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How Finance Quietly Took The World Hostage
While we have beaten the dead horse topic of collapsing global of CapEx (per Citi, net capex is now unchanged since 2000), we now have a clearer understanding why there is no global growth, why trade is plunging, and why world commerce is rapidly grinding to a halt. The answer lies in the following chart which shows the relative proportion of what the world has been investing in for the past two decades.
It shows that while investment in most traditional categories has fallen off a cliff, the money spent for business activities, i.e. services, has soared at the expense of such conventional growth components as trade, manufacturing, petrochemicals, and food and beverage.
But the punchline, and what is by far the scariest, is that rising from 19% to a record 30%, and by far the biggest use of funds, is finance, the one industry that doesn't actually lead to growth but merely finds ways to mask the lack of growth with pro-forma adjustments and stacks leverage upon leverage on ever declining underlying equity and cash flows, until the entire system crashes as it did in 2001, 2008 and, well, soon.
It also means that forget Too Big To Fail banks: the entire financial industry has now become the monster behemoth whose crash will wipe out the world, and hence why it can never be allowed to crash. One could say that in the past two decades, finance itself succeeded in taking the world hostage and can demand any ransom... or the world gets it. A ransom, which the global central banks are all too happy to pay to let "finance" get its way, in the biggest Mutual Assured Destruction scenario in world history.
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How To Win
You win when you uphold your principles in the face of fear and temptation.
Principles are universal. They are the Soul of Humanity.
Anyone can become the person he wants to be.
Thanks for the heads-up on how to die, asshole.
Banks own governments. This explains everything.
DJ Happy Ending,
Your post explains nothing! This does:
"All the perplexities, confusion and distresses in America arise not from defects in the constitution…, as much from downright ignorance of the nature of coin, credit, and circulation" — John Adams, August 25, 1787.
Good to see this meme coming around again. All this stock market, TBTF banks, and miscellaneous paper pushing does nothing but destroy. "Financializing" anything eventually destroys it.
This is all likely in support of ICLEI and Agenda 21, which the Tylers have magically ignored for the past 5+ years.
Due to my industrial created, chemical filled diet, I don't have the attention span required to sort through all those words I found on the internet that related to this topic. A summary, or a video with a cat wearing things (like a cute tuxedo), that helps explain why I should worry would be greatly appreciated, and immediately forgotten the next time I turn on the TV.
Thanks.
I think there are two separate forces of darkness at work: 1) the more statist version centered around institutions like the UN and the EU and 2) the more economic one centred around the banking mafia. Ultimately it's just a personality difference between two sets of sociopaths one who want power first, money second and the other who want money first, power second but that difference creates the two strands. Personally I'd say Agenda 21 is connected to the first strand rather than the banking mafia strand.
Love your comments EI.
As soon as finance enters the equation everything becomes more expensive and it becomes more expensive exponentially irregardless of actual costs.
As an example lets take an average house. With all cost covered including labor and pay for everyone involved the house should list for $75,000. People would save up for many years and buy it outright or make a deal with the builder to pay a large chunk and the rest over time.
Enter finance. Now because price doesn’t matter as anyone with a pulse can borrow, the price is $150,000. Add onto that interest, fees, and mandatory insurance, and by the time the house is paid off it has cost between $300,000. and $400,000……..for a $75,000 house.
Extrapolate this out to ….well just about everything humanity is involved in, consumption, government, education…everything. The average person, over a lifetime, gives at least half and more likely two thirds of what they make to finance. Some will say that there is no other way to buy big ticket items but that is propaganda BS!
Now even though the Merry-go-Round has virtually stopped finance still demands that that two thirds still gets paid volentarily or otherwise.
What makes this even more insidious is that those who manipulated us into this situation have linked nearly every aspect of our economy to this scam so that to end it means the collapse of life as we know it. And I don’t mean back to gardening and made by hand localization BS. I mean dirty, nasty, ugly, collapse.
Eeyores Enigma,
Excellent post.
Every Hedger should read it... Especially the ones that believe gold will save them.
Humanity, as we are accustomed too, is doom for a catastrophic failure.
The exponential aspect of this catastrophic failure will have tremendous moment beginning next decade; and I believe with every fiber of my being that our collapse will be a consequence of multiple failures.
