11/43. What de Medici's alraedy knew, JP Morgans, Goldman Sachses, Bank Americas & al., still refuse to understand


September 16, 2011

It is time to let the sledgehammer come down and crush those who learn nothing from history even when it shows pointedly what will fail!. We have seen enough - it is time to end this game of the bankers. The result will be by far less destructive than any of the wars these characters are trying to lead us.

Both Edward III and His son Edward IV of UK did the only right thing, they refused to pay the bankers their money from whom they had borrowed it to wage wars. The real blow came during the War of Roses and Edward IV.

The Medici family was connected to most other elite families of the time through marriages convenience, partnerships, or employment, as a result of which the Medici family had a position of centrality in the social network: several families had systematic access to the rest of the elite families only through the Medici, perhaps similar to banking relationships. This has been suggested as a reason for the rise of the Medici family.

Perhaps there was another more direct reason to the raise of the Medicis reaching to the destruction of the Templars bankisng empire in a conspiracy between King Philip IV "the Fair" of France, who owed the Templars a lot of money, which he didn't really feel like repaying and the Pope Clement V. They dismantled the Templar banking system through brutal simultaneous murdering of every Templar they could locate in Europe.

Ending the Templars' Banking Empire did not mean the "End of the World" like our current Banking Empires claim.

Members of the Medici family rose to some prominence in the early 14th century in the wool trade, especially with France and Spain. Despite the presence of some Medici in the city's government institutions, they were still far less notable than other outstanding families such as the Albizzi or the Strozzi. One Salvestro de' Medici was speaker of the waollmakers guild during the Ciompi revolt, and one Antonio was exiled from Florence in 1396. The involvement in another plot in 1400 caused all branches of the family to be banned from Florentine politics for twenty years, with the exception of two: from one of the latter, that of Averardo de' Medici, originated the Medici dynasty.

Lorenzo de' Medici (1449–1492), called "the Magnificent", was more capable of leading and ruling a city; however, he neglected the family banking business, leading to its ultimate ruin in 1494.

To ensure the continuance of his family's success, Lorenzo planned his children's future careers for them. He groomed the headstrong Piero II to follow as his successor in civil leadership; Giovanni (future Pope Leo X) was placed in the church at an early age; and his daughter Maddalena was provided with a sumptuous dowry when she made the politically advantageous to a son of Pope Innocent VIII.

The Medici Bank was one of the most prosperous and most respected institutions in Europe. There are some estimates that the Medici family were the wealthiest family in Europe for a period of time. From this base, they acquired political power initially in Florence and later in wider Italy and Europe. A notable contribution to the profession of accounting was the improvement of the general ledger system through the development of the double-entry bookkeeping system for tracking credits and debits.

Today we have the Rothschilds expanded family that we can be sure is connected also to de Medicis one way or the other.

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11/42. EU needs a real ECB - not the ECB controlled by an outside Monetary System

September 12, 2011

The discussion in the video at the end is the clearest so far we have found. Michael Hudson articulates well what is wrong and what must be done in the EU to get the Union functional again. His thinking echoes the same shown below:

"The problem with today’s (banking) system is that the world is run by monetary systems, not by national credit systems. . . . You don’t want a monetary system to run the world. You want sovereign nation-states to have their own credit systems, which is the system of their currency. . . . The possibility of productive, non-inflationary credit creation by the state, firmly stated in the US Constitution, but was (deliberately?) excluded by Maastricht Treaty of the European Union as a method of determining economic and financial policy."

Monetary system means that private banks provide all the money to the governments against interest and fees. The loan repayments, interest and fees are paid by the taxpayers as part of the taxes. Contrary to common belief the interest and arbitrary loan "orignating" fees are the real cause for all inflation. Interest and fees paid to private banks not to make any products, deliver any services nor to grow food.

Why does this lead to inflation? As example Greece pays now172% interest for a 3-year loan ( this mornings FT). Think yourself as Greece - could you afford this interest rate - the Greece tax payers have no choice as they cannot print additional money used in Greecs. They simply need to borrow more from somewhere and with monetary system they must borrow it from the same private banks that are charging the now 172% iinterest. Interesting to see long long it takes for the Greece people to take up arms, borrow the guillotines from France, print their own money and then take care of this problem.

If Greece or as a matter of fact EU are independent entities they control their own money and thus they do not need to borrow from any banks in the world, they just print what they need. Does it make sense to pay interest to own money?

The smaller the interest rate and the fabricated loan fees the smaller the inflation in a country. When money is printed according to the real needs to cover the growth of the nation there will be no inflation at all. Printing less means that the money gets rare and people need to borrow from somewhere to survive and this creates deflation while the money in the pocket becomes increasingly more valuable.

Any monetary system contrary to credit system leads automatically to deflation! Think the case of Greece and 172% interest payments. If you had to pay 172% interest for all your loans tomorrow, would you have any money left to live? As everybody would be treated the same a severe deflation would be the only possible outcome.

The monetary system has evolved to a financial scam and ponzi scheme with major Banking Empires leading the charge. This system should never be accepted by any nation that wants to maintain Her independence and sovereignty! In a sovereign credit system the sovereign is actually in control of the inflation even when it has just expanded the credit / money base to get out from the economic slump simply. The potential inflation is reined in simply by increasing the interest rates it the sovereign charges from the all now obedient banks and Banking Empires.

