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Banks: Are they really the bad guys? (Clint Richardson)
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Fintan
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PostPosted: Wed May 13, 2015 3:54 am    Post subject: Reply with quote

If you find yourself agreeing with David Stockman - you may be in trouble.

Quote:
a former Republican congressman from Michigan and was President
Reagan’s budget director from 1981 to 1985. After leaving the White
House, Stockman became a managing director at Salomon Brothers


Why that's all spin is a complex issue.

To put it simplistically, China is being used as a diversion/lure.

Quoting from the prepper article above:

Quote:
The only true beneficiaries of this cycle will be the IMF and
those elites who desperately want a totally centralized global economic
system.

In the meantime, as the dollar loses its world reserve status, it loses the
ONLY pillar of support keeping its value somewhat stable. As the dollar
falls, U.S. citizens will be reduced to Second World or Third World
economic expectations.


Allegedly, China's rise = dollar fall. Actually.. dollar IMPLOSION! lol

Bullshit. Global trade has some frikkin basic game rules is all.

The real issue/scandal is who a central bank serves. People or Banks only.

Quote:
Canadians have been fleeced for billions.......
they have been steadily winning court battles initiated in 2011 that would
oblige the Bank of Canada to return to its pre-1974 practice of lending the
government money virtually interest free. But the mainstream media has
boycotted the story.

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Plato



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Posts: 360

PostPosted: Wed May 13, 2015 11:08 am    Post subject: Reply with quote

Fintan wrote:
If you find yourself agreeing with David Stockman - you may be in trouble.

Quote:
a former Republican congressman from Michigan and was President
Reagan’s budget director from 1981 to 1985. After leaving the White
House, Stockman became a managing director at Salomon Brothers


Why that's all spin is a complex issue.

To put it simplistically, China is being used as a diversion/lure.

Quoting from the prepper article above:

Quote:
The only true beneficiaries of this cycle will be the IMF and
those elites who desperately want a totally centralized global economic
system.

In the meantime, as the dollar loses its world reserve status, it loses the
ONLY pillar of support keeping its value somewhat stable. As the dollar
falls, U.S. citizens will be reduced to Second World or Third World
economic expectations.


Allegedly, China's rise = dollar fall. Actually.. dollar IMPLOSION! lol

Bullshit. Global trade has some frikkin basic game rules is all.

The real issue/scandal is who a central bank serves. People or Banks only.

Quote:
Canadians have been fleeced for billions.......
they have been steadily winning court battles initiated in 2011 that would
oblige the Bank of Canada to return to its pre-1974 practice of lending the
government money virtually interest free. But the mainstream media has
boycotted the story.


Hi Fintan,
Did you actually listen to the (stock)man? Or did you decide not to merely because he is Reagan's former budget director. Some people grow up you know, and no, I don't necessarily agree with his solutions, but his analysis of the 2008 financial "meltdown" is very interesting to listen to.

With regard to your global trade remark; the rest of the world is getting sick and tired of the US running trade deficits of half a trillion dollars or more since the nineties, especially (with) China. China has accumulated some 3-4 trillion US dollars in the process, an insane amount by any means. See for yourself, you can adjust the time frame;

http://www.tradingeconomics.com/united-states/balance-of-trade

No this is not sustainable; yes, this will have consequences as more and more countries are starting to ditch the US dollar. This will reduce the US to a third world nation, as the only thing it exports is war, crappy movies and fiat paper that nobody wants any longer. This is exactly what TPTB want, as they strive for a multi-polar world but a one world currency, probably in the form of the SDR, possibly with some sort of gold/silver backing (No, peasants will not be allowed to exchange their fiat for the real thing of course, that should be obvious). OK, this is what TPTB have in store for us, but will we go along for more of the same BS, only on a bigger scale?

Yes, I listen to them all, preppers, former budget directors, BFN, etc. as long as they have some interesting viewpoints to share, no shame in that.
Listen to all. Follow none.

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Plato



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PostPosted: Sat May 16, 2015 2:54 pm    Post subject: Reply with quote

So how do we know TPTB want a one world currency? That's easy, they're quite happy to tell us. This article is from an 1988 issue from The Economist, that mouthpiece of the "elites", owned by the Rothschilds;
https://en.wikipedia.org/wiki/The_Economist
So this is not just any old magazine. No, they are not psychic; they know because they were told to write this.



So here it is;
Quote:

Get Ready for the Phoenix

THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let’s say, the phoenix. The phoenix will be favoured by companies and shoppers because it will be more convenient than today’s national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century.

