Lets try to understand what money really is. This is the main reason no one in this country can understand how this all really happened. THIS VIDEO PUTS IT IN THE MOST SIMPLISTIC TERMS BUT REVEALS THE GREATEST TRUTHS YOU MUST KNOW IF YOU ARE A PATRIOTIC AMERICAN.
U.S. Constitution - Article 1 Section 8
Article 1 - The Legislative Branch
Section 8 - Powers of Congress
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
This law is being violated and its what Ron Paul has been trying to get people to listen too for years it really is time to wake up.
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Sunday, October 19, 2008
Deflation vs Inflation (DEBT DOLLARS)
Months ago we spoke about de-leveraging of banks and how dangerous this could be.
Well here it is we are in the Grip of deflation now. Our banks are leverage 9 to 1 as dictated by the Federal Reserve's Fractional Reserve Banking Policy. Meaning a bank can lend 9 times what they actually have on deposit in the bank. The money they lend is actually just digital credits it doesn't exist. This is why now that the FED has started the proverbial elephant down a hill side in its wave of defaults created since the 17 rate hikes its has run over every bank in its path.
Prices are dropping in every market; gas prices, commodities, equities, and currencies all falling in unison. The US dollar recently being the strongest currency out there in the G8 is perceived to be that we are the safest of the G8 to be but this is not true.
This USD strength is a false strength; it is actually a result of deflation or the scarcity of US Dollars in the system that is causing it as the leveraged US debt vanishes from the system. THE FACT IS EVERY DOLLAR WE HAVE IS A DOLLAR CREATED AT INTEREST OR DEBT MONEY.
What happens when the deflation runs its course? There won't be any money left. Gas might be cheaper but you will also have relatively less dollars to work with thereby keeping the benefits of price drops from truly being realized.
Once deflation runs its course then the remaining inflationary pressures of the central banks' money creation will take over. Since we must continue to finance defense, fight on going global conflict/wars with dubious origin and rational, and protect the people that pay the central bank's interest, the citizens of the nations, well enough for them to get their money back from us through government taxation. They will continue to flood the system with this fiat tsunami. This will put us at risk of mirroring the Pre-World War 2 era in Germany when the Mark was pretty much worthless. This is the future we face if the powers that be are left to their own devices.
Well here it is we are in the Grip of deflation now. Our banks are leverage 9 to 1 as dictated by the Federal Reserve's Fractional Reserve Banking Policy. Meaning a bank can lend 9 times what they actually have on deposit in the bank. The money they lend is actually just digital credits it doesn't exist. This is why now that the FED has started the proverbial elephant down a hill side in its wave of defaults created since the 17 rate hikes its has run over every bank in its path.
Prices are dropping in every market; gas prices, commodities, equities, and currencies all falling in unison. The US dollar recently being the strongest currency out there in the G8 is perceived to be that we are the safest of the G8 to be but this is not true.
This USD strength is a false strength; it is actually a result of deflation or the scarcity of US Dollars in the system that is causing it as the leveraged US debt vanishes from the system. THE FACT IS EVERY DOLLAR WE HAVE IS A DOLLAR CREATED AT INTEREST OR DEBT MONEY.
What happens when the deflation runs its course? There won't be any money left. Gas might be cheaper but you will also have relatively less dollars to work with thereby keeping the benefits of price drops from truly being realized.
Once deflation runs its course then the remaining inflationary pressures of the central banks' money creation will take over. Since we must continue to finance defense, fight on going global conflict/wars with dubious origin and rational, and protect the people that pay the central bank's interest, the citizens of the nations, well enough for them to get their money back from us through government taxation. They will continue to flood the system with this fiat tsunami. This will put us at risk of mirroring the Pre-World War 2 era in Germany when the Mark was pretty much worthless. This is the future we face if the powers that be are left to their own devices.
Problem Reaction Solution
How can this model work so effectively on people? I can only say I wish it did not but it just does. Like cattle with a cattle prod poke them in the right place and they will rush toward their certain doom.
