I've seen 2 articles that summarize the major problems with the US economy. The garbage on mainstream news that passes for truth is merely propaganda to keep people complacent with the status quo.
If you do not learn the facts about the US economy, you may lose all of your savings. Even if the FDIC insurance gives you the nominal value of your bank deposits in the case of a financial catastrophe (which is doubtful since the FDIC only has approximately 3-5% of total bank deposits in their possession), your deposits will be paid with money the government creates from inflation. This means that the value of your dollars will be reduced. In short, your spending power will diminish.
The first article is entitled US Policies Will Fail to Avert Hyperinflation. This is a great article that speaks about the major problems that make a financial recovery in America improbable. But it also outlines the steps that we can take to rebuild and repair the US economy. The road is not an easy one, but it will be easier to make the changes while we have a chance rather than having no other alternative.
The worst part of this situation is that instead of people facing the facts and acting responsibly, we continue to embrace delusions, lies and false promises. This is not good, and the worst is yet to come, especially if changes are not made. The current financial policy virtually guarantees that financial destruction and economic hardship are in the future of the United States. Lies, deception and fraud are not a solid foundation for long-term economic prosperity. That's a self-evident fact.
The second article is entitled Financial Fraud on Wall Street. This is a short article that explains the fact that there is still massive fraud occurring on Wall Street. The bottom line is that if the banks were honest, they would acknowledge that they are all insolvent. Government collusion and connections keep this truth from being accepted. The banks can get bailouts and pretend to be solvent, and they can keep 'earning' their fat bonuses. But the massive bailouts are creating the financial environment that leads to economic calamity. Short term gain leading to long term pain.
Everybody in the financial community knows about all of this fraud and theft. The Justice Department, the SEC, the CFTC, and the rest of the regulatory agencies know what is going on. It's a mass collusion to maintain the current state of operations. From what I've seen, the plan is for the bankers to continue to earn massive amounts of money, and then when the system melts down, they then pass the bill to the people. But meanwhile, they will have taken their obscene profits and used them to purchase tangible assets. So when the US Dollar (and most other fiat currencies) collapses, they will be relatively unscathed, and will still have the ability to stay wealthy, while normal people will become the equivalent of 21st century serfs.
Remember: wealth is neither created or destroyed--it only changes hands. This will be one of the greatest shifts in wealth in history. Don't be an ambivalent dupe.
Monday, March 29, 2010
Thursday, March 11, 2010
Consolidation of Banking
I've been talking about economics and what is happening with banking for a while now. The fact of the matter is that there is a great consolidation of banking that has been initiated with this 'banking crisis' that has been in effect lately. Although the mainstream press would have you believe that it is the result of stupid, mistaken, idiotic bankers who are making errors, this is not plausible.
Virtually all of the people who are in charge of banks, banking and government policies are highly credentialed (i.e., have Ph.D.'s and other college degrees from mostly Ivy League colleges). This effectively negates the assertion that these people do not know what they are doing. I say that not only do they know exactly what they are doing, but that they are succeeding at what they have already planned to do.
Let's look at this logically. The banks made massive amounts of money from lending all through the creation of the 'Subprime Banking Crisis' before it was a crisis. This was all made possible by their great efforts (that eventually succeeded) to get the Glass-Steagle act repealed. This law was passed after the Great Depression of 1929 to prevent banking organizations from performing standard banking operations and investment banking simultaneously to minimize 'moral hazards' (i.e., a euphemism for stealing, plunder, profiteering and other scandalous behaviors).
So the banks (along with their paid cronies in government) made obscene amounts of money from this. This is in addition to their realizing astronomical profits from derivatives trading, which is mostly done 'off-the-books' because there is no standardized, regulated market for derivatives. They are virtually all customized transactions, and are therefore not regulated, not public and are difficult to value. It's like basically being able to stack the proverbial Casino in your favor.
But the ugly realities of making bad loans and continually making excessive bets have led to major structural problems in banking. So when the 'cookie jar broke' and the banks were about to all go bankrupt, they pressured their friends in D.C. to help them out, and that's exactly what they did. We know it as the TARP program, which basically amounts to 'corporate welfare'. Instead of the many trillions of 'investments' being valued at their actual market value, the government bailouts allowed the banks to keep their face values so that the banks would not experience actual losses. They were allowed to maintain the facade of being solvent, although the truth is that they are all technically bankrupt.
