Energetic Forum  
Facebook Twitter Google+ Pinterest LinkedIn Delicious Digg Reddit WordPress StumbleUpon Tumblr Translate Addthis Aaron Murakami YouTube 2019 ENERGY CONFERENCE - ONLY 150 118 99 71 63 12 SEATS AVAILABLE!

2019 Energy Science & Technology Conference
ONLY 150 118 99 71 63 12 SEATS AVAILABLE - LIMITED SEATING
Get your tickets now: http://energyscienceconference.com


Go Back   Energetic Forum > >
   

General Discussion Other general discussions on topics not listed above.

* NEW * BEDINI RPX BOOK & DVD SET: BEDINI RPX

Reply
 
Thread Tools
  #421  
Old 07-30-2014, 01:50 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Illiquid, insolvent and busted

Ludwig Von Mises said that there is NO escape from a credit boom. Our time will come but, who knows when? There are some fresh indications.
“There have been only two instances when the NYSE Tick and stock prices diverged radically, and that was in the first quarter of 2000 and the third quarter of 2007. The third time was April of 2014,” Cook says"
Stock trader who called three crashes sees 20% collapse - Michael Sincere's Long-Term Trader - MarketWatch
The 10 year treasury rate is starting to rise and may go up by Thanksgiving. There are $ 440 trillion in interest rate swaps tied to the 10 year rate. (derivatives). Why the 10-year Treasury could yield 4% by Thanksgiving - Mark Hulbert - MarketWatch

QE was a mechanism to rescue institutional debt that was in danger of default. It was a "hail mary" effort because we had lost our job and couldn't pay. The FED printed to save the banks but, the currency inflation resulted in price inflation and we were even LESS able to pay.
"The crisis will indeed come, but it will probably have its origins in the inability of individuals, robbed of the purchasing power of their fixed salaries and savings, to pay the prices demanded from them by businesses. This is called a slump, an old-fashioned term for the simultaneous contraction of production and demand. Not even zero or negative interest rates will save the banks from this increasingly certain event, for a very simple reason: by continuing the transfer of wealth from individuals through monetary inflation, the cure will finally kill the patient."
http://www.24hgold.com/english/news-...r+Macleod&mk=1
We are BUSTED and we are defaulting.
Study: 77 Million Consumers with Credit Files Have Delinquent Debt - ACA International
M.F. Global absconded with their clients money,, something like $ 680 million. Corzine was an insider. The courts ruled that M.F. Global didn't do it intentionally so, it was forgivable. The banks are illiquid and insolvent. Keep in mind that they sweep all accounts many times a month and grab any extra money that isn't working. They are flat broke AFTER stealing all your money.
__________________
 
Reply With Quote

Download SOLAR SECRETS by Peter Lindemann
Free - Get it now: Solar Secrets

  #422  
Old 08-02-2014, 02:54 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Walking away from debt

GOV printed money for wars. Not wanting the little guy to get mad, GOV printed money for welfare. This money inflation caused price inflation. Because we had the reserve currency, we could export this price inflation. We just had to print to buy what we wanted. As the rest of the world built manufacturing capability, we lost our high wages. We increasingly spent future wages for today's toys. The banks extend us ever-more credit for an ever-longer time period.
" The good news is that the American economy has improved to the point where credit is much more readily available than it was a few years ago, so people have an easier time financing cars.
If you've ever financed a car, you know what a pain it is to make payments on the loan every month for four or five years. But what about seven years, or eight? " The 97-Month Car Loan Is The Craziest New Car-Buying Trend
Not to worry! They're still selling cars,,, right?

4.Americans are so broke that car dealers are having to go to extreme lengths to get new customers. Last year, one out of every four auto loans in the United States was made to someone with subprime credit.
The end result is; "Overall, U.S. households are 11.68 trillion dollars in debt right now."

21 Ways To End The Phrase “Americans Are So Broke…” « The Burning Platform
We walked away from underwater houses. We'll walk away from overpriced cars.
6.Americans are so broke that they are falling farther behind on their student loans than ever. The total amount of student loan debt in the U.S. has now reached a whopping 1.2 trillion dollars, and approximately seven million Americans are in default on their student loans at this point.
Hmmm, 7 million are in default on student loans. That's a lot of walking away.
__________________
 
Reply With Quote
  #423  
Old 08-03-2014, 09:08 PM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Ww III

Quite a few people have been saying that current actions are pulling us towards a new world war. Many are speculating that some huge false-flag action will set it off.
"In order for this “reset” to be achieved, however, the establishment needs a historically monumental distraction. A distraction so confounding and terrifying that by the time the public has a chance to examine the situation rationally, the elites have already tightened the noose.

I have been warning ever since the beginning of the derivatives/debt collapse of 2007/2008 that the international financiers and globalists who created the artificially low interest rates and fiat lending bonanza would one day be required to fashion a considerably dangerous event in order to trigger the final collapse of the dollar based monetary system and replace it with a new currency (or basket of currencies), along with a new centralized financial authority."
"Economic warfare alone could be extremely effective in initiating full spectrum fiscal implosion as well as mass starvation, mass panic, and mass desperation. All the signs lead me to believe that financial combat and 4th generation warfare will be used in the place of large armies and missiles."

"After the great financial war has subsided, and the people are suitably poverty stricken and desperate, it will be institutions like the BIS and IMF that swoop in to “save the day”. Their offer will be to consolidate economic control into the hands of an elite group of bankers “not affiliated” with any particular nation state, thereby insulating them from "political concerns". The argument will be that national sovereignty is a bane on the back of humanity. They will claim that the catastrophe will continue until we “simplify” and streamline our economic and political systems. They will present themselves as the heroes of the age; the ones who predicted the crisis would occur, and the ones who had a solution ready to save the day (after sufficient death and destruction, of course)."
Internationalists Are Pushing The World Towards Globally Engineered Economic Warfare | Zero Hedge
__________________
 
Reply With Quote
  #424  
Old 08-06-2014, 03:31 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Long term progress report

’46-’59 (13yrs)

Debt grew 1.06x’s ($269 B to $285 B)
GDP grew 2.2x’s ($228 B to $525 B)
’60-’75 (15yrs)
Debt grew 2x’s ($285 B to $533 B)
GDP grew 3.3x’s ($525 to $1.7 T)

’76 -’04 (28yrs)

Debt grew 15x’s ($533 B à $7.4 T)
GDP grew 7.3x’s ($1.7 T à $12.4 T)
’05 -’14 (9yrs)
Debt grew 2.4x’s or 240% ($7.4 T à $17.5 T)
GDP grew 1.4x’s or 140% ($12.4 T à $17 T

