Economic pressures

[Danny B]

Psychic wealth

At any given time, there is a LOT of embezzlement in a system. In good times, people are more trusting and don't check very carefully.
Galbraith, " In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks.”
"Weeks, months or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement"

"Comex Leverage Now A Staggering 300 Times The Available Physical Gold!"
http://kingworldnews.com/comex-lever...physical-gold/
Every ounce of gold has 300 owners.

[Danny B]

Deutsche Bank, morality and trust

Jim Willie has said all along that Deutsche Bank is going to go bust.
"Deutsche Bank Bankruptcy Will Be Declared Soon And It Will Wipe Out The Entire Banking System. FED Is Preparing For This Event."
http://investmentwatchblog.com/deuts...or-this-event/
They hold $ 70 trillion in derivatives. How do you prepare for an explosion like that?
The West allowed the derivative bubble to grow to enormous size. China allowed the shadow banking industry to do the same. This Time Is Not Different: China Faces 'Internal Debt Crisis'—Carmen Reinhart (Page 1)
Douglas MacArthur, "History fails to record a single precedent in which nations subject to moral decay have not passed into political and economic decline.

There has been either a spiritual awakening to overcome the moral lapse, or a progressive deterioration leading to ultimate national disaster."
We are definitely on track for that.
Signs of a Dying Society
When morality leaves the scene, trust walks out hand-in-hand with it. Credit trails along behind. The "trust horizon" moves inbound. Capital withdraws and investment runs for cover. Never before has a society been so dependent on credit. Never before has such a large segment of public & private enterprise been so over-leveraged.
The world improvers and the world destroyers have worked hard to bring world socialism. Socialist distribution to the rich in a fascist top layer and bread & circuses for the rest. The plan is incompatible with a high degree of machine productivity.
The old standby of war to distract the populace from their poverty is close to being realized. Of course, profit is the main motive. Actor Donald Sutherland: The Hunger Games an Allegory for the United States of America | We Are Change
We live in a different world. It is far too complex and integrated to withstand a big war. A big war would crash all domestic economies and bring revolution.

[Danny B]

Turkey commiting suicide

Different States have taken their turn in the headlines. The new one is Turkey. It is a very interesting place and I have travelled around there twice. Europe is divided from Asia at the Bosphorus and it also separates Asian Turkey from European Turkey.
Turkey shot down a Russian plane and had a film crew there to prove it. It was evidently planned in advance. EVERYONE is horrified at their stupidity.
"What Turkey did was unimaginable and the entire incident appears to create a diversion from its pending economic meltdown."
"All of this for a pipeline to compete with Russia to get gas from Saudi Arabia to Europe."
"This entire incident raises serious questions if the economic conditions in Turkey, being on the brink of a economic meltdown, did not deliberately try to provoke war to distract the world from its debt crisis. Turkey is being watched for many see it as the FIRST domino to fall in the Emerging Market Debt Crisis. "
Is Turkey Trying to Distract the World From its Debt Crisis Shooting Down a Russian Plane? | Armstrong Economics

Here is an item that is of critical importance. "The €1tn (£706bn) of so-called non-performing loans amount to almost 6% of the total loans and advances of Europe’s banks and 10% when lending to other financial institutions are excluded." Over 10% of lending between financial institutions is non-performing. THIS will come into play when the credit lockup hits. The London Interbank Overnight Rate, ( LIBOR ) Locked up in 2008. NOBODY would lend between financial institution. CONTAGION.
European banks sitting on €1tn mountain of bad debt, survey finds | Business | The Guardian
"Only when the tide goes out do you discover who's been swimming naked." - Warren Buffett
NOBODY will trust anybody for credit.
SocGen lists the 5 likeliest black swans; Presenting SocGen's 5 Black Swans For 2016 | Zero Hedge
There are claims that the shooting of the Russian jet will have huge consequences; "By this time next week the so-called “global-stock-market” will have finally fallen into that hole they've refused to stop digging for themselves - See more at: The Rothschild-Khazarian ConspiracyJust Committed Suicide

[Danny B]

Sliding sideways

Sometimes I just post headlines because they tell pretty much the whole story.
"UK Announces 178 Billion Military Spending While Dragging Britain into Bloody War"
" Cash crisis 'could close 50% of UK care homes"

The bankers love to fund wars but, not so much old people; Harry Dent: Going off a Demographic Cliff
The U.S. dollar is going up and will continue to rise. Capital flees a war zone and many investors are moving into the U.S. dollar. We have a global marketplace and a strong currency hurts exports.

1. Major American corporations get 40+% of sales and 50+% of profits from overseas markets denominated in other currencies.
2. One euro of profit earned in the EU translated into $1.40 in profit a few years ago. Now the same 1 euro of profit converts to a mere $1.07 in profit when stated in dollars.
3. That’s a 24% reduction in profit, just from the strengthening dollar.
How Much Higher Can The U.S. Dollar Go? | Peak Prosperity
The American dollar is the "most attractive horse in the glue factory".

