Economic pressures

[Danny B]

Collapse of the Euro zone

The German founder of the Eurozone is now calling for it to be broken up.
The Daily Bell - Globalist Euro Disaster: Euro Founder Endorses Bust-Up
Germany is on the hook for about a trillion in debt. Then, there are trillions more of risk associated with guarantees.
http://www.nytimes.com/2013/02/06/bu...anted=all&_r=0
The situation has gotten so bad that leaders are thrashing around in the dark trying to come up with a solution,,, ANY solution.
Eurozone crisis deepens as German 'sado-monetarists' refuse to back QE - Telegraph

The problem is that ALL of their theories have been proven wrong or unworkable. They say that they need to grow their export market. Consumption is falling and they plan to grow exports.
Austerity was going to squeeze out the money to pay all the bankers. Austerity hasn't even hit Britain yet and they have 24,000 deaths of people who couldn't afford heat. Spain and Portugal and Greece are dying.
It's a sad time for Europe.

[MonsieurM]

found a very interesting article .... thought you might like it :

Our American Pravda | The American Conservative

found it here : How Elites and Media Minimize Dissent and Bury Truth — Paul Craig Roberts | Gold and Precious Metals

[Danny B]

free energy anmd freedom

MonsieurM, those are both great articles. In a general sense, there are 2 factions. The socialists/communists and the corporatocracy/fascists are always trying to control GOV to insure that they get a guaranteed income. So, while the communists were infiltrating American GOV,,,, the fascists (London bankers) were already in control of American GOV.
Pure communism destroys incentive and motivation because you don't get commensurate rewards for your labor. You are allowed enough support to survive.
Pure fascism steals much of the rewards for your labor but, does not leave you enough to survive as part of it's policy.
A TRUE free market capitalism seems to be the best alternative because it would dis-allow monopolies. Since GOV and banks all rely on monopoly control, they would shrink to almost nothing.
The advancement of free market thinking would leave a LOT of unqualified people out of the labor market. BUT, the unfettered freedom of the free market always brings innovation and competition.

Imagine if there were open, free competition in the development of alternative energy.
The progress of the economy and civilization is dependent on price deflation.
The lower the price, the more people who can afford to raise their standard of living.
Consider the story of Nikola Tesla and Wardenclyffe. If it were implemented, it would have caused an enormous deflation in the price of the master resource,,, energy. Bankers don't want price deflation because the cheaper it is to live,,,, the less you have to work. They want you to be laboring for all of your hours and years,,,, creating wealth for them to siphon off through money printing.
GOV doesn't want personal energy independence because it would seriously reduce central control. The smart meter isn't about efficiency. It is about central control. HV transmission lines lose 17---25% of power. If GOV wanted power efficiency, they would work towards distributed generation, not central control. Power companies have started building HVDC transmission lines to get around some of the problems. Anything to maintain central control.
Communism and fascism are always enforced with guns. Free energy would tend to starve the beast and reduce it's enforcement powers.

[Danny B]

Corruption and the replacement of the dollar

Lord Acton said, "power corrupts"
Douglas Macarthur said that all corrupt societies collapse. This vid has a long exposure of the saturation of corruption in Western business, finance and GOV.
Columbia Economist Dr. Jeffrey Sachs speaks candidly on monetary reform [Full version speech] - YouTube
This weekend, the G7 (debtor countries) are having an emergency meeting in London. G7 finance chiefs to discuss bank reform push - chicagotribune.com

For decades, emerging countries have invested in the sovereign bonds of the developed countries. They have been thoroughly screwed by Western money printing.
This weekend, most of the emerging countries are having a meeting in Istanbul to producing a new currency system to exit from the Bretton Woods agreement.
Global Finance in Transition conference to take place in Istanbul / News / G20
The G20 is invited but, they won't have control. You can imagine that this conference is not getting publication in the West. The West doesn't want to give investors fair notice that the dollar system is being replaced.
How Elites and Media Minimize Dissent and Bury Truth — Paul Craig Roberts | Gold and Precious Metals

