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 This was all made possible by their great efforts (that eventually succeeded) to get the Glass-Steagle act repealed.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.
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
Thursday, March 11, 2010
Wednesday, October 07, 2009
Some Observations Regarding Economics
Everybody knows that we're experiencing some tough times. I read a lot of information on economics and finance. My opinion of the current economic situation is that it was predictable. There appears to be two forces at work here, but first I will talk about the monetary situation.
In previous times, numerous substances were used as money. Tobacco, sea shells, tally sticks, salt, gold, silver, etc., have all been used as money. Historically speaking, the substances that functioned as the best forms of money have been gold and silver. I understand this, and a number of people understand this as well. This is the reason why the price of gold and silver are so high today, and why they do a better job of preserving their value, regardless of what happens in the world's financial markets.
While gold and silver are excellent forms of money, they do have some disadvantages. They are bulky and hard to carry around. It is almost impossible to carry around gold for everyday transactions because it is so valuable. And you can forget about using silver for that because it is extremely heavy. Another problem is that they are very rare. Although the rarity of gold and silver make it valuable, it also makes it virtually impossible for them to be used as money because there just isn't enough of it to support world trade. Some of these facts may be the reason why the world's financiers choose to manipulate and suppress the gold and silver commodity exchanges.
So although I know that gold and silver are great for preserving your wealth from inflation and hyperinflationary destruction of financial (paper) assets, everybody does not have this option. With over six billion people in the world today, there just isn't enough gold and silver to make world commerce work. That's just a cold, hard fact. This is why credit is used as money. There is no limit to how much can be produced.
Unfortunately, the same thing that is good about credit is also a weakness of it. Because there is no limit to how much credit can be produced, this can also cause problems in society, and we are experiencing them now. If credit is to be used, there should have been some sort of limit placed on how much would be emitted. The old saying is that 'absolute power corrupts absolutely', and we're seeing this happen with the big banks. Unfortunately, the average person is being given the bill for the wayward antics and tendencies of these banks. They basically got no penalty, while average people are the ones who will pay the penalty and the bill.
Times will probably get tougher for average people, and especially for people that depend upon a job for their income. But people who can take advantage of world trade (outside of the United States), and people who can participate in technological innovations will probably soar ahead with financial growth opportunities. But those who are left back with the old ways of doing things will be left behind. The economic environment is changing, and the person looking for a job will be left behind if s/he does not develop marketable skills that will be in demand today, and in the future.
In previous times, numerous substances were used as money. Tobacco, sea shells, tally sticks, salt, gold, silver, etc., have all been used as money. Historically speaking, the substances that functioned as the best forms of money have been gold and silver. I understand this, and a number of people understand this as well. This is the reason why the price of gold and silver are so high today, and why they do a better job of preserving their value, regardless of what happens in the world's financial markets.
While gold and silver are excellent forms of money, they do have some disadvantages. They are bulky and hard to carry around. It is almost impossible to carry around gold for everyday transactions because it is so valuable. And you can forget about using silver for that because it is extremely heavy. Another problem is that they are very rare. Although the rarity of gold and silver make it valuable, it also makes it virtually impossible for them to be used as money because there just isn't enough of it to support world trade. Some of these facts may be the reason why the world's financiers choose to manipulate and suppress the gold and silver commodity exchanges.
So although I know that gold and silver are great for preserving your wealth from inflation and hyperinflationary destruction of financial (paper) assets, everybody does not have this option. With over six billion people in the world today, there just isn't enough gold and silver to make world commerce work. That's just a cold, hard fact. This is why credit is used as money. There is no limit to how much can be produced.
Unfortunately, the same thing that is good about credit is also a weakness of it. Because there is no limit to how much credit can be produced, this can also cause problems in society, and we are experiencing them now. If credit is to be used, there should have been some sort of limit placed on how much would be emitted. The old saying is that 'absolute power corrupts absolutely', and we're seeing this happen with the big banks. Unfortunately, the average person is being given the bill for the wayward antics and tendencies of these banks. They basically got no penalty, while average people are the ones who will pay the penalty and the bill.
