Busted: Bankers and The Global Economy

June 17, 2008

Boosting the Economy Best for the Dollar

Some folks get it and others don’t. We might have a keeper in Barack Obama. The Democratic presidential candidate said today that the best way to lift the sagging dollar is to improve economic fundamentals, rather than manipulating the currency.

He acknowledged that the devalued dollar is a symptom of underlying problems rather than a cause by itself. “I’m not somebody who thinks that we should spend a lot of time manipulating our monetary or fiscal policy simply to strengthen the dollar. What I want to do, though, is strengthen the economic fundamentals in such a way that the dollar, of its own accord, ends up being strong.”

That is the kind of “nuts and bolts” thinking needed. You have to look after yourself. The country could use more of that instead of focusing on the entire globe.

John McCain is proposing strengthening the dollar by reining in government spending and pushing free trade agreements to bolster investor confidence. This sounds like the same road that the United States is on now: a road to oblivion. Life is more than the idea of investor confidence without real economic promotion or change.

The economy is about the whole country, not a few investors.

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June 15, 2011

US economist predicts economic storm in 2013

devalued dollarA “perfect storm” of fiscal woes in the United States, a slowdown in China, the debt crisis in Europe and stagnation in Japan has a decent chance of damaging the global economy by 2013, Roubini told reporters late last week. Even so, he is being quite conservative about it. A 33% chance doesn’t seem like news to me. All this by New York University professor Nouriel Roubini, who correctly predicted the global economic crisis in 2008.

According to Mr. Roubini, the world economy expansion may slow in the second half of this year as “the deleveraging process continues, fiscal stimulus is withdrawn and confidence ebbs.”  To me, this seems obvious. This process is really part of what is already happening. It’s not news. The job market stinks in the U.S. and other modern nations. Money isn’t being made abundantly in the real economy. It’s all on Wall Street and in the investment world, based on heavy borrowing and debt restructuring of nations based on fiat money. Washington has been unwilling to deal with a one-trillion-plus budget deficit and a distinct bond market revolt is in the wings. Investors are waking up to the danger to their investment as US bonds are in danger of becoming junk. This will create higher interest rates and possible hyperinflation, which will remove any possibility of a recovery, even resulting the destruction of the dollar for an international medium of exchange. The bankers aren’t truly bothered by this. Based on inside information, the bankers already have a plan in the wings that I have touched on previously. It’s all about marketing, presentation to them.

Already, we have riots in Greece, as they face the music regarding the bad debt that the nation and bankers have created. They claim that officials need to restructure the debt of Greece, Ireland and Portugal. Waiting too long will ultimately result in the disintegration of the euro zone stability, experts say. Roubini agrees. The ridiculous aspect to the entire scenario is that all banking debt in the current system that is created will never be paid back. Further, much of this debt has been cleverly folded into Wall Street investments with the idea of making money, either through long or short selling. But this does not solve the problem of any debt unless the nations involved have the ability to make money by having control. They don’t. Only the bankers make money on any debt. In the meantime, these nations are paying on interest, not on principal. It’s stupid. The spiral never ends. Roubini and most economists remain silent on this aspect of the system.

Many other analysts, like myself,  have repeatedly warned of a “possible” repeat of the 2008 global economic meltdown in the immediate future. Others, like Moscow financial expert Alexander Osin expresses hope that the international community will be able to find the way out. Russian economist Konstantin Sonin  warns against overdramatizing the situation since people like Roubini are full of it, false prophets, in essence. The solution?

“The world economy faced such a problem in the 1930s,” Osin says, adding that Adolf Hitler’s ascent to power and the beginning of World War Two helped to resolve the problem. “At present, it should be solved by peaceful means, which the global community is almost certain to find.” Certainly, the Russians and Arabs are doing quite well since they are sitting on oil profits. That will only last as long as the current monetary gaming system does. That is the problem behind the whole matter. An eternal debt-based banking system destroys the nations that depend on it unless they are sitting on huge cash cow. Rest assured, that is temporary. If they are doing business with the bankers, the banking system will drain that wealth too. That is the nature of the system in place, as well as the nature of the future system.

So, to solve the problem we need a global war and preferably another Hitler. In the meantime, resolving the monetary system crisis is all about “hope,” and now we are listening to Russians for economic advice. The global economy really is in trouble. There won’t be any gain without plenty of pain. Never mind the pain that so many are in now.

E. Manning

May 2, 2011

China Considering Dumping US Investments

The U.S. dollar continues to slide in value as out of control spending continues. China, the largest holder of U.S. debt, is considering dumping two-thirds the dollar reserves that it holds, to the tune of about $3.04 trillion.