At the beginning of 1988 this appears an outlandish prediction. Proposals for eventual monetary union proliferated five and ten years ago, but they hardly envisaged the setbacks of 1987. The governments of the big economies tried to move an inch or two towards a more managed system of exchange rates – a logical preliminary, it might seem, to radical monetary reform. For lack of co-operation in their underlying economic policies they bungled it horribly, and provoked the rise in interest rates that brought on the stock market crash of October. These events have chastened exchange-rate reformers. The market crash taught them that the pretence of policy co-operation can be worse than nothing, and that until real co-operation is feasible (i.e., until governments surrender some economic sovereignty) further attempts to peg currencies will flounder.

The new world economy
The biggest change in the world economy since the early 1970’s is that flows of money have replaced trade in goods as the force that drives exchange rates. as a result of the relentless integration of the world’s financial markets, differences in national economic policies can disturb interest rates (or expectations of future interest rates) only slightly, yet still call forth huge transfers of financial assets from one country to another. These transfers swamp the flow of trade revenues in their effect on the demand and supply for different currencies, and hence in their effect on exchange rates. As telecommunications technology continues to advance, these transactions will be cheaper and faster still. With unco-ordinated economic policies, currencies can get only more volatile.
….
In all these ways national economic boundaries are slowly dissolving. As the trend continues, the appeal of a currency union across at least the main industrial countries will seem irresistible to everybody except foreign-exchange traders and governments. In the phoenix zone, economic adjustment to shifts in relative prices would happen smoothly and automatically, rather as it does today between different regions within large economies (a brief on pages 74-75 explains how.) The absence of all currency risk would spur trade, investment and employment.

The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF. The world inflation rate – and hence, within narrow margins, each national inflation rate- would be in its charge. Each country could use taxes and public spending to offset temporary falls in demand, but it would have to borrow rather than print money to finance its budget deficit. With no recourse to the inflation tax, governments and their creditors would be forced to judge their borrowing and lending plans more carefully than they do today. This means a big loss of economic sovereignty, but the trends that make the phoenix so appealing are taking that sovereignty away in any case. Even in a world of more-or-less floating exchange rates, individual governments have seen their policy independence checked by an unfriendly outside world.

As the next century approaches, the natural forces that are pushing the world towards economic integration will offer governments a broad choice. They can go with the flow, or they can build barricades. Preparing the way for the phoenix will mean fewer pretended agreements on policy and more real ones. It will mean allowing and then actively promoting the private-sector use of an international money alongside existing national monies. That would let people vote with their wallets for the eventual move to full currency union. The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power.
…..
The alternative – to preserve policymaking autonomy- would involve a new proliferation of truly draconian controls on trade and capital flows. This course offers governments a splendid time. They could manage exchange-rate movements, deploy monetary and fiscal policy without inhibition, and tackle the resulting bursts of inflation with prices and incomes polices. It is a growth-crippling prospect. Pencil in the phoenix for around 2018, and welcome it when it comes.

Seems we're still on track to that phoenix.....

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PostPosted: Wed Jun 03, 2015 10:23 am    Post subject: Here come the bail-ins Reply with quote

Yep, right on time for the fireworks later this year or next year, but probably this fall;

http://investmentresearchdynamics.com/eu-regulators-order-11-countries-to-adopt-bail-in-rules/

Quote:

EU Regulators Order 11 Countries To Adopt Bail-In Rules

June 2, 2015Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economybail ins, bank deposit confiscation, BIS, Too Big To Fail

If there is a risk in a bank, our first question should be: “Ok, what are you the bank going to do about that? What can you do to recapitalise yourself?” If the bank can’t do it, then we’ll talk to the shareholders and the bondholders. We’ll ask them to contribute in recapitalising the bank. And if necessary the uninsured deposit holders: “What can you do in order to save your own banks?” – Jeroen Dijsselbloem, President of the Board of Directors of the European Stability Mechanism, March 26, 2013

The bail-ins are coming. Reuters reported today that European Commission today gave France, Italy and nine other EU countries two months to adopt bank bail-in regulations or face legal action – LINK

The move to require bank bail-ins originated at the BIS – Bank for International Settlements beginning in 2008. In 2011, the Financial Stability Board (FSB) – a sub-committee of the BIS – drafted the boilerplate model for big bank bail-ins: Key Attributes of Effective Resolution Regimes for Financial Institutions.