“You're just not going to find intelligent life elsewhere, and you probably won't find it (intelligence) here (on earth) for very long either because it's just a lethal mutation” — Ernst Mayr
EE, If you reduce the term Finance to its irreducible primaries you shall always find that financing is driven by either money or counterfeit where your first example is the result of money and your second is the result of counterfeit. Human progress requires the proliferation of productive work and not theft. Therefore, it is finance facilitated by the proliferation of counterfeit that is evil and it is finance facilitated by the proliferation of money that is good.
The concept of Finance is not the origin of the problem but instead the origin of the problem is determined by the principle upon which it is built.
Ohh boy!
OC Sure
Your post (you wrote evil) tell us that:
a) You are not a good Christian or Christian at all, because Jesus was against usury (finance)
b) You are a propagandist, because you’re part of the financial system
c) Or, you are ignorant of how this ‘Sausage’ (financialization and its compounds) is put together
Let me give you a couple examples:
Margrit Kennedy on interest rates [serfdom]
If Joseph the father of Jesus would have invested one penny at his birth at 5% interest, and Jesus would have returned to the same bank in 1990 - at the time of the German unification - he would have been able to buy, with the money accrued in the meantime, 134 billion balls of gold of the weight of the earth, based on the official price of gold at this time.
This shows mathematically that the continual payment of interest and compound interest over a longer period of time is practically impossible. And explains why we have economic and social breakdowns.
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCAQFjAA&url=http%3A%2F%2Fwww.converge.org.nz%2Fevcnz%2Fresources%2Fmoney.pdf&ei=YEUlVJKWN9CUsQS8qoG4Cw&usg=AFQjCNE5OvSWx2rSJhlyngc1nFrJFgV_1w&sig2=JFevCL8UtTx3uDHNC-ScJg&bvm=bv.76247554,d.cWc
Anthony Migchels
At 4% the National Debt is payed in interest every 25 years, without even denting the principal itself.
http://realcurrencies.wordpress.com/2012/03/01/debt-repudiation-or-an-interest-strike/#comment-2123
What decade are you stuck in? The 1950's? You can't build any kind of house nowadays for 75k. I just finished a 1350 sq.ft. 2 bdrm 2 1/2 bath and spent $120,000 with no labor besides my own. I subbed out the electrical, drywall, and insulation.
It's best not to die for your cause, but to make the other asshole die for his.
OT,,,
No stock of silver.......How can this be????? You guess..
http://www.gainesvillecoins.com/category/824/100-oz-silver-bars.aspx
Silver Bars over 10 oz are a terrible way to buy silver unless it's in an IRA. Reportable on the sale side with any larger dealer. Gov has cracked down on dealers and we are audited like crazy. It won't be worth it for a dealer not to report your sale. The tax hungry government won't let up, they are broke! Buy coins, same spread, you pay a few dollars more cause coins cost more to produce. Giving up 25% to whatever tax rate is in future isn't worth the money you save buying bars. BE SMART, when has being cheap ever worked out? Junk silver bags are reportable too. Same rule on gold bars, Kugarands, and maple leafs.
The bankster tapeworm is killing the host
We have only what we produce to divide up. Like government, finance adds no tangible product, while adding more persons to divide up among.
OT- I was in the grocery store today buying some veggies and chicken. A guy who I've never seen before was rummaging through the Manager's Special section, which is old meat. He turned to me and said, "I can't believe how expensive meat has gotten. Even in the last week it's gone way up. Jesus Christ!"
He left and about a minute later a woman remarked to her husband, "Look at the price of this. When did this cost that much? I don't know if we can afford it."
Skimmerz do not produce, they leach.
Bush=Clinton=Obama
GOP=DEM=INC
Nothing changes until K Street burns.
it's only clownbux
A great 'legal' lecture.......
http://www.nakedcapitalism.com/2014/10/bill-black-discusses-too-big-to-jail-on-bill-moyers.html
The banksters via their "printed" theft in conjunction with the ownership-swappers, Wall St., and backed by their partners in crime, the violence of government, took the world hostage.
Only guns and guillotines can take it back.
An American, not US subject.
"Bread, circuses, sleep and bleat."
What also seems to be key is the doubling on mining, oil, and gas...for all those peak oil deniers...
http://olduvai.ca
Sometimes pre-visions get unloaded on the interweb pipelines before the rest of society has time to grasp for air. Repeat post. Enjoy and share. You'll now understand.
A Vaccine Against Magic!http://m.youtube.com/watch?v=hbiE2zKogV8
Pre-cognitions actually. In other words you have to have awareness of the vision too. (Where the native Americans fell flat on their face I'm afraid.)
