Friday, Nov. 24, 2017

Economics

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I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.

The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.’

Thomas Jefferson, (Attributed)
3rd president of US (1743 – 1826)

So where has all the money gone ? In a nutshell the ‘fractional reserve banking’ system ensured that most of it NEVER existed in the first place, and  what does exist is, each day, in the hands of less and less people namely the maney changers. I attach a fascinating documentary called the money masters.  Made in the mid 90′s it gives the full history of money over the last 300 years. Its long, but like any good book,  you just can not put it down. Until you understand the facts laid out in this documentary  you will never be able to fully understand the root cause that fuels the effects we experience all around us. By the end you will be very clear as to the answers to the questions stated below.

US presidents such as Jefferson, Jackson, Lincoln (the true greats) all fought to ensure that the US Government produced debt free money. As a consequence of an independent press the public in the 1800´s  understood, better than we do today,  the reasons  behind why bankers must not control the creation of money. Elections were won on this principal. In 1913 Woodrow Wilson was the US president who was sufficiently influence through subversion to give the bankers their way. Since then it has been all downhill, whereas to today the all mighty  Federal Reserve is not answerable to any governmental body. When asked about the FEDS relationship with US Presidents Greenspan (former FED Chairman) stated that  as longs as political bodies do not  try to  interfere with what the FED does the relationship question is not Important. If you find this hard to believe  hear it from the man himself!

If you don’t have three and a half hours right now to watch Money Masters I also attach the first 10 minute episode of 22 which can be followed on youtube.  (Versión en español)

Ever asked yourself :-

How is money created in the first place? • What and who controls the amount printed? • Is it backed up with anything tangible? • What creates inflation? Is the continual growth of the world economy sustainable?  • What are our taxes really used for? • If so much money has been lost in the current crisis where has it all gone?  • Is there a paper money mountain somewhere in the sky that we don’t know about?

The US spend 3,950,000,000 dollars a day more than they generate. If they continue won’t they be bankrupt? The first four questions have played on my mind for years. Having never studied economics I guessed there would be some complicated equation to explain all this. I found that there is not! I attach  the first 10 minute episode of Money Masters that can be followed on youtube. The book is also available on line.  (Versión en español)

INSIDE JOB The film that cost $200,000,000,000,000 to make! In Money Masters we have seen the history, now for the present day!  ‘Inside Job’ is the best documentary made about the economic crash of 2008 .  It  is  the critically acclaimed movie by Academy Award nominated filmmaker, Charles Ferguson, and is the definitive film about the economic crisis of 2008 and the role of Wall Street in modern society. If you are looking for a ONE STOP educational insight into the who, what, where, how and when  of  the crash then watch this documentory . For a quick insight see the trailer by clicking here. You will be left as speechless as some of the top bankers and politicians that are interviewed in the film.

 

OK we know the U.S. debt is over $14 trillion, and is the sum of all outstanding debt owed by the Federal Government and it was created by spending more than they have. The U.S. debt is the largest in the world. How did it get so large? Purchasers of Treasury bills ( money lent to the government) still expect the U.S. economy to recover enough to pay them back. Foreign investors like China and Japan have lent the US trillions and do so as to ensure the US economy is able to continue buying their goods. It’s like funding a life support machine so that the injured person (US economy) can stay alive to buy the medicines the lenders (China Japan etc.) produce. The day the US stop, or cannot, borrow money they will default on this debt and the US economy could/would collapse along with that of China, Japan and Co. Exports to the US would stop over night.

There is an increasing possibility that this day will arrive sooner rather than later. In the meantime China is working hard on exploiting other markets such as Asia and Africa to cushion the effect of a possible US meltdown. Even before the economic crisis, the U.S. debt grew 50% between 2000-2007, ballooning from $6-$9 trillion. The $ 700,000 billion bailout of the financial system helped the debt grow to $10.5 trillion by December 2008. Thats right, the problem was already very mature before the financial sector melt down. The Bush administration decreased taxes and increased expenditure. 1.283,000,000,000 US$ (1.284 trillion) (page 2 of report) alone has been spent on the so called ‘War on Terror’ up to March 2011. In the short term the voters / tax payers benefited. Hey we all like paying lower taxes and receiving better services but there are no ‘free lunches in life’. We know that this is simply not sustainable.

As the loans get bigger the repayment risk increases and the lenders want more interest. This added interest payment expense usually forces a government to keep debt within reasonable limits. Not this time though, and where does the money come from to pay the interest? To compound the problem the U.S., has loaned themselves payroll taxes charged to baby boomers. This money should have been invested to be available when the Boomers retire. In reality, the Fund was “loaned” to the government to finance increased deficit spending. This interest-free loan helped keep Treasury Bond interest rates low, allowing more debt financing. However, it’s not really a loan, since it can only be repaid by increasing taxes when the Boomers do retire.

So all in all there’s a big problem on the horizon and no clear answers. So coming back to my initial question, who controls how much money there is in the first place. Below is a short layman’s explanation of US money supply from the Zeitgeist movie.

The strangle hold that the FED has on the world economy is becoming more and more apparent. Most people believe the Federal Reserve is owned by the state. WRONG. It is owned by the biggest banking empires in the world. OK you might say, who’s to say this information is correct? How about hearing from a US Congressman direct. RON PAUL is the congressman for TEXAS who is running for president in 2012. He wrote a fantastic book a few years ago called ‘End the Fed’ where he explained in detail what has happened. Here he is being interviewed.