11/26 Pimco, others sue Citigroup over billions in mortgage debt losses – Reuters
11/26 Big banks accused of interest rate-swap fixing in class action suit – Reuters
11/26 To junk bond traders "it almost feels like 2008" – Zero Hedge
Win or lose, the lawyers seem to always get "their" money.
The FED is searching every nook and cranny looking for an excuse to raise rates. They claim that the economy is growing and can tolerate a rate increase.
11/26 Not so fast, Fed! Atlanta Fed Q4 GDP growth drops to 1.8% – Confounded Interest
11/25 Consumer spending rises less than forecast as Americans save – Bloomberg NO, they are broke.
11/26 On the verge of consumer exhaustion – Mish

11/24 Case-Shiller home prices rise 5.45% YoY, over twice wage growth – Confounded Interest
11/26 New home sales drop 10.74% in October as median price falls 5.2% – Confounded Interest

[Danny B]

Eastman reading Frederick Soddy, et al

A couple of video links;
https://vimeo.com/147006325
On Soddy; https://vimeo.com/146569057
Karl Kraus; https://vimeo.com/146913383
Buckminster Fuller; https://vimeo.com/146941172
Lindberg; https://vimeo.com/146999462
These vids are in Vimeo because Dick Eastman was banned from youtube for this sort of sedition

[Danny B]

Mafia, here, there and everywhere

I already wrote about the money that the Mafia skims off. http://www.energeticforum.com/275954-post750.html
Then, there is this "‘Russia Challenged by Four Global Mafia Cartels’"
?Russia Challenged by Four Global Mafia Cartels?
There are some VERY curious details about Russia and the Mafia.
" 5 nights a week, a plane loaded with at least $ 100 million dollars in $ 100 bills is flown non-stop from JFK to Moscow where it is used to finance the Russian mob's vast and growing crime syndicate.
https://books.google.com/books?id=0O...knotes&f=false
Evidently, congress investigated this; http://armstrongeconomics-wp.s3.amaz...ry-13-1996.pdf
Then, there is the Kharzian Mafia. I have no idea where they are in the Mafia family tree. The Hidden History of the Incredibly Evil Khazarian Mafia (Updated) | Veterans Today
Evidently, they are losing power; http://www.rense.com/general96/rothsconspir.html

[Danny B]

fleeing GOV debt

Governments have been printing money with wild abandon to pay for everything under the sun. Martin Armstrong clearly shows that capital is alternatively attracted to private debt and then public debt and then back to private. When confidence is lost, money moves to another arena.
"will bring massive deflation as capital formation reduces from the public debt moving into default. This period will also bring about rising asset inflation from money trying to get off the grid, which is not the same as demand inflation led by consumer spending. "
"There will be a disconnect between the PRIVATE v PUBLIC issues of debt. The differential between AAA Corporate and government peaked in 1932."
End of Bonds Rise in Rates – A New Type of Inflation | Armstrong Economics

"Attacking the rich will cause the VELOCITY of money to decline and with it; government will be unable to sell its bonds." Debt is Destroying Everything. | Armstrong Economics

"One by one, the giant investment funds are quietly switching out of government bonds, the most overpriced assets on the planet. "
Elite funds prepare for reflation and a bloodbath for bonds - Telegraph
There are about $ 6 trillion in GOV bonds with negative interest rates. Combine that with price inflation and GOV bonds just aren't worth the trouble. The funds are selling the bonds and somebody is holding the bag. ALL governments eventually default and somebody is going to get burned.

OK, so where does the money moves to? Energy used to be a good bet but, now we have too much oil. This is bringing down oil producers; "On The Cusp Of A Staggering Default Wave": Energy Intelligence Issues Apocalyptic Warning For The Energy Sector | Zero Hedge
Commodities don't look so good because consumption is down.
Real Estate used to be a good bet but, nobody has any money. They are living on the street. The money was created out of nothing and will return to nothing.

[Danny B]

corporate debt melting

Only 3 companies in America have AAA rated credit. What about the rest?
" Junks bonds are a huge portion of the overall corporate bond market. Yesterday, Financial Times reported that half of all corporate bonds have a junk rating.

Since 2007, the proportion of corporate bonds S&P has rated speculative-grade, or junk, has climbed to about 50 per cent from 40 per cent."
We Haven’t Seen This Big Red Flag since the Great Recession
Everything about junk bonds is looking ugly; Get Ready: Stock Market Crash Coming in 3-6 Months - Here's Why - munKNEE dot.com

[Danny B]

Falling demand,,, rising interest burden

In America, we richly reward crooked bankers. It is different in China.
Chinese executives keep going missing - Nov. 27, 2015
China's 3 richest men are in hot water - Jun. 3, 2015

GOV and bankers just keep printing to keep the show going. This money stays in the upper loop and doesn't do any good for the working man. He lost his job to a low-wage competitor. He is maxed out on debt. Demand has crashed regardless of money printing.
"This implosion of demand cannot be remedied with another round of central bank money printing because the world is already at peak debt. "
Oil is headed for $ 20 a bbl and iron ore is headed for $ 20 a ton. A healthy economy sends honest information about demand. The mountains of free money created huge amounts of productivity without commensurate demand. Our wages have fallen for years at the same time that productivity increased. The world was loaded up with productive capacity as demand was falling. Now, we have a glut.