Seriously though a huge energy boom inside the USA takes trillions in dollars out of circulation thus making invest in "debt as a perputal motion machine" hazardous indeed.
Why have any debt (besides cash...which is also debt...just very short term) if I have Infinity Energy?
Simply put through the use of very small but successive hydro power plants the USA will be swimming enough base load to power using base load alone the entire needs of the North American continent.
Indeed the collapse of coal prices in North America is just the beginning. Throw super capacitors on buses and you'll be talking 100 miles per gallon for diesel.
Long wood pellets..
At first I was like, wtf? And then I was all, WTF? But at the end I was all about the, DUDE!
But what about the Fukushimaed salmon?
That was nice. Thank you.
Etymology reveals the extent of our ignorance. The truth is laughing right in our faces!
Vaccine etymology: cowpox. Feeling bullish?
As long as assets are allocated according to some budgetary system , Finance will rule the roost . See
http://andreswhy.blogspot.com/2011/06/financial.html
Alternative asset allocation methods : see
http://andreswhy.blogspot.com/2009/10/fuehrer-prinzip.html
http://andreswhy.blogspot.com/2011/10/ostrum-game.html
It's what happens when academics run the world...
more money in derivatives than there is in the GNP thus the tail wags the dog.
More like "gas piping Mary."
"...And so he plays his part. The sixth age shifts
Into the lean and slippered pantaloon,
With spectacles on nose and pouch on side,
His youthful hose, well saved, a world too wide
For his shrunk shank, and his big manly voice,
Turning again toward childish treble, pipes
And whistles in his sound. Last scene of all,
That ends this strange eventful history,
Is second childishness and mere oblivion,
Sans teeth, sans eyes, sans taste, sans everything."
Not only too bit to fail banks but we have a behemoth health insurance company, who of course is traded on the exchanges as well. They have been hiding in plain site for years acquiring health related companies, and of course they own a custodian bank too that uses HSA savings account revenue to make loans and that would be United. Hillary brought them in and they have had an open door since. A former retired CMS employee has filled my ears on all of this.
Health insurance and doctors, they tell the MDs it's Moneyball.
http://ducknetweb.blogspot.com/2014/09/united-healthcare-buys-another-co...
CMS has relied on them for models for years and now those models are failing. Not a bad gig if you can get it to use quant style risk fiddlers in medical billing to soak CMS on the other side outside of helping CMS to gouge Medicare for an extra $70 billion over 5 years with Medicare Advantage. It took CMS 5 years to find it so they ran the risk fiddler algorithm to get higher paid medical bills and here CMS spends all their time going after doctors and hospitals. This means now that this has been found, if you average Medicare Advantage insurers who billl Medicare are on line to receive about $14 billion less this year and that does not even count what Medicare might do to recoup if they can.
It's touchy as then the insurers just cut benefits to the seniors they cover..sounds just like a Wall Street maneuver to me. Also $14 billion sounds like a total of what insurers make in a year with several of the big boys in the hopper, so now what do they tell share holders? That might be a good question but at any rate it is impacting Medicare Advantage policies and coverage as United Healthcare might be leading the pack here as 1/3 of their revenue comes from IT and software solutions in healthcare, 2/3 from the insurance business. They did it before when Cuomo found them short paying doctors/patients for 15 years on out of network claims, a risk fiddler again of sorts. This has not received a lot coverage in the regular news by the way. The #2 man at CMS right now is Andy Slavitt, who was the CEO of the United Healthcare entity called Ingenix (now name changed to Optum) who did the risk fiddler for the out of network billing. The AMA filed this lawsuit and had the same results at what happens to banks, pay money and nobody has to admit any wrong doing.
http://ducknetweb.blogspot.com/2014/08/cms-discovers-that-insurers-offer...
It's all "code hosing" with proprietary formulas that we can't see or verify for accuracy and we had old Holder who was afraid of math and thus so he never had the confidence to go after band or healthcare fraud. The only thing he and Sebelius did a couple years ago was to send out a letter to hospitals and dcotors and said "you better not be cheating as we are watching you" which hacked off everyone as most of course or not cheating, but with electronic medical records hospitals were doing better on their billing and thus the DOJ thought they were cheating when in reality they just became more efficient and were picking up money that they missed before, nothing illegal.