The objective of an effective resolution regime is to make feasible the resolution of financial institutions without severe systemic disruption and without exposing taxpayers to loss, while protecting vital economic functions through mechanisms which make it possible for shareholders and unsecured and uninsured creditors to absorb losses in a manner that respects the hierarchy of claims in liquidation.

The bank rescue model as drafted lays out a complete systematic procedure for the rescuing and restructuring of any financial institution considered “SIFI” – a Systematically Important Financial Institution. In layman terms this translates into “Too Big To Fail.” This model was endorsed by the G20 at Summit in 2011.

The “model” requires that funds required for a bail-in to prevent a TBTF from collapsing would first be taken from unsecured creditors. This is primarily any depositor money in excess of the amount insured by the Government. Incredibly, and this has been ratified by legislation in the United States, holders of derivative securities of the collapsing bank are considered super-secured. In other words, those stakeholders in the banks would be the last to suffer any losses resulting from the restructuring of an insolvent bank.

In the United States there is over $4 trillion in depositor cash in excess of the amount covered by the FDIC sitting in banks.

Make no mistake about this, bail-in legislation is coming to the U.S. In fact, a $1.1 trillion spending Bill passed by Congress and signed by Obama on December 16, 2014 contained specific provisions drafted (and paid for) by Citibank which ensured that big bank OTC derivatives holdings will be covered by the FDIC (i.e. taxpayer). This is a back-door way of making the next taxpayer bailout of the big banks a legal requirement.

Anyone who keeps any cash in a bank is either completely ignorant of the ways in which that money can be “confiscated” or just completely brain-dead. I suppose there could be a strong element of denial involved as well. Big bank balance sheets are in far worse shape than they were in 2008, especially once you peel away all of the accounting shenanigans and include the off-balance-sheet ticking bombs. It’s not a question of “IF” – It’s a question of “WHEN.”

We can ignore reality, but we cannot ignore consequences of ignoring reality. – Ayn Rand

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PostPosted: Fri Jun 05, 2015 4:01 am    Post subject: Reply with quote

So what do you do to make sure that people don't take their money out?
Why, you ban cash of course! Orwell couldn't have made this up in his wildest, wettest dreams;

http://www.zerohedge.com/news/2015-06-04/better-cash-alliance-has-orwellian-plan

Quote:
The "Better Than Cash Alliance" Has An Orwellian Plan

In the fall of 1910, under the pretense of a duck hunting trip, a group of powerful bankers, political figures, and businessmen met at Jekyll Island, GA to plan the creation of a central bank for the United States. The “game” that this elite group of “hunters” brought back to their ivory towers of Lower Manhattan and Capitol Hill was the blueprint for one of the most destructive financial institutions in modern history, the Federal Reserve.

One-hundred years later, another group of powerful bankers, political figures, and businessmen have converged to promote a cashless society, an economic system that would compel every man, woman, and child to utilize proprietary, government-monitored electronic systems to make purchases of any kind. This group, which calls itself the Better Than Cash Alliance, is as dangerous as the group of “outdoor enthusiasts” that met at Jekyll Island that fateful early-20th Century November.

And, just like the Jekyll Island group sold their grand plans based on a lie (they claimed that the Fed would guarantee liquidity in times of financial panics), the Better Than Cash Alliance is selling the idea of a cashless society based on the farce that eliminating cash would stimulate entrepreneurship among the poor. In reality, the elimination of cash would reduce a great many opportunities for entrepreneurship for people of few means.

Gone would be the informal businesses the working poor often operate: roadside produce stands, street performances, handicraft tables, and day labor. Contrary to the assertions of the BTCA, a cash-free society would limit entrepreneurship to those with the means to incorporate a business, afford the proprietary system required to accept payments, and understand the local, state, and federal tax burden the payment system would create.

Although they won’t admit it, the 12 central governments that currently support the BTCA (the U.S. is one of them) do so because a cashless society would enable them to track and tax every purchase made with sovereign currency within their borders. In addition to producing new government revenue streams, the payment systems would increase governments’ social engineering capabilities: They would compel consumers to purchase goods and services from tax-paying, licensed organizations.

Freelance service providers such as barbers, music teachers, and tutors would be forced to either jump through the hoops of incorporation or seek work with licensed businesses (which would inevitably take a cut of their earnings and subject the remainder to payroll taxes). The black market would also be squeezed, escalating the War on Drugs, and subjecting every “sin” and self-defense purchase to government scrutiny. Under the guise of “national security”, of course.