’75-’14

debt (total government obligations) grew 168x’s ($533 B à $89.5 T*)
GDP grew 10x’s ($1.7 T to 17 T)
US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth - See more at: US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth & The Gap is Growing. We Now Await the Nature of the Cramdown. - Biderman's Money Blog
__________________
 
Reply With Quote
  #425  
Old 08-07-2014, 03:15 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
15 vids

There are a lot of people who are writing to wake people up. Here are 15 vids on the subject.
The Silver Liberation Blog: The Top 15 Economic Truth Documentaries
IN 2006, the U.S. comptroller general told us that it was going to crash.
DAVID M. WALKER

Comptroller General of the United States

Government Accountability Office

Washington

America's Red Ink
__________________
 
Reply With Quote
  #426  
Old 08-07-2014, 03:03 PM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
All currencies are in danger

There are dozens articles and of vids showing/proving that all wars are banker wars. Churchill made it clear that WW II could have been avoided but, the bankers wanted it. He also made it clear that Germany was outproducing England and had to be destroyed. Historically, the underproducer State engages in currency war to try to maintain/gain advantage. Nobody wins a currency war in the end. Currency wars lead to shooting wars.
Near the end of WW II, hundreds of delegates met at Bretton Woods to create a system that would avoid future currency wars. They locked the U.S. dollar to gold and locked all other currencies to the dollar. It was a good idea and a good system. No State has enough cash for a protracted war. Bankers had always provided credit for wars. This was an attempt to limit the credit available for wars.
In a general sense, all politicians are power mad. Why would they jump into such a dirty game if they didn't have an overwhelming desire for power.
In the early 60s, the politicians and bankers started up the war cycle by overprinting the dollar. By 1971 the Bretton Woods agreement had been destroyed.
The monetary authorities who knew their stuff were aghast because it invited a new cycle of currency wars leading to hot wars.
The Euro was designed as a replacement for the dollar. MANY States around the world bought U.S. Treasury paper to support the dollar while the Euro was brought to maturity. They held their nose and bought our stinky paper that was printed with wild abandon.
Th bankers were just filled with glee and they started wars in any corner that they could find. Goldman Sachs sold poisonous derivatives to weak countries like Greece so that their economies would eventually blow all to hell,,, and crash the Euro. More details here; FOFOA

As usual, the actions of the bankers have put their own currency in danger. They seem not to care about the long run. Editorials | Mauldin Economics
The very real risk is that all currencies could be destroyed. The industrial revolution has brought so much wealth that it must be expressed/stored in paper instruments that are a claim on future productivity. The pyramid is stacked so high that it threatens to collapse in one huge default. The FED / IMF is willing to kill all competition to preserve the dollar. They risk killing all currencies. http://rt.com/business/162084-dollar...netary-system/
WE shall see.
__________________
 
Reply With Quote
  #427  
Old 08-12-2014, 02:23 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
spending down our fortune

We lost our jobs and we're spending down our fortunes.
#4 From September 2013 to January 2014, the personal saving rate in the United States dropped by a staggering 16 percent.
#10 Total consumer credit has risen by a whopping 22 percent over the past three years.
#12 Overall, U.S. consumers are $11,360,000,000,000 in debt.
We're trying to maintain our standard of living by borrowing
#14 U.S. workers are taking home the smallest share of the income pie that has ever been recorded.
We're trying to compete with China, Bangladesh and the robots.
http://www.zengardner.com/the-u-s-co...eres-19-signs/
The sad fact is that many people are trying to eat and stay alive using credit. Besides this heavy downshifting, it must be remembered that FED GOV alone passes out more than $ 2 trillion in benefits in 2013.
Americans Got $2 Trillion in Benefits from Federal Government in 2013 | CNS News
Add in the money paid out by states and counties. Imagine what the economy would be like if this $2 trillion ++ had not been paid out.
FED GOV has pumped many $ trillions into the stock market. Most but, not all went to the 1%. Imagine the state of the economy if that money had not been created.
__________________
 
Reply With Quote
  #428  
Old 08-13-2014, 02:12 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Oil and silver

Back in the 60s, you could buy a gallon of gas with one silver quarter. You can do the same today. The 2 prices follow each other pretty closely.
http://www.itulip.com/images/OilvsSi...03-2006-25.gif
The Grace Report stated that not one dime of taxes goes to GOV. GOV prints all the money it wants. Taxes are just there to support the FED and act as a straw man. Our price inflation is due to the currency inflation caused by GOV. The current price of Brent Crude is over $ 100. Energy has gotten very expensive. Actually, it hasn't,,,, supporting GOV has gotten very expensive.
We passed peak, cheap oil in 2005. The oil price could be expected to go up because the easy pools are depleted.
The flip side of currency inflation is dollar devaluation. It takes more and more dollars to buy oil. Recently, the FED printed a ton of money to rescue debt that was in danger of defaulting. The resulting inflation has kicked dollar devaluation into high gear.
EVERYBODY is holding / dealing in devalued dollars. This includes the oil companies. Commodities tend to track each other. Big Oil is trying to produce ever-more difficult to find oil with ever-more worthless currency. The European oil majors are losing $ billions. American oil majors;
" The world’s leading oil and gas companies are taking on debt and selling assets on an unprecedented scale to cover a shortfall in cash, calling into question the long-term viability of large parts of the industry.

The US Energy Information Administration (EIA) said a review of 127 companies across the globe found that they had increased net debt by $106bn in the year to March, in order to cover the surging costs of machinery and exploration,"
Oil and gas company debt soars to danger levels to cover shortfall in cash - Telegraph

When we were on the gold standard, gold and currency were reciprocals. Now, that we are (for the time being) on the petro-dollar standard, currency and energy are reciprocals. Energy is a reciprocal of the financial system.

"Roger Boyd discusses the negative implications of the Self-Reinforcing Feedback Loops of Energy and the Financial System. Basically, Boyd shows how the world moved into a new economic system over the past century where the Global Financial System and Energy are now dependent on each other to survive.