Rumor is that the conference will result in a multi-faceted reserve currency that will replace the dollar. These dollars will be sent back to us,,,,, for safe keeping.
Red Alert! Frontside INTEL Coming In: Trillions Of Dollars Coming Back To The US! | Forex
The stock market has been pumped up to astronomical numbers with no underlying value.
GET READY: The World Is In For A Massive Shock Not Seen Since 1929!! The Next Financial Crisis Is Going To Be Disastrous!! | InvestmentWatch
Everybody knows this but, they ALL believe that they can exit in time. STUPID investors haven't thought out where they will exit TO.
This conference will seal the fate of the dollar-reserve system. The West has tried to destroy every country that tried to exit the petro-dollar system. The new BRICS development bank will do exactly that.
They will undoubtedly implement a payment system to compete with the SWIFT system. Here is a cute JPG on the currency war with china.
http://2.bp.blogspot.com/-_cbSgg-wfs...rrency+war.jpg

This article has a comparison between electronic money and paper money;
"I would definitely argue that consumer price inflation is easier for central banks to rectify. As such, the electronic version is proving itself a more dangerous tool than the traditional currency printing press."
The Prudent Bear: Thoughts on the Electronic Printing Press

GOV is automatically corrupt. GOV prints paper and says 'TRUST US" . Other GOVs say " my dear fellow rat, I only trust your gold". The gold is gone and the trust left a bit later.
The London bankers own the FED. The FED has screwed the world. The R.O.W. is pushing out the London bankers so, the London bankers are having an emergency meeting. Maybe they will have fish for dinner. Monty Python.
http://i2.ytimg.com/vi/YoBTsMJ4jNk/hqdefault.jpg

[Danny B]

Destroy the dollar

Obummer wants to kill the dollar. "he was given one of the strategies for reviving a dying U.S. economy. It involves devaluing the U.S. dollar to affect renewed export demand."
Libertarian Today: Report: Obama administration intends to destroy the dollar to "solve" economic crisis, wiping out savings of millions
Russia and the BRICs plan to kill the dollar.
Testosterone Pit - Home - Russia's Plan For The BRICS To Dismantle The Dollar System
The Arabs want to kill the dollar;
Operation ‘Easter Egg’: 200 Arab Billionaires Conspire to “Killâ€� the Dollar | Beacon Equity: Penny Stocks, Stock Alerts
War will kill the dollar;
The War that will Kill the Dollar
The Eurozone wants to kill the dollar;
GEAB N°74 is available! Global systemic crisis: The war has been declared between the economic-political world and financialbanking interests

A friend once told me a story about a friend of his who made a Molotov cocktail. He used a 5 gallon glass water bottle. He filled it and was ready to light it. It dawned on him that he could never throw it far enough away that it wouldn't get him too.
Killing the dollar would result in a crash of the Chicago commodities board.
Chicago Mercantile Exchange - Wikipedia, the free encyclopedia
That is where many farmers go to get financing for crop planting.
http://www.cmegroup.com/

You can see where this is leading
Terra is currently getting hit by X-Class flares. The weather is already cutting back on future agricultural production. The death of the dollar would bring food price inflation. Here is a graph relating food price to revolution.
http://necsi.edu/research/social/img/fig1_crises.png
Killing the dollar is bound to have some blowback.

[Danny B]

Europe

I traveled around Europe and Asia on a Top Deck bus for about 10--11 months.
Top Deck buses - YouTube
I really like the place and the people. Their attitudes were quite different than America. The good times there are coming to an end.
The bankers printed enormous sums of imaginary money. They lent it out at a low rate of interest. When the low-wage producers crashed into the high wage countries, jobs were lost. The aggregate national income dropped.
The loans were priced at low-risk but, the loss of income made them high risk.

