- Reporting from a fractal universe, fighting oligarchy. About changing the world - "a single human being can change the entire world as long as she don’t care about who takes the credit." - "when you change the way you look at things, the things you look at change."
Visar inlägg med etikett Fiat Currency. Visa alla inlägg
Visar inlägg med etikett Fiat Currency. Visa alla inlägg
lördag 17 augusti 2013
torsdag 15 augusti 2013
Debt: The First 5,000 Years
Here anthropologist David Graeber presents a stunning reversal of conventional wisdom: he shows that before there was money, there was debt. For more than 5,000 years, since the beginnings of the first agrarian empires, humans have used elaborate credit systems to buy and sell goods—that is, long before the invention of coins or cash. It is in this era, Graeber argues, that we also first encounter a society divided into debtors and creditors.
Graeber shows that arguments about debt and debt forgiveness have been at the center of political debates from Italy to China, as well as sparking innumerable insurrections. He also brilliantly demonstrates that the language of the ancient works of law and religion (words like “guilt,” “sin,” and “redemption”) derive in large part from ancient debates about debt, and shape even our most basic ideas of right and wrong. We are still fighting these battles today without knowing it
http://www.amazon.com/Debt-The-First-000-Years/dp/1612191290
Graeber shows that arguments about debt and debt forgiveness have been at the center of political debates from Italy to China, as well as sparking innumerable insurrections. He also brilliantly demonstrates that the language of the ancient works of law and religion (words like “guilt,” “sin,” and “redemption”) derive in large part from ancient debates about debt, and shape even our most basic ideas of right and wrong. We are still fighting these battles today without knowing it
http://www.amazon.com/Debt-The-First-000-Years/dp/1612191290
David Graeber
http://en.wikipedia.org/wiki/David_Graeber
The Great Secret of Banking - David Graeber
http://www.youtube.com/watch?v=gsdxQiom0Zo
David Graeber Explains Why The US Can Never Go Bankrupt Under Its Current Monetary System
Etiketter:
Antichrist,
Bailots. Banker,
Debt,
Derivates,
Fiat Currency,
Monetary Reform
torsdag 17 januari 2013
How Goldman Sachs Helped Mask Greece's Debt
Nick Dunbar, author of 'The Devil's Derivatives', reveals how the country turned to investment bank Goldman Sachs for help getting around the deficit rules.
In his report for Newsnight, some of those who did the deal, talk publicly for the first time.
http://www.youtube.com/watch?feature=player_embedded&v=07-hA9DW-Po
In his report for Newsnight, some of those who did the deal, talk publicly for the first time.
http://www.youtube.com/watch?feature=player_embedded&v=07-hA9DW-Po
Etiketter:
Bailots. Banker,
Fiat Currency,
Monetary Reform
söndag 2 december 2012
Monetary Refom - Fractional Reserve Lending
Much is discussed right now about how to reform the monetary system
given the evident flaws we now see appearing in front of our eyes.
Many, many times in history has the economy gotten in to very deep
problems after it has gone back to a e.g. a gold standard. In fact it is not
the fact money today is a fiat rather than something of worth that constitutes
the problem. The real big problem we need to get away from is the privatization
and centralization of money via the private banking interests and first and foremost
get rid of the completely and utterly insane fractional banking system. This as
it allows for private banking interests to create booms and busts (the so
called business cycle) in the economy by the creation of credit that in fact is
money out of this air and that then banks have the nerve also charge interest on that fraudulent
behavior.
Bottom line:
in a world where money is defined as welth e.g. gold and or silver - the wealthy has the power
In a world where money is defined as credit, that is it is loaned in to existens via the fractional banking system as it is today - the private bankers rule the world.
The people rule in a world where the creation of money is made debt free via the goverment in a decentralized faschion far out of reach of centralised private hands.
http://www.youtube.com/watch?v=Rbq7NRnCQDM&list=UUhZRoC9bMegevAxFmee1oSA&index=9&feature=plcp
Etiketter:
Fiat Currency,
Gold,
Monetary Reform,
silver
fredag 26 oktober 2012
Where is and who really holds all the world gold reserves?
1. Given Germany may have no gold, the Uk apparently has no gold and that US gold holdings in Fort Knox never has been audited (they have no gold) one has to wander - where is and who holds all the worlds reserves of gold?
2. Given goverments now are printing money in order to purchase their own debt (govenrment bonds) and as it because of this in fact is no real bond market as such, well then that whole goverment bond market hinges on one thing and one thing only - the ability to persue perpetual money printing in the form of QE. Anf when thay day appears when the ability to continue printing money isen't there, well then and there is the exit of the bond market (the mother of all bubbles) as we know it.
