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

Hugo Price and Max Keiser can save Greece, edited for English

http://www.youtube.com/watch?feature=player_embedded&v=DZb3AZvTZe8#!

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.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/13_We_Are_Now_Beginning_The_Last_Wave_Of_Golds_Major_Uptrend.html 

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.

http://www.zerohedge.com/news/monetary-%E2%80%9Cfloodgates%E2%80%9D-and-geopolitical-unrest-support-precious-metals

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.

http://www.zerohedge.com/news/jobless-claims-spike-fourth-largest-2012-producer-prices-surge-most-june-2009

Jim Rogers - 2012 to 2015

http://www.youtube.com/watch?v=l-c0If35Ab0&feature=g-vrec

The Gold Solution is a Lie - Bill Still

http://www.youtube.com/watch?v=WVlqwJ00LMU&list=UUhZRoC9bMegevAxFmee1oSA&index=1&feature=plcp

The first 2 minutes of Max Keiser's latest is so interesting regarding the von Mises Institute.

https://www.youtube.com/watch?feature=player_embedded&v=hBHcpxxsq8w#!

Many are questioning now -- for the first time -- the previously accepted dogma that gold is good. Why do smart folks like Peter Schiff, Ed Griffin and Ron Paul refuse to take a fresh look at this question when they are spouting the same philosophy that J.P. Morgan espoused 100 years ago.

My take on Ed Griffin is that he is a patriot and well-intended. He, like Ron Paul, grew up at that time when the von Mises folks were in their ascendency. Their real agenda was hidden. Schiff, Griffin and Paul would have to admit they were wrong. They would have to admit that the von Mises/old school Libertarians were -- at best -- nothing but anarchists -- and worse than that, plutocrats. 

The von Mises folk believe that the average person is too stupid to effectively participate in self-governance, so, therefore, all governance should default to non-governance??? History clearly shows that a state of non-governance will quickly default into the hands of the few -- the crown and its banks -- plutocracy. In either case, they do not believe in humanity's thousand-year great experiment in self-governance. 

Freedom is a delicate balance between too much governance and too little. What the von Mises folk won't admit is that serfdom exists at either end of that balance. Von Mises folk don't realize that the anarchism professed openly by Prof. Murray Rothbard & company does not yield maximal human political freedom. Nature abhors a vacuum. Every anarchy in world history is followed in short order by tyranny and maximal centralization of power. 

Ed Griffin and Ron Paul would rather go to their graves than admit they had swallowed this poison pill of the last 4 decades, hook, line and sinker.

I'm studying J.P. Morgan and the Rockefellers right now. Morgan constantly supported the gold standard calling it "sound money." He also considered himself a pirate -- oops, I mean a "privateer" -- in the service of the British Crown and the City. That's why he called all 4 of his yachts, "Corsair", and painted them black. Not surprisingly, he stopped short of flying the "Jolly Roger", however. 

Gold money is the ultimate centralization of the money power. Yes, it IS sound money. The quantity is easily controlled, but it does not democratize the money power to operate to the benefit of we, the people. It centralizes it into the hands of those few best able to buy up the commodity serving as the monetary base -- gold. This would, in fact, be the bankers.

I believe that a sovereign money must serve the public interest -- by definition.
I believe that gold money does not serve the public interest.
I believe power should be decentralized to the maximum extent which is politically practical. Too much decentralization slips over into anarchy and yields the same as too much centralization in the first place.

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

What the Economic Crisis Really Means - and what we can do about it

Doing It Ourselves aims to broaden understanding of the debt crisis and peak resources and encourage action for the sake of personal preparedness, happiness and ethical living. This animation sums up the key challenges facing our global society of credit crisis and resource scarcity and describes a path we can take to a happier life, now and in the future
http://www.youtube.com/watch?feature=player_embedded&v=euhkIesmW7E#!

The Gold Solution - Bill Still

http://www.youtube.com/watch?feature=player_embedded&v=WVlqwJ00LMU#!