"Instead, the iron ore implosion is symptomatic of a much deeper and more destructive malady. Namely, it reflects the monumental malinvestment generated by two decades of rampant credit expansion and falsification of debt and equity prices by the world’s convoy of money printing central banks.

Since 1994 the aggregate balance sheet of the world’s central banks has expanded by 10X—— rising from $2.1 trillion to $21 trillion over the period."

All this growth might have done some good for the common man IF wages were rising at the same time. The upper loop of the economy levitated itself just on cheap money, NOT on production-consumption.
"Stated differently, the central banks substituted $19 trillion of fiat credit for $19 trillion of real savings from current income that would have otherwise been required to fund debt and equity issued by businesses, households and governments during the last two decades."
"In the case of debt, for example, the expansion ratio was nearly 4X. That is, total worldwide public and private debt outstanding soared from $40 trillion to $225 trillion. This astounding $185 trillion gain compared to just a $50 trillion gain in GDP, meaning that the world’s leverage ratio has soared to unprecedented heights."
The Lull Before The Storm—–An Ideal Chance To Exit the Casino, Part 1 | David Stockman's Contra Corner
The world produced too much stuff for our meager spending ability. A big part of the world's productive capacity should have been allowed to collapse until it was commensurate with our consumptive capacity. The PTB didn't want productive capacity to die way back so, they printed money to save it. BUT, it was debt money. Wages didn’t recover so, the economy didn't recover. BUT, the debt is still there.
The bankers pass out more and more debt money but, profits can't service the debt.
The bonds of 50% of American companies are rates junk. As they default, they take down the banks with them.

The FED is doing it's best to ensure responsibility. They have pledged NOT to bail out individual banks in the event of meltdown. They say that they will only act if a minimum of 5 banks are crashing. That would conveniently cover;
J.P.Morgan
B of A
CITI
Wells Fargo
Goldman Sachs
Fed Adopts Emergency Loan Limits Banning AIG-Style Bailouts - Bloomberg Business

[Danny B]

Dick Eastman, automatc deflation and default #1

In our economic system all the money come from bank loans -- BUT EVERY LOAN TAKEN OUT IS A CONSPIRACY TO, LATER ON, DEFLATE THE MONEY SUPPLY BY THE AMOUNT OF INTEREST PAID -- AND THAT LOSS OF PURCHASING POWER WILL CAUSE A MULTIPLIER CONTRACTION OF LENDING -- IT WILL RESULT IN LESS REVENUES FOR DOMESTIC BUSINESS, LESS PRODUCTION, LESS HIRING, MORE FIRING, MORE BUSINESS FAILURE, MORE DEFAULT AND BANKRUPTCY -- AND IT ALL THAT DEFLATION FOLLOWS AUTOMATICALLY SIMPLY FROM THEIR NOT BEING ADEQUATE MONEY SUPPLY, FROM THEIR NOT BEING PERMANENT MONEY SUPPLIED FREE OF CHARGE BY THE GOVERNMENT. There is no need to have the money supply loaned to this country by international bankers and speculators -- there are a million reasons why not to have the money supply provided that way. HERE I SHOW EXACTLY HOW THE DEFLATION DRAIN IS HIDDEN BY THE WAY BANK LOANS ARE ENTERED IN THE BOOKS BY MODERN ACCOUNTING PRACTICE.

The asset -- the loan Charlie gets -- stays at $100. But Charlie's liability -- his obligation to make payments of principal and interest into the future -- while valued at $100 dollars PRESENT VALUE at the time the loaned money is deposited in Charlie's account -- the payments on that loan will, of course total much more than the $100 dollars listed in the books. Is this trivial? Not when most people do not realize that the equality of assets and liabilities does not mean that the dollars the bank provides are the same number of dollars the bank is going to get over time. This too is very simple. Like, duh, BUT WHEN YOU LOOK AT THE WHOLE ECONOMY AND WHEN YOU CONSIDER THAT THE ENTIRE MONEY SUPPLY IS PROVIDED UNDER THESE CONDITIONS -- AREN'T YOU FORCED TO CONCLUDE -- AS I WAS -- THAT CHRONIC DEFAULTS AND DEFLATIONARY SPIRAL MUST BE THE RESULT? BUT SEE HOW WELL THE ACCOUNTING PROFESSION AND THE ECONOMISTS HAVE CONCEALED THE PROBLEM BY USE OF PRESENT VALUE, MAKING $100 OF LOAN APPEAR IN THE BOOKS AS "EQUAL" TO WHAT MUST BE REPAID. No one would see the problem
unless they already knew to look for it.


Let's see exactly how the Bank-of-England/Rothschild system on an all borrowed national money supply robs the people and who the theft is concealed by standard accounting procedure and I mean to do it so that anyone with a junior high education can understand me.