In our current monetary system the Banking Empires control the interest rate instead of the governments like people are led to believe. In this over 99% of the US and world population believes that the Federal Reserve Bank of the USA is a government bank - it is PRIVATE BANK owned by PRIVATE BANKS.

As private enterprises the Banking Empires are always maximizing their profits regardless what happens to the people and the Nations. This is the only reason we have regular recessions every 4 to 5 years. The banks use here two weapons: 1) the interest rate and 2) the bankruptcies connected to fire sales of loans backed by failing loans. These proprieties are then transferred to direct or indirect ownership of the banks.

This has been taken now even further by synchronizing the whole western world and with that multiplying the profits of these BANKING GANGSTERS.

 

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11/41. The Banking Empires and WMD!

August 29, 2011

Our politicians know the major banks are abusing their right to lend money to public but have closed their eyes. The current business and trading practices of the major banks border already criminal activity.

The ancients had concluded long time ago that interest rate should never exceed 1% per month and loans had to be forgiven after 7 years to maintain peace and harmony in a society.

 

The Beginning...

The smartest have always seen compounding interest as an opportunity and base for the "Private Banking" system. It was designed to go around the religions thinking (see below) and as such they border the shady world of major and even capital crimes. Without restrictions the banking business can multiply the wealth of the banking elite at phenomenal rate by sucking the life comforts away from the peoples at large.

What is this power? Assume a banker had lend a penny of US equivalent at 2% compounding annual interest at birth of the Christ. Guess what someone owes today to this bank (at the beginning of this year)?

The debt to the bank is now US$ 1,933,504,741,638,590 or US$ 1,934 trillion. That is almost 30 times the combined GDP of the World ( US$ 60 trillion). The us US GDP is much less than 1/100 of this. If the interest would have grown at 1% per month, maximum allowed by the ancient Council of Nicea in 325 AD the debt would be now an incomprehensible US$ 1.9 followed by 102 zeros. The world does not have this kind of money and will never have while as we see the compounding interest can create it with passing years.

Above is to illustrate the impact of compounding interest and time. This cannot be seen clearly enough from short term lending but the Banks love it. To add to the insult the Banks have added items like loan originating and other fees to make it all even more lucrative for them. We must be aware of this all.

We hear from right wing politicians and Tea Party demanding a fixed debt ceiling for the government. That is waste of time and a fallacy at best but easy to sell to ignorant and increasingly less educated masses. They understand well that when their own valet is empty and credit cards maxed out they cannot buy anything more, period. They don't understand that our government (=tax payers) own the dollar and whenever necessary we can always print more of them. Printing too much will have consequences as explained in this report. Ask yourself how did we pay the wars in Iraq and Afghanistan? There in little to do if you are still unaware that we printed this money because we needed it! Nobody questioned the wisdom of doing so regardless that this printing would exceed our normal need for money and would soon also top our self created nonsense debt ceiling.

The first modern twist: All major Banks can borrow directly from Central Banks receiving low or practically interest free money against suitable security e.g. liens to these new loans. With fractional money system and the borrowing ability these Banks can lend out up to 10-30 times more money than they have own cash. These loans are risky assets for the Central Bank. And if something goes wrong the last resort the tax payers are in hook and end up suffering loss while having no say at all. This process gives the Banks license to create money at will from thin air - the real cause for our current global financial crisis!

In ancient times the lender had to have all the cash / goods at hand to loan anything. The lender used his own money and was decided if the borrower was trustworthy for the loan. If the borrower failed to pay back at the end of the 7th year his/her responsibility expired as it was the "Lords Law" and it could not be contested by mortals.

The second modern twist: All the interest payments cause inflation. This amount has to be printed under whatever excuse the government or the Central Bank can figure out. The borrower must pay the due interest to the Bank in due time in cash and the only way is to take it out from the money that is already in circulation of the society. After that this money belongs to Bank and is no more available for others to pay wages, salaries, raw materials nor anything else. However, the money will always come back to the society in form of a new Bank loan that earns even more interest.

If the interest rates would be zero the inflation could be even zero depending still on the decisions by the government regarding the amount of money it has issued. The society must have a forever slightly expanding money supply to cover the needs of the growing population. Every Nation has this same problem to solve. If they issue too much money the value of the currency goes down and vice versa.

The third modern twist: We recapitalized the major Banks immediately at the beginning of this banking crisis using tax payer money. We have repeated this several times both officially like in QE2 and hidden ways costing tax payers already close to 10 trillions of dollars in subsidies and value of therir savings. This morning (Aug 29, 2011) FT told that the new IMF Chief Ms Trichet is demanding that we now must recapitalize the Banks again. THIS IS INSANE! If the banks fail, let them! The tax payers must not pay a penny more to recapitalize these banking criminals, instead these criminals should be brought to justice for their crimes against the society at large.

 

Albert Einstein had an opinion ...

Albert Einstein called the compounding interest to the eighth wonder of the World. Most people believe they understand all the implications of this - but they don't! Perhaps Einstein wanted to warn us from the sinister side of this all.