Times will probably get tougher for average people, and especially for people that depend upon a job for their income. But people who can take advantage of world trade (outside of the United States), and people who can participate in technological innovations will probably soar ahead with financial growth opportunities. But those who are left back with the old ways of doing things will be left behind. The economic environment is changing, and the person looking for a job will be left behind if s/he does not develop marketable skills that will be in demand today, and in the future.
Tuesday, September 08, 2009
Housing Meltdown is Far From Over
From my studies and from what I know about economics and other related topics, I suspected that the truth about the housing and banking industries was not being publicized on the network news channels. It may be a good thing, as the public doesn't need to be stampeded into destructive herd behavior. But for the thinking person, you do want to know the truth about things so that you can form an effective strategy for protecting your wealth, and even prospering from the present conditions.
The fact of the matter is that we are nowhere close to a bottom in the real estate market! This is despite all of the 'feel good' rhetoric that is being reported in the mass media. This is just to keep the sheeple from getting disturbed from their comatose mental state. I think that we've already talked about how one of the main goals of the mass media is to narcotize the average person's mind, to keep them docile and compliant.
There are all sorts of things being done to keep the truth away from people. But the truth is self-evident, and will always make itself known and felt. It doesn't matter how many media pundits, advanced-degreed sycophants, industry mouthpieces, and talking heads make public pronouncements that "We are in a recovery." Propaganda and warm, fuzzy feelings do not affect hard economic realities.
The best thing to do is to embrace the truth, while stripping away your emotional reaction(s) to it. Remember that it isn't personal--only business. The world is not out to destroy you. Past actions of people have led us to this situation. It seems to repeat itself periodically throughout human history. The times & places change, but the market meltdowns remain the same. It must be human nature. Study the previous market meltdowns, and you'll learn what you can do to protect yourself and your wealth during this one. The old saying is that,"There is nothing new under the sun."
Check out the following video for your further edification of the statements above:
The fact of the matter is that we are nowhere close to a bottom in the real estate market! This is despite all of the 'feel good' rhetoric that is being reported in the mass media. This is just to keep the sheeple from getting disturbed from their comatose mental state. I think that we've already talked about how one of the main goals of the mass media is to narcotize the average person's mind, to keep them docile and compliant.
There are all sorts of things being done to keep the truth away from people. But the truth is self-evident, and will always make itself known and felt. It doesn't matter how many media pundits, advanced-degreed sycophants, industry mouthpieces, and talking heads make public pronouncements that "We are in a recovery." Propaganda and warm, fuzzy feelings do not affect hard economic realities.
The best thing to do is to embrace the truth, while stripping away your emotional reaction(s) to it. Remember that it isn't personal--only business. The world is not out to destroy you. Past actions of people have led us to this situation. It seems to repeat itself periodically throughout human history. The times & places change, but the market meltdowns remain the same. It must be human nature. Study the previous market meltdowns, and you'll learn what you can do to protect yourself and your wealth during this one. The old saying is that,"There is nothing new under the sun."
Check out the following video for your further edification of the statements above:
Friday, August 08, 2008
Tuesday, January 16, 2007
Some Information on Suppressed Economics
I'm going to share some articles that deal with macroeconomics and how it interfaces with precious metals/hard assets and the larger investment markets. I won't write my own dissertation, but I will share a bit of commentary and offer some excellent articles that I've found (as usual). I haven't done my normal reading and research on the investment and precious metals lately, but something brought me back to these topics because they are critical if you want to have an understanding of what is really going on in the investment and financial arenas. I found the articles on the Gold Eagle articles web site. It's a site that's mostly for serious investors and academics interested in a different take on the financial world from what is offered on CNBC and other mainstream sources. They usually add articles/editorials from prominent people in the investment and financial arenas, so you may want to bookmark the above link and visit it regularly. You'll catch on to some of the technical jargon if you just look up the words that you don't understand. If you need an explanation, leave me a message or write the author.
