By Michael Snyder
The entire financial system of the western world is designed to be a debt spiral. The total amount of money and and the total amount of debt are supposed to continually expand. Today, we are in debt up to our eyeballs and it seems like nearly everyone is talking about “deleveraging” and reducing government debt. But in a world where the entire financial system is based on debt, is there any way for massive deleveraging to take place without plunging us all into a horrific worldwide depression? The governments of the western world have had a lot of fun spending money as if there was no tomorrow, but now tomorrow has arrived and all of that debt is rapidly catching up with us. Politicians in Europe and in the United States are running around trying to come up with a “plan”, but there is no “plan” that is going to fix the current debt-based system. Over the next few years we are going to reap what we have sown.
For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars. That was the third year in a row that our budget deficit has topped a trillion dollars.
Sadly, most Americans simply have no idea how much money a trillion dollars is.
Perhaps an illustration or two would help.
If on the day when Jesus was born you began spending one million dollars every single day, you still would not have spent one trillion dollars by now. Continue Reading
By Lee Rogers
It is becoming increasingly clear that the people who are taking part in the much publicized Occupy Wall Street protests are mostly a bunch of useful idiots promoting communist and socialist ideologies. Even multi-millionaire propagandist Michael Moore and a myriad of rich Hollywood celebrities have come out supporting the cause of these protests indicating that the establishment has an interest in steering the direction and outcome of what is taking place. This is one of the most obvious cases of controlled opposition that we have ever seen where the protesters are actually endorsing the collectivist ideologies that benefit the wealthy elite. Communist and socialist ideolgies when put into practice have historically done nothing but centralize power and wealth in the hands of a few people as seen in the cases of the Soviet Union and China in the 20th century.
Most of these useful idiots protesters know absolutely nothing about how the global financial system works and know less than nothing about the central banking systems of the world. Central banks like the Federal Reserve System and the European Central Bank have been setup by design to implement a debt based monetary system that has been used to turn the vast majority of people into debt slaves. They create money out of nothing and then charge interest on top of the money they create out of nothing through loans. Even the United States government borrows money from this system and because of that they have to implement draconian tax schemes on the people just so they can pay back the interest on the debt. Continue Reading
The central banker agenda is to cause a Depression and use the turmoil to consolidate their one-world tyranny.
by Henry Makow Ph.D. ”
“Governments do not rule the world. Goldman Sachs rules the world,” independent trader Alessio Rastani told the BBC Monday morning.
He says GS and the big hedge funds know the “market is toast” and are moving their assets to “safe havens” like US Treasuries.
The clear implication is that the central bankers are precipitating a Depression, using sovereign debt (created by book entry and owed mostly to them) as an excuse to enact political change. They plan to use a Depression to consolidate their one-world tyranny.
Rastani’s message is that individuals can protect themselves in the same way as Goldman Sachs by shorting the market.
“In less than 12 mos. I predict the savings of millions will be wiped out, and that’s just the beginning…We forget that a lot of people made money as a result of the Great Depression.”
We could dismiss this warning as a trader trying to profit from his short positions. We could dismiss him as an opportunist drumming up business for his advisory services
But I tend to see his message as prescient and sobering.
By Saman Mohammadi
August 7, 2011
“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon
“The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity.
The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity.”- Abraham Lincoln
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.” - Thomas Jefferson Continue Reading
The collapse of the global stock markets was something that was supposed to happen if the debt ceiling wasn’t raised. But here we are, seeing a sudden correction even after the debt ceiling was raised. The Federal Reserve and U.S. Treasury are actively trying to crush the U.S. dollar so the debts of their banking allies will get cheaper as the years go by and the quality of life for most Americans continues to erode like a tide washing away a sand castle. Of course it will be expected that at some point some other archaic form of quantitative easing part three will be brought to the table but the Federal Reserve is a faith based system. Suddenly people are having less and less faith from a central bank that has sat idly by for the working and middle class while allowing the wealthiest in this country to become even wealthier simply by gaming the current financial system. The markets are not pleased with raising the debt ceiling without actually looking for new revenue streams. This is like getting a credit card line increase without your income rising. The Fed is targeting the dollar not because it is good for America, but for the specific reason that it will allow banking allies to hide the ill bets of the 2000s.
(NaturalNews) Most people, even smart people, know surprisingly little about the way money really works in Big Government. With the debt ceiling fiasco suddenly raising awareness of the possibility of a total global financial blowout, now seems like a good time to remind people ofseven disturbing factsabout money that are almost never acknowledge in the old media.
Fact #1 – There is no FDIC insurance fund.