To summarize it all here is how one of the reserachers (Daniel Estulin) put it:

"The problem with today’s (banking) system is that the world is run by monetary systems, not by national credit systems. . . . You don’t want a monetary system to run the world. You want sovereign nation-states to have their own credit systems, which is the system of their currency. . . . The possibility of productive, non-inflationary credit creation by the state, firmly stated in the US Constitution, but was (deliberately?) excluded by Maastricht Treaty of the European Union as a method of determining economic and financial policy."

 

The Ancients thought it through...

The First Council of Nicaea, in 325 AD, forbade clergy from engaging in usury. The clergy accumulated exess money as the wealthy gave generously to secure their favorable prayers to be sure that the gatekeeper to heavens would recognized them at arrival and would open the door to the heavens instead the one leading down to the underworld.

At the time, usury was interest of any kind, but later canon changed it's opinion and forbade the clergy to lend money on interest above 1 percent per month (12.7% APR). Ecumenical councils applied this regulation then to the laity. Surprising similarities exist between all the main religions.

These old ways were simple and they maintained balance and harmony in the Communities and Nations.

People at large should have paid attention to the above as without proper guidelines to follow the Bankers simply pushed the insecure goverments to giving the Banks all they wanted. With most all banking regulations favoring banks people have suffered tremendously in times like the great depression of 1929 and the still ongoing financial crisis started in 2008. The abusive banking rules and regulations must be changed but with the lobbying power of the banks this work requires new breed of representatives to the US House and Senate.

At the time when Bible and Torah were written the clergy understood the hugely destructive power of the compounding interest very well and as we have learned it lately it has all the features of a perfect financial WMD. This specific WMD appears to have even more destructive power than a few dozens of nuclear weapons detonated in major cities around the globe.

Bible, Torah and all related writings tell:

"At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD's release" (Deuteronomy 15:1-2).

"...in the seventh year you shall let [your Hebrew slave] go free from you. And when you send him away free from you, you shall not let him go away empty-handed; but you shall supply him liberally from your flock..." (Deuteronomy 15:12-14).

Unfortunately the above was never used as guideline when our governments were darfting the banking regualations to laws.

 

History is soon ready to repeat itself...

We all must understand from where the extra money for all interest payments come from. Don't accept the Tea Party demands that the debt ceiling of the US government is a must and that we also must start paying the government debt to zero. This experiment was done already once during the early years of the USA followed soon by a huge financial disaster. There is no reason to do this mistake again.

The government must simply cut all permanent links to the private Banks. They are no different than any of the other businesses and we do not support them either. Whenever links are formed they must be executed by rules dictated solely by the government and not by any negotiations with the receiving party.

The US government (=tax payers) own the dollar like other countries own their named currencies.

If any of these governments need more of their own currency they must print it. Printing more than the society growth rate and the combined private interest payments require will create inflation while printing less brings in deflation. On the global scale inflation lowers the value of the currency while deflation increases it.

In case money supply is kept constant the money any new interest payments does not exist. All money is already earmarked to existing uses like wages, salaries, food, rents, fuels, etc,. The new money must be taken from the existing system using "force". Nobody gives their money without resistance and we get forward like in the old game of musical chairs where someone will always fail to find a chair when the music stops and one more chair is removed. Those who fail to pay their interest payments will lose ownership to everything that is collateral to their failing loan. Whatever is collateral for the failing loan will be put to a fire sale auction and exchanged to cash from the highest bidder.

Q: Who has the money to buy? A: In case of a major failed business only those with a large credit line in a major bank!

If the bankruptcies become a river the end result from the above is depicted below two centuries ago in France when Louis XVI lost his head. His grandfather had a Motto: "the one with most money will win the war". Perhaps our Banks are getting their latest ideas of global domination directly from the Sun King of France himself.

France

 

Below is current example the monetary atrocities against Greece where the foreign Banks demand today over 45% interest for two year loans. If this trend continues it is advisable that these foreign Bankers would avoid the Greece territory for a generation to come.

Greec2aBonds

 

Here we have the private debt of the US citizens as percentage of the US GDP that is owned to private banks as mortgages and credit card / consumer debts.

hhdebt

We elected the average mortgage rate in the USA to be around 7% while the average interest on credit card debt is about 12% with maximum we have seen in mailings at a whopping 29.9% .

Using these graphs the combined mortgage debt in the USA is today about 70% of the GDP or US$ 14.5 trillion or 10.2 trillion. This is about the same amount than the Gross income of the people in the USA. The annual interest bill at 7% is now US$ 710 billion. The credit card debt is about 22% of the GDP or US$ 3.2 trillion with annual interest payments of US$ 383 billion. The total interest payments of the citizens for their mortgages and consumer debt is thus about US$ 1.1 trillion. When you add to that the loan repayments that are sizeable and the average family size we recognize that something has gone badly wrong in the USA.

People are now more than infuriated as they have learned that Banks have created these loans from thin air using - as it turned out - tax payer money from FED at close to zero interest rate. One has to wonder how long it takes for people to revolt...

 

The evolution of the global banking empires - we speculate it this way...

