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The Central Banks' Assault On Savers
From Bill Buckler's Privateer:
The Assault On Savers
The best and most basic proof that NO central bank anywhere has the best interests of the actual producing economy of their nation as their focus is the assault on savers and saving. Sustainable economic "growth" is only possible in a situation where more is being produced than is being consumed. This "surplus" is savings which are in turn the life blood of production. When savings are discouraged to the extent they have been over the course of the GFC, one can be sure that the goal of those in charge is not a REAL recovery.
In the UK, Bank of England governor Mervyn King has been apologising to British savers for years over the "necessity" to hold interest rates at non-existent levels. Apologies are all that has been forthcoming. In 2007, savings on call in UK banks attracted an already low average rate of 3.15 percent. The average rate since early 2008 has been 0.94 percent. Since the Bank of England reduced its rates to their present 0.50 percent in late 2008, that average rate has been much lower. According to a recent article in the UK Telegraph, these rates have reduced the interest on savings by at least 70 percent since 2007. This, according to the article, has been done - "to protect an enfeebled economy from outright collapse". What it has done instead is to bring about an all but outright collapse among those who took the definition of the word "economy" seriously. It has impoverished UK savers, especially those on fixed incomes.
The situation is similar everywhere. In the US, anyone who has chosen to live within his or her means over the past four years has paid a heavy price. As is the case everywhere else, the Fed gets things precisely backwards. Their contention is that borrowing is essential for economic "health". In reality, the ability to borrow is the RESULT of the economic health displayed by those who have savings to lend. But what the Fed and the other central banks want to "save" is not the economy, it is the financial system and the imaginary prices of financial assets which form its only foundation.
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Growth is essentially an accumulation process.
If you lose what you got and add a little, you grow.
If savings of money produces no interest, and stock/bond investments are so unpredictable that the individual can not do well, that leaves the Big investment banker as the only solution---- except Social Security. The individual has no choice but to invest in Big money and hope that criminal element does not steal his money.
PM, the harbor for the non-believers, may be rigged by Government and Bullion Banks to the point that it could become as insane as the rest of the World money/fraud schemes.
There may be no where to run and no where to hide assets from the Wall Street Wolf pack. When cornered, any animal will become aggressive. We are cornered, and how a push back is accomplished against the enemy is beyond my pay grade to ascertain. I am no longer confident that an election can change the direction of our Nation. We may have to look beyond the “hail Mary” pass to save the game. The old sales ploy of closing a deal by giving the prospect the choice of color, making and establishing that the deal is closed, may be before this Nation giving us the choice of Red or Blue for the same Ruler product. Their corrupt team or our corrupt team.
Never the less, outside of made in China pitch forks, we must attempt to vote in and promptly vote out Politicians until we get one or two that function for America. It is either Vote or Revolt. Vote makes more sense, less revolting as it were.
Vote, VOte, VOTe, VOTE smart---------- these are the times when all good men/women are needed by their Nation
A choice between tweedle dum snd tweedle dumber doesnt seem luke a choice.
We have a political cartel, an oligopoly that limits choice with high barriers to entry for other would be political parties.
We cant change a damn thing by voting. The die was cast a long time ago. The world in general and america specifically will only learn the hard way, assuming even the right lessons are drawn from our accelerating decrepitude and worsening productivity.
Onlooker,
When you get to the polling station, tell them that you came by to vote for a nno-believer and you will receive an extra vote.
It is truly difficult that anyone still votes; is this your first time?
Nothing personal, my friend, I just cannot comprehend how we can still be dignifying this farce
back to the beach om
I removed 95% of the cash from my bank accounts, closed my 401k, my IRA and ROTH IRA's and sank it in PMs and my mattress fund a l-o-n-g time ago. Even though there are a few lumps in my mattress, I sleep very well thank you.
contentious empires abound.
http://expose2.wordpress.com
Europe and the UK agreed to lower the pensions in the UK with 20% this weekend...
You work you whole life, expect to live the rest of your life in the same way you used to and paid taxes for.... And than you end up having nothing.
Because they lied to you all of your life!
EVERY ONE of you should be out buying gold.
"But what the Fed and the other central banks want to "save" is not the economy, it is the financial system and the imaginary prices of financial assets which form its only foundation."
This sentence is dead nuts spot on!