A number of financial institutions, including, but not limited to, Citi, Visa, and MasterCard, support the BTCA, for obvious reasons. In a cash-free world, these institutions would not only make profits on the front end by selling electronic payment devices and charging a fee for every transaction, but they would also make money on the back end by compelling everyone to deposit all of their earnings and cash holdings into their coffers. The BTCA claims that a cashless society would enable the poor to “participate in the financial system”.

In reality, it would compel everyone to patronize banks. And, while a cashless society would be a windfall for the banking industry, it would place a heavy burden on the elderly, who often hold large amounts of cash and are hesitant (and, in some cases, incapable) of making electronic financial transactions. Among the numerous social problems the BTCA’s plan for cashless society would create, incidences of elder abuse would certainly increase.

Inevitably, some people would find a way to circumvent a government-mandated electronic payment system, at least for some purchases. Some would find ways to barter or use non-government-issued crypto or de facto currencies. (Interestingly, some black market circles use liquid Tide laundry detergent as a currency.) For some, the elimination of cash would have little material effect on their lives. But, for most, the BTCA’s agenda is a tremendous threat to their individual and economic liberties.

Like the Jekyll Island duck hunters, the Better Than Cash Alliance is a cabal of powerful people who are pushing a dangerous agenda that would harm average Americans while increasing the elite group’s power over them. Like Georgia mallards, the BTCA’s plans must be shot down.

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PostPosted: Fri Jun 05, 2015 7:34 am    Post subject: Reply with quote

The creep show continues Rumpl...

This is why contrary to what some people seem to think, it is not a good idea to ignore what superficially appear to be outlandish notions.

The fact that other “high IQ morons” such as Larry Summers (h/t Bill Bonner) have also come out in favor of a cash ban doesn’t improve the proposal in the slightest. Critics meanwhile are railing against much more than merely the fact that these debates might “distract from the real problems of monetary policy”.

In a fractionally reserved banking system, the abolition of cash would force people to hold all their cash balances with institutions that are de facto insolvent (since they cannot possibly pay out the money that should be available on demand to even a fraction of their depositors). It would no longer be possible for people to sidestep a banking crisis by withdrawing their money, or to remain voluntarily “unbanked”, since that would be equivalent to condemning oneself to starvation. Financial privacy would be completely eradicated, and one’s economic life could be erased by faceless bureaucrats at the push of a button. This may of course seem like a glorious Utopia to an etatiste like Mr. Bofinger.

The idea is one of the most tyrannical these armchair authoritarians have propagated in recent years. Whenever you hear that something should be done to “protect the children” or to “combat the drug trade” and the “shadow economy”, you can be absolutely certain that the collectivists want to make you less free. As an aside to this, if there were no “shadow economy” in Europe, living standards would plummet and a large part of the formal economy would immediately be in freefall as well. One can only hope that the political class is aware of this fact, although one should never underestimate people’s stupidity.

Central banks and fiat money are antithetical to a market economy and have been a major obstacle to economic progress for far too long a time already, we are obviously not in favor of making life easier for them. It is not cash currency that needs to be abolished, but central banking. People like Mr. Bofinger and other “macroeconomic advisors” to central banks and governments are paid far above the value their services would command in an unhampered free market economy, so it is not surprising that they are constantly agitating in favor of even more central planning and economic coercion.

As you can see, assorted statist control freaks and social engineers are far from giving up on the idea of a cash ban and continue peddling their snake oil at every opportunity. Indeed, as the example of Denmark shows, things have already progressed well beyond idle talk in some regions. Don’t make the mistake of thinking it cannot happen elsewhere as well.

Meanwhile, the hollow arguments forwarded in favor of the abolition of cash currency can be used to argue for banning just about anything. After all, there are still a great many obstacles to perfect central economic planning and total government control in this world. Obviously, central banking could be made even more effective in a command economy, and criminal activity could be severely undermined by installing cameras everywhere and having jackbooted enforcers patrolling every street. Wouldn’t that be great? We’d be perfectly safe!

Too much debt (get rid of parasite central banks) is a drag on growth - we can see that since 2010. This scheme should be tossed into the autoclave of history; disinfected, discarded and then forgotten. It does not pass go. It does not collect my $200.

Maybe Galati (lawyer representing COMER in their suit against the Bank of Canada) is a stop gap measure - churning the wheel that goes nowhere. However, I think he is genuine, honest and cares about this issue! He wants what is the best for Canadians on this issue. Which is to remove this parasite from our lives; like one would remove a piece of lint or a bottle cap.

