“I sincerely believe… that banking establishments are more dangerous than standing armies.”–U.S. President Thomas Jefferson; Letter to John Taylor, May 1816
America is dying. It is self-destructing and bringing the rest of the world down with it.Often referred to as a sub-prime mortgage collapse, this obfuscates the real reason. By associating tangible useless failed mortgages, at least something ‘real’ can be blamed for the carnage. The banking industry renamed insurance betting guarantees as “credit default swaps” and risky gambling wagers were called “derivatives”. Financial managers and banking executives were selling the ultimate con to the entire world, akin to the snake-oil salesmen from the 18th century but this time in suits and ties. And by October 2008, it was a quadrillion-dollar (that’s 1 000 trillion dollar) industry that few could understand. Propped up by false hope, America is now falling like a house of cards.
The Beginning of the End
It all began in the early part of the 20th century. In 1907, J.P. Morgan, a private New York banker, published a rumor that a competing unnamed large bank was about to fail. It was a false charge but customers nonetheless raced to their banks to withdraw their money, in case it was their bank. As they pulled out their funds, the banks lost their cash deposits and were forced to call in their loans. People therefore had to pay back their mortgages to fill the banks with income, going bankrupt in the process. The 1907 panic resulted in a crash that prompted the creation of the Federal Reserve, a private banking cartel with the veneer of an independent government organization. Effectively, it was a coup by elite bankers in order to control the industry.
Great Exchange! Senator Bernie Sanders can’t contain himself during today’s (03/03/09) Senate Budget Commitee hearing in Washington. Bad Boy Bernie demands to know who got the 2.2 trillion of dollars in loans from the Fed. Bernanke won’t tell him. He’s also angry that banks that get tax payer funds for nothing, are charging credit card customers 25% interest. Also discusses A.I.G. and who got those credit Defautl swaps. He also demands to know why Bernanke didn’t raise the alarm when the Bush Administration was claiming the economy was sound when it obviously wasn’t.
Video – Sen. Bernie Sanders scolds Helicopter Ben
At the Bail, we hang Federal Reserve criminals with their words.
The reason our financial system has routinely gotten into trouble, with periodic waves of depression like the one we’re battling now, may be due to a flawed perception not just of the roles of banking and credit but of the nature of money itself. In our economic adolescence, we have regarded money as a “thing”—something independent of the relationship it facilitates. But today there is no gold or silver backing our money. Instead, it’s created by banks when they make loans (that includes Federal Reserve Notes or dollar bills, which are created by the Federal Reserve, a privately-owned banking corporation, and lent into the economy). Virtually all money today originates as credit, or debt, which is simply a legal agreement to pay in the future.
by Roger Wiegand Editor of Trader Tracks Newsletter for gold, silver and Energy traders.
I have seen so much outrageous idiotic stuff by politicians the past few years I am thinking I am mind-numbed to both the process and what these lunatics are saying. However, this past week, as we all returned from the Labor Day Holiday, a new and wild waterfall of insanity has appeared. I’m prone to not get super-excited but as I write today, I am beyond hot under the collar. Let’s look at some examples to see where things go next, especially in bond markets.
The American president just returned from his extended monthly vacation (he works part-time) to go politicking on behalf of his socialist compadres flailing at George Bush for his own messes-problems. He’s finally decided to address reality and that he just might have to cut taxes somehow and throw a bone to the Sheeple. Answer-Toss another $50 Billion in the debt fire. Meanwhile, the smarter Dems who hope to be re-elected, are pretending BO does not exist. What is really cool isnot one Dem is running on passage of the new health care plan. How proud are they of this monetary monstrosity?
Jim Puplava talks to James Turk about the central banks dirty tricks to artificially support the dollar and collapse the prices of commodities
recorded on October 17th 2009
PPI = Producer Price Index measures average changes in prices received by domestic producers for their output.
CPI = Consumer Price Index is a measure estimating the average price of consumer goods and services purchased by households.
TOCOM = Tokyo Commodity Exchange regulates trading of futures contracts and option products of all commodities in Japan.
The Tokyo Gold Exchange, the Tokyo Rubber Exchange, and the Tokyo Textile Exchange merged in 1984 to form TOCOM.