About German Gold at 13:20
http://www.youtube.com/watch?feature=player_embedded&v=RjQu9qFpStw#!
about Browns bottom when the UK sold 50% of their gold holdings
http://www.youtube.com/watch?v=EzVhzoAqMhU
Ron Paul request auditing of Fort Knox
http://www.youtube.com/watch?v=oipq4F_680A
2. Given goverments now are printing money in order to purchase their own debt (govenrment bonds) and as it because of this in fact is no real bond market as such, well then that whole goverment bond market hinges on one thing and one thing only - the ability to persue perpetual money printing in the form of QE. Anf when thay day appears when the ability to continue printing money isen't there, well then and there is the exit of the bond market (the mother of all bubbles) as we know it.
About German Gold at 13:20
http://www.youtube.com/watch?feature=player_embedded&v=RjQu9qFpStw#!
about Browns bottom when the UK sold 50% of their gold holdings
http://www.youtube.com/watch?v=EzVhzoAqMhU
Ron Paul request auditing of Fort Knox
http://www.youtube.com/watch?v=oipq4F_680A
Etiketter:
Bailots. Banker,
Fiat Currency,
New world order
fredag 21 september 2012
Keiser Report: World Flash Clash Center
In this episode, Max Keiser and Stacy Herbert discuss flash crashes, reputation woes on the U.S. exchanges and sheep screaming at all the fraud. Max also talks to one of the Queen's sheep for its opinion on quantitative easing. In the second half of the show, Max Keiser talks to Jim Rickards, author of Currency Wars, about QE to infinity, the dollar, the euro and a gold standard.
http://www.youtube.com/watch?v=0lkYP1emX8I&feature=player_embedded
http://www.youtube.com/watch?v=0lkYP1emX8I&feature=player_embedded
Etiketter:
Bailots. Banker,
Debt,
Fiat Currency
onsdag 19 september 2012
Bank Of Japan Increases Asset Purchases By Y10 Trillion, Total Program Now Y80 Trillion, Total Debt Still Y1 Quadrillion
It seems like only yesterday that we were lamenting "Einstein rolling over in his grave" as a result of the BOJ's latest increase in its asset purchase program from Y65 to Y70 trillion, although technically it was 5 months ago on April 27. We would excuse Einstein if he were doing cartwheels in his grave right about now, following the BOJ's latest attempt to keep doing what has definitvely failed for 30 years, hoping this time it will be different, as a result of the just announced latest expansion in the asset purchase program's size by yet another Y10 trillion, this time to a total of Y80 trillion. The expansion impacts only JGBs and T-Bills, both of which will be monetized by a further Y5 trillion. Putting this in perspective, Japan's total public debt is Y1 quadrillion, and counting very fast. All other components of the Japanese LSAP program, including CP, Corporate Bonds, ETFs and REITs (yes, unlike the Fed, the BOJ is quite open about its equity and corporate bond purchases) remain the same. Bottom line, just as we predicted back in July 2009, the global race to debase continues unabated, and as a result of QEternity will merely accelerate until the only true currency is gold tungsten.
http://www.zerohedge.com/news/bank-japan-increases-asset-purchases-y10-trillion-total-program-now-y80-trillion
http://www.zerohedge.com/news/bank-japan-increases-asset-purchases-y10-trillion-total-program-now-y80-trillion
Thanks to the Fed's QEternity, BOJ's extra easing has zero impact
Etiketter:
Austerity,
Bailots. Banker,
Fiat Currency,
Monetary Reform,
Peak Debt
Debt crisis: central bank action is work of the devil, says Germany's Jens Weidmann
The head of Germany’s Bundesbank has raised eyebrows across Europe after he appeared to compare Mario Draghi’s bond buying programme with the "devil’s work".
Etiketter:
Bailots. Banker,
deflation,
Fiat Currency,
Inflation,
Monetary Reform,
Quantitative easening
tisdag 18 september 2012
Gerald Celente - Todd Feinburg, WRKO - September 17, 2012
The Trends Journal® is the World's #1 source for the most important trends that are shaping the future. The Trends Journal® shows you how these trends will affect your life, how to profit from them, and what to do to avoid pitfalls. Regardless of business or profession, the Trends Journal® provides insights, strategies and opportunities to help you navigate these treacherous, unprecedented times.
http://www.youtube.com/watch?v=Hrlg14BRPCM&feature=player_embedded#!
http://www.youtube.com/watch?v=Hrlg14BRPCM&feature=player_embedded#!
Etiketter:
Bailots. Banker,
Fiat Currency,
Monetary Reform
måndag 17 september 2012
Bernanke And Draghi Are Not Trying To Save Our Economies
It's time to get this through our heads once and for all: Bernanke And Draghi Are Not Trying To Save Our Economies. Perhaps they would if they could, but the question is moot: they know they can't. Instead, they're trying to save the financial system by stealing our remaining wealth while making us believe that the economy and the financial system - a.k.a. the banking industry - are one and the same thing. They are not, and that's why we see our jobs and benefits and homes go up in thin air and smoke while the S&P looks rosy.