Until we clear the bad debt out of the system nothing good will happen to most of us. The entrepreneural spirit will diminish even more.
how can we fight the CB's?
that's right, buy and own physical gold and silver, spend as little as possible, make as little as possible to live and watch the CB's go away
TO: Old Man
This is not my first vote. At 72 I am not yet old but will be there someday. The implied choice in my post is Vote and have it work or revolt. I personally have an aversion to revolution. Too much blood has been spilled for the ability of the representative vote to voluntarily walk away.
IMO this is a test that can not be failed. If you don’t want to vote and like pitch forks, be my guest but not my allies.
This is YOUR Nation--- yours and you children and their children.
Vote and vote smart.
@Onlooker
Sir,
You are my senior by a year, but I was always on the outside and so often told 'love it or leave it' by my friends and had many fistfights with non-friends------that I exiled myself as soon as my family responsibilities would allow me, to a South American paradise. Here voting is interesting because there are always twelve or so candidates from an equal number of political parties running as contenders in the primary for the presidential election, and the electioneering time frame is roughly three months of campaigning-----not four years.
Four times since I have lived here the populace has thrown out its president and the electorate through this very real and vital proccess has become far more sophisticated, though less opinionated than the US electorate. Voting in this country is an act of intelligence.
My nation is dead, but I am still an American since I was born in the Americas.
I have voted and voted smart with my feet, but because I have friends, family, and yes---even enemies that I honor, I feel compelled to remain outside futiley pointing at what is so obvious from here about my dead nation, the US of A----which, indeed---I long for but which no longerr exists except in an oldman's mind.
Good luck to you, sir----your loss matches mine exactly, so you know what I mean om
It doesn't help the situation when you have paid up journos in the UK mainstream media adding insult to injury and pouring petrol on the flames saying we need more QE like this goon and I quote "... If anything, we probably need a little more of it."
http://blogs.telegraph.co.uk/news/danielknowles/100140414/ignore-the-qe-panic-mongering-inflation-isnt-going-up/
Fortunately the guys ignorance got exposed, but this bullshit propaganda is a nightmare here in the UK with the state owned BBC pushing the socialist agenda.
Anyhows we're doing our bit to spread the word of small government.Educating the electorate is the only way to turn the ship around.
Inflation explained, even a dog would understand this.
Why the West is Bust - Part 2
http://www.youtube.com/watch?v=Mh_Cs-rMv7M&feature=youtu.be
Walter Bagehot wrote the book on how to resolve credit crises. Credit represents a confidence and trust in the financial system. Trust and credit are one in the same. Knowing that the bankers, who designed, implemented and fraudulently operated the financial system, which brought the world economy down, are still in control makes recovery impossible. The same banker fraudsters will strike again.
The only way to restore the financial system is to bring the approximately 10,000 banking criminals to justice and send them to prison. Thereby allowing financial reform, restoring trust and reviving the credit markets.
This is a good article about a factual point which lost on most people. Only savers can successfully lend without distorting the economy. Every route takes you back to the absolute necessity of sound gold backed money which holds its value and allows free market savers/lenders to push the economic engine forward. As soon as you start throwing government and printed money loans into the mix, nothing will work right anymore.
And they struck out on employment too.
http://confoundedinterest.wordpress.com/2012/03/04/comparing-unemploymen...
Walter Bagehot, who wrote the book on how to resolve credit crises, says that Bernanke is doing it completely wrong. The role of the lender-of-last-resort Central Bank is to lend only to solvent institutions (not insolvent banks), accepting only the highest quality collateral (not worthless toxic real estate mortgage backed securities) and at very high interest rates (not at zero interest rates because it kills savers, capital formation and consumer demand in the overall economy).
Bernanke flunks Credit Crisis 101. Lousy economy for four years and ticking, how long are we going to keep these incompetent fools around.
Eric, ".........., how long are we going to keep these incompetent fools around." If you can define the word 'we', you will know those fools are not incompetent at all, you will know why they are in power, and you will know for how long.
Eric L. Prentis
Eric your statement is dead on, 95% here know this already.
But, what the author doesn't get, nor does the rest of the media, is that ALL of this mismanagement is being done on purpose.
It's not that they do not know better,its just part of the NWO global plan.
