Economic pressures

[Danny B]

The Bush clan

The Bush clan has been at the center of war profiteering for quote a long time.
"In the spring of 1918, Bush became chief of the Ordnance, Small Arms and Ammunition Section of the War Industries Board of Bernard Baruch and Clarence Dillon, with national responsibility for government assistance to and relations with Remington and other weapons companies.Bush was essentially taking national responsibility for government assistance to his own Remington Arms Company and other weapon makers. Through these weapons manufacturers, Samuel Bush made and sold arms to 75% of the WWI combatants on both sides.

Senate hearings in 1934 by the Nye committee attacked the ‘Merchants of Death’—war profiteers such as Remington Arms and the British Vickers company—whose salesmen had manipulated many nations into war and then supplied weapons to all sides.

Unfortunately most of the records and correspondence of Bush's arms-related section of the government have been burned ‘to save space’ in the National Archives."

4 big banks financed the rise of the Third Reich and Adolph Hitler because,,, that's where the money was.
Bush Family Funded Adolf Hitler
Howard Hughes couldn't get enough aluminum for planes so he built with spruce plywood. The Germans had plenty of aluminum.

The tradition continues with the family of war profiteers.

[Danny B]

Bankers hate to see any idle money. They are always looking for the next big thing to invest YOUR money in. China had NO capital, NO industry and NO technology at the time of the Fall of the Berlin Wall. Communism NEVER worked.
Big Bush had been placed as Ambassador to China to remove him from scrutiny over the CIA led Watergate coup by appointed President Ford . Big Bush then called on the Red Army and made them an offer they could not refuse. China had NO industry, NO technology and NO capital. The US invested $2 trillion in YOUR 401K assets to create the "Chinese Miracle" using the same method of operation as the previous "Nazi Miracle" [2], [3]. The caveat was that China "reinvest" 10% of their earnings in worthless US Treasuries to give the appearance that China "owned" our debt. One upside to the monopolists was that there would be NO enforcement over Chinese violation of patent and copyright laws.

U.S. GOV nominal debt is $ 18 trillion. Unfunded liabilities are about $ 212 trillion. GOV would like to cause hyperinflation to erase the debt. They printed lots of currency but, they can't move it into the economy. We are debt saturated. There is ONE way to cause hyperinflation. GOV could send a check to every person for a couple million $

There are faint indications blowing in the wind that GOV is going to save the dollar by throwing the banks under the bus.
Financial Times is, in general, a mouthpiece for the PTB. Here is a word from their chief economics commentator; “Strip private banks of their power to create money”: Financial Times’ Martin Wolf endorses Positive Money’s proposals for reform"
If private banks couldn't create money, the FED would have to do it. All that mountain of interest would accrue to the treasury? instead of the bankers.

[Danny B]

Compound interest

Einstein called compound interest the eighth wonder of the world. Few people stop and think just how bad compound interest is.
From 1942 to 1992, in Britain, wages rose 2700%. Taxes rose 3400%. Interest debt rose 26,000 %. https://www.youtube.com/watch?v=d5XMPykbhmA
"The national debts are on average composed of 70% interest payments"
The Age of Civil Unrest | Armstrong Economics
The Bank of England was originally capitalized with just over a million pounds. This debt has grown enormously since then. https://www.youtube.com/watch?v=buAZblIg1aM
We work and work to pay off these debts but, there always seems to be some kind of expensive war that must be fought.
"The War Party was frustrated. They had a very big problem: there was no one left to go to war with!"
"It wasn’t until later, however, when the complete lack of an official foreign bogeyman threatened to end the War Party’s profitable racket"
The War Party Desperately Fights Back: The Bill Kristol/Samantha Power Grand Alliance Of Neocons And “Progressives” | David Stockman's Contra Corner
Apparently, we need a BIG war to keep us further in debt.

[Danny B]

Debt saturation

America started out with commodity money. Through various stratagems imposed by bankers, we now have debt money. Strange to contemplate. We have reached a point where every instrument is a debt note. This has resulted in;
Chairman of the Federal Reserve (Mariner S. Eccles) said:

That is what our money system is. If there were no debts in our money system, there wouldn’t be any money.

And Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta, said:

If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."

Banks create the principle of a loan but do NOT create the interest. The interest is taken from future loans that are in the pipeline. This demands ever-increasing debt.
"Debt (from the borrower’s perspective) owed to banks is profit and income from the bank’s perspective. In other words, banks are in the business of creating more debt … i.e. finding more people who want to borrow larger sums."
Bankers Love War Because It Creates Massive Profits Washington's Blog
Sooo, what happens when banks can't find anybody qualified to borrow to feed the necessary credit expansion? They loan money to anybody that breathes. When this blows up, they get GOV to pay the loans.
GOV, ( you and me) now has about $ 17 trillion in acknowledged debt. It also has about $ 212 trillion in unfunded liabilities.