Have you ever seen a ten dollar bill divide into to ten dollar bills? Neither have I. Have you ever seen a ten dollar bill, even one borrowed from Chase-Morgan, give birth to one dollar bills. Neither have I. A dollar stays a dollar.

Yes, I know, money can earn interest. And every dollar in circulation was loaned into existence and along with it a debt obligation, an IOU, requiring the borrower to make payments to the lender of all that borrowed amount plus interest. So where is the cheat and how is it hidden by economics and accounting?

When Chase-Morgan-Satan Bank lends to Charlie Brown, Charlie and to Bank Accountant each take on an asset and a liability.

Before the loan contract is signed and approved and transacted:

[Danny B]

Eastman # 2

Charlie Brown CM&S Bank

Assets | Liability Assets | Liability

0 0 0 0

When the transaction takes place the accounts change

Charlie's new Asset, the money deposit.

Charlie's incurred Liability

Charlie's obligation to pay principal and interest over time in the future -- this is valued at the present value of the future stream -- using the interest rate and discounting backwards to its lower present value which is equal to the amount of the loan deposit on the asset side

Charlies liability is the bank's asset.

Charlies IOU is a legally binding obligation to make payments of principal and interest at certain times over time but it is entered in the books at its present value, not in the actual amount of dollars that are paid out in the future.

If the IOU is for $120 to be paid in one year from today then it is entered as only $100 dollars in the books because $100 is the present "price" of $120 one delivered one year from now at 20% interest.

The Banks liability was the creation
of the bank deposit in Charlie Brown's
account.

SEE DIAGRAM THAT ACCOMPANIES THIS POSTING

So here is the deception. When you take out a loan the bank puts down its liability as $100 -- the deposit it opened for Charlie Brown -- and it puts down on the asset side Charlie Brown's IOU promising to pay so many payments of principal plus interest -- a sum which may represent the turning over of $300 or $400 or a thousand dollars over a long enough time period (a few years) and a high enough interest rate -- but on the books on the day the loan deposit is credited to Charlie brown, Charlie's liability is put down in the banks accounts as $100 -- the present value of that future stream of, say, 400 dollars that must be paid to the bank.

Now that accounting system works for banks and for borrowers as individuals. The accountants know what they are doing.

But when the whole money supply of the whole economy is loans made in that way -- then something is wrong.

On the books, if you look just at the numbers Charlie Brown liability + $100 and CM&S Bank asset also put down as +$100 it appears -- if you forget about present value versus future value -- that the bank gives 100 in deposits and charges 100 for the loan -- so, if you forget about the present value versus future value thing -- it appears -- but onlyh appears -- that the money to repay the loan is equal to the amount of the loan.

BUT WAIT. The $100 is received by Charlie today -- and Charlie's IOU (at 20% interest on a one year loan) may be worth $100 dollars today -- but the fact of the matter is that Charlie is going to have to pay the CM&S bank $120 dollars, not $100 dollars -- despite the fact that the IOU in the banks asset account says only $100.

Now if all loans are like this and all of the money supply comes from loans like this -- then what happens when it is time to pay? At the end of the year what is due to be paid by all those borrowers identical to Charlie Brown is $120 each. That will be $120 + $120 + $120 + $120 + $120 + $120 etc. from each borrower -- but the money supply given the economy was those loans made a year ago -- and those dollars are still circulating but they total only $100 + $100 + $100 + $100 + $100 ... the sum off all of the deposit money created by the loans. So where to the people get the extra $20 + $20 + $20 +$20 + $20 + $20 +$20 ... that is owed above and beyond all of the money in the economy?

That is why there has to be defaults and foreclosures and the taking of collateral or the rolling over of loans into bigger loans that are needed to pay the interest due.

ENOUGH MONEY WAS NOT BORROWED INTO EXISTENCE PAY BOTH THE INTEREST AND THE PRINCIPAL. The economy has to have losers -- people who lose their business, lose their house, and love their local, state and federal goverments lands and utilities to privatization as things are sold off to make up for the failure to dig up the money needed for everyone to be able to pay their both principal and interest due.

[Danny B]

Eastman # 3

It is a rigged game -- there is always a shortange of money to pay debt regardless of how frugal or enterprising or hard working or economically savy the borrowers -- the money just does not exist to allow people to pay off their debts. Like a sinking ship without enough lifeboards so that all of the passengers have to fight for seat to stay afloat -- so in the inevitable deflation caused by the Bank-of-England/Rothschild system only the strongest can "stay above water" while the rest simply lose out in obtaining the dollars they need to pay the bank the principal and interest due.

That is the problem of our economy. That is the problem in its simplest and starkest terms.

Now I make a few comments for those who think I have it wrong because I failed to mention this or that.