We have seen from the movies in the Wake up section how the Federal Reserve was drafted up by the influential banking families on Jekyll Island (click for resume) in 1910 and then pushed through congress just before Christmas 1913 by President Woodrow Wilson in return for his 1912 campaign funding by the same influential families.

Charles A Lindberg Minnesota congressman from 1907 to 1917 said of the reserve:-

Charles_August_LindberghThe financial system [...] has been turned over to the Federal Reserve Board. That board administers the finance system by authority of [...] a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money.”

For further reading on this I recommend again Ron Paul’s ‘End the Fed‘.

Income tax is illegal in the US. Believe it of not there is no law in america to pay income tax! . That sounds incredible doesn’t it, but its true! Up to 1913 there was no income tax. When the Federal Reserve bill was passed income tax was created without additional laws as a means to pay the interest on the money being printed (from fresh air) by this new institution. By the 80´s this monetary system along with governmental  policies started ringing up massive debts. Ronald Reagan  subsequently created The Grace commission. The Grace commission (copy here) was set up to ‘identify and suggest remedies for waste and abuse in the Federal Government’. It stated:-

‘If fundamental changes are not made in Federal spending, as compared with the fiscal 1983 deficit of $195 billion, a deficit of over ten times that amount, $2 trillion, is projected for the year 2000, only 17 years from now. In that year, the Federal debt would be $13.0 trillion ($160,000 per current taxpayer) and the interest alone on the debt would be $1.5 trillion per year ($18,500 per year per current taxpayer).’

and went on to say about income tax:-

’100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.’

Since Reagan succesesive administrations have continued a policy of lower taxes and higher spending leading to an expotencially expanding debt that can NEVER be paid off without taking VERY DRASTIC action. In effect the American people are made to borrow ever increasing amounts of money created from fresh air by the Federal Reserve, who in turn lend trillions to a government  spending more on wars. health care etc  than they generate . Every dollar having a price tag called  INTEREST. As a result  Joe Public lives in servitude, paying back personal loans. Paying income tax so the government can pay back the INTEREST on the 14.5 Trillion deficit.

The Grace Commission report was spot on. As oppossed to warning of future problems  it became the template for the way forward. I know that this information really stretches your beliefs therefore as ever I recommend you look into this further. I attach below the film ‘Freedom to Fascism’ (trailer here) made by award winning director Aaron Russo. It gives a further insight as to how this massive ‘scheme’ is being played out. (Version in 11 episodes)

Stock Markets turning you into cattle.

Another flawed part of the economic system is the modern day trading of company shares. Most trading today does not involve the purchasing of share certificates. Trading decisions aren’t   based on company results, balance sheets, ect.  they are  made by multimillion dollar computers performing algorithmic trading including: High Frequency Trading. In laymans terms it is BETTING on shares either increasing or decreasing in value over a period of micro seconds to several days, making millions of altermated trades a day using very complex statistical information. The faster the computer the more money it makes.

70% of shares on the New York Stock exchange are made by computer programs making the decisons. We have an out of control Frankenstein situation. Their importance reaches the public domain when massive financial losses are triggered due to ‘malfunction’ as happened at the New York Stock Exchange in May 2010.

”One of the basic principals  for success, whether personally, in business or governmental is the ability to add sustained value to what every you are doing.”

The Germans believe in adding value by producing things that benefit peoples lives through design,  usefulness, quality, value for money etc. , made possible, amoungst other things due to their work ethic. The UK’s largest industry in the finance industry which produces very little value moving money around from one place to another adding no real VALUE  and is based on a flawed boom and bust principal whereas, the benefits are privatised and the losses nationalised, i.e. the few benefit in both periods whilst the masses pay the cost ‘in the bust’. The politicians have used the billions in taxes generated from these flawed industries to maintain power, by keeping other taxes low whilst pumping money into unsustainable social improvements subsequently retiring to fat cat pensions and multi million pound lecture tours when the cycle is over and they are kicked out of power.

Hedge funds are dedicated  to betting on which way the market is going.  They bet on a market loosing value as well as increasing in value. They state they  are following markets and  don’t dictate them. This is  flawed BS, (belief system!!) Modern day trading is, as mentioned, based on trends calculated on computers.  These same computers are creating tomorrows trends that their ‘next generation’ will be monitoring and making money from.

‘The only thing we have to fear is fear itself ‘ FDR

Hedge funds add the SPICE as their decisions, using trends, can determine human decisions which can also be forcasted (yet another  trend). The bigger the projected trend the more people  heed them through fear (snow ball effect). As we have seen from the Power of Attraction if enough people think something is going to happen THEY CAN make it happen.  Hedge funds  can create the required tipping points. As we have seen from the documentories in the Wake up ZONE a few choosen words / actions  at the right moment can cause bank runs.

As mentioned these computers sometimes publically flex their flawed muscles wiping millions off peoples share assets in minutes. A case in hand was the NYSE glitch of May 2010 So poor old Joe Blogs and his company share certificates  is just cattle fodder ready for consumption by the high tech bulls. This next interview should  not be missed. Here is a trader  that says it as it is on the BBC. His principals maybe stomach churning, and he is probably on an ego centered publicity stunt, but what he has to say is a 3 minute resume of what is wrong.

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