Sooooo, how is this debt increase working out?
#3 The U.S. national debt is now more than 23 times larger than it was when Jimmy Carter became president.

BUT, there is this claim; #5 The federal government is stealing more than 100 million dollars from our children and our children and grandchildren every single day.
40 'Frightening' Facts On The Fall Of The US Economy | Zero Hedge

[Danny B]

Opportunity cost

I work hard and save $ 100,000. I put my money to work and I earn interest.
A bank conjures up $ 100,000 out of thin air and loans it out at interest. What is the difference?
https://www.youtube.com/watch?v=HIHCAi1MBBA

[Danny B]

Ukraine

The IMF said that they would loan money to Ukraine if the Ukrainians voted "correctly" to join the eurozone, and presumably, allow lots of NATO weapons on their territory. Sounds pretty good. Ukraine has lots of debts and could use the money. The IMF came out and said that the Ukrainian problem could destabilize the world monetary system.
ITAR-TASS: World - Ukraine situation posing possible threat to global economy, IMF head says
Evidently, the Ukrainians read the internet. The loans from the IMF would go directly to the bankers who hold Ukrainian debt. Nothing would go to the Ukrainian GOV or people. By voting incorrectly, the Ukrainians have told the bankers to ,,, take this loan and shove it.
Rockefeller has an observation on the net;
https://www.youtube.com/watch?v=Ct9xzXUQLuY
Christine Lagarde could be right about destabilization. The default of Ukraine on it's loans could bring down our very fragile system.

[Danny B]

financial parasites

The world is awash with stocks, bonds and dozens of other financial products. Everybody wants to live off their investments. Problem is, there are just too many of them slinging around too much credit ( Debt ). Everybody wants to live off their portfolio. A barrel of oil is sold 47 times before it is consumed. This adds $ 27 a barrel ( old number). Everything is manipulated higher and higher. The investors claim that they are a necessary part of the market mechanism. The consumer pays ever-higher prices to an ever-larger number of manipulators who add no productivity.

The investors claim that they are necessary. In America, the egg industry is all regulated by ECI, a nonprofit Egg Clearinghouse, Inc.
The ECI regulations require a buyer to take delivery or pay a 10% penalty. ECI connects producers and end users. Simple; connect the producer directly to the processor or seller.

Raúl Ilargi Meijer
" Well, financial stimulus of all shapes and forms, as executed over the past decade and more by governments and central banks, does just that: it makes the system weaker. This – temporarily – makes it possible for a large number of people to feed on the system (just like parasites do), and declare that from where they’re sitting, everything seems fine."
"In short, this makes just about every investor today a parasite, if not of finance, then certainly of the financial system. Or even of society as a whole."
"That part is easy to see, so much so that it’s the only part most see. The shadow side largely remains hidden, until it will be too late. Because the shadow side lies in the future, and we live in the present."
The True Parasites Of Finance - The Automatic Earth

Everything that you read in the financial papers talks about this big bond offering or a new IPO or or some new financial product. The nitwits have lost sight of the fact that none of their garbage is worth anything without a consumer.

[Danny B]

deflation to counter inflation

Private, corporate and GOV debt are growing. but, the economy is shrinking. We are in monetary deflation because the credit component of the money supply is shrinking. We are in deflation of the money supply at the same time that we are in inflation of the debt burden. There is no shortage of new credit for the banks. There is no new credit for the consumer. The big banks who receive wet-ink money from the FED invest it into commodities among other things. On balance, we have net deflation.
The banks push free money into various investments and cause price inflation. We have a 2 loop economy that has inflation in the upper loop and deflation in the lower loop. The deflation in the lower loop is due to; falling wages,,, falling credit. We have price deflation in non-essentials and price inflation in necessities.

"Median household income, net of inflation, is as low as it was in 1967."
"Economist John Williams says the latest round of “open-ended” QE has set the table for a global “dollar sell-off” and “hyperinflation” no later than 2014. Williams says"
"Williams contends there is 12 trillion in liquid dollar assets held outside the U.S. Williams says it is only a matter of time before all the Fed money printing will “trigger a sell-off . . . and that will provide the early start of the hyperinflation.”
Dollar Sell-off and Hyperinflation by 2014 – John Williams | Greg Hunter’s USAWatchdog

"The abandonment of the gold standard in 1971 set in motion four decades of consumer debt accumulation on an epic scale, currency debauchment, and real wage stagnation. The consumer debt accumulation was a consequence of the American middle class being lured into debt by the Too Big To Trust Wall Street banks and their corporate media propaganda machine, as a fallacious response to stagnating real wages when their jobs were shipped to China by mega-corporations using wage arbitrage to boost quarterly profits, their stock prices, and executive bonuses."