Banking was flourishing already in ancient Sumeria and Egypt. Where grain, goods, gold, silver, cattle and everything else were exchanged in open markets through government controlled relative weighing system. Item A weighing x units would buy y units of itm B. The government allowed money lending only at fixed interest rate that it had determined. These ancient lands had no inflation at all.

The see going Phoenicians originated from Northern Levant, area on Mediterranean eastern coast extending into Syria, Lebanon, and perhaps some Jordan and Palestine. They traded everywhere around the Mediterranean coast evn past Gibraltar to UK. We know very little about them thaks to Romans and their to the details perfect work when they destroyed this culture and everything related to it. The Phoenicians had a highly advanced civilization with maps and ability to keep track of the ships position from the Sun and the stars, math and record keeping as was necessary to all trading. While at sea they had time to read and write but practically nothing has been found beyond the ruins around the Mediterranean coast.

We know that some of the Carthage residents of Phoenicians / Palestinians /Jews escaped the Roman destructive power when everything was destroyed. Still their decendants surfaced centuries later in Venice and elsewhere in Northern Italy where they intermarried with local nobility and formed powerful Banking enterprises.

The crusades expanded the power of the forming banking with Templars. Was the need to have these crusades stemming from protecting of the Christianity or knowledge that all gold from the glory days of Jerusalem was still there waiting someone knowing where to look to pick it up.

Anyhow after the early crusades Templars became suddenly a powerful international bankers with Banking Empire lasting the next 200 years until 1314 AD when they were outsamrted and trapped by the King of France. At height of their power Templars owned already about 900 castles around the Europe. Their number appears to have been too small compared to their wealth and while their fighting skills were respected as superior compared to many their Banking Sytem became an attractive candidate for an unfriedly "takeover".

In 1313 King Philip IV "the Fair" of France who owed Templars huge amount of money decided that he was powerful enough and would not pay his debts. He hatched a scheme with Pope Clement V who then summoned Jacques de Molay, the Grand Master of Templars, to Paris for "negotiations" that was a trap and he was arrested. After extracting everything worth knowing from him and the Templars' Banking Empire, Jacques de Molay was executed a year later. This hostile takeover of the Templars "business" was well planned as simultaneously with de Molay's arrivat to the "negitations" the King's assassins were already present in every Templar castle around the Europe. At this moment they executed their orders in a surprise attack and within two days killed or arrested around 15,000 Templars and their associates.

The Templars Banking Empire was now owned by King Philip IV of France and to some extent the Catholic Church. Insignificant numbers of Templars were able to escape and theu found refuge places in the periphery of Europe.

About 500 years later the next global banking challenge surfaced in 1815 after the battle of Waterloo fought between Napoleon and Wellington, France and UK. Baron Rothscield was financing Wellington's army using his own money enforced with money from several European sovereigns who have given their treasuries for him to keep safe from Napoleon's hands. As someone spread false rumors on who had won this decisive battle deciding the fate of UK. With these rumours the UK Aristocracy saw that the end had come, panicked and sold all their holsdings on the UK stock markets following the example of Baron Rothschild himself. They just did not know that Rothschild was secretly bying everything that was sold through intermediaries offering a ridigulously low prices. With this shady operation Rotschield cornered the UK stock markets and became the new largest owner for the UK industries and he asked and received also the keys to the Bank of England. The global Rothschield Banking Empire was born overnight together with several others owned now by the European Royalty and Aristocracy.

The move happened in 1913 when after about 100 years of lobbying of the US Congress the US Federal Reserve Bank or FED was established under ownership of 9 private "US" banks. In reality that meant US registered subsidiaries of European banking Empires and their US banking allies that then together made these nine private banks.

Already before the peace treaty of Versailles was signed ending the WW I Rothschield knew that Germany would start another war as quickly as it had recovered and rebuilt it's lost military might. The war reprisals imposed on Germany had only one purpose to destroy the Germany completely so that it would not have financial means to raise again. Rothschields knew that this would not work but that was the decision of the allied forces. The worry with the coming war was that this time Germany might actually conquer England and with that take over the gold reserves of the UK and the banking empires.

Both British pound and dollar were tied to gold standard. The failing Empire of UK was weak and the USA had only strengthened during the WW I by selling military hardware to all warring parties from Europe to Asia.

The Rothschields led Banking Empires controlled now both the Bank of England and the US Federal Reserve Bank or FED. To secure ownership to the gold in the vaults of the Bank of England they needed a solid excuse why the gold from England had to be transferred to the USA. It had to acceptable to the people of UK or they would have a revolution in their hands. Then the solution came almost naturally.

Rebuilding of UK after the WW I required huge sums of money. After a while the USA started offering high interest rate to UK depositors and that started attracting gold backed pounds to the USA in huge quantities. The UK responded with even higher rates and this went back and forth until UK had no ability to increase the rates any more. The increasing rates had dried money from the economy and both countries ended into a deep recession dragging the rest of the world with them - known today as the 1929 Great Depression. Now the USA started demanding gold in exchange for the Pound deposits and with that it recived gold from the Bank of England. The plan had worked perfectly and money was proven to be even more efficient as WMD than any of the conventional weapons.

Within a few years from WW I every country that had their currency tied to gold disconnected it and since then the world has relied on printed paper money as valid currencies. This era is coming to the end within next decade if not ealier - we may go back to gold standard, a basket of majopr currencies or a basket of commodities.