According to Boyd, the fractional reserve monetary system was designed to fund future investment in the energy sector, thus enabling the global energy supply to grow. And, as the global energy supply continued grow, so did the size of the global economic and financial system."
THE UNKNOWN FACTOR: How The Global Financial System Will Collapse : SRSrocco Report
Energy IS the master resource so, it makes sense that energy and finance are tied at the hip. The FED rescued the banks with lots of printing. This inflation resulted in price inflation. In actuality, commodities stay the same but, effective wages go down. Oil consumption has fallen while oil accessibility has fallen also. The oil majors have taken on huge debt and are selling off assets. Junk-bond markets are seeing their highest outflows in history. If the perception of investors leads them to abandon oil investments too, the oil majors will default on their debt.
__________________
 
Reply With Quote
  #429  
Old 08-15-2014, 02:14 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Wrong plan

MANY writers have pointed out that the FED and Treasury are doing exactly the wrong thing.
Jim Rickards, " Reducing money printing and raising interest rates would strengthen the dollar, but they would pop the asset bubbles in stocks and housing that have been re-created since 2009. This would also put the policy problem in the laps of Congress and the White House where it belongs. The problems in the economy today are structural, not liquidity-related. The Fed is trying to solve structural problems with liquidity solutions. That will never work, but it might destroy confidence in the dollar in the process. Federal Reserve officials have misperceived the problem and misapprehend the statistical properties of risk. They are using equilibrium models in a complex system. (Ed note: Complexity Theory explores the fundamental properties of dynamic rather than equilibrium systems and how they react and adapt to exogenous or endogenous stimuli.) That is also bound to fail"
The Death (or Rebirth?) of Money: An Exclusive Interview With Jim Rickards | John Butler | FINANCIAL SENSE

OK, ho hum, we're on the road to a crash. The FED believes that it / we are dealing with an equilibrium problem.
The financial industry proves other wise.
#1 The U.S. junk bond market just experienced “a 6-sigma event” earlier this month. In other words, it is an event that is only supposed to have a chance of 1 in 500 million of happening. Billions of dollars are being pulled out of junk bonds right now, and that has some analysts wondering if a financial crash is right around the corner."
#5 The four week moving average for mortgage applications just hit a 14 year low. It is now even lower than it was during the worst moments of the financial crisis of 2008."
#14 The number of Ebola deaths continues to grow at an exponential rate, and if the virus starts spreading inside the United States it has the potential to pretty much shut down our entire economy.
I hope that y'all have put in a garden.
__________________
 
Reply With Quote
  #430  
Old 08-15-2014, 03:07 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Saving the corporations

The bankers got rid of the gold standard. This made them rich and us poor. There is a very good article showing what would have happened as far as war if we had stayed on the gold standard,,, no wars. What about the general economy?
"Forbes: “If we had maintained, since the early 1970s, the average rate of economic growth when the dollar was backed by gold, do you realize the U.S. economy today would be more than 50% larger than it is now if we had just maintained those average rates.”
Robert Kiyosaki & Steve Forbes: Destruction of the Dollar - Politics, The Unknowns about Money, and How Money Affects Your Trust

BUT, the gold is gone;
"The U.S. gold reserve has been leased out but has not left its vaults.

-- The leased gold consists only of certificates of title that have been rehypothecated many times, creating a vast supply of imaginary gold that is undeliverable.

-- If called for delivery, those certificates will be nullified by a bullion bank's claim of "force majeure" and settled with yesterday's now-much-discounted cash price.

-- The gold exchange-traded fund GLD was essentially looted of 500 tonnes last year to smash the gold price down but this cannot be done again because that gold is gone too."
Gold Videocast: Jim Rickards & Peter Schiff on Gold & Currency Wars

Martin Armstrong keeps track of EVERYTHING.
"The Sovereign Debt Crisis is unfolding on schedule. I warned at the Philadelphia Conference that half of Germany’s municipalities are on the edge of bankruptcy as was the case with Detroit. Instead of reform, no, government just increases the tax burden upon the people who they see having an endless supply of money to be expropriated for their personal glory.

Just like a small business that keeps expanding, those in government do the same thing except it consumes money never creates anything. Socialism is not about helping the less-fortunate. It is about government workers helping themselves to what you have. "
Armstrong: Big Bang – Sovereign Debt Crisis in Germany Begins
Yep, the endless legions of bureaucrats are a big segment of the free-$hit army.
Japan just increased taxes,, again. The economy fell,,,, again. History proves that this is the inevitable result but, the corporations insist on being rescued no matter the cost to the general economy.
The bankers are trying to hold on to the advantage that they have had for hundreds of years. The next part of the plan is privatization. In Greece, the banker wrote off a chunk of the debt in trade for 100 of the best beaches.
They locked up Staircase-Escalante for their future payoff.
__________________
 
Reply With Quote
  #431  
Old 08-16-2014, 02:31 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
599 bottles of beer on the wall

"As of January 7, 2009 it now takes 81.8 GBP to purchase that same troy pound of sterling silver - a loss of 98.8%!"
"As of January 7, 2009 the price of a troy ounce of silver is US$11.22, representing a 89.5% drop in value!" Today, $ 19.55
"This analysis includes 599 currencies that are no longer in circulation. The median age for these currencies is only fifteen years!"
"Destroyed by hyperinflation 156 Currency destroyed through over-issuance by the government."
DollarDaze Economic Commentary Blog - Gold, Oil, Stocks, Investments, Currencies, and the Federal Reserve: The Fate of Paper Money by Mike Hewitt
After WW II, the Bretton Woods agreement brought price stability. It did NOT allow the monetary-base expansion necessary for war.
http://dailyreckoning.com/dr-content...14_MvgAvg1.png

Ed. note: Our "Jim Rickards project" is moving full steam ahead. We spoke with Jim this past Wednesday… and he revealed that there at least 30 different events that could trigger the next dollar collapse."

"Americans who had invested in gold earlier will be confronted with a 90 percent "windfall profits" tax on their newfound wealth, imposed in the name of fairness. European and Japanese gold presently stored in New York will be confiscated and converted to use in the service of the New Dollar Policy. No doubt the Europeans and Japanese will be given receipts for their former gold, convertible into New Dollars at a new, higher price."

"The Fed is attempting to inflate asset prices, commodity prices and consumer prices to offset the natural deflation that follows a crash. It is basically engaged in a game of tug-of-war against the deflation that normally accompanies a depression. As in a typical tug-of-war, not much happens at first.

The teams are evenly matched and there is no motion for a while, just lots of tension on the rope. Eventually one side will collapse, and the other side will drag the losers over the line to claim victory. This is the essence of the Fed's gamble. It must cause inflation before deflation prevails; it must win the tug-of-war. "
__________________
 
Reply With Quote
  #432  
Old 08-16-2014, 04:15 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Infaltion vs default

The Europeans (banks) are screaming for the ECB to print tons of money. The French are pushing. The Germans are holding back. The EU treaty does not allow the ECB to print to buy assets. The various treaties have already been broken so, who knows? The bankers desperately want inflation as opposed to default.
In early history, we had debt jubilees to take away the punch bowl and execute a reset. Jubilees went out of fashion and MANY States resorted to defaults to create a reset. An understanding of the nature of compounding debt shows that an interruption in the compounding action creates a huge loss to the bankers. The imposition of the Euro currency was an effort of the bankers to remove the ability of any sovereign State to execute a reset/default.