One thing I did not mention is the fact that when a bank makes a loan and the borrower spends the money borrowed -- that that new money -- existing as an amount of bank deposit (no object like coins or metal bars is actually deposited -- the name deposit simply means that the money amount can be transferred within the banking system from account to account). Yes there is the fractional reserve banking system -- which lets banks that receive an increase in deposits to make new loans in addition to the loan that created the original deposit that just arrived -- but that mechanism does not change the problem that I have been disguising. The money lets banks make new loans -- but ALL LOANS WORK AS DESCRIBED ABOVE. So the "money multiplier effect" of having a system of fractional resrve banking does not change the problem. And of course when principal and interest are paid to a bank - the money multiplier works in reverse, contracting money as loans are called in because reserves are inssufficient to cover thos loans. That still changes nothing about the problem of interest drain making the total debt in the economy unpayable due to inssuficient money created to cover both principal and interest that must be paid and the money needed to keep everyone employed, productive, paid, and buying.

The other thing I did not mention is once upon a time the economy was not like this. Once upon a happier time there was, in addition to borrowed money in circulation, other money in large enough quantities that the interest burden over and above principal could be paid by these other moneys. Some of these other monies were supplied by the US Treasury and some by the banking system. There were, for example, gold certificates, treasury notes and coin, silver certificates as well as fractional coin much more in use -- coffee five cents, bread five cents for example. The Federal Reserve Bank Note -- with the other paper money just mentioned -- circulated more -- people paid with paper money more back then. Borrowed money was not the dominant type of money that it is now. Also the people had more savings -- much of it gold -- permanent money -- created not by a loan but by someone bringing in an amount of gold to the mint and having it minted into us gold coin -- The important thing not being the imperishability of the metal, but rather the outside source of it, it came from the ground rather than from loan contract where money is co-created with debt. Thus in the "better old days" there was more money in the system that was not borrowed which debtors could get their hands on in addition to the loan created money that itself insufficient to pay off the debt.

To understand the problem of interest drain -- the fact that banks from the very first day of a loan have created a monster of debt beyond the means of borrowers collectively to pay -- the problem hidden by the fact that amount of the money that will be required to be paid is hidden when the amount of money owed in the future is put on the books in the present at the much smaller "present-value" dollar amount.

Do you see the problem. Do you see interest drain (not enough created money to pay back principal and interest) so that as people try to pay down their loans the economic experiences monetary deflation -- and economic depression. This is the root of our problem -- and a lot of people who talk about auditing the Fed, and going back on the gold standard (but not for the good reason I mentioned) -- fail to see that the problem is in the all borrowed money supply.

----- Part I
In the physics laboratory a particle and an anti-matter particle are created together, and when the two kinds of particle meet they exactly annihilate each other. But money added to the economy as a loan is co-created with a debt obligation to pay the lender that amount of money plus more money, the interest on the loan. In an economy where all of the money supply is borrowed, it is that asymmetry of what lender gives being less that what borrower owes -- which eventually leaves the lenders owning everything. It does not have to be that way.

The Asymmetrical Creation of Money and Anti-Money (Debt) and What It Costs us.

Answering some questions about the failings of the present monetary system and what should be done.

Dick Eastman (November 30, 2015)

QUESTION:
Do we have a fiat money system or a debt-born currency?
ANSWER:

A fiat currency is a currency simply declared into existence, printed up and spent.

We don't have that kind of money, but we should.

Instead we have, if you will permit me to make an analogy, money and anti-money created together according to the rules of double-entry book-keeping, just as in physics pairs of particles, one matter (such as negatively charged electron) and the other anti-matter (the positively charged positron) are co-created using a lot of energy with application of the rule E = mc2.

However it is not energy that enables the bank-deposit dollar to be co-created with a debt-obligation to pay back (annihilate) a dollar and additionally some more money called interest -- rather it is "excess legal reserves" of deposit already on hand. It takes excess deposit (more money on hand than is required to "cover" existing loans outstanding) to enable a bank to co-create more money and anti-money -- more money and more money owing.

The universe of physics has a nice symmetry about it in that one electron and one positron are created together and, afterwards, one positron and one electron, when brought together, annihilate each other instantly. SUCH SYMMETRY DOES NOT EXIST IN THE MONEY SYSTEM UNIVERSE CREATED BY LAW AND REGULATION -- BECAUSE THE POSITIVE MONEY CREATED -- SAY "X DOLLARS" DOLLAR OF BANK DEPOSIT -- IS CO-CREATED WITH AN OBLIGATION TO RETURN TO THE LENDING BANK X DOLLAR PLUS AN INTEREST PERCENTAGE THAT IS PAID OVER TIME WHICH TOTALS X + accumulated interest.

Our economy needs money or there can be no market transactions -- but because of the great flaw -- a number of positive dollar is always created with an even greater number of anti-dollars owing over time. The money supply tends to anti-money (debt) becoming ever more abundant than positive money lent into existence.

The fact is that money does not have to be co-created with anti-money, that is with debt owed to Rothschild.