Those last two things are connected. The first are not, no matter that so far most people fall for the sleight of hand. Which is sad today, and will turn to tragedy tomorrow.
http://theautomaticearth.com/Finance/bernanke-and-draghi-are-not-trying-to-save-our-economies.html
Etiketter:
Bailots. Banker,
Fiat Currency,
Monetary Reform,
Quantitative easening
We Are Now Beginning The Last Wave Of Gold's Major Uptrend
On the heels of the Fed announcing QE3, and the gold market surging higher, today King World News wanted to speak with the firm that is calling for $10,000 gold. Paul Brodsky, who co-founded QB Asset Management Company, had this to say about what what the Fed and other central planners are doing: “What I’ve noticed about today’s move is that the Fed embarked on more QE, but without any pretense, it seems, of economic stimulation. I think this is something that investors, economists and others should take note of.”
Paul Brodsky continues:
“It may be ‘crossing the Rubicon’ if you will, from the thinking that the Fed might be able to elicit a cyclical economic rebound, to it looks as though we have a serious debt problem. In an economic environment in the United States in which the budget deficit is on pace to grow at $1 trillion a year, it seems to me that the markets are starting to internalize that this is something bigger than what was previously acknowledged.
We have been arguing for quite some time now that this really isn’t an economic stimulus game that the Fed and other central banks are playing. What they are really trying to do is to de-lever the system....
“We see the $40 billion a month in mortgage backed securities purchases as being a way to put your thumb in the dyke. We think it’s only going to get larger. There is much more of this to come. The frequency of further QE announcements is going to be greater, and it’s ultimately going to lead to much higher resource and precious metals prices.
Gold was up today, but what I really think we are looking at is a fundamental shift in investor psychology in that there is only so much central banks can do in terms of real economic stimulation. Meaning they can’t. So, again, what we are looking at is a deleveraging process that has to take place. There is nothing that fiscal policy can do about it.
We also think we are beginning the next and last wave of gold’s uptrend. In reality, the move today was muted. I would agree with Felix Zulauf’s comment (on KWN) today that you are supposed to buy the dips, and that’s been our strategy for years now.”
Brodsky added: “I would also agree with Felix that we are in the process of witnessing the end of the fiat money system right now. The end result is probably going to be a new global currency regime. It’s the only politically expedient way out.
By the way, the deleveraging that has to take place is the gap between bank assets and base money, and maybe even more than that. There are only two ways to handle this. The first way is to let it deteriorate on its own. That would involve bank system failure and a deflationary depression.
The other way to deleverage is to simply manufacture the base money, which of course destroys the purchasing power of all savings. We believe this second choice is what the central planners have been and will continue to choose. This frankly defines QE. They are confirming it because this is the 3rd round of QE we have seen, and they are going to continue doing more.
The bottom line here is that investors need to make sure they protect their purchasing power as the currencies are destroyed.”
Etiketter:
Fiat Currency,
Gold,
Peak Oil,
silver
torsdag 13 september 2012
In anticipation of a possible QE3 (in December..?)
In the last 30 days (since August 13th), platinum has risen by 18.9%, silver by 18.7%, palladium by 18.4% and gold by 7.6%. All remain well below their nominal record highs (see charts) and more importantly well below their inflation adjusted highs.
While hardly a factor in the Fed's thinking which is due to present its announcement in 4 hours, today's Initial claims report came at 382K, the biggest miss to expectations (370K) in 2 months, and up from last week's naturally upward revised claims of 367K. The 15K jump is the biggest weekly spike in 2 months and 4th largest this year. Just as relevantly, as we warned months ago, those on extended claims continue to run out at a fast pace, with 41K people losing their extended benefits, down by nearly 1.8 million from a year ago, and are forced to seek disability benefits to keep the government dole running. More importantly, and just as Bernanke is doing his best to stoke inflation,producer prices soared by 1.7% in August, up from July's 0.3%, and well above expectations of 1.2%. This was the biggest M/M spike since the 1.9% surge in June of 2009, and was driven primarily by soaring food prices, which however as everyone knows, is not really a factor in the Fed's thinking. "On an unadjusted basis, prices for finished goods climbed 2.0 percent for the 12 months ended August 2012, the largest advance since a 2.8-percent increase for the 12 months ended March 2012." Then again, who out there needs food or energy - inflation is precisely what Bernanke wants, the FOMC will welcome this news with open arms. But at least the Fed will create jobs and get people to give up on renting which is the New Normal buying, and scramble right back into the housing re-bubble.
Etiketter:
deflation,
Fiat Currency,
Gold,
Inflation
onsdag 12 september 2012
Economist Richard Duncan: Civilization May Not Survive 'Death Spiral'
Richard Duncan, formerly of the World Bank and chief economist at Blackhorse Asset Mgmt., says America's $16 trillion federal debt has escalated into a "death spiral, "as he told CNBC.