A sovereign default is specifically focused on the bankers who hold sovereign debt. Inflation, on the other hand, takes from everybody. Since the bankers created their money out of thin air, they don't really have very much invested. The inflation that they demand is not all that punitive to themselves.
They can comfortably demand any level of inflation and, they don't really lose. The corrosive action of the compounding burden goes on uninterrupted. With default, this corrosive burden suffers a break in the chain.

We see this with the FED. ZIRP is meant to keep the compounding action to a minimum so that the compounding action does not push the economy over the edge to default. ZIRP is a holding action that embraces a temporary loss to preserve the chain of compounding while inflation is put to work.

"They" are not having much success injecting inflation into the general economy. We are too saturated with debt. We lost our jobs to a low wage competitor and wages are slipping. It is very difficult to create widespread price inflation with new money if "they" can not create a wage-price spiral.
The inflation of financial markets without corresponding wage-price inflation drives a diminishment of consumption. The productive sector of the economy is crashing at the same time that the bankers require a generous contribution out of our pockets to create the inflation necessary to avoid a default.
So, while our contribution is necessary to maintain an unbroken chain of compounding interest, the extraction of our contribution pushed us closer to the default that they hope to avoid.
__________________
 
Reply With Quote
  #433  
Old 08-21-2014, 03:48 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Th fake recovery... problems in China

Y'all have been told many times that the recession is over and the economy is recovering. Money printing has been put to work to fix everything. Here is the Case-Schiller index (housing) divided by the FED balance sheet;
http://confoundedinterest.files.word...ng?w=878&h=584
Here is the S&P 500 divided by the FED balance sheet;
https://confoundedinterest.files.wor...ng?w=795&h=528
THIS IS YOUR RECOVERY AND THIS IS YOUR RECOVERY WITHOUT DRUGS « The Burning Platform

Income, home ownership and labor force participation. http://confoundedinterest.files.word...ng?w=585&h=418
Confounded Interest | Welcome To The WORST Real Wage Growth Economy Since WWII (What Will The Fed Do?)

Things don't look so good in China either. Protests are illegal in China. "Yet, according to official police statistics, the number of annual protests rose to 87,000 in 2005 from approximately 8,700 in 1993. Currently, there are 300-500 protests in China each day, with anywhere from ten to tens of thousands of participants"
http://www.cnbc.com/id/101918928
__________________
 
Reply With Quote
  #434  
Old 08-23-2014, 03:06 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Signs of desperation

The West has been inflated to the limit. The PTB are trying to pump in more debt but, it isn't doing any good for the producing economy
Prof Sims, nationalize credit; Nobel guru fears it may be nigh impossible to stop deflation – Telegraph Blogs

Prof Maskins; Nobel gurus fear globalisation is going horribly wrong (technical) – Telegraph Blogs

I can assure you that this isn't going to work out well. The investors do not consider themselves to be parasites. The enormous gains in productivity should have brought a dramatic drop in prices. The corporation is structured to pass profits to the stockholders. The workers did not see gains in remuneration that were equal to their gains in productivity. The greater the returns to the stockholder, the farther behind the worker fell. The greater the returns to the stockholder, the more that credit had to be extended. The stockholder assigns his credit to a corporation. This facilitates but, it does not produce.

Currently, the non-producers are reaping all the rewards. The worker has no bargaining power. He can't demand that the corporation starve the stockholder to effect price deflation in the things that he would like to buy. His effective remuneration falls and he reaches farther and farther into future wages. BUT, he reaches a point of debt saturation where he can no longer reach any further.

ZIRP is an effort to empower him to continue to consume without incurring any more interest load. BUT, he lost his job. He can no longer service his debt. Debt is offered to those who can't repay in an effort to keep the credit wheel rolling down the road. Not surprisingly, they default in masse.

The oversize gains of the non-producing stockholders are a short term benefit. Once the great mass reaches debt saturation, the disparity between productivity and prices wipes out consumption. The rich did well by extracting TOO MUCH rent on their money. If the middle class is destitute, then, de facto, the rent was too high. Over-consumption and global wage arbitrage play a part in this also. BUT, the banks threw away their lending standards.

Credit grew at 6 times the rate that the GDP grew. The blame falls mostly on the central bank. Bank credit suffered a massive crash. The CB tried to inject high-powered money to offset the credit lockup. FED money was used to rescue everything that was in danger of default. Catastrophic deflation was avoided. The price deflation that would be necessary to bring back consumption was avoided. The credit structure and price structure were rescued. Since the wage structure and aggregate wages continue to fall, the defaults will continue to grow.

Keep in mind that defaults are growing even though 50% of the population receives benefits from GOV to the tune of $ 2 trillion ++,,, counting non-federal benefits. The rich can overcharge for renting their free money but, the country is dying all around them. Their free money is just debt notes that they intend for the middle class to work off. The middle class isn’t working.

If 50% are receiving GOV benefits, you can bet that they aren't paying much tax or buying much in the way of non-necessity goods.

Where is the tax money going to come from. It has been well proven that every one dollar increase in taxes shrinks the economy by about three dollars. It removes capital off the top that we can no longer use for investment.

The producing economy is what keeps the country going. The producing economy stalls if the masses can't consume. So, while all the bankers, bureaucrats, beggars, AND investors may believe that they are entitled to part of the output, they have to keep the parasitism limited. The investor may make a killing in the stock market but, this causes price inflation down the road.

Short term thinking is starving the goose that lays the golden eggs.
__________________
 
Reply With Quote
  #435  
Old 08-24-2014, 04:54 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Rickards, gold and the collapse

Jim Rickards is a lawyer and investor. The Pentagon called on him when they wanted to do war-game scenarios of economic collapse. The Pentagon now claims that economic collapse is the number one threat to America. One would certainly expect Rickards to know the outcome of the war-games projections.
Hugo Salinas Price has written that we may go into a "500 year period of darkness" Robert Prechter calls for a deep depression.
Rickards has written a couple of books; The Currency War and The Death of Money. His predictions have proved to be accurate,, so far.