Next person that heads the DOJ better be a hybrid, half lawyer and half tech, hard to find but there if you look hard enough.
http://ducknetweb.blogspot.com/2014/09/eric-holder-resigns-as-head-of.html
So anyway on the healthcare side you have one big health insurer taking the business hostage as well. HHS does not write health care policy anyore but rather it comes from the Center for American Progession where old Zeke Emanuel sits (the guy who thinks we should all kick off at 75) and is a walking talking United Healthcare commercial and he wrote a lot of the Affordable Care Act. There's other United cronies over there too, and Lois Quam, who Hillary brought over from United years ago was the door opener for all of this. She escaped prosecution as did their curren CEO when the DOJ did do something and filed their lawsuit for I believe it's still the largest derivatives fine on record as all were backdating their stocks.
Without inflation...indeed with deflation actually...the financial folks are plucked. They have trillions in debt which can't be rolled over...far more than even most Governments.
Only the fools - the majority. The real PTB are all set.
I use another term:
FINANCIAL SUICIDE BELT
That is what insolvent financial oligarchs are doing
I'm so glad I have my 55-gallon drum full of aluminum pull-tabs stored safely outside the banking system! And I'm sooo smugly proud and grateful I got my aluminum pull-tabs waaaay back when, in those thrilling days of yesteryear, when they were dirt-cheap. Ha-ha! Now I am all set for when the petrodollar and global banking system collapses.
My uncle saves, and makes everyone he knows save, those things. Something about getting 50 cents each for some charity.
"the entire financial industry has now become the monster behemoth whose crash will wipe out the world, and hence why it can never be allowed to crash."
I disagree with this statement because finance isn't necessary to produce food and products. It is used to do these things but you can create food and products without finance. The banksta overlords want everyone to believe that financial institutions are the key to civilization but civilization spent thousands of years without finance.
Actually finance is necessary to produce, and is an important part of the production cycle.
Try constructing a fruit or vegetable packing house without it.
But the charts probably point to finance that is directed at consumption.
You don't need the "finance industry" to gather capital for your idea. You can gather capital yourself. Also, 30%? Really! If, in exchange for gathering capital for your idea, the "finance industry" wants a 30% cut, then go elsewhere. You can do better.
The real economy would be a lot healthier if the parasitic elements of the financial sector could be removed safely (not all of it is parasitic) - but like the face hugger in Alien how do you remove it safely? In the end the banking mafia will kill the host anyway so the sooner it is removed the less damage will be done in total but you can see why there's hesitation.
That's FRAUD. That's what Jamie Dimon and Loyd Blankfein did. Somebody call the police.
Finance is not the problem. There can be good finance as facilitated by money and there can be bad finance as facilitated by counterfeit.
Therefore, the cause of the world's economic ills is the proliferation of counterfeit and not finance.
Finance has not taken the world hostage. The counterfeiters of the world have taken finance hostage.
This is easy to understand when one clearly identifies the difference between money and counterfeit, the difference between productive work and theft, as has been undeniably and irrefutably explained here: http://ocsure.blogspot.com/
From the wisdom of Aristotle's first principle of money in that "that which causes derivative truths to be true is most true" then all of the lies of modern economists are exposed in the Blaze of Day.
usury for consumption is inherently destructive through its effect on demand over time via its effect on disposable income over time. unrestricted usury makes the banking mafia rich but it also eventually destroys the economy.
(this doesn't necessarily mean it is always bad. for example usury for mortgages *if* it generates lots of saving for the10% deposit and *if* those savings go into productive investment then the positive benefit of the investment *might* outweigh the negative effect of the usury - so it depends - but in itself usury for consumption always (obviously) has a negative effect on demand/disposable income over time.)
Very instructive histories are rarely shown, which effectively fools the people:
http://patrick.net/forum/?p=1223928
How? The financial sector has bought the following: journalism; higher education; holders of elective office.
The parasitic Financial Sector and Government spending account for how much of the economy? Big, but I lost track. Since the 70% consumer economy is tapped out, where do we go from here? Not a happy ending methinks.
Finance in large part has become stealing. And there’s nothing worse for a country than having its ideas and its production stolen.
Finance does not make a nation wealthy. It was human capital based on individualism, liberty and property rights that built America.
George Gilder wrote that “the most prosperous countries—from Phoenicia to Venice, from England to Japan, from Hong Kong to Singapore—have been domains rich not in ‘natural resources’ but in human freedom and rights to property.”