The banks had mispriced the risk by ignoring the rise of the BRICs. When the World Trade Organization voted most-favored-nation trade status for China, that action doubled or tripled the risk. Loss of income caused defaults. The bond holders and stockholders of the banks should have borne the loses because they previously gained the profits.
The mantra of the bankers was/is NO BANK INVESTOR SHALL EVER LOSE EVEN ONE PENNEY . The GOV printed treasury (public) debt to cover the losses that the investors refused to pay.
The losses were caused because bankers mispriced the risk. The solution is declared to be austerity. Everybody takes a cut in wages or a loss in jobs. The error was mispriced credit but, the solution presented is a reduction in wages. The engine of consumption and productivity has stalled. The rich investors dodged the bullet but, it caught the middle class.
This isn't entirely true because there are a lot of middle class people who are investors in mutual funds. There are a lot of pension funds invested in bad notes.
It might have been possible to separate mom-and-pop and granny from the rich investors but, it didn't happen.
The big problem is that Europe just has too many banks and too much debt. EVERYBODY was living on credit,,,, wages that they HOPED to earn. Not only are the wages gone but, all those trillions of household debt are still there.
Here are the numbers.
A Few Quick Reminders Why NOTHING Has Been Fixed In Europe (And Why LTRO 3 Is Not Coming) | Zero Hedge

Spot The Odd Continent Out: Total Bank Assets As % Of GDP | Zero Hedge

It's going to get ugly and very sad.

[Danny B]

Corruption

Almost all markets have been distorted by corruption. The FED is a wonderfully corrupting entity. Corruption is essentially an effort to receive compensation greater than one merits from one's own efforts. Both socialism and fascism are corrupt by this definition because they both try to redirect compensation disproportionately. Capitalism is fine as a production system as long as there is direct barter.

Once a non-tangible intermediary is introduced, the corruption takes hold. The producer no longer controls distribution and remuneration. If gold or salt or shells are used as a tangible intermediary, the opportunities for corruption are greatly reduced. Corruption is the necessary centerpiece for both bankers and bureaucrats because their actual productive contribution to productivity is minimal or nil,,,, or negative.

[Danny B]

The paper money scam

All GOV is socialist. All GOVs steal to redistribute. The first job is to steal the money. ALL fiat money is backed by violence, nothing else. You work for your money,,,, GOV just prints what they want. This would be too obvious so GOV collects taxes to keep up appearances. The Grace Commission created by Ronald Reagan reported that not one cent of collected taxes goes to GOV. It all goes to pay interest debts to bankers. GOV prints dollars which reduce and dilute the value of the dollars that you had to work for.

GOV doesn't want you to do any transactions that can't be taxed. They want all transactions to be recorded. Only .4 % of U.S. money is in the form of paper money. This is called money of zero maturity. MZM. All other forms of money have a due date or a maturity date. In the interest of tracking and taxing all transactions, GOV only prints small denomination bills. They also make it a crime to make large cash transactions without reporting.
Here is a guy who had cash confiscated because he couldn't prove to the cops that he INTENDED to do a legiimate transaction.
Officials Confiscate Cash and Property — for No Reason

GOV is in a hard push for the cashless economy. Forget about the huge control issues. Banks would have access to ALL savings. GOV would have life-and-death power over everyone.
The Net (1995) - Trailer HQ - YouTube

For thousands of years, any "money" that wasn't a store of value always failed. The bankers got us to go from gold to receipts for gold. Then, they got us to accept inbacked paper. Now, they want us to work for electronic digits. Next step is to erase all traces of a physical medium in transactions. Nigeria is now being forced to accept cashless transactions under the control of Mastercard.
Historically, all money failed it it weren't a store of value. It appears that the PTB will shove it down our throats if given the chance.