Our income froze but, we raised our standard of living by taking on lots of debt. http://www.advisorperspectives.com/d...-mean-real.gif
"nominal government reported income figures which show median household income growing by 30% over the last fourteen years. In reality, the real median household income has FALLEN by 7% since 2000 and 7.5% since its 2008 peak. Again, using a true inflation figure would yield declines exceeding 15%."
There has been no drop in income in the District of Corruption; http://www.advisorperspectives.com/d...ak-decline.png

SMOKING GUN FROM THE FEDERAL RESERVE MURDER OF THE MIDDLE CLASS « The Burning Platform

John Williams is predicting hyperinflation. The FED is trying to create hyperinflation to inflate away the debt burden. It isn't as easy as it might seem. The FED injects money into the upper loop of the economy ONLY. This has resulted in net deflation at the same time that we have fairly low price inflation. The FED can't accomplish net inflation because the FED starves the lower loop of money and credit. The banks hold trillions of our debt. They don't want to be repaid in dollars of deflated value. As deflation kicks in, the dollar is worth even more because there are fewer of them.

Yellen could get great inflation if she sent every person 1 $ million. BUT, the banks would get repaid in inflated dollars. The banks want to receive valuable dollars from the lower loop and, at the same time, pay their debts in non-valuable dollars. The rich can more easily pay their debts because they get all the free money. This free money brings them huge profits because they get cost-free speculation in the things that we MUST buy. The more that they speculate, the higher they drive the price and the more they gain.
They translate upper-loop monetary inflation into lower-loop price inflation. This works for a while. As the lower loop gets ever-poorer, they abandon more and more segments of the economy that depend on discretionary spending. As prices go up, a higher % is spent on necessities. The monetary inflation of the upper-loop combined with decreasing purchasing power concentrates all spending into food-and-fuel.

All the statistics show huge gains in the upper loop. ALL the money went to the top 1%. The top 1% can't spend this money. ONLY the middle class can spend this much money. The 1% can stash it away but, they would be stashing away mountains of debt that have no value. The debt notes only have value if they can be redeemed. Sure, the Waltons could buy the Mid-West. Then, what would they do with it??? watch everybody starve to death?

The 1% have robbed the rest with monopoly capitalism and debt traps. They know it can't keep going. They don't know how to undo it. They can't raise wages because that would bring more outsourcing and automation. We have had a massive deflation in earning and spending. Only a massive deflation in price would bring back our former standard of living. 50% of the cost of anything that you buy is for finance. We work about 1/4 of the year to pay taxes. Get rid of banks and GOV.

[Danny B]

204 countries in currency reset

There is a lot of chatter on the net about a currency reset. Lindsay Williams talks about it. https://www.youtube.com/watch?v=j4OsiGo10cI
Reportedly 204 countries are all going to have their currency revalued. Dunno,,, sounds kinda painful.
Jim willie has some interesting observations about gold.
“Where did all this gold come from? I mean, why are they able to force London to part ways with this much tonnage?” the answer is really quite intriguing.

Apparently, the London bankers, over 10 years ago, I guess about 14 years ago, improperly used ancient Chinese wealthy family gold for the derivatives that underpinned, as foundation, the European Monetary Union."
"Jim Willie: Yes. Well now London is given a couple of, well more than a couple choices. “You can source that gold, or we will send you to The Hague and make public all of your criminal activities regarding gold, or we can unleash the Triad on you and have you murdered.” So they’ve decided on the first one of relieving themselves of 1000 tons."
Ask the Expert – Jim Willie (May 2014) | Sprott Money News

[Danny B]

Richard Duncan and the growth of credit

I found a good article in my mail but, it doesn't seem to be on the net. I have to quote. The article has to do with greed. In a perfect (banker's) world, people would take out a loan and pay back 99.9 %,,,, then, they would default and give the collateral to the banker. This actually gives an incentive to the banker to make BAD loans. Historically, the bankers always pumped in too much credit (debt) until the system blew apart and then, they walked off with all the property. This system has been around for a long time and is called "pump and dump". The system is a sure bet because people want a better standard of living than they merit with just their wages.