According to a report from China’s Xinhua news agency, a member of the Chinese central bank’s monetary policy committee is recommending that Beijing reinvest its foreign exchange reserves. Other Chinese financial authorities confided at a forum in Beijing that China’s current U.S. holdings are too high. The governor of China’s central bank has said that China’s foreign exchange reserves are excessive and that Beijing should begin to diversity its vast pool of dollars.

While American corporations have led the world in economic growth for more than a century, China’s government has had enough business sense to become the world’s second largest economic power. China is on target to overtake the U.S. economy.

Central bankers and many investors want to unplug the dollar as the international mainstay of finance. China wants its currency to play a more dominant role in the global economy, dumping the dollar (treasuries) as a viable investment, since the Federal Reserve is addicted to printing money, which further devalues the dollar to keep the current global money scene afloat.

March 30, 2011

U.S. Geithner Shocks Global Markets by Supporting International Currency

Filed under: business, central bank, corporatism, economy, federal reserve, inflation, politics — digitaleconomy @ 6:49 am

devalued dollarThe plight of the dollar and recent national inflation is making the United States quite shaky for a long-term economic recovery. The powers that be haven’t helped matters. Recently, economic adviser Timothy Geithner has been suggesting that a global currency sponsored by the IMF is desirable. This earth shaking statement caused the dollar to plunge instantly against the euro, yen, and sterling as the comments flashed across trading screens. The fact that anyone of importance is considering dumbing down the dollar is causing great fear and not a little doubt. The mainstream media in the United States has tried to quiet the news by keeping it out of the news.

Barack Obama, in a prime-time press conference on March 25, had at first ignored a question about the subject and, when it was put to him responded tersely: “I don’t believe that there’s a need for a global currency.”

Mr Geithner later qualified his remarks, insisting that the dollar would remain the “world’s dominant reserve currency … for a long period of time” but the seeds of doubt have been sown.

The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours that there is no threat to the reserve status of the dollar.

“I don’t believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world”

April 16, 2009

Economic Lies that the System Promotes

snake-oilYeah. Yeah. You’ve heard it all and everybody is trying to sell you something. The snake oil salesmen are all around. Washington is no different. The lie continues to spread that investing your money in banks or the latest government bonds are safe and sound investing. Think again.

The problem is that we have a ‘dumbing down’ of the American economic system as foreign investors pile on to invest their otherwise worthless American greenbacks and you are the one that will suffer through devaluation and hyperinflation because you base your life on money and monetary acquisition that central bankers run. Your economic livelihood and future is at stake if you have piles of money or owe piles of money. That applies to most Americans. Your investment is an illusion, the same as the thin air that central bankers and banks have created.

The fact remains that there is little monetary defense or value in trying to tell the average American that they can somehow defend their monetary wealth when the central bankers continue to erode that wealth into nothing in a hopelessly compromised financial system. Central bankers are riding the dark horse as they plow the dollar into non-existence so that they can rebuild a new monetary system from the ashes they have created. Naturally, this is to their advantage. The sad thing is that Washington politicians are hopelessly compliant and cooperative in an effort to create a new system from the ashes of your financial lives and years of servitude to their system. We are the fools and most Americans will undoubtedly foolishly listen the advice of the financial sages. What is Washington D.C. up to? CONTROL.  What are central bankers up to? CONTROL. Never forget that what you are being told by mainstream politicians and financial media is designed to secure the system over your life or means of livelihood at your expense.

Gold? Unless you hold the nuggets of goodness in your meaty little hand, don’t buy the snake oil. Gold investment certificates aren’t worth a thunder mug full of waste. Remember the old proverb that possession is nine-tenths of the law. In this case, physical possession is your safest bet, but far from perfect. Your stuff is only as secure as you are. The little guy can easily be pulled from his stuff during a crisis.

I am linking to this electroblurb because it is the right thing to do overall. I do not advocate the sales of the product or the conclusion reached. I ask you to read the facts and forget about buying anything that involves a significant portion of your money, devalued or otherwise, because the money you earn represents your life.

October 6, 2008

Crisis Floods Global Markets

not all love bailouts

not all love bailouts

Governments and central banks around the world grasped at measures to contain the fast-spreading financial crisis today. Investor confidence reflected on global stocks. According to the media, investors have finally decided that a recession is inevitable.