With success the US was now the new ruler of the world and wanted and got the dollar accepted as the only reserve currency for the world. This looked innocent enough for the politicians to accept but it was far from being innocent. What happened has eluded the press and publicity for more than half a century and still the people at large do not get what this all was about. The press has never dared to talk about the unfair financial benefits that the USA has enjoyed ever since the dollar became th reserve currency. This veil has finally started opening with the phenomenal growth of China and it's refusal to accept the status quo as the new major creditor of the world.

 

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11/39. Only monetizing EU Debt can stop the Wolrd Company planned by Bilderbergs
August 20, 2011

The power base of the private global banking system

"The problem with today’s system is that the world is run by monetary systems, not by national credit systems. . . . You don’t want a monetary system to run the world. You want sovereign nation-states to have their own credit systems, which is the system of their currency. . . . The possibility of productive, non-inflationary credit creation by the state, firmly stated in the US Constitution, but was (deliberately?) excluded by Maastricht Treaty of the European Union as a method of determining economic and financial policy." - Estulin

"With this implemented the World Company acquires assets by preventing governments from issuing their own currencies and credit. Money is created instead by banks as loans at interest. The debts inexorably grow, since more money is always owed back than was created in the original loans. If currencies are not allowed to expand to meet increased costs and growth, the inevitable result is a wave of bankruptcies, foreclosures, and sales of assets at firesale prices, to whom? To the World Company.” - Daniel Estulin

 

US dollar is world's reserve currency

All us debts to foreign countries require repayments in US dollars resulting to forever increasing demand for US dollars. This means a competitive edge for all US companies against their competition outside the US borders - no duties needed.

China has contributed hugely to understanding this issue by refusing to bend under US pressure and accelerate revaluation of their currency.

The people behind the Bilderberg Group, the "Banksters", have owned the US dollar already since 1913 when the US Congress granted FED the operating license. This agreement was signed after about one century of continuous lobbying (and bribing) of the Congress. FED is and remains a private for profit corporation owned by 8 private US incorporated banks (the 9th of them, the Lehman Brothers was ousted from this group in 2008). We have an invisible problem as the majority of these US banks are owned by foreign, mainly European banks. Toady FED returns essentially all of it's profits to the US Treasury after nominal payments to shareholders and all the upkeep of the 12 of it's US branches.

NY FED is the most important of the FED's branches and has about 10,000 tons foreign owned gold bars stored underground in it's vaults. JP Morgan Chase, Citigroup, Bank of America and Wells Fargo together own together 52.86% of NY FED.

The USA has not been without trouble. In in 1933 a coup attempt aimed to make the USA a fascist nation like Germany and Italy by people associated to these above banks and their largest US clients. The coup failed only because the commanding army general initially backing the effort with a half a million army of war veterans switched the side at last minute and revealed the plan to the newly elected President Franklin D Roosevelt. This was a clear treason against the Nation but the power of these perpetrators was so immense that no legal case was raised against them and the National Archives contain only a few related papers with blackened names, proving only that the coup attempt was tried but nothing of the perpetrators.

 

Derivatives

According to BIS the global derivatives "casino" is today about US$ 600 trillion (10 times the combined global GDP)

According to the Office of the Comptroller of the Currency, J.P. Morgan Chase (JPM), Bank of America Corp. (BAC), Citibank and Goldman Sachs hold ownership to a little over US$ 200 trillion of these assets. The rest is essentially 100% in the hands of various global banks. These derivative positions of the above four banks tie up about US$ 6 trillion of their cash or cash equivalents. Was it a coincidence as it is the same amount the American tax payer lost in 2008 from their pension funds?

 

What EU must do to survive?

After their last elections Finland threw a brick into the EU rescue package to Greece by demanding loan guarantees. First all others in EU agreed, with some starting negotiations with Greece for the same, but then suddenly they all disagreed. Germany then threw the second brick to all bail out deals indicating that it suspects the legality of the ECB actions for issuing Eurobonds and paying off some Eurozone country debts. This action is not acceptable as per the original EU agreeent.

In 1790, (FT 8/10/11): the US Treasury secretary, Alexander Hamilton, proposed a radical bill called the “Report on Public Credit”. The Federal government would assume all debts owed by the then 13 states, financed with new US government bonds. Thomas Jefferson who later became the 3rd president of the USA argued that some states should not be forced to subsidize their more profligate neighbors. Hamilton and Jefferson eventually cut a deal and the bill only was passed. Confidence in the US returned, the American economy expanded and the dollar went on to become the global reserve currency.

To get rid of the "Banksters" and to survive EU must do the same as Hamilton did and monetize most or even all of the sovereign debts the central banks owe to private international banks by paying off these debts using fixed discounted rate of 10% and the original repayment schedule. The example below illustrates the outcome in case of a 10 year loan of US$ 10,000 at any interest rate with two installments paid. The criminality leading to the market crash of 2008 warrants the use of at least 10% discount factor - if not even much higher:

  1. With the agreed loan the borrower had to make 10 payments and using now 10% interest that would have produced a sum of US$ 16,275.
  2. To get loan principal back the lender needs $10,000-$3255 (two repayments in using 10% interest)= $6,745 dollars at zero interest rate. ECB will pay off this missing part using discounted cash flow method reducing it further by the two calculated installments at 10%.
  3. The additional cash payment to the lender will be thus US$ 3,921 (discounted cash flow minus $3,255).