And it could result in a depression so severe that he doesn't "think our civilization could survive it."
And Duncan is not alone in warning that the U.S. economy may go into a "death spiral."
Since the recession, noted economists including Laurence Kotlikoff, a former member of President Reagan's Council of Economic Advisers, have come to similar conclusions.
Kotlikoff estimates the true fiscal gap is $211 trillion when unfunded entitlements like Social Security and Medicare are included.
However, while the debt crisis numbers are well known to most Americans, the economy hasn't suffered a major correction for almost 4 years.
So the questions remain: Is the threat of collapse for real? And if so, when?
A team of scientists, economists, and geopolitical analysts believes they have proof that the threat is indeed real - and the danger imminent.
One member of this team, Chris Martenson, a pathologist and former VP of a Fortune 300 company, explains their findings:
"We found an identical pattern in our debt, total credit market, and money supply that guaranteesthey're going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.
http://moneymorning.com/ob/economist-richard-duncan-civilization-may-not-survive-death-spiral/
And it could result in a depression so severe that he doesn't "think our civilization could survive it."
And Duncan is not alone in warning that the U.S. economy may go into a "death spiral."
Since the recession, noted economists including Laurence Kotlikoff, a former member of President Reagan's Council of Economic Advisers, have come to similar conclusions.
Kotlikoff estimates the true fiscal gap is $211 trillion when unfunded entitlements like Social Security and Medicare are included.
However, while the debt crisis numbers are well known to most Americans, the economy hasn't suffered a major correction for almost 4 years.
So the questions remain: Is the threat of collapse for real? And if so, when?
A team of scientists, economists, and geopolitical analysts believes they have proof that the threat is indeed real - and the danger imminent.
One member of this team, Chris Martenson, a pathologist and former VP of a Fortune 300 company, explains their findings:
"We found an identical pattern in our debt, total credit market, and money supply that guaranteesthey're going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.
http://moneymorning.com/ob/economist-richard-duncan-civilization-may-not-survive-death-spiral/
Etiketter:
Debt,
Economy,
Fiat Currency
ECB bond plan not game changer but buys time - Roubini
Sept. 7 - Renowned NYU economics professor, Nouriel Roubini, says the ECB's plan to buy government bonds will help the euro zone, but will not solve all its problems.
http://www.youtube.com/watch?v=hz2cIaGwidg
http://www.youtube.com/watch?v=hz2cIaGwidg
Etiketter:
Bailots. Banker,
bonds,
Fiat Currency
måndag 10 september 2012
China buying Euro bonds with Constantin Gurdgiev
In this edition of the show Max interviews Constantin Gurdgiev from twitter.com/GTCost. Constantin talks about whether China's move to buy European bonds is good news or bad news for the Eurozone.
Constantin Gurdgiev is a Russian economist based in Dublin, Ireland. He is a former editor of Business & Finance Magazine. He is an adjunct lecturer in Finance with Trinity College, Dublin and has lectured in Economics at University College Dublin and Johns Hopkins University.
http://www.youtube.com/watch?feature=player_embedded&v=WvzZRLy7gIk#!
Constantin Gurdgiev is a Russian economist based in Dublin, Ireland. He is a former editor of Business & Finance Magazine. He is an adjunct lecturer in Finance with Trinity College, Dublin and has lectured in Economics at University College Dublin and Johns Hopkins University.
http://www.youtube.com/watch?feature=player_embedded&v=WvzZRLy7gIk#!
Etiketter:
Bailout,
Derivates,
Fiat Currency,
globalism
torsdag 6 september 2012
ECB - an unlimited bond- purchase program
Draghi said policy makers agreed to an unlimited bond- purchase program as they try to regain control of interest rates in the euro area. He said the ECB will have a “fully effective backstop to avoid destructive scenarios with potentially severe challenges for price stability.”
http://www.bloomberg.com/news/2012-09-06/u-s-stock-futures-rise-on-ecb-bond-buying-speculation.html
Did the German Bundesbank roll over and die as Die Welt suggest, by yielding to the will of the ECB and Goldman? Or is it merely setting the stage for the inevitable German referendum? Many claim the Italian head of the ECB won today in his ever escalating confrontation with the last remaining German on the ECB governing council, although in reality he is merely doing what he has already done twice before. The outcome will be the same: abject failure to contain the crisis which will not be resolved until and if Europe succeeds in creating a united, Federal state, with one bond issuance authority. That will never happen: after all, 17 European states will never hand over their sovereignty to a third party, especially one which is backstopped by German cash. But it can pretend. In the meantime, Buba will not quietly go, instead it has already stated what it thinks, and what it thinks is that what the ECB is doing (once again) is "tantamount to financing governments by printing banknotes" and that monetary policy is now subjugated to fiscal policy. Full text of the Buba's response below:
http://www.zerohedge.com/news/bundesbank-replies-ecb
The reality is made clear by comparing the ways in which the United States, Britain and Europe handle their public financing.