The case against Bank of Canada

***

Related: Lawyer (Galati) Announces Legal Challenge against C-51

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PostPosted: Sun Jun 14, 2015 3:23 pm    Post subject: Reply with quote

Found this to be an interesting take on why to own gold; not only can they ban cash, they can trash the currency through hyperinflation. People in Zimbabwe thought that owning gold was RISKY! Well, they were in for a big surprise;

http://blog.milesfranklin.com/

Quote:

LESSONS FROM ZIMBABWE

My last piece was quite long and involved, some liked it and “got it”, others not so much. The breaking of confidence was the point I was trying to get to. I intend to try again with this writing but from a different viewpoint. Today, rather than continuing to hammer away at the fraud, collusion, and upside down logic of global politics, economics and finance, let’s look at a real world case. I received a rather long note from a reader earlier this week who was visiting of all places …Zimbabwe! I did not ask “why” he was visiting and can only imagine, but in light of where “we are going” it is fortuitous for us to have a pair of boots on the ground! The following is “the heart” of what he wrote. Please read this twice so it really sets in, I will comment afterward and hopefully this exercise will “make you think”.

********

…First Hand from Zimbabwe;

“Yes, they try to sell you their funny colored money with lots of zeros on it ROFL. They seem offended when you decline their offers. I told the guy I bought some off of ebay, and got the “deer in headlights” look back. I just moved on.

Anyway, met a guy who was friendly so started chatting.

This is first hand from someone who grew up here, born here, lived through the hyperinflation, had a real job, parents, house, savings, etc. I just asked him things point blank: what happened and what did you do during that period just to see what reality was.

His parents were pretty well off, brits of course, retired (or very close) for a normal Zimbabwean. Considerable savings. Not a mil USD (equivalent) but up there ($250K-$500K’ish I think in hard savings).

He said: “They went from set for life here in Zim to not being able to afford a loaf of bread in 2 days.” (these were his exact words, not mine, not a paraphrase, the exact statement, I remember it clear as day, and this was only 2 hrs ago).


The first question of course I followed with was: Um, why they didn’t buy gold? And here you have the story:

He said his parents were very conservative and placed complete trust in the system and the gov. It would never even occur to them to do something like that, and he said they said it would be way way too risky to do something like that (not because it was illegal or anything, but because gold was viewed as risky, asset wise!).

He said he might (!!) do gold next time. His first response was he’ll buy a few barrels of oil and keep them in his back yard to sell/barter LOL. Seriously. But he said, yeah, gold would be worth doing next time. I honestly don’t think that this option had occurred to him yet even to this very day, until I asked him this question. That’s just the feeling I got, as he had to pause like he was thinking about do the head nod (thinking, thinking….) what I just said before he answered.

So even now, if it happened AGAIN, the people would not necessarily turn to gold (wow, wow, and wow!). They would all instead INSTANTLY convert everything (it seemed he was indicating) into dollars to be safe! (another wow, wow, and wow)!

I told him the USD was likely on it’s way towards hyper’ing also. He seemed quite (totally) surprised. He said, he thought the EUR was headed that way, but not the USD. It seems that Zimbabwe feels the dollar is now, and always, solid as a rock.“

********

First, please remember this was a conversation with just one person so it is by no means even a “sampling”. It was however a conversation with someone “who had something …and lost it all”. The story is important in my opinion for several reasons I will touch on.

“Mathematically”, the U.S. dollar is headed for the inferno of hyperinflation. There is no argument on this point from anyone with intelligence. Even Harry Dent and Martin Armstrong the most staunch “deflationists” around admit the final chapter is that of wildly high gold prices (which means a breakdown of confidence in the dollar). The difference between “them and us” is “how” we get there? I believe we have already been witnessing the “squeeze” and run into the dollar as a “safe haven”, they see it as a continuing and future event.

The absolute most important thing to take from our reader’s comments is this line He said: “They went from set for life here in Zim to not being able to afford a loaf of bread in 2 days.” Yes I know, something in your gut is telling you “but we aren’t Zimbabwe”, the U.S. is far more sophisticated, has the greatest military in the world and of course the “it can never happen here” syndrome is chirping in the back of your mind. Let me say this, “NO, we are not Zimbabwe, what a shame!”. I might have lost or confused you here and I’ll get to this in a moment.