A nations money can and, from the standpoint of 99 percent of the human race, should be created out of nothing (ex nihilo), that is by fiat -- by Congressional legislation that says "let money be." Such money, created as a public utility, as necessary "infrastructure" for the national market economy, should cost the nation nothing to provide. All that needs to be paid is the very cheap cost of the very simple "machinery" that will cause one ex nihilo fiat dollar of deposit to be credited (with no co-created debit) to the bank account of each citizen -- one dividend deposit to each social credit number (it can be our old social security numbers which already exists -- an amount of money which the receivers -- everybody -- can then spend into circulation.

Such money, since it was not co-created with anti-money debt will not have to be annihilated from the circulating money supply by people paying back to banks principal plus interest. THIS MEANS THAT THE MONEY SUPPLY WILL BE PERMANENT.

This also means that the rich lending class who own the banks and lend to households, businesses and government, will not have any advantage in hoarding money to give them deflation. The bankers, in the current system, have set themselves up so they profit from the deflation that is always caused by the creation of debt bigger than the creation of loan amount.

In deflation those who are owed money or are hoarding money GAIN IN WEALTH AT THE BORROWERS EXPENSE.

When dollars are more plentiful at the time of the loan than subsequently over the time that debt payments are made -- as is the case in deflation -- then creditors get a windfall -- a deflation premium -- at the expense of the borrowers who suffer a deflation penalty that was not part of the original loan contract.

So the short answer to the question is WE HAVE A DEBT-BASED SYSTEM AND NOT A FIAT SYSTEM. WE NEED A NATIONAL FIAT SYSTEM --WHERE THE GOVERNMENT GIVES ITS DECREE (FIAT) FOR MONEY THAT IS NOT CO-CREATED WITH DEBT -- AND THAT GOVERNMENT SHOULD BE LIMITED IN ITS POWER - IN THAT THE MONEY CREATED SHOULD ONLY GO TO THE PEOPLE WITH EQUAL AMOUNTS GOING TO EACH AS A DIVIDEND AND ON A REGULAR BASIS AS NEW MONEY IS NEEDED TO PROVIDE ALL OF THE GOOD THAT ECONOMIC ACTIVITY CAN PROVIDE.

Note: This is not to say that lending and borrowing should be done away with -- but that banking and lending should be forever separated from money creation. Money should be permanent and it should be added to exclusively through the new-money dividend to the household sector.

[Danny B]

Eastman #4

QUESTION:

Why do economists say we are not recession but in a recovery while 92 million remain out of work; the Middle Class is disappearing; students are crushed from the start with debt and the top 0.1% control 90% of the wealth, etc. ?

ANSWER:

Economists are hired to defend the asymmetrical system that gives banks the power to create "loan of X dollars for you" only with a co-created debt obligation of "X dollars plus more dollars owed to me" arrangement. They have to hide the fact that in the economy the borrowers lose when they must incur debt of more than X in order to get money for use equal to X. When the entire money supply comes from borrowers making that kind of deal -- then the economy is biased towards deflation -- and there has to be defaults and bankruptcies and depressions. SO HOW DO ECONOMISTS HIDE THIS AND SAY 'EVERYTHING IS FINE, WE ARE IN RECOVERY AND NOT RECESSION."?

They hide the real game of theft that is going on -- by ignoring the fact that wealth is transferring from the borrowers to the lenders who supply money to the economy always where loans are co-created with even bigger debts. They ignore the transfer of wealth from the 90 percent to the 1 percent (roughly speaking) and only look at what happens to total production -- the Gross Domestic Product.

Rather than notice that less pie goes to the 90 percent and more to the 1% - the other 9% more or less getting what they bargained for -- rather than notice that transfer of ownership of the pie -- they focus only on whether the whole pie has grown or not.

If the GDP (priced output of goods and services) shrinks for two quarters in a row that is the economists definition of recession -- but it is not the "official" last word on the subject. There is a private organization of self-appointed experts accountable to no one that can veto the "two negative quarters" definition when they want to as they alone see fit.

This private banker serving "official" decider on the recession question is called the National Bureau of Economic Research -- and it exists to make sure that if two quarters of falling GDP is politically iinconvenientfor the top bankers' political agenda -- getting their preferred politician elected -- then they can declare that there is no recession, forgetting the fact that the pie shrunk two quarters in a row. AND THAT IS WHY THE WHOLE CONCEPT OF RECESSIONS IS DISINFORMATION AND WORTHLESS FOR MEASUREING THE WELL-BEING OF THE ECONOMY AND THE PEOPLE.

And guess what -- economists talk about recession -- because then they don't have to talk about depression, about this deflationary depression that kills the middle class, makes everyone poor, denies us all the good times and improving prospects we could be enjoying. For the fact is that we are in depression all the time and have been for a very long time -- and it is completely ignored. All we hear about is that we are in recovery and that there may be "fears of another recession " that we should all be happy that we are not in one yet.

QUESTION:

Do Americans really need a private Central Bank to issue our debt-based currency and charge us interest for the privilege?

