexisting trend. If it does not do this, it will be the first failure to do so in modern times."


                            • Rape of Ukraine, stalled rape of Greece

                              Ukraine has LOTS of farmland. The IMF is going to rape them good. Even though they can't pay, the IMF is still loaning them money. Same happened to Greece. Greece isn't following the plan and has a plan of their own.
                              "Greek Parliamentary Debt Committee Declares All Debt Illegal"
                              Greek Parliamentary Debt Committee Declares All Debt Illegal - The Automatic Earth
                              The European Union was originally a coal and steel union. The socialists gradually morphed the agreement into a political union. The various participants were "allowed" to vote and vote until they got it right.
                              BUT, GOV is heavily infested with lawyers. Being parasites who contribute nothing to the economy, they need to create some sort of niche where they can't be pried loose. GOV is the perfect place for them. it is close to impossible to pry out a GOV employee.
                              The bureaucracy of the European Union was overlaid on top of the State bureaucracy. This reduced GDP by 20% in every victim country. MORE GOV,, more lawyers and less money in your pocket. The facts prove it. The lawyers and bureaucrats are sucking the life out of Europe.
                              "The fear is that if Greece leaves the euro, the country will return to prosperity — and then other countries might follow suit."
                              Europe’s secret fear about Greece - MarketWatch

                              EVERYWHERE you look, GOV and bankers are preparing for the crash. They are desperate to convert their thin-air money into tangibles. That is why the hurry to take over Ukraine, Greece and who ever else they can suck up. The very system that we use and live in is fatally flawed. The petabytes of information that flow daily have hastened the crash. In 1934 or so, Eccles, the head of the FED said that a debt currency can NOT work. Well, it worked for a while. That time is swiftly coming to an end.

                              New post;


                              • The FED; flawed from the beginning

                                "The monetary system enacted in 1913 (and all fiat monetary systems), issuing currency backed by interest bearing indenture, was fatally flawed due to a requirement for its very survival to create an ever-increasing stock of money, without also providing the means for perfect investment, resulting in a system where debt ultimately consumes all profits and labour over time. A system only a banker could love. Because such a system is predicated on devaluation (by its requirement for perpetual growth in money stock) and because that sealed its fate, the system’s end was perfectly predictable upon its inception."
                                The FED has always insisted on a 2% inflation target
                                "The system’s fatal flaw is inherent in that its very survival necessitates that each dollar supplied requires more than a dollar returned. With that the economy necessarily became a mechanism for ever increasing trade (cash) flow (a banking objective and function), conflicting with its natural mechanism as a means to a rising standard of living (a societal objective and function). The result being an unsustainable build up of debt by way of artificial money creation, which would force economic inefficiencies such that capital allocators would necessarily forsake labour for profits – an unnatural behaviour given labour (i.e. consumer) is the subsistence of profits in the same way profit (i.e. employer) is the subsistence of labour."

                                The system necessarily wipes out labor and eventually reaches a point where it "makes" all it's profit off of speculation. It prints "money" and buys up all the assets.... a HUGE disconnect. Labor is left out of the equation BUT, only temporarily.
                                "As we know, the false value or the illusion of wealth creation ended with total wealth for 90% of the US falling by 40% (a staggering statistic that remains unimproved even 6 years on). The thing to understand is that this was entirely predicable and was predicted by Ron Paul in a 2001 speech to Congress (and Peter Schiff, and many others subsequently). The point being the system was fatally flawed from its very birth and so its death was, in fact, absolute and predictable. There was no uncertainty as to its fate, as the system design necessitated its own end. I will show that inherent within our monetary system exists a similar fatal flaw and predictable end."
                                The Fed’s Fatal Flaw: A Predictable End | First Rebuttal
                                Like the Eurozone agglomeration, the FED was on an inevitable path to destruction. The banks create the dollar but, NOT the interest.
                                From 1944 to 1964, we floated along by having a lock on manufacturing for the world. This brought in enough wealth that we were able to carry the interest burden. In the mid-60s, we became the welfare-warfare state. We over-printed the dollar and gold left the treasury at the rate of 100 tons a week in the summer of 1971.
                                We would have crashed then but, we offered the Saudis a carrot and a stick.
                                The petro-dollar was born and this scheme brought in enough wealth that we avoided collapse. We enforced the petro-dollar to keep the money rolling in BUT, that enforcement was very expensive.
                                Our national debt is very close to what our war debt is. This is, of course debatable because David Walker, the head of GOV accounting said that he couldn't possibly certify that the budget was honest.

                                Wealth was constantly being sucked out to service the debt. When we crashed into low-wage competitors, wealth left our shores. Wealth has gone down enormously but, the financial system is resisting a similar shrinkage.
                                The system was flawed from the beginning but, we papered over the shortcomings by pillaging other States and the environment.
                                51% of Americans receive a check from GOV and the pillaging just can't keep up with the drain.
                                Manufacturing is gone. The petro-dollar is gone. We stole the Saudi gold in London and they are attacking. Our cannibalistic central banking system needs a constant influx of wealth. In lieu of that, we are reduced to creating currency instead of wealth. Our fate was sealed with the inception of the FED but, we got constant reprieves by pillaging other countries.