“Banana Republicland” (debt to GDP ratios of 100% or more) is now occupied by a large percentage of the world’s sovereign nations. The U.S. has more than a 100% debt to GDP ratio just using “funded” or on books debt. The ratio goes ballistic and out of control when you add in “guarantees and future obligations”. After researching the Zimbabwe situation, their debt to GDP number was not greater than Japan’s currently and approximately (180%) equal to that of Greece …with Italy slightly behind. My point is this, the debt to GDP ratio in the U.S. when everything is included is some God awful number, maybe 500% or even multiples more! I have news for you, we are already Zimbabwe on STEROIDS! Before commenting further, I will refute the obvious, “but the U.S. has the strongest military in the world …probably yes, but we are stretched out with many various “scopes” targeted at us. The days of “forcing” the dollar on the rest of the world are waning very quickly! World War 3 will be our main concern should the U.S. try to “force” dollar dominance. All you need to do is look around, the ROW is and has been angered by our “forcing” the use of dollars. They have been reacting by doing trade to the EXCLUSION of the dollar. The days where our military could foist the dollar on the world are over!

I mentioned above, “it is a shame we are NOT Zimbabwe”, can you guess why? Because the U.S. still “has” (or believes it does) mass wealth. Yes we have really split into the have’s and have nots as the middle class has been attacked and fallen into the have not category but …our living standard is far advanced from Zimbabwe’s in general. We have more to lose. In other words, “it is better to have never had than to fall from grace”. Zimbabweans lost their savings, on average their “fall” in living standards is miniscule to an event like that happening in the U.S.. Not to mention the unrest and riots we will see when people who were previously “entitled” …wake up to nothing! As an analogy, their fall was off the bottom rung, ours from a skyscraper! A very timely side note, while writing this article, the Zimbabwe dollar will officially “go away” http://www.zerohedge.com/news/2015-06-11/zimbabwe-demonetizes-offers-us5-175-quadrillion-zim-dollars

I also found it curious that this person had not “figured out” gold and to this day still has a feeling of “risk” when it comes to the metal. Stepping back for a moment, why do you suppose invading forces ALWAYS steal their captor’s gold rather than the currency and the plates to make the currency? Please don’t tell me I am living in Roman times, or the Middle Ages, or Napoleonic times. I am not even living in WW I or II times, as recently as the last several years, Iraqi, Ukrainian, Greek and Libyan gold has ALL been pilfered! Ask yourself this question, if the U.S. was invaded, would our conquerors steal our dollars or break into our vaults in search of gold (maybe to a very bad and empty surprise?)?

Please think this through for yourself, can we in the U.S. and the West in general wake up to closed markets and panic conditions? Do you really believe paper currency will become more valuable (for more than a week or two) if the debt markets and derivatives are closed with no bids? Do you really believe gold and silver will be “offered” in any fashion except maybe for something you have as barter? I still cannot get over the deflationists argument the dollar will strengthen in this scenario. The killer question of course is this, where exactly should (can) we store all of these valuable notes and digits “safely”? I suspect there will be a run on wheel barrows and those old “Radio Flyer” wagons will actually again have a function beyond their antique value!

Regards, Bill Holter

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stillsearchingtruth



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PostPosted: Sun Jun 14, 2015 4:12 pm    Post subject: Reply with quote

The Zimbabwe argument is fallacious and people like Holter keep perpetuating this same comparison.
Firstly the debts were not held in their own currency but in US dollars so that a huge change in exchange rates would cause a mass change in the outstanding debt and with it rampant money printing.
What caused the collapse in value? The mass land thefts from white farmers which then collapsed output, the economy was heavily reliant upon this sector and with it went any confidence in the currency.
That's not to say that you shouldn't have some Gold but the Gold standard would collapse things too, it's carnage.
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PostPosted: Mon Jun 15, 2015 6:20 am    Post subject: Reply with quote

stillsearchingtruth wrote:
The Zimbabwe argument is fallacious and people like Holter keep perpetuating this same comparison.
Firstly the debts were not held in their own currency but in US dollars so that a huge change in exchange rates would cause a mass change in the outstanding debt and with it rampant money printing.
What caused the collapse in value? The mass land thefts from white farmers which then collapsed output, the economy was heavily reliant upon this sector and with it went any confidence in the currency.
That's not to say that you shouldn't have some Gold but the Gold standard would collapse things too, it's carnage.




Mmm, somehow I get the impression that the Zimbabwean economy wasn't doing so hot before the land evictions began in 2000 either.