Therefore, Bernanke is just a trussed-up turkey fool. Doing the bidding of his masters on Wall Street, acting the ultimate tool. Bernanke forfeits everything he works for in academe and trades it in for power. Bernanke is in complete intellectual denial, trying to keep his lies straight. Bernanke sacrifices his humanity and makes a pact with the devil. Now it makes sense.
However, in a democracy, you cannot get away from the people. The people have the economic power, if they care to use it.
The Bernank's in one of those Kobayashi Maru games.... in theory he could stop the printing presses, but for pragmatic reasons there's no way he can stop them, either. You've heard the saying, "when you're a hammer, all your problems look like nails"? Well, when you're a Keynesian all your problems look like they need a little stimulating.
We have not touched any of our savings account. One has 5 dollars and the rest have a dollar each.
They require you to open a savings when you open checking these days and then limit your ability to move money to three times a month from a savings.
So we keep 4 savings accounts so that we can piggy back and "Snowball" the transfer limits to 12 per month instead of just three if need be.
GDP is generally defined as Consumption (C) + Investment (I) + Government Spending (G) + Net external trade (X-M)
This is the classical model. It assumes that all components are rational and soundly based. Consumption of burgers and i-phones by the private sector is assumed to be just as valid as the consumption of caviare and 40 foot plasma tvs. There is no debt in the components of this equation, only the cost of debt. There is no allowance for increasing consumption (via trade) in a globalized economy.
GDP growth is related to the changes in each component.
Savings is part of investment. When you reduce the return on savings and other forms of investment like Treasuries, the rational action for the economy is to reduce savings. The Fed is a government agency and is merely monetizing the reduction in savings in by increasing G, in the hope that consumption picks up in the private sector.
The writing is on the wall, since this fundamentally flawed accounting identity masks a thousand items of bad behaviour such as theft (excess consumption fuelled by credit expansion) and fraud with its corrollary of a higher and higher interest burden at any level of interest rate.
Note what will happen if G is reduced from its current c.8% of GDP to a more "manageable" 4%. GDP growth contracts by 4%. This would quite unnecessarily cause a panic. It is unnecessary because the level of GDP that is sustainable is likely to be some 25% below current levels. In other words, the economy is not based on sound foundations and instead is simply over-stressed at the current levels of GDP.
Attempting to support GDP at these unsustainable levels is simply pissing in the wind. Governments need to stop digging the hole of fraudlently labelled Keynesianism and start filling it with the dirt of common sense. If you live beyond your means, you will go broke.
@hooligan
Thanks very much for this post, sir.
I have looked for a rational explanation for years, but this is the only one I have found comprehensible. It is obvious, now, why we cannot escape our plight and Mr. B is so terrified as well as the rest of the CBs----
Now it really is more interesting than before
Thanks again om
Bernanke is literally KILLING seniors who aren't buying meds now. BERNANKE BELONGS IN PRISON! The fucking rates are NEGATIVE 3+% for 5 years? $192 Billion is sucked from the economy without an historical rate of interest, thats' 1.5% lost in GDP.
Jim Rogers said Bernanke may "lose an entire generation of savers" by crushing the value of money, due to inheritances.
A CITIZEN'S ARREST IS LONG OVERDUE!
Spend your kid's Inheritance as not to burden them unduly with odious taxes.
Trust me, it's good for them. Ma and Pa approved.
Hey Mr saver! Thanks for doing without for so long. Now we get to take everything you have through inflation, through devaluation,and through taxation. And, to bail out all those a-holes who aren't strong enough to save like you, we're gonna have to have ZIRP for thye forseeable future so there are no decent, safe investments anymore! Just load up on somma those growth equities that pay no dividends. It'll be allright. Just make sure you get out before we run out of greater fools. Effn sucker. Oh yeah. Don't forget to vote - we needto figure out who gets voted off washington island!
World War III - The First Private War in History
Those who won all battles shall lose the war.
Bilderberg Group and the crimes against humanity.
This is how things work in all countries. Whatever used to belong to their people, today it belongs to the multinational companies of the Club. People were betrayed by their given leaderships and they lost everything. Capitals and markets were handed to the Club bosses. If you understand what is going on in Greece, you can understand what is going on in Britain, France, and Germany etc..
http://eamb-ydrohoos.blogspot.com/2012/02/world-war-iii.html
Authored by PANAGIOTIS TRAIANOU