America has pissed off the whole world. Endless wars to keep the war merchants rich. Our current quest to destroy islam is making everybody nervous. The world would much rather align with Russia and China than a proven war monger. Every new attack that we make convinces more States to abandon America for their own survival.
Washington’s Nightmare Comes True: The Russian-Chinese Strategic Partnership Goes Global (II)*|*Oriental Review

GOV knows that there is going to be a cascade of defaults. They know that there is going to be a currency reset. The very serious problem is that there is no reliable storage of wealth. GOV has a runaway printing press. Jim Rickards talks about a bigger rollout of the Special Drawing Rights ( SDR ).
Why should anybody trust the IMF? "1979: U.S. inflation soared out of control, past 14%. Oil-producing countries fretted the value of their dollar reserves was plunging. The IMF issued 12.1 billion SDRs through 1981."
Print em up and send em out.
Rickards said that the world would go back on a gold standard. All States and economies would have to rebalance. He claims that Western gold is being shipped out so that China will have a backing for it's currency;

"The most provocative proposition in Rickards’ book, however, isn’t hidden global inflation. It’s this: Before the SDR can assume its role as the new leading global asset, China must accumulate a much larger stash of gold. And the gold price is being manipulated for the express purpose of making sure China gets it relatively cheaply.

We’ve long chronicled China’s gold accumulation. When we interviewed Mr. Rickards last year, he explained the rationale: “They want to be in a position where they just raise their hand and say to the world, ‘Hey, we’ve got our gold, now we’re a player. Now when the international monetary system collapses and the world has to reconfigure the system, we get a big seat at the table.’”

In The Death of Money, Rickards goes a step further: He says Western powers are making room at the table for China — using the precise mechanism we described in our “Zero Hour” scenario. Western central banks have “leased” their gold to commercial banks, and those commercial banks have sold that gold to Asian buyers — including the Chinese central bank.

“The gold price must be kept low,” Rickards writes, “until gold holdings are rebalanced among the major economic powers, and the rebalancing must be completed before the collapse of the international monetary system.”
__________________
 
Reply With Quote
  #436  
Old 08-27-2014, 02:37 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
The CFR and end times

At the end of WW II, the Bretton Woods agreement made the U.S. dollar the reserve currency. As prosperity returned to the West, there was an increasing demand for dollars. This allowed America to print paper to buy whatever we wanted. They sent us Beamers and Toyotas and we sent them paper. We used our status to finance wars everywhere. Eventually, we spent TOO much. America is in debt. The usual procedure is to inflate away the debt by overprinting. The printing causes a wage-price spiral that devalues the currency and makes it painless to pay down the debt.
The Western worker is in competition with the Eastern worker. Global wage arbitrage sends the jobs to the East. To make matters worse, the West buys goods from the East. The FED can't seem to cause the necessary inflation. They can print but, it never gets circulated.
Helicopter Ben said that he could ALWAYS stop deflation. He could make helicopter drops of cash if necessary. True to his word, he sent the helicopters to make drops to his friends in the financial industry. The Wizard from Princeton just assumed that money would trickle down to the middle class.

By forcing interest rates to zero, big, bad, bald, Ben Shalom Bernanke forced investors to shy away from investing in America. He just couldn't get the inflation he wanted no matter how much he printed. He had little chance of causing a wage-price spiral.
Everybody in the finance industry knows that money is created out of thin air. NOBODY in the finance industry wants the average person to be aware of this. Same is true of GOV. GOV prints what it wants and taxes are just a side show. The FED can print currency, ex nihilo, but, never for the common man.

If GOV just printed currency and sent it to everybody, nobody would work. GOV is in the business of tax-farming. We MUST be kept working. GOV squeezes us for every penny and screams for more. They stash it all away to keep us from becoming too wealthy.
Walter Burien: CA CAFRs show $8 trillion in tax surpluses, what we should do - National Nonpartisan | Examiner.com
WE would stop working. If GOV gave us boatloads of money, we would be aware that it didn't have any real value.

Recently, the Council on Foreign Relations recommended that the FED send tons of money to every person.
http://www.zerohedge.com/news/2014-0...-consumers-cas
"In other words, a world stuck in the last phase before complete Keynesian collapse, had no choice but to gamble "all in" with the last and only bluff it had left before admitting the economic system it had labored under, one which has borrowed so extensively from the future to fund the present that there is no future left, has failed.

The only question left was when would the trial balloons for such monetary paradrops start to emerge.

We now know the answer, and it is today. "
Last year, FED GOV passed out $ 2 trillion in benefits. The economy is still in the crapper. How much would GOV have to pass out to revive the consumer economy? How much each year? what about the $ 17 trillion deficit? What about the $ 212 trillion in unfunded liabilities?
For the CFR to propose this is a sign of desperation. ZIRP has trashed the economy. QE has trashed the economy. Free money would certainly make for some interesting distortions.
India seems to be looking at the idea. Direct Cash Transfers will reduce corruption: RBI governor Raghuram Rajan - Economic Times
The Central banks are aware that we are on a crash course into default. They hope to somehow force-feed liquidity into the system to hold off default.
__________________
 
Reply With Quote
  #437  
Old 08-31-2014, 05:33 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
No WW III

Somewhat off-topic but, VERY good news. The power mongers in D.C. are once again ready and willing to throw Europe to the dogs of war. The Wolfowitz doctrine calls for America to control central Asia. Russia wouldn't allow that. The only way to weaken Russia sufficiently is to pry it loose from Ukraine. The Net has educated the Europeans to the fact that they are under attack from America. There are huge demonstrations in Germany against the FED.
Merkel is a damn socialist who went to Karl Marx university. BUT, she isn't willing to take Germany down in flames.
" Merkel emphasized, “A solution must be found to the Ukraine crisis that does not hurt Russia.”

She added that "There must be dialogue. There can only be a political solution. There won't be a military solution to this conflict.”
http://rt.com/op-edge/183328-minsk-wales-germany-key/
She made it very clear. NO NATO fight over Ukraine. This is a fight over pipelines and energy. It can be settled with trade negotiations instead of war.
The debt of the financial industry in Great Britain is 500% of GDP. I'm sure that the London Bankers were salivating ( like any mad dog ) at the prospect of a wide European war.
The European tribes are well acquainted with war. They know very well that the bankers cause them. Russia has their doomsday weapons, the cobalt bombs. They have scalar weapons and precursor weapons. The Neocons have to be bloody stupid to even consider starting a war with Russia.
__________________
 
Reply With Quote
  #438  
Old 08-31-2014, 06:09 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Free money and expensive oil

GOV and the FED are lying through their teeth. It's kinda funny how open they are if you look at the right numbers. China quit buying U.S. treasury notes but, other countries took up the slack.
* Japan re-starts buying and adds 20% ($169 b) to $1058 b
* Belgium picks up 400% ($101 b) to $135 b
* Luxembourg adds 210% ($79 b) to $148 b
* Ireland adds 360% ($61 b) to $98 b
* Norway adds 280% ($37 b) to $57 b
* Caribbean banking centers add 55% ($80 b) to $227 b
The very strange thing is that; these countries had no currency reserves before they did all this buying.