The more powerful members of the EU have reacted in panic as market volatility continues. Similar events continue to unveil with bailouts in the works. Even Fortis has new ownership. In panic, central bankers are dumping billions of euros on the market, creating another global monetary inflation hazard. A few national banks throughout the EU have moved to guarantee depositor funds causing a rash of capital movement to guaranteed banks and undermining financial security for others. More European governments followed Germany’s lead offering guarantees to savers in a frantic effort to calm fears among investors over the worst financial crisis in 80 years. The big losers portend to be the shareholders of these institutions.

economic bondage

economic bondage

The British government has promised on Monday to protect citizens in the face of global financial turmoil. Investors are terrified that the government will require partial ownership in exchange for the bailout.

For more than a week, the U.S. Federal Reserve has been working to find new ownership and capital to cover to bankrupt Wachovia Bank, even issuing and quickly retracting their statements as deals have fallen through. Right now, the Fed is trying to coax Citigroup and Wells Fargo to break up the Wachovia’s assets. Even the Fed is learning to temper its enthusiasm as deals are worked out.

While none of this is especially good news on the surface, the really bad news remains the now unseen seeds planted by central bankers as they flood the market with euros or whatever monetary unit is seen as useful. This simply weakens an already weak economy and further dilutes the value of the currency, creating more inflationary pressure.

The really bad news behind all of this news is that the United States bailout success hinges so much on foreign investment from overseas. With a global crisis in the works, only the Muslim and Saudi countries are not yet reporting huge problems beyond apparent hyperinflation caused by the huge $700 billion yearly influx of greenbacks from America. They have so many devalued dollars that spending them is a challenge. Therein lies the crux of the problem. A vicious circle of events is creating a downward global spiral that cannot be readily or quickly overcome without a reinvention or substantial revision of a new monetary system, an idea that is reportedly in discussion by the International Society of Bankers (the global central banking franchises) as an easier way out of the looming crisis if events become unmanageable. ~ E. Manning

September 25, 2008

U.S. Political Infighting Threatens Bailout

rushing to "secret meeting"

rushing to secret meeting

Tempers are aflair in Washington on the eve of what authorities hoped would be the salvation of Wall Street and the U.S. economy. What Democrats declared as a breakthrough Wednesday evening seems a bust. The nation was led to believe that agreement had been reached and the Federal Reserve and the U.S. Treasury could begin the work of applying the agreement. Negotiations toward a massive bailout for Wall Street has just fallen into disarray on after Democrats said they learned in a White House meeting that presidential candidate Senator John McCain is backing a new plan differing markedly from one that has been under discussion. So much for bipartisan political agreement and cooperation that McCain advertised in the U.S. bailout.

Now, the feeling is that a new plan could be another week in the making as Republicans retired to an unknown location to plow through their ideas for the bailout. The Republican plan may involve a mortgage insurance plan as an alternative to the Bush plan, which has encountered criticism on Capitol Hill. Republicans also argued that the Treasury Department should charge premiums to holders of securities to finance the insurance.

Until Thursday’s White House meeting, Republicans had not brought up an alternative plan for the Wall Street bailout, including during previous meetings and Senate hearings. Is this political grandstanding or a far better concept? What does this mean, if anything, for the nation? If a negative catastophic reaction occurs will U.S. citizens hold Republicans responsible for the result? This portends to be a big stakes gamble for McCain which could catapult him to great heights or destroy his chances at winning the presidency. Only time will tell whether what Republicans are doing is a boon or a bust as some U.S. politicians seem to have forgotten that global confidence is more important to sustain the ailing U.S. economy than the opinions of the U.S. taxpayer. This reality isn’t opinion, but fact.

Meanwhile, the global central bankers of the G8 continue to dump dollars to encourage global dollar liquidity, thus increasing the pitch of inflation and further devaluing the dollar between the dollar and other currencies as the U.S. becomes indebted to foreign central bankers through the Federal Reserve. The dollar has less buying power and increased pressure toward inflated pricing across the board. The dollar is overheating, which will easily evolve into hyperinflation along with pressures that would force the Fed to admit the truth of that inflation. Even though central bankers are essentially holding a gun to the head of the U.S. national economy, they can’t seem to stop themselves in the name of dollar liquidity. In the end, foreign central bankers don’t want to be stuck with devalued dollars anyway. The International Society of Bankers are looking at global monetary policy and their own corporate profits.

Global reaction to a bailout is not very positive overall as the U.S. economy remains on life support. The German Finance Minister reacted, “The United States will lose its superpower status in the world financial system.” How the world reacts as the morning and day wears on in Europe and Asia remains to be seen. Ultimately, outside global and sovereign financing is what the U.S. economy is dependent on. How the world reacts is of great importance.

~ E. Manning

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