The lender has no basis to complain as the cash it receives (US$ 3,921 + US$ 3,255) will buy considerably more now than the original US$ 10,000 would have bought in 2008. Being all cash it also helps the balance sheet of the lenders. This action treats the "banksters" exactly as they treated the borrowers. The amount of money in circulation actually gets reduced over time if the 10% is more than the interest on average debt. The borrowers, means all tax payers, will benefit as the interest payments from the gorvernments will be reduced.

 

Alternatives

The tax payers of the world ar more than angry today after losing half of their saving because the most recent criminal activities of the private banks and banking empires when they knowingly securitized worthless US mortgages and sold them to the global community. When it was essentially done, they created the market crash of 2008 by shorting all stock markets around the globe in an unified and simultaneous effort on September 15th.

President Obama put this bluntly when speaking to Wall Street: "I am the only standing between you and the pitchforks"

Below picture shows what happened in France to Louis XVI. Interesting also as his grandfather had a Motto: "the one with most money will win the war". Perhaps the "Banksters" are getting their grand ideas from the Sun King of France himself.

France

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11/38. The Financial war against the Bilderberg Empire has Started
August 19, 2011

Daniel Estulin, noted expert on the Bilderbergers, describes that secretive globalist group as “a medium of bringing together financial institutions which are the world’s most powerful and most predatory financial interests.” Writing in June 2011, he said:

Bilderberg isn’t a secret society. . . . It’s a meeting of people who represent a certain ideology. . . . Not OWG [One World Government] or NWO [New World Order] as too many people mistakenly believe. Rather, the ideology is of a ONE WORLD COMPANY LIMITED.

It seems the Bilderbergers are less interested in governing the world than in owning the world. The “world company” was a term first used at a Bilderberger meeting in Canada in 1968 by George Ball, U.S. Undersecretary of State for Economic Affairs and a managing director of banking giants Lehman Brothers and Kuhn Loeb. The world company was to be a new form of colonialism, in which global assets would be acquired by economic rather than military coercion. The company would extend across national boundaries, aggressively engaging in mergers and acquisitions until the assets of the world were subsumed under one privately-owned corporation, with nation-states subservient to a private international central banking system.

...

The base of power was found in the private global banking system. Estulin goes on:

The problem with today’s system is that the world is run by monetary systems, not by national credit systems. . . . [Y]ou don’t want a monetary system to run the world. You want sovereign nation-states to have their own credit systems, which is the system of their currency. . . . [T]he possibility of productive, non-inflationary credit creation by the state, which is firmly stated in the US Constitution, was excluded by Maastricht [the Treaty of the European Union] as a method of determining economic and financial policy.

The world company acquires assets by preventing governments from issuing their own currencies and credit. Money is created instead by banks as loans at interest. The debts inexorably grow, since more money is always owed back than was created in the original loans. (For more on this, see here.) If currencies are not allowed to expand to meet increased costs and growth, the inevitable result is a wave of bankruptcies, foreclosures, and sales of assets at firesale prices. Sales to whom? To the “world company.”

For more...

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11/36. Job "creation" by the Presidents of the USA
August 11, 2011

Like little kids the GOP repeats the mantra that GOP Presidents have "created" more jobs than the democratic presidents who have always failed in job creation. The democrats just build bigger governments and spend money left and right...

The graph below will set the job creation issue to rest for good starting from 1939:

Presidents

The Presidents do not create jobs. They have no authority to spend money if the Congress has not allocated it as entitlements or new laws

What Congress has legislated and President signed to law is the law of the land regardless of who is president and how much it all will cost. The 14th amendment of the constitution states that all these programs set by Congress and approved by President must be paid in full from the US Treasury. If the Treasury does not have the money it must print or borrow it. It is crazy to borrow from private banks against high interest rate as the Treasury can as well just print it.

The FED of course want the Treasury to borrow the money from it's private owner banks against high interest. But that is totally unnecessary. The claim of FED is that all additionally printed dollars will create inflation. Is it really true in a growing economy that owns the only reserve currency in the world that every country with foreign trade must use?

In reality the only inflationary forces are the interest rates paid to the private banks or foreign sovereigns by the Treasury and the private debts the tax payers are paying to all private banks and entities.

The 14th amendment of the US constitution is a temptation to all political parties and their practice today is to customarily add "earmarks" to all congressional bills with added funds flowing to their constituents in form like useless bridges to nowhere.

All politicians as individuals claim that they want to get rid of these "earmarks" but they never do it. This means that the US budgets can never be balanced.

To "show" that they are serious the Congress created almost a century ago a debt ceiling to limit their own legislative power, what a joke. It is like telling to you that when I am about to jump off the cliff you must tell me that I should not jump off the cliff. We here in the gutters know this all and that Congress made this rule just to mislead the less and less educated population tat large. This is politics for the sake of politics with only purpose to deceive and hide.