Wealth, then, is many things but from the concept of history wealth has not been money; to George Gilder and men like Adam Smith and J.B. Say, wealth is basically a product of the human spirit and not of natural resources; it is “the result of ideas, imagination, innovation, and individual creativity, and is therefore, relatively speaking, unlimited, susceptible to great growth and development.”
Wealth, in short, is human capital.
Of the four kinds of capital – productive capital, static capital, transcendental capital and human capital, Charles Dykes reaffirms in “The Ultimate Source of Wealth” that it is the latter that matters:
“Thomas Sowell argues that human capital is ultimately decisive for the economic performance of a nation or people. Throughout history men have seen the destruction of their physical wealth by war, persecution or natural catastrophe, but armed with substantial human capital they not only have survived but regained their former prosperity. It was human capital, not natural resources or luck, which enabled Germany and Japan to emerge from the rubble of World War II to become the economic powers they are today….
“’Visible physical capital—factories, power dams, oil refineries—is always in a process of deterioration,’ writes Sowell, ‘whether at a slower or a faster rate. Financial assets likewise are constantly being consumed in order to live. Wealth in both forms will have to be replaced, even in the normal course of events. What war or expropriation does is to speed up this process of wealth’s exhaustion and its need for replenishing. But the real source of wealth in both normal and abnormal times is the ability to produce—human capital—not the inventory of goods, equipment, or paper assets in existence at a given time.’ …
"Economic achievement and progress, thus, depends largely on human aptitudes and attitudes, and upon the political, social and economic institutions and arrangements which derive therefrom. Alexis de Tocqueville, in his book Journeys to England and Ireland (1833) sums up in a powerful statement the transcendent importance of human capital for the life of nations and individuals. He writes, ‘Looking at the turn given to the human spirit in England by political life; seeing the Englishman, certain of the support of his laws, relying on himself and unaware of any obstacle except the limit of his own powers, acting without constraint; seeing him, inspired by the sense that he can do anything, look restlessly at what now is, always in search of the best; seeing him like that, I am in no hurry to inquire whether nature has scooped out ports for him, and given him coal and iron. The reason for his commercial prosperity is not there at all: it is in himself.’”
http://www.fee.org/the_freeman/detail/the-ultimate-source-of-wealth
The solution is easy, foresake growth for debt. Take no debt and put up with less growth. Imagine all the freedom that comes with that. Seriously....
And, abandon 'maximizing shareholder value'? NEVER!!! \s
ironically you'd get more growth (over time) with less debt. witht he banking mafia you get 3x for a while followed by x for longer (if not negative x). without the banking mafia you'd get a steady 2x.
The economic recovery that the media and talking heads have been bantering around is a manipulated myth. A manipulated stock market distorted by recent economic policy hides and mask the real truth, in many ways it is ground zero in the war to convince us all is well.
The American people and Main Street will tell you they are far from convinced that it is smooth sailing ahead. Huge weakness in the economy has been shown by numbers that barely get by even after record amounts of stimulus. Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella.
Recent changes in how the GDP is figured , which boosted growth thus reducing the debt to growth ratio, and attempts to spin poor numbers regarding employment have been met with skepticism. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/10/myth-of-economic-recovery.html
This cheap umbrella, AT, needs to be discarded and it can't be argued that corruption is necessary for our progress.
The FRB-NY is operated by some of the largest counterfeiters in the world. The answer, the solution to ending the economic and political chaos that comes from the currency destruction that has led to America’s financial tyranny, is simple. Americans must restore sound money and limited government. They can do this by ending the Fed.
Kirk MacKenzie writes in Money: Defending Your Prosperity that “many who control the Fed are foreign banks, and virtually all are international operations. By some estimates,” he says, “as much as 40% or more of its shares are owned by foreign interests – in London, Paris, Frankfurt, etc. - including the Rothschilds through direct or indirect means.”
As one instance of how these private bankers make out on foreign policy, several hundred million dollars of duplicate Liberty Bonds were printed and redeemed to finance World War I.
Writes MacKenzie , “Someone made a killing. Eugene Meyer, Jr., who oversaw the Liberty Bond program, was wealthy enough after WWI to buy the Washington Post. His daughter, Katharine Meyer Graham, would inherit control and use the paper to oust President Richard Nixon from office.”
Meyer served as Chairman of the Federal Reserve from 1930 to 1933.