The U.S. Treasury is by far the world’s largest debtor, and its largest banks seem to be in negative equity, liable to their depositors and to other financial institutions for much larger sums that can be paid by their portfolio of loans, investments and assorted financial gambles.
Yet as global financial turmoil escalates, institutional investors are putting their money into U.S. Treasury bonds – so much that these bonds now yield less than 1%.
By contrast, a quarter of U.S. real estate is in negative equity, American states and cities are facing insolvency and must scale back spending. Large companies are going bankrupt, pension plans are falling deeper into arrears, yet the U.S. economy remains a magnet for global savings.
Britain’s economy also is staggering, yet its government is paying just 2% interest. But European governments are now paying over 7%.
The reason for this disparity is that they lack a “public option” in money creation.
Having a Federal Reserve Bank or Bank of England that can print the money to pay interest or roll over existing debts is what makes the United States and Britain different from Europe.
Nobody expects these two nations to be forced to sell off their public lands and other assets to raise the money to pay (although they may do this as a policy choice). Given that the U.S. Treasury and Federal Reserve can create new money, it follows that as long as government debts are denominated in dollars, they can print enough IOUs on their computer keyboards so that the only risk that holders of Treasury bonds bear is the dollar’s exchange rate vis-à-vis other currencies.
By contrast, the Eurozone has a central bank, but Article 123 of the Lisbon treaty forbids the ECB from doing what central banks were created to do: create the money to finance government budget deficits or roll over their debt falling due.
Future historians no doubt will find it remarkable that there actually is a rationale behind this policy – or at least the pretense of a cover story. It is so flimsy that any student of history can see how distorted it is. The claim is that if a central bank creates credit, this threatens price stability. Only government spending is deemed to be inflationary, not private credit!
http://www.opednews.com/populum/linkframe.php?linkid=142840
Europe’s Transition From Social Democracy to Oligarchy
http://intheendwerealldebt.blogspot.se/2012/02/europes-transition-from-social.html
In fact the ECB now creates "debt free money" and that Article 123 is overruled. Thus this is the solution long promoted by people like e.g. Bill Still amd AIM and Stephen Zarlenga:
Bill Still says Ron Paul WRONG on Gold Standard on Keiser Repo
http://intheendwerealldebt.blogspot.se/2012/01/bill-still-says-ron-paul-wrong-on-gold.html
Only issue is that there are some conditionalitys to the ECB solution:
The ECB & Conditionality
The markets may rally today, yields may fall as the ECB pulled out the BIG words, “without limit” and “no cap.” This is the focus of the market and it is a very wrong focus. The entire ECB scheme is dependent on conditionality and this is the key to all of the hype!
Any action by the ECB will be telegraphed well in advance because of it; if anything happens at all. The ECB has now said that it will do nothing, not anything, without a country applying for assistance and without the agreement of the Stabilization Funds which means that the EU and perhaps the IMF will have to agree. To accept any application from a country then that nation will be audited as part of the process. Bear in mind that now when a country submits its numbers to Eurostat or to the Bank for International Settlements that no one, no fiscal oversight commission, audits the books and records of a nation in Europe. This is true for the sovereign and this is true for the banks domiciled in a country. The audits that have been conducted have all been for the troubled nations that have lined-up for aid. In each case, every case, with Greece being the most notable example the numbers have not been as presented. This was true for Greece, Ireland and Portugal.
So the ECB disavows the bond buying for Portugal, Ireland and Greece and the focus is upon who is coming next which is really Spain and Italy. Spain, by their own tacit admission, uses “dynamic provisioning” as part of their economic policy. They stick to this on the basis of manipulating their reserves in good times and bad times and there is quite an academic argument appended to this notion but what cannot be denied is that it all gets down to fiddling with their books. Consequently it is a good assumption based upon sound logic that their books, the balance sheet for the country and their banks, are not as presented or thought. This is one reason, in my view, why Spain does not want a full bailout because it would mean that the sovereign and the Spanish banks would be subject to an audit and that certain discrepancies would have to be accounted for in front of God and their brethren.
Next we have hard evidence that the EU may not approve any such assistance programs. The Prime Minister of the Netherlands has said “No more money for Greece” while the Finance Minister of Austria has stated quite clearly that Austria has had enough and that Austria will not be giving anymore of her citizen’s money to any other country in Europe. I think both statements are clear enough.