The history has told that we knew this all already 10,000 years ago. A government of people can never stop spending beyond it's means without a credible threat of a death. The noble intentions have always been shaken out from their foundations in the aftermaths of natural disasters or wars. The only correct act after those is to "print" more money to employ people in massive society projects just to avoid instant revolution. After all is fixed years later and people will simply go back to their normal lives. Here the governments have always found too tempting to continue printing additional money that is no ore needed but can help their closest friends and allies just a little more. The result has always been corruption and systemic dishonesty with another type revolution at the end.

We here in the gutters including the least educated ones know well the cycles of boom and bust and how the governments should handle them. There is absolutely nothing complicated in this and even when government would be run by total honest idiots they could not fail in this simple task.

Unfortunately the only people that pretend of not knowing what to do are our current representatives in the US Congress as they are in debt to those who financed their election campaigns and other perks. These more or less unknown supporters like e.g. AIPAC and others are the most dangerous criminals in our country, by far more dangerous than any of those mass murderers we have locked permanently into our jails

We here in the gutters also know that the private sector will not generate a single job before they know clients somewhere that can pay sufficiently well for the cost of each new job. These client must be people who have money to buy and these people must have already jobs that pay salaries and wags. These jobs can even be the jobs the government just created to improve the infrastructure of the country. The fact is that only employed people have money.

Jobs cannot be dreamed from thin air by Congress. We all know the empty frases all Congressional hopefuls repeat as election time mantra how they will deliver zillion of new jobs while they have no idea at all how to do it in our real world.

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11/35. The Secret Umbilical Cord between the Tea Party an the GOP
August 7, 2011

Did you ever think that there would be so case fitting umbilical cord connection between the US Tea Party and the GOP like this one - clearly from other field but certainly very exacting in light of the debt ceiling debate in the US Congress?

Original by Prof. Mike Robinson, Surrey, UK

Alpha male seeks lower stress level

It is inferred that alpha male baboons have higher stress levels than beta males because of the conflicts to maintain the highest rank ("Alpha baboons feel the strain", FT.com, July 30). I am an alpha male with ambitions to become a lower-stress beta. My stress levels arise because I actively seek conflict. Not just academically, as in attacking flawed hypotheses. I notice any opportunity for conflict - a closed right of way, a misleadingly advertised product. My alpha status is a result of conflict-seeking. Conflict is not thrust upon me as a result of my alpha status. This observation, of course, may not generalize to baboons.

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11/34. One of the better Solutions so far to Solve the EU Monetary Crisis

Only ECB can halt eurozone contagion

Augusrt 5, 2011 by Professor of economics Paul De Grauwe, University of Leuven BELGIUM

The forces of contagion in the' eurozone appear unstoppable. On Thursday investors drove yields on both Italian and Spanish debt to new highs, as fears grew that last month's Greek rescue deal would prove insufficient to stop Europe's financial rot. Without swift action from the European Central Bank, this will prove to be a contagion process with a disastrous end.

Why do we face these problems? Government bond markets in a monetary union are inherently fragile. Eurozone nations issue debt in a "foreign" currency, over which they have no real control. As a result, they cannot guarantee to the bondholders that they will always have the necessary liquidity to pay out the bond at maturity. States which issue their own bonds, however, can guarantee that the cash will always be available, because they can always force the central bank to create the money. And there is no limit to the amount of money a central bank can create.

This situation makes bond markets in a monetary union unusually prone to forces of contagion, very much like in banking systems. If one bank experiences a solvency problem, deposit holders start doubting the solvency of their own bank,and run to convert their deposits into cash. When everybody does this at the same time the banks will not have enough cash. This banking system instability was solved by mandating the central bank to be a lender of last resort - and the neat thing about this solution is that, when deposit holders are confident that it exists, it rarely has to be used.

The problem faced by the member countries of a monetary union such as the eurozone is exactly the same. Therefore, the solution is the same

 

The EFSF will never have the necessary credibility to stop contagion because it cannot it actually print money

Contagion between sovereign bond markets can only be stopped if there is a central bank willing to be lender of last resort. The only institution able to perform this role is the ECB.

The ECB initially performed this role in a timid way, while making it clear that it was unwilling to continue doing so. Indeed, this reversal in the ECB's policy is the most important factor explaining why the forces of contagion in the eurozone's sovereign bond markets oannot be stopped.

Europe's leaders have tried to solve this problem by creating a surrogate institution, the European financial stability facility. Yet the EFSF will never have the necessary credibility to stop the forces of contagion - precisely because it cannot actually print money. It depends for its resources on the member countries of the union, and these are limited. As a result, it cannot guarantee that the cash will always be available to payout sovereign bond holders even if its resources are doubled or tripled. Only a central bank that can create unlimited amounts of cash can provide such a guarantee.

The ECB argues that it can abandon its responsibility as lender of last resort, because to provide that guarantee gives wrong signals to politicians. It creates a temptation to add excessive government debt, because the ECB will eventually foot the bill. While this moral hazard risk is indeed a serious one, it is no different from the same risk in the , banking system. The way to deal with this is not to abolish the role of lender of last resort, but to create rules that will constrain . governments in issuing debt.