It is worth repeating how the international bankers used the financial crisis of 2008 to expand the power of the Fed and to enrich themselves and their friends at the expense of the nation. MacKenzie explains how The Chosen Got The Deal, The People Got The Tab:
“As a result of the 2008 Bank Panic, the Federal Reserve greatly expanded its already considerable powers. Here is a rundown:
1 NEW Term Auction Facility (TAF) allows member banks to anonymously convert problem (junk) securities into money at low interest rates. Thus freed of their losses, the member banks can use the new money to make new loans.
(The Fed is using the TAF as a trial of this type of monetary tool. Depending on its success and usefulness, the Fed may begin to use it as part of a more permanent program. The final Term Auction Facility auction was conducted on March 8, 2010 – Wikipedia)
2 NEW The Term Securities Lending Facility (TSLF) allows primary dealers to dump problem residential mortgage-backed loans in exchange for Treasury securities.
(By the end of the program it loaned out U.S. Treasury securities worth $2.3 trillion to just eighteen Wall Street banks.[2] In 2008, as liquidity in the global markets came to a halt, the FED took action to allow the TSLF to expand the types of acceptable collateral: student loans, car loans, home equity loans and credit card debt, as long as it was highly rated.[3] Ironically, many of the establishment rating firms were themselves shown to be of little worth in the preceding few years, and the ratings system was in the state of being reworked. The collateral for the Term Securities Lending Facility (TSLF) also has been expanded; eligible collateral will now include all investment-grade debt securities. Previously, only Treasury securities, agency securities, and AAA-rated mortgage-backed and asset-backed securities could be pledged.- Wikipedia)
3 NEW The Primary Dealer Credit Facility (PDCF) allows primary dealers a further competitive advantage by converting other, non-mortgage problem securities into new money at low interest rates.
(The creation of the Primary Dealer Credit Facility constitutes the first time in the history of the Federal Reserve that the Fed has lent directly to investment banks, and it reflects the severity of the financial crisis perceived by Federal Reserve Chairman Ben Bernanke.[… During the first three days the facility was open, an average of $13.3 billion was borrowed daily with $28.8 billion in loans outstanding.[5][6] Lending activity peaked in the first week of October 2008, averaging around $150 billion daily. The facility closed on February 1, 2010…The actions of the Federal Reserve, including the creation of the Primary Dealer Credit Facility, have expanded its balance sheet from $800 billion, consisting mainly of safe treasury bills, to over $2 trillion, consisting largely of riskier debt and mortgage-backed securities.—Wikpedia)
4 NEW The Asset Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) allows selected financial institutions a competitive advantage by obtaining low interest rate loans directly from the Fed. The Fed decides who and thus far has refused to disclose who the recipients were.
(The facility was closed on February 1, 2010.)
5 NEW The Commercial Paper Funding Facility (CPFF) allows selected non-financial corporations a competitive advantage by borrowing low interest loans directly from the Fed. The Fed decides who.
(All purchases of the Commercial Papers by the SPV was done through the New York Fed’s primary dealers. This program lent out a total $738 billion before it was closed. 45 out 81 of the companies participating in this program were foreign firms…The final CP purchased matured on April 26, 2010.-- Wikipedia)
6 NEW The Money Market Investor Funding Facility (MMIFF) allows selected money market mutual funds a competitive advantage by borrowing low interest funds from the Federal Reserve Bank of New York. The FRB-NY decides who.
(The MMIFF was never used.)
7 NEW On top of all these new power, Chairman Ben Bernanke sought expanded powers to directly control the banking system.
MacKenzie continues:
“A remarkable new feature of these expanded powers is the ability of the Fed to selectively give differential competitive advantage to specific companies of its choosing. This violates any standard for fair and equitable treatment.
“The People pick up the junk securities and pay the tab. Their incomes are reduced, and a portion of their savings are taken by means of an inflated money supply that benefits the Chosen.”
It is imperative that Americans end their debt bondage to the bankers by dismantling the Fed with its private ownership and control of the nation’s money supply by replacing the Federal Reserve Act with a monetary system that will restore prosperity to the People that create it, as envisioned by our Founders in the U.S. Constitution.
AT, How does "deficit spending" prop up an economy?
Isn't it precisely this mechanism that impedes productive growth and beats it down instead of propping it up?
Isn't GDP measured by calculating how much spending is happening?
Spending of what? Money or Counterfeit?