Yes, you make some valid points, like the fact that white farmers were evicted from their lands and that agriculture's output plummeted, making Zimbabwe a net importer of food, instead of an exporter. Furthermore, Zimbabwe was involved in a disastrous war in the Democratic Republic of Congo from 1998 until 2002, and since 1 January 2002, the government of Zimbabwe has had its lines of credit at international financial institutions frozen, through US legislation called the Zimbabwe Democracy and Economic Recovery Act of 2001 (ZDERA). Section 4C instructs the Secretary of the Treasury to direct directors at international financial institutions to veto the extension of loans and credit to the Zimbabwean government.[124] According to the United States, these sanctions target only seven specific businesses owned or controlled by government officials and not ordinary citizens.[125] An independent study has shown that the sanctions have adversely affected the welfare of ordinary citizens.[126] last section from Wikipedia; https://en.wikipedia.org/wiki/Zimbabwe#Economy.

Anyway, the Zimbabwean economy was mismanaged in a bad way by incompetent, corrupt politicians. Does this remind us of some other countries out there that are involved in endless wars and mismanagement of their economies by making detrimental trade deals sucking the life blood out of the economy. OK, these wars last longer and it's not so much agriculture that is targeted but the manufacturing base. Because the dollar is still the world's reserve currency this country managed to get away with all this a little longer. But hey, in the end the US dollar is still just a fiat currency backed by nothing at all, a fact the rest of the world is waking up to. When the chickens come home to roost the US dollar will devalue considerably, especially against gold, making life for the bottom 60% hell, as they live pay check to pay check already and have virtually no savings (which would do little good anyway, as these are inflated away), they have merely debt. The bottom 90% will see a substantial decline in living standards.

By using an extreme example which is totally over the top, the point is made that gold might have been a wise alternative to put your money into, but instead it was seen as a risky asset (LOL)! I mean for god's sake, gold has been money for 6,000 years, whereas most fiat currencies do not last more than 40 to 50 years, 60 tops. And yet these people had confidence in their complete schmuck politicians. It it weren't so sad for the Zimbabweans, it would be totally hilarious.

Anyway, I have to admit that the (bullion) banks have played their hand masterfully, by allowing the paper gold price to rise to $ 1900 in 2011, sucking in short-sighted investors so that they would be utterly fleeced by the smash in prices over the 4 years following the peak. It has been proven beyond the shadow of doubt that gold is a barbarous relic, right?
Most people in the west by now must be convinced that the gold price at its very best will flatline for the rest of history, either because they think it can be manipulated that way for ever or because they think gold has lost its role as money. I think both scenarios are highly unlikely; instead gold will be revalued in one go, Friday it closes at $ 1200, the next Monday it opens at $ 2400. Most people will be totally taken by surprise and for them it will be too late. Just like people in Zimbabwe....
Just saying...

"Gold is money. All the rest is credit"
JP Morgan, congressional testimony 1912

"Paper money eventually returns to its intrinsic value -- zero." - Voltaire

"…In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard."

Alan Greenspan, 1966, Objectivist newsletter

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PostPosted: Tue Jun 16, 2015 8:12 am    Post subject: Reply with quote

When asked why Iceland was enjoying such a strong recovery while everyone else is still mired in debt, President Olafur Ragnar Grimmson said in 2013:

“Why are the banks considered to be the holy churches of the modern economy? Why are private banks not like airlines and telecommunication companies and allowed to go bankrupt if they have been run in an irresponsible way? The theory that you have to bail out banks is a theory that you allow bankers enjoy for their own profit, their success, and then let ordinary people bear their failure through taxes and austerity. People in enlightened democracies are not going to accept that in the long run.”

There you have it. Instead of conceding to the crooks who made the mess, Iceland listened to its people. And the data speaks for itself.

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PostPosted: Wed Jun 17, 2015 11:18 am    Post subject: Reply with quote

Well, it looks things are getting interesting in Greece as well (I think they took a hint or two from Iceland);

http://www.zerohedge.com/news/2015-06-17/greek-debt-committee-just-declared-all-debt-illegal-illegitimate-and-odious

Quote:

Greek Debt Committee Just Declared All Debt To The Troika "Illegal, Illegitimate, And Odious"

It was in April when we got a stark reminder of a post we first penned in April of 2011, describing Odious Debt, and why we thought sooner or later this legal term would become applicable for Greece, because two months ago Greek Zoi Konstantopoulou, speaker of the Greek parliament and a SYRIZA member, said she had established a new "Truth Committee on Public Debt" whose purposes was to "investigate how much of the debt is “illegal” with a view to writing it off."