Stopping Europe's current crisis requires fundamental overhaul of the eurozone's institutions. But the most important part of that overhaul is to ensure that the ECB takes on full responsibility as a lender of last resort in the government bond markets of the eurozone. Without this, the markets cannot be stabilised and crises will remain endemic.

At the same time, further steps towards political unification must be taken, without which control on national government deficits and debts cannot be implemented. Some steps in that direction were taken recently when the European Council strengthened control of national budgetary processes and on national macroeconomic policies. These decisions, however, are insufficient, and more fundamental changes in the governance of the eurozone are needed. These should be such that the ECB can trust that its lender of last resort responsibilities in the government bond markets will not lead to a never-ending dynamic of debt creation.

The above writer is professor of economics at the University of Leuven

Comments:

  1. The political system must be controlled and this can be done by authorizing the Central bank of the country or ECB decide the annual excess money the politicians can allocate to their country averaging over time at 3% from the GDP and varying between 1%... 5%.
  2. In good times the politicians can allocate only 1% over the GDP.
  3. In bad times like today that allocation can reach up to the maximum of 5% of the GDP. Altogether 50% of this money has to go to education and infrastructure development.
  4. Governments must allocate 100% if this money to finance the government debt obligations that all must be used to benefit the development of the country. No monty can be used to finance well established failing businesses.

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11/33. Fascism of Sharia Law is well on it's way to conquering the UK

Augusrt 4, 2011

Have you ever thought tha Islam is actually a fascist movement - the control of it is in the hands of the few clerics that cannot be fired!

Perhaps the Norwegian incident regardless of it's brutality has a point (second video below).

The enclosed video reports covers the plans and early execution of a grand plan to replacing the Britsh legal system with Sharia law in the near future and to do the same in the rest of the Europe. There is nothing wrong living various cultures living together but replacing the legal system and of a country is unacceptable.

Is that a treasonous act when one establishes an alien legal system aiming to replace the existing rule of the land? Just try that in the USA!

 

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11/32. SEC at Sleep - Step Right Up: It's HFT Whack-A-Mole Time

Augusrt 2, 2011

Original from Zero Hedge by Tyler Durden on 08/02/2011 20:56 -0400

For those who thought the crocodile algo or the fractal HFT patterns were crazy, you ain't seen nothing yet. Earlier today, Nanex caught arguably the most berserk HFT algorithm yet captured on film, or jpeg as the case may be, in the trading of Earthlink stock shortly after hours. What happened next is one for the ages... Because it certainly will not make it to the regulators. In essence, we had our first spotted appearance of the Whack-A-Mole algorithm, which allowed one, if one is fast enough, and incidentally one isn't, as all the bids would be cancelled at the same time as they were sent out, to make free money on a 10% trading spread between the bid and ask. Gone is any pretense of an NBBO, gone is any pretense of an orderly market: it is the wild, electronic, and nanosecond west out there.

Per Nanex:

It's wack-a-mole, if you can hit the bid and offer fast enough, it's instant money! On August 2nd, right after regular trading closed at 16:00, ELNK perfectly illustrates the illusion of modern trading. Gone are luddite meanings of bids and offers, where a bid really meant someone wanted to buy and an offer was a legitimate offer of stock. Today's bids and offers are beautiful to behold. And boy they are fast! How fast? Faster than you could ever hope to hit them. So shut up, sit back, and leave it to the professionals. ELNK - EARTHLINK

Price Only:

Price and Size:

Scatter plot of trades only (Price and Size):

Zoom in of price activity:

Zoom in of early price activity:


The charts below are spaced evenly with time. The first is in 100ms intervals, the second in 200ms intervals.

shading: red=NBBO crossed, yellow=crossed, gray=normal

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11/31. And GOP has Nerve to tell that Democrats are Spenders - See Chart!

July 31, 2011

How long do the American people take the GOP and Tea Party blatant lies that it is always the democrats who destroy the economy by spending over our means. The facts tell the opposite.

It s the GOP who is the party that keeps on spending right and left as if the money would be growing in trees.

Our National debt of US$ 14.3 trillion today. GOP Presidents, Bush Junior, Bush Senior and Reagan increased our national debt by US$ 9.5 trillion. The democratic Presidents Obama and Clinton have increased it by 3.8 Trillion. Before Reagan and since the birth of the USA the debt had accumulated to a total of US$ 1.0 trillion.

Both Bushes took us to two unnecessary wars (Hussein was tricked to invade Kuwait by the US ambassador in Iraq, and Ronald Rumsfeld was involved ). Reagan faced a similar situation like Obama at the beginning of his Presidency. Both decided to use public funds to get economy moving again. Bush Junior used tax payer money to move of US manufacturing base to foreign countries. When done the current financial chaos is difficult to fix as many of the jobs will never return to the USA.

Obama inherited the Presidency in difficult position as rescuing country after financial crisis is not easy when many manufacturing jobs have disappeared permanently. GOP made his job even more difficult by preventing any financial support to the only useful projects in this kind of environment that are: improvement of national infrastructure and support to real new industrial development.

GOP's was warm to new technology but the only idea that got support went to farmers to convert food to ethanol. Most of the farmers are GOP supporters already and ethanol was great for them on two levels: they could now produce low cost ethanol and as corn was taken out from markets food prices would increase.

USDebt2011

 

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