If it is the proliferation of productive work as necesarilly represented by money, then the economy will genuinely be augmented.
If it is the proliferation of theft as necessarily represented by counterfeit, then the economy will diminish.
So then to determine if the economy is propped up or beaten down by this mechanism, the truth is illuminated by answering: Is "deficit spending" financed by money or counterfeit?
Bruce, I just can't agree with this.
I think you said it better here: http://www.zerohedge.com/news/2014-10-03/grid-indicators-suggest-us-econ...
and here: http://www.zerohedge.com/news/2014-10-03/september-job-addition-248k-bea...
"Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella."
Well who cares?
Who has this cheap umbrella helped?
90%+ of the country has gotten EXACTLY NO benefit from this cheap umbrella. The ONLY people benefiting from the cheap umbrella are those that can afford a better umbrella themselves.
Oh, I am wrong, the 90% will get a bill for providing the 10% a cheap umbrella. Thanks
the longer they keep the bubble inflated the worse it will eventually be
30% fat weighing on the productive system is simply unsustainable. /obvious
A new paradigm is imminent
The only winning move is not to play.
The world of finance = the triumph of Reaganista-Thatcherist neo-liberalism and NWO "slave" labour arb. shenanigans. There is always a POLITICAL angle to all financial plays (or religious/ideological plays). Thats History's big lesson!
All backed up in our $ age on the Cortesian mantra of "burning your boats" 1971 Bretton Woods Revoke and Friedmanian fiat "our money your problem" hegemony of "exorbitant privilege" nature, with the plum cherry of floating rates and petrodollar recycling to feed the debt bonanza in WS/City; twin pillars of anglo-saxon neo-Victorian Empire.
Now come the days of the whirlwind and of blowback under the gaze of Nemesis. (Thats the effect of the Chardonnay to influence my purple prose that sighs about Tahrir square's purple rose.)
(I have trouble understanding how going back to the gold standard--ZH's pet theme-- can resolve this petrodollar distortion of the financial world--aided and abetted by the subsequent derivative scam, now become a total runaway train holding the financial WMD. I still think that linking KING fiat--symbolic "funny money" of the future-- to a basket of commodities and a basket of national fiat monies is the best way to create a stable BUT dynamic MULTILATERAL monetary system. But we desperately NEED to shut down the Casino economy and to make the real economy centerpiece. Only question : who bells the Cat? But that may be the effect of the Chardonnay on the cobwebs of my mind, as the Cat is on a hot tin roof! )
Putting up with less and not having to buy the latest but instead buying the longest lasting products put you way down the path of not needing financing for anything.
Maybe houses, but in reality, with "Small is beautiful" coming back, that is accomplishable as well.
Use no debt, ever.
Invest in companies that use no debt, ever.
until the class-warfare turns into class war they're going to keep printing money, and the finacical institutions are going to keep up their risky business, indebting americans more, and more daily.
their in a no lose situation, tbtf bankers collect incentives,and bonuses on every dollar that moves, all dollars are moving in a circle the same people collect, while the american people are more indebted.
my theory is germany can't get it's gold because it isn' theirs any more just as americans gold in ft. knox is not thiers anymore either, it's been used as colatteral to the BIS, through the fed. and the ecb..
i'll put it in laymans terms, your out of money, you take a loan out using your house as colatteral, you don't pay the loan off the bank owns your house.
appointed people print more money, (with little to no opposition of politicians), using americans money, and assets as colatteral,(yes this is legal), from the fed., (bis), ( a private bank), america defaults, the BIS owns americans assets.
this is why there was a tbtf bail-out in 2008, and why there won't be, with the next finacial colapse, the private bank, the BIS, owners of the fed., now have a lien large enough against the american people, it controls all our assets, and future assets.
the same has happened in japan, 20 yrs. of japense working paying taxes and are deeper in debt to the BIS.
there's a place in hell for all the politicians who took their vows to protect america, then looked on, participated in, personally profited from, and appointed people who had an agenda, ( i.e. worked at a central bank), and were responsible for the total destruction of america.
usury - defining it here as money-lending for consumption** - is a parasite between producers and consumers.
(** there's more to it no doubt but focusing on the effect of usuary on consumption and disposable income makes the point much clearer)
if/when the banking mafia get strong enough to fully corrupt the ruling elite so as to remove all legal brakes to unrestricted usury then the parasite will rapidly grow to a terminal size.