Obviously, there is no chance of an economic recovery if energy prices continue to rise. The European energy companies are losing many $ billions. The America companies; "In one year the top 127 oil and gas companies spent $110 billion more on capital expenditures than they received from operations. So, they acquired $106 billion in additional debt "
The cash is flowing out of the oil companies. If it didn't, energy prices would rise and the economy would be far worse.
http://srsroccoreport.com/wp-content...FRAUD-10-1.jpg

The oil companies are crashing because GOV won't allow them to pass along their rising costs. MUST READ: A Fraud By Any Other Name Is Still A Fraud : SRSrocco Report
How long can this go on?
__________________
 
Reply With Quote
  #439  
Old 09-01-2014, 03:46 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Armstrong and Rickards

Martin Armstrong, "We have constructed the largest database in the world of how money has performed for thousands of years."
As I already posted, Armstrong says that the next crash point is 2015.75. He calls for a crash til 2020.05,,, then a rise to 2024.35. We will bounce around til the biggest crash of 2032.95
Why Will the Downturn 2015.75-2020.03 be Far Worse Than Before? | Armstrong Economics

Jim Rickards has a new video that is extremely informative.
https://www.youtube.com/watch?v=KYW5OGWfqJc
He is privy to all the projections of all the intelligence agencies.
__________________
 
Reply With Quote
  #440  
Old 09-02-2014, 04:26 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Rising food prices

This post is really nothing startling.
"By using plain and simple math, along with data charts, scientists at the New England Complex Systems Institute have come to a clear-cut conclusion that when food prices rise, as much as they are in the US, then people start rioting."
"Stated another way, the only reason most people obey laws and agree to live in a socially polite manner is because their bellies are full. Take away the food and all illusions of social friendliness vanish in about nine meals (three days)."
Liberty Balance: Scientists Warn The United States To Prepare For Even More Riots, Brace Yourself (Video)
BEER is the answer.
__________________
 
Reply With Quote
  #441  
Old 09-06-2014, 01:44 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Automatic Earth, Tedbits and Jim Willie

Our fractional reserve debt system is like an airplane with short, stubby wings. Keynesian Airlines flies crappy planes. They have a very high stall speed. If growth is below about 6%, there isn't enough debt below the wings to keep the plane in the air. The central bankers are printing up new debt just to keep the plane in the air. Debt is going up but, wealth is not. The new debt is rescuing old debt from defaulting. This just gets bigger because of the interest burden.

We slide towards a global-mean wage as debt just grows ever bigger. We aren't growing and we aren't going to grow in the future;
We Live In A New World, But We Don't Want To - The Automatic Earth

GOV has crippled wealth creation with crony capitalism and collectivism. They have purposely created dependency. The free-**** army does not want to cut back their lifestyle;
Useful Idiots and the Something For Nothing Society – Part 3 of 5 | TedBits
We are slip-sliding away because everybody tried to live on future wages. U.S. GOV is most guilty of this. BUT, GOV is going to go down swinging,,, at the whole world. The rest of the world is swinging back.
This article from Jim Willie will take your breath away.
https://www.perpetualassets.com/news...lie-exclusive/
__________________
 
Reply With Quote
  #442  
Old 09-16-2014, 04:16 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Pension funds at risk

When Willie Sutton was asked why he robs banks, he replied, "that's where the money is". The criminal bankers have drained about everything that they could get their hands on. They are laying their hands on new fortunes.
Argentina is the model. They stole all the pension money.
That same process is unfolding here and now.

"In an inscrutable move that has alarmed state treasurers, the Federal Reserve, along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, just changed the liquidity requirements for the nation’s largest banks. Municipal bonds, long considered safe liquid investments, have been eliminated from the list of high-quality liquid collateral. assets (HQLA). That means banks that are the largest holders of munis are liable to start dumping them in favor of the Treasuries and corporate bonds that do satisfy the requirement."
"But in a municipal bankruptcy, a judge would decide the fate of city workers’ pensions, making it an attractive option for banking interests. The oligarchs have long had their eyes on the massive sums represented by the pension funds."
I suspect that they can easily find a crooked judge.
They are setting up local GOV for asset stripping. They will go straight for the pension funds.
Preparing To Asset-strip Local Government? The Federal Reserve’s Bizarre New Rules. Destabilizing Economic Impacts Across America | Global Research
__________________
 

Last edited by Danny B; 09-16-2014 at 04:18 AM. Reason: forgot a link
Reply With Quote
  #443  
Old 09-17-2014, 04:04 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Medicare costs

In years gone by, when granny could no longer work, she spent her days rocking on the porch. Then came the day when she didn't feel at all well. The doctor came out with his little black bag and told us that Granny had consumption and there was nothing that we could do. Those days are gone and the little black bag has been replaced by many $ billions of expensive machines.
The proton beam machine at Loma Linda hospital cost $ 100 million just by itself.
The original social security act was created to care for widows and orphans. For the elderly, support kicked in at 65 years of age. The average life span was 57.
Politicians make promises to get votes. They promised medical care. As usual, they never projected just how expensive that might get.

"According to a new study from Stanford surveying nearly 1,100 doctors. It finds medical science has “its default set to maximal interventions for all patients, irrespective of the effectiveness of doing so.”
All that money Uncle Sam spends on health care? One out of every six dollars is spent on the final year of life.

And here’s a new number we’ve run across: A quarter of Medicare’s budget is spent on the final year of life. And 10% of Medicare’s spending goes toward the final 30 days.