Nobody noticed the 17 rate hikes in the housing boom (see chart from January 2008 post) and the fact George Bush out of no where close the Bankruptcy loop hole while the FED was increasing global default risk. Now in 2008 The treasury under the leadership of Henry Paulson former Goldman Sachs CEO has come to rescue with his trusted ally Ben Bernanke to save us.
Lets see now the Glass-Stegall Act has been repealed Henry Paulson or Hank has turned his old company into a bank holding company and plans to buy all bad US debt off of bank balance sheets with our own money they just created and give good bank assets back to his old company.
Doesn't this set off any alarm bells in anyone's head anywhere? If this is the only thing I heard I would be at high alert. Goldman Sachs was the one company that seemingly knew to stay away from the entire Mortgage Backed Security business even when it was booming, now their ex leader is handing over all the assets of all the institutions that were caught due to the rate hikes and changes to LIBOR by his ally Ben Bernanke in the FED, and buying the bad debt from those institutions using our own money...... No body else out there sees this as a little too close to home.... Seriously no one out there caught on to this. Humor me.
We have been backed in to a corner and given only one solution. GIVE THE FED EVEN MORE POWER THAN THEY ALREADY HAD OVER EVERYTHING YOU NEED TO LIVE, The creation of money, INSURANCE (AIG), HOUSING (FANNIE & FREDDIE CONSERVATOR SHIP) and basically your souls. Remember this is a private bank not part of the US government.
Constitutionally the FED should not exist exactly as Senator Ron Paul states that bank is illegal and is conducting extremely illegal activities in broad daylight.
The media is completely complicit in the scam as any amount of research will turn up the fact that the FED should not exist by the US Constitution and only one Law Maker Ron Paul will acknowledge it. The power own you do you all just not mind? Even the money in your pocket isn't truly yours, it is an interest dollar owed to someone else and to pay it back our Central Bank will create more money out of thin air and depreciate your own money without your permission essentially robbing us of buying power.
Nobody noticed the 17 rate hikes in the housing boom (see chart from January 2008 post) and the fact George Bush out of no where close the Bankruptcy loop hole while the FED was increasing global default risk. Now in 2008 The treasury under the leadership of Henry Paulson former Goldman Sachs CEO has come to rescue with his trusted ally Ben Bernanke to save us.
Lets see now the Glass-Stegall Act has been repealed Henry Paulson or Hank has turned his old company into a bank holding company and plans to buy all bad US debt off of bank balance sheets with our own money they just created and give good bank assets back to his old company.
Doesn't this set off any alarm bells in anyone's head anywhere? If this is the only thing I heard I would be at high alert. Goldman Sachs was the one company that seemingly knew to stay away from the entire Mortgage Backed Security business even when it was booming, now their ex leader is handing over all the assets of all the institutions that were caught due to the rate hikes and changes to LIBOR by his ally Ben Bernanke in the FED, and buying the bad debt from those institutions using our own money...... No body else out there sees this as a little too close to home.... Seriously no one out there caught on to this. Humor me.
We have been backed in to a corner and given only one solution. GIVE THE FED EVEN MORE POWER THAN THEY ALREADY HAD OVER EVERYTHING YOU NEED TO LIVE, The creation of money, INSURANCE (AIG), HOUSING (FANNIE & FREDDIE CONSERVATOR SHIP) and basically your souls. Remember this is a private bank not part of the US government.
Constitutionally the FED should not exist exactly as Senator Ron Paul states that bank is illegal and is conducting extremely illegal activities in broad daylight.
The media is completely complicit in the scam as any amount of research will turn up the fact that the FED should not exist by the US Constitution and only one Law Maker Ron Paul will acknowledge it. The power own you do you all just not mind? Even the money in your pocket isn't truly yours, it is an interest dollar owed to someone else and to pay it back our Central Bank will create more money out of thin air and depreciate your own money without your permission essentially robbing us of buying power.
The Truth Will Set You Free (Part 3)
So who benefits from a contrived global financial collapse? Well let me think for 2 seconds, OK I GOT IT!! EUREKA!
Who's business has been enhanced by this you ask? THE CENTRAL BANKERS!! Wow that was so easy. The Federal Reserve like the other Central Banks aren't part of the governments of their respective countries. The Bank of England is no more a part of England's governing body than Bank of America is part of the US governing body. Its just a deceptive name like the Federal Reserve or Federal Express....neither of these are Federal.