ANSWER:

Actually the central bank does not create money -- it allows the member banks to do that. When the central bank wants more money it buys bonds and other securities -- like securitized mortgages -- from financial institutions and rich people around the world. And when it wants more bank loan deposits created -- it lowers the rate at which it lends overnight money to banks that get too near lending beyond what their amount of reserves on deposit permits. The lower that central bank lending rate, called the "discount rate," (bonds are put up as collateral to secure the loan at the "discounted value" of the bonds and that discounted value will be the amount of the loan -- usually.)

NOW TO ANSWER THE QUESTION -- NO THE BANKING SYSTEM NEED NOT BE WHERE NEW MONEY IS CREATED . IT ESPECIALLY SHOULD NOT BE WHERE MONEY IS CO-CREATED WITH NEW DEBT LARGER THAN THE MONEY PROVIDED. MONEY SHOULD BE PROVIDED BY FIAT -- WITH NO DEBT OBLIGATION CREATED WHEN IT COMES INTO EXISTENCE. ALL NEW MONEY MONEY SHOULD BE DISTRIBUTED IN EQUAL AMOUNTS TO EVERYONE SO THAT THE PEOPLE -- AS CONSUMERS, AS HOUSEHOLDS -- CAN BE THE FIRST TO SPEND THE NEW MONEY INTO EXISTENCE. IF WE HAD THIS SYSTEM THEN DEPRESSIONS AND INCREASING INDEBTEDNESS -- THE PAYING OF MORE AND MORE OF OUR EARNINGS TO THE PRIVATE INTERESTS WHO LEND US A MONEY SUPPLY AT INTEREST -- WOULD COME TO AN END.

QUESTION:

What right do the TooBigToFail banks have to exploit the system, steal trillions, and get away without prosecution?

ANSWER:

By the right that you elected the Congress that wrote the rules that generate that system. It's your fault for leaving the politics of money to the bankers and their hired minions operating in the political sphere.

Q: Why are the Too Bigs allowed to trade derivatives, risking trillions in losses? And why are bank depositors liable for these losses via Bail-ins when the gambling bets turn sour?
Answer: In November of 2000 there was a presidential election in which the outcome depended on one state, Florida. A crisis was intentionally started when a Jewish precinct insisted that the ballots were bad in that they thought they were voting for Al Gore for president when actually the box they checked was for candidate Patrick Buchanan. This controversy started the great vote counting fiasco - calls for recount -- controversies of whether to count ballots where the hole in the ballot was not completely punched out -- where there was a "hanging chad" -- and so there was a national crisis that filled up the news -- and while that crisis was filling up the news and fully occupying the public's attention, CONGRESS COMPLETELY DEREGULATED THE DERIVATIVES INDUSTRY -- SO THAT ANYTHING GOES IN WHAT DERIVATIVE BETS CAN BE MADE AND WHO GETS TO OWN THEM.

An unregulated derivatives market means that the financial sector speculators no longer have to look at business ventures to see whether the business has a good product for which there is demand and cheap supply of inputs to make it so that profit can be made -- instead they can lend anywhere -- make very bad investments -- but cover the investment -- hedge their bets -- with just the right derivatives purchase -- this means that the financial markets are no longer in the business of looking for the best entrepreneurs to best satisfy the consumer at the best price -to invest in -- but are merely playing a game where all risks are hedged -- in fact one makes bad investments in order to create the balance of risk a particular formula calls for. DERIVATIVES SHOULD NOT BE ALLOWED.

People with money should invest their money in the economy -- and have to live with the consequences of their allocation -- they have to suffer profit or loss on the basis of the quality of their decisions -- which they are no longer doing -- and so the real economies of all the nations go to pieces -- and only the big monopolies which produce where labor costs are lowest have a chance to survive, and they get the money. It's all a rigged game -- and the de-regulation of derivatives makes it possible.

Also manipulation of conditions allows big finance to destory their enemies who are exposed and vulnerable in the derivatives positions they have been tricked into taking.

QUESTION:

Why have recent QE trillions from the FED gone to the biggest banks, while the economy and citizens are struggling to survive in this never-ending recession?

ANSWER:

We are in this never ending DEPRESSION because of DEFLATION and the DEFLATION COMES FROM HAVING THE ENTIRE MONEY SUPPLY BORROWED -- FROM THE PROBLEM OF MONEY CO-CREATED WITH ANTI-MONEY AS ABOVE WITH THE ANTI-MONEY CREATED (THE OBLIGATION TO PAY PRINCIPAL PLUS INTEREST) BEING GREATER THAN THE MONEY THAT IS CREATED (THE LOAN AMOUNTS). The big banks gain from deflation. Deflation makes their cash balances worth more and their bonds worth more. It means common people have to work harder and longer to pay the debt they incurred before the deflation that has since taken place. It means there is less money in the economy -- and the bankers are in the business of lending that money. They profit from deflation. THE NAME OF THE SYSTEM THAT IS KILLING "CITIZENS" IS THE BANK-OF-ENGLAND/ROTHSCHILD SYSTEM. It is debt slavery. It gives us constant deflation and deflationary depression among the people who depend on borrowed money -- while it prospers the creditors with deflation windfall when all the money they are owed, thanks to deflation, can buy foreclosed factories cheaper, foreclosed houses cheaper (to become slum lord rental properties etc.), can buy privatized public lands and utilities cheaper. (In Greece entire islands have been turned over to the nation's creditors.
Dick Eastman November 30 2015

[Danny B]

Stock market rolling over.