Well, the first article is entitled Toilet Paper is Worth More Than USD's. I loved that title, even though it isn't good news for Americans. The basic premise is one that I've been trumpeting for a while. The US Dollar (USD) is being systematically destroyed by the US government. Policies that have been implemented by presidents and governments since LBJ (or even earlier) have all engineered these events. Public policy was implemented that strongly rewarded companies that utilized debt financing in relation to companies that used equity financing for capital investment. It used to be that corporations would use what was termed retained earnings to finance capital expenditures. The term retained earnings is just an MBA way to say savings from profits. But the bankers found that they couldn't earn interest on that, so they had the government agents change the laws to make it extremely unprofitable for corporations/companies to use the savings from operations. Now, virtually all corporations are indebted to (if not actually owned de facto by) the banks. This puts all corporations under the control of the bankers since the creditor is superior in authority to the debtor.
The article in question is brief, but the author gives out a lot of pertinent information on the USD, precious metals, and some of the dynamics of world finance and economics. He doesn't get too deep with the technical language of finance, but imparts the necessary information for laypeople on these issues. I don't claim that you will have a total understanding of finance from the article, but you will have a better understanding of it. Remember that the specialists in topics get paid by confusing laypeople so that they believe that they can't understand the concepts. But economics and finance are issues that ALL people should understand because these are the things that will affect every area of the lives of everyone, whether or not they are active in the financial markets.
The next article speaks more on topics regarding our understanding of the coming credit collapse and the study of monetary issues. We must understand that paper money (a misnomer/oxymoron) is relatively new on the scene in reference to the things that have been used as financial media (i.e., money). As much as I support the gold standard, it probably would not work (in its pure form) due to issues addressed in this article. But this article does give a lot of information that will greatly assist you in your understanding of monetary issues. It is longer than the first article, but I think that you will find it invaluable in increasing your financial intelligence. The author (a professor of science and applied mathematics) also gives an excellent explanation of how the use and function of bonds has been altered so that bonds are now financial instruments that are being used to steal from producers AND savers. This is a very interesting development that turns most mainstream financial theory on its head. I'll leave the rest of the article for you to discover at your leisure.
I'll go over the last 2 articles together as they are both covering similar topics. I found this article to be very succinct and direct. It is a quick, short read. The author gives his honest opinion about the future of the dollar, and the facts all point to the conclusion that there is simply NO WAY that there will not be a significant devaluation of the USD. The fact of the matter is that the USD (as are all other paper currencies on the planet) are all debt instruments. Go retrieve one of those things you call a dollar or currency out of your pocket and read what it says on the very top. It says 'Federal Reserve Note'. I just went to dictionary.com, and it defines a note as: "a paper acknowledging a debt and promising payment." The other pertinent definition states: "a certificate, as of a government or a bank, accepted as money." Notice that neither definition stated that a note is an asset, nor did it actually say that it was money! All this note business notwithstanding, the budget deficits and the trade deficits are wreaking havoc with the US economy, and unfortunately, we are in the terminal stages of the decline and failure of the USD. Just make sure that you understand that those 'talking heads' that you know and love on the television are paid six- and seven-figure salaries to keep you from learning the facts that are being presented in this information that I'm sharing with you! So if/when you wonder or think, "The financial experts on television don't say these things", just know that they are paid not to give out this type of information, even if they know the truth of this material that I'm introducing to you. They'll NEVER level with you!
So read closely, and make sure that you read with an open mind. Don't think of the information as being scary or pessimistic. The part that would be sad is if you had no idea of what the future holds for the financial condition of America, and the world. Would you rather have your head continue to be filled with lies, misconceptions and other drivel? There is power in the truth. The only way that you can prepare for the future is to have an accurate, complete understanding of things. The truth is liberating because it enables you to make effective plans for the future. If you don't know what's really going on in the world, how could you ever make any plans that work? Remember, your family, children and friends (and their future) are depending on you...
Well, the first article is entitled Toilet Paper is Worth More Than USD's. I loved that title, even though it isn't good news for Americans. The basic premise is one that I've been trumpeting for a while. The US Dollar (USD) is being systematically destroyed by the US government. Policies that have been implemented by presidents and governments since LBJ (or even earlier) have all engineered these events. Public policy was implemented that strongly rewarded companies that utilized debt financing in relation to companies that used equity financing for capital investment. It used to be that corporations would use what was termed retained earnings to finance capital expenditures. The term retained earnings is just an MBA way to say savings from profits. But the bankers found that they couldn't earn interest on that, so they had the government agents change the laws to make it extremely unprofitable for corporations/companies to use the savings from operations. Now, virtually all corporations are indebted to (if not actually owned de facto by) the banks. This puts all corporations under the control of the bankers since the creditor is superior in authority to the debtor.