The FED lends AIG $85 Billion to bail them out but take an 80% stake in the company and gives them a loan at %12 does that sound like help or a hostile take over. The FED creates money out of thin air as a direct tax on the people we call inflation or the devaluation of the money in your pocket.
12% is a hard money interest rate not a bail out interest rate period.
The FED lends $437.5 Billion dollars a day to US banks at the discount window. Or $2 Trillion in a week. Listen to these numbers again. For a private for profit bank such as the FEDERAL RESERVE this must be a dream come true. Their business has skyrocketed. The housing mortgage market is approximately $10 Trillion. The FED was able to lend 1/5 of this in a week to our banks at interest/profit.
Now add this to all Central Banks of all G8 nations simultaneously capturing all banks in a nationalist take over inside a weak and you have an ominous picture.
The fiat money system they have trapped us in gives them total control of all nations and all its people. They can arbitrarily create booms and bust by the artificial manipulation of interest rates which is completely contra to any free market operation. It is a contrived market in which you are allowed to play but its not your market its theirs.
Who's business has been enhanced by this you ask? THE CENTRAL BANKERS!! Wow that was so easy. The Federal Reserve like the other Central Banks aren't part of the governments of their respective countries. The Bank of England is no more a part of England's governing body than Bank of America is part of the US governing body. Its just a deceptive name like the Federal Reserve or Federal Express....neither of these are Federal.
The FED lends AIG $85 Billion to bail them out but take an 80% stake in the company and gives them a loan at %12 does that sound like help or a hostile take over. The FED creates money out of thin air as a direct tax on the people we call inflation or the devaluation of the money in your pocket.
12% is a hard money interest rate not a bail out interest rate period.
The FED lends $437.5 Billion dollars a day to US banks at the discount window. Or $2 Trillion in a week. Listen to these numbers again. For a private for profit bank such as the FEDERAL RESERVE this must be a dream come true. Their business has skyrocketed. The housing mortgage market is approximately $10 Trillion. The FED was able to lend 1/5 of this in a week to our banks at interest/profit.
Now add this to all Central Banks of all G8 nations simultaneously capturing all banks in a nationalist take over inside a weak and you have an ominous picture.
The fiat money system they have trapped us in gives them total control of all nations and all its people. They can arbitrarily create booms and bust by the artificial manipulation of interest rates which is completely contra to any free market operation. It is a contrived market in which you are allowed to play but its not your market its theirs.
The Truth Will Set You Free (Part 2)
Who does the financial crisis benefit?
If you asked this question about the IRAQI war you would have realized what was going on long long ago. Dick Cheney gave $100 Billion dollar contract non compete to his former company Halliburton and even now the Oil Minister of Iraq has been in talks to reintroduce Exxon, Shell, BP, Total and Chevron after some 36 after being forced out by Saddam's nationalization of the industry. IN A NUTSHELL THE WAR USED OUR SONS AND DAUGHTERS FOR A VERY LUCRATIVE OIL DEAL WORTH TRILLIONS OF DOLLARS OVER THE LONG HAUL to invade and steal another countries natural resources. Very simple it wasn't because they hate your freedoms we felt the need to murder 1 million civilians to help them out, that ridiculous and just plain stupid if you even considered that a possible rationale.
Corporate America controls Congress and the president so then its easy to assume a business motivation behind anything this large scale that requires the spending of $10 billion dollars a month. That's a large market to not have a financial motivation to be a part of. War makes money just not always for us.
If you asked this question about the IRAQI war you would have realized what was going on long long ago. Dick Cheney gave $100 Billion dollar contract non compete to his former company Halliburton and even now the Oil Minister of Iraq has been in talks to reintroduce Exxon, Shell, BP, Total and Chevron after some 36 after being forced out by Saddam's nationalization of the industry. IN A NUTSHELL THE WAR USED OUR SONS AND DAUGHTERS FOR A VERY LUCRATIVE OIL DEAL WORTH TRILLIONS OF DOLLARS OVER THE LONG HAUL to invade and steal another countries natural resources. Very simple it wasn't because they hate your freedoms we felt the need to murder 1 million civilians to help them out, that ridiculous and just plain stupid if you even considered that a possible rationale.