End-of-life health care is one of only two things that genuinely threaten Uncle Sam’s solvency, according to our friend David Walker, the former U.S. comptroller general"
"We said as much in these pages when we reminded you that health care’s portion of the federal budget keeps doubling every 20 years or so. By now it eats up 25% of the budget."
Health Care Costs: Still the Pig in the Federal Python - Daily Reckoning
Professor Laurence Kotlikoff, an economist at Boston University, accounted for all the projected unfunded liabilities like Social Security, Medicare, Medicaid and interest payments. He puts the U.S. debt at $222 trillion.
__________________
 
Reply With Quote
  #444  
Old 09-17-2014, 04:11 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Levy Center

"One firm in particular, the Jerome Levy Forecasting Center, a New York–based economic consultancy, warned that the world economy might plunge into another recession in 2015 that will take down the U.S. economy with it. It is hard not to take this forecast seriously. Levy economists, who use the profits perspective forecasting model developed by Jerome Levy in 1908, have accurately predicted every major financial event in the past few decades, including the 2008 financial crisis"
Another US recession may be coming … sooner than you think | Al Jazeera America
__________________
 
Reply With Quote
  #445  
Old 09-18-2014, 02:53 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Margin calls

Investors are allowed to buy stocks on margin,,, a down payment.
Investopedia; "A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin. Margin calls occur when your account value depresses to a value calculated by the broker's particular formula."
"You would receive a margin call from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point. You would be forced either to deposit more money in the account or to sell off some of your assets. "
"Sell off some assets". If stocks are going down, nobody will buy until they hit bottom. What can you sell? You have to sell your best investments because nobody wants your weak investments.
When the sub-prime crash hit, lots of investors got margin calls. They had to sell their best investments to cover the calls. At that time, Japanese stocks were strong. American investors sold Japanese paper to cover margin calls. This sell off crashed the Japanese market.
Remember, you sell your best investments.
China is falling badly. They have 64 million empty housing units. The FED has pushed Japan and Europe to print with wild abandon. The dollar is rising because the FED has printed less than others. In a Chinese crash, the dollar investments will be the most liquid,,, easiest to sell.
China moved 300 million self-sufficient peasants to the city and put them to work. They ran out of work so,,,, they built more cities. Hundreds more.
This is mal-investment and always crashes.
China was hugely focused on productivity and ignored domestic demand. They figured that the West would supply the demand. That worked for a while UNTIL we lost our job (to the Chinese) and our demand came to an end.
At some point, Chinese investors will sell their most liquid investments to cover margin calls.
__________________
 
Reply With Quote
  #446  
Old 09-20-2014, 04:25 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Symbiosis and parasites

Every $ 1 dollar increase in taxes reduces GDP by $ 3. The exact amount has been long debated and does vary. But, why?
A pristine economy among honest traders is a symbiosis. When a dishonest person enters the picture, it is predation. The mutual gain of honest trade is reduced by the amount stolen by the predator. The predator must keep his extractions below a level that would induce the prey to stop producing any surplus. In the human ecology, the predator must act the part of a parasite rather than as a "eater" ( a lion on the prowl ).
A lion won't set up his den at the waterhole because he instinctively knows that he will soon die of starvation. A parasite, on the other hand, has no regard for ecology. All parasites follow their innate M.O. until the death of their prey.
The parasitic mindset recognizes no limitations. Collectivist parasitism in the form of communism attempts to inspire productivity by exhortation to produce when symbiosis has been destroyed.

Collectivist parasitism in the form of corporatism attempts to force productivity by micro-managing EVERY facet of an individual's life. Just the same, a symbiosis is lacking. Statist parasitism is more or less interchangeable with corporatist parasitism. The difference between communist parasitism and corporatist parasitism is that the corporatist parasites work hard to reduce the number of non-producers.

Until there is a return to symbiosis and honest returns to the actual producer, productivity will diminish. Top-down control of collectivist fascism will create control but, it won't create productivity. The State tries to induce the missing productivity by creating widespread insecurity. There is a terrorist behind every bush. Charlie Rangel is calling for a war tax and a draft.
We must all work very hard to defeat all of our enemies.
NONE of this can work.

We have to have personal profit. We have to have a way to store this wealth. We have to have a return to the honesty of a symbiosis. Profit or perish,,, no matter the level of control.
In a symbiosis, nobody loses. It is both honest and just. We compete all of our lives and it doesn't sit well when the parasite walks in and steals,,,, and then tells us that it is our moral/legal obligation.
__________________
 
Reply With Quote
  #447  
Old 09-20-2014, 04:45 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Gold, the only reliable regulator of the monetary system

Re: gold. I suspect that most people just don't see the larger picture. At one time, all wealth was expressed in tangibles. All labor was manual, animal or man,,, with a few windmills thrown in. Man worked to provide his necessities. He could not be coerced to provide extra unless he had some way to store value. Time degrades all things except for precious metals and stone. This worked for quite a while until the industrial revolution. The industrial revolution created so much wealth that it had to be stored for the future in the form of debt notes. As more States enter into hyper productivity, it is ever-more difficult to store wealth.
The bankers continually fought the emergence of any kind of tangible that could supplant their debt paper. This worked in the newer cultures but, not in the older cultures.
The West is like an old fruit tree that no longer bears fruit. We still consume the same amount of nutrients but, yield no fruits.

We only nourish the structure.

The old cultures are producing fruit because they nourish the blossoms that produce fruit. The West prunes the blossoms to divert nourishment to the trunk.

The West wallows in a sea of debt paper that can't reasonably be redeemed. The West specifically blocked the renaissance of gold that SHOULD have been the tangible embodiment of wealth. Gold is a store of wealth that CAN be reliably redeemed in the future. After a point, debt paper can NOT be redeemed in the future.

At some point, the debt bubble will pop. The greatest risk of all is that NO debt paper will be trusted in the future. The is the ULTIMATE risk because people will not produce extra if they don't have a reliable store of wealth. North Korea is a good example.
https://www.youtube.com/watch?v=WvtW9iLD6Mo
When the cascade default occurs, ALL of the connected strands of the financial web will be strained one at a time, NOT in unison. They will sequentially fail. Antal Fekete and Sr. Price both wrote about a collapse of international trade. After the Smoot-Hawley Act, international trade fell by a huge amount. That was back when the world trusted us.

The old culture will go back to their old ways and only accept gold from their frenemies.
J.P. Morgan said that ONLY character merits credit. Money will not do it.

Century after century, we prove that currency issuance has to have a control that is out of the hands of man. If ALL faith is lost in debt instruments, it will be a long time before the world recovers.
__________________
 
Reply With Quote
  #448  
Old 09-25-2014, 03:01 PM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Shmita

Jeffrey Berwick is a well know libertarian and investor. He has a site called "Dollar Vigilante". He is very observant and has done a lot of good writing. He has an article that points out a LOT of coincidences that are disturbing.
God Has Chosen An Exact Date for the Dollar Collapse - Harbingers and the Shmita
__________________
 
Reply With Quote
  #449  
Old 09-26-2014, 05:12 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
Jim Wilie, money not moving