Moments ago, this committee released its preliminary findings, and here is the conclusion from the full report presented below:

All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika’s arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious.

As we predicted over four years ago, Greece has effectively just declared that it will no longer have to default on its IMF (or any other debt - note that the dreaded "Troika" word finally makes an appearance after it was officially banned) simply because that debt was not legal to begin with, i.e. it was "odious."

If so, this has just thrown a very unique wrench in the spokes of not only the Greek debt negotiations, but all other peripheral European nations' Greek negotiations, who will promptly demand that their debt be, likewise, declared odious, and made null and void, thus washing their hands of servicing it again.

And another question: when Greece says the debt was illegal and it no longer has to make the June 30 payment, what will be the Troika's response: confiscate Greek assets a la Argentina, declare involutnary default, sue it in the Hague?

Good luck.

From the full just released report by the Hellenic Parliament commission:

Hellenic Parliament’s Debt Truth Committee Preliminary Findings - Executive Summary of the report

In June 2015 Greece stands at a crossroad of choosing between furthering the failed macroeconomic adjustment programmes imposed by the creditors or making a real change to break the chains of debt. Five years since the economic adjustment programmes began, the country remains deeply cemented in an economic, social, democratic and ecological crisis. The black box of debt has remained closed, and until now no authority, Greek or international, has sought to bring to light the truth about how and why Greece was subjected to the Troika regime. The debt, in whose name nothing has been spared, remains the rule through which neoliberal adjustment is imposed, and the deepest and longest recession experienced in Europe during peacetime.

There is an immediate need and social responsibility to address a range of legal, social and economic issues that demand proper consideration. In response, the Hellenic Parliament established the Truth Committee on Public Debt in April 2015, mandating the investigation into the creation and growth of public debt, the way and reasons for which debt was contracted, and the impact that the conditionalities attached to the loans have had on the economy and the population. The Truth Committee has a mandate to raise awareness of issues pertaining to the Greek debt, both domestically and internationally, and to formulate arguments and options concerning the cancellation of the debt.

The research of the Committee presented in this preliminary report sheds light on the fact that the entire adjustment programme, to which Greece has been subjugated, was and remains a politically orientated programme. The technical exercise surrounding macroeconomic variables and debt projections, figures directly relating to people’s lives and livelihoods, has enabled discussions around the debt to remain at a technical level mainly revolving around the argument that the policies imposed on Greece will improve its capacity to pay the debt back. The facts presented in this report challenge this argument.

All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika’s arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious.

It has also come to the understanding of the Committee that the unsustainability of the Greek public debt was evident from the outset to the international creditors, the Greek authorities, and the corporate media. Yet, the Greek authorities, together with some other governments in the EU, conspired against the restructuring of public debt in 2010 in order to protect financial institutions. The corporate media hid the truth from the public by depicting a situation in which the bailout was argued to benefit Greece, whilst spinning a narrative intended to portray the population as deservers of their own wrongdoings.

Bailout funds provided in both programmes of 2010 and 2012 have been externally managed through complicated schemes, preventing any fiscal autonomy. The use of the bailout money is strictly dictated by the creditors, and so, it is revealing that less than 10% of these funds have been destined to the government’s current expenditure.

This preliminary report presents a primary mapping out of the key problems and issues associated with the public debt, and notes key legal violations associated with the contracting of the debt; it also traces out the legal foundations, on which unilateral suspension of the debt payments can be based. The findings are presented in nine chapters structured as follows:

etc. see original article

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PostPosted: Thu Jul 02, 2015 8:26 am    Post subject: Reply with quote

Indonesian ban on foreign currency payments comes into force
July 01, 2015 | RT


Quote:
The Central Bank of Indonesia has put into force a complete ban on the use of the US dollar and other foreign currencies in all financial transactions in the country to stop the rupiah free fall.

The ban, effective from July 1, 2015, was first announced by the head of Bank Indonesia Eco Yulianto in April.

He said then that the ban is on any transactions, including payments for hotel accommodation, flights, rental property and the payment of wages, as well as fixed prices in any other currency except the Indonesian rupiah. Breaking the law can be punished with imprisonment of up to a year or a fine of $15,000.

However, the central bank later said it made an exception for international companies who will still be allowed to pay their foreign employees in dollars.

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