Consequently all of the ECB hype, jargon and fluff have no value if the EU won’t approve any of the aid programs. It is all just rhetoric floating around in the air. Even if the EU approved some program for Spain or Italy it would take months and the ECB has specifically said that they will not act, not buy any bonds, without the approval of the Stabilization Funds. The ECB scheme is cleverly designed and it reminds me of the second round of the European bank stress tests where the methodology was really fraudulent and hid the actuality as Dexia, Bankia and several Austrian banks have gone bust since then after we were assured, in the strongest of terms, that they were safe. The ECB has spoken and promised to buy “without limit” but since it is dependent on an European Union where several nations do not wish to fund I find our current rallies dependent upon an assumption that is faulty and perhaps dangerously faulty in its basis.
Next step is allowing each country to do this themselves as well as QE for the people not the banks.
http://www.bloomberg.com/news/2012-09-06/u-s-stock-futures-rise-on-ecb-bond-buying-speculation.html
Did the German Bundesbank roll over and die as Die Welt suggest, by yielding to the will of the ECB and Goldman? Or is it merely setting the stage for the inevitable German referendum? Many claim the Italian head of the ECB won today in his ever escalating confrontation with the last remaining German on the ECB governing council, although in reality he is merely doing what he has already done twice before. The outcome will be the same: abject failure to contain the crisis which will not be resolved until and if Europe succeeds in creating a united, Federal state, with one bond issuance authority. That will never happen: after all, 17 European states will never hand over their sovereignty to a third party, especially one which is backstopped by German cash. But it can pretend. In the meantime, Buba will not quietly go, instead it has already stated what it thinks, and what it thinks is that what the ECB is doing (once again) is "tantamount to financing governments by printing banknotes" and that monetary policy is now subjugated to fiscal policy. Full text of the Buba's response below:
http://www.zerohedge.com/news/bundesbank-replies-ecb
The reality is made clear by comparing the ways in which the United States, Britain and Europe handle their public financing.
The U.S. Treasury is by far the world’s largest debtor, and its largest banks seem to be in negative equity, liable to their depositors and to other financial institutions for much larger sums that can be paid by their portfolio of loans, investments and assorted financial gambles.
Yet as global financial turmoil escalates, institutional investors are putting their money into U.S. Treasury bonds – so much that these bonds now yield less than 1%.
By contrast, a quarter of U.S. real estate is in negative equity, American states and cities are facing insolvency and must scale back spending. Large companies are going bankrupt, pension plans are falling deeper into arrears, yet the U.S. economy remains a magnet for global savings.
Britain’s economy also is staggering, yet its government is paying just 2% interest. But European governments are now paying over 7%.
The reason for this disparity is that they lack a “public option” in money creation.
Having a Federal Reserve Bank or Bank of England that can print the money to pay interest or roll over existing debts is what makes the United States and Britain different from Europe.
Nobody expects these two nations to be forced to sell off their public lands and other assets to raise the money to pay (although they may do this as a policy choice). Given that the U.S. Treasury and Federal Reserve can create new money, it follows that as long as government debts are denominated in dollars, they can print enough IOUs on their computer keyboards so that the only risk that holders of Treasury bonds bear is the dollar’s exchange rate vis-à-vis other currencies.
By contrast, the Eurozone has a central bank, but Article 123 of the Lisbon treaty forbids the ECB from doing what central banks were created to do: create the money to finance government budget deficits or roll over their debt falling due.
Future historians no doubt will find it remarkable that there actually is a rationale behind this policy – or at least the pretense of a cover story. It is so flimsy that any student of history can see how distorted it is. The claim is that if a central bank creates credit, this threatens price stability. Only government spending is deemed to be inflationary, not private credit!
http://www.opednews.com/populum/linkframe.php?linkid=142840
Europe’s Transition From Social Democracy to Oligarchy
http://intheendwerealldebt.blogspot.se/2012/02/europes-transition-from-social.html
In fact the ECB now creates "debt free money" and that Article 123 is overruled. Thus this is the solution long promoted by people like e.g. Bill Still amd AIM and Stephen Zarlenga:
Bill Still says Ron Paul WRONG on Gold Standard on Keiser Repo
http://intheendwerealldebt.blogspot.se/2012/01/bill-still-says-ron-paul-wrong-on-gold.html
Only issue is that there are some conditionalitys to the ECB solution:
The ECB & Conditionality
The markets may rally today, yields may fall as the ECB pulled out the BIG words, “without limit” and “no cap.” This is the focus of the market and it is a very wrong focus. The entire ECB scheme is dependent on conditionality and this is the key to all of the hype!
Any action by the ECB will be telegraphed well in advance because of it; if anything happens at all. The ECB has now said that it will do nothing, not anything, without a country applying for assistance and without the agreement of the Stabilization Funds which means that the EU and perhaps the IMF will have to agree. To accept any application from a country then that nation will be audited as part of the process. Bear in mind that now when a country submits its numbers to Eurostat or to the Bank for International Settlements that no one, no fiscal oversight commission, audits the books and records of a nation in Europe. This is true for the sovereign and this is true for the banks domiciled in a country. The audits that have been conducted have all been for the troubled nations that have lined-up for aid. In each case, every case, with Greece being the most notable example the numbers have not been as presented. This was true for Greece, Ireland and Portugal.