"How do Americans beat the Federal Reserve Back into Submission? We Barter. If you do not use the Federal Reserve notes for trade then the Federal Reserve is powerless to charge interest for use of it’s money. Using Gold, Silver even bushels of corn all negate the power of the Federal Reserve. However there is a catch.. The IRS (Police force of the Federal Reserve) says barter transactions are taxable under the Tax Equity & Fair Responsibility Act of 1982. You trade your neighbor fish for some corn, the IRS wants a chunk of it in the form of a tax"
Why The Federal Reserve Hates Bartering « Kipnews | Knowledge is power

Not happy with the money coming in from Tax, The FED cops (IRS) want to manage obummercare. The have armed their agents to do collections.
It's almost enough to make you sick.

History notes;
The History of Money – Barter, Trade, Gifts, Coins, Bank Notes… « Perpendicularity.org — Blog

[Danny B]

The consequences of free energy

"Ever since we have discovered fire, humans have been on a fast track to harness more and more energy for their use. More energy always meant a higher standard of living. Slavery was made obsolete by more energy. Women’s status has improved as soon as more energy was available. Large families stopped making sense, when child labor stopped making sense, and that was due to more energy being available. Life in the US is so much better than other parts of the world, because there is more energy available for each person living there. And we are just scratching the surface of what is possible.

At some point along this line, what I will call the Global Controllers had a realization: as soon as any human on the planet has access to abundant, unlimited clean energy their “power over others” games would be over.
Inelia Benz: Free Energy

[Danny B]

Bail ins

I'm sure that some of you have been busily working in your shops reaching for ZPE or something equally interesting. I want to make this very clear so you can't say that nobody told you.
When you make a deposit at a bank, you are LOANING the money to the bank. They can make you wait for several days to withdraw THEIR money. You saw in Greece where the depositors got a "haircut". The bank took their money with your name on it and made themselves whole again.
Most countries now have these bail-in provisions on their law books. Even Switzerland implemented these confiscations.
Switzerland Revises 1934 Banking Act to Allow Bail-in Deposit Confiscations! | SilverDoctors.com
The banks gambled on the derivatives. If they lose a bet, YOU get to pay off the losses. The amount at risk is speculated to be between $ 700 trillion and $ 1.1 quadrillion.
Every time that we have a holiday where the banks are closed for a day, things seem to go crazy.
Jim Sinclair: Entire US Banking System Missed a Bail-in Collapse by a Hair Tuesday! | SilverDoctors.com

Go to Weiss ratings and find about your bank. Better yet, find a good credit union to join. Weiss Ratings

BTW, if the banks steal your brokerage account, the do not have to pay you back if they didn't really mean to steal it,,,,, so says the Ninth Federal circuit court.

[Danny B]

poverty and wages

Here are a couple of sites that report on poverty
The Real Numbers: Half of America in Poverty -- and It's Creeping Upward | Alternet

Activist Post: 40 Statistics About The Fall Of The U.S. Economy That Are Almost Too Crazy To Believe
There are 100 million Americans not in the labor force. Subtract their wages from the aggregate national income. Wages have been falling for years in true purchasing power. Great graphs.
The Truth About Competitive Devaluation | ETF DAILY NEWS
Subtract the deteriorating purchasing power from the national ecomomy.
The wage base has disintegrated but the bankers are trying to maintain prices.
The wage-earner has defaulted but, the FED has printed to make up for the difference. The FED debt is morphed into Treasury debt for our kids to pay.
The system just won't hold together that long.
Do The Math - YouTube

[Danny B]

Inflation, deflation, wealth and confusion

Inflation is defined as an increase in the money supply.
Deflation is defined as a decrease in the money supply.
The money supply includes cash, checking account deposits AND credit.
Our central bank, The FED only creates a small portion of currency and credit. The banks create the majority of credit.
http://media.theweek.com/img/generic...oneySupply.jpg