The article in question is brief, but the author gives out a lot of pertinent information on the USD, precious metals, and some of the dynamics of world finance and economics. He doesn't get too deep with the technical language of finance, but imparts the necessary information for laypeople on these issues. I don't claim that you will have a total understanding of finance from the article, but you will have a better understanding of it. Remember that the specialists in topics get paid by confusing laypeople so that they believe that they can't understand the concepts. But economics and finance are issues that ALL people should understand because these are the things that will affect every area of the lives of everyone, whether or not they are active in the financial markets.
The next article speaks more on topics regarding our understanding of the coming credit collapse and the study of monetary issues. We must understand that paper money (a misnomer/oxymoron) is relatively new on the scene in reference to the things that have been used as financial media (i.e., money). As much as I support the gold standard, it probably would not work (in its pure form) due to issues addressed in this article. But this article does give a lot of information that will greatly assist you in your understanding of monetary issues. It is longer than the first article, but I think that you will find it invaluable in increasing your financial intelligence. The author (a professor of science and applied mathematics) also gives an excellent explanation of how the use and function of bonds has been altered so that bonds are now financial instruments that are being used to steal from producers AND savers. This is a very interesting development that turns most mainstream financial theory on its head. I'll leave the rest of the article for you to discover at your leisure.
I'll go over the last 2 articles together as they are both covering similar topics. I found this article to be very succinct and direct. It is a quick, short read. The author gives his honest opinion about the future of the dollar, and the facts all point to the conclusion that there is simply NO WAY that there will not be a significant devaluation of the USD. The fact of the matter is that the USD (as are all other paper currencies on the planet) are all debt instruments. Go retrieve one of those things you call a dollar or currency out of your pocket and read what it says on the very top. It says 'Federal Reserve Note'. I just went to dictionary.com, and it defines a note as: "a paper acknowledging a debt and promising payment." The other pertinent definition states: "a certificate, as of a government or a bank, accepted as money." Notice that neither definition stated that a note is an asset, nor did it actually say that it was money! All this note business notwithstanding, the budget deficits and the trade deficits are wreaking havoc with the US economy, and unfortunately, we are in the terminal stages of the decline and failure of the USD. Just make sure that you understand that those 'talking heads' that you know and love on the television are paid six- and seven-figure salaries to keep you from learning the facts that are being presented in this information that I'm sharing with you! So if/when you wonder or think, "The financial experts on television don't say these things", just know that they are paid not to give out this type of information, even if they know the truth of this material that I'm introducing to you. They'll NEVER level with you!
So read closely, and make sure that you read with an open mind. Don't think of the information as being scary or pessimistic. The part that would be sad is if you had no idea of what the future holds for the financial condition of America, and the world. Would you rather have your head continue to be filled with lies, misconceptions and other drivel? There is power in the truth. The only way that you can prepare for the future is to have an accurate, complete understanding of things. The truth is liberating because it enables you to make effective plans for the future. If you don't know what's really going on in the world, how could you ever make any plans that work? Remember, your family, children and friends (and their future) are depending on you...
Thursday, May 04, 2006
The Financial Debacle Marches On
Slowly, but surely, economic conditions in the United States are deteriorating. It is actually happening all around the world as a result of the global nature of the economic systems that have been constructed and interlinked. In addition, they are all using fiat currencies (i.e., currencies with no intrinsic value, created arbitrarily). The falling value of these currencies is the result of unrestrained issuance of credit instruments, such as options(especially over-the-counter, custom-made instruments), futures contracts, interest rate swaps, etc. I won't bore you with all of the technical details, but suffice it to say that things are getting 'interesting'.