" According to Richard Duncan, capitalism left the building in 1968. That’s when the link between gold and the dollar was severed by law. Before that, people would produce things, save some of their income and invest it to become more productive. " In 1968, GOV declared that the money printers no longer had to have a 25% gold backing.
"That’s one way the economy grows. Today, however, the economy grows a la credit expansion, which fuels consumption. Both have their pros and cons. Credit-driven growth lets the economy develop faster than saving and investing… but it sets it up for much bigger ruination.

Shut off the credit spigot today and the economy goes into recession. Depression, even. Yep, shut off the credit spigot. That is what the bankers have done to the producing economy. When the producing economy goes bust, the bankers can claim all the means of production.

"But you already knew that.
What you may not know, though, is that according to Richard, a credit deleveraging at this point in time could end civilization as we know it.

We’re talking global output halving… sky-high unemployment… starvation… looting in the streets… open revolt… tyrants… banks around the world crumbling... the end of international trade… the collapse of warfare… nuclear war… and other gloomy characteristics of human doomnation.

In fact, by Richard's calculation -- the U.S. needs to increase credit at 2% per year to keep growing. If credit expands below that, we’ll enter recession. "

" There are only a handful of groups that can increase that: households… governments… corporations… Fannie Mae and Freddie Mac… and issuers of asset-backed securities. And as it stands right now -- total debt among all five groups stands at $58 trillion. Assuming a 2% inflation rate, Richard tells us that means credit would have to increase by $2.3 trillion this year.

But who will borrow that much, dear reader? The federal deficit is falling -- this year, it's projected to be less than $600 billion. The Fed is in its third or fourth tapering. So who accounts for the other $1.7 trillion?
As far as we can tell, nobody…"

Mogambo Guru... from the same newsletter;
"“Under-reported inflation will result in overly optimistic growth data, and if the BEA's numbers were corrected for inflation using the BLS CPI-U the economy would be reported to be contracting at a -0.38% annualized rate. And if we were to use the BPP data to adjust for inflation the first quarter's contraction rate would have been a staggering -2.50%.” Yikes!

And if we use the non-hedonic inflation measures, as painstakingly calculated by John Williams of Shadowstats.com for which we owe a debt of gratitude, price inflation is really, really, REALLY running around 8 or 9 percent, meaning that real GDP, when deflated by the actual price inflation, is collapsing at 7% or more!"

"As, for example, how much have the aforementioned electricity price increased since 1971? 300% higher prices! Trebling! Imagine an electric bill three times higher than the one you pay now!

Of course, there are those who argue “But incomes were lower then, too, so it evens out"
"consider what a dollar saved today would be worth after a thirty year working life time under that 3.5% inflation regime. Answer: 35 cents.”
So,, 65% of your earnings are stolen by the money printers. Add in pump and dump AND confiscation of collateral. Don't worry, it's all legal.
Good vid. https://www.youtube.com/watch?v=3YR4CseY9pk

[Danny B]

Oil,,, again and electricity

I already mentioned that the top energy producers in Europe had lost billions of dollars. America screams that it has HUGE reserves of oil and gas BUT,
"As recently as yesterday, the much-publicized Monterey formation accounted for nearly two-thirds of all technically-recoverable US shale oil resources.

But by this morning? The EIA now estimates these reserves to be 96% lower than it previously claimed.

Yes, you read that right: 96% lower. As in only 4% of the original
estimate is now thought to be technically-recoverable at today's prices:"

Affirmation;
The Status of U.S. Oil and Gas Production (Spring 2014)
"According to Art Berman, the vast majority of U.S. oil and gas companies are losing considerable amounts of money on tight oil and shale gas production."
"As an example, Chesapeake Energy, one of the largest natural gas producers in the U.S., lost $1 billion in 2012 while its total debt increased to $20 billion."
Just imagine how America would look with $ 10 gasoline.

[Danny B]

Andros, Nenner and Soros

http://www.24hgold.com/english/news-...Ty+Andros&mk=1
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." - Ludwig von Mises

Every developed economy and many emerging economies sit directly in the crosshairs of this simple statement. The debt orgy continues and shows no sign of abatement as the BIS recently published a paper outlining that over $30 Trillion dollars of debt has been issued since the Global financial lows in 2008."
$ 30 trillion and,,, what did it get us?

