tagged w/ central bankers
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By David P Shirk
Over the news we have been hearing about the idea of congress raising the debt ceiling. It has been pointed out that if it is not raised, then many entitlements will not be paid. On the flip side if the debt ceiling is to be raised even higher to cover the cost of all the programs that were promised, then there will be no way to meet that debt no matter what you raise taxes to. Indeed both of these options present some very serious problems.
If government entitlements and are not paid, and other contracts are not honored, then there is a very high chance that riots will indeed ensue when peoples dependency on receiving government checks is severed. However if the debt is raised to meet those contracts and entitlements for the coming year, then the amount of resulting debt extension will make the consequences for the following year more dire. Qe2 will not suffice as it still results in more government debt that we the people are bound as citizens to pay. Monetizing the debt (increasing the money supply to meet the debt), will only result in even greater damage for reasons to numerous to name.
Yet as serious as this problem sounds, it is at this point irrelevant. The amount of unfunded debt from 2010 going into this year (which is far more than merely raising the debt ceiling can cover) remains a problem that I have not even seen the news address yet (for more information on the exact amount and to whom it is owed, go to http://www.treasurydirect.gov/govt/reports/pd/pd.htm and for the exact breakdown, go to http://www.treasurydirect.gov/govt/reports/pd/feddebt/feddebt_dec10.pdf ). What you must keep in mind is that the number 4,624,007 is not expressed in the dollar amount, but rather in the millions, meaning that the real rolled over debt is 4,624,007,000,000 – 4.6 trillion.
Politicians on the hill have grown complacent to this number. After all, the same number at the end of 2008 was 4.3 trillion. So if we can continue to carry over debt from one year into the next without a catastrophe, why should they pay it any notice? Given this simple way of looking at things, it would seem like the debt can be allowed to simply continue to go up.
Yet here is the part that no politician wants to mention – how the debts were funded, and how were they rolled over. Heck, your average US subject would never even bother to go to http://www.treasurydirect.gov/govt/reports/pd/pd_sbredemptionsissuesbyseries.xls , and find out how this happens. This oversight of tracking how the debt is funded is what will cause the catastrophe. If you want a real jaw dropper as to the impending danger of what is happening, I encourage you to open the link. The amount of bonds outstanding (the money received by the government for the sale of the bonds), is not nearly enough to meet the debt rolled over from 2010 into 2011, let alone to fund this year’s budget. This is why the raising of the debt ceiling is irrelevant. The outstanding debt was 4.6 trillion – the amount of bonds it had to back it was only about 2.2 trillion, meaning that for the first time, we have 2.4 trillion dollars of debt, and absolutely no way to answer it.
In 2008 people like Peter Schiff, Gerald Celente, and Ron Paul warned of this danger. Yet so blind are most people to the nation’s economy, they laughed at them. The three people I just mentioned attempted to break the problem down into laymans terms knowing that most people would be lost if they dug into the specifics – and because people attack what they do not understand, they mocked them. The sad reality is that people missed the point of their arguments completely, and what is coming very soon is the result.
Yet those 3 (amongst many others) made 1 last warning knowing that the spending of government would not slow – and that was the danger of monetizing the debt. Monetizing the debt would mean that the FED would simply print the money into existence. Outside of running the very high risk of creating hyperinflation, there is of course another danger.
The Federal Reserve is not a government entity. It is a private banking institution owned by people who have little to do with our government. Their sole responsibility was to create a ....
http://www.peacefreedomprosperity.com/?p=3872By David P Shirk
Over the news we have been hearing about the idea of congress... more
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By David P Shirk
Technology is a very useful tool, especially if you happen to be a bank or financial institution seeking to maintain control of a nation’s monetary means. Or – a government that hails such nonsense as the only way to bring about order and peace. The truth is that the wheelbarrows of inflated money probably will not happen thanks to the wonders of technology, but what is to come is far worse. The reality is that those who clamor for financial regulation fail to see how such regulation furthers government power at our expense – not the fat cats.
For instance, Qe2 (quantitative easing) has the goal of injecting 500 Billion dollars into the market. Well, that’s the common misconception anyway. Sadly, despite this insane amount of money being tossed about (nearly $1,600 for every living man, woman, and child in the US), I would bet my bottom dollar that at least a third of the US population has never even heard of it. Of the two thirds that have, about one probably thinks it is simply the treasury printing more money, giving it to banks, and the banks will simply be lending it out to we the people to help our finances. The final third is divided, but smell a rat.