I'll just point you to a couple of articles that break this phenomenon down into easy to grasp concepts, unlittered with all the technical jargon that alleged experts use to hide the facts. This article here already acknowledges the fact that the US Dollar is being destroyed. I remember hearing that Paul Volker, the Federal Reserve Chairman in the '70s, saying that they were conducting the 'controlled demolition' of the US economy. From what I've seen over the years, I must readily admit that this is the case. From my perspective, it would appear that they are preparing to mask the hyperinflation that they plan on instituting in the near future. Let's be real, they've already been hyperinflating the US currency, but are so blatant with it now that they have stopped publishing the M3 measure of the money supply! If that isn't a tacit admission of future hyperinflation, there isn't one in existence! In summary, the article says that the only way that conscious people will save themselves from the destruction of most paper-backed (how's that for an oxymoron) financial instruments will be to invest in hard assets (i.e., precious metals, collectibles, fossil fuels, commodities, and the like).
The other article goes into depth in dealing with the ramifications of the market dynamics at work today. We will probably experience rising costs for most products due to the erosion of the value of the Federal Reserve Note (aka., U.S. Dollars). In America, the people have become complacent about the value of the Dollar and its value. But the days of the power of the American Dollar are now a thing of the past. Many experts forsee that the Dollar could easily lose 50% of its value in the next year or two. Uninformed people may scoff at the impact of this, but they won't be scoffing when the prices of everything doubles, all whilst incomes remain the same. But by the time that these events transpire, it will be too late to protect yourself from it. That is why I'm referring you to these articles now. Remember the story of the Ant and the Grasshopper. You can't prepare for an event after it arrives. They say that a word to the wise is superfluous. PROTECT YOURSELF!!!
I'll just point you to a couple of articles that break this phenomenon down into easy to grasp concepts, unlittered with all the technical jargon that alleged experts use to hide the facts. This article here already acknowledges the fact that the US Dollar is being destroyed. I remember hearing that Paul Volker, the Federal Reserve Chairman in the '70s, saying that they were conducting the 'controlled demolition' of the US economy. From what I've seen over the years, I must readily admit that this is the case. From my perspective, it would appear that they are preparing to mask the hyperinflation that they plan on instituting in the near future. Let's be real, they've already been hyperinflating the US currency, but are so blatant with it now that they have stopped publishing the M3 measure of the money supply! If that isn't a tacit admission of future hyperinflation, there isn't one in existence! In summary, the article says that the only way that conscious people will save themselves from the destruction of most paper-backed (how's that for an oxymoron) financial instruments will be to invest in hard assets (i.e., precious metals, collectibles, fossil fuels, commodities, and the like).
The other article goes into depth in dealing with the ramifications of the market dynamics at work today. We will probably experience rising costs for most products due to the erosion of the value of the Federal Reserve Note (aka., U.S. Dollars). In America, the people have become complacent about the value of the Dollar and its value. But the days of the power of the American Dollar are now a thing of the past. Many experts forsee that the Dollar could easily lose 50% of its value in the next year or two. Uninformed people may scoff at the impact of this, but they won't be scoffing when the prices of everything doubles, all whilst incomes remain the same. But by the time that these events transpire, it will be too late to protect yourself from it. That is why I'm referring you to these articles now. Remember the story of the Ant and the Grasshopper. You can't prepare for an event after it arrives. They say that a word to the wise is superfluous. PROTECT YOURSELF!!!
Sunday, January 08, 2006
Dollar Imperialism
This article is a great resource for those who want to understand how modern imperialism is conducted. Sending in the army is an old way to conduct imperialism and colonialism. Even when they do it today, as evidenced in Iraq, they do it with propaganda and good-sounding reasons and justifications for it. Notice how all of the excuses used to attack Iraq have proven to be totally false and specious (i.e., weapons of mass destruction, unseating Hussein, saving the Iraqi people, etc.). Neocolonialism is conducted by economic means. This article, as most of the ones written by Dr. Norman Livergood, is a must-read. Once again, prepare to have your mind expanded if you weren't aware of these facts.
Thursday, July 21, 2005
Why Do YOU work so hard?
I found a good article, a bit off of the beaten path. It was interesting. One that makes you stop and wonder what you're doing. Sometimes, we need to stop and really think about what we're doing and why we're doing it. I think that we're so conditioned to conform that we never really stop to think about what we're doing, and what we're accomplishing in our work. Most times, we're climbing, fighting to get up the ladder. We finally get to the top rung, only to discover that the ladder is propped against the wrong wall... Very disheartening. So try to stop and take a good look at where your ladder is placed, and if you're really heading in the direction that you want to go.
Subscribe to:
Posts (Atom)