The money at your bank is insured against loss by the FDIC’s insurance fund, right? Nope. That’s total fiction.There is no actualmoneyin the fund. The FDICinsurancemoney has already been looted by the U.S. Treasury which has simply replaced the money with a bunch of IOUs.
Why does this matter? Because it means that if the U.S.governmentgoes into default, so will theFDIC! And that means all your bank funds havezero insurance. That’s gonna be a big shock for tens of millions ofpeoplewhen they finally figure this out one day…
Fact #2 – There are no socialsecurityfunds, either.
When you pay social securitytaxes, all that money goes into atrust fundthat’s held for safekeeping until the day it pays you back, right?
Ha! That’s the “sucker’s view” of social security that only ignorant people believe. In reality,there is no money in the social security trust fundbecause it too has all been looted by the U.S. Treasury and spent. In truth, social security is already broke. Can’t wait for people to wake up and figure this one out, either… Continue Reading
By Greg Hunter’s USAWatchdog.com
The Federal Reserve has been a clandestine organization since its inception. It is not really part of the federal government; it is merely a subcontractor for monetary policy. The Fed is basically a cartel of both U.S. and European banks. It has pulled the levers in the economy from behind a curtain of secrecy since 1913 and has always enjoyed a certain degree of respect and admiration. All that changed when the economy melted down in 2008. The respect and admiration of the Federal Reserve is being shredded right along with its veil of secrecy. The Fed allowed everyone to think the cost of controlling the 2008 financial crash was just a measly $3.3 trillion. This giant lie was exposed after Senator Bernie Sanders of Vermont put a provision in last year’s financial reform bill that forced the Fed to come clean on $9 trillion in additional emergency loans and bailout money. The Fed funneled cash to foreign banks and companies right along with American banks and companies. It basically rewarded reckless and illegal behavior of greedy Wall Street bankers that caused the mess we are in now.
Nothing is fixed and nothing has really changed. The economy is still a wreck, and the Fed still wants its secrets. CNBC reported last week that the Fed refuses to tell how much cash it sent to Iraq just after the invasion because it came from the “oil for food” program. The Fed claims it has to obey “rules.” The report said, “The Fed’s lack of disclosure is making it difficult for the inspector general to follow the paper trail of billions of dollars that went missing in the chaotic rush to finance the Iraq occupation, and to determine how much of that money was stolen.” (Click here for the complete CNBC story.) Taxpayers would be on the hook for the missing cash that the Defense Department says is $6.6 billion. This could represent the largest theft in history. The Fed didn’t obey any “rules” when it hid $9 trillion in bailout money. Doesn’t the Fed work for the U.S.? Apparently not. Continue Reading
By Brandon Smith
It’s amazing. In the wake of the 2008 derivatives and housing bubble collapse, created by the U.S. Treasury and the private Federal Reserve with engineered low interest rates and easy money designed to artificially pump up the economy after the effects of the dot-com bust, the faltering markets of 2000-2001, and the rapidly depreciating dollar, we have now seen these same entities pour Trillions, yes, TRILLIONS in fiat injections into every conceivable corner of the markets. They have spent incredible sums on toxic equities (worthless equities, and don’t let anyone tell you different) to “ease” the debt spiral, they have propped up almost every large international bank, they have propped up the Federal Government and the Dollar itself with sizable purchases of our own Treasury debt, and, they have even thrown money into the pockets of foreign institutions and corporate beggars. Keep in mind, that all the debt that these actions generate is eventually placed squarely in the lap of one group of people; the American Taxpayer!
They have manipulated unemployment figures. They have consistently released completely fraudulent CPI (inflation) figures based on calculations which neglect numerous factors that used to be counted only two decades ago. They have used coordinated naked short selling in precious metals markets to hold back the natural spikes in gold and silver values. They have blamed every negative development in the economy (that they could not hide) on extraneous circumstances and outside culprits rather than themselves. They have done all this, to conjure the illusion of recovery for an increasingly agitated general public.
So much tap dancing and snake oil selling, and all it took, was the pain of $4 a gallon gas to wipe everything away… Continue Reading
Robert Bonomo, Contributing Writer
Donald Trump stirred the pot regarding the Obama “birther” issue and the President reacted quickly, releasing the long sought after “long form” and effectively killing the issue. Trump opted for prime time over campaigning to be the POTUS; nonetheless, his stunt created a precedent for candidates to call out the president on issues and pressure him to respond.
Unfortunately, the “birther” issue was only relevant for those wishing to occupy the White House. As for the American people and the Republic in general, it would not have resolved any major issue. The best case scenario for the “birthers” would have meant Joe Biden taking over from an impeached Obama, which would have changed almost nothing except the quality of late night comedy. Continue Reading