The Lost Sience of Money

Part 1
http://www.youtube.com/watch?v=1l3OxMAF7Rk&feature=related

Part 2
http://www.youtube.com/watch?v=h_2Wo0RRkQU&feature=relmfu

Truths behind global debt crisis with Steve Keen from Debtdeflation.com.

In this edition of the show Max interviews Steve Keen from Debtdeflation.com. It has been five years since global debt crisis began. The debt is now so great that it can no longer be hidden. Max discusses the issue with Steve to see what triggered the current debt crisis, what the response to it was and where we stand now. Steve also comments on the latest global debt crisis and banker's role in the current situation.Steve Keen is a professor in economics and finance at the University of Western Sydney and the author of Debunking Economics.
http://www.youtube.com/watch?v=6NLx0tT5AIs&feature=player_embedded#!

How about Quanitative Easening for the people?

The one economic benefit of QE has been to help governments finance the huge deficits caused by recession without having to raise taxes, slash public spending or face Greek-style bankruptcy. In this sense, QE has certainly prevented the U.S. and Britain from suffering worse outcomes, but it has failed to stimulate employment or economic growth. This is exactly what Japan has experienced for 20 years – and as in Japan, additional rounds of QE now will merely act as an anesthetic, perpetuating stagnation but discouraging more effective stimulus measures.

One such radical measure is too controversial for any policymaker to mention publicly, although some have discussed it in private: Instead of giving newly created money to bond traders, central banks could distribute it directly to the public. Technically such cash handouts could be described as tax rebates or citizens’ dividends, and they would contribute to government deficits in national accounting. But these accounting deficits would not increase national debt burdens, since they would be financed by issuing new money, at zero cost to government or to future generations, instead of selling interest-bearing government bonds.

Giving away free money may sound too good to be true or wildly irresponsible, but it is exactly what the Fed and the BoE have been doing for bond traders and bankers since 2009. Directing QE to the general public would not only be much fairer but also more effective.

Suppose the new money created since 2009, instead of propping up bond prices, had simply been added to the bank accounts of all U.S. and British households. In the U.S., $2 trillion of QE could have financed a cash windfall of $6,500 for every man, woman and child, or $26,000 for a family of four. Britain’s QE of £375 billion is worth £6,000 per head or £24,000 per family. Even if only half the new money created were distributed in this way, these sums would be easily large enough to transform economic conditions, whether the people receiving these windfalls decided to spend them on extra consumption or save them and reduce debts.
http://blogs.reuters.com/anatole-kaletsky/2012/08/01/how-about-quantitative-easing-for-the-people/

CSPAN Rep Paul Kanjorski Reviews the Bailout Situation
http://www.youtube.com/watch?v=pD8viQ_DhS4&feature=player_embedded

Soros and Lord Rothschild

In a harbinger of what may be coming our way in the Fall of 2012, billionaire financier George Soros has sold all of his equity positions in major financial stocks according to a 13-F report filed with the SEC for the quarter ending June 30, 2012.

Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.

What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiringsome 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.

http://preppercentral.com/?p=2509

Lord Rothschild takes £130m bet against the euro

Lord Rothschild has taken a near-£130m bet against the euro as fears continue to grow that the single currency will break up.

http://www.telegraph.co.uk/finance/financialcrisis/9484435/Lord-Rothschild-takes-130m-bet-against-the-euro.html

Bill Murphy- JP Morgan Is FINISHED!

Bill Murphy: There’s gonna be a Mega JP Morgan scandal which will rival the LIBOR scandal.

http://www.youtube.com/watch?v=RuwkztXa8qQ&feature=player_embedded#!

U.S. Economy, Gold and Currencies

James Rickards, senior managing director at Tangent Capital, talks about the U.S. economy, investment in gold and global currencies. Rickards speaks with Sara Eisen on Bloomberg Television's "Money Moves."
http://www.dailymotion.com/video/xnihkw_james-rickards-on-u-s-economy-gold-currencies_news?start=331