The main complaint of Qe2 seems to be the all too real threat of hyperinflation. The most historic example of such a policy gone wrong was after WWI when Germanys’ currency was printed to an excess so extreme that their money became worthless. Too much money, not enough goods. Yet inflation itself has little to do with the price of goods – that is merely the result of inflation. Inflation is in all reality the increase of money supply (hence the term), and until recently, was not measured by the price difference in a gallon of milk (a layman’s example – CPI for the more savvy). Yet the idea that such a thing happening today to such an extreme as in post WWI Germany is a little misrepresented, and therefore people tend to miss the bigger picture.
First off all, we need to remember that the bulk of what is on the banks balance sheets does not exist in terms of money that can be used by anyone at a store. In other words – the money that we use in bills and coinage represents less than 10% of what the banks have on their books. This is nothing new and has been going on for well over 30 years now. So the idea that an increase of $1,600 for every living person in the US will see us all pushing around wheelbarrows full of useless paper money is a little unrealistic. It is this fact however that has caused the US in large to completely ignore the danger of inflation for as long as they have.
So a gallon of milk may have gone up maybe a 30% in the last few decades – big deal. As long as people think of inflation as the increase in the price of groceries, some may just be able to justify that. Yet houses have in most cases gone up about 300%, and they cost far more then groceries. The price of renting an apartment has also skyrocketed percentage wise versus the 30% milk. Gas? Well, we all know that one. As to incomes produced from all this money – fairly flat for the last 30 years.
By not having to print wheelbarrows full of cash to pay for houses etc., and keeping the dollar amount on balance sheets only, the banks have figured out how to inflate a currency without people ever seeing it as a real problem. So money supply has become to the average person what the Greek God Zeus would be to a Christian – a mythical being that possesses no basis in reality. If you cannot see it, then it does not exist. Computers and intranets are needed to track the billions of cashless exchanges made each day. These provide the banks with the means to shift billions of dollars around each day that simply do not exist (at least to us peons anyway). So while many of us use technology like the internet to learn and expand our horizons, the banks use it as a dangerous weapon. I think the irony of that fact can only be eclipsed by the irony that our government places banking institutions as the #1 priority when it comes to cyber protection. Using an unconstitutional institution with an unconstitutional controller funding trillions in government debt while indebting an entire nation, the FED has really outdone itself.
But that is hardly the best part.
Qe2 is not new idea, and was already tried back in 2008. In 2008 the Fed purchased 1.7 trillion in US treasury and mortgages backed securities. That did not work, and we were told repeatedly by Obama, Bernanke, Geitner, etc., that the reason why is that it simply was not enough. That was over $5,400 for every living person in the US (1,700,000,000,000/310,000,000). How did such a large amount of money get thrown around, and at the same time, accomplish nothing?
First off – note what the money actually went to – buying the debt from the government and financial sectors (the ones who hold the mortgage backed securities). Keeping in mind that the Federal Reserve funds the US treasury, prints its money, and controls it, we know that the US Government and the Federal Reserve have a symbiotic relationship. This adds insult to injury. The insult is that those who chose to live within their means have their savings diminished by a body they have no say over. The injury is that those who speak up are either labeled as simpletons for attempting to put this problem into perspective in layman’s terms, or an idiot who dares believe themselves to be smarter than the government and FED.
Second is that the FED said something quite brilliant that pretty much sums up the whole mess. Simple put – the belief of people in a policy is the reality. This is after all how they have managed to get away with robbing us blind since 1913. As long as they can prolong the consequences and create the perception that they are acting in our best interest, the FED is in affect untouchable. Naturally it is not a true statement of reality, but rather how they can even flaunt their strategy, and the majority still does not get it despite hearing it straight from the horse’s mouth so to speak. Their perception on the whole matter has created a temporary reality that in the end brings ruin to entire nations. Government says a debt based economy is a good thing via central control via the FED. Let’s break that idiocy down shall we?
Debt – something that is owed or that one is bound to pay to or perform for another; a liability or obligation to pay or render something; the condition of being under such an obligation. National – of, pertaining to, or maintained by a nation as an organized whole or independent political unit; national affairs; owned, preserved, or maintained by the federal government; peculiar or common to the whole people of a country; devoted to one’s own nation; patriotic; concerning or encompassing an entire nation.
National Debt – money owed by everyone (that by definition is patriotic to pay – gag). $14,000,000,000,000/310,000,000 peop....
http://www.peacefreedomprosperity.com/?p=3867By David P Shirk
Technology is a very useful tool, especially if you happen to be a... more
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A nigh on complete list of every international Central Banker ripped from Official Sites
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mgt23
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1 year ago
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Did you know that the U.S. Dollar has lost 97% of it's purchasing power (value) since 1913, the same year Congress passed the notorious Federal Reserve Act? Few Americans know the truth about the Federal Reserve. The reality: the Federal Reserve is no more a part of the federal government than is Federal Express. The Federal Reserve is a private corporation run by private bankers.