Dick Eastman is correct, in the main. Picture the money system as a large tank. The tank has millions of pin-holes in it that represent the wages, bonuses and overhead of the financial industry. There is a constant stream of borrowers arriving with a cup of money to keep the tank full. Should their numbers or repayments slow down, some of the pin-holes will run dry. If this threatens to happen, the FED comes along and tops off the tank with free FED money that doesn't carry an interest burden. Remember, the interest burden has to come from somewhere and, it is deflationary.
Senator Inhofe reported that the banks did not repay the TARP "loans". That was the whole point. The FED spewed out free money to offset the deflationary effect of diminished borrowing. The FED topped off the tank.

The FED buys GOV bonds which gives money to GOV. 51% of Americans receive a check from GOV. This helps to infuse more new money into the economy. BUT, this money carries a debt burden back to the FED. This infusion of money, free and other wise just isn't enough. GOV builds $ trillion dollar planes just to keep money rolling into the economy. Previously, GOV didn't care if the planes could fly or not. Just spend the money and don't worry.
This hasn’t been enough. 50% of corporate bonds are rated junk. In spite of all the cash infusions, the markets are turning down.
"What we’re looking at is the percent of stocks in our own Gavekal Capital International Developed market Americas Index that are at least 10% off of their 200-day high. A stunning 55% of DM Americas stocks are at least 10% from their 200-day high while the DM Americas Index is hovering just below its all time high. More interesting than the absolute number of stocks trading lower than 10% from their high (blue line) is the quite significant and growing divergence from the index level "
This Chart is Too Ugly for Comfort | Gavekal Capital Blog
What about emerging markets?
"Conversely, in emerging markets, around 70% of all stocks are still down more than 20% from their 200-day highs, 40-50% are down more than 20% from their 100-day highs, and 10-20% are down more than 20% from their 50-day highs."
70% of EM Stocks are Still Down More Than 20% from 200-Day Highs | Gavekal Capital Blog

Some of the pin holes are threatening to run dry and banks are cutting back on overhead. "And most important of all, why are the largest banks in the west laying off thousands of workers?"
The Collapsing Global Trade - Gold Forecast - Silver Forecast - ETF Trading Strategies - ETF Trading Newsletter
China has recently noticed that $ 6 trillion is missing from the economy. Trillions of Dollars Missing from China?s Economy: Michael Pettis | Economy Watch
China has a few problems;
12/01 Five China bond deadlines to watch – Bloomberg
12/01 Chinese auto sales crash, inventories soar in November – Zero Hedge
Puerto Rico will default, 12/01 Moment of truth as Puerto Rico faces crucial debt payment – Reuters
Brazil is in for tough times, 12/01 Withering demand leaves Brazil GDP in 'obituary' condition – Bloomberg
The Central Banks tied to reflate the economy with debt money. This didn't work because we are debt saturated and we lost our job. There just isn't enough money in circulation. The PTB entertain the idea of helicopter money. The lower loop is never going to reflate on it's own with just wages.
ZIRP wipes out everyone who depends on interest income. BUT, corporate America has gotten hooked on ZIRP. If 50% of corporate bonds are junk rated, just imagine how they will do when interest rates rise.
Somebody is going to get gored AND the bull has 2 horns. He will get both sides eventually.

EDIT Armstrong states this conundrum very clearly; "The central banks are simply trapped. They have bought in bonds under the theory that this will stimulate the economy by injecting cash. But there are several problems with this entire concept. This is an elitist view to say the least for the money injected does not stimulate the economy for it never reaches the consumer. This attempt to stimulate by increasing the money supply assumes that it does not matter who has the money. If we are looking only at the institutional level, then this will not contribute to DEMAND inflation only ASSET inflation by causing share markets to rise in proportion to the decline in currency value."
ECB & The Failed QE Stimulus | Armstrong Economics
It has happened before and, it is that time again. FOURTH TURNING ? OUR RENDEZVOUS WITH DESTINY « The Burning Platform

[Danny B]

A good screwjob for Greece

Varoufakis split with Tsipris over the question of austerity. Tsipris has show his true colors and is in the process of giving the Greeks a good screw-job to help the banks. He very well may end up strung up on a lamp post. THAT is why the European Union wants to build a European army. They will send in soldiers who are other than Greeks to prop up rotten leaders.
Rogue State Greece

The German have given the Greek tax authorities the names of 10,000 Greeks that are believed to be tax scofflaws. The GOV tax authorities are going to squeeze out every penny they can find.
Greeks Told To Declare Cash "Under The Mattress", Jewelry And Precious Stones | Zero Hedge
Here in America, the FED claims that you owe them tax even if you barter.