Corporate America controls Congress and the president so then its easy to assume a business motivation behind anything this large scale that requires the spending of $10 billion dollars a month. That's a large market to not have a financial motivation to be a part of. War makes money just not always for us.
The Truth Will Set You Free
It is boarder line ridiculous how well the media has help to disguise what is going on so let me clarify the simplistic nature of what you have all witnesses.
Nothing in this world truly occurs at the top levels as a surprise. The world is incredibly well directed. This is an important point when considering 1% of Americans control 90% of the wealth. That means 90% of us are not in any position to make any decisions about the wealth of our nation we are just the moving parts of their machine.
Nothing in this world truly occurs at the top levels as a surprise. The world is incredibly well directed. This is an important point when considering 1% of Americans control 90% of the wealth. That means 90% of us are not in any position to make any decisions about the wealth of our nation we are just the moving parts of their machine.
Libor and the FED
Ok lets talk education and the lack thereof in the USA today. Its all over the news now that LIBOR is sky high. LIBOR is a measure of credit risk, in normal times LIBOR is usually within 15 to 30 basis points or bps of the FED target rate.
However now that the FED rate is back down to 1.5% the LIBOR is lingering 300 bps plus above LIBOR signaling the complete destruction of the entire credit system. Why is this important? Or a better question what exactly is important about this whole thing?
Remember in January we discuss the fact the FED raised rates 17 times and with those hikes LIBOR correlated with the FED hike better than 90% from 1.5% to the upper 5% range. Now the FED knows this is a measure of credit default. Further more the FED also knows very well that 80% of the purchase money mortgages used in the peak of the housing market from 2003-2006 were adjustable rate mortgages (ARMs) that were set to LIBOR upon adjustment. This would indeed make the FED guilty of deliberately triggering a default way by changing the future credit worthiness of all mortgage backed securities, CMOs, and CDOs that package these adjustable mortgage products by knowing full well that all those purchase money mortgages will then adjust higher. This is very simple. They new what they were doing all along these are Harvard educated business men with intimate knowledge of this system. Where exactly are they cutting rates from to increase liquidity to save us. From the 5.25% they cranked it in the largest debt boom in history. 17 hikes and no accountability how is this possible unless the media is helping to hide the problem.
98% of Americans have no idea about this and this is the single most important aspect of the financial crisis gripping the planet today. The FED has extensive knowledge of the system they regulate and are aware most Americans and Congress don't get it. Now the FED has absolute authority over the entire banking and credit system with the unchecked power. This doesn't bother any out there?
However now that the FED rate is back down to 1.5% the LIBOR is lingering 300 bps plus above LIBOR signaling the complete destruction of the entire credit system. Why is this important? Or a better question what exactly is important about this whole thing?
Remember in January we discuss the fact the FED raised rates 17 times and with those hikes LIBOR correlated with the FED hike better than 90% from 1.5% to the upper 5% range. Now the FED knows this is a measure of credit default. Further more the FED also knows very well that 80% of the purchase money mortgages used in the peak of the housing market from 2003-2006 were adjustable rate mortgages (ARMs) that were set to LIBOR upon adjustment. This would indeed make the FED guilty of deliberately triggering a default way by changing the future credit worthiness of all mortgage backed securities, CMOs, and CDOs that package these adjustable mortgage products by knowing full well that all those purchase money mortgages will then adjust higher. This is very simple. They new what they were doing all along these are Harvard educated business men with intimate knowledge of this system. Where exactly are they cutting rates from to increase liquidity to save us. From the 5.25% they cranked it in the largest debt boom in history. 17 hikes and no accountability how is this possible unless the media is helping to hide the problem.
98% of Americans have no idea about this and this is the single most important aspect of the financial crisis gripping the planet today. The FED has extensive knowledge of the system they regulate and are aware most Americans and Congress don't get it. Now the FED has absolute authority over the entire banking and credit system with the unchecked power. This doesn't bother any out there?
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