In February 2009, Soros said the world financial system had
effectively disintegrated, adding that there was no prospect of a
near-term resolution to the crisis. “We witnessed the collapse of
the financial system … It was placed on life support, and it’s still on
life support. There’s no sign that we are anywhere near a bottom.”
George Soros sells all shares of Citigroup, Bank of America and JP Morgan | Intellihub News

"On the U.S. dollar, Nenner predicts, “Timing is our business, and we’ve always said the dollar is going to collapse in end of 2014."
Charles Nenner: War is Coming and US Dollar Collapse in 2014 | Greg Hunter’s USAWatchdog

[Danny B]

Problems here and there

Not much new to report. They put a crooked billionaire banker in jail in Iran and then,,,,, "Khosravi's lawyer, Gholam Ali Riahi, was quoted by news website khabaronline.ir as saying that the death sentence was carried out without him being given any notice. Death sentences in Iran are usually carried out by hanging."
Iran billionaire executed over $2.6B bank fraud

Former Bundesbank vice president and former European Central Bank board member Jürgen Stark told a conference held by the Ludwig von Mises Institute in Munich this month that the entire world financial system is "pure fiction" and vulnerable to collapse, built on the premise of infinite money created by central banks without regard to the goods and services available.

The current monetary system was saved "in extremis" in 2011 through concerted action by all major central banks. According to Professor Stark, "the whole system is based on pure fiction , groping since 2008 to avoid a second Lehman , which if it happens , the system will not survive ."
In Spanish; Jürgen Stark advierte de un colapso en el sistema monetario mundial

The big dogs say that there is a problem; Wall Street: 98% Risk of Crash This Year

Read Latest Breaking News from Newsmax.com Wall Street: 98 Risk of Crash This Year

Apparently, nobody has any money.. Walmart is falling apart before our eyes – Motley Fool Walmart Is Falling Apart Before Our Eyes
And, for something truly weird. https://www.youtube.com/watch?v=P2jn_lxrrPg

[Danny B]

economy shrinking,,, debt growing

The credit bubble is growing beyond all belief. BUT, credit is debt. Britain thinks that their debt is about 500% of GDP. Actually, it is closer to 950%
Everything You Think You Own Has Been Borrowed - The Automatic Earth
Interest rates have been driven down to zero. Stock earnings have been driven down to about nothing. Just Two Charts | Zero Hedge
OK, so, no interest income,,, no return on stocks. The insurance companies, hedge funds and pension funds MUST have growth to continue their payouts to investors and retirees. With ZIRP, the banks have saved a cool $ 400 billion a year that they haven't had to pay out as interest. That is $ 400 B out of my pocket and yours. Minus that $ 400 B, we haven't been able to consume enough to keep earnings up in the stock market.
“Corporate profits fell at a 9.8% annual rate, the biggest decline since the 2007-09 recession”.
The Pretty Girl and the US Economy - The Automatic Earth
The U.S. economic reversal was led by a 6% drop in exports year over year"
It seems that the rest of the world doesn't need our stuff.
"US corporate profits fell at a 9.8% annual rate, exports dropped at a 6% annual rate, and GDP is down -2%. But there’s nary an expert to be found who doesn’t claim the fundamentals are so strong that 2014 growth will be 3-3.5%. In other words, 5% or so for the rest of the year, just to make up for Q1"

"300 Americans have the same amount of wealth as their 85 million poorest Americans" - Russel Brand
Read more: '300 Americans have the same amount of wealth as their 85 million poorest Americans' - Russel Brand - News - World - The Voice of Russia: News, Breaking news, Politics, Economics, Business, Russia, International current events, Expert opinion
The rich know very well that an economy can not function with this kind of disparity. It is the bankers who got us to this point.

[Danny B]

The Paradox of Imperialism

It was long ago proven that people work the hardest and become the most prosperous in an economy and State that have wide freedoms. The freest economy becomes the richest. That is all well and good BUT, power corrupts. A rich country can exercise a LOT of power. This attracts the corrupt.
"Other things being equal, the lower the tax and regulation burden imposed on the domestic economy, the larger the population will tend to grow and the larger the amount of domestically produced wealth on which the state can draw in its conflicts with neighboring competitors. That is, states which tax and regulate their economies comparatively little — liberal states — tend to defeat and expand their territories or their range of hegemonic control at the expense of less-liberal ones."
The Paradox of Imperialism - Hans-Hermann Hoppe - Mises Daily

BUT, as the empire grows, this demands higher taxes. There is little wealth left over for the domestic economy if national wealth is directed at war.
"This country’s massive military spending had also effectively hollowed out the US economy. And instead of turning inward at the end of the Cold War, and investing in a revitalization of America’s crumbling physical, social and educational infrastructure, which might have rectified things, the problem was instead made far worse by two more decades of a continuous war economy"
The US Empire is in Decline | This Can't Be Happening!