Why should we care?
Read More: http://globalpoliticalawakening.blogspot.com/2010/12/worst-year-ever.htmlDid you know that the U.S. Dollar has lost 97% of it's purchasing power (value)... more
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Now that the game of political musical chairs is over and Republicans will control the House next year, the banksters are busy at work whittling away at provisions contained in the financial regulation bill pushed through Congress earlier this year by the Democrats. As should be expected, the corporate media is mostly mum, although McClatchy ran with a story.
“Lobbyists for Big Finance are working hardest to neutralize the so-called Volcker Rule, which would force big banks to spin off their lucrative proprietary trading operations, in which they invest their own capital in speculative deals,” Kevin G. Hall writes for McClatchy Newspapers.
The measure is named after former Fed mob boss Paul Volcker. It prevents the banksters from betting against trades they made on behalf of their customers, a popular practice until the fuse was lit on the global economy beginning in 2008. Goldman Sachs sold customers overvalued mortgage bonds and then turned around and made secret bets those bonds would default.
Lobbyists are crawling all over the district of criminals like blood thirsty ticks on a swamp dog. They are working to “soften” requirements that Wall Street firms put more “skin in the game” by retaining more mortgage bonds on their books to guard against shoddy lending. They’re also trying to undercut the new Consumer Financial Protection Bureau, according to McClatchy.
Bailout watcher Elizabeth Warren said the Financial Protection Bureau is the strongest financial reform in Obama’s bill. However, considering the bureau’s proposed makeup, it is destined to rolled in like a Trojan horse. “The bureau will consolidate employees and responsibilities from a host of other regulatory bodies, including the Federal Reserve, the Federal Trade Commission, the Federal Deposit Insurance Corporation and even the Department of Housing and Urban Development,” the New York Times reported in September.
The Federal Reserve was established by private bankers — banks and associated businesses owned by the Rockfellers, J.P. Morgan, the Rothschilds, Lazard Freres, Schoellkopf, Kuhn-Loeb, the Warburgs, Lehman Brothers and Goldman Sachs — and exists solely to manipulate and control the nation’s money supply.
Goldman Sachs was a top Obama contributor along with Citigroup, JP Morgan Chase and Morgan Stanley. “Goldman’s connections to the White House and the Obama administration are raising eyebrows at a time when Washington and Wall Street are dueling over how to overhaul regulation of the financial world,” McClatchy reported in April. “Several former Goldman executives hold senior positions in the Obama administration, including Gary Gensler, the chairman of the Commodity Futures Trading Commission; Mark Patterson, a former Goldman lobbyist who is chief of staff to Treasury Secretary Timothy Geithner; and Robert Hormats, the undersecretary of state for economic, energy and agricultural affairs.”
From the very start, the Barry Obama administration was stacked like a crooked card deck withbankster insiders. Out of 14 top cabinet selections, 9 are affiliated with the Bilderberg group, 10 with the Council on Foreign Relations and 5 of are affiliated with the Trilateral Commission.
Now that the mid-term election is safely behind us, the elite plan to dump aspects of the so-called financial reform bill — like protecting consumers from loan sharks and shady investment hucksters — and continue their plan to slow motion implode the economy and take blindsided tax payers to the proverbial cleaners.Now that the game of political musical chairs is over and Republicans will control the... more
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Editor's Note: China wants the G20 to have the authority to "monitor" the Fed. Since the Fed has battled an audit by our own Congress it's doubtful it will happen, but it will be interesting to see if they concede any ground to accommodate global monetary cooperation.
China's state media has issued a new broadside at the US Federal Reserve's move to prime the US economy, suggesting the Group of 20 should monitor policy shifts by the US central bank.
The Xinhua news agency said in a commentary the Fed was "risking the global recovery by following its own track for economic revival" by spending an extra $US600 billion ($A593.65 billion) buying Treasury bonds to stimulate the US economy.
The comments were published just days ahead of two key summits this week - the G20 meeting in Seoul and the Asia-Pacific Economic Co-operation forum in Yokohama, Japan - that are expected to focus on rebalancing global trade.
READ MORE: http://globalpoliticalawakening.blogspot.com/2010/11/china-says-g20-should-monitor-us-fed.htmlEditor's Note: China wants the G20 to have the authority to "monitor"... more
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