So the ECB disavows the bond buying for Portugal, Ireland and Greece and the focus is upon who is coming next which is really Spain and Italy. Spain, by their own tacit admission, uses “dynamic provisioning” as part of their economic policy. They stick to this on the basis of manipulating their reserves in good times and bad times and there is quite an academic argument appended to this notion but what cannot be denied is that it all gets down to fiddling with their books. Consequently it is a good assumption based upon sound logic that their books, the balance sheet for the country and their banks, are not as presented or thought. This is one reason, in my view, why Spain does not want a full bailout because it would mean that the sovereign and the Spanish banks would be subject to an audit and that certain discrepancies would have to be accounted for in front of God and their brethren.
Next we have hard evidence that the EU may not approve any such assistance programs. The Prime Minister of the Netherlands has said “No more money for Greece” while the Finance Minister of Austria has stated quite clearly that Austria has had enough and that Austria will not be giving anymore of her citizen’s money to any other country in Europe. I think both statements are clear enough.
Consequently all of the ECB hype, jargon and fluff have no value if the EU won’t approve any of the aid programs. It is all just rhetoric floating around in the air. Even if the EU approved some program for Spain or Italy it would take months and the ECB has specifically said that they will not act, not buy any bonds, without the approval of the Stabilization Funds. The ECB scheme is cleverly designed and it reminds me of the second round of the European bank stress tests where the methodology was really fraudulent and hid the actuality as Dexia, Bankia and several Austrian banks have gone bust since then after we were assured, in the strongest of terms, that they were safe. The ECB has spoken and promised to buy “without limit” but since it is dependent on an European Union where several nations do not wish to fund I find our current rallies dependent upon an assumption that is faulty and perhaps dangerously faulty in its basis.
Next step is allowing each country to do this themselves as well as QE for the people not the banks.
Etiketter:
deflation,
Fiat Currency,
Inflation
Jeff Rubin on "The End of Growth"
Part 1
http://www.youtube.com/watch?v=p_-uomh0iY0
Part 2
http://www.youtube.com/watch?v=QPYPX-57K3o&feature=relmfu
The End of Growth
http://www.amazon.ca/The-End-Growth-Jeff-Rubin/dp/030736089X
and here mr Rubins first book:
Why Your World Is About to Get a Whole Lot Smaller
http://www.amazon.ca/Your-World-About-Whole-Smaller/dp/0307357511/ref=pd_bxgy_b_img_b
http://www.youtube.com/watch?v=p_-uomh0iY0
Part 2
http://www.youtube.com/watch?v=QPYPX-57K3o&feature=relmfu
The End of Growth
http://www.amazon.ca/The-End-Growth-Jeff-Rubin/dp/030736089X
and here mr Rubins first book:
Why Your World Is About to Get a Whole Lot Smaller
http://www.amazon.ca/Your-World-About-Whole-Smaller/dp/0307357511/ref=pd_bxgy_b_img_b
Etiketter:
Debt,
Fiat Currency,
Peak Oil
Peak Oil nu i mainsteam media
Detta skriver nu altså Bloombergs och refererar i sin tur till en analys
gjord av Citygroup.
Det är bara 18 år kvar till 2030....
“If Saudi Arabian oil consumption grows in line with peak power demand,
the country could be a net oil importer by 2030,”Heidy Rehman,
an analyst at the bank, wrote. The country already consumes all its natural-gas
production and plans to develop nuclear power, which pose execution risk amid a
lack of available experts, safety issues and cost overruns, Rehman said.
Den bakomliggande analysen som visar detta
är en model utvecklad av en ameikansk energi expert som heter Jeffry Brown och
hans modell kallas "Export Land Model" eller förkortat ELM. I korthet innebär
det faktum att produktionen av sk konventionell olja redan har nått sin topp
2006 (se videon nedan) och i de flesta länder och regionen även börjat att gå
ned år från år samtidigt som de oljeproducerande ländernas inhemska
oljekonsumtionmer eller mindre exploderar.
Om man tar de största olje procuderande länderna sammantaget dvs Ryssland,
Opec, Venezuela och Mexico som komsumerar bara dessa länder mer än dubbelt det
som Kina konsumerar per år. Och i takt
med att standarnden och generella tillväxten i dessa dessa ekonomier nu byggs ut
i vissa fall tämligen aggressivt så kommer den ihemska konsumtionen öka än mer i
framtiden. Kombinationen minskad
konsumtion med okad inhemsk konsumtion gör att det som faktiskt blir kvar att
exportera går ner i en fantastiskt snabb takt kommande decennier.