After the 2008 credit market crash, credit was seriously reduced by the banks. The FED stepped in by creating about $ 26 trillion to make up for the loss of credit. This makes it difficult to keep track of inflation/deflation in the money (credit) supply.
To make things even more difficult to track, not all money is created equally.
FED created money is called high-powered money. So too, are gold and bank reserves. Bank-created credit is called low-powered money. The distinction seems to be whether or not, the money is subject to default. To add to the confusion, the monetary base is not the same as the money supply.
https://en.wikipedia.org/wiki/Monetary_base


Thousands of years ago all productivity was aimed at producing tangible goods. Gold became the standard untermediary for physical exchange that was more effciient that direct barter. Tangible wealth could only be stolen by forcible robbery. Paper money was invented by bankers to correct this shortcoming.
Money - History's Biggest Scam - YouTube

Paper money comes with a built-in temptation. If some is good, more is better. It is always over-printed. Paper currencies generally last 30---40 years before they go bust. The U.S. dollar as an unbacked currency is 42 years old. The main problem for workers is that they have to work hard for their dollars. The central bank just prints dollars with no cost. They get free money. Our central bank is owned by private banks. Both groups print free money. Since they are "first spender", they receive wealth without any real effort.
A currency is referred to as a fiat currency if it's acceptance is mandated by law. All GOV authority comes from the point of a gun. Bankers own GOV and force you to use their worthless paper at gunpoint. They give you paper and you give them wealth.
The Grace commision reported that NO tax collections go to GOV. It all goes to the bankers. Contrary to what GOV would have you believe, GOV prints ALL the money it spends.

A federal reserve note is thought of as wealth. ALL FRNs are created as debt so, how can they be considered wealth. All of our circulating money is debt instruments. If GOV prints more debt instruments, how can that be considered an increase in wealth? This further clouds any discussion of inflation.
Wealth is tangibles. Tangibles are constantly being burned up and sent to landfills every day. Currently, wealth is being reduced faster than it is being manufactured. We are in a depression. The physical economy is shrinking.
The banks print more paper to compensate for less wealth. Economic deflation couple with currency inflation. More confusing.

There are too many banks, too much debt, too little income.
Credit is a means of moving consumption forward. We spend the wages of tomorrow for goods delivered today. In most cases, this is plain stupidity. If we use credit for productive investment, we will probably have enough profit to repay both principle and interest. If we use credit for consumption, it is much more difficult to produce enough to repay both of these.

We reached into tomorrow to pay for today. When tomorrow came, we lost our job and couldn't repay. The banks stepped in and printed the money to lift the default and passed the bill on to our children.
Prof. Kotlikoff said that our unfunded liabilities amount to $ 212 trillion. There will be an eventual default.

The first-spenders are printing more debt for us with wild abandon. The Western defaults are multiplied a thousand times by the derivatives written on them. The bankers justify unlimited printing as necessary to pay for 1$ quadrillion in bogus derivatives that are going bad. they plan to give us a good screwing before it is all over.
Forget about inflation/deflation arguments. Just look at actual wealth.

[Danny B]

Jim Willie, debt money

This is what Jim Willie wrote about the distortions created by considering ebt to be wealth;
"The confusion of money, ordained debt backed money used as legal tender: The floating currency system used by the United States and the West has a pernicious undercurrent, whereby by default the Western currencies are deemed essentially as denominated debt coupons, designated for usage as money for managing transactions and settling debts public and private. The West thereby has confused money with legal tender for several decades. The Western money is not money, but rather denominated debt. The foundation of the monetary system is sovereign debt, in deed, in reality. Not 1% of the American public comprehends this subtle but highly important point. The super abundance of debt has reached crisis levels, and has been in writedown phase for over four years, since the Lehman Brother signal flare event. The phony debt based money has persisted. For decades the wealth accumulation process has been laced with the cancer of phony money. As the debt correction occurs in accelerated speed, the sovereign debt of the West undergoes deep losses. In the process, the nasty consequence is that entire national wealth vanishes as part of a debt writedown. It can be seen in the planned failures of systemically important financial institutions (SIFI), as the Bail-In features wipe out private accounts. The private accounts for savings, stock accounts, futures accounts, even pensions, are merely badly defined debt markers within the vast cockeyed skewed misaligned perverted system. Much of the US private wealth will vanish in the debt writedown and financial firm failures, one decade after phony home equity wealth vanished in a similar manner."