Jim Willie has a newsletter. He makes quite a few predictions and he isn't afraid to be wrong. He is generally right. Those who only make "safe" predictions may have a better record for accuracy but, they predict stuff when it is fairly obvious.
"Money Supply is up 3.5-fold."
"Money Velocity is down almost 4-fold"
Nobody is buying or spending and the real economy is freezing up.
"The greater tragedy is that QE cannot be removed. Putting a halt to the QE monetary spigot means letting the financial markets collapse, bond yields to rise, stock indexes to fall, carry trade to go into reverse, and consumer lending to dry up. So the QE spigot continues in a slow death dispensing acid, rather than causing a sudden death."
The more money they print, the slower it circulates. http://67.19.64.18/news/2014/9-19gj/2.jpg

"As footnote, Russian President Vladimir Putin committed two deeds that infuriated the Western bank cabal supra-national leaders. Putin kicked out the Rothschild bankers from his country. Putin interrupted the USGovt heroin trade supply routes out of Afghanistan. Like Abraham Lincoln 150 years ago, the elite banker chambers wish to remove Putin and to suppress Russia, but the sprawling nation has joined at the hip with China. Thus Russia cannot be isolated any more than a bear can be bear hugged. "

"The Ukraine War is the USDollar Waterloo event. The Kiev Regime fascist leaders have begun to bug out, the IMF $3.2 billion loan funds now gone missing. " Geee, $ 3.2 billion gone missing.
I'm sure that the IMF will be happy to send a boatload more money.
Monetary Policy Killing the System
__________________
 
Reply With Quote
  #450  
Old 10-01-2014, 04:49 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,494
The Avalanche and the Failure of debt paper.

Centuries ago, all wealth was expressed in tangibles. A society or a strongman stacked up land, slaves, rock, timber, metal,,, whatever was in demand. Land was the most durable wealth but, it was not portable. When the barbarians invaded, you couldn't take it with you. Metals were extremely useful and gold was at the apex of valuable metals. Gold and a few precious stones were the accepted standard for concentrated wealth. Credit / debt existed but, it was used mostly for transactions rather than storage of wealth.

With the arrival of the industrial revolution, there was so much wealth that it became ever-more difficult to store wealth. As each State industrialized, it was ever-more difficult. The store of gold did not grow as fast as the tangible wealth.
To facilitate trade, gold receipts were substituted for physical gold. Governments held gold to back their sovereign currencies. Over many decades, bankers and GOV slowly reduced the amount of gold backing their debt notes.
Gresham's Law states that the strongest currency goes into hiding because people use it for a store of wealth. GOVs worldwide removed backing in concert for their currencies so that none COULD be used to store wealth. Bankers are unproductive parasites so, they need all the currency circulating so it can be diminished by taxes, interest and inflation.
Fiat currency is GOOD for you and me but, the central banks hold GOLD. The Bank of International Settlements settles ONLY in gold. When Bernanke was asked why the Federal Reserve holds gold, he replied "tradition" . Gold is called the "barbaric relic".
The West has done everything it could to erase gold from the consciousness of Westerners. Gold NEVER left the consciousness of the people of the East and they are forcing a return to gold as a store of wealth.

The West is blowing an enormous credit bubble to try to preserve it's standard of living even though, it has lost it's job to the East. All credit bubbles eventually pop. They end in a cascade of default because everything is so interlocked.
Jim Rickards calls this an "avalanche" rather than a cascade. Both terms work. He has just released new predictions that go farther than the books that he wrote some years ago.
Quotes;
The “first avalanche” actually happened in 1998, when a $100 billion hedge fund called Long Term Capital Management (LTCM) almost imploded the markets.
As a result, they were caught by surprise by the 2008 crisis, when $11 trillion in household wealth was wiped out in a matter of weeks.

This was “the second avalanche.”
The four biggest banks, for example, are 30% larger than they were five years ago. And the five largest banks now hold more than half of the total banking assets in the United States.

To make things worse, the size of derivatives, the same instrument Warren Buffett once called “weapons of mass destruction,” are now worth more than $700 trillion.

That’s $200 trillion MORE than the total value of derivatives in 2007, when they brought down the global financial system.

Today, the size of the derivatives trading is more than TEN times bigger than the entire world economy.
Remember, in 1998 the banks had to bail out a failed hedge fund.

In 2008, the Federal Reserve had to bail out the banks.

Rickards: "Rickards invested most of his fortune in the company he worked for — the Long Term Capital Management fund.

After all, this was a fund run by two geniuses who had won the Nobel Prize in economics. They had IQs of 165 and were considered at the time the finest financial minds in the world.

He thought his money would be in good hands.

But eventually LTCM became a web of financial contracts worth a total of $1.3 trillion.

And the mathematical models blew up, causing the first financial avalanche we mentioned earlier. "
And now, in the coming avalanche, this CIA insider says it’s the Federal Reserve that will need a bailout.

In fact, during a private conversation, a member of the Fed has already confessed to this CIA insider that the Fed is secretly broke.

This means the world will have to bail the entire U.S. financial system out.
Hmmm, I just don't see that happening. America has trashed the world pretty thoroughly.
Some relevant charts:
http://research.agorafinancial.com/r...4/Graph4_2.png
http://research.agorafinancial.com/r...4/Graph3_2.png
http://research.agorafinancial.com/r...4/Graph2_1.png
Jim Rickards is a collaborator and spokesman for BIG GOV and big banking. He claims that the dollar will collapse. He claims that the world will bail us out using the synthetic fiat currency Known as "Special Drawing Rights". He is an insider pushing the new fiat that is favored by the PTB and insiders. It ISN'T going to happen. After the fiat dollar blows all to hell, NOBODY is going to use or endorse a new fiat currency controlled by the same group of criminals.
They / we will go back to gold as we have every time in history.
The Euro is backed by a floating gold price. It is possible that the Euro will survive if gold is revalued high enough. It is doubtful because the socialist tendencies of Europeans will always bring them down.
A Short, Cogent History Of The Eurozone: Why Peripheral Country Debt Is Toast | David Stockman's Contra Corner
France alone, has a 2 trillion euro debt.

All experiments with unbacked fiat currencies end in a crash. The great danger at this moment in time is that all debt currencies have failed. What about debt-bonds? Will ALL debt paper fail when the avalanche hits. John Rubino talks about just this possibility. https://www.youtube.com/watch?v=WvtW9iLD6Mo
The operating plan at the moment is HOPE. http://www.zerohedge.com/news/2014-0...-minsky-moment
__________________
 
Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



Please consider supporting Energetic Forum with a voluntary monthly subscription.

Choose your voluntary subscription

For one-time donations, please use the below button.


All times are GMT. The time now is 01:08 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Optimisation provided by DragonByte SEO v1.4.0 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Shoutbox provided by vBShout v6.2.8 (Lite) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
2007-2015 Copyright - Energetic Forum - All Rights Reserved

Bedini RPX Sideband Generator

Tesla Chargers