Etiketter:
Debt,
Fiat Currency,
Peak Oil
tisdag 4 september 2012
Riding out this Depression on a Deflationary Debt Raft
http://www.youtube.com/watch?feature=player_embedded&v=iquemUNNYY8#!
Then regarding the question "what caused creditsm" Richard Duncan argues it was related to the first and second world wars as they left the gold standard and the goverments share of the overal economy was significantely increased via the creation of credit.
In the US the fact the US oil production peaked 1970 as predicted by Marion King Hubbert seems to correlate indeed very well with the timing of the well over 50 times increase in total market debt owed since before 1970 to today from one trillion to 53 trillion in only 43 years..
Q: If America’s oil production peaked in 1970 and has been declining ever since, how has America been able to feed its own growing demand?
A: Imports from foreign nations.
It is no secret that America is addicted to oil. Our nation’s appetite for oil has been steadily increasing over the last several decades. In 1970, the year of America’s peak oil production, we imported only 24% of our oil from foreign nations. Today, that number has increased to 70%. And it is growing. In fact, each and every day America consumes around 25% of the world’s available oil production. That’s about 18.8 million barrels a day! What makes this number even more staggering is that America only makes up 5% of the global population. This means that the remaining 95% of the world’s population must grow and maintain their economies with only 75% of the world’s oil supplies. Sadly, America’s dependency upon foreign oil has exposed our nation’s obsession with overconsumption. Never before in history has one nation been as dependent upon foreign nations for its own supply of energy as America is today.
http://www.youtube.com/watch?feature=player_embedded&v=iquemUNNYY8
Add to that a very different geopolitical areana as illustrated in the ever increasing political turmoil in the middle east after 1970 as the US domestic oil production peaked and the US has to make sure and secure its oil was imported to the country to an ever increasing extent from the region in the world with the largest oil supply - the middle east..
Now as everybody and everything in the economy, goverments, the private sector, housholds etc are totaly saturated in debt we have hit what only can be described as "Peak Credit. This means were now entering a new era we can define as "The End of Growt":
Part 1
http://www.youtube.com/watch?v=p_-uomh0iY0
Part 2
http://www.youtube.com/watch?v=QPYPX-57K3o&feature=relmfu
The End of Growth
http://www.amazon.ca/The-End-Growth-Jeff-Rubin/dp/030736089X
and here mr Rubins first book:
Why Your World Is About to Get a Whole Lot Smaller
http://www.amazon.ca/Your-World-About-Whole-Smaller/dp/0307357511/ref=pd_bxgy_b_img_b
Then regarding the question "what caused creditsm" Richard Duncan argues it was related to the first and second world wars as they left the gold standard and the goverments share of the overal economy was significantely increased via the creation of credit.
In the US the fact the US oil production peaked 1970 as predicted by Marion King Hubbert seems to correlate indeed very well with the timing of the well over 50 times increase in total market debt owed since before 1970 to today from one trillion to 53 trillion in only 43 years..
Q: If America’s oil production peaked in 1970 and has been declining ever since, how has America been able to feed its own growing demand?
A: Imports from foreign nations.
It is no secret that America is addicted to oil. Our nation’s appetite for oil has been steadily increasing over the last several decades. In 1970, the year of America’s peak oil production, we imported only 24% of our oil from foreign nations. Today, that number has increased to 70%. And it is growing. In fact, each and every day America consumes around 25% of the world’s available oil production. That’s about 18.8 million barrels a day! What makes this number even more staggering is that America only makes up 5% of the global population. This means that the remaining 95% of the world’s population must grow and maintain their economies with only 75% of the world’s oil supplies. Sadly, America’s dependency upon foreign oil has exposed our nation’s obsession with overconsumption. Never before in history has one nation been as dependent upon foreign nations for its own supply of energy as America is today.
http://www.youtube.com/watch?feature=player_embedded&v=iquemUNNYY8
Add to that a very different geopolitical areana as illustrated in the ever increasing political turmoil in the middle east after 1970 as the US domestic oil production peaked and the US has to make sure and secure its oil was imported to the country to an ever increasing extent from the region in the world with the largest oil supply - the middle east..
Now as everybody and everything in the economy, goverments, the private sector, housholds etc are totaly saturated in debt we have hit what only can be described as "Peak Credit. This means were now entering a new era we can define as "The End of Growt":
Part 1
http://www.youtube.com/watch?v=p_-uomh0iY0
Part 2
http://www.youtube.com/watch?v=QPYPX-57K3o&feature=relmfu
The End of Growth
http://www.amazon.ca/The-End-Growth-Jeff-Rubin/dp/030736089X
and here mr Rubins first book:
Why Your World Is About to Get a Whole Lot Smaller
http://www.amazon.ca/Your-World-About-Whole-Smaller/dp/0307357511/ref=pd_bxgy_b_img_b
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