Here is the link. It will show you the complete criminality of Western GOV and finance.
http://www.24hgold.com/english/news-...redirect=False

[Danny B]

The Euro

When Nixon took America off the gold standard august 15, 1971, leading monetary authorities were shocked. Their solution was to come up with an alternative. They designed the Euro very carefully.... they thought.
Now, the German founder of the Euro is caling for it to be abolished.
German euro founder calls for 'catastrophic' currency to be broken up - Telegraph

It has come out that some of the archetects of the Euro/Eurozone know that it would fail. NO currency union has ever worked unless there was a political union also. The politicians thought that they could force a political union after the inevitable collapse. They have freely admitted this,,,, recently.

Then, there is the claim that the bankers planned the Euro collapse so that they could get rid of all democratic representation and sieze all asets.
"The Euro Was DESIGNED To Fail!" - MOC #158 - YouTube
The bankers print free money and then go to work to convert worthless paper into tangible assets.

This is what Jefferson had to say;

"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 "
We are going into deflation but the debts are growing. The banks will simply demand all public property be turned over to them. It's been done many times.

[Danny B]

currency wars

Monetary inflation results in a weak currency. A State weakens their currency (prints money) to gain or regain market sector and jobs. A weak currency spurs exports and lessens imports. Labor is in infinite supply if you include machine labor. Resources are in finite supply.
As you weaken a currency, resource prices rise but, labor does not.
Currency inflation seen from the ground floor is just a cut in wages.

States initiate currency wars to preserve or gain jobs. But, since wages were reduced, there is a net lowering of purchasing power and consumption.
In 1968, you could buy a gallon of gas with one silver quater. Today, you can still buy one gallon of gas with one silver quarter. Monetary inflation steals the value of your labor to send it to the non-producers.

Obviously, a currency war is a death-spiral. It is therefore a last act of desperation by the non-producers. Once that inflation fails, we fall into deflation.
"This is the essence of the Fed’s gamble. It must cause inflation before deflation prevails"
http://dailyreckoning.com/prelude-to-currency-wars/
"The Fed’s remedies — higher rates and tight money — are likely to lead straight to the kind of depression the Fed set out to avoid in the first place. The U.S. economy is resting on a knife’s edge between depression and hyperinflation"
We have had 33 months of falling retail sales. Everything is being sold.
Stocks, Bonds & Commodities Are at a Major Sell-Off Point | Peak Prosperity
So, everything is falling in value.
Mish's Global Economic Trend Analysis: No Hiding Places

The globalists wanted a global finance sytem. Apparently, they didn't understand the end results.
"In his valedictory speech as the head of one of the most respected economic think tanks in the world, Fred Bergsten was tempted to triumph the competitive liberalization of the global economy he championed for the last half century, including nearly two decades in the U.S. government."
Bergsten Warns of Currency Wars in Peterson Valedictory Speech - Real Time Economics - WSJ
All of a sudden, the globalists have caught on to the idea that super-low wages results in super-low consumption.
The end result of lowering wages is a loss of purchasning power and a shrinkage of the world economy. NOT part of the plan. It also results in increased poverty.
States print money to increase employment. The actual result is to decrease purchasing power. They have impoverished their people and the people are not happy about starving.
How Currency Wars End - Mike Shedlock - Townhall Finance Conservative Columnists and Financial Commentary - Page 1

Energy companies have a huge exposure in the bond markets. Should there be a bond collapse, they will not have capital to conduct business as usual. They already expect to crash as distributed solar power increases.
Solar panels could destroy U.S. utilities, according to U.S. utilities | Grist