So for all of this, the People of the United States were given the bill for all of this. The payment for this will be through layoffs, higher taxes, less services, the collapse of local and state governments, inflation and/or deflation that will greatly erode the wealth of average people, and possibly totalitarian fascist police state provisions to keep the masses from holding the government and corporate people responsible for these events responsible.
I know I've covered a lot of ground in these few paragraphs, but I didn't want to overwhelm you with a lot of technical jargon that may confuse you. But I have found a great article that goes into great depth about this situation. It is lengthy, but if you can absorb the content and meaning of this article, you will have a much better understanding of where the economy is, and what is really going on in the world. You can forget the crap that they're feeding you on MSNBC and similar financial 'news' outlets because that drivel is merely designed to keep the sheep calm while they are being fleeced. This is some of the most important information that you can get for yourself, your family and your country. It will affect every facet of your life, and the lives of the people you know.
You may think I'm crazy, but you owe it to yourself to step outside of the corporately-controlled media and do some thinking for yourself. Running multi-trillion dollar budget deficits just isn't sustainable on a long-term basis. It appears to me that those who control governments and economies are purposely running all of the world's economies into the ground so that they can institute this One-World Government and One-World Currency. The old saying is that 'nothing happens by accident in politics', and you can best believe that with trillions of dollars in the balance, there are forces working to control them and gain as much of that loot as they possibly can. Don't be naive. Face reality and deal with it, because it will definitely deal with you one day! It has a nasty habit of popping up at the most inopportune moments.
Virtually all of the people who are in charge of banks, banking and government policies are highly credentialed (i.e., have Ph.D.'s and other college degrees from mostly Ivy League colleges). This effectively negates the assertion that these people do not know what they are doing. I say that not only do they know exactly what they are doing, but that they are succeeding at what they have already planned to do.
Let's look at this logically. The banks made massive amounts of money from lending all through the creation of the 'Subprime Banking Crisis' before it was a crisis. This was all made possible by their great efforts (that eventually succeeded) to get the Glass-Steagle act repealed. This law was passed after the Great Depression of 1929 to prevent banking organizations from performing standard banking operations and investment banking simultaneously to minimize 'moral hazards' (i.e., a euphemism for stealing, plunder, profiteering and other scandalous behaviors).
So the banks (along with their paid cronies in government) made obscene amounts of money from this. This is in addition to their realizing astronomical profits from derivatives trading, which is mostly done 'off-the-books' because there is no standardized, regulated market for derivatives. They are virtually all customized transactions, and are therefore not regulated, not public and are difficult to value. It's like basically being able to stack the proverbial Casino in your favor.
But the ugly realities of making bad loans and continually making excessive bets have led to major structural problems in banking. So when the 'cookie jar broke' and the banks were about to all go bankrupt, they pressured their friends in D.C. to help them out, and that's exactly what they did. We know it as the TARP program, which basically amounts to 'corporate welfare'. Instead of the many trillions of 'investments' being valued at their actual market value, the government bailouts allowed the banks to keep their face values so that the banks would not experience actual losses. They were allowed to maintain the facade of being solvent, although the truth is that they are all technically bankrupt.
So for all of this, the People of the United States were given the bill for all of this. The payment for this will be through layoffs, higher taxes, less services, the collapse of local and state governments, inflation and/or deflation that will greatly erode the wealth of average people, and possibly totalitarian fascist police state provisions to keep the masses from holding the government and corporate people responsible for these events responsible.
I know I've covered a lot of ground in these few paragraphs, but I didn't want to overwhelm you with a lot of technical jargon that may confuse you. But I have found a great article that goes into great depth about this situation. It is lengthy, but if you can absorb the content and meaning of this article, you will have a much better understanding of where the economy is, and what is really going on in the world. You can forget the crap that they're feeding you on MSNBC and similar financial 'news' outlets because that drivel is merely designed to keep the sheep calm while they are being fleeced. This is some of the most important information that you can get for yourself, your family and your country. It will affect every facet of your life, and the lives of the people you know.
You may think I'm crazy, but you owe it to yourself to step outside of the corporately-controlled media and do some thinking for yourself. Running multi-trillion dollar budget deficits just isn't sustainable on a long-term basis. It appears to me that those who control governments and economies are purposely running all of the world's economies into the ground so that they can institute this One-World Government and One-World Currency. The old saying is that 'nothing happens by accident in politics', and you can best believe that with trillions of dollars in the balance, there are forces working to control them and gain as much of that loot as they possibly can. Don't be naive. Face reality and deal with it, because it will definitely deal with you one day! It has a nasty habit of popping up at the most inopportune moments.
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